Corporate Voices for Working Families

Job creation continues to be one of the most urgent and pressing issues for working families and businesses, especially as unemployment rates remain over 9 percent and as our fiscal outlook seems uncertain.

But there is a glimmer of hope.

Recently, the Economics and Statistics Administration of the U.S. Department of Commerce released a report showing that science, technology, engineering and math (STEM) jobs grew at a faster rate than non-STEM jobs over the last decade. Importantly, growth in STEM jobs is also projected to grow at a faster rate (17 percent) than growth in non-STEM jobs (9.8 percent) between 2008 and 2018. The report, “STEM: Good Jobs Now and for the Future,” also finds that STEM workers earn about 25 percent more and are less likely to experience joblessness than their non-STEM counterparts.

This rosy outlook in STEM employment, however, calls into question our ability as a nation to meet that future job growth with qualified workers. These optimistic projections are occurring at a time when employers report difficulty being able to find appropriately-skilled workers, highlighting a skills gap in our labor force.  They are occurring at a time when tuition burdens have increased dramatically for middle-class families, and at a time when median incomes have stagnated. And, they are occurring at a time when 75 percent of Americans think that college is too expensive for most to afford, according to a survey conducted by the Pew Research Center this spring.

Given these challenges, how can the business community play a key role in helping to strengthen our nation’s workforce so that workers can be eligible for the jobs of the future, and help drive innovation and economic competitiveness?

Peggy Walton, Senior Director of Workforce Readiness at Corporate Voices discussed this issue at a workforce session during the Pacific NorthWest Economic Region’s 21st Annual Summit on Wednesday, July 20, 2011. This session focused on the link between higher education and labor markets. Walton gave an overview of Corporate Voices for Working Families’ Learn and Earn initiative, describing how best-practice industry partnerships with higher education institutions help workers–especially those who need to work– complete their postsecondary education credentials. Walton said,

“Greater employer support for postsecondary education completion and relevant training will enhance the talent and skills of the workforce, which will, in turn, fuel innovation and growth.”

Jennifer McNelly, Senior Vice President of the Manufacturing Institute, also participated in the workforce session. McNelly is the chief architect of the NAM-Endorsed Advanced Manufacturing Skills Certification System. This system is a set of nationally portable , industry-recognized manufacturing skills certifications. Maureen Fallt, who leads workforce planning efforts for Portland General Electric (PGE), also presented information on the programming of the Center for Energy Workforce Development as part of the session. Presenters gave an overview of postsecondary completion work being accomplished with the support of the Bill and Melinda Gates Foundation.

Over 600 leaders from business and government convened at the summit to address major policy issues impacting the region, including renewable energy, tourism, trade and economic development and workforce issues. While one of the major themes of the conference focused on international trade and economic development, summit-goers expressed concern with labor mobility challenges between the U.S. and Canada, and recognized that a critical basis for economic development and innovation is a skilled and talented workforce.

Employer-supported Learn and Earn programs, like the ones cultivated by the Western Association of Food Chains (WAFC) and Pacific Gas & Electric (PG&E), provide flexible programs that result in credentials with labor market value, and help position workers on meaningful educational and career pathways. In this way, these programs can and do contribute to healthy and functioning labor markets.

By identifying and showcasing these Learn and Earn best practices, Corporate Voices encourages employers and community colleges to collaborate on a wider scale to provide working learners with training and postsecondary education, resulting in enhanced options for career mobility.

With the growth of these innovative industry-led partnerships, the rapid growth of STEM jobs will perhaps present a more realistic goal for many workers in the future.

Amidst stubbornly high levels of unemployment and sluggish levels of economic growth, how can the business community use workplace flexibility to maintain a competitive advantage? Best-practice businesses have long known the business case for workplace flexibility and have adopted flexibility practices to build more effective, modern workplaces. What are the new trends in flexibility, and how are businesses using it as a key way to facilitate other best-practice employee support and talent development programs? How can global organizations use flexibility in reporting frameworks to measure corporate progress on social issues?

Please join Corporate Voices for Working Families on Wednesday, August 3, 2011, for a webinar where researchers, practitioners and business leaders will discuss these issues. Amy Richman of WFD Consulting will discuss findings from a recently updated Corporate Voices report, “Business Impacts of Flexibility: An Imperative for Expansion.” Richman will shed new light on how flexibility has taken on an ever-growing role as a strategic business imperative for domestic and global enterprises, and how it is being used across different industries. Kathie Lingle of WorldatWork’s Alliance for Work-Life Progress will present findings from a new global study on men and work-life integration. A representative of CVS Caremark will illustrate how the company is using workplace flexibility as a key component in its “Pathways to Pharmacy” talent development program, and Richard Crespin of Corporate Responsibility Officers Association will present innovative ways organizations can use flexibility in corporate reporting initiatives.

Featuring:
Amy Richman
Senior Consultant, WFD Consulting

Kathie Lingle
Executive Director, Alliance for Work-Life Progress, WorldatWork

Ernest E. Dupont (invited)
Director of Workforce Development Programs, Workforce Initiatives, CVS Caremark

Richard Crespin
Executive Director, Corporate Responsibility Officer Association

Moderator:
Tiffany Westover-Kernan
Vice President, Business Development and Government Relations,
Corporate Voices for Working Families

Space is extremely limited! Register online today!

The McKinsey Global Institute (MGI), a business and economics research association, recently published a study on job creation that outlines what can be expected in terms of employment in the coming decade, as well as what both the public and private sectors can do to spur job creation.  Some of their findings are truly staggering:

• The United States has seen a decline of 7 million jobs since 2007
• The projected length of a “jobless recovery” is 60 months
• 1 in 10 Americans move annually, compared with 1 in 5 in 1985
• 20 percent of America’s adult male population is not working
• There will be an estimated shortage of 1.5 million college graduate in the workforce in 2020
• 40 percent of companies planning to hire have had openings for 6 months
• The rate of new business creation has dropped by 23 percent since 2007
• 21 million new jobs are needed by 2020 to return the United States to full employment

 MGI reports that low job growth could result in as few as 9.3 million new jobs by 2020.  However, with the right business strategies and government support, it is possible to create 22.5 million jobs by the 2020 benchmark, returning unemployment to 5 percent.

The six sectors with the greatest potential for job growth are health care, business services, leisure and hospitality, construction, manufacturing and retail.  Despite even the most optimistic projections of job growth in these fields, it’s important to acknowledge the shortage of Americans trained to work as nutritionists, welders and nurse’s aides, and the predicted shortfall of computer specialists and engineers.

In explaining the statistics, MGI notes that:

“[t]here is no national system for conveying the needs of employers for applicants with specific credentials… to employment services or directly to young workers entering the labor market from community colleges and technical schools,” and that most jobs lack “nationally recognized training or skill standards.”

Additionally, today’s workers are often unable to work full time, as many need to care for young children, older children who need financial support, and aging parents. The aging population, along with increased home ownership and dual-career families, also means that many individuals are unable or unwilling to move for a new job.

But there is a solution.

Discussing this study at The Atlantic’s New Work Era Summit on July 19, Byron Auguste, Director, Social Sector Office at McKinsey & Co. said,

“I’m actually pretty optimistic about our ability to create these jobs.”

MGI cites three promising trends infiltrating the workforce: disaggregation, virtualization and flexible supply.  Disaggregation, the breaking down of a complex job into simple tasks, combined with advances in communication technology and a recent tendency for employers to favor hiring workers on a part-time or short-term basis, can result in a greater hiring capacity and a more resilient workforce.

MGI suggests that business leaders increase their involvement in influencing policies that link education with employment needs.  Some of our corporate partners, such as KPMG, Verizon and Bison Gear and Engineering Corp, have already taken initiative by engaging in Learn and Earn partnerships with postsecondary education institutions to develop curricula that directly relate to the specific skills their fields of work require.

In short, the study suggests there are three major strategies businesses can utilize to combat the challenges posed by the low supply of highly-trained workers, and the changing demographics of the workforce:

• Increase the number of remote jobs to accommodate workers who are aging, homeowners, or who come from dual-career families and are therefore less likely to move for a job
• Increase the number of temporary and part time jobs to accommodate workers with growing familial responsibilities
• Provide specialized training to both new and incumbent workers to ensure that today’s demand for highly skilled workers can be met.

Corporate Voices’ partner companies are already leading the way in implementing some of the strategies outlined by MGI. Through progressive workplace flexibility programs and practices, our partner companies recognize the positive business impacts of flexibility, and how it can modernize workplaces to help working families balance the dual demands of work and life. Through Corporate Voices’ national workplace flexibility campaign, best-practice companies have committed their support for flexibility as a smart business practice, and are encouraging their peers to expand flexibility within the business community.

Through innovative Learn and Earn programs, our corporate partners are creating meaningful partnerships with higher education institutions to provide educational and work-life supports so people can complete their postsecondary education. This is especially important at a time when a majority of the jobs of the future will require at least some postsecondary education. Gaining credentials with labor market value will not only make workers more competitive in the labor market, it will give them meaningful career opportunities and a path toward upward social mobility.

The results that these initiatives have generated provide hope for even the most optimistic employment scenario between now and 2020.

Hannah Furgang is an intern with Corporate Voices for Working Families