I compiled research as benchmarks for manufacturers to identify actionable items for DEED and DOLI to focus their resources.

1. WORKFORCE NEEDS
& BUSINESS
PROSPERITY
Meeting Employers & Meeting their Needs

2. Who & How
 Debra Bultnick, Manufacturing Industry Liaison
MN Dept of Employment & Economic
Development
 Rich Davy, Senior Field Rep
MN Dept of Labor & Industry
 Electronic copy of this presentation and the
survey will be made available upon request
2

3. Why we’re listening
 Intended Outcomes
 We want you to articulate your needs in a way
that helps us identify specific challenges
 We can tailor our services to better address your
needs
 We will identify gaps we can then bring to the
attention of the State and other organizations so
they may have your concerns in mind when
assessing how to better meet Minnesota
Manufacturing Industry’s needs
3

4. Validate/Repudiate Data
 The slides that follow contain national and
state data on workforce trends, shortages,
demographic changes, development strategies
and more
 For each, you will indicate “how true” the data is
for your particular business
 We’ll move through the slides together
 We’ll use your responses to paint a picture of
specific needs
 Note: Slide # and Question # do not match.
4

5. Changes in Workforce Size
How will the size of your workforce
change over the next three years?
20%
15%
10% Increase
Decrease
5% No Change
0%
Chan…
>25%
>25%
5-9%
<5%
5-9%
15-25%
10-14%
10-14%
15-25%
No
5 Industry Week

6. HR Managers’ Concerns
Training & Development
Retaining Top Performers HR managers
Recruiting were
N/A asked, “Which
of the following
is your greatest
staffing
concern?”
6 Office Team

7. What Grads are Saying
Have you been working at  Of those who had
the same position since new positions, most
starting with this employer?
(37%) had multiple-
70%
level
60%
50%
promotions, nearly a
40% third transferred to
30% another department
20% and 20% had a
10%
single-level
0%
Yes No
promotion.
7 RIT

8. What Grads are Saying
Is there anything your  Of those who plan to
current company could look for a job at a
have done/could do to
keep you? different
30%
company, 24% could
25%
be swayed to stay by
20%
a promotion, raise
15%
and/or salary
10%
increase.
5%
0%
Yes No
8 RIT

9. Impact of Aging Workforce
What impact
will the aging of
the workforce
have on the Very
economic Negative
Negative
environment
affecting your No Impact
company in the
near future (that
is, over the next
3 years)?
9 Sloan Center

10. Employer Readiness
Has your company analyzed/assessed its workforce
demographics? Makeup 26%
Demographic 38% 26% 11%
Projected Retirement Rates 13% 37% 37% 14%
Employee's Plans & Work 10% 40% 36% 14%
Purposes Not At All
Anticipated Skills Needs 13% 43% 33% 11%
Limited
Competency Sets of Employees 40% 37% 17% 5%
Moderate
Supervisors' Ability to Anticipate 47% 30% 19% 5% Extent
& Plan Staffing Needs Great Extent
Developed Succession 29% 40% 25% 7%
Plans
0% 50% 100%
10 Sloan Center

11. Older Workers
Comment on the number of programs or policies your
company has for older workers related to the following
areas.
Recruitment 10% 40% 36%
Training 13% 43% 33%
Career Progression/Promotion 40% 37% 17%
Too Few
About Right
Engagement 47% 30% 19% Too Many
Retention 29% 40% 25%
0% 20% 40% 60% 80% 100%
11 Sloan Center

12. Top Concerns
Vendor Financial Stability
Lack of Qualified Workers
Payroll Costs
Attract & Retain Qualified Workers
Cost of Goods
Customer Financial Stability
Foreign Competition
Pricing Pressures
Availability of Capital
Federal, State, Local Taxes
Government Regulations
Healthcare Costs
0% 20% 40% 60% 80%
Actionable items
Highest Concern Among Highest
12 State of Manufacturing

13. Broad Concerns
 Nearly 88% of employers agree that the
challenges their employees face within their
organization are more complex today than
they were before, and that to succeed in their
organization, employees need higher levels of
learning and knowledge today than they did in
the past.
13 AACU

14. Why They Come & Why They
Go
14 RIT

15. Competitive Wages
 For manufacturers, one challenge is to attract
the best employees who might be attracted to
work in other sectors. The provision of
competitive wages has been one means of
accomplishing this goal, but compensation in
this industry has stagnated and in some
respects declined over the past decade.
15 Sloan Center

16. Flexible Schedules
100
 Approximately 45%
Other Sectors
Manufacturing
of employees in the
75
manufacturing
sector are never
allowed to change 50
their
schedule, compared 25
to only 30% of
employees in other 0
sectors who are Allowed Not Allowed
16
never allowed to Sloan Center
change their

17. Workforce Flexibility 5 Ways
 Flexibility in the Number of  Options for Time Off.
Hours Worked. Examples Examples include: paid leave
include part time work, part for care giving/personal/family
year work, job share, phased responsibility, extra unpaid
retirement, and input into vacation days, paid/unpaid
overtime. time for
 Flexible Schedules. education/training, volunteeri
Examples include: changes in ng, or sabbatical.
starting/ quitting  Other Options. Additional
times, changes in examples include: control
starting/quitting times, in over the timing of breaks, and
compressed work, schedule allowing employees to
that varies from typical transfer to a job with reduced
schedule, choices about responsibilities and reduced
shifts. pay, if they want to.
 Flexible Place. Examples
include: working from
home/remote site, or being
able to select or
17
periodically/seasonally Sloan Center

18. Corporate Cocooning
 Over 80% of today’s employees feel
overworked and under-appreciated. Too many
businesses have survived by over-loading
their long-term employees.
 Once positive job growth occurs, some
employees will feel confident enough to leave
their companies.
18 Herman Trend Alert

19. Warning Signs
Mainly here to get a paycheck 35%
Not sure of my company's
38%
mission besides to make money
Would consider leaving for the
56%
same compensation
0% 10% 20% 30% 40% 50% 60%
19 StrategyOne

20. Workforce Shortages
 Just over half of Job Unfilled
respondents had 80%
positions unfilled
due to lack of 60%
qualified
40%
applicants.
 Job vacancies 20%
most acute for 0%
medium Very
Small Medium Overall
Small
companies (75-250 Percent Indicating at Least One Unfilled Position
employees).
20 MN Skills Gap

21. Maintaining Quality
Impact on Quality  Manufacturers were
35%
asked whether staff
reductions or other
34%
cutbacks
33% implemented in
2010 negatively
32%
impacted the quality
31% of their products/
30% services delivered.
Negative None
21 ASQ

22. 22
100%
0%
25%
50%
75%
Skilled
Production
Scientists/
Engineers
Sales/
No Shortage
Marketing
Low-skilled
Production
Workforce Shortages
Moderate
Mgt/Admin
Severity by Occupation
Customer
Serious
Service
Overall
MN Skills Gap

23. What Matters Most?
Base Recognition of  What else matters
Salary My Importance
18%  Benefits 6%
to the Company
14%  Flexible Schedule
4%
 Relationships with
Co-Workers 4%
Career
Oppty  Continuing
11% Education/ Training
Job
1%
Stability  Interesting/
31%
Challenging Work
23 Industry Week
1%

24. Top Factors for Future Success
 A high-performance
workforce was noted
by all sizes of
companies in every
region as most
important overall.
 Low-cost production
was #2 overall
 New product
innovation was #3
24 overall MN Skills Gap

25. Training Incumbent Workforce
 Overall, 20% of respondents indicated that nearly all
employees received training each year, but more than
half do little or no training.
Incumbents Receiving Training
>75%
50%-…
25%-…
10%-…
<10%
0% 10% 20% 30% 40% 50% 60%
25 MN Skills Gap

26. Retention Strategy
 Minnesota Improving
manufacturers were Organizational Culture
only half as likely to 50%
focus on improving
40%
their organization’s
culture as a means to 30%
retain their workforce.
20%
10%
0%
MN US
26 2005 Skills Gap/MN Skills Gap

27. 3 Tools to Improve the Culture
Nationally, manufacturers were more than twice as likely
to use certain retention strategies than their Minnesotan
counterparts.
30%
MN US
22%
20%
15%
9% 6%
10%
4%
2%
0%
Professional Tuition Formal Career
Development Reimbursement Planning
27 2005 Skills Gap/MN Skills Gap

28. Next Steps
We will You may
 Compile your  Contact us with
answers and more comments
prepare a report about your
back to each of you workforce needs
 Begin to research  Tell us about what’s
possible tools/ working for you—
practices/services to and what’s not
address concerns
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