WORKFORCE DEVELOPMENT: YOU’D BETTER BET ON IT Committing to workforce development is essential for companies to grow and stay competitive. Having a trained and knowledgeable workforce allows employees to feel confident in their roles, which can translate into employees providing services and products in the highest standard. Though the importance of workforce development may seem intuitive, the bottom line is in the numbers. In 2018, we saw a record 6.7 million job openings in America. Employers say that they can’t find qualified candidates to fill many of these positions. Attracting skilled workers is only one side of the issue. Post-Great Recession, there remains a large segment of the workforce who is not actively seeking employment. The Great Recession, 2007–2009, pushed people out of the labor force with jobs lost and no new work to be found. As a result, people chose to replace their occupations with school, retirement, or unpaid caretaker roles and though the economic outlook has improved since then, there is still a gap of available, willing, skilled workers seeking employment. In a recent report investigating the talent landscape of the construction industry, 89% of survey participants reported worker shortages. Similarly, a survey of over 17,000 energy industry professionals indicates wide-spread concerns that a talent crisis has struck, with 62% reporting talent shortages. Some researchers point to slow wage growth as part of the missing workforce problem. According to the Pew Research Center, the average American paycheck’s actual purchasing power is nearly the same as it was 40 years ago. With multiple factors in play, employers must look to offer an assemblage of incentives and benefits to get ahead of the labor shortages hounding their industry. GET IN THE GAME Workforce development programs help increase retention and are one of the top benefits a company can offer. However, research suggests that in the construction industry, many don’t have a formal workforce development budget. Replacing employees is costly, from executives to managers to those in high-turnover, low-paying jobs. An estimated cost of replacing one $10/hour employee would be about $3,300. One area where many companies spend to draw in and keep people is through workforce development programs. The 2017 Association for Talent Development “State of the Industry” report shows that employer spending in this area has increased every year since 2010 and the average money spent on training is $1,252 per employee, according to the most recent data. Employees who feel valued and appreciated will develop dedication to their company, casting a healthy culture, which further motivates employees to stay. Education is key. Employees view new skills training as a commitment to them by their employer. Furthermore, providing workers opportunities to evolve makes sense in the long term because not many will stay with a company that has no path for growth. TWO