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 – 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 Indiana’s AML industries with those of surrounding states:
Human Capital is our lowest grade; Productivity follows Human Capital.
See if we can add Indiana’s national rankings (ex. Indiana is #1 for manufacturing)

5. A strong plurality of respondents (37%) in AML
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. Less than 10% of respondents require more than a high school diploma.
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
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. Somewhat/Definitely a Problem: 68%
So it’s 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. Certified Worker Performance:
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 don’t know enough about these certifications – 36%
These certifications don’t 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 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. Q&A

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