Washington – A new survey released today reveals that the United States is at risk of losing its competitive edge and American workers’ economic potential by not addressing business’ growing demand for a better educated and better trained workforce. American workers’ unmet need for further education and training is exacerbating today’s unemployment problem and portending long-term trouble for workers and businesses – even after the economy recovers.
The survey findings show a glaring and growing need for workers with higher levels of skills and credentials, sharply contrasted with employers’ modest efforts to provide training and workers’ reluctance to pursue education and training because of serious obstacles holding them back. For example:
- Employers expect to see an increased need for a better skilled workforce, with 65 percent of employers surveyed saying they will require an associate’s degree or higher for most positions. Looking ahead four years, employers say their greatest need will be workers with more technical skills, higher degrees or certifications, and improved skills or better qualifications.
- Half of employers say they currently have such a serious gap between their needs and employees’ skills that it affects their productivity.
- Although they see a need for more highly skilled workers, nearly half (48 percent) of employers do not provide or require ongoing education or skills training for their employees, primarily because of cost.
Workers also understand the value of training but, like employers, are confronting barriers to making it a reality.
- Sixty-two percent of workers say a convincing reason to pursue training is that the future economy will be extremely demanding, and if their skills are not up to date, someone will pass them by.
- However, a large proportion of workers are not pursuing training and education because of practical obstacles. Workers cite cost, convenience, and lack of reliable information on what type of training will lead to a job or higher salaries as the top three factors preventing them from enhancing their skills and improving their education.
The survey, “The American Workforce,” was conducted for The Springboard Project, an independent commission convened by Business Roundtable that is creating innovative approaches to helping American workers develop the skills they need to remain competitive in the global marketplace.
The results show that in spite of hurdles, workers have a strong appetite for training:
- Eight in ten workers – regardless of income or education level – show keen interest in pursuing further training and education.
- The majority of workers say they would be very likely to pursue training or education if the obstacles they face could be overcome by such initiatives as programs with flexible classroom hours or enrollment periods, tuition reimbursement, online learning or programs designed and managed by local business leaders.
“The survey findings underscore the fact that we can and must do a better job of training and developing talent in the United States,” said William D. Green, chairman and CEO of Accenture and chairman of The Springboard Project. “With these findings, we can better understand the challenges facing our workforce, and developing and implementing solutions to overcome them is critical to ensuring America’s future.”
“If ever there was a time to recommit to worker training and education in America, that time is now. As a former Governor of West Virginia, I’ve seen firsthand the challenge in ensuring that workers, employers and the government all understand the return on investment,” said Bob Wise, President of the Alliance for Excellent Education, and a member of The Springboard Project.
The survey findings point to solutions for strengthening the country’s commitment to training and education, including greater collaboration between business and educational institutions. Workers expressed strong support for partnerships among government, businesses and colleges to help workers afford and gain access to skills training and education programs. “We know that when educators and employers work together, students receive not only basic skills that will allow them to continue their education, but also the specific capabilities that employers are looking for when making hiring decisions,” said Gail Mellow, Ph.D., President of LaGuardia Community College in New York City and a member of The Springboard Project.
The Springboard Project will use the survey findings to develop recommendations for business, government and education institutions on how they can collaborate creatively to help workers acquire the training and education they want and need. These recommendations will be released in a final report later this year.
Key findings of survey probing the attitudes and perceptions of workers and employers about training and education.
Profile of today’s workers
- Strong appetite for training and education: More than 80% are willing to participate in training/education outside the workplace—regardless of income or education level.
- Highly motivated by potential to earn more and stay marketable in future economy: 71% find it very convincing that new jobs with family-supporting wage require post-high school education; 62% find it very convincing that future jobs will be more demanding and that training is critical to remain competitive.
- Held back by practical obstacles to training and education: 43% cite inconvenience; 37% cite cost, including half of those earning less than $50,000 a year; 25% point to lack of customization, lack of accreditation and general time constraints.
- Very willing to pursue training/education if programs were more convenient and offered greater flexibility: 62% would be “very likely” to pursue education if classes were offered year-round and at times that accommodate their work schedules.
- Want reassurance that investing in training and education will pay off: 41% see risks to pursuing skills training now because they are unsure about what their job will require in the future.
- Confident if they have pursued training: Nearly three-quarters of those who previously participated in training feel “somewhat” or “very” confident they could secure work if they lost their job.
- Self-motivated to strengthen their skills: Nearly 50% have spent 4+ hours outside of work gaining information or skills to improve their work.
- Are under the wrong impression that we are in an “equal opportunity recession": 70% think the recession is costing people jobs regardless of education or skill level, when in fact the downturn is falling hardest on low-wage workers who have less education and lower skill levels.
Profile of today’s employers
- Demanding better-educated workers: 65% anticipate hiring “all,” “most” or “some” workers with associate’s degrees or higher.
- Wrestling with undertrained workforce: Half see a sizeable gap between their needs and employees’ skills.
- More likely to be growing if training their workforce: Employers offering training are nearly twice as likely to increase their workforce.
- View business as well as colleges/universities – not government – as responsible for educating and training the workforce: 84% of employers feel that businesses and educational institutions should play a primary role in creating education and job training programs. Relatively few (only 14%) look to government to play this role.
- See themselves (91%) and individuals (87%) as responsible for funding training and education: Nearly half of employers (45%) believe government should have no role in funding these programs.
- See a considerable deficit of “soft skills” among workers: Employers see shortage of fundamental workplace skills such as punctuality, professionalism, strong work ethic and time management among current workforce.
Methodology
The American Workforce survey was conducted by Benenson Strategy Group. The results are based on four focus groups and a quantitative study conducted from June to July of 2009 that probed the attitudes, values, hopes and fears of more than 1,000 American workers about education, training and ongoing learning and skills enhancement. In addition to the American Workforce Survey, The Springboard Project surveyed 601 business executives about training and education practices and perceptions in the workplace.