I.  EXECUTIVE SUMMARY                                 

 

INTRODUCTION

During the summer and fall of 2005, America’s Heartland Economic Partnership (AHEP) commissioned a comprehensive Workforce Study to determine and quantify the Quality, Availability and Cost of the workforce asset in the seven county Area Labor Market.  The purpose was to assess the supply and demand of the workforce in the area and to better present its relative position and standing with other labor market areas, the state and the nation and to provide an information tool for economic and workforce development for the area’s growth and jobs.

GENERAL FINDINGS, OPPORTUNITIES AND CHALLENGES

The study shows that America’s Heartland provides a stable, competitive and productive workforce.  When comparing the quality, availability and cost of this workforce asset to other Area Labor Markets, the overall value and competitiveness becomes apparent.  The four components of this study go into considerable detail to quantify the strengths and challenges of this workforce.  The four areas are:

            WORKFORCE PROFILE

            WORKFORCE QUALITY

            WORKFORCE COST

            WORKFORCE AVAILABILITY

While the measurable characteristics such as productivity and cost are highly competitive to other labor markets, the workforce management challenges align closely to those reported for the country as a whole.  Health care costs continue to rise.  The average age of the workforce is rising with the baby- boomers starting to retire.  Meanwhile, companies continue to search for the talent that will give them a competitive edge, while decrying skills shortages in the local candidate marketplace.

With the right employment opportunities, America’s Heartland appears well positioned to attract and retain the talent necessary for growth of its businesses representing local, regional and national markets.  It has several advantages, the first is geographic:  The entire area labor market is rich with history and the scenic beauty of the Ozark landscape makes it an attractive area to live, work and play.  From 2000 to 2004, the population of Lebanon and the seven county ALM has grown at a faster rate than the population of the state of Missouri and the nation.

The second area is Education and Training with the location of two prominent national institutions: the Fort Leonard Wood military installation and the University of Missouri-Rolla.  Fort Leonard Wood is home to the U.S. Army’s Engineer School, Police School and Chemical School, among many others, and offers some of the most advanced technical training in the world.  The University of Missouri-Rolla is rated one of the better Engineering Schools in the nation.  From the recently retired military at Fort Leonard Wood and the new graduates from the University of Missouri-Rolla opportunities for hiring and retaining a skilled workforce abound in the area.  This presents industry and business located in the area first choice of a highly trained and disciplined workforce.  Local business also rates the local elementary and secondary school and community college system as above average.

The three factors among the Recruiting issues which scored favorable with local employers and are generally considered important for recruiting talent and a skilled workforce to an area were: Housing, Taxes and Quality of Life.  These quality and cost-of-living issues are attractive to both people and business.

Finally, the Missouri Quality Jobs Program presents incentives and opportunities for companies considering expansion and new facilities in areas with workforce cost advantages.  With Laclede County having a 29% advantage in average wages to the State of Missouri and 39% advantage to national averages and a goods producing culture, many businesses should find America’s Heartland interesting and attractive.

WORKFORCE PROFILE FINDINGS

·       The population in the 2004 Census estimates for Lebanon is 12,865 and Laclede County is 33,617 for a 5.8% and 3.4% growth rate respectively since the 2000 Census.  This is above the State of Missouri growth rate of 2.8% and compares with the national average of 4.3%.

·      The age distribution for Laclede County, from age 18 to 64, represents   59.2% of the population compared with 61.0% for the State of Missouri and 61.9% for the USA.

·      The population for America’s Heartland seven county Area Labor Market (ALM) is 209,911 with a civilian labor force of 95,569.

·      The population in the seven county ALM grew 5.8% from 2000 to 2004.

·      The employment for Manufacturing in 2004 was 4,622 for 35.0% of the total employment in Laclede County.  This compares to 15.3% for the seven county ALM, 11.9% for the State of Missouri and 11% nationally.

·      America’s Heartland seven county ALM has a Civilian Employment growth of 14.0% from 2000 to 2004 compared to the State of Missouri at .2%.

·      Laclede County had a per capita income of $21,156 in 2003 compared to the State of Missouri at $29,199 and $31,487 for the nation.

·      The average Weekly Wage for Laclede County was $473 in 2004 compared with the State of Missouri at $670 and $779 for the nation.

WORKFORCE QUALITY FINDINGS

·      The average age of the workforce as reported by employers in the AHEP ALM is 38.8 years of age with 7.6 years employment and 12.8 years of education.

·      The absenteeism rate is 3.7% for all employers (42 of 69) with Manufacturers (15 of 21) reporting 3.3%.

·      The turnover rate is 21.5% and compares with the U.S. Department of Labor rate for August 2003 at 19.2%.

·      In the Quality of Labor Characteristics Honesty scored the highest with a rating of 4.01 out 5.0 with Drug Avoidance and Productivity close behind with 3.96 and 3.85 respectively.  Of the 12 characteristics evaluated, Skilled Worker Availability scored the lowest with a 2.64.

·      Of the 86 specific skills listed in nine Skill Category Groups, employers indicated training needs most frequently in the Management/Supervision Category with 240 responses.  Workplace Skills and Technical Skills followed with 143 and 97 responses respectively.

·      Teamwork was the Specific Skill with the most responses followed by Team Leadership, Conflict Resolution, Customer Service, and Problem Solving.  Soft skills were listed more frequently than hard skills.

·      Seventy-eight percent of the firms responding have a formal training program.

·      Seventy-seven percent of the firms responding conduct drug testing either during pre-employment screening or on a random basis.

·      Forty-four percent of the firms indicated it could fill five production level positions with less than 15 applications, while forty-eight percent would require between 16 and 30 applicants and eight percent stating it takes more than 30 applications to fill the five positions.

·      Generally, with few exceptions, the employers from Lebanon, Missouri rated the Quality of Life factors higher as it related to “Recruitment of Talent to the Area” than All Employers from the seven county ALM.

·      Overall, Reference/Background Checks followed by Lack of Basic Skills are the two greatest reasons for applicant rejections.  Lack of Specific Position Skills and Lack of Experience were rated the third and fourth reasons for applicant rejections.

·      In the labor shortage area, overall, the Unskilled category was listed as the most serious followed by the Skilled and Managerial/Professional areas.

·      The major reasons for leaving a job as listed by employers were Higher Paying Jobs, followed by Leaving the Area and Personal and Family Conflicts.

·      Poor Performance was listed as the most serious ongoing employee-related problem with Attendance, Attitude and Conflict and Tension following in the listing.

·      Most employers in America’s Heartland anticipate the employment prospects for the next year to remain steady with more employers projecting an increase than a decrease.

·      The largest area for outsourcing is in Training and Maintenance with no changes anticipated in the near future.  Twenty-one percent of the manufacturers bought some outside components for final assembly of their products.

·      Thirty-four percent of all responding employers indicated they require pre-employment testing while fifty-nine percent of employers with 100 or more employees require pre-employment testing.  Skills testing was the highest followed by Mental Abilities, Integrity and Personality.

·      The greatest barrier to productivity is Recruiting & Retaining Talent with 66.7% of all responding employers.  Both the Manufacturing and Health Care sectors responded in higher percentages than employers overall.

·      Employers responded significantly that labor availability has not delayed nor stopped growth or expansion plans.  Health Care and Manufacturers had greater concerns on growth and expansion.

·      Seventy-two percent of employers responded that health care premiums were the primary reason for rising labor costs.

WORKFORCE COST FINDINGS

·      Eighty-one percent of the firms provide a health insurance plan with two-thirds contributing 75% of the premiums for their employees.  Dependent coverage for health insurance is provided by 32 percent of the firms responding to the survey.

·      Over forty-seven percent of the firms provide some pension plan assistance to employees.

·      Over forty-six percent of the firms provide dental insurance coverage and nineteen percent provide group life insurance coverage for dependents.

·      Seventy percent of the employers provide a 401k plan with 56% of those firms contributing to the plan.

·      Employees are provided an average of 8.1 paid holidays per year, while the national average is 9.3 days.

·      Employers provide an estimated average dollar contribution for benefits as a percentage of total compensation at 25.3 percent.

·      The overall average wage for the AHEP seven county ALM is $10.98 and compares to the 2004 average hourly wage of USA $18.00; Missouri $16.57; Chicago Metro $19.66; Los Angeles Metro $19.83 and Boston Metro $23.50.

·      The hourly wage rates for all of the reported 47 Occupation positions compare highly favorable with state and national averages.

WORKFORCE AVAILABILITY FINDINGS

·      About 29% of the total population in the AHEP seven county ALM (or 60,244 persons) is considered to be part of the available workforce. 

·      Of the Available Workforce, it is estimated that 6,870 not-employed and 17,756 employed persons are seeking new employment, while 35,598 employed persons would consider different employment options for the right employment opportunities.

·      The AHEP ALM Occupation Category has an Available Workforce 15.7% in the Professional/Technical category, 27.5% in the Manufacturing/Production category and 45.4% in the Services category.

·      Approximately 29,148 individuals (48.4% of the Available Workforce) are underemployed.

·      Forty-one percent of the Available Workforce would be interested in employment with a wage of up to $12.99 per hour.  The average desired wage rate for Professional/Technical is $13.51, Manufacturing/Production $11.89, Services $11.22 and Working Students $13.46.

·      The education level of the Available Workforce shows 43.1% having at least some college education.  90.6% have at least a high school diploma.

·      49,021 or (81.4%) of the Available Workforce would travel more than 15 minutes/miles, one way for work, while 25,113 or 41.7% would commute more than 30 minutes/miles and 5,902 or (9.8%) would travel more than 60 minutes/miles.

·      23,427 or (38.9%) of the Available Workforce are under the age of 40.  The average age of the Available Workforce in the Professional/Technical is 46.2, Manufacturing/Production 43.4, Services 40.5 and Working Students at 31.5.  Working Students is not a separate category but is included in all the occupations.  The overall average age of the Available Workforce is 43.9.

·      The top motivator for changing jobs among those open for the right opportunities is Salary with 88.2% responding yes, followed by Retirement with 75% and Flexible Hours at 69.2%.

·      A majority (66% or 39,748 individuals) of the Available Workforce stated they are willing to work outside of their primary field of employment (i.e., manufacturing to the service sector).

CONCLUSION

This Workforce Study presents information for balance from both the Supply and Demand side of local Area Labor Markets.  The study assesses the current environment for existing and new employers on the quality of the workforce, the available labor market for new hires and the cost structure in wages and benefits.  The Workforce Quality is determined from the Employer’s perspective and presents information for the Demand side.  The Workforce Availability is determined from the Workers perspective and provides information for the Supply side.

While considerable information is available at the national level, little information is available at the local level with adequate data to make objective decisions about workforce issues.  Yet it is at the local level where the rubber hits the road and where employers must have a competitive workforce to produce products and services for the local and global marketplace.  While employers are concerned about Overemployment and workers with deficient skills and who are under qualified the worker and community are concerned about Underemployment and workers with jobs who have excess skills and are over qualified for those jobs.  Although the dynamics of the workplace will not change dramatically, employers will continue to recruit the best employees with the best skills for the best value and workers will continue to seek the best jobs with the best compensation package and work environment.  The balance is critical for a competitive local economy with the employer, worker and education all having a major stake in developing this productive workforce.