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Economics Discuss Why Companies Aren't Getting the Employees They Need at the Political Forums; Even with unemployment hovering around 9%, companies are grousing that they can't find skilled workers, and filling a job can ...

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Old 07-21-2012, 05:30 PM
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Post Why Companies Aren't Getting the Employees They Need

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Even with unemployment hovering around 9%, companies are grousing that they can't find skilled workers, and filling a job can take months of hunting.

Employers are quick to lay blame. Schools aren't giving kids the right kind of training. The government isn't letting in enough high-skill immigrants. The list goes on and on.

But I believe that the real culprits are the employers themselves.

With an abundance of workers to choose from, employers are demanding more of job candidates than ever before. They want prospective workers to be able to fill a role right away, without any training or ramp-up time.

Bad for Companies, Bad for Economy

Andrea Levy
In other words, to get a job, you have to have that job already. It's a Catch-22 situation for workers—and it's hurting companies and the economy.

To get America's job engine revving again, companies need to stop pinning so much of the blame on our nation's education system. They need to drop the idea of finding perfect candidates and look for people who could do the job with a bit of training and practice.

There are plenty of ways to get workers up to speed without investing too much time and money, such as putting new employees on extended probationary periods and relying more on internal hires, who know the ropes better than outsiders would.

It's a fundamental change from business as usual. But the way we're doing things now just isn't working.

The Big Myths
The perceptions about a lack of skilled workers are pervasive. The staffing company ManpowerGroup, for instance, reports that 52% of U.S. employers surveyed say they have difficulty filling positions because of talent shortages.

But the problem is an illusion.

Some of the complaints about skill shortages boil down to the fact that employers can't get candidates to accept jobs at the wages offered. That's an affordability problem, not a skill shortage. A real shortage means not being able to find appropriate candidates at market-clearing wages. We wouldn't say there is a shortage of diamonds when they are incredibly expensive; we can buy all we want at the prevailing prices.

The real problem, then, is more appropriately an inflexibility problem. Finding candidates to fit jobs is not like finding pistons to fit engines, where the requirements are precise and can't be varied. Jobs can be organized in many different ways so that candidates who have very different credentials can do them successfully.

Only about 10% of the people in IT jobs during the Silicon Valley tech boom of the 1990s, for example, had IT-related degrees. While it might be great to have a Ph.D. graduate read your electrical meter, almost anyone with a little training could do the job pretty well.

A Training Shortage
And make no mistake: There are plenty of people out there who could step into jobs with just a bit of training—even recent graduates who don't have much job experience. Despite employers' complaints about the education system, college students are pursuing more vocationally oriented course work than ever before, with degrees in highly specialized fields like pharmaceutical marketing and retail logistics.

Unfortunately, American companies don't seem to do training anymore. Data are hard to come by, but we know that apprenticeship programs have largely disappeared, along with management-training programs. And the amount of training that the average new hire gets in the first year or so could be measured in hours and counted on the fingers of one hand. Much of that includes what vendors do when they bring in new equipment: "Here's how to work this copier."

The shortage of opportunities to learn on the job helps explain the phenomenon of people queueing up for unpaid internships, in some cases even paying to get access to a situation where they can work free to get access to valuable on-the-job experience.

Companies in other countries do things differently. In Europe, for instance, training is often mandated, and apprenticeships and other programs that help provide work experience are part of the infrastructure.

The result: European countries aren't having skill-shortage complaints at the same level as in the U.S., and the nations that have the most established apprenticeship programs—the Scandinavian nations, Germany and Switzerland—have low unemployment.

Employers here at home rightly point to a significant constraint that they face in training workers: They train them and make the investment, but then someone else offers them more money and hires them away.
Why Companies Can't Find the Employees They Need - WSJ.com

Here is a major factor in the "unemployment" problem.
Companies are not feeling the same pain as the workforce. Companies are doing relatively well, but they aren't "trickling down" their profits to the workforce...
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Old 07-21-2012, 05:37 PM
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Default Re: Why Companies Aren't Getting the Employees They Need

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Originally Posted by foundit66 View Post
Why Companies Can't Find the Employees They Need - WSJ.com

Here is a major factor in the "unemployment" problem.
Companies are not feeling the same pain as the workforce. Companies are doing relatively well, but they aren't "trickling down" their profits to the workforce...


Antecdotal evidence forthcoming:

My company still puts employees thru aprentiships. We as management have come to the realization that todays youth do not want to do manual labor jobs.......until they hear what we make. Thus we take them as laborers and get the real OJT and pay for classroom training once a week. They are given raises for their progressions with a guaranteed raise to journeyman status upon completion of the 4 year program.

This can take your basic $10 an hour laborer, to a guy making $65K+ a year in 4-5 years. COLLEGE CANNOT guarantee this type of return on a $0 dollar investment by the student.

But, we will still have the same issues they speak of..............After I train them, they will still bolt for $1 and hour more.........
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Old 07-21-2012, 10:35 PM
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Default Re: Why Companies Aren't Getting the Employees They Need

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Originally Posted by foundit66 View Post
Why Companies Can't Find the Employees They Need - WSJ.com

Here is a major factor in the "unemployment" problem.
Companies are not feeling the same pain as the workforce. Companies are doing relatively well, but they aren't "trickling down" their profits to the workforce...
Blame it on the absurd notion of a mandated minimum wage. Or labor costs are thus distorted.

I never grow tired of the amusement I feel when I read about how companies are doing well and will continue to do well hen the consumers are broke.

People need only accept that their services are worth what the employer is willing to pay, not what a politician, job counselor or their mothers thinks they are worth.

Of course, they could also shut up and try to start a business of their own, but that would involve the inescapable intrusion of reality on their warped value system, no wouldn't it?
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Old 07-22-2012, 03:03 AM
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Default Re: Why Companies Aren't Getting the Employees They Need

The article contradicts itself...

FIRST, they say...

Quote:
With an abundance of workers to choose from, employers are demanding more of job candidates than ever before. They want prospective workers to be able to fill a role right away, without any training or ramp-up time.
So the first complaint they show is that they want people with the skills to pay the bills...Prospective employees have a skills shortage...They can't find educated people...

But THEN they make a contradictory complaint...

Quote:
Some of the complaints about skill shortages boil down to the fact that employers can't get candidates to accept jobs at the wages offered. That's an affordability problem, not a skill shortage.
So they say the problem is that companies want to hire people who know everything and there aren't any, and then they say can't hire people that know everything because their pay demands are too high...So they CAN find educated people, but don't like the requirements to hire...

So which is it?...It can't be both...
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Old 07-22-2012, 07:16 AM
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Default Re: Why Companies Aren't Getting the Employees They Need

They aren't talking about jobs you can just train people for in a couple of weeks.

They are talking about jobs where you need some sort of technical school training or the like,

We have all these college graduates with useless degrees and high student debt in Advanced CUbs 3rd base history while kids who actually got a useable skill are in high demand.
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Old 07-22-2012, 08:09 AM
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Default Re: Why Companies Aren't Getting the Employees They Need

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They aren't talking about jobs you can just train people for in a couple of weeks.

They are talking about jobs where you need some sort of technical school training or the like,

We have all these college graduates with useless degrees and high student debt in Advanced CUbs 3rd base history while kids who actually got a useable skill are in high demand.
People with trade school degrees and useful skills might be "in high demand", but in my state- a non-union state- they still don't make much money. Barely enough to avoid living in poverty, especially if they have large families.
My state is more than half hispanic. Large families are a traditional part of the latino culture. Not all individuals of hispanic heritage today wish to have five or six children, but many still do. A welding degree and an air-conditioning license from the community college or one of the local trade schools will not permit them to support their families in anything but poverty and squalor, regardless of how many hours they put in.
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Old 07-22-2012, 08:52 AM
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Default Re: Why Companies Aren't Getting the Employees They Need

How many times have you looked at a product or service but decided not to buy it because the price was too high? It is the same with businesses looking to hire.

Lots of younger workers having been raised in our entitlement culture demand big bucks to start and that the job conform to their interests. Employers with many options to chose from in the Obama economy are unwilling to take the risk and bear the expense of developing a technically skilled employee from a history major.

At the same time some businesses overlook high potential candidates by using HR to screen using checkboxes of binary requirements. When they receive hundreds of applications per job opening it is difficult to justify the lost productivity of having the hiring manager pick through them all.
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Old 07-22-2012, 09:04 AM
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Default Re: Why Companies Aren't Getting the Employees They Need

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How many times have you looked at a product or service but decided not to buy it because the price was too high? It is the same with businesses looking to hire.

Lots of younger workers having been raised in our entitlement culture demand big bucks to start and that the job conform to their interests. Employers with many options to chose from in the Obama economy are unwilling to take the risk and bear the expense of developing a technically skilled employee from a history major.

When it comes to menial or semi-skilled work, workers don't get any brownie points (ie, raises and promotions) for being older, or for having been on the job for years.

For one thing, if they're older, the skills they learned in trade school thirty years ago are now obsolete, and a recent young trade school grad is actually better qualified.

For another, a twenty year old is typically physically stronger and healthier and able to work faster, harder, and longer than a fifty year old.
And when it comes to low-end labor, that's what employers want: brute physical strength and endurance. What else are they supposed to care about? Those are the qualifications for the job.
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Old 07-22-2012, 09:56 AM
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Default Re: Why Companies Aren't Getting the Employees They Need

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When it comes to menial or semi-skilled work, workers don't get any brownie points (ie, raises and promotions) for being older, or for having been on the job for years.

For one thing, if they're older, the skills they learned in trade school thirty years ago are now obsolete, and a recent young trade school grad is actually better qualified.

For another, a twenty year old is typically physically stronger and healthier and able to work faster, harder, and longer than a fifty year old.
And when it comes to low-end labor, that's what employers want: brute physical strength and endurance. What else are they supposed to care about? Those are the qualifications for the job.
How many of those history majors I used as an example are looking for low end laborer work? Few if any. They prefer welfare from their families and government to the "indignity" of even semiskilled labor.

The assertion that workers stop learning once they leave trade school is insulting. Training and education is just the start of a productive employees learning. That is why employers value experience over a new graduate.
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Old 07-22-2012, 10:26 AM
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Default Re: Why Companies Aren't Getting the Employees They Need

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How many of those history majors I used as an example are looking for low end laborer work? Few if any. They prefer welfare from their families and government to the "indignity" of even semiskilled labor.

The assertion that workers stop learning once they leave trade school is insulting. Training and education is just the start of a productive employees learning. That is why employers value experience over a new graduate.
My ex-husband got a trade school degree in commercial art, back in the early 90s. he worked in his field (sort of- at a printing company) for awhile.
But shortly after he graduated, everything changed, and the field became very computer-oriented and technically advanced, in ways that he had not learned in trade school.
Today, he works in a factory. He won't work in his field again.

edit: I should add, though, that he is a foreman in the factory, and he's probably better off than he would've been with no degree at all.
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