Developing Iowa's Talent Pipeline

With a 12-month average job opening rate of 5.37%, Iowa ranks 44th on WalletHub’s compilation of states struggling the most in hiring, but leaders at the forefront of developing the state’s talent pipeline aren’t letting up.

The five most workforce-challenged states — Alaska, Montana, South Carolina, New Mexico and Colorado — in April had 12-month job opening rates ranging from 6.6 to 7.41%. Iowa’s robust workforce toolbox, including work-based learning legislation, apprenticeships, partnerships between schools, community college and industry, and leadership from business groups including ABI, may be one reason for the state’s better showing.

Whatever the ranking, Iowa employers are feeling the effects of a “national workforce shortage,” says Meg Schneider, Vice President Strategic Initiatives and Member Engagement for ABI. “It’s a little compounded by the fact this is an exciting time in manufacturing. Manufacturing has grown since the pandemic.”

IWD Survey Highlights Challenges

Challenges the state’s manufacturers and other employers face filling job openings are highlighted in the results of the Iowa Workforce Development’s 2023 Needs Assessment Survey. In responses to the survey, conducted fall 2022 through spring 2023, 64.8% of employers cited problems hiring qualified candidates, 58.4% noted a general lack of applicants and 28.1% named “turnover/ attrition” as a major challenge.

More than 95% of employers noted a lack of soft skills like dependability, honesty, communication and time management among applicants. Sixty-five percent indicated a lack of hard skills like critical thinking, data analysis and computer literacy and 20.8% indicated lack of basic skills such as literacy, numeracy and the ability to locate and read information.

The top three specific skills lacking, according to the survey, were a strong work ethic, dependability and attention to detail. Top reasons cited for rejecting applicants were failure to show for interviews, lack of experience, attitude and “does not meet education or training requirements.”

Most common employer responses to those challenges, according to IWD, are raising pay (51.9%), expanding current employees’ responsibilities and duties (41.5%) and hiring less qualified applicants (40%). Iowa educators and businesses are aggressively pursuing other ways to match employers with workers to fill vital jobs and provide more career opportunities. Those approaches center on educating students about career opportunities, assessing their interests and aptitudes and providing skill-development and work experience while they are still in high school.

ABI Foundation, Community Colleges Promote Partnerships

The ABI Foundation has longstanding programs and a newer one to connect students with manufacturing careers. A 40-year-old program, Business Horizons gives high school students the opportunity to create businesses and work in teams to solve real problems, Ms. Schneider says. Leadership Iowa University focuses on college-age students, helping them make connections with employers as they head into workforce.

Most timely is the foundation’s Elevate Advanced Manufacturing, a statewide marketing initiative promoting careers and educational pathways in advanced manufacturing. The program starts with building a positive perception of manufacturing careers while addressing misconceptions of work environment, safety and wages, she says. “There are high-tech, good paying jobs at leading edge of the manufacturing revolution and great career paths in high school that can be started right away.”

Iowa’s community colleges are another key player, serving employers and current and prospective employees. “We know that 40% of all high school graduates are not going on to college, but directly into the workforce,” says Robert Denson, president of Des Moines Area Community College. “We are actively reaching out to any student not moving on after high school graduation, trying to give them an opportunity for training, some opportunity for a short-term certificate, so they can get the best possible job somewhere in State of Iowa.

“We are very aligned to the needs of our businesses in real time. We work closely with high schools offering concurrent enrollment with high school classes. It’s not uncommon for students to come out of high school with one year of college, often with two years,” he says.

“We know that over half of high school juniors and seniors are working part time in high school. They are not only getting good training, but they get to see what it’s like to be in the workforce. Companies get the opportunity to develop students into future employees. That’s true at all community colleges,” Mr. Denson says.

Close communication with local businesses allows DMACC to help high school and college students get into registered apprenticeships and formal and informal internships. DMACC high school or college students have the best outcomes if their employer is one of many that partner with the college, “so that if they have to work, they are working at one of the good companies in central Iowa,” he says.

Under the Iowa Learns™ program developed Developing Iowa’s Talent Pipeline State leaders focus on giving students work-based learning experiences A Custom Publication for ABI Aug. 12, 2024 17 jointly by DMACC and Accumold, high school students can work part-time as tool and die makers at the Ankeny manufacturer, earn good pay, take concurrent classes at DMACC and leave high school with a certificate recognizing what they learned, Mr. Denson says.

He notes that the state offers “great incentives,” including the Future Ready Iowa Last-Dollar Scholarship Program focused on 60 high-demand fields. After using up Pell grants and other scholarships, “before students take loans to pay tuition, the state will step in and pay that tuition for them.” In last two years, 2,886 students drew down $7.2 million under the program.

“It all works best when business and college reach out as community partners,” says Mr. Denson. “They (students) are going to work somewhere so let’s get them in a company that works toward their future academic goals.”

Four-Year-Degree Just One Option

“The talent pipeline is something Kuder has talked about for a long time,” says Connor Harrington, CEO of the Adel-based company that partners with schools, state agencies and national organizations to provide career development solutions through a tech platform. “Not everyone needs a four-year degree. It almost put us out of business eight to nine years ago when the market was saying the opposite. We’re happy with trends after COVID. Folks are saying we should support all students. We are not going to be able to solve the workforce problem with population.”

The key is “finding folks and getting them into the right place,” he says. “The major thing in Iowa is getting access to the future employee. There are a ton of things happening with work-based learning, a ton of research coming out. Businesses are ready to provide those types of experiences. There’s interest from industry. The problem is the ability of the education system to get that content in front of their students.”

For school districts with ample resources, Waukee’s Apex (Aspiring Professional Experience) program is a great example of collaboration between education, business and the community, says Mr. Harrington. Apex pulls in business partners to bring real-world experiences to high school. Students undertake projects that add value to their business partners while exploring career possibilities identified by economic trends in the metro area and state, according to the Apex website.

“We have a bit more to do for school districts that don’t have the same level of resources as a Waukee. We make a scalable solution that works for all school districts,” Mr. Harrington says.

‘We Can’t Forget the Human Connections’

Students are very eager to get in front of future employers and participate in hands-on learning, Mr. Harrington says. “The challenge is finding the right fit. Work-based learning programs are critical around that. We are able to assess students, so students can see opportunities that map to their results. We won’t be sending students that aren’t a direct fit ... Industry wants to be sure students are a good fit.”

Mr. Harrington says today’s young people are “the most informed generation. They are able to do more research, to be aware of what’s to come. They are not so good at self-reflection. They need intervention and mentorship to help them in the right direction.”

Kuder focuses on supporting direct intervention. “We need to make sure that’s not forgotten. With all the tech, all the awareness and programs, we can’t forget the human connections,” he says, adding that adults seeking to improve their job skills and make career changes need person-to-person support as well.

DMACC’s Mr. Denson and ABI’s Ms. Schneider concur on the importance of supporting adults seeking to improve their skills or re-enter the workforce.

“If anyone needs to improve their career, they are likely to need additional training. If you don’t know what else to do, call your local community college and ask for an advisor,” says Mr. Denson.

“We’re looking at not just students but those actively in the workplace. What does it look like to re-engage people? A large number are not involved in employment, education or training. We’re tapping into that workforce and inviting them back in,” says Ms. Schneider.

“The unbelievably good news is that there are a lot of great jobs in Iowa,” adds Mr. Denson. “Good companies with good pay and great benefits, recognize more than ever the value of hard-working Iowans that come to work for them. The pandemic had a big effect. Iowa community colleges are increasing enrollment post-pandemic right in time to train for these good jobs.” ABI