Workforce: What’s next?

SD evaluates current situation and how to improve

BY KRIS BEVILL

Number of Attendees

It’s a problem facing nearly ever y employer in ever y industr y throughout the northern Plains not enough workers with the right skills to fill available jobs. Recruitment campaigns have been launched, businesses are offering incentives for new workers, and colleges and universities are introducing new programs and courses aimed at training workers to fill open positions, but resolving the region’s workforce shortage will clearly require an even greater collaboration, an all-of-the-above strategy on behalf of all sectors This was the message made loud and clear during workforce summits held throughout South Dakota earlier this year by Gov.

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Top 3 Workforce Challenges Top 3 Successful Initiatives

Housing; finding skilled workers; retaining workers/aging workforce

Housing construc tion/ loans; scholarship and tuition reimbursement; internships

Top 3 Strategies for Business to Pursue

Increase transparenc y regarding work oppor tunities; add internships, scholarships, apprenticeships; expand career awareness par tnerships

Misperceptions regarding job details, par ticularly skilled trades; lack of skilled workers; young labor pool unaware of oppor tunities

Finding skilled workers; lack of student awareness/interest; housing

Finding skilled workers; insufficient wages/ benefits; lack of education, training oppor tunities

Limited awareness of oppor tunities among potential workforce; insufficient wages/benefits; engaging workers lacking GED

Finding skilled workers; disconnec t between industr y needs, education; insufficient wages/benefits

Tuition reimbursement, scholarships; expand career prep ser vices; student/youth engagement

Internships; flexible work arrangements; par ticipation in youth education, mentoring n/a

Increase flexibility to meet workforce needs; expand tuition reimbursement, internship programs; increase professional development oppor tunities

Forecast, communicate workforce needs; increase internships, tuition reimbursement programs; increase professional development oppor tunities

Add internships, scholarships, apprenticeships; increase involvement in community integration, skills development; increase awareness of career development resources

Par tnership with veterans; employee referral program; internships

Expand career awareness par tnerships; increase internships, scholarships, apprenticeships; increase involvement in community integration, career development

Par tnerships with educational institutions; scholarships, tuition reimbursement; internships

Improve business culture, work environment; increase internships, scholarships, apprenticeships; expand training oppor tunities

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Dennis Daugaard and the South Dakota Workforce Initiatives Cabinet summarized in a final report released by his office on Sept 2

“Over 1,000 people provided input for this report,” Daugaard said in a statement. “We heard from educators, community leaders, businesses and elected officials from all across the state We’ve been actively engaged in workforce efforts over the past few years. By exploring the new tools and strategies laid out in the report, we can improve those efforts at the state and local levels ”

Current Challenges

The governor ’ s regional workforce summit campaign began in April with an event in Mitchell, followed throughout the spring and early summer with summits in Watertown, Brookings, Rapid City, Aberdeen and Sioux Falls Each summit included data on growth and change in the state’s labor market, panel discussions and breakout groups to discuss workforce challenges, initiatives and case-specific solutions that have been applied to resolve those challenges, as well as sector-specific strategies that can be pursued to further address challenges (See accompanying table for specific takeaways from each event )

Some of the most commonly cited challenges regarding South Dakota’s workforce included: misperceptions of young people and their parents regarding technical and other careers; unrealistic career expectations and a lack of early real-world work experience; misperceptions of potential new employees regarding work opportunities and community amenities; a lack of available and affordable housing; a lack of specialized services to support minority cultures and competition from other employers Summit attendees also pinpointed a need for educational institutions to continually update their education and training offerings to meet the current needs of the business community

Successful Examples

Participants also highlighted examples of successful approaches being taken to overcome those challenges, including business-education partnerships, industry participation in high school career days and STEM (science, technology, engineering and math) competitions, industry participation on curriculum advisory boards and cash incentive programs for employee referrals

Butler Machinery Co ’ s Caterpillar service technology program, ThinkBIG, was highlighted in the final report as an example of a successful industr y-sponsored Career Technical Education course Through the program, the company sponsors students at Lake Area Technical Institute in Watertown and offers them paid internships to complete their training.

In Aberdeen, Molded Fiber Glass Cos and Northern State University have partnered to provide employees with English language classes and GED (general educational development) classes. Since launching the program, the company has noted improved communication across its workforce, increased utilization of its labor supply, increased employee retention and reduced costs and quality risks.

Cross-section collaboration, as is being utilized by companies like Butler Machiner y and Molded Fiber Glass, was cited frequently at workforce summits as a strategy worth pursuing. Through collaborative efforts, it can be expected that internships would be created, career awareness campaigns could be launched, industr y-dr iven cer tifications and cur r iculums could be developed, incentives could be developed to keep workers in the state and outreach could be enhanced for currently disengaged populations

Path Forward

The report also pinpointed specific strategy items for each sector, including business, education, government and other community members The report recommended that businesses increase workplace flexibility to meet the needs of a changing workforce, expand the number of apprenticeships and develop creative solutions to provide transportation for workers Further, the report also includes a checklist for each sector to use to evaluate their current standing and provide insight into the development of an action plan to further address their challenges.

In a column written after the final report was released, Daugaard said the state’s workforce needs must be addressed if it is to remain “ open for business.” He announced the state will commit $1 million to be used as matching funds for community workforce development plans, but reiterated that overcoming the workforce shortage will require a collaborative effort among all sectors. “It’s going to take continued dedication from people of all sectors over a long period of time,” he wrote “As we continue to work together to address our workforce challenges, let’s remember that this is a marathon, not a sprint.” PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag com