Eroding Organizational Capacity: The “Unstructured, Haphazard and Ad Hoc Process-based Training Effect”

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

If you work long enough for a variety of employers, there is one theme that seems to run common to all – the lack of structure to the all important job-based, process-based training that one would expect. Often we are shown our workstation, introduced to the area manager and then we wait for some guidance and training for what is expected of us. Sometimes we wait in vain. Sometimes we are subjected to bits and pieces of information and take it upon ourselves to make sense of it rather than wait indefinately.

None of our core skill bases and work-based task mastery history are, alone, sufficient enough to substitute for the need to know the best practices for performing the tasks for which the new employer hired us. If an employer hires a new employee not having a structure to quickly transfer job expertise from the incumbent experts to the new-hire, it is fair to say this runs counter to good business practices and economic principals. Yet unstructured, haphazard and ad hoc task training is the norm.

“Only 17% of organizations said they had developed processes to capture institutional memory/organizational knowledge from employees close to retirement, while just 13% said they were providing training to upgrade the skills of older workers.”

IndustryWeek Magazine – Steve Minter

Employers Say Fewer Jobs Require Degrees. What is Their Plan to Make Up The Difference?

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.^®

In an article in HR Dive by Carolyn Crist entitled, “Fewer Job Posts Require Degrees, Though Hiring Hasn’t Caught Up,” the author explained what appears to be a growing shift in hiring practices by employers. Or maybe not.

She explains, “While the intention to hire people without degrees is seemingly growing, hiring practices remain influenced by traditional requirements… Talent acquisition pros appear to be changing their habits, but hiring has not yet caught up to the push to end degree requirements, LinkedIn data says.” Furthermore, few companies feel effective at skill validation.

Hiring based on skills is more difficult than hiring by degree, by far. Hiring by skill requires an accurate understanding of the required prerequisite skills for the job and an accurate way to measure a candidate’s skill base relative to that job classification. It requires “content valid” or “job relevant” hiring criteria that represents today’s version of the job classification, not yesterday’s or yesteryear’s job criteria – something most employers lack. Many employer’s job descriptions alone are grossly behind today’s technological state of operation, and what they have is guaranteed to continually degrade with each passing year. For some, it might even be so extreme that it may produce an Equal Employment Opportunity Commission violation waiting to be discovered.

Large-Scale Worker Training Projects Are Right for Small and Mid-size Employers

by Dr. Dave Just, formally Dean of Corporate and Continuing Education at Community Colleges in MA, OH, PA, SC. Currently President of K&D Consulting 

I spent many years as Director of Corporate and Continuing Education at several community colleges in multiple states. I think back on those years before working with Proactive Technologies when employer engagement was very difficult to achieve, let alone retain. Often it was only possible to get the employer to agree to send a few people to classes, either on site or offsite, if grant money covered the cost. But the scope was limited and the results were often inconclusive.

In the mid-90s, I began to partner with Proactive Technologies on what they called “structured on-the-job training programs” meant to increase each worker’s capacity through accelerating the transfer of expertise from the existing experts to new and cross-training workers. It seemed simple and intuitively I felt something the employer could relate to. Building a training program, and an infrastructure where there was none, that the employer could recognize and has the potential to yield results they can immediately realize seemed like a new concept, but one employers told me they wished for in nearly every meeting.

When we began talking with employers and were able to get them to commit to setting up structured on-the-job training programs for one job, maybe two, as a pilot. Inevitably, employers saw the value and expanded the programs to include other jobs critical to their operation and opened the programs up to more employees for training and cross-training.

It’s Past Time to Be Honest with Students and Workers About the Future of Work in America and America’s Future

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

So much is going into the marketing of “the promise artificial intelligence (AI).” Without the necessary security, protections and guardrails in place, the message can be confusing and overwhelming to say the least. So far, AI seems to be a boom mainly for those who would use it to harm others rather than to help humanity. And those who are financing and benefiting from the imposition of AI on all aspects of life are betting the farm on AI thriving long enough to pull their profits out before it is realized for what it was only meant to be.

Let me be clear up-front, I am not against AI when it is used as defined and confined to the things it is proven to be good at and still in the controlled testing stage. But in this day and age, and with the wealthy and opportunistic investors seeing this as “the next big thing” to increase their wealth, so much in the way of safety, security, practicality, and efficacy is tossed out the window. In fact, changes by this administration have removed even more regulations and oversight, and we the people who are most vulnerable are, as we have been for some time, the guinea pigs.

For decades, the narrative students and workers were hearing was that manufacturing jobs were leaving America and are never coming back. At the same time, we saw that German, Austrian, Swiss, Korean, Japanese, Swedish and many other countries were building manufacturing plants in the US. The predominant pretext for leaving we heard from US employers and politicians was that they “just couldn’t find skilled workers” while manufacturing jobs established here were shipped overseas where there were literally no skilled workers but magically a way was found to make product. Now students and workers are kept guessing over whether job are going to be insourced or near-sourced to a neighboring country, but told if you hurry and change career paths again you might be OK.

Currently, the media binge-feeds on the conflicting messages with every press release on AI development that is lopped onto the market to stoke investor fires. Nothing needs to be fully tested and secure, just rush it to the market before investors lose interest. So many big tech companies have staked their futures and reputation on AI. Daily assessments of jobs that will be lost to AI, of intellectual property that will be illegally misappropriated for someone else’s use and enrichment, project a hallucination that we will all somehow be better off when it is just the narrow few. This movement represents an attempt at a monumental “repurposing” of the worker in a capitalist democracy…without defining or ensuring that purpose.

Read the full July, 2025 Proactive Technologies Report™ newsletter, including linked industry articles and online presentation schedules.

Tracking Documented Worker Capacity and Value Growth

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

It is difficult for any operations manager to justify investments in worker training to the accounting manager. Without empirical evidence, the institutionalized belief by accountants that training is a “cost“ often prevails over common sense improvements in a company‘s workforce. While only familiar with traditional “classroom learning“ with repetitive seat time costs, accounting departments are swift to challenge any attempt to spend money on classes alone, where no tangible correlation between time spent and improvement in performance is credible.

Structured on-the-job training is different. Employers invest in informal, unstructured, and undocumented one-on-one worker training all of the time; all day, every day for every employee. Once an employee is hired, including the brief training for individuals who do not end up staying past probationary period and periods of cross-training, “Bob” is paired up with “Jim” and a mysterious process begins. No training plan, no documentation, very little accounting for real hours of training or outcomes. If there were, accountants would be strong advocates for long overdue changes in worker development strategies.

Nevertheless, informal on-the-job training produces some positive results for some people or products wouldn’t get shipped nor services delivered. But it doesn’t work well, especially for many who could have been great, loyal workers. The process cannot be explained, measured, improved or accounted for – most likely the reason it is accepted as fact but avoided in process improvement discussions. Yet it is the only thing holding most operations together.

Have Advances in Technology Distracted HR From the Fundamentals of Worker Selection and Development?

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.^®

Hundreds of billions of investment dollars are driving the advancements in technology into every corner of our lives, including the selection and development of workers. Predictably, the emphasis often seems more on the technology and the money it can make for investors than the practicality for the end-user or those it effects.

It is not just the refrigerators that talk to your grocery store, or watches that talk to the phone in your pocket. Wall Street, with an accumulating mountain of cash, can drive any idea to fabricate a “trend” that often dissipates as quickly as it emerges, sometimes leaving disruption in the wake but yields a return for investors. For investors it is the means to an end. To many, it may negatively affect their life and their future.

Grow Your Own Craft Technicians Using a “Systems Approach” to Training

by Dr. Dave Just, formally Dean of Corporate and Continuing Education at Community Colleges in MA, OH, PA, SC. Currently President of K&D Consulting 

I have a long history with Proactive Technologies, Inc.^®, partnering with them to help employers in a number of states since 1994. Together we have advocated the use of a “systems approach” to training that includes a combination of related technical instruction and structured on-the-job training to develop multi-craft maintenance technicians, advanced manufacturing workers, management and support classifications. This approach works equally as well with any job classification within an organization and is a viable option to paying tens of thousands of dollars per year to employment recruiters or recruiting efforts to locate these technicians on a nationwide basis…who still need to be trained once hired anyway. Plus, once the investment is made to setup the infrastructure, the employer can train as many workers as needed – with a declining investment per trainee and increasing ROI.

The systems approach to training, if built correctly for the company, forms the infrastructure of a highly effective, low-cost and low-to-no administrative burden apprenticeship (registered or not) model. This model can quickly and cost-effectively produce the workers needed, who will be qualified to perform the tasks required at the employer’s facility (not some conceptual position or a position down the road). Based on detailed job/task analysis, data is collected by Proactive Technologies’ experts using the employer’s existing documentation and internal subject matter experts, who have the final review before the data is used. A complete set of worker development materials and Key Performance Indicator reports are generated by Proactive Technologies’ PROTECH^©® system of managed human resource development™ software for immediate use, updated monthly to keep the program always current, accurate and in sync with the firm’s specifications, standards and requirements. Most importantly, technical support to the project includes project implementation management, so the employer can focus on running their business without adding to, or burdening, existing staff.

Apprenticeships – An Alternative to the “400 Hours For Drill Press” Training Model

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

“Time-in-Job” Does Not Equal ”Tasks Mastered.” It does not reveal much about the level, quality, relevancy and transferability of the “on-the-job training experience.” It is akin to students tests being graded on how long they sat in the classroom. But yet this approach endures. Don’ get me wrong, it is better than no on-the-job training effort. However, I think we all agree that it leaves a lot of opportunity on the table.

An unfortunate hold-over from the traditional U.S. apprenticeship is the standard practice of defining the on-the-job training requirement in terms of “number of hours.” General work areas that are thought of as representative of the job are selected, a number of total hours for each area totaling the on-the-job training requirement are prescribed, and this with the required related technical instruction are registered.

We all know that we have worked, or are now working, next to co-workers who have been in the job classification for many years but for one reason or another seemed to not be able to perform all of the required tasks of the job. Some are called “area specialists,” but may have specialized in only the tasks they like to perform. Some might not have had an opportunity to learn and master certain tasks. When they are asked to train the next worker, their scope is limited to the tasks for which they specialized, and the pattern continues when that new person becomes a trainer later on. When Proactive Technologies sets-up a structured, task-based on-the-job training program and assesses incumbent workers to discover any gaps that might exist so that the on-the-job training can close them, it is common to find some long-time workers in the job classification that may have only mastered 20 or 30% of the total tasks that make up the job classification.

Read the full June, 2025 Proactive Technologies Report^™newsletter, including linked industry articles and online presentation schedules.

Contracting? Expanding? Maximizing? Protect and Grow Your Worker’s Cumulative, Valuable Process-Based Expertise

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

Paraphrased many times and in many ways, the meaning is the same: “If you don’t know where you are going, any road will get you there.” W. Edwards Deming put it more succinctly, “If you can’t describe what you are doing as a process, you don’t what you are doing.”

How often do you hear of an employer critically examining their system of worker selection, development and maximization? Has anyone tried to describe your firm’s strategy for developing new-hires once on board, or developing incumbent workers to something more than a fraction of what everyone expects of them? Does it sometimes seem that all you have to train your workers to be their best once hired is, “Bob, this is Jim. Why don’t you show him around?” Don’t be embarrassed; it is more common than you think.

Has anyone tried to calculate the enormous hidden, but real, cost of unused worker capacity, manifesting itself as hiring too many people when workers you already have hired never had a formal. structured, deliberate development plan? Or how low worker productivity, lower than expected quantity and quality of work, lack of compliance with work processes, quality plans and safety requirements, eats into profits?

For capital investments, on the other hand, textbooks have been written on how to classify them, and how to predict and measure return-on-investment. It is unthinkable for a firm to invest in a $1,000,000 piece of machinery and be satisfied with it putting out 50% less than advertised. Yet, the same principles should apply to the investment in workers. Why would anyone be satisfied with every worker hired only being trained and capable of performing 30-50% of their job?

A “Pay-for-Value” Worker Development Program – Fair to Management and Workers, and Effective Too!

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.^®

A conundrum for many employers – those who are allowed to consider the wage-value relationship in their business strategy – is “what is the right pay rate for work performed.” An often used strategy is to establish a competitive wage range for a job classification based on area surveys of similar job classification in the industry, adjusted for the uniqueness of work requirements for the employer’s job classification. Once hired, an employee progresses through the wage range measured by time in the job classification, in some cases with wage adjustments based on merit. Even if applied consistently, this approach may limit the employer to paying more for labor than the value derived or the opposite, paying too low a wage for what the employer expects a hired worker should be able to perform. Not precisely defining the job classification “tasks of responsibility” and keeping that definition current, works against an employer in every employment case and here is why.

If an employer purchases a new, technologically advanced, piece of machinery that is advertised to increase the output of a process from 100 units per hour to 300 units per hour, the employer would be disappointed if it only received 150 units per hour. That employer would, most likely, challenge the manufacturer and perhaps request a refund if not satisfied.

“How would one determine the proper wage rate for the value derived if there is no effort to hire workers accurately to today’s job needs, train workers to all of the required tasks and measure workers for the work they were hired and trained to perform?”

Pairing Structured On-the-Job Training with Related Technical Instruction Just Makes Sense

by Frank Gibson, CEO of the North-Central Ohio Employer-Based Worker Training Partnership; Workforce Development Advisor, retired from The Ohio State University – Alber Enterprise Center

I have for worked with educational institutions for many years, trying to reach out to employers with the latest and best courses and seminars they had. It is what we did with good intentions, but in many cases this was a difficult sale at best. Their products were often already built…before they precisely knew the needs of the employer. If the employer engaged them for our services, when delivered it was more of an underwhelming experience for the customer than I felt comfortable with. Often it didn’t lead to follow-on work.

An employer’s operation is driven by accounting for the bottom line. Accountants are quick to dismiss core and technical instruction as a “cost.” That is what they were taught in college, and truthfully there is often little evidence that attending a course improves work performance in most cases. Sadly, that level of “job relevance” or content validity was considered less important than the power of the institution’s name that was promoting the products or services.

When I became familiar with Structured On-The-Job Training (SOJT), I appreciated SOJT because SOJT built from the bottom up. The training delivery structure was designed around the actual tasks the employee is expected to master, for which the employer hired the individual in the first place. Structuring the best practices into training delivery so that workers can learn faster how to perform each task and to standardize the delivery between each shift’s trainers and each trainee gets to the company’s bottom line. It is seen as an investment that can be defended to accountants, unlike core and technical instruction.

A Simple, Low-investment Solution to Closing Skill Gaps of New-Hires and Incumbents

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

Proactive Technologies, Inc.^® has worked with many employers over the years, establishing and technically supporting cost-effective, task-based structured on-the-job training programs. For each employer, every effort is made to tailor the worker training system to accommodate the employer’s budget, job classifications (even unique training programs for each job classification in each department), business goals and manage the system through all types of change. Unlike some products or services that require the employer to change practices that work in order to utilize them, the PROTECH^©®system of managed human resource development is built around what is working for the employer, incorporating established information such as work processes and specifications, safety standards, quality standards, etc. This approach minimizes the need for the employer’s culture to drastically change what works for them, focusing instead on improvements in an area of weakness.

“There is no doubt this approach is effective. After all, what is better: unstructured, haphazard and undocumented worker training that cannot be explained, measured, improved or understood, or structured on-the-job training for all workers that is easily measured, implemented, documented, improved and explained to auditors?”

The main steps used to build an employer-based structured workforce development system starts with understanding the desired outcome first: Read More

Read the full May, 2025 Proactive Technologies™Report newsletter, including linked industry articles and online presentation schedules.

Learning, Unfortunately, The Hard Way

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

Employers are being tested these days on their ability to respond to a rapidly changing world and maintain operational continuity. While we should have been better prepared to weather the Crash of 2008, who could have imagined that a pandemic would so disrupt the world’s supply chain, and realign consumer needs and preferences so fast and furiously, that even previously successful business operations would be pushed toward shuttering?

I am sure we all thought that after the Economic Crash of 2008 and its horrible aftermath that we had left those days of extreme reaction behind us. But here we are with another test to see who was paying attention.

For some firms, just-in-time manufacturing and extreme Lean engineering made it difficult to ride out the economic effects of the Covid-19 pandemic. Without having warehouses of inventory to call up while the supply chains straighten themselves out, the effects are immediate and debilitating. Many firms frantically attempted to reinvent themselves, in some cases in the most extreme way, without a clearly defined market or consumer, while other firms found themselves “checkmated” nearly overnight.

Now we are faced with a pending trade war, which has yet to define itself. But at a minimum it presents employers with new challenges that will reveal how it has prepared itself. The employer’s workforce usually the first to be disrupted if hunkering down is required. However, lost in this decision is the amount of investment made to develop the expertise being voluntarily relinquished. Also lost is the cost of replacement and the burden to the organization trying to stabilize itself and grow while struggling with finding, and having to train, quality replacement workers.

Decision Making While Swimming in Divergent Views

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.^®

It seems like we’re all overwhelmed these days. Bad news, natural, disasters, man-made, disasters, and fears of upcoming meteorites, diseases, hurricanes, and government shenanigans. Even the nightly news has nine stories of current and pending disasters followed by one story of a little boy who found a marble, separated by commercials telling us to “ask our doctor” if this new drug is right for us.

What’s different today is that there is no escape from it. It comes through social media platforms on our phones, our computers, it plays on the radio, network and cable news, it comes from massive industries of political and financial pundits, and paid influencers of many kinds. Second-hand versions of that information come from our coworkers, our neighbors, our friends, and even our clergy.

It is difficult these days to extract the information we need from these sources and make the best, most proper decision in response. Sometimes we are overwhelmed by having to do so, yet that’s what we do both in life and in business; we make decisions based on the information we receive, and hopefully make good ones.

Apprenticeships: Be Careful Not To Minimize Integrity To Spike The Numbers

by Dr. Dave Just, formally Dean of Corporate and Continuing Education at Community Colleges in MA, OH, PA, SC. Currently President of K&D Consulting 

In December of 2008, the U.S. Department of Labor announced a new rule on apprenticeships provide additional pathways to certification. The final rule specified that program sponsors could offer three different ways for apprentices to complete a registered apprenticeship program:

• Traditional, time-based approach, which requires the apprentice to complete a specific number of on-the-job (OJT) and RTI hours;
• Competency-based approach, which requires the apprentice to demonstrate competency in the defined subject areas and requires OJT and RTI; and
• Hybrid approach, which requires the apprentice to complete a minimum number of OJT and RTI hours and demonstrate competency in the defined subject areas.

Are Private Equity Portfolios and Hedge Funds the New Monopolies? Will They Be the Driver For, or Barrier To, Manufacturing Reshoring to U.S.?

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

As with any journey, remembering how you got there is important to knowing how to get back. Since the 1980’s, Americans have been taken on a wild adventure with the restructuring of the world’s economies and trading relationships. Good paying manufacturing jobs in the U.S. were outsourced to lower wage labor markets and replaced with low-paying service jobs. When workers had questions, they were given answers to reassure them that good times and prosperity will come. After an inordinate amount of patience shown and the experiment seeming to have institutionalized worker’s losses for someone else’s gain, Americans have rightfully become restless as if their and their family’s welfare and future are at stake. On top of everything else the social safety net that Americans pay into and rely upon, which has worked since the Great Depression of 1929 – 39,  is now in the process of being dismantled, maybe privatized. This is a good time for business and government leaders to revisit Maslow’s Hierarchy of Needs if they are sincerely having trouble understanding why Americans are distressed.

In college, I attended many economic courses while working on my undergraduate degree. A lot of what I learned was elaborated upon during my pursuit of an MBA, but with a business slant. Many of the economic theories that were espoused then seemed to explain the norms of how the economy worked in the past and was working then, and why certain government interventions, when used sparingly and strategically, were sometimes necessary and later proved appropriate.

Today, it appears that economic norms have been cast aside, and government rules and regulations weakened or not enforced, as the concentration of capital moves entire U.S. and World markets and industries in the direction that benefits the concentrated capital markets. The rest of us seem to be low-level pawns in a life-altering game that we are only allowed to participate in so long as we have money to play. There are brief periods of calm and spotty poor and middle-class well-being, snatched away (along with any gains made) between the roller coaster bottoms, which seem to be cycling increasingly closer. For the vast majority of Americans, economic stability is only a memory and erosion of society, democracy and the capitalist system portend a potential dark future for us all.

Read the full April, 2025 Proactive Technologies Report™newsletter, including linked industry articles and online presentation schedules.

The Learning “Cost“ Versus Training “Investment“ Paradox

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

This newsletter has written extensively about the inexplicable classification of the training a worker needs to succeed as a “cost“. It has never made much sense, yet it is so entrenched in our business operations that no one gives it a second glance.

Consider, for a moment, a firm’s excitement surrounding the $1 million investment made for new machinery that is meant to increase productivity and output by 50 to 100%. What an accomplishment that would be if that goal is reached.

Now consider that the equipment has arrived, has been installed, and a worker is randomly selected and gifted with a user’s manual loosely translated for another language and told to “figure it out.” This happens more often than we want to admit. A case can be made that the inefficient use of time, dollar resources, and the opportunity costs of underperformance and, possibly, equipment damage during self-training of its functions is truly costly.

Reacting to the Proposed Reversal of Regulations Affecting Human Resources and Safety Can Be Tricky

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.^®

Political winds frequently change direction, sometimes leading to calls to create or unwind existing labor and safety regulations. Currently, major moves to replace agency leadership and disrupt agency staffing to weaken agency mandates and enforcement capability may be a welcome development to some employers who earlier resisted, or were complacent to, compliance but as history has shown us many of the changes might be reversed in the span of an election or two. Enacting and implementing changes to company policies, and disseminating changes to the troops, in response takes more thoughtfulness and planning. Regulations and laws that have evolved over time as the result of events that set them in motion usually have some fundamental rationale that everyone can agree with, or they would have been badly battered during public hearings and public review. The disagreement usually revolves around scope, impact of the law on the non-offenders, and ideological divides.

Congressional changes to labor laws or presidential executive orders usually do not take effect overnight. It may take years for a bill to clear the House and Senate for the president’s signature and/or for the affected agency to make the transition. Changes to laws and enforcement criteria made through Executive Order adds to that process, since the rules, and the authority to make rules, came through Congressional action, and they have a say in the subsequent rule and guidance’s change or survival. There will be many impacted groups waiting to litigate the change and the court process can take years with appeals to higher courts. If shot down in whole or in part, then it will be remanded to the lower court to find a legal solution, before potentially starting another series of legislative activities. Regardless, there is a lengthy period of steps and reviews that could delay the action for some time with an uncertain outcome.

Debt Ceiling, Deficit and National Debt; The Difference and Why it Matters

by Proactive Technologies, Inc.^® – Staff

There is a lot of talk and confusion these days about state of the country’s finances. Often one measure is used to conflate and confuse the discussion about how to improve the others. The danger is those most impacted by whatever corrective measure becomes law are usually the same ones who have been sliding backward for the last 4 decades.

It is important to know the difference and add your voice to the discussion.

“The debt ceiling is a limit on the total amount of government borrowing. First put in place by Congress during World War I, it was meant to give blanket authorization for the Treasury Department to borrow money up to a set amount.”

“The U.S. budget deficit is how much more the federal government spends annually than it receives in revenue during that same time period.”

“The national debt of the United States is the total national debt owed by the federal government of the United States to Treasury security holders.

Today’s American Managers Have Evolved Way Past the Musk-DOGE “Management by Tyranny” Style

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

Most CEOs and human resource directors are probably watching the DOGE firing’s “shock and awe” spectacle with “shock and horror.” There may be a few frustrated managers who view this nostalgically and look fondly upon a possible return to the labor practices of the early 20^th century, but I bet even they see the incomprehensibility and inhumanity behind the approach and foresee the most likely unproductive, lingering chaos to continue beyond this action.

Apolitically and regardless of what one thinks of Musk as a person, his management practices and actions toward government are antithetical to making improvements and creating efficiencies, though under the guise of doing so. It seems more like an antiquated attempt to demonstrate one’s power and the fragility of the worker. His disdain for the worker is well documented and reflected by his private sector business practices and response to criticism.

But the federal government isn’t a business, should never be thought of as a business and if it was, we all would suffer for it. It doesn’t seek a profit nor is constantly seeking higher returns on shareholder equity. It takes in taxes and provides common services and, in most cases, does so very efficiently and effectively. Can it be run even more efficiently and effectively? Sure, but we would have to demand lobbyists carving out loopholes be barred from accessing members of Congress (who created the agencies by statute and rules that guide them) and insist on campaign finance reform to push out the destructive influence of money on our lawmakers and agency enforcers, which keeps workers from doing their job to the best of their ability.

Read the full March, 2025 Proactive Technologies Report™ newsletter, including linked industry articles and online presentation schedules.

Training The Skilled Labor You Need – An Investment That Keeps on Returning

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

In a 2016 Manufacturing Institute-Deloitte survey, 82% of manufacturers surveyed reported encountering a moderate or serious shortage of skilled workers to fill their positions. Over the next decade it is expected 3 ½ million manufacturing jobs will likely need to be filled. Skill gaps are expected to result in 2 million of these jobs remaining unfilled. More than 75% of manufacturers report that the skills shortage has hampered their ability to expand and 69% of manufacturers expect the shortage in skilled production workers to worsen.

In 2021, an IndustryWeek article entitled “The Skilled Labor Shortage Threatens Manufacturing’s Full Recovery, Says Study” stated “…a mix of U.S.-only manufacturers (65%) and multinational manufacturers with a strong U.S. presence (35%). found that finding talent with the right skills has been more difficult.”

IndustryWeek published an article by Glenn Marshall – formally with Newport News Shipbuilding – entitled “Closing the Nation’s Skills Gap,” Marshall discusses a program used during World War II to rapidly develop the skilled workers needed to quickly ramp up U.S. manufacturing to meet the needs of the war effort. Obviously there was a shortage of skilled workers; U.S. manufacturing had never been required to produce at such levels. In many cases workers were using new technology, so skilled workers could not possibly be available. The need was exacerbated by the fact that the world was in crisis.

The program implemented during WWII to remedy this was called TWI – Training Within Industry. Its basis was simple: workers had to be trained very quickly and the workers had to perform the tasks with consistent quality. The method included skills training, employee relations, continuous improvement as well, but at the center of the program was the expedited one-to-one transfer of knowledge from the trainer to the trainee. History will report that the effort was successful and the war effort received the manufacturing output it needed.

This early, but visionary, approach to training workers could easily be a precursor to Proactive Technologies’ concept of the “accelerated transfer of expertise® system”. For the past 30 years this approach has evolved into a structured on-the-job training approach, taking advantage of the latest technology and adapting to improvements in business modeling and quality control. But the concept still holds to this day. In every job classification, and every corner of a facility, one person is training another person to do something. It may be unstructured, haphazard, ad hoc, inconsistent and undocumented, but somehow it has worked. During competitive times this uncontrolled, but critical, process receives intense scrutiny and criticism as the cost of labor becomes a more important factor.

The most effective, efficient and economical training solution is taking this process that has demonstrated it works and formalize it; structure the unstructured and make it a deliberate process with measurable outcomes. It works, but employers are sometimes afraid to go back to solutions that have been staring them in the face for decades, possibly thinking they may be lacking the tools and expertise to approach it. Read More

Put Yourself in a Trainee’s Shoes

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.^®

It is fun to watch a once popular TV show on CBS, now in syndication, called “Undercover Boss – reruns and all.” Watching a CEO or executive of a major corporation slip into disguise and enter the world of their workers is interesting and entertaining. Sometimes they find the organization needs a little “tweaking,” and sometimes it needs major rethinking.

The entertainment value, I suppose, comes from watching these individuals being tossed into a job classification – alien to most of them – and, while cameras are rolling, receiving a crash course in performing various job tasks. Some tasks are performed close to the customer. Not only do leaders get a rare look at what it is like at the lower rungs of the organization, in some cases they get a look at the sub-par performance most of their customers experience and how tenuous the corporation’s existence is – sustained only by the initiative a few loyal, but mostly self-interested, employees. These employees try to make up for the corporation’s shortcomings as if their job and future depend on it…which they do. If the company fails, they lose their job, plain and simple. Some put up with the company’s shortcomings in pursuit of the next opportunity.

It is interesting to see CEO’s marvel at how difficult it is to learn the job tasks they previously thought were inconsequential and not worthy of attention. Previously known only as a word on a report, the fact that how the tasks are performed by these neglected employees are the reason the corporation exists goes unnoticed and unappreciated. Some episodes look like popular television shows of the 50’s and 60’s, “I Love Lucy.”

A typical Undercover Boss episode might reveal: Read More

Explaining Your Process Training to Auditors, Prospects and Clients

by Proactive Technologies, Inc.^® – Staff

How much time, energy and resources are expended by your firm when someone comes to visit and wants to “kick the company’s tires?” When it comes to training your workers to internal and/or company processes, a structured on-the-job training program that operates smoothly and completely in the background may have the answers your clients are looking for.

For most organizations, the general notion is that training is going on in every corner of the organization, for every worker at any time of the day or night. One person is showing another person how to perform a process, operate a piece of equipment or software, fill out a form or, yes, make a copy using the new copy machine just installed. How effective is that informal form of training? Have you ever walked by a copy machine and seen someone standing in front of it, staring at the control panel…then the sky, as if seeking divine intervention. Now, think of the more complex tasks!

When the resident expert masters a task and it becomes routine, there is a tendency for them to marginalize the task as so easy that the next trainee should learn it by osmosis. If not, maybe the new-hire “just doesn’t seem to want to learn.” Somehow, the organization may get by. In this case, like so many, it may sound like an insignificant example of training, but not to the person who needs the copy and who may be judged if a meeting is waiting for it.

Same, too, are the more critical and complex tasks of the job, requiring compliance with so many factors such as engineering specifications, quality control requirements, safety requirements and company policies. Without a deliberate task-based training infrastructure in place, training might be ad hoc, informal, unstructured and rarely documented. Add to this the periodic worker cross-training that allows workers to train in, and master, tasks in multiple job areas and the amount of critical, but undocumented, training can be tremendous. Read More

The Unintended Consequences of Cutting Workers as a First Choice

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

Layoffs have often been employer’s “go to” solution during market gyrations. So much so that activist shareholders consider it a normal practice and implement it as a first choice, along with forcing out the most seasoned of management since they are usually the highest paid based on tenure.

Especially since the 1980’s, changes in the financial markets purpose – from sources of needed capital to direct micromanagement of portfolio firms – have turned an infrequent and considered benign practice into a common occurrence. Private equity groups and hedge funds, with just minority positions, rally to send in “change artists” that have a single-mindedness towards cost-cutting to show investors immediate results that make a share price grow. After all, the investment firm may only hold on to the acquisition for a short while until they have gotten all they can, so gutting a holding’s long-term capacity to look more efficient and profitable short-term appears to be just a means to an end. It can also be an effective way to get rid of a brand’s competition by buying them up and breaking them apart in the name of “prudent investment management.”

To the company, layoffs have an often underestimated but always predictable negative ripple effect. As with turnover, layoff cost effects permeate the organization on many levels for an indefinite period of time. The investment in recruitment, selection, training and retention of workers is out the window, leaving behind the opportunity costs of lost capacity and institutional memory to kick in. After an investment group moves on doesn’t mean the shell of a previously profitable company can rebuild itself and continue. Pushed back, perhaps decades, in their development and now bled of its operating capital while the market has moved on, the firm’s challenges to regain its footing can be daunting. There are numerous examples of legacy brands struggling to come back – shuttering stores and factories in a desperate act to save themselves after being forced to cut into the bone and losing their compass.

The ripple continues outside the company’s facility. The turmoil caused to the labor market by such practices is palpable. Workers are reluctant to pursue educational programs that take even a few years for fear those jobs being targeted won’t be there when they graduate but the debt will remain. Families are impacted when the breadwinners can’t keep up with living costs and unexpected expenses. Drive through cities and rural communities and see a growing decay as local discretionary income is diverted from local small business products and services to non-discretionary and necessary expenses often paid to multi-national corporations.

In an article entitled Cutting Too Much: When HR Needs to Pump the Brakes on Layoffs published in Human Resource Executive by Peter Cappelli of Wharton, the author challenges employers on the long-standing practices of “laying off first, determine impact later.” Cappelli cites an example “I suspect that few people know of Stellantis, the holding company that now owns brands like Fiat, Peugeot, Chrysler, Maserati and Alfa Romeo. Read More

Read the full February, 2025 Proactive Technologies Report™ newsletter, including linked industry articles and online presentation schedules.

So, You Don’t Have Time for Training. Really? 7 Myths Dispelled

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

When meeting with manufacturing leaders, I am often first surprised, then puzzled, by the old standby reactions to the discussion of training workers to maximize each worker’s capacity and return on worker investment (“ROWI”). Whether it is just a reflex action, an unsubstantiated response to a misconception or another way of saying, “why am I in this meeting,” it is worth the time to explore this topic further.

It is a good bet that, in any firm, a worker’s training to perform the work for which they were hired is left to chance and coincidence. It follows then that so would the firm’s collective productivity, collective ROWI and, predictably, the firm’s efficiencies and effectiveness. But it doesn’t stop there. A new-hire worker that walks into an environment with a lack of definition and/or a haphazard, unfocused and undocumented effort to quickly train the worker receives the same reaction as one walking into a cluttered office for the first time. “How does this guy function?” “How can he find anything?’ “What is this guy’s job and would he know it?”

It is true, first impressions are important. But doing nothing to clarify or dispel negative impressions has a compounding destructive add-on effect: 

The Use of AI in Human Resources Could Come with Peril

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.^®

Most everyone will agree that technology has been introduced at an alarmingly increasing rate. So much so that it seems we have little time to become competent in one version before it is replaced by another, impairing the touted “it will make you more productive” claims meant to reassure us. Now we see Artificial Intelligence (“AI”) being pushed onto our phones, out desktop browsers and applications, to mundane equipment we use daily in our lives, robots to replace workers and now human resource department functions to make hiring decisions of humans (but, ironically, not for robots).

On matters concerning technology implementation by the consumer and the effects of technology on consumers, lawmakers have been slow to act or are absent from the discussion. Consequently, decisions on the ethical use, consumer privacy, theft of intellectual property and proprietary information, and cybersecurity in general are decided by the profit-oriented initiators of the technology. And when Wall Street investors latch on, the push to proliferate the new technology to all corners of society are overwhelming…until the next fad comes along that investors can cash in on.

Specifically, with regard to cyber breaches, “there were 2,365 cyberattacks in 2023, with 343,338,964 victims. Around the world, a data breach cost $4.88 million on average in 2024. Business email compromises accounted for over $2.9 billion in losses in 2023.”

New Year’s Resolutions That Can Right This Skills Gap…Thing

by Frank Gibson, Workforce Development Advisor and President of the North-Central Ohio Employer-Based Worker Training Partnership

Jessie Potter, Director of the National Institute for Human Relationships, is said to have originated the quote, “If you always do what you’ve always done, you always get what you’ve always gotten.” For the last 40 years, manufacturing employers have expressed their despair at “not finding the skilled workers they need,” while employees say employers are not doing their share to train workers and educational institutions churn billions of dollars each year doing their best to develop entry-level workers with industry level skills only to find those targeted jobs were sent overseas. With the new year upon us, maybe it is time for all parties to take a step back, face the issue honestly and pragmatically and put an end to the buck passing, the “shell game” and the misplaced expectations to make the American workforce the envy of the world.

There are three important stakeholders in this equation going forward: the employer, the prospective employee and the institutions that make the effort to prepare workers for the employer. Although prospective workers can come from any background and prior experience, it is a relatively linear path to the employer’s front door. What happens next has seems to be a bit of a mystery to the employer and stakeholders in the community, and that ambiguity affects the quality of the inputs preparing potential workers.

The Prospective Employer Needs: Read More

What Makes Proactive Technologies’ Accelerated Transfer of Expertise™ So Effective

by Proactive Technologies, Inc.^{® –} Staff

There are a lot of buzzwords thrown around these days. “Skills Gap,” Education-Based Apprenticeships, Industry-Recognized Certifications, “STEM and STEAM” – many confusing to those in management whose primary function is to ensure products and services are delivered in the most cost-effective and profitable way. It can be especially confusing to those who are specialists in business operations but unfamiliar with effective worker development strategies.

For anyone unfamiliar with Proactive Technologies’s PROTECH^©® system of managed human resource development™ for the accelerated transfer of expertise™, it might help to clarify what makes this approach to worker development and continuous worker improvement so effective. This unique approach, in practice since 1986 and always improving, was designed by someone who endured the pressures of maintaining the highest quality staff in a world of constant change and pressures to do more with less.

We start by collecting client data about each of their targeted job classifications; data that is all around anyway (e.g. people’s heads, operator’s notes, engineering processes, quality standards, EHS specifications). Usually, we find that this information isn’t readily available or discoverable by new hires and incumbents. This makes learning and mastering the tasks — unpredictable, ineffective, open to interpretation and conflicts (including legal), costly and not conducive of standardization of high performance. And the continual revision of all of these bits of information adds to the challenge and makes process improvement and implementation efforts difficult, at best.

Read the full January, 2025 Proactive Technologies Report™ newsletter, including linked industry articles and online presentation schedules.

Seems Like Decades Pass and the Top Worker Development Topic Remains the Same

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

In a recent article appearing in HR Dive by Carolyn Crist entitled, “Executives and Workers Alike Say Entry-level Workers Seem Unprepared” she starts with, “Although leaders say workers don’t have enough training to be hired, employers also don’t appear to offer adequate training.” “Only 48% of employees and 12% of mid-level executives believe today’s entry-level workers are well-prepared, the report found. The entry-level employee pipeline is broken,” Jourdan Hathaway, chief marketing officer at General Assembly, said in a statement. “Companies must rethink how they source, train and onboard employees. There are evidence-based approaches to improving workforce readiness.”

While the article focuses on recent report findings, the article touched on the crux of the problem; little has changed and very little is done by employers to mitigate the problem of inadequately prepared entry-level workers. The author pointed out, “At the same time, employers don’t provide enough training, both groups said. A third of executives and more than a quarter of employees said that companies don’t provide enough training to new hires. In fact, those who said entry-level employees seem unprepared were also more likely to work at a company that they felt doesn’t provide enough training.”

This is a two-fold problem; employers say entry-level workers lack preparedness and employees say employers do not provide training. Specifically, regarding preparedness, “One of the top reasons these workers seem unprepared is a lack of soft skills, according to 49% of executives and 37% of employees. About 40% of Gen Z respondents said that lacking soft skills is a major shortcoming among entry-level workers. Both executives and employees also said entry-level workers don’t have the right attitude or technical skills.” This in spite of the billions in education budgets and additional billions in special programs meant to drive those outcomes higher. Digging a little deeper, employers have been reluctant, or unable to, explain to local educational institutions what they precisely need of entry-level candidates and educational institutions are not connected enough to ask the right questions and know if the answers are credible. This gap continues to grow if the job targets continue to change and the conversation does not continue.

Should Supervisors Be Expected to “Lead” If Not Trained for Their Job AND The Jobs of Those They Lead?

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.^®

Employers are faced with a lot of challenges these days. Corporate structures are putting pressures on local management to extract higher and higher efficiencies and to endlessly lower costs. These directives tend to vacillate with the earnings report seasons, but always assume that the supervisors and managers who are expected to implement these orders have received proper training to do so with, in some cases, fewer and fewer resources. Nearly anyone can master driving a car, but it takes an entirely different skill set to fix it…with disappearing tools and a shrinking budget to replace them.

When it comes to first line supervisors, sometimes they are selected for the ability to “go along and get along.” Others may be selected from among consistently performing workers in the area because of their knowledge, demonstrated expertise and performance of their work. Often when selecting supervisors, managers lack the opportunity to assess other leadership qualities or to provide remediation of areas of weakness. Without benchmarks, tools and standards in place to train workers, a prospective supervisor selected may not become the most fully trained worker upon which to add management responsibilities.

In a more dire situation, a supervisor may be selected with no background or experience with the work or workers performing the work they are assigned to supervise. In both cases, proper training of supervisors would be greatly beneficial and appreciated, including training on the tasks for which they are monitoring workers performance as well as new administrative tasks. The latter includes tasks such as filling out necessary forms, communicating both ways in the chain of command, scheduling and monitoring work and even providing minimum assistance to their workers to help them better perform their tasks given the changing constraints and expectations that often arise.

New Employer-Based Worker Training Partnership Coming to North-Central, Ohio

by Frank Gibson, Workforce Development Advisor, retired from The Ohio State University – Alber Enterprise Center

Conspicuously absent from worker development strategies has been the employer who says they need the qualified workers. In north-central Ohio, a new partnership has formed that will make a more directed effort of helping to develop the human assets employers need to fuel their business strategy.

Metrics within companies and throughout the nation emphasize the need for a more job-relevant and complete worker development effort; a system connected from per-hire development to post-hire maximization of worker capabilities. Some may might think this sounds like a “European-style model” of apprenticeships, and it does have that philosophical connection. But here in the United States our educational institutions and workforce development agencies are not structurally aligned yet to accommodate that, but a regional alliance could be.

I have lived in Ohio my entire life. I’ve served in the military and witnessed the armed forces way of technical training. I worked in private manufacturing and have been involved in workforce development at the state level and while at The Ohio State University-Alber Enterprise Center and several other educational institutions. Looking at the same challenge from different angles gives one a broader perspective.

Lately, though, I can’t help but feel a sense of déjà vu over my déjà vu. Since the 1980s, I have witnessed an ongoing creation, destruction, realignment, reinvention of the landscape of local manufacturing, as well as all the workforce development agencies and providers trying very hard to be relevant and support them. The target hasn’t stopped moving and neither have all of the lagging inputs, but trying, to stay aligned.

Looking to Cut Costs in All the Wrong Places

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

When employers are pressured to desperately seek costs to lower, most tend to overlook the most obvious that stares them in the face every day: the cost of underdeveloped or undeveloped and, therefore, under-utilized worker capacity. In any other case, management would intervene when a major asset requiring an ongoing investment isn’t able to maximize a return simply because the effort to deploy the asset is incomplete. Instead, they select for cutting the one area that has become the norm: labor itself. They mistakenly make the sweeping mistake of cutting labor to make the short-term numbers look better, choosing to push the underlying issue down the road to a time with the same challenge and greater pressures. What is that old adage of “cutting off one’s nose to spite one’s face?”

In meetings with employers to discuss with them an approach that will quickly develop each worker to “full job mastery” no matter if new-hire, incumbent, a reassignment or just part of cross-training, the reaction is mixed. Many simply have no idea to what degree their longest-term incumbent workers have fully mastered all of the tasks that are assigned to their job classification. Is it 35%? 50%? Surely not 100% since there are no records to prove it. Even if they once had an idea, how many times has the job been changed by new products, new technologies, LEAN process improvements and job redesigns? Remember, these workers become the default trainers of other workers needed.

Read the full December, 2024 Proactive Technologies Report™ newsletter, including linked industry articles and online presentation schedules.

Lack of Immediate “Big Win” Puts Improvements in Worker Capacity on Chopping Block…For Short-Term Focused Management Cultures

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

Let’s face it, discussing the desperate need for worker training to build consistent performance, increased worker output and compliance, is a hard sell in any boardroom. The first question is usually, “how much is this going to cost us?” Not “what is the investment and how will we realize the return?” Since accountants, who are not trained in any aspect of worker development, have more weight in this type of showdown, guess who wins.

Shareholder gains are measured in terms of quarterly profit margins; try explaining the merits of building a stronger, more resilient and retained workforce and the value of increasing worker capacity, increasing work quantity, quality and compliance over yawns and disinterest. It usually takes decades of unintentional or intentional neglect to weaken a firm’s workforce; it stands to reason the solution won’t bring exciting monetary returns in a quarter.

There is plenty of shared blame for this state of disconnect. Human resource professionals, training and development experts, and education in general have focused their workforce development solutions promotion on products they have – the quick and simple classroom and online products. It simple and familiar to everyone. That is the domain they have the most experience in, having taken classes in college. These products are great for pre-employment core skill development and post-hire core and general technical skill (if properly aligned), but these represent “transfer of knowledge,” not “transfer of task-based expertise.”

Task-Specific Performance Reviews – An Accurate Metric for a Structured On-Job-Training Outcome

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.^®

We have all been through it. For decades this has been the topic of comedy shows and movies…the dreaded annual performance review. And when it is over, we might tell our confidants how non-reflective of reality and unfair it was. We calm down over the next few months and grow more anxious each month as we get closer to the next one thinking we are at its whim.

Why are they used? Are they supposed to be a good measure or performance or just a way to meet a human resources department obligation? More times than not they seem like a justification for not giving a wage increase than guidance on how an employee can continually improve and contribute to the organization.

It is bewildering why management would spend the time and money, and risk employee morale time and again, on an employee measurement that isn’t.

The PROTECH “Plug-n-Play” Solution for Workforce Development

Proactive Technologies, Inc.^® – Staff

The PROTECH Approach to Workforce Development Was Designed for Employers and is a Logical “Plug-n-Play” Solution to Bridge Employers with Local Workforce Development Resources.

The PROTECH^©® system of managed human resource development™ and the accelerated transfer of expertise system™ approach:

• Is designed exactly to the employers’ job classifications – incorporating the employer’s work processes (developing standard processes where not available), engineering specifications, quality specifications and safety requirements;
• Creates a structured on-the-job training infrastructure – ready to train new-hires, cross-train workers AND close incumbent workers training gaps;
• Requires a low and declining per trainee investment;
• Lowers employer’s internal costs of worker development while increasing worker capacity, work quantity and quality, and compliance (i.e. with engineering and safety specifications, as well as quality programs such as AS/AS/IATF and NADCAP);
• Lower worker turnover for employers and with sustained higher worker engagement;

Finding the Balance Between Wages, Entry-Level Skills and Opportunities for Advancement

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

During the path toward recovery after events such as the Crash of 2008 and the Covid-19 shutdowns, many employers that had to lay-off skilled workers tried to find some of those workers (in whom a great investment was made) and bring them back for rehire. Some were not needed, some could not be found, some moved on to what they thought were safer career tracks and some inexplicably “dropped out” of the labor force.

Concurrently, employers initially continued a push to drive wages down. Some of it was rationalized by the swollen labor pool, some of it was to take advantage of the economics of desperation due to job loss and some, it was said, to position the company competitively. Some was because everyone else was doing it, and some of it was because the investors demanded it.

The result is a world in which economic theory no longer supports reality. For example, unemployment is reported at a celebrated low 4.3 percent through September, 2024. Yet wages continue to decline in many areas. Most credible economic theories state that when the supply of labor becomes scarcer, wages tend to increase to reflect that scarcity. This is simply a supply and demand issue.

Read the full November, 2024 Proactive Technologies Report™ newsletter, including linked industry articles and online presentation schedules.

Economic Development Opportunities – An Important Incentive in Attracting Companies to Your Region

by Dean Prigelmeier, President of Proactive Technologies, Inc.^®

When organizations try to create new jobs in their area – working with companies that are considering moving to, expanding to or expanding within their areas – skilled labor availability for many regional economic development strategies may include an offering that consists of one part skills assessment, one part general skill classes and a sprinkling of worker tax credits or grants. That seems to be what most incentive packages include, but is that because: A) that is what the other offers look like; b) it has been like that for decades; C) it is assumed that is all that is available; or D) all of the above?

For over forty years headlines sounded the alarm that those institutions that were training the workforce of tomorrow were not succeeding in their effort as discussed in, “An Anniversary That You Won’t Want to Celebrate: Years Later and The Skill Gap Grows – Is it Finally Time to Rethink The Nation’s Approach?“). Many skilled workers that are available to work do not have the skills that employers need today. Not completely satisfied with their answer to the inevitable question regarding the region’s skilled labor availability and how workers with specific skill needs will be found or developed, some economic development organizations are exploring other options and opportunities.

“Whether attracting new companies and helping them thrive and expand, or helping existing business to do the same, this approach is an important component of any economic development strategy.”

Increasing Worker Capacity – An Alternative to Cutting Workers for Short-term Cost Savings

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.^®

In business, if you encounter market “softness” and believe that the business level that you were previously operating at is now unsustainable – even if for a limited period – you might be tempted to first cut time for training, then “cut labor costs” to extend short-term cash flow and/or make the balance sheet appear healthier for investors. It often becomes a slippery slope that can lead some organizations struggling to get off. Sometimes the pundits’ forecasts were inaccurate or the recovery is swifter than anticipated. Regardless, what appear as a benign short-term solution can have long-term repercussions as the market recovers and the employer is now struggling to regain the capacity the workers afforded, while watching opportunity slip by.

Sometimes investments are made in machinery and technology during the lulls to get ready for the economic up-turn, but too rarely is any effort made to determine the level of each worker’s current capacity (i.e. what percent of the tasks they were hired to “expertly” perform) relative to the job they are currently in and what could be done to increase it to handle not only existing technology and processes, but the new technology and processes as well. One might even think about cross-training workers to build “reserve capacity.”

Too often, in this age where every quarterly report has to be as good or better than the one before – actually earnings per share – even if the economy currently doesn’t allow it, well-run businesses are pressured to cut into the bone; driving down wages, cutting benefits and ultimately eliminating workers. Investment in worker training isn’t permitted. It doesn’t take an accounting genius to make sweeping, ill-informed cuts, but it does take a pretty savvy leader to recognize and avoid the perilous track or, worse yet, pick up the pieces after these mistakes have been made.

“That is the one point missed in all of the cuts to wages, benefits and staff; the first wave affects those who have no choice, the second wave affects the company as those with choice exercise it and move on.”

Education-Employer Partnerships That Work

by Frank Gibson, Workforce Development Advisor, retired from The Ohio State University – Alber Enterprise Center

A lot is being said these days about “employer-responsive” worker training programs. I think all educational institutions want to believe they have all the answers to all of the challenges employers face. Although I have found that we had many of the answers for many disciplines, it was important to realize our limitations and either find other resources to fill the gap or be truthful with the client so that they might look elsewhere for those answers and solutions.

While a program manager for The Ohio State University – Alber Enterprise Center, which I worked at since its early beginnings in 1996, I learned the value of listening to the employer and providing them what they needed. The Center was founded on the premise of providing educational and technical consulting services to business enterprises throughout the region to help them grow and prosper. Whether to help them train their workers to the latest in technical skills or train their management on the latest management theories and best practices, the Alber Center assembled an extensive network of institutional and private training providers to meet their needs and continued to expand their network to help employer-clients maintain their competitive best.

While we felt The Center did a good job of providing foundation skills for all levels of an operation, we recognized that an educational institution cannot, and really should not, provide employer-specific, task-based training. It is not economically feasible for The Center to maintain the staff and expertise to service every small, medium and large enterprise in our region on processes that are unique to each. It takes a high level of maintained excellence to perform the necessary job and task analysis, develop the employer-specific training materials, train the employer’s staff to effectively implement structured OJT and mange this “systems approach” to build on the foundation our other programs provide.

WATCH VIDEO INTERVIEW

by Proactive Technologies, Inc.^® – Staff

James Ruble. Director of CTE & Student Pathways, Tri-Rivers Career Center & Center for Adult Education and Dean Prigelmeier, Founder and President of Proactive Technologies, Inc.^® sit down for a 30-minute interview with Kayleigh Aiken, Anchor of “Public Affairs.”

Mr. Ruble discusses Tri-Rivers Career Center’s range of workforce development services to provide employers with prospective employees. The Center develops students with the foundation skills upon which employers can build employer-specific/work-specific skills they need. He elaborates on new school initiatives to help employers and position the Career Center to be more of a partner for economic development.

Mr. Prigelmeier explains the widening training gap he witnessed that drove him to leave manufacturing and develop a software-supported worker development infrastructure and system that provides all of the tools of the human resource development and performance management process. Any change to the job requirements and all of the tools are updated to include it. Proactive Technologies provides infrastructure development and technical implementation support to make sure the investment is maximized and the client employer can focus on business.

“I wanted to make available to small, medium and larger companies the training development infrastructure and support of a Fortune 250 company, except with far greater returns for a tiny fraction of the investment. This approach is efficient, economical and leads to higher worker ROI and clear justification for the effort,” explained Prigelmeier. “By building an infrastructure around what most employers already have – an informal, ad hoc, undocumented and immeasurable one-on-one training experience – this approach cuts the employer’s internal direct and opportunity costs of training and quickly increases each worker’s capacity to full job mastery. Full job mastery means increases in work quantity, work quality and compliance (e.g. ISO, AS, IATF, NADCAP and safety). Each worker’s development – no matter if a new-hire, incumbent or cross-trainee – is driven to the same level of expertise established by the employer’s existing experts, with the progress towards mastery tracked, documented and reported monthly.”

“I like to partner with educational institutions such as Tri-Rivers Career Center whenever possible to better align all of their good work in preparing workers’ foundation skills, industry-general and industry-specific skills with, now, an employer’s internally structured on-the-job training infrastructure,” said Prigelmeier. “That’s how you continue to build upon the foundation laid and give every candidate an opportunity to succeed – a win for the worker, the employer, the community and region.” Watch the Video

Read the full October, 2024 Proactive Technologies Report™ newsletter, including linked industry articles and online presentation schedules.