Innovations
Innovations with HR Guru Tim Doherty
Questions
Position: Tim Doherty is owner, founder and chairman of Doherty Employment Group, headquartered in Minneapolis, Minnesota. A graduate of the University of Minnesota, Tim started Doherty Staffing Solutions in 1980 and then founded the HRO (Human Resource Outsourcing) division, Doherty Employer Services, in 1993. At that time, Doherty Employer Services was Minnesota’s first and only HRO.
What’s behind the deepening skills gap in Minnesota?
Right now there are three jobs for every available machinist. Unemployment is still high, but employers can’t find people. What’s going on? The skills gap has multiple causes. Changes in high school funding mean that students are concentrating on core subjects and taking fewer shop classes. And after graduation, they’re steered toward traditional four-year degrees rather than the trades. Hiring practices have changed dramatically. According to CareerBuilder, nearly 30% of employers hire college graduates for jobs that were previously held by high school graduates. Background checks and credit screening rule out candidates who may have been accepted in previous generations. Immigration enforcement is up and drug testing is nearly universal. While all of these safeguards help employers mitigate risk, they also narrow the talent pool.
How has employment changed since 1980?
Modern job seekers are changing more rapidly than the companies that hire them. Few employees expect to stay with one job for life now. In fact, 70% of fulltime employed workers regularly look into new job opportunities. In addition to job fluidity, workers expect a greater range of options in their work life—flexibility when they need it and advancement when they feel they’ve earned it. Millennial workers often lack a real understanding of manufacturing’s career potential. Wage stagnation is a concern. On ABC this week, I read that U.S. corporate profits are just below a 60-year high, while wages are near record lows. Every week we help clients review their wages and adjust upwards to boost recruitment. Other big issues in Minnesota are the Affordable Care Act, EEOC regulation changes, and Ban the Box legislation. Each presents a unique challenge to Doherty’s business and to our clients. My wife and our CEO, Val
Doherty, has successfully led our legal team through many bureaucratic tangles, so our strategies for addressing these are well underway.
How can manufacturers find and retain skilled workers?
I feel strongly that the only solution to a skills gap is to help job seekers cross it. In Northern and Southern Minnesota, we work collaboratively with area chambers, manufacturers, and schools to attract students to the manufacturing trades. We’re proud to help fund scholarships at MNWest and Riverland Community Colleges, but it must be part of a wider business response. I was surprised to read that nearly half of U.S. companies spend less than $68 a day on training. Developing a new generation of skilled workers is a great goal, but companies must eventually make room in their budgets for training programs. To achieve the best retention outcomes, we encourage our clients to hire the right person for their organization and then train to the job.
How do you keep a talent pipeline flowing?
Doherty focuses on reaching job seekers where they are, not where they used to be. Our calendar is filled with faceto-face and social networking events, including working with MNSCU schools and colleges to build connections with students and new grads. Our new responsive-design website now welcomes visitors on any kind of phone, tablet or desktop computer. And, in addition to traditional print advertising, we also recruit via text, email, Facebook, Twitter, and LinkedIn. Only 42% of companies maintain their own talent pipeline. Doherty takes over this role for our staffing clients, and it’s part of our full HR service for clients in our HRO division. A strong pipeline is a major undertaking requiring commitment to ongoing dialogue with job seekers at every stage of their career. After 30 years, it’s something we do well and take great pride in. ENTERPRISE MINNESOTA NOVEMBER 2013 13