Proactive Technologies Report – June, 2021

The Worker Development Puzzle… For Many

by Dean Prigelmeier, President of Proactive Technologies, Inc.

After many years of setting up and providing technical support for employer-based structured on the job training programs, I can say with confidence that most, if not all, employers have significant weaknesses in their worker development process. If pressed, I believe most employers are aware of it, but have become comfortable with the mistaken notion that “it is what it is.,” Some are unaware and frustrated at the lack of results when hiring new workers to maintain or build capacity; accountants show signs of concern when hiring adds labor costs and often results in lower production output. Others in management may be concerned with unsustainable poor output quality or an increase in product or service scrap or rework.

Hiring more workers is not always the answer to the apparent lack of capacity to take on new product lines and new projects. Many employers overlook the fact that there is a tremendous amount of untapped capacity among the existing workers who have never had a chance to be fully trained for the jobs for which they were hired. The reason: most companies have remained in the unstructured, informal, undocumented one-on-one task-based training mode – even though the tasks are often transforming and the skills required for jobs have continued to increase in complexity.

click here to expand

Understanding the “chemistry“ of worker development is key to maximizing the return on worker skills and efficiencies. If an enterprise is struggling to increase output given the current staffing levels, adding new workers to compensate may often yield even less output. The simple reason being that a new person with no demonstrated skills or relevant capabilities is paired with a higher paid subject matter expert who is to transfer their expertise in an unstructured, ad hoc and undocumented manner. For however long this unstructured experience takes, one person who used to be very productive is now training a worker who has little or no productivity, doubling the loss of capacity rather than increasing capacity to increase productive output. As production output falls, the subject matter expert trainer may feel compelled to take up the production slack – putting more distance between them and the trainee. During the probationary period, the new-hire doesn’t know what they don’t know and what is not being trained, so they may feel the only solution is to lay low.

This experience can take 2 to 3 times longer than necessary and the new worker may be trained to only 20% of the required tasks that management wants and expects. For however long this takes to transfer a full job set of expertise, two people (not one) are drawing pay and underproducing. Read More


Retiring Workers and the Tragic Loss of Intellectual Property and Value

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

The warnings went out over two decades ago. Baby Boomers were soon to retire, taking their accumulated expertise – locked in their brains – with them. But very little was done to address this problem. Call it complacency, lack of awareness of the emerging problem, preoccupation with quarterly performance, disinterest or disbelief, very few companies took action and the Crash of 2008 disrupted any meager efforts that were underway.

According to Steve Minter in an IndustryWeek Magazine article on April 10, 2012, “Only 17% of organizations said they had developed processes to capture institutional memory/organizational knowledge from employees close to retirement.” Who is going to train their replacements once they are gone? Would the learning curve of replacement workers be as long and costly, repeating the same learning mistakes, as the retiree’s learning curve? Would operations be disrupted and, if so, to what level?

click here to expand

“In our new “outsourcing nation,” a widely held belief is that employees are simply costs to be cut and not assets to be valued.” …. “Manufacturing faces a two-sided problem: it not only has thousands of people retiring, but it does not have the training programs to train skilled workers to replace them.

A Strategy to Capture Tribal Knowledge IndustryWeek- Michael Collins 5-23-16

In the last few years, it seems an alternative to the concentration of expertise in a few subject matter experts has become to use lower-wage temporary or contract workers who specialize in smaller quantities of processes, and who can be “traded-out” with a minimum amount of disruption. History will tell us just how costly that approach was and if anything was learned.

Many in corporate America have come to view all labor as expendable; easy to swap with a cheaper alternative – disregarding the cumulative asset value of the investment made in each. In the June, 2016 Proactive Technologies Report, in an article entitled “A Strategy to Capture Tribal Knowledge,” author Michael Collins notes, “In our new “outsourcing nation,” a widely held belief is that employees are simply costs to be cut and not assets to be valued.” He goes on to say, “Manufacturing faces a two-sided problem: it not only has thousands of people retiring, but it does not have the training programs to train skilled workers to replace them.” Read More 


Proactive Technologies Announces Summer “Turnkey Project” Discount Offer is Back

by Proactive Technologies, Inc. Staff

After a year-and-a-half long Covid-19 break, Proactive Technologies Inc. is once again extending to employers a generous discount offer of up to 30% from June 15 to August 15th, 2021!

This accelerated transfer of expertise™ approach is a tremendous offer without the discount, but with it can help any employer quickly and completely train the skilled workers they need AND realize an increase in worker capacity, work quantity/quality and compliance (ISO/TS/AS, engineering specifications and safety) while reducing the internal costs of training! New-hires and incumbent workers are driven to full job mastery and higher levels of return on worker investment (ROWI). The task-based, structured on-the-job training infrastructure is perfect for the apprenticeships; instead of marking the calendar for “time-in-job,” job-relevant tasks are mastered and documented.

click here to expand

Waiting on general classes or unstructured, ad hoc one-on-one training to improve performance and maximize the investment in each worker usually proves to be futile and disappointing. When a worker masters the work they were hired for, it can now be possible to explain, document, repeat and/or improve performance. When turnover occurs and puts you back to square one – wiping out any gains and wasting your investment – labor costs rise, quality and work consistency decreases and the “gap” skill remains. So why not treat workers as the investment it is and manage it for the outcome you need and expect? Read More


A Training Approach That Should Make the Bean Counters Happy

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Whether out of deference or lack of awareness, it is an unspoken truth that more and more employers have been neglecting their role in worker development lately. Investments in related technical instruction are being pushed to the back burner by ever growing emphasis on meeting quarterly numbers; the push for greater output and profits to meet shareholder expectations which seems to perpetually increase. Classes and online content have always been seen by accounting as costs that can be put-off for a later date that, now, never seems to come.

The more important on-the-job training (the informal transfer of task best practices and expertise) is squeezed in if and when time allows (which is in short supply) by whoever is available – this in an age of Lean and continuous improvement. If employers are waiting for someone else to train their workers to 100% mastery of their unique tasks, on their unique equipment for their unique processes, well that is just wishful thinking.

click here to expand

The contradictions are alarming, and many times middle managers and upper management of corporate-run or private equity managed enterprises are caught in the middle. They know the risks of neglecting training and they see the results first-hand, but have little say in the matter or are afraid of getting caught up in a “cost v. benefit” discussion with people that seem to live in a different world and have made up their mind before the discussion begins. When capacity deteriorates or the siren’s call of cheaper labor markets prevails, someone makes the decision to move the entire operation to a location where training is even more difficult but can be absorbed due to offsetting wage discounts – that is until wages rise and total cost of ownership is understood.

“The decision to not invest in driving each employee to full job mastery – making sure all company employees have mastered the best practice of every task for which they were hired – is akin to investing in a costly NC machine and using it to sharpen your pencils. The return on the investment is not realized, so it starts to look like pure cost. Magnify this by tens or hundreds of employees and there is no doubt of the folly.”

If employers do decide to host related technical instruction, they tend to gravitate toward classroom or online training solutions since they seem more familiar. They settle on local institutional instruction providers and private vendors by finding what they think is a close fit, yet they and the end-users are often underwhelmed by out-of-date or unrelated content that weakens their credibility and makes them reluctant to ask for permission to host another. It has always been difficult to show how related technical instruction and courses “du jour” translated into improvement in a worker’s performance – expressed by the attendees and those who sent them through the class. Read More


Read the full June, 2021 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – May, 2021

Costs Associated With Unstructured, Haphazard Worker Training – Part 2 of 2

Dean Prigelmeier, President of Proactive Technologies, Inc.

Last month’s issue of Proactive Technologies Report’s Part 1 of “Costs Associated With Unstructured, Haphazard Worker Training,” offered a number of examples of unstructured, haphazard and ineffective worker training that I experienced in my early years in manufacturing. We all have had similar experiences throughout our lives to draw on, I am sure. It is still perplexing that – in view of all of the advanced systems, process controls and metrics that keep an enterprise operating competitively – management would assume that such a “hands-off” approach to developing the critical worker component wouldn’t detract from the other metrics. Why would management expect anything more than skeptical results?

“New equipment that leads to decreased output, more workers added but productivity and capacity falling, or more workers producing product but most of it going into the scrap or rework bin. All of these counter-intuitive outcomes – signs of inadequate or non-existent task-based training – will eventually grab upper management’s attention!”

click here to expand

It is a given that new technology and equipment are dependent on someone learning to either program, service and/or operate them correctly. The incumbent workers, in the job classification before the transition, are the obvious choices for learning. Conceptually, they were doing the work prior to automation with previous version technology and understand the theory and current best practice of the work to be done. These worker’s attained skills will now be tested against the new skill requirements.

Unfortunately, training of current workers for even obvious new technology requirements such as setup, operate and changeover of the equipment, is often overlooked or its significance downplayed. Consequently, often the economic benefits that advances in technology are to provide are marginally, or never, realized despite the costly investment.

Until the processes associated with the new equipment and technology are stabilized for maximum efficiency, learning of the processes – from the each worker’s perspective – is seen as fluid and ambiguous. Even if a noble effort is attempted to indoctrinate the worker in the use of the equipment, the erosion of the worker’s skill base compared to the evolving standard practices and technology is ongoing. Multiply one worker’s learning experience times the number of workers needed to operate the equipment – learning the same tasks in different ways on different shifts from different trainers – the direct costs of training, as well as the opportunity costs of under-utilized “worker capacity,” can be enormous. Calculate this cost for every job classification for which task training is needed and the costs can be “attention-getting.” Read More


Internships of Value – For Employer AND Intern

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

In my college years, a number of my classmates participated in internships in an effort to gain real-world work skills and experiences, and to be able to add a line to their resumes. Over the years when we compared notes, it seems the results varied from company and by job area. But the common sentiment was that the experiences were not as helpful to building workplace skills and personally fulfilling as they could have been.

According to a NACE (“National Association of Colleges and Employers”) 2015 survey entitled “Internship & Co-op Survey,” “The primary focus of most employers’ internship and co-op programs is to convert students into full-time, entry-level employees (70.8 percent and 62.6 percent, respectively).” So, it appears most employers view internships as a potential recruitment tool and a way of evaluating candidates for employment.

click here to expand

“Shadowing” without being able to touch and interact can be done with a DVD at home. Fetching coffee and making sure the break room is stocked with paper plates and napkins do not test the skills developed after 12 years of educational learning and 2 or 4 years of technical and academic study. Do not get me wrong, those who were paid while interns are appreciative for the opportunity and the resume line. However, they all seemed to wish they could have been able to learn and experience more.

Engineering and accounting areas seem to provide more meaningful task-based internship experiences because both have had a long time to standardize some tasks – even proceduralize them in cases – to make it easy for a new person to follow and observe. Other job areas seem to lack standardization of tasks and, to each observer, seem to be seen and understood very differently.

My experience in helping to build “structured on-the-job training” programs from a detailed job and task analysis caused me to reflect on those internship experiences. The structured On-The-Job Training Plan and On-The-Job Training Checklists binders of a Proactive Technologies program seem to help a new-hire and incumbent worker learn. Therefore it is not a stretch that they would help the intern learn, follow and perform a subset of tasks that can be learned during the internship period. It accelerates the process and provides a more deliberate, documented work experience. Read More


The Key To Effective Maintenance Training: The Right Blend of Structured On-The-Job Training and Related Technical Instruction

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 a lot of my career as Dean of Corporate and Continuing Education at community and technical colleges, in several states. Where we could, we tried hard to provide the best core skills development delivery for technical job classifications the employers in our community requested. We often did this working off the limited, and often suspect, job information the employer could provide to us.

Often we were up against budgetary constraints that limited our efforts to customize programs and keep the programs up to date when the instructor was willing to maintain the relevance of the program. If that wasn’t enough, school leadership often showed ambivalence toward adult and career education due in part to the fact that its demand was driven by gyrations in the economy. Furthermore, the institution was built upon, more familiar with and understood better credit courses for the more stable subjects such as math, science, literature, history and the social sciences.

click here to expand

We tried a lot of innovative programs for employers in the community within the constraints mentioned, but if I was to be honest we rarely kept up. What we thought we knew of the targeted job classifications and their requirements, and upon which our programs were built and measured, seemed to become increasingly misaligned within just a few years. Not only was advancing technology putting pressure on the content of our learning materials and program design – a constant push toward obsolescence – the employers were continually rethinking the design of their job classifications to meet their business goals and budgets. We were finding less and less similarity in job classifications between employers, by job title and job content.

Inevitably, and not from lack of effort or desire, it was difficult to keep technical curriculum current to within 5-10 years. The “Maintenance” job classification was a perfect example and could be incredibly different from company to company. In the early days, Maintenance was thought of as multi-craft; a maintenance person was responsible for maintaining all aspects of the operation. Some companies tried to hold onto that concept of Multi-Craft Maintenance but, as Multi-Craft Maintenance Technicians were becoming harder to find and therefore required higher pay, more and more companies began to deviate from multi-craft to specialty and single-craft positions that cover only limited areas such as facilities, electrical or mechanical. Some Maintenance positions did not include HVAC, some were primarily focused on servicing machines but not repair. Some employers subcontracted out facility maintenance and instead had their Maintenance employees perform preventative maintenance tasks on everything from manual machines to PLC driven multi-axis machines, to robots and robotic manufacturing machines – leaving the servicing to the warranty and/or contracted OEM experts. Read More


When Wages Rise for Skilled Labor, Can Your Firm Maximize Worker Value and Minimize Investment?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Ideally, wages rise for most job classifications when conditions are right to match the rising cost of living that an expanding economy brings. As skilled workers find their rightful full-time place, they leave openings behind them that employers need to fill. Competition for the most skilled of the remaining skilled leads employers to adjust wages and benefits accordingly to be competitive.

Rumblings point to the fact that wages for skilled workers have not kept up and a major adjustment is long overdue. When wages rise, will your firm feel the affects of added labor costs or will they adapt to increasing wages and realize offsetting higher returns on worker investment?

click here to expand

The economic reasons for competitive compensation usually include the scarcity of labor, scarcity of relevantly skilled labor, abundance of job choices yielding migration of the skilled workers with choices, increasing technical nature of jobs, and an expanding economy yielding internal promotions that create openings both above and below current job classifications. These all increase the level of competition for highly skilled workers that leave job openings in its wake.

This perpetual labor volatility is more unique to the United States than to other developed economies. European government and business policies facilitate workforce development efforts based on more accurately predicted labor needs. Economic policies have a purposeful affect on the corporations that thrive, and toward workers and the available jobs today and those to come. Students are exposed to career opportunities starting in grade school which leads to focused interest by middle school school, leading to paid vocational training and apprenticeships before leaving high school. For those wanting to continue college in their chosen profession, apprenticeship training is coordinated with academic learning to promote growth in each and time in both to reinforce each effort.

It is much different here. The U.S. does not believe in long-term planning for the greater good. Many like to believe that this driven by a policy of laissez faire or “let it be” or “let it go.” Other economists claim that this is not a policy as much as it is neglect. Still others see this version of laissez-faire as very selective and that the government does intervene to the betterment of some individuals, companies, and industries to the detriment of others. Read More


Read the full May, 2021 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

 

Posted in News

Proactive Technologies Report – April, 2021

Costs Associated With Unstructured, Haphazard Worker Training (Part 1 of 2)

by Dean Prigelmeier, President of Proactive Technologies, Inc.

I have met with many employers, in most industries, since 1987 when providing technical workforce development services. Often I am led to draw upon my own experiences when I worked in product configuration management, quality assurance, quality control and human resource development positions before starting my own company. After all, it was my frustration with the state of common practices in improving, measuring and managing performance that led me to start my own business. I hoped to help other employers address the issues that I was not allowed to in the positions I held due to interdepartmental friction or strict organizational boundaries associated with larger corporations.

I have many memories from that period, but there is one that continues to perplex me when I see it manifested at companies I visit. Sometimes I get the shivers and a foreboding sense of déjà vu.

click here to expand

Without exception, management expresses shear excitement when showcasing their latest technology and innovations. Equipment that will do what they previously have been doing but now faster, better and cheaper. New and better “best practices” and processes from continuous improvement efforts. Though impressed, I am reminded of the tradeoffs that must be considered in order to take advantage of the latest technology or process, or risk not realizing the improvement’s full potential.


The question is, “what truly takes less time and keeps costs down; throwing two people together and hoping for the best or a thoughtful, structured and deliberate task-based on-the-job training program for the ‘accelerated transfer of expertiseTM?’”


Prior to starting my own company, while working at one major aerospace manufacturer in the quality control department, a department meeting was called to inform us that within the week three $500,000 Zeiss coordinate measurement machines were going to be installed. Of course we were excited – this was truly state of the art at that time. The equipment was delivered, carefully installed and calibrated as advertised and each quality inspector couldn’t wait for their turn to learn how to use 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 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 coarse 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 short-comings 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.

click here to expand

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:

  • Unstructured, inconsistent and incomplete training;
  • Uneven and uncertain motivation;
  • Conflicting operating orders; Read More

The Key To Effective Maintenance Training: The Right Blend of Structured On-The-Job Training and Related Technical Instruction

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 a lot of my career as Dean of Corporate and Continuing Education at community and technical colleges, in several states. Where we could, we tried hard to provide the best core skills development delivery for technical job classifications the employers in our community requested. We often did this working off the limited, and often suspect, job information the employer could provide to us.

Often we were up against budgetary constraints that limited our efforts to customize programs and keep the programs up to date when the instructor was willing to maintain the relevance of the program. If that wasn’t enough, school leadership often showed ambivalence toward adult and career education due in part to the fact that its demand was driven by gyrations in the economy. Furthermore, the institution was built upon, more familiar with and understood better credit courses for the more stable subjects such as math, science, literature, history and the social sciences.

click here to expand

We tried a lot of innovative programs for employers in the community within the constraints mentioned, but if I was to be honest we rarely kept up. What we thought we knew of the targeted job classifications and their requirements, and upon which our programs were built and measured, seemed to become increasingly misaligned within just a few years. Not only was advancing technology putting pressure on the content of our learning materials and program design – a constant push toward obsolescence – the employers were continually rethinking the design of their job classifications to meet their business goals and budgets. We were finding less and less similarity in job classifications between employers, by job title and job content.

Inevitably, and not from lack of effort or desire, it was difficult to keep technical curriculum current to within 5-10 years. The “Maintenance” job classification was a perfect example and could be incredibly different from company to company. In the early days, Maintenance was thought of as multi-craft; a maintenance person was responsible for maintaining all aspects of the operation. Some companies tried to hold onto that concept of Multi-Craft Maintenance but, as Multi-Craft Maintenance Technicians were becoming harder to find and therefore required higher pay, more and more companies began to deviate from multi-craft to specialty and single-craft positions that cover only limited areas such as facilities, electrical or mechanical. Some Maintenance positions did not include HVAC, some were primarily focused on servicing machines but not repair. Some employers subcontracted out facility maintenance and instead had their Maintenance employees perform preventative maintenance tasks on everything from manual machines to PLC driven multi-axis machines, to robots and robotic manufacturing machines – leaving the servicing to the warranty and/or contracted OEM experts. Trying to find the right balance between an effective Maintenance program that gives every employer what they wanted but does not train for skills that one might never have a chance to use and master and most likely would forget, proved increasingly difficult to say the least. Read More


Workforce Development Realism: Properly Weighing Structured On-The-Job Training and Related Technical Instruction

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

With all the distractions caused by COVID-19 pandemic, employers and workforce developers are being forced to reevaluate what they thought were effective workforce development strategies. Work is being redefined, jobs are being redefined, and people are being reassigned to adjust to changing supply chain requirements and to the new realities of work. Unlike any time in history, except perhaps the Crash of 2008 and the Great Depression of 1929, have employers been required to expedite such mass reconsideration of its human assets – all while under a national health threat.

Prior to this pandemic, adult and continuing education was pretty settled in their approaches to training workers for today’s work. Classes and certificates were linked to what they believed were today’s realities, But the paradigm shifted with no indication yet that things will entirely return to that “normal.” Not only are educational institutions redefining themselves, their products and services, and their delivery methods, they are doing so while employers are in the process of redefining themselves to their new operational needs. Both transformations are impacting not only trainees who were currently taking related technical instruction classes at a community college in preparation for employment, what the employer does once they hire the individual in many cases is less defined now then it was poorly defined prior. In short, this is a period of flying blind to a moving target.

click here to expand

When Education encounters disruptions such as covid-19, institutions shut down, instructors wait at home, training providers are sidelined, and some of these even move on if the opportunity arises. Yet their employer – many left open as essential industries – are continuing to employ, informally train incumbent, new and transferring workers. Those employers that invested in a structured on-the-job training infrastructure were able to adapt and minimize the impact. Even those without a formal structured on-the-job training system were better positioned to continue to deliver training (albeit informal and ad hoc) compared to educational institutions and providers that were essentially shut down waiting for the green light on when and how to reopen.

There is clear role for related technical instruction in workforce development, which is to build essential core skills and competencies in trainees so they can learn and master the tasks the employer needs done. But if the employer has a structured on-the-job training infrastructure in place, not only can they accept more prepared candidates they can quickly drive them and incumbent workers to sustained maximum capacity. Even better, they can keep the worker development process going while they wait for their related technical instruction partners to redefine themselves and recover. Employers have the facilities, the equipment, the subject matter experts and the need, so to allow them to be reluctant or timid workforce development partners when they would like to be more aggressive is an unfortunate mistake.

This structured on-the-job training model builds the framework to host internships with task-specific training, and apprenticeships of traditional and non-traditional job classifications – without the bureaucratic headaches associated with apprenticeships of the past, nor the heavy costs of hosting when the return on investment was hard to predict or explain. Read More


Read the full April, 2021 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – March, 2021

More Education Alone Won’t Fix Flat or Declining Wages, But Appropriate Compensation and Stable Job Markets Can Make College Worth It

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Having several degrees myself, I can say that I am a strong believer in higher education. I sometimes take issue with the quality and relevancy of courses or degree programs, but I would always encourage an individual to consider the value of acquired knowledge to their life plans and the additional doors it may open.

I say this even though many of us who have achieved a higher degree silently questioned how much of their degree really mattered, or how much was forgotten for lack of application when an opportunity to apply it came along too late.

click here to expand

All said, two major trends influence my need to add a caveat to my encouragement to pursue higher education. First, be aware of the endless increases to the cost of higher education and, second, be cognizant of the instability of target job classifications and careers that not only renders a two or four-year degree irrelevant but, today, may leave the graduate empty handed and swamped with student loan debt. Even if the graduate is able to find a job it their expected field, the shock of unexpectedly low and flat wages may harness them to an unfulfilling job for life and sliding backward with all-consuming debt.

According to the Huffington Post, the cost of a college degree in the United States has increased “12 fold” over the past 30 years, far outpacing the price inflation of consumer goods, medical expenses and food. Referencing a Bloomberg study, college tuition and fees have increased 1,120 percent since records began in 1978. Using a chart to explain its findings, Bloomberg reports that the rate of increase in college costs has been “four times faster than the increase in the consumer price index.” It also notes that “medical expenses have climbed 601 percent, while the price of food has increased 244 percent over the same period.” Additionally, according to the National Center for Education Statistics, since 2013 the tuition costs continued on its upward path.

While education costs have skyrocketed and with student loan debt reaching $1.5 trillion, wages for graduates have continued to stay flat or decline. While it is still true that advanced degrees have a tendency of leading to higher starting wages and higher wage caps for the field, the number of fields this still holds true for are dwindling as these jobs are redefined, relocated or staffed with foreign workers invited to work for less. This makes working out of student loan debt slow, laborious in itself and often impossible. Read More

 


“Realistic Job Previews” Can Be a Useful Tool for Measuring a Prospective Employee’s Transferable Task-based Skills

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

The hiring process can be difficult for both the employer and the prospective employee. A wrong decision can cost each party a lot of time, money and opportunity. An unwanted outcome based on the employer not providing an accurate picture of the job, work environment and work expected to be performed can be avoided with a “Realistic Job Preview.” (“RJP”).

Wikipedia points out that “Empirical research suggests a fairly small effect size, even for properly designed RJPs (d = .12), with estimates that they can improve job survival rates ranging from 3–10%. For large organizations in retail or transportation that do mass hiring and experience new hire turnover above 200% in a large population, a 3–10% difference can translate to significant monetary savings. Some experts (e.g., Roth; Martin, 1996) estimate that RJPs screen out between 15% and 36% of applicants.

click here to expand

When RJPs are less effective, “According to researchers there are four issues that challenge RJP:

1. Recruiters do not share RJPs during interviews. (Rynes, 1991). Read More


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.

click here to expand

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.

The Alber Center realized it could partner with such an organization, Proactive Technologies, Inc., early on in 1996 to provide that level of service to its customers in a partnership that provides “turnkey” project services to employers. This approach combined related technical instruction provided by OSU-Alber Center and its network of specialists and structured on-the-job training provided by Proactive Technologies and its staff. Employers that The Center worked with over the years had been not only receptive, but some clients had continued to utilize this approach for over 20 years. And today, many of these visionary employers realize that they were among the first to embrace and implement an approach for which other employers still to this day only wish and hope to experience.

I retired from the Alber Center in 2016 but continued to partner with them on projects of mutual interest as I began my own consulting business. The Ohio State University made the decision to close the Alber Center in 2020.

Today, I continue to help employers, and local and regional government agencies, with workforce development projects, often partnering with Proactive Technologies, Inc. Their approach to worker development may be unique in its comprehensiveness, but its practicality and efficiency is still a “no-brainer” for CEOs and General Managers. Read More


Appreciating the Value of Labor

by Dean Prigelmeier, President of Proactive Technologies, Inc.

For expanding and improving businesses that have the capital for the investment in new equipment or processes, attempting to become or remain competitive, the level of investment is not as important as the return on that investment. This consistent practice of determining where to best place capital for the highest return should apply to labor. What is “paid” for labor is not as relevant as the value it adds to the operation and, ultimately, profit; the return on worker investment.

The lack of appreciation for the difference between a “training cost” and a “training investment”  is understandable because it is rarely contrasted. The college textbook entitled Financial Accounting: An Introduction to Concepts, Methods and Uses, defines “direct labor cost” as the “Cost of labor (material) applied and assigned directly to a product; contrast this with indirect labor cost.” Indirect labor cost” is defined as, “An indirect cost of labor (material) such as supervisors (supplies).” There is no mention of an expected return on investment. Generations of cost accountants have been taught that there is no good that comes for higher labor costs, which to them is determined by the level of staffing and wage levels. There is no differentiation between strategic labor costs and uncontrolled labor costs.

click here to expand

“The profit from, and value of, most worker’s labor comes from task-based work, so all inputs that drive workers to high-performance, high-capacity output are investments.”


As discussed in many articles in past issues of the Proactive Technologies Report, although labor costs are considered direct costs from an accounting standpoint, they should be more importantly considered as an investment in the operation’s overall level of competitiveness. Operations may vary as to the level of return on investment from labor, but each worker’s cumulative expertise gained while employed becomes an asset to the operation akin to intellectual property and, therefore, wages and compensation paid to develop a worker are an investment.

As many operation managers have found out, drastic moves like reducing the wage rates by 20%, 30% or more, while expecting to maintain the same output quantity and quality, chases off the workers with the gained technical expertise…because they can leave. Read More


Read the full March, 2021 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – February, 2021

How Much Would “Full Worker Capacity” Through Full Job Mastery Be Worth to Your Firm?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

According to Ed Timmons, CEO of the National Association of Manufacturers, “our labor costs in the U.S. are still 20% too high.” If he means that employers may be paying too much for unused or unusable worker capacity, and they should seek methods to develop it, I can agree with that. If he means employers should focus on spending enormous amounts on finding alternatives to labor, or randomly cutting workers, or asking workers to work for less wages and less benefits, I would say “hold on a minute.”

Given the growing fear and discontent by workers who still haven’t recovered from the Crash of 2008 and now knocked down with the Covid-19 pandemic, they may want a seat at the discussion. These workers will be trying for some time to, once again, regain value in their 401K and other impacted assets and to rise to the wage level they once had for the talents they possess. Many have the perception, wrongly or rightly, that their employer and their shareholders built great profits while workers slid backward. Many families, today, are challenged by rising prices of nearly everything.against eroding wages. This preoccupation with driving down labor costs, while reporting to Wall Street record quarterly profits, may benefit shareholders in the short-run, but it is surely illusionary and self-destructive in the long-run as the Crash of 2008 should have demonstrated, but the Covid-19 pandemic might remind.

click here to expand

As recently reported in Industry Week, a group of CEOs from major U.S. corporations, The Business Roundtable, released a statement saying that shareholder value is no longer its primary focus – shifting their practices to line up with their new definition of the “purpose of a corporation.” The new vision emphasizes investing in employees, supporting communities, dealing ethically with suppliers and providing customers with value. “The group signed the Business Roundtable’s new Statement on the Purpose of a Corporation. It’s a sea change that moves companies away from the age-old philosophy that companies’ main goal is to look after shareholders.”


There is an effective, proven alternative to cutting labor costs through gutting organizational capacity.


Focusing solely on shareholder profits has stunted the long-term viability of many a thriving organization. Under the cover of “making the firm more efficient,” when more profits could not be derived from expanding the market and market penetration, some investors forced cuts on firms that determined the firm’s long-term capability to compete, take advantage of emerging market opportunities, and adapt to changing markets and turbulent economic forces. Read More


Have You Captured The Expertise of Your Critical Hourly and Salary Positions?

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

Starting in the late 1980’s, employers became increasingly concerned with succession planning; ensuring salary workers were being groomed to replace critical senior employees in the event of retirement or voluntary/involuntary separation. It was realized that the potential disruption – direct and the ripple effects – caused by an unplanned void in the leadership chain might be perceived as a threat to shareholder value. Shareholders, too, wanted assurances that maximizing a firm’s performance was not tied to one or two invaluable people.

Compounding the concern was the realization that the workforce was aging at all levels, and that retirements were a certainty. Prior to the Crash of 2008, employer’s concern over this was amplified by anecdotal reports from other employers already experiencing the impact. A movement toward a remedy began to take shape, and not just for high ranking salary positions, but technically critical salary positions and even hourly positions that with a loss of one or a few technical experts might disrupt operations and impair a firm’s viability.

click here to expand

For decades prior to the Crash of 2008, Proactive Technologies, Inc. worked with a lot of employers by job/task analyzing their critical job classifications – initially hourly positions but a growing salary class of positions as well. This approach “captured the expertise” of the aging workers to use it to develop the tools which would allow the company to train nearly anyone with a sufficient core skill base, replicating experts as needed.

Then the Crash of 2008 happened and employers found themselves unexpectedly and unwillingly accelerating the loss of technical experts at all levels. For employers late to the game, there was no longer time to capture expertise; it had already left the building. We now see this phenomena repeating itself with the current Covid-19 pandemic. Read More


Workforce Development Partnerships With Substance: My Experience

By Randy Toscano, Jr., MSHRM, Executive Director of Human Resources, Paris, Texas Regional Medical Center

Partnerships between employers and local educational institutions/training providers are a tricky thing. Not every employer knows clearly what they need nor can they articulate the need, and not every educational institution can understand the need, or has products or services available or relevant enough to make a difference. If either of these realities are present, or worse both of them, it can make worker development partnerships difficult to disappointing.

Employers are closest to the work that they need performed by the worker, which is usually very different from the employer down the road. Yet employers rarely bother to document what makes up that work to articulate it in an understandable way to an educational institution or training provider. If you doubt that, take any of your job classifications and try to explain it in enough detail to train from it.

click here to expand

“Our partnership, located in northern Ohio, was the first implementation of the US Metalworking Skill Standards in the country.”


When in doubt, some employers pull out a sample written process and a few random specifications for compliance to focus the discussion. Seriously, I have been in meetings when an employer pulled out a 15 year old job description, which was a cut-and-paste of a 20 year old job description, and gave it to the community college and said, “we need workers trained for this.” Not surprisingly, they are disappointed and disillusioned when what the community college came up with seems irrelevant when shown to workers currently in the job classification.

There are at least two critically important reasons why current and accurate job data makes or breaks a worker development partnership. Read More


Explaining Your Process Training to Auditors, Prospects and Clients

by Proactive Technologies, Inc. Staff

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. 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.

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.

click here to expand

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.

In the event of an audit by by an internal department, a certifying agency, a client or a prospective client, explaining how a worker is trained to master a task critical to a repeated high level of quality might be difficult to impossible. And answering how a worker, who is thought to have mastered a task, is updated when the process is improved, redesigned, affected by changes in technology, changeover of product line or part of an orchestrated improvement program might be even more difficult.

Management may try to explain who is trained, who trained them and what exactly the training consisted of by pulling out time cards with training entries, loose training or attendance rosters, an Excel spreadsheet or a pie chart. A smart auditor or concerned client might not be so impressed. Read More


Worker Capacity; Malperformance Cause-Effect

by Dean Prigelmeier, President of Proactive Technologies, Inc.

How often do we stop and ask ourselves why a worker is malperforming, under-performing or over-achieving? My guess is far too infrequently. Perhaps it is because of the hectic world we live in, with little time to study things deeper or explore an event closer. Perhaps because some of us feel helpless to do anything to correct it or exploit it (in the case of the over-performer) so we leave it alone. Perhaps the internal experts we rely on for answers lack the proper training themselves (in training program development, implementation, performance measurement) to be helpful.

However, so much of what separates a high performing company from a mediocre or failing company depends on the collective effectiveness of the workforce. And the underlying desire to correct bad task performance, and proactively develop and maintain good task performance to replicate star performers, seems common, logical and ubiquitous.

click here to expand

Generally speaking, when we troubleshoot an error in performance, we would like to get to the cause, such as “operator error,” “equipment malfunction,” or “flawed material.” But this is more like isolating the area in which the error happened. We can troubleshoot a machine or send material to the lab for testing, but often the analytical “tools” to dive deeper into the human factor are lacking or inadequate, and the will of management to devote the time soft. The notion of worker “capacity” is a very useful tool that can help a company be proactive in preventing most of the common employee-related errors.

According to the Business Dictionary, “capacity” (in a manufacturing sense) is defined as, “Highest sustainable output rate (maximum number of units per month, quarter, or year) that can be achieved with current resources, maintenance strategies, product specifications, etc.” This is fairly easy to relate to a piece of machinery, a department, or a company. But when applied to a single worker, some loose variables that apply broadly need to be tightened to be useful.

There are several ways a worker can learn to perform. The operator can go through general motions that they saw someone else perform. They can take in the raw information they discover, or are presented, and formulate their own process. These are the most common. Deliberate task-based training is often spotty or non-existent, and is easy to explain away if the infrastructure and tools aren’t in place. On the other hand, structured on-the-job training deliberately trains each worker to perform each task as the resident experts conceived it, repeating the same level of quantity and quality once the task is mastered. Read More


Read the full February, 2021 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

 

Posted in News

Proactive Technologies Report – January, 2021

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 thirty 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: 30 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.

click here to expand

“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.”

It is important to understand that the types of skills that employers are most concerned with – especially employer-specific task-based skills – most likely have not been in the local workforce, nor have any programs been available in local institutions to develop them, simply because these new jobs, with new skill requirements, have never been in the area. The types of skills needed for most modern manufacturing and advanced manufacturing have never been developed because the need was not present nor the data on these jobs available. Even if the need was present, by the time the skill is recognized, a program developed and a worker completed the learning, manufacturers either moved on or moved out. Read More


More Employers Finding Ways To Strategically Ensure Fair Pay

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

In an article appearing in IndustryWeek entitled “Trying to Ensure Fair Pay, Employers Are Changing Policies,” it noted that according to a recent employer survey “2018 Getting Compensation Right,” “60% of U.S. employers are planning to take some action this year to prevent bias in hiring and pay decisions.” Further, 53% “are planning on or considering adding a recognition program.”

The report went on, “37% percent are planning on or considering changing criteria for salary increases. Among employers not redesigning their programs, most are making changes to the importance of factors used to set base pay increases.”

click here to expand

In short, the report led one to believe that employers overall wanted to make pay fairer, but one got the impression that there was no clear path. It is difficult in this environment to talk about raising workers wages without shareholders mounting a revolt. But with the reported shorted of skilled labor, the difficulty in training workers with a lean staff and no structure, strategy or record keeping, etc. an area of compromise has to be reached. If not, skilled workers will not apply, or stay, and the shareholder profits will definitely be affected. It is the “bullet that needs to be bit” to get the economy working like it did so well post World War II when everyone felt they had a chance at doing well for themselves and their family.

One easy-to-set-up, easy-to-implement, low investment/high return strategy for paying workers for the documented value the employee has accumulated has been discussed in previous Proactive Technologies Report articles, most recently “A Pay-for-Value Worker Development Program – Fair to Management and Workers, and Effective Too!” and previously in “Pay-For-Value Employee Programs.” Read More


Jack of All Trades, Master of None

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

Jack of all trades, master of none” according to Wikipedia “is a figure of speech used in reference to a person who has dabbled in many skills, rather than gaining expertise by focusing on one.”

The shortened version “a jack of all trades” is often a compliment for a person who is good at figuring out how to fix and do things, and who has a broad knowledge base. These types may be a master of integrating diverse knowledge topics, such as an individual who knows enough from many learned trades and skills to be able to bring them together in a practical manner to perform a task that is a subset of a craft or trade area. This person considered a generalist rather than a specialist.

click here to expand

There are many examples of this. The individual who can do his/her taxes each year, but would not be qualified to do others. Someone who can figure out what is wrong with the dishwasher, but reaches a point where the repair is out of reach. A lawyer who has passed the bar, but failed to specialize in an area of law to be the “go-to” guy for a particular case.

The “master of none” element appears to have been added to the phrase later to augment the meaning of the compliment; making the statement less flattering to the person receiving it. Today, the phrase used in its entirety generally describes a person whose knowledge, while covering a number of areas, is superficial to all of them.

Some modern apprenticeships are so generally focused that it is unclear who they benefit. Including general industry skills and even skills that may become useful in the future is well-intended, but the primary focus should be the mastery of tasks the current or identified future employer needs performed. That is the historic meaning of an apprenticeship. Even as a secondary priority, the hedging of bets that industry-general skills will be needed in the future depends greatly on whether jobs requiring them will materialize and the apprentice will get to apply these skills before they forget them from nonuse. An over-emphasis on predictions can yield students that graduate with irrelevant skills, and employers left with the responsibility to provide more than the task-based training one would expect. Read More


Maximizing Worker Capacity Maximizes Shareholder Value…If Done Right

by Dean Prigelmeier, President of Proactive Technologies, Inc. 

To many, “maximizing shareholder value” has become synonymous with layoffs and short-term cuts that will typically have harmful affects on long-term operational capacity. An often overlooked, but more productive, goal is “maximizing worker capacity” and should be a priority for every organization – publicly traded or not. Leaders of an organization are quick to say, “our workers are our greatest asset.” Yet, efforts to maximize returns on this asset are often hard to recognize or understand.

Maximizing a worker’s capacity maximizes worker value. Collectively, maximizing each worker’s capacity maximizes an organization’s value, and that of the shareholders. It is as simple as that.

click here to expand

Publicly traded companies, and even some privately held companies getting ready to go public, seem preoccupied with increasing quarterly earnings per share above all else. A consistently high level of earnings per share over the long-run no longer seems adequate for some. If the market is slack, an organization might carve costs out of the company from even a lean operation rather than disappoint investors. When labor is viewed as a “cost” rather than an asset, the temptation might be to cut benefits and wages. This may prop-up numbers for the short-term, but a demoralized workforce might not produce the same levels of output and quality yield as before. Sadly, a decision might be made in following quarters to cut benefits and wages even more, followed by workers if needed to make the magic number. All the while, worker and operational capacity, along with enthusiasm and loyalty, are eroding.

How does this erosion happen? When workers are cut, the work they used to perform gets transferred to the remaining workers. If there isn’t a mechanism to quickly “transfer expertise” to the worker expected to take on the new responsibilities, capacity drops until the trainee comes up to speed. For as long as the transfer takes, one well-paid subject matter expert trainer is being paid to train the paid trainee, yet productivity improvement may be negligible. And further complicating the process, perhaps no one thought about capturing the exiting workers expertise before they left the building, so some “reinventing the wheel has to occur.” Multiply this across all affected workers and the labor and opportunity costs may wipe out any anticipated gains by cutting worker payroll.

Proactive Technologies Report has presented many articles about the value of workers, how structured on-the-job training increases the worker’s capacity to perform more tasks to a level of mastery, the high cost of worker turnover, and more. It is a concept we feel strongly about. Yet we are continually surprised how this topic is avoided by company’s accounting departments and upper management when they feel inclined to trim costs here and there, avoiding cultivating the enormous wealth before them – waiting to be harvested. What would be the value of just a 10% increase in worker capacity, operational capacity, quality and quantity of work, and worker compliance (safety, ISO/TS/AS, etc.) to any operation?  Read More


Read the full January, 2021 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – December, 2020

Thirteen Good Reasons Why Structured On-The-Job Training Should be Part of Your Business Strategy

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Many articles have appeared in the Proactive Technologies Report covering how Proactive Technologies’  PROTECH© System of managed human resource development can address many of the workforce development scenarios; from individualized, customized structured on-the-job training for a specific employer for specific job classification(s), to regional partnerships servicing multiple employers while partnering with regional educational institutions, private training providers, workforce development and economic development agencies to provide the related technical instruction. There are many winners with this approach, but none so important as the employer and the employee.

Several articles have appeared in the newsletter explaining how Proactive Technologies sets up for each client a unique, structured on-the-job training program, provides implementation support to ensure it is running effectively and provides documentation and monthly reporting to drive each employee’s progress toward full job mastery. The most recent article appearing in the February, 2017 issue entitled “Tips for Establishing Your Company’s Training Strategy – Practical, Measurable, Extremely Economical and Scalable“. While the article hints on some of the benefits to the employer-employee stakeholders, it might be more advantageous to focus on the benefits themselves rather than leave them nuanced. More can be found in other articles at the News and Publications page of the Proactive Technologies, Inc. website.

click here to expand

There are many significant reasons that structured on-the-job training will help any employer really maximize the value of each worker employed with the company, improve operational efficiency and lower the risk of non-compliance (ISO/TS/AS, Safety Mandates, EEOC Mandates). These are not just buzzwords. Here are thirteen reasons (not in any order of importance, since some may be more important to different stakeholders) to consider. Read More


The High Cost of Employee Turnover

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

Most companies are dealing with uncomfortably high levels of turnover. When one separates out those employers that facilitated high turnovers to lower labor costs, there are many reasons for this. However, there is no denying the many costs associated with this that exist and the effects that often compound. These costs are often unknown and unmeasured, but all employers should keep an eye on this challenge and explore its full impact on the organization.

It seems counter-intuitive, but there are some who even recently promoted a business strategy that encouraged employee turnover. In a July 21, 2015 Forbes article entitled “Rethinking Employee Turnover,”  author Edward E. Lawler III, “Indeed, the turnover of some employees may end up saving an organization more money than it would cost to replace that employee. The obvious point is that not all turnover should be avoided-some should be sought.” The question is how to determine which ones to keep and which to encourage to leave. Without accurate measures of costs and values of a worker, good employees may be pushed out along with the “bad” and then the true costs of this action realized by the employer after it is too late.

click here to expand

Last year, Christina Merhar of ZaneBenefits wrote in her blog entitled “Employee Retention – The Real Cost of Losing an Employee,”  “Happy employees help businesses thrive. Frequent voluntary turnover has a negative impact on employee morale, productivity, and company revenue. Recruiting and training a new employee requires staff time and money. According to the Bureau of Labor Statistics, turnover is highest in industries such as trade and utilities, construction, retail, customer service, hospitality, and service.”


“For the costs associated with the loss of 1 or 2 employees, the company can establish a holistic approach to worker selection, development and retention that will significantly lower both turnover rates and turnover costs, AND increase the value of all employees in that job classification.”


“Studies on the cost of employee turnover are all over the board. Some studies (such as SHRM) predict that every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. For a manager making $40,000 a year, that’s $20,000 to $30,000 in recruiting and training expenses. Read More


Ensuring Worker Training Complies With ISO, AS, TS and Other Quality Mandates

Proactive Technologies, Inc. – Staff 

Each of the quality programs typically modeled by manufacturers and service organizations is rooted in the American National Standards Institute(“ANSI”) program for quality assurance and control that served us up to the 1980’s. What each of the subsequent models tries to achieve is simplicity, standardization and verifiability. Audits are used to ensure these attributes are present.

When compliance with ANSI requirements became inconsistent among manufacturers, International Standards Organization (“ISO”) rewrote the standards to make them more compliable and encouraged an international acceptance of the standards. ISO models allow the host to be certified to a part/process, or to its people performing a process or as an overall facility producing and product(s)/service(s) for export. In any model from a worker’s contribution to the product or service, the fundamental standard is whether there are clear, compliable processes in place to control and measure a repetitive, consistent level of quality. The next standard is whether the host makes a documented effort to train/retrain workers to the processes (when changes occur). The third standard is whether the host has a records system that accurately tracks each worker’s progress toward “mastery” of the processes they are responsible to perform.

click here to expand

ISO was the basis for first the QS model (automotive industry) that later became the TS16949 model. The TS and AS9100D (aerospace industry) models are similarly structured when it comes to training. During audits, the auditor looks for evidence that all three requirements are met, seeking a pattern of consistency in past records that the system appears to have the attributes that will lead to the same consistency going forward. Customers may use similar techniques to audit vendors and suppliers. The new National Aerospace and Defense Contractor Accreditation Program NADCAP (for prequalifying defense and commercial aerospace industry suppliers to a higher level of consistency) as well as other industry-specific standards developed or being developed have similar requirements for training. The reason that all of these models follow a quality standard for worker training is that it is measurable, unlike the old days when auditors encountered a drawer full of rosters or a partially current Excel spreadsheet – with no real evidence of  the connection between training, the work to be performed and the worker to perform it.

Taking a class on even closely related theory does not prove a worker can perform a process, but it might show the worker has the core knowledge and possibly lower-order skills to learn the unique processes to be performed, which is a good basis upon which to start task-based training. From a quality assurance perspective, documentation showing that process-based on-the-job training was recently delivered (and any process revisions were since conveyed) correlates to the decreased odds of non-conformance for that process. That is the reason quality assurance and control models seek that evidence in an audit. Read More


From Innovation to Implementation – Success Depends on Preparedness of Those Executing

by Dean Prigelmeier. President of Proactive Technologies, Inc. 

How often does a product or service go straight from research and development to service implementation or product production? A skilled, experienced worker may be able to overcome the ambiguity of this hand-off, but it seems there is, today, a shortage of skilled, experienced workers; baby boomers finally decided they can, or have to, retire, or some companies experience high turnover rates of replacements, or most employers say they lack of skilled candidates…or even someone skilled enough to train them.

There are many reasons that this loosely organized hand-off still exists:

  • Perhaps from a sense of futility, with engineers seeming to have given up on the notion of training workers first to ensure immediate output quantity, quality and consistency;
  • Perhaps it is from knowing that the organization lacks a “system” in place to facilitate the transfer;
  • Perhaps it is from the belief that, especially in the early stages, the product or service may go through many changes before a coherent, repeatable process settles in and when it does the next product or service has been introduced;
  • Perhaps from a sense of superiority, that “I know how to do this [because I designed it] so everyone else should know what to do.”
click here to expand

For those who recognize the need for worker training and try to incorporate it manually while trying to keep up with engineering and technological innovations, it is common to find a training program released well into the last days of the life cycle – just in time to train workers for the things they made and serviced years before. Manual methods just do not keep up anymore, and they haven’t for the last 30 years. This doesn’t mean we should “leap-frog” to Artificial Intelligence or online training. The cost alone would dissuade anyone from utilizing it for this type of task-specific training, never mind the inappropriateness.

The most efficient and effective path to expediting a process from development of the process (including all pertinent aspects) to implementation is displayed. The task should be the central focus, with each stakeholder department contributing its input and metrics of accurate performance. Simply stated, the engineer can draft a process, then the other departments can add their components in order. Once all inputs are in, everyone can review and make changes based on each other’s observations and comments before a final document is released.

Too often departments are the focus of process development and implementation. Each department may contribute, but each department may also have its protocol, maybe even separate software or manual system, and each creating its own support document. A process making its way through this maze – back and forth with revisions and corrections – may take months. Making changes to it, for things learned in implementation, may not make it through the maze before the next request for change is submitted. Read More


Read the full December, 2020 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – November, 2020

Do U.S. Productivity Measures Measure Productivity?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

A disturbing emerging trend, particularly in the last three decades, concerns the accuracy and quality of the economic statistics reported to the public. You probably have noticed lately that monthly statistics such as Gross Domestic Product, U.S. International Transactions, Unemployment and Job Creation have been issued with encouraging numbers one month only to be quietly revised downward a few months later. Businesses, consumers and policy makers can only implement effective strategies  and correct potential dangerous courses if working with accurate data. One of those measures concerning worker relevance, development and effectiveness is “productivity.”

Think tanks have sprung up in Washington issuing reports and policy statements, and some put a cloak of perceived “credibility” around statements they release meant to support a policy direction or change its course – both to the benefit of a segment of subsidizing interests. Confusing us even more is the media’s propensity to report, as “news,” press releases emanating from these think tanks as if accurate, unbiased and inherently factual. Some may be, but when they are reported through the same careless filter, it throws them all into suspicion. The decrease in the number of accurate, readily available sources of news and facts can derail a life or business strategy.

click here to expand

Take for example the daily explanations by news and business show anchors of why the stock market gyrates up or down, as if the collective market can always be explained simply as, “the stock market reacted to the federal reserve’s decision to not act,” or “the stock market tumbled because of the results of the presidential election” – only to recover fully the next day. Could another simple explanation be that the market moved one way or another because groups with large holdings decided to move them?


“Unfortunately, however, figures on productivity in the United States do not help improve productivity in the United States.”
W. Edwards Deming

Another example is the preoccupation with what is referred to as “inflation,” which is based on the consumer price index (“CPI”). A “basket of consumer goods” was selected and periodic measurements of their retail prices are taken to see, primarily, if any inflationary forces exerted pressure on prices upward or downward during the period that might require an adjustment in central bank monetary policy. First, it is important to know which goods make up the basket.

Many years ago an effort was made to take out the goods prone to price pressures. This explains the stares at price labels by the shopper who heard on the news in the morning that inflation has not risen but is looking at prices in the afternoon that seem to continually rise. The decision was made that some goods didn’t need to be in the basket because consumers could substitute them with other, less-expensive goods and still be happy with the experience. For example, substitute mac and cheese for chicken. The trouble being in that even those prices rise.

According to Wikipedia, ”Core inflation represents the long run trend in the price level.” Read More


The “Imposter Syndrome:” How Employers Unwittingly Nurture It

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

Everyone is familiar with the imposter syndrome, even if unaware of the formal title. If left unmitigated, it can severely impact a worker’s self-esteem, productivity, ability to innovate, and boldness in solving problems. It can affect those around them, including family relationships, working relationships and a group’s unity of purpose. It may be a lot more prevalent today than it was decades ago.

Introduced in 1978 in the article “The Impostor Phenomenon in High Achieving Women: Dynamics and Therapeutic Intervention” by Dr. Pauline R. Clance and Dr. Suzanne A. Imes.Clance and Imes defined impostor phenomenon as “an individual experience of self-perceived intellectual phoniness (fraud).” According to the study, ”… researchers investigated the prevalence of this internal experience by interviewing a sample of 150 high-achieving women. All of the participants had been formally recognized for their professional excellence by colleagues, and had displayed academic achievement through degrees earned and standardized testing scores. Despite the consistent evidence of external validation, these women lacked the internal acknowledgement of their accomplishments. The participants explained how their success was a result of luck, and others simply overestimating their intelligence and abilities.” …this mental framework for impostor phenomenon developed from factors such as: gender stereotypes, early family dynamics, culture, and attribution style. The researchers determined that the women who experienced impostor phenomenon showcased symptoms related to depression, generalized anxiety, and low self-confidence.”

click here to expand

Although this study focused on women, the phenomenon is not confined to women whose insecurity might have been more “programmed by culture.” For example, the imposter syndrome, coincided with the emergence of a rapidly changing work environment moving towards – yet to be designed – automation, yielding an increasingly unstable work environment and rate of change. Many perceived their skill base relative to the evolving job requirements eroding, but could not understand it or explain it since the future was yet to take shape. In the 1980s, we saw the introduction of more computer processing power that reached the desktop, changing the nature of work employees were expected to perform and changing the target jobs for which career, technical, and four-year models of education were preparing workers. Without knowing the direction and depth of the change, even those employees solid in their careers of 20 -30 years began doubting their future and the future security of their families. Today, the rate of introduction of newer technologies makes even the most savvy “techy” feel vulnerable to obsolete.

Contributing to this growing self-doubt were a crumbling safety net as companies discharged their pension obligations, employers chose, or were driven, to off-shore first hourly jobs, then salary jobs such as legal, accounting, customer service and medical. Wages were driven down as some employers, whose operations remained in the U.S., imported technical labor who were willing to work for less pay and benefits, often requiring the incumbent worker to train their replacement.

Academics threw fuel on the fire promoting “gig economy jobs” as if these were comparable to jobs one could spend a career in and retire from. They said “no one should expect to be in a job forever,” trying to shame a worker into believing they were not worth the consideration while they themselves celebrated tenure and could count on a secure pension. Many recently found out just how supportive the government was about these jobs when gig workers and contract workers were denied unemployment benefits and stimulus help during the COVID-19 crisis.

Employers and industry will realize the undoing of the American worker psyche for decades and generations. Read More


The Skills Gap Solution; Employers Still Reluctant to Commit to Role Only They Can Fill

by Staff

Education cannot, and should not be asked to, close the “skills gap” on their own. Employers have been concerned about the “skills gap” since the 1980’s, and the nature and location of the job has continued to change…at an accelerating rate. Employers have convinced themselves to wait for education to close the gap. In the meantime, tremendous resources continue to be expended, but the gap continues to grow.

Educational institutions are not suited, staffed, funded and equipped to train workers for every job, for every employer, nor should they be. Educational institutions do their best work when they build the labor supply with strong, relevant basic and core skills (including STEM), and industry-general skills. Whether those efforts are worthwhile and the resources well-spent depend on two important things: 1) does an employer see value in hiring a graduate, and 2) is there a method in place to ensure those skills are integrated into mastery of the job-tasks the employer needs performed; the value that will influence the employer to retain them.

click here to expand

Only employers can train the worker on tasks they need performed and that affect their bottom line.  They have the need, the facilities, the most current equipment for their operation and the personnel with current expertise. Yet, in reality most employer’s methods amount to hardly more than pairing two people and hoping for the best. This is where the gap is most profound and continues to grow.


If  your organization recognizes this barrier to success, too, and would like to realign efforts and resources for guaranteed outcomes, take a few minutes to learn more about the
 PROTECH© system of managed human resource development and the accelerated transfer of expertise

The proprietary PROTECH© software system allows Proactive Technologies to provide a wide range of normally labor-intensive workforce development services in a fraction of the time and cost – with the savings passed to the client.

For decades, Proactive Technologies, Inc.™ has partnered with technical colleges, universities, community colleges, career centers, workforce development agencies, non-profit work centers and economic development offices. Proactive Technologies and its “accelerated transfer of expertise™” ensures each worker is developed to “full job mastery” quickly, efficiently and completely. Proactive Technologies sets-up the structured on-the-job training programs and provides technical implementation support so the employer can focus on business! This approach accelerates the effort to ensure the core skills achieved prior to employment are applied and reinforced before they have a chance to dissipate. 

Proactive Technologies has partnered with many economic development agencies to ensure employers moving, or expanding, to the region – from within the U.S. and internationally –  have the workers they need when they open their doors, not years later. Proactive Technologies’ approach helps with the growth of local businesses when they need to scale-up as the opportunity arises, not miss opportunities due to insufficient worker capacity. Read More 


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 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.

click here to expand

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.

So what does the number of hours spent in a job area tell a person about the skills attained by the apprentice? How is this seemingly subjective metric measured and how is it tracked? Does it matter?

Wikipedia describes apprenticeships as “The system of apprenticeship first developed in the later Middle Ages and came to be supervised by craft guilds and town governments. A master craftsman was entitled to employ young people as an inexpensive form of labour in exchange for providing food, lodging and formal training in the craft. Most apprentices were males, but female apprentices were found in crafts such as seamstress,[1] tailor, cordwainer, baker and stationer.[2] Apprentices usually began at ten to fifteen years of age, and would live in the master craftsman’s household. Most apprentices aspired to becoming master craftsmen themselves on completion of their contract (usually a term of seven years), but some would spend time as a journeyman and a significant proportion would never acquire their own workshop.”

Since the number of apprentices was limited to one or two at a time, the master craftsman spent enough direct-contact time with each to drive the skill development and recognize proficiency when the required tasks were mastered. The quality of the apprenticeship was measured in terms of time in the craft, and somewhat by the quality of the skills developed. The master craftsman had a lot of latitude in determining who became a master craftsman out of those who completed the program.

Efforts were occasionally made to modernize this apprenticeship model. However, unlike European models of apprenticeship that were established, perfected and engrained into the social fabric of the country, the models in the United States always seemed like an afterthought. For the few people who have heard of an apprenticeship, more people knew someone who started an apprenticeship than completed one. Read More


Read the full November, 2020 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – October, 2020

The US is Ranked 12th in Talent, Topped By Those Pesky Socialist Countries. What’s Gone Wrong?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

In an IndustryWeek article entitled, “Top 10 Countries For Talent,” it was reported that the IMB World Talent Ranking for 2018 placed the U.S. at 12th, behind many of those countries that are considered “socialist.” How can that be? Could it be that countries 1-11 found a better balance between a thriving model of capitalism and an economy that filters down to all? 
 
It appears that these countries have deliberate strategies for sustained growth. They cultivate relationships with trading partners to “lift more boats” than just those at the top, and seem to do pretty well with their form of democracy. Their societies reflect this stability in the standards of living, mortality rates, health of their people, lower crime rates and lower numbers of suicides and mass incarceration. 
click here to expand
It wasn’t all that long ago that the United States set a high bar for educational attainment, upward mobility, access to healthcare and income security during working years and in retirement. But by most of these measures, the U.S. has continued to slide embarrassingly backward – sometimes as low with some measures to what the world considers a “developing country.” 
 
In 2018, the Organization for Economic Cooperation and Development announced the results of its 2015 rankings of 72 participating countries for the PISA (Programme for International Student Assessment) test. The U.S. ranked as follows: Reading – 35th; Math – 24th; Science – 25th.
So it was really no surprise when it was revealed that the U.S. ranked 12th in talent in 2018. After all, in the last 3 decades the U.S. has transformed itself from the all-inclusive economy that served it so well – instilling ambition and innovation in generation after generation – to more of a “top- down” economy…with most of the accumulating wealth remaining at the top. To pay for that imbalance, capital has to flow from the bottom up, which whittles away at all of the measures that have meaning for the worker class. Obvious contradictions that emerge from a lack of long-term fiscal and social policy planning have maintained the imbalance for those who benefit from institutionalized ineffectiveness and counter-productive policies – the absence of which allow those in power to appear to be doing something while accomplishing little. Read More  

Thinking Past the Assessment – Unfinished Goals and Unrealized Expectations

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

Literally speaking, an “assessment” is the process of measuring the value, quality and/or quantity of something. There are many types of assessments,  and methods for assessing. In theory, it is the process of evaluating one thing against a set of criteria to determine the match/mismatch. 
 
There are assessments for risk, for taxes, vulnerability. There are psychological, health, and political assessments. There is a group of educational assessments that measure a variety of outcomes such as educational attainment – assessments of course content mastery, assessment of grade level attainment, assessments of Scholastic Aptitude Tests (“SAT”) that compare a student to their peers nationally and a variety of college readiness exams.
click here to expand

Determining that you, indeed, hired the right person for the job will not automatically ensure the person is successful in learning and mastering the job. The most important step in the employment process is seeing to it that the individual’s core knowledge, skills and abilities are applied in learning and mastering the tasks which they were hired to perform. That is where the money is made. 

Educational assessments have been adapted for use in workforce development and employment, used to assess a prospective employee’s suitability for a job opening. They often measure more of what, if anything, a student learned and retained before graduating than how they match the employer’s actual job opening. Psychological assessments have been adapted to measure a prospective employee’s sociability to the workplace, morphing into a new category called “psychometric assessments.”  
 
We have seen a growth in the employment assessment industry over the past 2 decades – particularly after 9-11. There are assessments for cognitive tests, physical abilities, “trustworthiness,” credit history, personality, criminal background and more. When used improperly, the methods have been challenged in court for their appropriateness and intent. 
 
An assessment is a “test,” and has been held as such by court rulings over the years. The instrument determines a positive or negative outcome for the employee or prospective employee. The court has ruled, in many cases referring to the Equal Employment Opportunity Commission’s Uniform Guidelines for Employee Selection Procedures, that anything used to evaluate a prospective employee’s access to employment, or an existing employee’s retention, promotion and movement within a job, must meet certain standards to be legally valid. Read More 

Is the “Gainful Employment” Requirement For Education Realistic?

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 May of 2019, the U.S. Education Department sent out reminders to universities of the July 1, 2019 deadline to update their websites to include specific information to comply with U.S. Obama-era “gainful employment” regulations. On July 1, 2019 it was revealed that the U.S. Department of Education publishled its final regulation to eliminate the so-called gainful employment rule. However, it may not go away entirely. Proponents of the rule say Congress might later choose to alter the regulation in the reauthorization of the Higher Education Act (HEA), which would require the department to again address the issue. 
 
Like a lot of policy discussions of today, the confusion over gainful employment – which ought to be a given – mistakenly focuses on the “supply-side” of the equation. No matter how much tinkering goes on with the rule, if employers and government policy fail to provide the quality jobs with quality compensation levels for which the focused college learning is directed, gainful employment may remain an unachievable goal. 
click here to expand
In the 1990’s, computers and microprocessors began to appear in more and more aspects of a broader range of occupations. The alarms went off that this was going to dramatically and significantly alter the nature of work and the skills required in the future. Education at all levels began to reexamine its learning models and content in an, often, futile attempt to “keep up with change,” never mind get ahead of it. 
 
“Futile” since, concurrent with this transformation, government was compounding this disruption with trade agreements and incentives to a smaller and smaller concentration of corporations that encouraged the exportation of the jobs that education programs were targeting. Additionally, employers imported workers to fill these positions (through visa programs) who would perform the same work at a fraction of the established compensation levels – many of whom attended the same U.S. education institutions. 
 
We unfortunately know now that what followed was a rapid churning of jobs that used to provide income security and fulfilling careers to all levels of the workforce and made it nearly impossible for anyone to enroll in a 2 or 4-year education program confident there will be jobs waiting for them upon graduation. Read More

Is an Apprenticeship Without Structured On-The-Job Training an Apprenticeship?

by Dean Prigelmeier, President of Proactive Technologies, Inc. 
 
Career and vocation-focused training is a pivotal point in every current and future worker’s life. This world is overwhelmed by forces that make the effort more difficult for the education and training providers, more urgent and critical for the learner, more scrutinized by the employer and constantly measured against time; how long the training takes (which determines costs) and the relevance of the skills acquired to the targeted job which is always moving to the next level of technology. If the training is not “continuously improved” and maintained to be predominantly current and accurate, the graduate may find that jobs for which the new-found skills were targeted now marginally or, even worse, no longer exist. 
 
In theory, apprenticeships offer a promising approach for traditional trades and crafts. As of 2008, more jobs can be registered as apprenticeships with new models accepted by the U.S. Department of Labor. If the program is based on a sound structure and methodology (one that can work for any type of job classification), an apprenticeship capstone – the job-related, employer-based training – would be maintained current and accurate for at least the employer apprenticeship host. Without this component, an apprenticeship experience may be as hollow as some of the for-profit educational chains which are often criticized for high costs and low placement rates.
click here to expand

“No one would ride in a plane flown by a pilot with only classes and simulator time, have surgery by a surgeon that hasn’t yet operated on a live human, or receive a root canal from a dentist with no “live-patient” time. Certified mastery of the tasks that define each of these jobs is what makes the ‘license to practice’ credible. And there is a difference between ‘a pilot” and ‘the pilot.’ Having a pilot license certifies you to fly planes, not a specific plane; you still have to have training and be certified to apply your craft to flying that plane. With the hybrid approach to apprenticeships, both are accomplished at the same time.”

The term “apprenticeship” has taken on many new meanings in the rush to increase the number of apprentices in the United States. Some 2-year community college programs that have been around a while have been re-branded in an effort to give new life to the same programs of worker development. Some have been thrown together to position an organization for the anticipated flood of grant dollars to find apprentices. Many of these are less “employer-centric” and more “industry-friendly” in spirit. Yet, it is important to remember that the ultimate beneficiaries of an apprenticeship should be the apprentice, the employer, the community, the industry and then the workforce development community, in that order. This should always be the focus and priority. 
 
The process of gaining a “certificate of apprenticeship completion” level status can be an important milestone in an apprentice’s life. Achieving it can be accelerated by the focus and relevancy of related technical instruction and implementing employer-based structured on-the-job training, the latter for which mastery is also the measure of accomplishment for the apprentice and employer. Both components are critical to the quality of the program. Shortening the time without focusing these two components can weaken the program’s credibility and legitimacy. That is why many states require the employer to perform a job/task analysis on the job targeted for registration to ensure the structure, content and process is in place to document and explain what job-tasks have been mastered. That is what is most important to the current employer and any future employers. Read More

Read the full October, 2020 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – September, 2020

The Connection Between Worker Capacity, Organizational Capacity and Output

by Dean Prigelmeier, President of Proactive Technologies, Inc.

The term “capacity” has many meanings. The business dictionary defines capacity for different applications, but generally defines it as “specific ability of an entity (person or organization) or resource, measured in quantity and level of quality, over an extended period.” What is often missed is that each application measured for capacity is made up of important contributors that, too, have capacity.

For example, the capacity of a company can be stated as the output measured quarterly or annually, but attempts to improve it without considering the make-up of the people, the equipment, the leadership, the strategy and resources would be difficult. The output would be affected by: 1) the availability of resources; 2) the level of staffing; 3) the quality of the staffing; 4) the output attainable by the equipment in use; 4) the allocation of all resources; and many more factors. The level of improvement for overall company capacity possible is reliant on the level of control of the inputs in use.

click here to expand

Thinking of a company as being made up of building blocks helps to visual this relationship. Fundamental to it all is the worker, and worker capacity. Worker capacity fits the definition above, but seldom do companies have a definition and control of a worker’s capacity. More often than not, companies view a workers contribution as placeholder for a position defined in terms of hours worked, dollars spent or an expected output based on the history of predecessors.

But worker capacity is much more than that. It relates to the range of tasks the worker is expected to masterfully perform, on equipment and using tools provided, meeting all standards and specifications, and in a safe and risk-adverse manner. It is affected by internal factors such as the company’s strategy, policies, management technique, working environment, company culture and perception of fair compensation. It can be affected, as well, by the worker’s external influences such as well-being, well-being of family members, health, finances and any number of unexpected disruptors. Read More


Are Advances in Technology Distracting Keeping HR From the Fundamentals of Worker Selection and Development?

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

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.

click here to expand

In the 1990’s, investors started to look at the National Security Agency’s and Central Intelligence Agency’s “key-word search” capabilities used to scan millions of documents from around the world for specific words and phrases to expand their intelligence gathering reach. They saw applications of this technology in the civilian world, including scanning the mounds of resumes and employment applications employers had to filter in order to find a few new-hires. On the surface, this seemed to be a godsend. 

Soon employers and employment candidates saw what the developers of this technology did not. The technology first had to count on employers having accurately designed job descriptions in consistent formats, using standardized terms, words and phrases to describe pre-hire knowledge, experience, skills and abilities of interest. The fact was reality couldn’t have been farther from this, with job descriptions written 50 years prior, written precisely for someone the employer wanted to hire (not so reflective of the actual job requirements), or cut & pasted from a handy library resource.

Next, this technology had to rely the applicant knowing the right words and phrases to describe their own pre-hire knowledge, experience, skills and abilities of interest to the employer for the algorithm to recognize a closeness or match. In truth, most candidates even knew less about the difference between a skill and ability, knowledge and a trait, having “experience with” versus being “acquainted with,” or being “fluent” in a topic or having a passing knowledge.

Nevertheless, this technology, with all of its short-comings, stormed the market. Many who lost their jobs in 2008 had not written a resume or filled in a job application for 20 or 30 years, let alone were aware of how key-word search worked and the need to be precise in describing a life of work in terms used by employers which were evolving and who probably changed their own management line-up and company strategy. No one really knows how many highly skilled and perfect matches have seen their careers derailed by this technology, robbing the worker of the job they wanted and the employer of the worker they needed. Read More


The Key To Effective Maintenance Training: The Right Blend of Structured On-The-Job Training and Related Technical Instruction

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 a lot of my career as Dean of Corporate and Continuing Education at community and technical colleges, in several states. Where we could, we tried hard to provide the best core skills development delivery for technical job classifications the employers in our community requested. We often did this working off the limited, and often suspect, job information the employer could provide to us. 

Often we were up against budgetary constraints that limited our efforts to customize programs and keep the programs up to date when the instructor was willing to maintain the relevance of the program. If that wasn’t enough, school leadership often showed ambivalence toward adult and career education due in part to the fact that its demand was driven by gyrations in the economy. Furthermore, the institution was built upon, more familiar with and understood better credit courses for the more stable subjects such as math, science, literature, history and the social sciences. 

click here to expand

We tried a lot of innovative programs for employers in the community within the constraints mentioned, but if I was to be honest we rarely kept up. What we thought we knew of the targeted job classifications and their requirements, and upon which our programs were built and measured, seemed to become increasingly misaligned within just a few years. Not only was advancing technology putting pressure on the content of our learning materials and program design – a constant push toward obsolescence – the employers were continually rethinking the design of their job classifications to meet their business goals and budgets. We were finding less and less similarity in job classifications between employers, by job title and job content. 

Inevitably, and not from lack of effort or desire, it was difficult to keep technical curriculum current to within 5-10 years. The “Maintenance” job classification was a perfect example and could be incredibly different from company to company. In the early days, Maintenance was thought of as multi-craft; a maintenance person was responsible for maintaining all aspects of the operation. Some companies tried to hold onto that concept of Multi-Craft Maintenance but, as Multi-Craft Maintenance Technicians were becoming harder to find and therefore required higher pay, more and more companies began to deviate from multi-craft to specialty and single-craft positions that cover only limited areas such as facilities, electrical or mechanical. Some Maintenance positions did not include HVAC, some were primarily focused on servicing machines but not repair. Some employers subcontracted out facility maintenance and instead had their Maintenance employees perform preventative maintenance tasks on everything from manual machines to PLC driven multi-axis machines, to robots and robotic manufacturing machines – leaving the servicing to the warranty and/or contracted OEM experts. Trying to find the right balance between an effective Maintenance program that gives every employer what they wanted but does not train for skills that one might never have a chance to use and master and most likely would forget, proved increasingly difficult to say the least. 

This dilemma for program and instructional design, I believe, is worse today. Read More 


Enterprise Expansion/Contraction and Worker Development Standardization

by Dean Prigelmeier, President of Proactive Technologies, Inc.

One challenge faced when expanding, contracting or acquiring an enterprise is adjusting the scale of the workforce development strategy(ies) that already exist(s) to the increase/decrease in the number of workers while maintaining a consistent ratio of output, quality yield, safe performance and process compliance. Contrary to an accountant’s perspective on staffing level adjustment, there should be serious consideration given to the range and depth of each worker’s acquired skills; an “inventory” of each employee prior to the official act of expanding or contracting. We take a physical inventory of product, equipment, parts, etc. to assess value, so why would we treat a human asset any different?

Obviously an expansion strategy is different than a contraction strategy, but when it comes to determining the value of a worker it is similar for both strategies. How an organization addresses the development, measurement and maintenance of that value may differ widely. Let’s look at both scenarios.

click here to expand

For companies expanding, if a sound structured on-the-job training infrastructure is in place it is simply a matter of scaling. More work means more employees that have to be trained before adding value to the operation. Sometimes expansion includes a segway from straight-line scaling, such as new products and services requiring new equipment, which in turns requires new/improved core skills before structured, task-based on-the-job training can be implemented to build upon incumbent worker skill sets. A solid structured on-the-job training infrastructure can easily adapt to new work, new tasks, new technologies and new trainees.

For companies contracting, one would think this would just be scaling but in a negative direction. It usually ends up more complicated than that when work for three different areas are consolidated on top of the work performed by the workers in the fourth area. If left alone this will produce an obvious bottleneck to say the least. With consolidation of the jobs, and therefore the consolidation of the tasks required of workers in each, intuitively it would stand that recipients of these tasks should be trained on the best practice of these new processes and necessary compliance. Otherwise contraction of an enterprise will continue as overall capacity dwindles and decreasing output results.

In a third scenario, when a company acquires another site or other sites, the acquiring enterprise usually brings in an expert who can unify HR and HRD strategies and already knows how to analyze what is needed. An effective expert will make sure inventories are taken at each site to formulate a strategy on how to consolidate differing systems and policies into one unified system – hopefully flexible enough to accommodate the uniqueness of each site. The process flow follows a logical track:

  1. Inventory of human resources enterprise software (if existent): Decisions usually have to be made as to which system will become the standard, what data has been kept and should be kept, how to convert the data to the standard format, training of each site’s staff on the new system, etc. Read More

Read the full September, 2020 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Upcoming Live Online Presentations

< 2020 >
February 23
  • 23
    No events

Sign up!