National Skills Certification Project

1
National Skills Certification Project

• Regional Employer Roundtable

2
Human Capital Manufacturing and Logistics
Biggest Challenge

• While low-skill (-25) and mid-skill (-18) jobs
  declined over last 20 years Employment in
  high-skill manufacturing occupations has risen
  37, an increase of roughly 1.2 million jobs.
  High skill jobs were the only source of job
  growth in the U.S. manufacturing sector during
  this period. - Federal Reserve Bank of New York

3
80 of manufacturers list finding qualified
workers as their top concern NAM employer
survey

• Manufacturing had the largest gap between job
  openings and new hires in 2009-2010 showing the
  challenge of finding skilled applicants.
• (Wall Street Journal, US Dept of Labor)

4
Even more than the rest of the nation, Indiana
falls short in supplying qualified workers
The 2010 Manufacturing and Logistics Report Card
compares the state of Indianas AML industries
with those of surrounding states Human Capital
is our lowest grade Productivity follows Human
Capital.
5

• Recently, the Indiana Chamber surveyed 218
  Hoosier employers for its Ready Indiana
  initiative
• A strong plurality of respondents (37) in AML
• Key findings were consistent with the Conexus
  survey response
• Majority (86) ranked employee skill weaknesses
  as somewhat/a definite/severe problem for their
  organizations 75 increase over 2009
• Applied skills, i.e. communication, problem
  solving most lacking in employees
• Nearly half say most current employees would
  benefit from additional training
• Training is seen as an in-house issue, with
  limited awareness of/preference for industry
  certifications/credentials

6
Conexus Employer Survey

• Conducted February/March 2011
• Conducted by Conexus and Regional WorkOne
  partners in Southwest, Southeast, Northeast, and
  Central Indiana
• Selective survey approach

7
Who Responded?
134 Indiana employers from the following industry
categories
8
Size by Revenue and Headcount
Annual Revenues
Number of Employees
9
Employers still hiring unskilled workers and
shouldering the in-house training burden

• What is your minimum educational requirement for
  entry-level employment?

Less than 10 of respondents require more than a
high school diploma.
10
High school completion and company-specific
assessments valued far above industry credentials
Which of the following indicators of work
readiness for entry-level employment does your
company consider valuable and accurate?
Work experience 22
High school diploma 21
GED 17
Company-specific assessment 10
Associates degree 9
Bachelors degree 9
Industry-recognized certification/credential 7
WorkKeys 5
No indicator of work readiness is required 1
Certifications not routinely utilized by
respondents as a hiring indicator.
11
So its not surprising that employee readiness is
considered a problem
Somewhat/Definitely a Problem 68
as an outdated approach creates issues.
12
Employers agree that a majority of their
employees need more training
What percentage of your employees would benefit
from targeted training for their job?
53 say half or most of their employees need
additional training
13
Skill Needs are Across the Board
But employers show less confidence in industry
certifications
Job-specific skills (via on-the-job training) 25
Applied work skills (communication, problem-solving, leadership...) 23
Basic skills (math, reading, writing, language) 20
IT skills (computer basics, advanced applications, telecommunications) 14
Job-specific skills requiring verification/testing - certification 12
Other 6
14
Some Usage of Industry Certifications
Of the 56 of respondents who prefer some
certification for certain jobs within their
organizations, the AWS, MSSC, APICS and SME are
most familiar.
Other 27
American Welding Society 22
Manufacturing Skills Standards Council 16
Association for Operations Management (APICS) 15
Society of Manufacturing Engineers 14
National Institute of Metalworking Skills 4
National Career Readiness Certificate 1
15
The most commonly-used certifications are thought
to add significant value
Certified Worker Performance
16
But there are basic challenges to their adoption

• If you have NOT used any of the certifications
  mentioned, why not (check all that apply)?
• I dont know enough about these certifications
  36
• These certifications dont reflect the skills I
  need 33
• Not enough applicants have these certifications
  22
• Awareness, availability and relevance all must be
  addressed

17
A majority would value a more consistent,
national system of industry certifications
How important would it be to you that
certifications were part of a consistent national
system with industry-recognized standards?
18
Other Skills Seen as Important
Please rank the importance to your company of
other skills/topics that could be covered as part
of a national skills certification system
Inventory/Production Control Regulatory
Compliance Safety/Environmental Six
Sigma Lean Manufacturing Total Quality
Management
19
Indiana AML Companies are optimistic about the
future
In the next 12-24 months, do you believe the
workforce in your organization will Expand 57
20
Summary of Findings

• Employee readiness is a major issue
• Companies still not engaged in industry-wide
  solutions in-house training still emphasized
• Existing training programs/certifications not
  recognized as leading indicators for hiring
• Lack of awareness
• Attitude that certifications do not reflect the
  skills I need
• However, industry beginning to see the need for a
  new approach as skill demands and training
  costs rise, need a competitive solution
• A national system of relevant, consistent
  credentials would be well-received
• Certifications must be crafted with ongoing
  industry feedback and promoted to employers

21
QA
22
Breakout Discussions

1. What are the best ways to engage employers in the
   credentialing process, increasing meaningful
   input?
2. Can Human Resources procedures be reshaped to
   emphasize and create a preference for
   industry-approved credentials? How can this best
   be accomplished?
3. Has the time come for regional training centers?
   Should specialized high school courses be
   designed for technical/vocational training?