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(1)

Survey of Lincoln Area Business

(and Comparison with Household Survey)

Presented at the

Greater Lincoln Workforce Investment Board Meeting February 25, 2015

Eric Thompson, Director Bureau of Business Research UNL College of Business Administration

www.bbr.unl.edu

College of Business Administration

Make It Work For Lincoln Survey

• Thank you to ATD - Lincoln Chapter, NDOL and NEDED

• Designed to identify the hiring needs and challenges faced by business as well as training activity

• Mailed to 1,300 Lincoln Metro Area businesses with 20 or more employees

(2)

Hiring Challenges

62.5% 37.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Yes No

Is It Difficult to Find Workers?

College of Business Administration

Hiring Challenges By Occupation

• Occupations Most Difficult to Hire

– Installation, Maintenance and Repair workers – Personal Care and Service workers

– Production workers

• Occupations Least Difficult to Hire

– Office and Administrative Support workers – Food Preparation and Serving workers

(3)

Hiring Challenges

58.1% 41.4% 55.0% 22.5% 26.2% 16.0% 4.4% 0.2% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Why is it difficult to find workers?

College of Business Administration

Hiring Challenges

• This appears daunting

• But, hiring difficulties vary by occupation

• There may be actionable solutions in

(4)

Hiring Challenges By Occupation

• Occupations where the primary difficulty is

a lack of occupation-specific skills

– Computer and Mathematical workers

– Installation, Maintenance and Repair workers – Production workers

College of Business Administration

Hiring Challenges By Occupation

• Occupations where the primary difficulty is

applicants with a poor work history

– Health Care Support workers

– Food Preparation and Serving workers – Construction workers

(5)

Hiring Challenges By Occupation

• Occupations where wage demands are

“too high”

– Business and Professional Operations workers – Healthcare Practitioners and Technical workers – Personal Care and Service workers

– Office and Administrative Support workers

College of Business Administration

Training

76.7% 23.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Yes No

(6)

Training

56.8% 34.9% 7.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Class but not certification Certification course College or community college course Type of Training?

College of Business Administration

Training By Occupation

• Occupations where certification, college or

community college course most common:

– Managers

– Computer and Mathematical workers

– Installation, Maintenance and Repair workers – Personal Care and Service workers

(7)

Summary from Business Survey

• Businesses face many challenges in hiring

– A lack of occupation-specific skills – Poor work history

– Wage demand which are “too high”

• Business are attempting to address skill

needs with post-hire training

• What else can be done?

College of Business Administration

Comparing the Surveys

• The Business survey was designed to have

some overlap with the Household survey in

terms of assessing occupations and work

experience of households and the

occupational and skills needs of businesses.

• The two surveys are not directly comparable,

(8)

Comparing the Surveys

• Employees were asked about barriers to

changing jobs, if a suitable job were to

become available.

• Employers were asked about occupations

that they hired

– Whether it was difficult to find workers in these occupations

– And if so, why was it difficult

College of Business Administration

Comparing the Surveys

• Sometimes there is rough agreement

(9)

75% 25%

Lack of Occupation Specific Skills Installation, Maintenance & Repair

Occupations

Identified as a reason for difficulty in finding workers Not identified as a reason for difficulty in finding workers

Business

College of Business Administration

Comparing the Surveys

Lack of Education Lack of Training

43% 57%

Installation, Maintenance, and Repair Occupations

Househol d Survey:

37%

63%

Installation, Maintenance, and Repair Occupations

Househol d Survey:

(10)

Comparing the Surveys

• And sometimes there isn’t agreement

between the surveys

College of Business Administration

Comparing the Surveys

83% 17%

Lack of Occupation Specific Skills Computer & Mathematical Occupations

(11)

Comparing the Surveys

Lack of Education Lack of Training

19% 81% Computer and Mathematical Occupations Yes No 12% 88% Computer and Mathematical Occupations Yes No Househol Househol d Survey:

College of Business Administration

Comparing the Surveys

• Similar pattern occur within the Production

(manufacturing) occupations

– 75% of businesses report that it is hard to find workers due to a lack of occupation-specific skills

– 23% of potential workers with experience in these occupations see a lack of education as an obstacle to new employment and 26% see a lack of training as an obstacle

(12)

Comparing the Surveys

• Previous slides are examples of a “Skills

Gap”

– Mismatch between the needs of businesses for skilled talent and the skills possessed by the available workforce.

– 83% of businesses hiring workers in

Computer & Mathematical occupations have a problem finding workers

– 75% for Installation, Maintenance & Repair

College of Business Administration

Skills Gap

• It is not necessary for businesses and

households to agree for there to be a skills

gap

– But, if both employers and potential employees perceive a lack of training or education, it may make it easier to train and educate workers

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