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CCH® HR MANAGEMENT - 08/06/09

New report shows employers struggle with ill-prepared workforce

U.S. employers continue to struggle with an ill-prepared workforce and new hires lack crucial basic and applied skills. For the most part, employer-sponsored readiness training is not successfully correcting these deficiencies. These are the findings of a report, The Ill-Prepared U.S. Workforce: Exploring the Challenges of Employer-Provided Workforce Readiness Training, produced by Corporate Voices for Working Families, the American Society for Training & Development (ASTD), The Conference Board, and the Society for Human Resource Management (SHRM).

"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, executive chair, Corporate Voices for Working Families. "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."

According to the report, many companies say new hires lack crucial critical-thinking and creativity skills—but don't offer related training. Also, 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—or the economy's—bottom line.

Almost half of respondents said they have to provide readiness training for new hires—and the majority rate their programs as only "moderately" or "somewhat successful." The report revealed that those employers with successful workforce readiness training incorporate: 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 and career development; and Constant re-evaluation to align training with company needs.

"In any economy, having a knowledgeable, skilled workforce is critical for organizations to grow and be successful," said Tony Bingham, ASTD president and CEO. "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 reports' authors suggest 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.

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