WIRED Workforce Study reveals gaps in Metro Denver’s workforce

The Workforce Innovation in Regional Economic Development (WIRED) Initiative – a partnership among workforce development, economic development, education, and industry – today revealed its first Workforce Study, designed to understand the human resource needs of Metro Denver’s fastest-growing industries.

The study not only found that regional employers face a growing need for skilled workers, but also a shrinking pool of qualified candidates. Further, the research discovered a need for technical workers with a broader-than-expected range of skills and a growing number of skilled employees planning to retire. Combined, the information points to an increased urgency for expanding training and educational programs to meet Metro Denver's workforce needs and equip the region’s companies for competition in the global economy.

"We expected to hear loud and clear that Metro Denver employers in growing industries absolutely need highly skilled engineers, technicians, and scientists," said Patty Silverstein, president of Development Research Partners and author of the study commissioned by the Metro Denver WIRED Initiative. "What we didn’t expect was the call for these technical workers to also have solid writing, marketing, leadership, or sales skills. Metro Denver's growing economy now demands well-rounded specialists."

More than 200 companies were surveyed in industries under the WIRED focus – aerospace, bioscience, energy, and information technology. These WIRED industries represent 6,500 businesses and employ 106,000 workers in the region – including Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson, Larimer, and Weld Counties. In addition, the team conducted four focus groups with 25 industry leaders.

Launched in May 2006 with a $15 million, four-year grant from the U.S. Department of Labor, the Metro Denver WIRED Initiative seeks to develop an educated, skilled workforce to fill high-paying jobs in the region's growing industries. Metro Denver is one of 13 initial recipients of the WIRED funds to develop and implement a "transformational" approach to regional economic development.

Categorized as education and training, skills, and hiring, the study's findings revealed several key details that will help the Metro Denver WIRED Initiative identify workforce skills shortages and target the future release of grant funds.

Education and Training

The study revealed disconnect among WIRED businesses, regional educational organizations, and workforce systems. Almost 80 percent of WIRED businesses employ fewer than 10 workers and over one-quarter of respondents have no budget for employee training. Though businesses see the need for participating in programs that collaborate with educational organizations and the workforce system, the increasing complexity and confusion of these programs combined with a lack of industry time and money to devote to them is broadening this gap.

"Small businesses don’t have the staff, the budget, or the capacity for training – they simply cannot afford to lose productivity," said Metro Denver WIRED Initiative Executive Director Ledy Garcia-Eckstein. "Our team will focus on developing innovative solutions to address business needs by growing our own skilled workforce and creating opportunities for Colorado students and workers to obtain the best jobs generated by our regional economy."

Skills

WIRED industry businesses value experience and skills most when evaluating job applicants; and finding candidates with required math, science, and written and verbal communication skills proves the most challenging. Although respondents ranked education below skills and experience, more than two-thirds (67.6 percent) of those companies' current jobs required a bachelor's degree or higher. Analysts were surprised at findings indicating long-term employees had superior technical skills and institutional knowledge, but in many cases lacked the financial, communication, or leadership skills to move into managerial roles.

Hiring

More than half of WIRED businesses currently hire all employees from within the nine-county region. As positions require greater skill and experience, business must often look out-of-state to hire qualified workers. Metro Denver's growing industries need a larger pipeline of skilled workers readily available, according to the survey. Overall, nearly 71 percent of respondents anticipate needing more employees in the next three years. As the baby boomer generation retires, the struggle to find qualified workers will only amplify. Though the majority of respondents expect to see the biggest impact of retirement ten years from now, many businesses are struggling with highly skilled, experienced workers retiring today. For example, in the aerospace industry, close to 20 percent of surveyed businesses expect to feel the greatest impact from retiring workers within the next three years.

"At Lockheed Martin, we have seen the writing on the wall and have been working methodically for some time to promote interest in space among children at an early age," said Joanne Maguire, executive vice president of Lockheed Martin Space Systems. "For the last several years, we have insisted that half of all our new hires be new college graduates."

Metro Denver companies use a variety of methods to reach potential employees, mainly professional networks or paid advertising. More than one-third of all industries surveyed (34.1 percent) said they used word-of-mouth most often to fill jobs, while more than 30 percent said online job sites were most useful.

The Metro Denver WIRED Initiative will use these survey details to develop its next request for grant proposals, expected to be issued in fall 2007. This next round of grants will fund new, innovative initiatives by partnerships that include industry, economic development, educational organizations, and the workforce system. In March 2007, the WIRED Initiative awarded ten "JumpStart" grants totaling $3.7 million to fund existing, successful programs and help them expand to the next level. Awardees included programs that enhance partnerships among business, education, and workforce and that address STEM (science, technology, engineering, and math) education in our schools.