As business people throughout Illinois deal with a global economy, increased competition, and unusually low unemployment rates, they are acutely aware of the importance of a well-educated, highly-skilled workforce. Qualified employees are hard to find, and the tight labor pool is making it difficult for many companies to expand or seek new business.

Efforts to develop and maintain a strong workforce have changed dramatically over the years as a result of federal legislation and statewide initiatives – leading to the formation of local workforce development and investment boards, the establishment of one-stop employment and training centers, and extensive involvement by chambers of commerce.

A Brief History of Job Training Programs

Job training programs began in the 1930s with Roosevelt’s New Deal legislation, designed to promote economic recovery and social reform during the Great Depression. The legislation resulted in the establishment of several programs, such as the famed Civilian Conservation Corps and the Works Progress Administration that provided unemployment compensation and work for the unemployed.

Two decades later, in 1958, the National Defense Education Act was passed, providing support for training in certain occupations that were in short supply.

Designed to strengthen economically depressed areas, the Area Redevelopment Act of 1961 helped establish job training programs in targeted areas. A year later, Congress passed the Manpower Development and Training Act, acknowledging that the problem of unemployment affected the entire country, not just certain areas. The legislation provided for several types of training and retraining of the unemployed. Another key piece of legislation in the 1960s was the Economic Opportunity Act of 1964 which provided for the creation of the Job Corps, a program that offered youth educational and vocational training. Formed as part of this act, the Office of Economic Opportunity administered the Job Corps, as well as several other work and training programs throughout the late 1960s. These programs were called "categorical programs" because they served a specific population through selectively applied criteria.

In the 1970s and 1980s, job-service offices became involved in training via the Workers Incentive Program. Established as a cooperative entity between job-service offices and state welfare agencies, WIN helped to train and place welfare recipients. In 1988, the program was replaced by Job Opportunities and Basic Skills Programs.

Also in 1973, the Comprehensive Employment and Training Act was enacted, making economically disadvantaged, unemployed, and underemployed persons eligible for job training. This included youth, older workers, members of minority groups, public aid recipients, and others. CETA absorbed most of the categorical programs of the 1960s and was replaced by the Job Training Partnership Act in 1982.

Enacted to prepare youth and unskilled adults for entry into the workforce, JTPA also provided job training for economically disadvantaged persons and others facing barriers to employment. As part of the act, each state’s governor was required to appoint a state job-training coordinating council and designate statewide Service Delivery Areas to receive JTPA funds.

As part of the JTPA legislation, Private Industry Councils were established in each of Illinois’s 26 Service Delivery Areas. Consisting of representatives from the private and public sectors, PICs determined the direction of local JTPA-funded programs, monitored and evaluated local programs, and responded to the needs of local economic development organizations.

In May 1994, President Clinton signed into law the School-to-Work Opportunities Act, which enables state and local communities to form creative, public/private partnerships to increase the potential for youth and adults to further their education and their work skills by being active players in the workplace. The ultimate goal of this Act is to provide youths and adults with high-skill, high-wage careers.

Workforce Development Boards Expand the Role of Private Industry Councils

More recently, it was recognized that broader services were needed to reach the diversity of unemployed populations. Expanding the role of earlier PICs, Workforce Development Boards replaced many of them. Workforce Development Boards strategize about their communities’ needs, create policy, and meet locally determined performance standards. No longer limited to JTPA funding, the boards view JTPA as one of many funding sources to support their mission. They are increasing services through the addition of new partners and, working cooperatively with business development organizations, are enhancing economic development and quality of life in their Service Delivery Areas.

According to Paul Kuchuris, chair of the DuPage County Workforce Development Board, "Workforce development boards are given a great deal of flexibility in their structure so they can build upon the strengths of their local communities. While legislation stipulates a strong private-industry orientation, boards are given the freedom to determine the best way to accomplish their objectives. Establishing strong partnerships with other groups is an important part of our leadership role." In DuPage County the workforce development board is forming key relationships with local colleges, schools, businesses, the Education-to-Careers organization, public agencies, chambers of commerce, and the Illinois Employment and Training Center. In fact, the DuPage County WDB recently hosted a Future Summit in which representatives of all these groups came together to share information and plan cooperative programs.

In August, another key piece of legislation, the Workforce Investment Act of 1998, was signed into law. While it is too soon to know all of the effects of this legislation, it does call for the establishment of workforce investment boards at state and local levels. These new investment boards will expand the role of current development boards and will play a key role in the establishment of one-stop employment centers, known throughout the state as Illinois Employment and Training Centers. The new act also ensures that employment programs are driven by the private sector.

The Establishment of Illinois Employment and Training Centers

In an effort to centralize important employment-related services, the federal government directed states to consolidate their major U.S. Department of Labor services in one-stop career centers. Illinois responded by establishing a series of Illinois Employment and Training Centers. Currently, 54 of these centers are operational in Illinois, and a total of 55 centers will eventually be open.

Responding to community needs, each center is made up of a partnership of state and local organizations that provides important workforce training and support services. The Illinois Department of Employment Security is one of the partners, matching employer job openings with available job seekers, administering the unemployment insurance program, and providing labor-market information. The local organization that administers JTPA programs is also part of each IETC, ensuring that job training programs are easily accessible. Other employment-related organizations are also partners in various IETCs, depending on the needs and strengths in each locale. In many communities, local colleges play an important partnership role, providing on-site career counseling and specialized training.

The Glenview Chamber of Commerce has discovered one of the benefits of working with its local IETC. Terri Lynn Graham, president of the chamber, recently wrote, "Our members can come into the chamber office and use our computer to hook up to the state’s database of potential employees. The employer inputs the criteria for the open positions, and the program then selects those who match from this area." Explaining the success of this service, Graham continued, "We have had large companies identify dozens to interview and had a plumbing company fill their one available position. Chamber members appreciate the convenience and familiarity of working with our office and the potential of the state’s list of almost 200,000 candidates."

An Important Role for Chambers of Commerce

With the passage of the Workforce Investment Act, chambers of commerce are strongly encouraged to take an important leadership role in the workforce effort.

Mike Skarr, executive director of the Naperville Area Chamber of Commerce and a member of both the DuPage County Workforce Development Board and the Illinois Human Resource Investment Council, shared his unique perspective, "Ever since I have been involved in workforce development, the missing link has been connecting the world of work with the world of learning." He continued, "If you think about business education partnerships, those occur one by one. In our area, we have over 6000 businesses, but we have only 600 partnerships. So how do we reach a

critical mass? That’s the role chambers of commerce can play, because they are the only grassroots business organizations that represent not only large businesses, but to a great extent small- and medium-sized businesses. And everyone says that’s where the real growth for retraining and upgrading workforce skills exists."

Skarr also identified these important workforce development challenges for chambers of commerce across the state:

1. Is workforce development a real agenda item for each and every chamber in Illinois, regardless of size? If it isn’t, it needs to be.

2. Is each chamber engaged in workforce development in some meaningful way, and are they bringing their members to the table?

3. Since the private sector operates on a regional basis, rather than a community basis, can chambers also offer the same regional perspective that’s necessary when you talk about workforce development?

4. As the last step in the process, can the state chamber marshal all these separate, well-intended resources into an effective effort that impacts the way workforce programs are conceived, operated and managed?

Kuchuris emphasized the importance of the chamber’s role when he added, "Unified planning is a strategic element in the workforce effort throughout the state. Chambers of commerce, as representatives of businesses in their areas, are critical to the success of these efforts. It is vitally important for them to be involved!"

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Through Work-Based Learning Opportunities

Public education is a critical ingredient in the growth of our nation. The Committee for Economic Development warned that the national effort to improve schools would fail unless companies play a more active role. The Business Roundtable, the National Alliance of Business, the American Business Conference, the National Employer Leadership Council and other professional associations have bolstered this fact.

Two recent studies provide empirical evidence demonstrating the positive impact of corporate investment in schools. The Institute for Research on Higher Education at the University of Pennsylvania, analyzed 1997 national employer survey data, and states that, corporations which actively engage their local education systems help to generate a future labor force that is more stable, more work-ready and better matched to the workplace of the future. The study also found that corporations that work closely with their local high schools showed a turnover rate among young employees that is half that of other companies. A study by the Vault Reports found that companies who hire their interns save themselves on average $6,200 in training costs, a 16% savings over hiring non-interns.

The Council on Competitiveness found that the greatest concern of American CEOs for the coming decade is the answer to this question: Where will we find or how can we develop more highly skilled employees to operate and maintain our businesses in the future?

Finding highly skilled, well-trained workers to sustain America's competitiveness is one of the most crucial concerns of corporate America. This concern is putting pressure on businesses to examine their recruiting, staffing and retention strategies.

As skilled labor shortages spread to more industries, many corporations including McDonald's, Motorola, Illinova, Dell Computer and Oracle have established training universities. These universities parallel the corporate America's proactive interest in developing knowledgeable workers to close the skills gap and boost productivity. There are more than 1,000 corporate universities today nationwide!

Never before has a society been more cognizant of the shortcomings of its public education system, nor have we ever demanded so much from it. David Kearns' Winning the Brain Race states, "The simple truth is we can't be a world class economy without a world class workforce . . . and we can't have a world class workforce without world class schools," even though Chicago Public Schools' (CPS) achievement scores have increased since Mayor Richard M. Daley took control of it. With a graduation rate at 65.2%, a dropout rate at 16.2%, reading scores of ninth and eleven graders at 28.6%, and math scores at 31.2%, CPS is not a world class educational system.

The United States is locked into a dysfunctional relationship between education and work. We have created a society in which the only reliable way to enter the workforce, in a career capacity, is to graduate from college. A college degree is no longer a guarantee of career preparedness. Students need academic credentials and occupational skills. Pursuing a baccalaureate degree is a sound post-secondary strategy for some high school graduates, but it is not a realistic goal for all of them.

Nearly 50 percent of American students who receive high school diplomas enter some form of post-secondary education. But barely half of students who enter post-secondary education will complete the program and graduate.

That means that only 25% of our young people--those who earn a post-secondary degree--are eased into work and civic adulthood. The other 75% of our young--the neglected majority--are left to fend for themselves. To further exacerbate this disparity, according to the U.S. General Accounting Office, the U.S. invests about $20,000 preparing students for college, which is more than twice the $9,000 amount that the U.S. spends on non-college-bound youth. This is an underutilization of human capital, and a waste of financial capital.

Work-Based Learning

There is nothing new about students in the workplace. Surveys show that about 80 percent of students are employed at sometime during their high school years, but these jobs are seldom connected to their studies or career aspirations. For many students, what they learn in school appears to have little meaningful connection to their lives. Students need to understand the world of work and how their studies prepare them for the future. The cognitive research literature shows that individuals learn best by doing, when they apply their theoretical academic lessons to real-world activities and situations. Hence, what takes place in the classroom should be contextually related to what takes place in the corporate business office, the manufacturing plant, the community-based organization, the health care facility, etc.

By integrating abstract academic content and structured work experiences, students are introduced to workplace culture. Integrated learning occurs when academic and vocational teachers link curricula and instruction to help students understand how knowledge and skills are used in real life settings. All students, but especially students of color, respond to teachers who teach for meaning and understanding rather than teaching skills or knowledge out of context.

Skills Standards

Employers recognize that a large proportion of high school students are entering the workplace ill-equipped to perform the basic job requirements for which they are hired. Employers no longer assume that a diploma or previous work experience ensures necessary skills. Establishing a system of standards that delineates the skills and competencies that employers define as necessary for success in the workplace would be a step in the right direction.

Skill competencies represent the knowledge, skills and abilities that must be mastered to enter a particular career/occupation. Industrial skill standards allows employers to agree on the key competencies across the industry, and define performance measures that indicate desired performance. Skill standards also provides a common language between educators and business personnel which can help create curriculum integration and instructional improvements. Additionally, standards give employers the opportunity to assess potential employees skills in an unbiased, uniform manner, and provide students with strong academic credentials as well as portable and certified skills.

For example, the retail skill standards for professional sales associates, recognized throughout the retail industry, are being used by Prologue Alternative High School in the Uptown community of Chicago.

The Food Academy Connecting Education to Technology at Harper High School in Chicago utilizes the curriculum and the skill standards developed by the Illinois Restaurant Association (IRA). The IRA provides skill certification for students successfully completing this program which is approved and sanctioned by the National Restaurant Associations.

Education is much too important to be left solely to educators. Only an eclectic full partnership approach can bring industry-driven skill standards, integrated curriculum and work-based learning opportunities:

• Establish an ongoing, open and honest dialogue with educators at all levels by serving on governing and advisory boards.
• Participate in curriculum development, skill standards testing and certification.
• Support programs that expose all students to the world of work by creating new opportunities for work-based learning, internships, apprenticeships, mentorships, cooperative education, tech prep and vocational education.
• Use students’ transcripts, grades, courses taken, absenteeism, tardiness, suspensions and other records in the hiring process to promote higher academic standards across curricula.
• Support teacher training and development that incorporates mastery of content as well as its application.
• Ensure that teachers and counselors are knowledgeable about the skills of the emerging workplace by bringing educators into the workplace for internships and professional training.
•Employers and professional associations must be engaged throughout the entire process: from defining the program, shaping the solution and strategies for implementation, certification, performance- based assessment and evaluation. The benefits for employers developing, implementing and assessing skills standards and work-based learning programs, include but are not limited to:
• Personnel recruitment advantages -- attracting and retaining highly skilled employees.
• Expansion of the pool of highly skilled, trained and diverse entry level workforce.
• Reduction in recruitment and training costs for new employees.
• Fostering of positive employee relationships--improving employee moral, productivity and reducing turnover costs.
• Allowing employees to interact with students, teachers and faculty.
• Fostering of positive customer relationships and long-term loyalty.
• Fostering of positive corporate image as good corporate citizens.

Leslie Block, Ph.D. is Founder and President of Leslie S. Block and Associates. Dr. Block has more than 23 years experience in providing advice and action steps on a variety of workforce development strategies to bridge the void between education and the workplace; designing and implementing strategic corporate alliances, education-business collaborations, education- to-career partnerships, and alternative marketing technologies that have reduced employees' recruitment, training and turnover costs while increasing corporate visibility. His clients include a wide range of businesses, industries, professional associations, educational entities, non-profit agencies and governmental organizations throughout the U.S. and abroad. He can be reached at 847/675-2937 or at LBlock1@aol.com.

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Business owners trying to keep their companies competitive are facing the worst labor shortage in 20 years. The unemployment rate in Illinois fell to 3.9 percent in May, the first time since 1974 that the state's jobless rate has dropped below 4 percent. It is becoming increasingly difficult to find and retain qualified workers in many sectors of the service industry, as well as in many professional fields. So today's employment market belongs to the sellers, and these sellers tend to expect more than a competitive salary. They also want a solid employee benefits package and the opportunity for professional development and growth.

In theory, the answer to attracting and keeping the best employees is simple: "Give them what they want." But "giving it to them" is not always easy, especially for small and medium-sized businesses.

Statistics from the Small Business Administration show that small businesses -- generally defined as those with less than 500 employees -- are at a distinct disadvantage to larger businesses when it comes to providing employee benefits. One study revealed that while most large companies provide health insurance for their employees, less than half of small firms do so. And the disparity is even greater with respect to other benefits such as life and disability insurance and retirement plans. To help level the playing field in the employee benefits arena, many small business owners are entering into a service agreement with a Professional Employer Organization (PEO). Unlike temporary employment agencies, PEOs are not in the business of providing personnel. Rather, they serve as an offsite human resources department and co-employer for the existing employees.

By using the combined purchasing power of thousands of employees, PEOs can provide top-notch benefits packages that are competitive with those of Fortune 500 companies. A PEO's benefits package, for example, can include such items as medical, dental and vision care insurance, a 401(k) plan, life and disability insurance, a credit union, an Employee Assistance Plan (EAP), adoption assistance and dependent care spending.

Another important employee benefit is training and education. In a 1998 survey of Generation Xers by the Gallup Organization, 80 percent of respondents said the availability of company-sponsored training programs was a factor in deciding whether to accept a new job or stick with a current one. Top PEOs address this need by providing training courses in such areas as time management, communication skills, customer service, team building and total quality management.

Tight labor market or not, small business owners always face the challenge of finding and retaining quality, high-impact employees. Offering a more comprehensive and enticing employee benefits package is one way to compete more effectively in this vitally important area.

John Valle is a Chicago District Manager for Administaff, Inc. (NYSE: ASF), one of the nation's leading PEOs.

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A recent gathering sponsored by the Illinois Chamber of Commerce drew a turnout of about 60 chamber partners, business leaders and educators who convened to engage in discussions regarding the new Federal School-to-Work Act. The federal government has recently awarded Illinois $54 million to implement its vision of educational reform.

Illinois Chamber representative Larry Smith, Executive Director of the Chamber’s Workforce Development Institute (WDI), delivered a straight-forward presentation outlining the structure and goals of the new initiative that has been in development in Illinois for the past three years under the state's Education-to-Careers (ETC) act. This school-to-work plan, a cooperative effort pooling the resources of the U.S. Department of Education and the U.S. Department of Labor, seeks to educate and implement a combined strategy of workforce education utilizing national, regional and local business leaders, chamber organizations and educators to find efficient and effective avenues for responding to complex workforce and education issues. Its primary aim: encouraging the nation’s youth to participate in paid, work-based educational programs that teach practical workforce skills and career planning.

Finding qualified personnel to meet employers’ demands for a highly skilled and trained workforce is one of the biggest dilemmas facing employers today, according to the National Employer Leadership Council. The Illinois ETC system, a direct result of the national school-to-work program, is a response to a continuous change in the nature of the national labor force over the last 50 years. During this period, industries that traditionally relied on a high proportion of unskilled laborers have undergone dramatic changes and now find themselves relying heavily on highly skilled and trained specialists, especially computer operators and programmers.

Smith pointed out many reasons for the alarming lack of skilled labor in the national workforce. According to the WDI, more than 50% of U.S. employers say they cannot find qualified applicants even for entry level positions.

In the first place, Smith contends, too many students leave school unequipped to perform the jobs of a technologically oriented, competitive economy. Fully 89% of the 13.2 million jobs created in the U.S. in the last decade require post-secondary levels of literacy and math skills, yet only half of the labor force is equipped with these skills. Congressional studies have shown that nearly three-quarters of high school students enter the workforce without pursuing a baccalaureate degree; even more concerning is the substantial number of workers who enter the workforce before completing even a high school education.

Compounding the problem is the fact that youth unemployment rates are high while wages are low and further, that the U.S. lacks a comprehensive system of workforce development combining the talents and efforts of business leaders, educators and administrators to combat this situation. This is where ETC steps in, according to Smith -- to provide students practical, context-based education and experience, thereby allowing them to make informed choices about their future employment goals.

The overall purpose of the act, as outlined by Smith, is to create a national system that functions as a framework for education reform while simultaneously integrating pre-existing federal programs created to help the nation's young people to prepare for the future by utilizing workplaces as hands-on learning environments where they will be assisted in attaining academic as well as occupational standards. It also seeks to promote the formation of partnerships at the local and state levels, encourage all youth to stay in school and build on existing successes such as Tech Prep.

On a one-to-one basis, each student develops career awareness through the combination of school-based learning and work-based learning, with activities to integrate the two. The schoolbased learning system includes instruction in academics, workplace skills and technical skills. All students will have the opportunity to achieve high academic standards while also being counseled in transitioning to post-secondary educational programs.

The work-based learning portion of the process provides the student with a highly trained, paid, industry representative from local businesses who acts as a mentor and supervisor. The mentor, or meister, incorporates an instructional program that provides training in general workplace skills, skills relevant to a specific industry, and all aspects of that industry, taught in a progressive, practical manner.

Smith also pointed to the increasing importance of the role that local business and industry can play in the development of students through the Education-to-Careers initiative. They can provide students with internship and job shadowing experiences to enable them to discover first hand the relationship between theoretic education and the workforce environment. This will also expose them to careers that they may have been unaware of, while at the same time giving them valuable workplace and real-world communication skills. Businesses can also offer to provide industry specialists to teach classes at local schools, attend career days, host field trips and encourage cominunity leaders and school boards to push for educational reform.

Smith says the process doesn't stop there, however, acknowledging that the role of parents is of fundamental importance in encouraging students to set realistic and rational career goals based on a combination of their own real-life experiences and the new opportunities made available to them through ETC.

The direct impact of the plan for businesses will be felt in terms of training cost reductions, especially in the case of older employees making lateral transitions within the industry. Smith also believes that the initiative improves employee relationships and morale, while providing mentors and trainers with valuable management skill and experience. Furthermore, it fosters a greater understanding of business expectations among new employees that have participated in the process.

Some concern was voiced regarding a possible decline in the reduction or ‘watering down’ of standards as employers seek a quick-fix solution to long-term labor shortages. Smith countered that, "(ETC) has just the opposite effect, by raising standards through higher incentives and the integration of workplace and technical skills." He also was quick to point out that ETC

aids in facing another important challenge -- that of identifying specific, industry-related skill strengths in students at an early stage in their career development. ETC accomplishes this by administering specialized tests and incorporating periodic progress reviews and evaluations.

U.S. Chamber of Commerce representative Michelle Griffin also made a brief presentation to outline the progress of initiatives at the federal level and to further clarify the nature of the relationship between the U.S. Chamber of Commerce (USCC) and its state and regional partnership.

She assured seminar attendees that maintaining the momentum generated at the national level by School-to-Work was, "one of its (USCC) top six priorities." She also highlighted the importance of improving communications between the federal and state chambers regarding the implementation and continuing development of new strategies aimed at creating a systematic change in the way the nation’s young people are educated for tomorrow’s world. For Smith, this systematic change, in the form of ETC, "…is not a program, since a program has a beginning and an end, but a continuous process to provide the components to drive a career and offer a way of life change."

Responses to the presentations varied, but overall bordered on luke-warm at best. Some of the business leaders in attendance took a rather short-sighted approach by adopting a "what’s in it for me now," attitude, seeking immediate tax incentives and other traditional handouts while failing to offer constructive solutions of their own. They somehow overlooked the $54 million that was recently awarded to Illinois, and the fact that the plan was designed as a long-term solution to a long-term need -- specifically, increasing the opportunities for business and educators to create a more highly-skilled and competent labor force at a bargain to the employer. It would seem that businesses could reap long-term rewards from the creation of a young, eager workforce who have been specifically trained by one of their own representatives to perform at positions that are presently filled by uninspired employees making lateral transitions within their industry, full compensation and benefits included.

The official federal response was to chastise regional partnerships for their apparent inability to affix stamps to government surveys and respond to questionnaires in a timely manner. Hopefully, the general mood of the gathering is merely a symptom of the plan’s growing pains. But if not, it would seem that this top-down initiative aimed at generating a grassroots momentum for educational reform with the specific intent to fill holes in the national workforce, though well-structured on paper, may encounter future resistance due to the logistics involved in simultaneously coordinating the efforts of administrators, educators and businesses at the federal, state, and local level.

It is a barrier that must be overcome.

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Like their counterparts across the nation, Illinois businesses and educators are creating partnerships to combat the growing shortage of skilled workers they say will be needed to remain competitive in the global markets of the 21st century.

Called "school-to-work" or "education-to-careers" programs, there are 39 such partnerships throughout the state. Funded by federal grants made available by the National School to Work Opportunities Act of 1994, these programs intervene early in the education process to make students aware of numerous well-paying jobs that may not require a four-year college degree. According to the Washington-based National Center on Education and the Economy (NCEE), only 30 percent of jobs in the next century will require college degrees.

"There has been a lot of data published (about the shortage of skilled workers), and you would have to have your head in the sand not to see what is going on," said Larry Smith, executive director of the Workforce Development Institute (WDI), a division of the Illinois Chamber of Commerce. "The height of insanity is to keep doing what we’ve been doing and expect different results."

Begun last fall with a budget of $223,000 WDI’s mission is to serve as a resource to employers who want to upgrade their workers’ skills and engage in new workforce development.

"From November through January, my job was to familiarize myself with each of the 39 programs," said Smith, who spent 30 years in the manufacturing and industrial sectors before joining WDI.

According to a survey published early this year by the National Association of Manufacturers (NAM) in Freedom, Pa., nearly 9 in 10 of 4,500 manufacturers questioned said they were experiencing a shortage of qualified workers in at least one job category. Sixty-three percent of those responding say employees, in addition to having "serious deficiencies in writing and comprehension skills," also come up short in rudimentary job skills such as reporting on time for work and staying on the job all day. Nearly all those responding say they provide some education or training to their hourly workers.

These shortcomings do not bode well for a nation where, for example, the number of computer-related jobs are expected to double by 2006.

"This (problem) has become in many places an impediment to economic and corporate growth," said Tim Barnicle, director of the NCEE’s Workforce Development Program. "Are we doing a good job of predicting what our needs will be and training people for those openings? No we are not, and we have to do much better."

WDI’s Smith cited statistics showing that in the East North Central Region that includes Illinois, the gross domestic product index grew 3.6 percent in 1997; in January, that figure was projected to fall this year to 2.7 percent.

"That decrease would reflect a severe shortage of skilled workers, and that is pretty sad considering that the economy is doing well," said Smith.

So what went wrong and why?

Smith believes that schools and businesses must share the blame for this nation’s lack of skilled workers because the former have held on to outdated teaching methods that were sufficient for preparing workers for an earlier factory environment, while companies have been reluctant to allow educators inside their businesses.

"The classroom of the ‘90s looks like the classroom of the ‘40s," Smith said. "You have a teacher who acts much like the plant boss of years ago that provided direction for all the workers. Today, factories are run by teams of employees at all levels. On the other hand, the business community hasn’t adequately defined what their requirements would be for the future.

"We (businesses) have been excellent at throwing stones and have expected education to handle everything, but the issues have become too big to be handled by schools alone," he said. In addition to students having to pass through education systems that regularly practice grade inflation and engage in "social promotions," they now bring to the classroom problems stemming from drug abuse, violent behavior and the breakdown of the family unit. "We have kids who enter the system unprepared to learn and have to overcome many obstacles."

Whatever inroads the "school-to-work" concept has made, it is hoped that a new federal initiative will make it even more productive.

With the passage this year of the Workforce Investment Act, each of these state-run programs will be brought under a national umbrella to enhance communication and facilitate the distribution of federal funding.

"Think of it as being a supermarket, one-stop shopping," said the NCEE’s Barnicle. All over the country there will be governing boards run by business leaders who will determine what investments should be made."

During the past two years, the Education-to-Careers Partnership in Kankakee and Iroquois counties has been spreading its message of educational advancement and alternative careers to 24,000 area students in kindergarten through 12th grade, plus another 3,000 students in community colleges.

We’re addressing the problem at all levels, said Pam Debono, who coordinates the area’s program in addition to her duties as executive of the area’s Private Industry Council. "Manufacturing is one of our key industry segments, and many of our students, parents and teachers were unaware of what the manufacturing environment is like today. We created an award-winning video that shows what our plants are really like."

Many industry experts attribute the lack of interest in manufacturing jobs to the long held notion that factories resemble those of the past: hot, dirty and unsafe. On the contrary, today’s manufacturing facilities are clean, air-conditioned, much safer and -- most importantly -- heavily dependent on computer technology.

Academic achievement also is emphasized in each of these programs.

"We tell our students that it’s important to keep our ‘tool kit’ up-to-date as they travel through jobs and careers," said Debono. "Learning is a lifelong experience."

Debono added that the program tries to demonstrate how each subject studied can be used on the job.

"For example, we want students to see how algebra can be applied to the manufacturing process."

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Interim Technology, The Consulting Group in Chicagoland recently dug up some interesting facts on today’s workforce. According to Susan Horton, Interim’s national recruiting director, a company survey reveals that the emerging employee is more apt to make things happen on his own, and view change as positive. In 1998, 20 percent of the American workforce belongs in this emerging category; that should rise to 40 percent by 2000 and represent the majority by 2002.

And yet, much of the time, business owners pooh-pooh John Frank’s grand vision of the next millennium workforce. Frank, now a principal with Chicago-based Actoras Consulting Group, is also known as the "father of the virtual office" -- he’s the man responsible for reducing IBM’s real estate holdings by 60 percent across the country and, in the early 90s setting nearly 25,000 of its employees out on the pioneer path toward the virtual office. Frank continues to preach the building blocks of his dream:

• Self-employment will be the norm. In the world according to Frank, "I don’t see a whole lot of people actually being employed by anybody." Instead, outside job brokers will replace internal managers, scouring Internet databases to implement teams of self-employed professionals for corporate projects. "These brokers, or enablers, then will be responsible to tear down any barriers inhibiting this project team from getting the job done," he explains.

• Technology equals short work days and long-distance employees. How much faster could you accomplish your work if, instead of typing and preparing contracts, proposals, day-to-day correspondence, they magically appeared in the computer as you speak them? Is your correspondent in Tokyo? Dictate your message and rely on a translation device to convert it to Japanese when he opens his e-mail. Or shove that Swedish document into a Xerox machine to restate it in Spanish. The technologies are available already in crude stages. "Just imagine how that will improve diversity!" says Frank – and open companies’ abilities to recruit global workers sans skyrocketing travel costs.

• State-of-the-art homes will be available for a song. As society takes its work home, it leaves behind chunks of vacant office space and unprofitable rental rates. These 20,000-square-foot floor plates with their cold-chilled computer centers, smart technology, fiber-optic cables and superior sound-proofing are a natural breeding ground for affordable, spacious condominiums wired to the hilt for home businesses. In Frank’s reverie, the residential growth overtaking cornfields today will reverse as the middle-class converges on the cities looking for these bargains.

The ripple effect includes reduced crime rates, a resurgence of appreciation for culture, and overall community involvement. The harried pressure of trying to bring scattered families together for holidays will fade as the need to move for jobs lessens. And business and education will move closer together as "continuous learning" becomes a necessity rather than a euphemism. "Virtual classrooms that ask a 62-year-old-grandmother to interact with a 14-year-old kid close the generation gap and encourage younger people to learn how to think," Frank says. "It improves our quality of life, and ensures America regains and maintains its pre-eminent status as the world’s best."

Scrrreeeettt. Here’s where the average Joe pulls the needle off the record, dismissing it as another unrealistic utopia. But truth be told, cutting-edge Illinois businesses are beginning quietly to embrace and adapt to these changes.

In fact, the job brokering concept is old news at Digital People, a Chicagoland staffing firm that focuses on placing graphic artists and new media professionals with available projects. "Many graphic designers are self-employed, so they register with us and take on our clients’ projects in their down time," explains John Syverson, the company’s area manager.

This wholesale go-between strategy has landed Digital People on the Inc. 500 list for three years in a row, with 80 percent revenue increases every year since 1992. "Our concept is leading to a more self-sufficient work force that can develop skills to make a good living without being confined to one specific job or employer," Syverson points out. "And it gives people a sense of security in themselves – it’s much easier to replace a client than a job."

Charles Hershey took advantage of technology and the self-employment trend to return to Springfield. As president of Hershey Software Solutions, he enjoys the Midwest’s four seasons, the companionship of family and friends, and profits from a Burbank, California client (and former employer to boot) that relies on him to write software for robotics equipment. "As a work force, professionals in my shoes are leading the country toward flexibility," he says. "Obviously, workers can perform tasks under hours and conditions best for them. And employers are flexible in terms of who can work for them. Without this mindset, when I returned from the West Coast, my client would’ve had to hire and train someone else."

Similarly, "cyberagencies" - groups a related notion of independent professionals who hook up via technology to tackle a project - are springing up in the country too, notably in creative arts fields. While none has gathered enough momentum to pierce the business radar charts yet, it’s a sure bet the members are perfecting Internet communications skills against that day. That’s in part why Mike Dreith, associate dean of community service at Lewis & Clark College, already has rolled out college courses and training sessions that capitalize on this future. This semester he introduced a Web-based political science class at the institution: students log in any time, anywhere, download class materials and transmit test materials to the professor. Chat rooms allow them to apply their understanding of the material.

"The content we teach in an academic program will probably be useless in two or three years," Dreith admits. "So the best thing you can teach someone is how to learn. We need to show people how to work in teams, if not around a table, at least through a computer program." Business is following at its heels: According to this dean’s doctorate studies, it was unthought of a year ago to conduct corporate training in anything other than straight-backed chairs and with a live instructor. Today his research indicates almost half the Fortune 500 companies have started offering corporate training on the Internet.

"Interactive videoconference classes are only a cobblestone enroute to Internet groups," Dreith predicts. "We won’t build these cutting-edge $100,000 distance-learning rooms in the future. "And there’s a great opportunity for us to avoid building colleges with bricks and mortar."

Certainly State Farm Insurance agrees with that assessment, formally stating that overcrowded buildings is a valid criteria when evaluating full-time telecommuting candidates for Phase I of its nationwide program. "We’ve been on a building spree for the last few years and that’s slowed down. Telecommuting plays a part," says Terri Brenneman, superintendent of State Farm headquarters’ Work Life Programs division.

However, statistics from commercial real estate firm CB Richard Ellis reveal Frank’s forecasted commercial-to-residential real estate shift is far from a reality. In fact, downtown Chicago’s office market vacancies, with second quarter net absorption of 1.3 million square feet of space, have fallen from 14.9 percent in 1997 to 11.1 percent in 1998. This is the closest it’s brushed to single-digit vacancies since 1988; Class A space in the West Loop is booked nearly solid, with only 4.1 percent available.

"Current management grew up in a different reward system – you received plaques, a corner office, and a private secretary as you moved up the ladder," Frank says. "But customers don’t care about the marble floors, fountains and office furniture. Bricks don’t motivate employees. Stockholders don’t want to invest in them. We have to replace that entire mentality and focus people on creating customer value.

"Still, I’m very optimistic about where our work force is going. It won’t be without its upheavals, but this is not the end of a journey – just more opportunities," he adds.

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Contrary to popular belief, a four-year baccalaureate degree is not a necessity for those with a career in mind. Eight semesters of study at a college or university may expand one's academic and personal horizons, but it no longer guarantees a job. Over the next five years, only 20 to 25% of the projected jobs will require a bachelor's degree, according to Larry Smith Executive Director of Workforce Development at the Illinois Chamber of Commerce, and 75% will require only some post-secondary education, i.e., an associate degree or certificate program.

So, who's meeting the needs of Illinois employers? Who's creating a pool of knowledgeable specialists that satisfies the demand for skilled employees in the fields of technology, manufacturing, and health?

It's the state's network of community colleges. Attuned to the needs of employers in their regions, all Illinois community colleges educate students through accredited two-year degree and certificate programs, apprenticeships, partnerships with local industries, and customized on-the-job instruction. Offering more than 4, 000 occupational degrees and certificates across the state, they prepare students to successfully enter the workforce through courses of studies that include electronic engineering technology, culinary arts, law enforcement, nursing, computer programming, computer-aided design, dental hygiene, cosmetology, and more.

Working with area employers, they also custom design and implement programs that will help the company's present employees update and strengthen their skills.

Specific job skills aren't the only thing taught; educators help make students employable through classes and seminars, ranging from a day to a semester, that develop problem-solving, communication, information processing, and team-building skills. The colleges offer career counseling and job boards, like Parkland College's "Community Career Center Online," a collaboration with Champaign County Chamber of Commerce. This online job board (www.parkland.cc.il.us/ccc/) features job listings from local employers, career assessments, resume and interview advice, and posted resumes.

"Community colleges are tuned into local employment needs," says Smith. "[The schools develop programs] based on labor markets within their communities. Different community colleges focus on a particular industry in their region."

In Danville, where warehousing and distribution have replaced manufacturing as the largest employer, Danville Area Community College now offers lift-truck training and tractor trailer driving training. At Prairie State College, in Chicago Heights, partnerships with district employers like Ford Motors and steel companies inspired the creation of three-year apprenticeships that meet the companies' needs for welders, millworkers, machinists, and heating specialists.

It is each community college's mandate to investigate the needs of area employers before they institute an occupational training program.

"Every district does regular market analysis," says Lynn Burger, Illinois Community College System's Workforce Director. "We work with local businesses to determine the labor market demand. We are market driven and look for assurance that students will have jobs when they complete the programs."

The colleges consider Department of Labor statistics, the needs of their districts and students, and watch employment trends, vigilantly. It's their responsibility to know what's hot and what's not. Burger says health care is a field that's growing as a larger percentage of the population ages. She notes that manufacturing may not show a lot of growth, but that an incredible number of retirements loom on the horizon. As men and women retire, manufacturers will need skilled people to take their place.

Colleges look at surveys done by the American Association of Community Colleges (AACC), as well. A recent survey completed by the association predicts that the fastest growing occupations by the year 2005 will be in personal and home care aides, system analysts, computer engineers, physical therapist aides, electronic pagination systems workers, occupational therapy assistants, and physical therapists. The growth rates for these occupations range from 80% to 119%.

"The overriding trend we see is in information technology," says Norma Kent, Communications Director for AACC. "This is a need across the board. Research shows that one-half million information technology employees will be needed. Community colleges are working very hard to turn out employees, but the demand is still greater than the supply."

Kent says that companies, actively seeking employees, are contributing to the nation's educational cause. Microsoft, over the next five years, will donate $7 million to community colleges to strengthen and expand informational technology education and training programs. Lucent Technologies will give $3 million to set up manufacturing and industrial courses of study. Instead of money, Miller Brewing Company has set up a Tools for Success program; Miller outfits graduates with technical degrees or certificates with the tools they will need to ply their trade.

Community colleges tabulate their own surveys to determine local needs. They seek approval of a proposed program through the Illinois Community College System. Once the program is in place, an advisory committee oversees it, making sure courses and materials are kept up-to-date. A dental hygienist degree program is overseen by an advisory committee made up of dentists and other dental-health professionals; industrialists, journeymen, and engineers oversee a college's manufacturing certification program.

At Elgin Community College (ECC), Susan Moylan customizes programs for companies that are held on campus or at business sites. Last year ECC's Business and Training Center worked with 109 companies and offered 369 classes in management, technical, computer, and basic skills that served 5,003 people.

"We listen to the companies in our district," says Moylan, "and we format our response to their needs with programs".

"Two of the greatest employer needs in the Elgin area are for quality specialists in production and management and teaching employees English as a secondlanguage. So, in addition to offering certification and two-year degrees in subjects ranging from machine-tooling to restaurant management, Elgin Community College takes its classes on the road, offering specialized programs on-site at area companies.

For traditional and non-traditional students alike, community colleges offer a variety of associate degrees and certificates. Fifty percent of the students enrolled in Illinois Community Colleges plan to continue their education at a four-year college. Articulation agreements with university systems and private colleges guarantee that all. credits from specific two-year programs will transfer and be counted towards a bachelor's degree.

Sheila Lewis, Dean of Business, Health, and Technology at Prairie State College, says that students who complete the two-year degree in electronic engineering technology can either find immediate employment or attend Purdue University and get a bachelor's degree.

The advantages of articulation degrees are twofold: Students who choose to enter the job market with an associate's degree have the option of completing their four-year degree while they're employed, often at their employer's expense. Employers benefit from constantly replenished labor pools.

Partnerships with local businesses and communities deliver remarkable results. In Galesburg, an alliance between industrialists and Carl Sandburg College will result in a distinguished learning center.

At the request of, and with financial support from area industrialists, Carl Sandburg College along with the Galesburg Area Chamber of Commerce and the Galesburg Business Technology Center recently broke ground for The Center of Manufacturing Excellence, which will open sometime next summer. The center will stress academic, training, business assistance, and economic development programs that meet the needs of local industries such as Caterpillar, John Deere, and Maytag. The Center will offer a two-year degree in manufacturing sciences, certificates in welding, drafting, electricity, CAD systems, and machine control, customized courses for businesses, vocational training for secondary students, and demonstrations of the newest manufacturing equipment.

As with all Illinois state community colleges, Carl Sandburg is a one-stop source for local employers. Whether it's skilled employees or customized instruction for existing staff, companies need only look as far as their community colleges for the resources to make their businesses grow and prosper.

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Anumber of readers responded to our Workforce Survey in the July/August issue. Here are the results. (Note: not all respondents answered all questions, and some questions allowed for multiple responses).

Based on those who did complete the optional section providing company name, location and number of employees, respondents included employers from all over the state, employing from three to 865 people, in a wide range of industries from retail to manufacturing.

Over a third of respondents - 35 percent - estimated their company’s training/development investment to be under $50,000 annually; 20 percent at $50-$250,000; and five percent at $250,000 to more than $1,000,000.

According to the survey, most companies do offer or require employees to undergo regular/periodic training in skills development, technology, communications, management, job safety, team building, sales and more. Ten percent said all of their employees do so; 40 percent reported that more than half their workforce undergo training, another 40 percent less than half.

Nearly all survey respondents whose employees undergo regular or periodic training provide that training both in-house and using outside sources, with a majority reporting that in-house departments accounted for 70-85 percent of training. Ten percent said they relied almost exclusively on outside training sources.

Three-quarters of respondents offer tuition reimbursement primarily for continuing education related to their current jobs (60%); continuing education related to possible future advancement (38%); skills development (35%); technology (23%); baccalaureate and post-graduate degrees (20%); and GED/high school equivalency certification (12%). A few also offered tuition reimbursement for ESL (English as a Second Language) courses.

As related in this issue’s stories regarding both today’s and tomorrow’s workforce - and indicated by the survey’s results - Illinois employers are not finding the workers they need now, nor those they anticipate they will need in the future. Well over half of respondents (60%) said they "rarely" or "never" find enough qualified applicants for the jobs they need to fill. However, a little over a third (36 percent) do report they "always" or "frequently" get the applicants they need.

All but 10 percent of respondents anticipate a shortage of qualified job applicants in the future (six months to five years) and half related that they cannot find the employees they need today. Positions most difficult to fill: skilled laborers (33%); technical/MIS (28%); office/clerical (25%); engineers (23%); unskilled laborers (18%); sales and financial/accounting (15%); retail/customer service and upper-level management (13%); warehouse/inventory, human resources, and marketing/promotions (8%). Difficulty finding supervisory personnel in the manufacturing sector, and health care professionals and technicians, were also noted.

All respondents reported that job applicants and/or new hires were lacking in one or more necessary job skills. One alarming result of the survey was in the 45 percent of respondents who cited a lack of basic literacy and math skills, as well as lack of knowledge of their respective fields. Not surprisingly, 45 percent also noted that most prospective employees don’t have the technical skills they need to perform the jobs for which they are applying; 30% said employees didn’t understand their job responsibilities; 25% indicated lack of communication skills; 18% lacked social skills and working with people. Others noted: many prospective employees did not know how to dress for the job; have no work ethic; lack ambition.

While many respondents commented that the Illinois Chamber and/or schools should become more involved in business/education partnerships, fully 60% - including those respondents - indicated they are not involved in any such programs.

Interestingly, a large percentage of respondents (45%) believe the ultimate responsibility for training tomorrow’s workforce lies with public and private elementary/secondary schools - which may correspond to the equally high percentage of respondents who reported a lack of basic reading, writing and math skills. More than a third feel the private business sector and/or a company’s own training and development department should take on the task itself; a third said colleges and universities should shoulder more responsibility (this was also indicated in the written comments - see below); and 25% indicated more help is needed from local, state and federal agencies.

The statistical results of the survey are reflected in written comments offered by several respondents:

• "{Advanced educational institutions} need to better prepare a workforce in communication and job preparedness. Employees often don’t understand basics such as coming to work prepared, on time and each day. Need more emphasis in both secondary and technical schools on basic work habits."

• "Higher education institutions should convey a positive attitude toward the private {business} sector and concentrate on students from in-state vs. foreign recruitment. The colleges should retain a higher entrance standard vs. lowering it to help those who haven’t helped themselves."

• "Prepare students better for the ‘real’ world."

• "As we become more of a service society, people need to be trained to provide good service."

• "Make sure these kids can read and write and do basic math."

• "I’m so frustrated with the complete breakdown of work values. We need to reach out to teens at an earlier age to get them involved, motivated."

• "Colleges need to work more closely with industry."

• "More relevant course work {at the college level}."

• "Lack of emphasis on CAD (computer automated drafting) - great shortages."

• "The private business sector needs to get more involved in development of colleges’ and universities’ curriculum. . . I would like to see more college-to-work programs to help provide a trained workforce. I would like to see the Illinois Chamber promote these programs more and provide more information about their development and implementation."

• "Colleges need more proactive integration with business partners {such as the program} at McHenry County College - representatives from as far away as Iowa and New York have come to study this successful program."

• "We need more trade/vocational schools."

• "Colleges should send interns to smaller companies to gain basic business skills such as cash flow management and crisis management."

Respondents had several ideas on how the Illinois Chamber can promote workforce development:

• "Emphasis on education so as not to promote students who don’t have the basic three R’s."

• "Need to target and develop workers in specific manufacturing fields {Illinois’ larger industries}."

• "Promote partnerships between universities and industries. Lobby government to make public schools accountable for basic education of their students."

• "Help small businesses work with schools and governments."

• "Support programs allowing low-income students to enroll at private schools that offer better discipline and education vs. public schools."

• "Highlight effective programs/partnerships betweens schools/colleges and business."

Thanks to all who responded to the survey. If there is a business issue or concern you would like to see surveyed or featured in a future story, send your comments or suggestions to Editor Juli Bridgers, Illinois Business magazine, P.O. Box 354, Bloomingdale IL 60108.

Be sure to fill out the survey in this month’s issue. Not only will your voice be heard, you’ll also be entered in the Illinois Business "Sweepsteaks" drawing and eligible to win gourmet steaks for two!

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