Chamber: Work force issues dominate regional agenda

Although area unemployment rates have experienced a slight jump in recent months and the economy may be experiencing a temporary lull, work force challenges continue to affect businesses in the Ozarks.

These challenges were confirmed by a recent survey of more than 1,000 regional employers in our 10-county area. This survey, conducted in the last quarter of 2000, was commissioned by the Ozarks Regional Economic Partnership and the Workforce Development Council of the Springfield Area Chamber of Commerce.

The purpose of the survey was to confirm several assumptions about the area's labor needs and to act as a benchmark for the condition of the region's work force environment. Not surprisingly, the data clearly indicates that almost 90 percent of employers, large and small, across all business categories, are experiencing at least some difficulty finding qualified job applicants. The vast majority also are concerned about how labor availability will affect their businesses in the next few years.

Despite the work force challenges, the business environment in Springfield continues to be strong. The survey indicated that 80 percent of employers anticipate they will need to expand their work force in the next three years. The most widespread reaction to the tight labor market has been to increase pay and/or benefits.

Almost 50 percent of the employers surveyed are giving at least some thought to hiring nontraditional workers, using nontraditional scheduling and changing recruiting procedures. However, only a small number are giving these alternatives serious attention.

Although technical/professional skill deficiencies are a concern, more than 80 percent of employers indicated that basic work and life skills (i.e. work ethic, punctuality, attendance, appearance, etc.) are of greater concern. Despite the fact that this is a major shortcoming in their work force, few employers are providing training to address these skill deficiencies, probably because this is not the type of training traditionally required by employers.

However, we are in an nontraditional situation of low unemployment, and experts forecast this trend continuing for up to 15 years, so employers may need to begin offering such training.

Several area businesses are having some success in meeting hiring and retention challenges. They are successful because they are willing to explore new ways to address their challenges. Businesses are rethinking their hiring requirements and embracing the idea of hiring for traits then training for skill.

As the survey indicated, pay increases have been tried by many employers as a quick fix, but pay is not the solution. In fact, surveys indicate that the majority of employees, regardless of whether they feel they are underemployed, do not change jobs because of pay but because of how they felt they were treated within the organization.

So what is the answer to our challenges?

Because this labor crunch is so widespread, many organizations across the country are exploring best practices. Several have developed winning strategies regarding hiring, training and retention of an entry-level work force.

Some key elements are connecting the needs of business to educational institutions and training providers, and informing potential employees of the skill demands of business and the organizations that can help them develop these skills.

One predominant philosophy seems to be consistent with all of these strategies: partnering and working together. As with all challenges we face, collaboration and working together are essential in developing successful strategies.

To this end, the Springfield Area Chamber of Commerce has identified work force challenges availability, growth, development and retention as a priority issue for 2001. The chamber has established a task force to develop a strategic plan to address these challenges. Members include community, business, and educational leaders from throughout the region.

The 55 cities, counties and chambers of commerce represented by the Ozarks Regional Economic Partnership have identified work force challenges as a priority. This will be the topic for the second annual Regional Summit on April 26.

The meeting will bring together business, government, and educational leaders to begin discussions of what the partnership can do to assist in this regional issue.

(Allen Kunkel is manager of regional development with the Springfield Area Chamber of Commerce.)