34th Annual Survey of Corporate Executives Commentary: Corporate Survey Respondents Give Training Programs Short Shrift
Considering the importance of access to skilled labor at a reasonable cost, why don’t corporate executives give more importance to training and technical programs?
Given historically low unemployment, we all know there are few people on the sidelines waiting for a job offer. As a result, companies are forced to hire from the ranks of the “already-employed,” in turn bidding up wages to entice folks to leave good jobs for a better one. That’s the direct tradeoff between availability and costs many companies face.
Alternatively, expanding companies can hire from the ranks of the underemployed (e.g., folks working in retail or food service). Or they can hire workers re-tooling from other industries. Or they can hire younger workers now entering the workforce. These are oftentimes untapped sources of labor. The common denominator across those pools of workers, however, is the critical importance of strong state, regional, and local training and education programs.
So, if companies value access to skilled workers while remaining sensitive to rising labor costs, why aren’t they flocking to every local technical college or career high school to find that talent? Why isn’t training programs/technical schools ranked No. 1?
Clearly, there are many reasons why that’s not the case — far too many to list. But I do think one, simple way to get more locationally active companies focused on training resources is to ensure that local industry in addition to economic development and training partners are the ones telling that training story. In our experience, that training pitch resonates much more strongly when it comes from the folks who are actually using those training resources and can speak firsthand to their value.
If local employers are engaged with training and education, then it’s more likely that future employers will be engaged with training and education. And, come next year, we’ll (hopefully) see training programs rise up the rankings.
Supply Chain Bottlenecks Creating New “Logistical Hotspots”
The “Great Resignation” Is Impacting Corporate Relocations
Workforce Q4 2021
Changes in the Incentives Landscape
2020 Top States for Doing Business Showcase Their Pro-Business Environments
2021 Gold & Silver Shovel Awards Recognize State and Local Economic Development Efforts
How an International Business Can Enter the U.S. Market Via M&A