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David DeLong Writer of Workforce Issues

Chamber of Commerce Skills Gap SolutionsHow can chambers of commerce help their members thrive in an era of critical skill shortages? Here are four practical lessons I shared in keynote talks to big state chamber meetings in Pennsylvania and North Carolina. These insights come from dozens of interviews with executives running a wide variety of companies.

1. Calculate Risks: Short Term vs. Long Term

Skill shortages are both a short & long term problem. Some employers are struggling to fill key roles immediately, like the small bank in Pennsylvania that can’t find a compliance officer or a big tech firm in North Carolina who can’t hire enough technical sales people to support growth.

But savvy CEOs also look longer term at the talent challenges they face.  The GM of a midsize manufacturing firm realizes that half his core group of engineers will retire in the next five years, which is driving the company’s recruiting efforts. Another CEO is unsure if he can hire enough technical talent in his current location to grow the business long term. Don’t let short-term talent risks blind you to longer-term challenges

An executive in a major North Carolina hospitality company explained, “We have to look 3-5 years out at pipeline development. How do we increase the number of people interested in our industry to improve our talent pool?”

2. Customize Solutions: Every State has a Rural Recruiting Problem

Even densely populated states like Pennsylvania, New Jersey and Connecticut face major challenges drawing skilled workers to more rural areas. Progressive workforce development leaders recognize that the rural/urban talent divide is huge and treat geographical regions differently.

Some rural communities have resorted to creative programs to attract workers to the area, offering to help pay off student loans or provide money for home purchases. Employers also have to be much more innovative.

For example, they can invest in job search support for a trailing spouse. This is particularly critical when seeking to promote more women into leadership roles. In another case, a North Carolina manufacturing company located in a rural area tries to maintain strong, positive relationships with all its former employees. This makes it much more likely the firm can bring them back as contractors or consultants.

3. Assume Collaboration is Essential.

Talent shortages are problems for both individual employers and geographic regions. Companies alone can’t solve most of these problems. State and regional chambers of commerce are well suited to help with long-run solutions. Some are taking advantage of creative programs like the U.S. Chamber Foundation’s “Talent Pipeline Management Academy.” This intensive training develops the skills of workforce specialists to facilitate multi-employer collaboratives that tackle regional skill shortages.

Government is also going to be actively involved. Increasingly, states will be competing with heavily promoted workforce development initiatives. For example, North Carolina recently launched NC Job Ready and Pennsylvania has PA smart, both programs designed to enhance the quality of the state’s talent pool. Employers – and chambers – must provide continual feedback on these initiatives and hold government leaders accountable for implementing programs that actually enhance workforce quality.

4. Being Sexier Isn’t the Answer! Focus on What You Control

Working on skills gap solutions across sectors, I’m often asked, “How do we make our industry sexier?” These leaders may be boiler manufacturers, funeral directors (No kidding!), or bankers. Executives in many sectors worry that they can’t compete for talent with hot Internet start-ups, video game makers, entertainment and sports management companies.

Instead of trying to be “sexier,” focus on the culture of your workplace and potential employees’ knowledge about what you actually do and the opportunities you present. Forget changing your industry’s image with the general public. The answer is building a Millennial-friendly culture that helps you recruit and retain younger workers. It also means reaching out to the future talent pool to educate potential candidates about what it’s actually like to work in your business.

A dozen colleges in Pennsylvania, for example, had student teams participating in this year’s Community Bank Case Study Competition. In the process of developing a case study on how local community banks are implementing technology, these undergraduates developed first-hand knowledge of the banking industry and became much more promising candidates for recruiting by local banks.

In North Carolina, a major hospitality company brings local teachers into its resort to show off different career options open to employees. (High school guidance counselors are often overloaded with too many students and only focused on steering them into college.) After these “fam trips,” each teacher is asked to identify five students who might be good candidates to learn more about the company.

Think of four C’s to remember these lessons learned from my state chamber keynotes:

Calculate your talent risks. – Are they primarily short or long term? Skill shortages in both time frames need attention.

Customize initiatives for rural parts of your state tailored to their specific needs?

Collaborate on skills gap solutions with multi-employer initiatives. Does your chamber or workforce group have the know-how to lead these programs?

Control what you or your members can change. Stop wishing you were Google or Apple. Instead of trying to be “sexier,” focus on creating a workplace that employees recognize as a place they can grow and learn.

Contact me to explore more practical ways I can help your organization build tomorrow’s workforce in today’s economy.