It’s Not a Shortage…It’s the Norm

This morning, I listened to Sam Wolkenhauer from the Idaho Department of Labor provide updated information on the workforce. He confirmed what many of us have been preaching…this is our norm. The pandemic didn’t get us into the current workforce shortage. It has been coming, and we can't change these contributors:

• Birthrates have been negative since 1971. As people get older and retire, fewer babies are being born to replace them in the workplace, which means it’s a simple math question.
• Retirements won’t slow down. Sure, we can involve retirees in different capacities, but the largest working group is at or near retirement.
• Kids don’t work while in school like they used to (high school and college), and without the extra numbers in the workforce, it’s taking its toll.

Of course, other factors include the lack of available childcare, shifting career interests, and learning challenges. However, about 85% of our shortage can be attributed to Boomer retirements and low student workforce participation. As Wolkenhauer summarized, the American labor force won’t naturally fix itself as it has in the past.

I still find executives wondering how we got here. My first response is, “It doesn’t matter. We’re here. Now, let’s do something about it.”

My more diplomatic approach aligns with Sam's metaphor. Workforce shifts are like glaciers. It happens, but we don’t see it because of its slow movement. Looking back, you see valleys shaped by the glacier. In business, we focus on making the next quarter’s numbers and may lose sight of what’s happening around us.

This gets us back to what we can do about it. Employers must consider:

• Automation. There’s a lot of talk about AI and what some might consider technological “voodoo.” We must find ways to automate work – not eliminate jobs but reduce the demand for positions left unfilled. Automation can help improve efficiencies, effectiveness, timeliness, and more.
• Streamlining. It’s time to examine processes. Automation typically focuses on “systems” (including equipment), but processes are just as (or usually more) important. Consider eliminating unnecessary steps, increasing speed, and driving productivity. The overarching question must be, “Can we do it faster? Better? In fewer steps?”
• Delegation. It’s time to review jobs and ensure that the appropriate level of person completes the work. In manufacturing, we use the analogy that you don’t want a Level 3 Welder grinding. First, if they weld effectively, grinding should be minimal. Second, if grinding is needed, it can be done at $25/hour instead of $50/hour or more.
• Development. We must find ways to create pathways to positions. This includes paths from in-house, external sources, and schools. Internally, employees must grow—a basic need that can be met with promotional development opportunities. It’s far more efficient to develop someone you know who is a good employee than to hire someone off the street.

Some employers have figured out how to tap into high school talent sooner. Bridging employers and schools allows students to be involved in live projects, hands-on learning, and networking. It also builds bridges that promote employment while in school, job shadowing, and other ways to develop marketable skills. These can provide essential work to employers (at reasonable costs) while connecting students with employers to gain real-world experience.

As a caveat, employers often raise concerns about hiring kids under 18. Once you peel back the regulatory excuses for not hiring them, the list becomes shorter and easier to comply with. This may mean that we need to create or redesign jobs that students CAN perform.

Employers must adapt jobs that 16-year-olds can work. When you break down most job functions, you’ll see that students can perform most of them without restriction. Setting up a specific position, process, and function to align with high schoolers will accelerate learning and improve workforce readiness.

The goal of workforce development is (and must) be simple: find a way to develop qualified talent faster. This requires both internal and external partners. Employers can accelerate recruitment by engaging those ready to develop their skills and knowledge to meet the company’s needs.

So what's your next step? Successful employers find opportunities for students, reach out to the high school (or college) to discuss opportunities, and then make it happen. Employers can't wait for K12 to come to them...they need to approach the schools.

Good luck! Here's to your success...

See how the Production and Manufacturing Institute can accelerate student preparation for manufacturing, engineering, and construction careers. Applications are open now. (Link: https://www.manufacturinginstitute.net/ ) ??

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