New Study Shows Companies ill-equipped to Train; New Hires Unable to Perform

02. Dec, 2009 0 Comments

It is critical in this overly crowded and difficult job market to possess the correct skills needed to perform effectively in any new job situation. Proper training is essential to being successful in any field. Although it seems like it should be a simple concept, in the past it is one that has not been correctly managed or enforced. In recent times, the Obama administration has been shining a light on the darkened workforce by putting a renewed emphasis on the specific training and skill sets that American workers will need for the jobs of tomorrow. Although they have begun to recognize the problem, and are making steps to correct it, a new report shows that U.S. employers are continuing to struggle with over proportioned numbers of unprepared staff. Employers are progressively finding that new hires lack the critical basic and applied skills needed to be successful in their specific fields. Additionally, the study also found that in most cases, employer-sponsored workforce preparedness training is not effectively correcting these deficiencies. The report, entitled “The Ill-Prepared U.S. Workforce: Exploring the Challenges of Employer-Provided Workforce Readiness Training” was produced by Corporate Voices for Working Families, the American Society for Training and Development (ASTD), The Conference Board, and the Society for Human Resource Management (SHRM) in 2009.

“The results of this study demonstrate how critical it is for companies to be more strategic and focused on efforts such as providing internships and working in partnership with community colleges on workforce readiness initiatives to prepare new entrants before they enter the workplace,” says Donna Klein, the Executive Chair of Corporate Voices for Working Families, one of the partnered groups responsible for compiling the information. “It is a losing strategy for employers to try to fill the workforce readiness gap on the job. They need to be involved much sooner to prepare new employees to succeed,” Klein said.

The report draws from a survey of 217 employers and managers regarding the training procedures given to newly hired graduates of high school and two and four-year colleges. The survey, conducted mainly during 2008, included employers in manufacturing; financial services; non-financial services; and education, government, and other non-profit organizations. Almost half of the respondents reported that it is critical to provide readiness training for new hires. Unfortunately, even with the knowledge of the need for effective training, the majority of the organizations rated their programs as only “moderately” or “somewhat successful.”

“U.S. business is increasingly outspoken about the competitiveness threat posed by an ill-prepared workforce – but employers must do a better job of quantifying this threat and communicating it to key stakeholders,” says Mary Wright, Program Director, Workforce Readiness Initiative at The Conference Board. “It doesn’t make any difference if you’re operating a business in Mumbai, Beijing or New York – the number one challenge facing every organization is finding and growing skilled talent,” said SHRM CEO and President Laurence O’Neil. HR professionals are helping bridge the gap by finding ways to give employees the skills they need to add value and to be more valued. However, “This isn’t just an HR challenge, but a bottom-line global business problem.” says O’Neil.

However, in any economy, having a knowledgeable and skilled workforce is crucial for any organization to grow and be successful. Tony Bingham, ASTD President and CEO backs this up, saying; “As the skills gap widens among new entrants to the workforce, it’s clear that all stakeholders – employers, education, and the public workforce system – must collaborate to effectively prepare workers to be successful on the job.”

The report also includes five case studies of successful workforce readiness programs run by Bank of America and Year Up, CVS Caremark and TJX Companies, Harper Industries, Northrop Grumman, and YUM! Brands, finds that: Many companies say new hires lack crucial critical-thinking and creativity skills. However, those same companies who offer successful training programs do not offer any kind of related training to improve critical thinking or creative skill sets, with the mindset that those skills should be previously acquired before any consideration for the position occurs. Because of the economical problems facing big business, employers’ inability to detail their spending on remedial programs makes it impossible to assess the true costs of an ill-prepared workforce to their own bottom line. Employers with successful workforce readiness training have incorporated a culture committed to training and thorough job-readiness screening. Strategic partnerships with local colleges and a focus on integrating training with job-specific skills, critical and creative thinking, and career development is one suggested solution. Additionally, constant re-evaluation to align training with company needs is also vital.

Employers should: Track the cost and quality of training programs, and help focus philanthropic dollars and public-policy discussions on the need to link K-12, technical-school and college education to the workforce readiness skills that employers need and workers must possess in order to be successful. Until they do, even with a proper education it seems that companies will continue to have to push funding into these corporate training programs, which at this time may or may not prove successful to either the new employee or their superiors.

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