Artifact Summary – Does Creating Sector Partnerships Impact Workforce Development in Rural Regions?
The artifact presented for this program outcome is a proposal written for course OL 615 – Critical Thinking & Research. The program outcome my presented work represents is outcome number 7 “Conduct research and communicate results successfully.” (Saint Mary’s University of Minnesota, 2018). One of the course objectives this presentation addressed was “Create a research design and protocol for a research question.” (Saint Mary’s University of Minnesota, 2018). The artifact presented, Does Creating Sector Partnerships Impact Workforce Development in Rural Regions? is a literature review.
Workforce development is a hot topic. Many organizations are struggling to find qualified, hard-working employees for their open positions. When an organization is in a rural area, the challenge becomes even more significant. The literature review highlights one suggestion for organizations to build their workforce in their region which is to develop partnerships between industry stakeholders and education. The sector partnership approach has been adopted over several areas of the country and has shown measurable successes. There are definite advantages to creating partnerships between industry and education. As a leader, I plan to introduce this concept to the organization I work with as an added benefit to a talent management plan.
The artifact is presented after the summary reference page.
References
Saint Mary’s University of Minnesota. (2018, July). 2018-2019 SGPP catalog & student handbook, Organizational Leadership, M.A. Retrieved from http://catalog.smumn.edu/index.php
Does Creating Sector Partnerships Impact Workforce Development in Rural Regions?
A Review of the Literature
Laura Englander
Saint Mary’s University of Minnesota
Schools of Graduate & Professional Programs
OL 615 – Leadership and Ethics
Jena Klein
April 16, 2017
Abstract
Employers throughout the United States commonly report that there are challenges in finding employees with the skills needed to perform a given job. This lack of properly skilled workers can greatly affect the growth potential and profitability of companies. Additionally, the education that students receive before they enter the workforce is often not aligned with what the local industry needs. When businesses are located in or near a rural region, the challenge becomes even more complex. Forming a sector partnership with businesses that have similar competencies may be an effective way to engage education and solve workforce challenges interdependently.
Does Creating Sector Partnerships Impact Workforce Development in Rural Regions?
A Review of the Literature
Workforce readiness is a common challenge throughout the United States. Even more, employers often report that the pool of workers, in general, is shrinking, and the workforce is aging. Most often there is a shortage of employees that can perform the necessary skills industry requires. Many companies are continuing to grow and must adapt to the changing economy. Additionally, many of the jobs are becoming more technologically advanced as automation is introduced into the workforce. By the year 2020, there will be a shortage of up to three million college-educated workers, and industry will need 4.7 million workers with some form of a post-secondary certificate (Woolsey & Groves, 2013, p. 4).
Individual companies have found addressing workforce needs a challenge. One company may not have the resources to tackle hiring needs effectively, or the staff may not be equipped to train employees properly. Employees that are hired often fall short of the required technical skills for the job and lack basic employability skills. Additionally, the company representatives are often too busy to reach out to local schools to discuss the types of skills the applicants coming from those institutions are lacking. Hiring managers would like to see a pool of job candidates with skills that are aligned with the core competencies required for employment.
These challenges become even more pronounced when companies are located in or near a rural region. For the purposes of this essay, rural regions will refer to geographical areas situated at least fifty miles from a major metropolitan area. Many individuals who live in rural areas tend to commute to more populated regions for work. Companies located in rural areas face challenges of growing their native workforce and attracting qualified talent that will stay in the region. Often, a geographical grouping of similar industry types will develop in a region which is known as an industry cluster. The individual companies may decide to work together to solve common workforce and education issues. There have been several studies about industry clusters affecting economic development but not many focusing on workforce development in a rural region. This essay aims to review the current literature and address opportunities for future studies.
Industry Clusters
Industry clusters are present throughout many regions across the country. These clusters of similar company types may be purposefully situated geographically, or they may occur randomly. The clusters can consist of companies having frequent, focused interactions, or others which share only informal lines of communication (Woolsey, 2009, p. 1). Economic development strategies often include research about industry clusters in specific location types such as inner cities (Toussaint-Comeau, Newberger, & Augustine, 2016; Delgado & Zeuli, 2016). Quantitative data can be retrieved from several government sources for economic development studies. For instance, Delgado and Zeuli (2016) retrieved data from “the Initiative for a Competitive Inner City and from the U.S. Cluster Mapping Project” (p. 117). Additionally, research by Michael Porter (1990) has been cited in several studies for his groundbreaking work in understanding industry clusters and their positive impact on economic development (Elkins, Bell, Hartgrove, & Pardue, 2016; Nolan, Morrison, Kumar, Galloway, & Cordes, 2011; Toussaint-Comeau, Newberger & Augustine, 2016).
Creating an industry cluster in a region can emphasize the unique competitive economic advantage of an industry and provide sustainability (Elkins et al., 2016, p. 21). Communities can benefit from increased wages and employment growth when companies that are similar industry types come together to form a cluster (Toussaint-Comeau et al., 2016, p. 175). More start-ups are seen where clusters form, which leads to increased regional innovation and encourages competition locally (Woolsey, 2009, p. 6). Further, by forming sector partnerships within those clusters, the industry can play a proactive role in working with education to develop effective career pathways and identify skills gaps.
More than 25 states have begun implementing or executing sector strategies to address the needs of the skills gap in the workforce (Woolsey & Groves, 2013, p. 4). The Workforce Innovation and Opportunity Act is a federal statute that passed in July 2014 which requires states to support sector partnerships (DeRenzis & Wilson, 2015, p. 3). Additionally, several regions throughout the country have begun creating sector partnerships around the naturally occurring industry clusters. Multiple sub-sectors can occur within an industry cluster. Clearly identifying workforce and training needs can be a challenge with such a broad base of sub-sectors (Woolsey, 2009, p. 7). Creating industry sector partnerships begins to narrow the focus on specific needs thereby encouraging growth and competition (Woolsey, 2009, p. 7).
However, some studies have shown mixed results with industry clusters (Feser, Renski, and Goldstein, 2008). Many of the studies that were not as positive in their findings date over ten years ago. One study by Feser et al., (2008) found that there was not a significant association between industry clusters and job growth (p. 325). However, the data was collected using several sources between 1998 and 2002 in Appalachia in the technology sector. Additionally, the study area consisted of a very large geographical region including 406 counties across several states (Feser et al., 2008, p. 325). The research indicated that companies in an industry cluster did not enhance job growth more than the same type of company in locations without clusters (Feser et al., 2008, p. 342). The potential for biases due to the large data aggregation should be considered and was pointed out by the researchers (Feser et al., 2008).
Sector Partnerships
Creating sector partnerships has been one answer to the challenge of workforce development, attainment, and retainment. A sector partnership is comprised of key stakeholders from similar types of companies and their support services including education, training and community services located in a defined region (Delgado & Zeuli, 2016; Elkins et al., 2016). Sector partnerships convene regularly to strategically align industry and education to address the gaps in workforce skill development (DeRenzis & Wilson, 2015, p. 3). Sector partners have similar goals of preparing the local workforce for regional jobs instead of relying heavily on talent from outside their area (Woolsey & Groves, 2013, p. 4). Further, regional groups of similar companies and their supporting services aim to positively affect their workforce (Woolsey & Groves, 2013, p. 4). Creating sector partnerships within industry clusters can address the distinctive workforce and education needs of a specific industry and region.
Sector partnerships can be at a state or regional level. Regional partnerships may be better able to align specific workforce needs whereas state partnerships address skills needed for industries across the state (DeRenzis & Wilson, 2015, p. 4). States that adopt a sector strategy typically provide at least one of the following supports: (a) funding for regional partnerships, (b) technical assistance with convening or professional development, and (c) program initiatives that promote regional sector partnerships (DeRenzis & Wilson, 2015, p. 4). Regions that take steps to form and promote sector partnerships can benefit greatly from state support. In some cases, granted dollars are used to jump-start a regional effort. The evidence that sector partnerships are effective for both employers and the workforce is growing (Woolsey & Graves, 2013, p. 2).
Several strategies have been reported for creating sector partnerships. One consideration is the geographical location of the industries and their supporting services including schools, community organizations, and supply chain (Woolsey & Graves, 2013; Delgado & Zeuli, 2012). The work of creating an industry sector should be driven by stakeholders of the involved companies. Partnership undertakings can be facilitated by an intermediary who may assist in the behind-the-scenes activities including planning committee meetings and sharing industry news (Elkins et al., 2016; King, 2016). By coming together as a sector, businesses that are most important to the economy of a region can demand a workforce that meets their needs. A sector partnership will typically focus on: (a) analysis of skills needs for the current and future workforce, (b) identification of skills gaps, and (c) convening regularly to implement initiatives (DeRenzis & Wilson, 2015, p. 3). Activities can include identifying career pathways and training programs. Education will play a vital role in sector partnerships as they will need to carry out the demands of industry. The required skills for workers can be relayed to education providers to make sure their teachings are relevant and adequate for local industry.
Overwhelmingly, the current research shows a positive outlook for creating industry sectors out of clusters (DeRenzis & Wilson, 2015; Elkins et al., 2016; King, 2016). Perhaps because of this positive research, many more states and regions have begun to adopt a sector strategy to align better the curriculum being taught in schools with the needs of industry. DeRenzis & Wilson (2015) report that twenty-one states have official state sector partnerships in place (p. 2). Further, states that are implementing regional sector support “ensure that these partnerships are a critical, sustainable, and scalable component of their state’s skills strategy” (DeRenzis & Wilson, 2015, p. 3).
Workforce Development
Sector partnerships succeed when industry and education come together with goals that are mutually beneficial (King, 2016, p. 22). Further, educational pathways aligned with industry demand produce students who begin careers after graduating and give companies the skilled workforce they need (King, 2016, p. 22). An even greater impact can be seen when the local workforce has the needed skills and is appropriately trained to result in a thriving local economy (Elkins et al., 2016, p. 21). Overwhelmingly, the primary reason for companies coming together as a sector is to proactively collaborate with each other and education to develop and retain the regional workforce (DeRenzis & Wilson, 2015; Elkins, 2016; Woolsey, 2009). Woolsey and Groves (2013) reported that people who participated in sector driven career pathways were better paid, more apt to go to work and were more consistent in their performance (p. 5).
More and more individual companies are beginning to understand that finding a qualified workforce to support their plans for growth can be quite challenging. Companies need a pool of qualified workers from which to pick. Often, the skills and training job seekers receive do not align with industry demand (Woolsey & Groves, 2013, p. 4). Further, education should be involved in the forecasting of workforce needs so industry-aligned training and curricula can be developed. Workforce development strategies have been discussed by individual companies, community leaders, education systems and governments throughout the United States. Each of the entities mentioned above agrees that for prosperity and a robust economy in their respective region, the industry must have a qualified pool of workers that can adapt to industry changes (Elkins et al., 2016; King, 2016; Woolsey & Groves, 2013).
Woolsey and Groves (2013) reported that during the nineteen-eighties only a high school diploma was required for roughly seventy-five percent of jobs and now that percentage has dropped considerably (p. 7). The industry is looking for workers with more technical skills. Career and Technical Education (CTE) programs offer career pathways for students which can lead to post-secondary certificates and degrees. Unfortunately, as King (2016) asserts, the CTE programs are not teaching the skills that students need to get jobs in their local industries (p. 19). When CTE programs are aligned with industry, the results are much more positive. Low-skilled workers can receive training to move into better paying middle-skill jobs if appropriate training and support is offered and targets employer needs (Woolsey & Groves, 2013, p. 7).
North Carolina began working closely with its construction industry to address the workforce issues they were having. Industry, education and community partners began working together with the goal of fulfilling the industry demanded workforce needs (King, 2016, p. 22). Their industry partners “arrange field trips, provide materials and supplies, serve as guest speakers and chair” (King, 2016, p. 22) for their state workforce organization. Ninety-four percent of students in their CTE program graduated high school compared to only eighty percent of traditional students (King, 2016, p. 22) during the same time frame.
While studies are starting to emerge more regularly showing success of programs similar to CTE centers, Elkins et al. (2016) noted some drawbacks which included: (a) the challenge for young people to make choices about career paths throughout their education, (b) difficulties bringing business and education together to collaborate on curriculum development, and (c) educational programs outside of standard curriculum can be costly and need a source to pay for those expenses (p. 22). Getting buy-in from education and industry to come together is often led by industry. If there is a large presence of similar companies noticing the same types of skills gaps in workers, they have a powerful message for education. The work to build alignment between education and industry can start by looking at career pathways.
Successful career pathways can be created by forming committees of industry leadership, supporting businesses and education; they will only succeed if an industry is involved (Elkins et al., 2016, p. 25). The middle-skill jobs which are those that do not require a bachelor’s degree but do often require some post-secondary training, are most in-demand throughout the country (DeRenzis & Wilson, 2015, p. 3). Too often, educators and school counselors guide students toward attending a four-year college. Education attainment alone does not provide a good measure of skills needed for jobs (Abel, Gabe, & Stolarick, 2014, p. 501). The employers in sector partnerships can help education providers understand what is needed to fill open positions including the middle-skill jobs (DeRenzis & Wilson, 2015, p.3). Career pathways begin in high school and can include courses that are dual credit. A student can take a dual credit course to receive credit for their high school diploma, and the same class will provide them with college credit or some credential. Dual credit courses are often included in career pathways. By obtaining dual credit and following industry approved career pathways, students can take a qualified sequence of classes that align with industry demand (Woolsey & Groves, 2013, p. 15).
Elkins et al. (2016) presented a case study methodology looking at workforce and education development using industry cluster career pathways. Specifically, industry-driven career pathways and partnerships between education and industry are noted as important to address the skills gap issue (Elkins et al., 2016, p. 22). The methods for aligning education with industry in both South Carolina and Tennesse were compared (Elkins, 2016). Each state has had several successful regional initiatives addressing workforce and education. Tennessee’s chamber of commerce worked with several targeted companies and education to reduce skills gaps (Elkins, 2016, p. 20). Pathways were aligned, and education was engaging students as early as 7th grade in the targeted industry pathways (Elkins, 2016, p. 23). The authors concluded that the collaboration between industry and education was very successful, and the initiatives continue to foster growth and prosperity (Elkins et al., 2016, p. 28).
Even more recent literature asserts that the workforce skills gap can be influenced by the formation of industry and education collaborations (Elkins et al., 2016; King, 2016; Nolan et al., 2011). However, there is evidence that skills gaps are a pervasive issue due to lack of proper training or education for the advancing skills employers demand (Woolsey & Groves, 2013, p. 6). The authors continue to report that filling those jobs can only be accomplished by aligning industry with education to ensure the proper skills are being taught (Woolsey & Groves, 2013, p. 6). The literature in the field emphasizes the need for industry-driven approaches. Toussaint-Comeau et al. (2016) reported on an example of workforce development in Detroit (p. 179). They found that they rely heavily on industry and education to report back to make sure the training provided is “purposeful and industry-driven” (Toussaint-Comeau et al., 2016, p. 179). Creating regional sector partnerships gives individual companies a much stronger voice and the impact on developing workforce strategies with schools is much more powerful.
Rural Region Implications
The literature to this point has shown clear benefits to sector partnerships especially regarding how they can positively influence workforce development. However, there is doubt whether industry driven approaches can be as successful in rural regions (Woolsey, 2009, p. 1). Several factors may affect success including: (a) industry may not be concentrated enough, (b) pool of workers is smaller, (c) fewer education providers, and (c) fewer groups available that could serve as sector intermediary (Woolsey, 2009, p. 1). Also, there is a shortage of qualified, educated workers in rural regions (Abel et al., 2014, p. 513). Finally, many of the jobs in rural regions do not require advanced degrees or highly-technical skills (Abel et al., 2014, p. 513).
Businesses and services situated in one region become connected to other regions which Delgado and Zeuli (2016) posited would positively affect employment growth (p. 117). The Delgado and Zeuli (2016) research focuses on inner cities but does include the outlying regions which are part of the metropolitan statistical area. In some cases, these outlying areas are rural areas which can become positively impacted by their geographic proximity. Delgado and Zeuli (2016) found that an industry cluster based in the inner city will have more growth if it is connected to the out region (p. 117). Additionally, they found an increase in employment growth for those companies belonging to clusters that were connected with surrounding regions (Delgado & Zeuli, 2016, p. 129). Similarly, one impact of industry cluster formation is the spread from workers moving into rural areas and commuting into their urban jobs.
While commuting is a reality for many workers in rural areas, there seems to be a disparity in the level of education attained. Abel et al., (2014) found that there are more workers in urban areas with a college education than rural areas even if the jobs do not require that level of education (p. 500). The authors go on to say that jobs for rural workers are typically low-skill, where urban companies tend to hire people with higher, more technical skills (Abel et al., 2014, p. 511). Further, social skills were not emphasized as important in rural areas (Abel et al., 2012, p. 511). Policies supporting degree or credential attainment for rural workers who are machinists, and other laborers could greatly benefit employees, which would make their skills and education more compatible to a similar worker in an urban setting (Abel et al., 2012, p. 513).
Woolsey (2009) asserted, after researching for her study, that “all regions, including urban and rural, would benefit from better-integrating industry clusters” (p. 2). She went on to say that regions should map out their unique industry clusters and businesses to discover the best way to support regional growth and provide positive outcomes that can be replicated (Woolsey, 2009, p. 2). Rural regions with industry sectors that are unique and concentrated could begin forming sector partnerships and even secure funding from their state if available (Woolsey & Groves, 2013, p. 18). Likewise, policymakers must support rural regions and help them adapt to the global economy as a whole as it evolves by actively assessing rural industry assets and growth patterns (Woolsey, 2009, p. 21).
Conclusion
The literature showed that creating successful sector partnerships has a positive impact on workforce development (DeRenzis & Wilson, 2015; Elkins, 2016; King, 2016; Woolsey, 2009; Woolsey & Groves, 2013). However, more needs to be explored around the effects on the rural population. Research could dive more into how the location of industry clusters in urban areas spills over into rural regions. Research shows sector partnerships can effectively and collaboratively work with education in urban areas (Elkins et al., 2016; King, 2016) but more should be done to identify how to spread that success into rural regions.
Career pathways are an integral part of sector partnership work (DeRenzis, 2015; Elkins et al., 2016; King, 2016). More could be done to measure the effectiveness of programs focusing on pathways. For instance, not enough is known about what happens to students who choose a particular career pathway. Since schools have different benchmarks to show their success and industry has something completely different perhaps the training programs or post-secondary institutions that link schools and industry could develop a reporting system that can be measured and replicated. Sector partnerships can bring industry and education together to create metrics to measure success. When industry and education come together via a sector partnership to address workforce development in rural regions, the local economy, workforce, education system and community can benefit.
References
Abel, J. R., Gabe, T. M., & Stolarick, K. (2014). Skills across the urban-rural hierarchy. Growth & Change, 45(4), 499-517. doi:10.1111/grow.12067
Delgado, M., & Zeuli, K. (2016). Clusters and regional performance. Economic Development Quarterly, 30(2), 117-136. doi:10.1177/0891242416637422
DeRenzis, B., & Wilson, B. (2015). Sector partnership policy. Retrieved from national skills coalition. http://www.nationalskillscoalition.org/resources/publications/file/2015-08-Skills-in-the-States-Sector-Partnership-Policy.pdf
Elkins, S. A., Bell, R. R., Hartgrove, L., & Pardue, S. (2016). Industry cluster pathways: A focused approach to regional workforce development. SAM Advanced Management Journal (07497075), 81(1), 20-33.
Feser, E., Renski, H., & Goldstein, H. (2008). Clusters and economic development outcomes: An analysis of the link between clustering and industry growth. Economic Development Quarterly, 22(4), 324-344. doi:10.1177/0891242408325419
King, A. (2016). The role of industry-education partnerships in creating career pathways. Techniques: Connecting Education & Careers, 91(3), 18-22.
Nolan, C., Morrison, E., Kumar, I., Galloway, H., & Cordes, S. (2011). Linking industry and occupation clusters in regional economic development. Economic Development Quarterly, 25(1), 26-35. doi:10.1177/0891242410386781
Porter, M. E. (1990). The competitive advantage of nations. New York: The Free Press.
Toussaint-Comeau, M., Newberger, R., & Augustine, D. (2016). Inclusive cluster-based development strategies for inner cities. Economic Development Quarterly, 30(2), 171-184. doi:10.1177/0891242416642104
Woolsey, L. (2009). Application of industry cluster-based and sector-focused strategies to rural economies. Retrieved from corporation for a skilled workforce. http://skilledwork.org/wp-content/uploads/2014/01/Sector-focused-Strategies-for-Rural-Economies_Final.pdf
Woolsey, L. & Groves, G. (2013). State sector strategies coming of age: Implications for state workforce policymakers. Retrieved from national governors association. https://www.nga.org/files/live/sites/NGA/files/pdf/2013/1301NGASSSReport.pdf
Laura's Leadership Portfolio 