Proactive Technologies Report – August, 2018

Labor Costs Expected to Increase, So Will Challenges to Developing Workers

by Dean Prigelmeier, President of Proactive Technologies, Inc.

In an article by David McCann of CFO.comentitled, “Labor Costs Will Skyrocket Over the Next Decade”, the author cited new research from consulting firm Korn Ferry  projecting new challenges for employers in the coming years. “Organizations around the world could add more than $2.5 trillion to their annual labor costs within 12 years as a result of the global shortage of highly skilled workers. The report follows up on the recruiting and workforce management firm’s forecast in May that the talent shortage could cost companies $8.5 trillion in unrealized annual revenue by 2030. 

This is a rolling crisis that started several decades ago – the repercussions are just now being articulated in terms employers can relate. Employer’s awareness of the approaching crisis appeared for retiring baby-boomers and the anticipated loss of expertise and critically unique task-based skills mastered over decades of performance. Add to that the rise of millenials, the continual introduction and evolution of technology and the disruptive effects of the Crash of 2008. Now employers are finding themselves rebuilding their workforce, in many cases with tools and techniques that haven’t evolved all that much and still without really understanding the seriousness of the challenge, let alone the labor and opportunity costs to their operation.

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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.”

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Pre-Employment Physical Ability Tests Can be a Legal Liability If Not Done Right

by Jim Poole, President of Lifetime Learning, LLC

David Sparkman of EHS Today wrote in a July 20, 2018 article entitled “EEOC Cracks Down on Pre-Employment Physical Testing” that “If your company uses pre-employment physical stress tests for job applicants that result in the rejection of female applicants, you could be in a world of hurt if the Equal Employment Opportunity Commission (EEOC) finds out.” He described the story of Hirschbach Motor Lines, “which used a pre-employment back assessment to screen and reject applicants it believed would be unable to work as truck drivers. Applicants were tested for their ability to balance and stand on one leg, touch their toes while standing on one leg, and to crawl… The company eventually agreed to pay $3.2 million to a class of female applicants after the EEOC filed a lawsuit alleging the strength and fitness tests they took impacted women disparately. Earlier this year another case involving physical ability testing required by a police department resulted in a nearly $2.5 million settlement for female applicants.”

EEOC’s aggressive pursuit of cases demonstrates why it is important that employers understand the legal issues surrounding  physical ability tests (PATs). Extreme care should be exercised when selecting and validating such tests. Sparkman quotes experienced lawyers representing clients in these types of cases, “’If a PAT has a disparate impact-for example, if women fail the PAT at a statistically significantly higher rate than men-an employer has the burden of demonstrating that use of the PAT is job-related and consistent with business necessity,’ explain attorneys Mallory Stumpf and Sarah Smith Kuehnel of the Ogletree Deakins law firm.”

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Keeping Employers Engaged in Regional Workforce Development Projects

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Billions of dollars have been spent on workforce development projects funded by the state and federal governments in the last 20-30 years. However, from the tone of the discussions surrounding workforce development projects and participants today, it seems that the same things that were troubling employers in 1980 are still troubling them today.

Getting an employer to sign up for a grant-funded workforce development project should not be that difficult, if the brands and reputations of the institutions promoting the project are sound, and the project concept appears logical, achievable and will in all likelihood contribute to the employer’s business model. But once the pitch has been made to the employers and the bold outcomes projected, keeping the employers engaged for the duration of the project and beyond can be difficult.

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Read the full August, 2018 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – July, 2018

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:

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A Management Theory Flashback – The Peter Principle

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

In 1979, a book written by Raymond Hull entitled “The Peter Principle”  was a topic of conversation around the water cooler (the precursor to today’s bottled water and a euphemism for a meeting place in the office for casual conversation and gossip…for those young enough to have missed the expression). It lasted throughout the 1980’s and early 90’s. College courses in organizational development and management theory mentioned it in passing, but for most of us its meaning and significance might have been misunderstood.

Although there is a basis of overlap, this is not to be confused with “The Dilbert Principle,” a 1990’s satirical theory by cartoonist Scott Adams based on a comic strip called “Dilbert.” The Dilbert principle roughly theorizes that companies tend to deliberately promote their least competent employees to management to limit the damage they can do. A more cynical view of contemporary management practices, The Dilbert Principle was a way for demoralized employees to express their perception of seemingly incapable supervisors and middle management with a theory that could be mistaken for one that could easily be produced in higher education after thoughtful research. The word “Principle” acts to give it legitimacy and, in a way, mock sincere studies and theories.

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Workforce Development Partnerships With Substance: My Experience

By Randy Toscano, Jr.,  MSHRM, CEO of Legacy Partners 2

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.

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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.

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Read the full July, 2018 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – June, 2018

Every Work Task Is A Micro Unit; Everything About the Task Should Be Trained At Same Time For Maximum Efficiency and Effectiveness

by Dean Prigelmeier, President of Proactive Technologies, Inc.

In an article appearing in EHS Today entitled, “Microlearning’s Big Impact on Safety Training,” a case was made that providing safety training in “short bursts may help workers retain critical safety knowledge and procedures.” The assumption is that the content is relevant, well organized (“structured”) for delivery and delivered for comprehension.

Learning general safety concepts and techniques in an online or lecture format provides the basic knowledge and understanding of general safety. Unfortunately, in a lot of the cases with this type of microlearning, to which tasks of each worker’s job this information needs to be applied, and specifically how, is usually left up to the individual to sort out. This leaves an opportunity for the learner to recall some of the information incorrectly or decide the information does not apply to the task at hand. The greater the time-gap between learning this information and applying it to an applicable task, the greater the chance that the information will be forgotten or not remembered correctly.

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Knowledge Gap v. Skills Gap, Core Skill Gap v. Task Skill Gap; Important to Know Which You Are Trying To Close

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

One common, ongoing theme that all of us in workforce development and related disciplines are familiar with is that our educational and workforce development institutions are not, despite the tremendous resources at their disposal. adequately addressing the issue of the “Skill Gap.” A lot has been written about the concern over the billions of dollars spent by employers and education to address the skill gap each year, but after 30 years we still are consumed with concern. Many employers have either learned to discount education as a viable partner in workforce development or have lost their confidence in these institutions all together and moved on. How hard would it to bring them back?

Some have suggested that educational institutions seem preoccupied with controlling the definition of the challenge so the solutions they prescribe can be pulled from their shelf. They have a powerful lobbying presence in Washington D.C. and state capitals to guide their proposals to steer grant money targeted for workforce development to their institutions. In some cases it is what sustains the schools…but for how long without significant outcomes?

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Tips for Workforce Developers – Partnerships That Matter…and Last

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

Having partnered with Proactive Technologies, Inc. on workforce development projects for the past 20 years, it gave me a chance to innovate and learn what works, what efforts are most appreciated by the employer, trainee and employee, and which projects utilized resources most efficiently and effectively. There are numerous resources available from many sources that can impact a trainee with varying effectiveness, but the secret is selecting those that are appropriate for the project outcome the employer expects.

As Dean of Corporate and Continuing Education at community and technical colleges in Massachusetts, Ohio, Pennsylvania and South Carolina, at the start of each assignment I had to first learn what resources our school had available for the sectors we were targeting, and how current and relevant the courses, materials and instructors were for the specific skills employers were seeking. To be honest, in some areas our products and services were weaker than expected, so the determination needed to be made whether we had the resources and will to upgrade what we had or develop what we needed. We also had to consider if it would be more economical to strategically partner with outside providers who always had the current technical expertise and already created solutions we could incorporate into our offerings.

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“Unemployment is at an 18 Year Low.” So Where is the Party?

By Dean Prigelmeier, President of Proactive Technologies, Inc.

For the May, 2018 unemployment report, the U.S. government announced it had reached an “18 year low of 3.8 percent.” Yet, millions of Americans who are still looking for a job, or for one job that sustains them and their family, are holding off popping the champagne…or even buying it. Why hasn’t the mood of American workers been more celebratory?

Politicians thinking about running, again, on the “strong economy” this Fall may be in for a surprise . In a recent Monmouth University poll, “only 12 percent of Americans said they benefited a great deal from recent economic growth, while 53 percent said that they’ve been helped ‘not much’ or ‘not at all.'”

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Read the full June, 2018 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – May, 2018

The Accelerated the Transfer of Expertise™

by Dean Prigelmeier, President of Proactive Technologies, Inc.

The American Heritage Dictionary defines expertise as, “specialized knowledge or skill; see expert.” Expert is defined as, “Having or demonstrating great skill, dexterity or knowledge as a result of experience or training.” Transferring “expertise” to a new worker is a much different process and experience than simply conveying knowledge. One measure of gaining expertise is the utilization of the knowledge in the skilled performance of a task.

When it comes to task-based expertise, this definition can be applied with a little elaboration. Some examples of technical task performance are: setting up a multi-axis NC lathe to material, machine and engineering specification; welding exotic metals; sterilizing surgical instruments; or troubleshooting an electronic circuit board. These all represent higher order skills developed over time and with practice. Knowledge of “how to” never is enough when it comes to high-order skill requirements of technical tasks.

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Challenges Presented by the Widening Skill Gap

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

There are at least five growing, major challenges to maintaining a skilled national labor force. These forces are causing those organizations who could help to, instead, spend tremendous sums of money on “whack-a-mole” type efforts. Sure, this approach sustains all of the profit and non-profit organizations that sprung up to take advantage of the chaos, but if we are serious about solving this issue that has undermined economic recoveries and stifled economic growth for over 30 years, we need to get serious.

It starts by critically evaluating the challenges that have plagued the U.S. labor force and have been barriers to an employer’s commitment to American labor. Like nearly all challenges, one can choose to target the underlying cause, treat the symptoms, mask the symptoms, define an alternative – but not necessarily relevant – cause and focus on that, or ignore symptoms and cause and hope for divine intervention.

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“Full Job Mastery” means “Maximum Worker Capacity” – A Verifiable Model for Measuring and Improving Worker Value While Transferring Valuable Expertise

by Dean Prigelmeier, President of Proactive Technologies, Inc.

It is no secret that with the traditional model of “vocational” education, the burden of the job/task-specific skill development falls on the employer. It is not economically feasible nor practical for educational institutions to focus content on every job area for every employer. So they, instead, focus rightly on core skills and competencies – relying on the employer to deliver the rest. This is where the best efforts of local educational institutions and training providers begin to break down even if highly relevant to the industry sector.

Employers rarely have an internal structure for task-based training of their workers. Even the most aggressive related technical instruction efforts erode against technological advances as every month passes. If core skills and competencies mastered prior to work are not transformed quickly into tasks the worker is expected to perform, the foundation for learning task performance may crumble through loss of memory, loss of relevance or loss of opportunity to apply them.

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Read the full May, 2018 PT Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – April, 2018

We Have Enough Evidence: Without Employer-Based Structured OJT, Worker Development Falls Way Short

by Dean Prigelmeier, President of Proactive Technologies, Inc.

As a nation, we have become accustomed to kicking the can down the road. Maybe not deliberately, we appear to be locked into that mode with regard to worker development. It is not for lack of resources – billions are spent each year by federal programs, state governments and employers. If one backs away and looks at the big picture, the will is there but it seems more that the resources just are not properly aligned and focused.Employers have been struggling with the “skills gap” since the 1980’s. Every manner of solution has been tried, but the gap seems to linger and grow. This is due, in large part, to disproportionately more emphasis being placed on preparing future workers for work and not enough on the employer’s vital role in providing the task-specific training once hired, and “upskilling” them through change.

Employers have been led to believe that the solution lies solely with education. While laying the strong foundation upon which to build strong workers is an important part of the solution, if the employer does not immediately begin building on the foundation, the foundation degrades relative to the continually evolving job requirements, and the opportunity is lost.

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Blockchain Employee Records? What is the Balance Between Business Controls and Employee Privacy?

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

How much personal information is too much? Can we be so swamped by data available to us from so many sources that we forget our mission? What will technology’s legacy be: the engine for positive change or a harmful disruptor and nothing more?

United Healthcare announced in 2016 that their employees would be wearing fitness trackers as part of their wellness program. Other employers were looking into it, as well. Privacy advocates expressed concern over how the devices could be used to track an employee’s movement, and possibly provide data out of context.

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Classes Alone Will Not Close the “Skills Gap,” But Structured On-the-Job Training Can…Every Time!

by Proactive Technologies, Inc. Staff

Proactive Technologies. Inc. works with many employers, a large number of them manufacturers, to set up structured on-the-job training programs designed to their exact job classification(s), built to train incumbent and new-hire workers to “full job mastery” – still the most elusive goal most employers face and the key to” closing the “skills gap.” Under-capacity of workers is an enormous source of untapped value and unrealized return on worker investment. 

The accelerated transfer of expertise approach 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 apprenticeships; instead of marking the calendar for “time-in-job,” job-relevant tasks are mastered and documented. AND, unlike classroom or online training, the cost per trainee decreases with each added trainee once set up. 

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Read the full April, 2018 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – March, 2018

Explaining Your Process Training to Auditors, Prospects and Clients

by Dean Prigelmeier, President of Proactive Technologies, Inc. 

For most organizations, the general notion of 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.

Someone who is familiar with the new copy machine might wander by, and then an informal training process starts. There is probably no training record generated for this transaction, but neither are so many of the things workers learn on-the-job. Somehow, the organization gets 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 for whom it is an important task of the job.

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STEM Programs are Good, But No Substitute for Employer-Delivered Structured On-The-Job Training

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

STEM learning is all the buzz these days. From coast-to-coast, high schools, career centers and community colleges are trumpeting the promise of Science, Technology, Engineering and Math to employers and future workers. Some see this as the cure-all to the pervasive and persistent “skills gap” dilemma. Some emphasize that STEM merely represents a reversal of the policies in the 1990’s that emphasized preparation for college over preparation for work and society (some even say History and Civics should have been left in the curricula as well). This realignment with industry will take years to bear fruit and to bring workforce preparation back to where it was before the decision was made to change focus…that is if politics doesn’t take it off course again before it can produce.

While STEM represents a good start at building a better foundation upon which career paths can be developed, it is important to keep it in perspective and not oversell the promise as often happens. It is understandable that educational institutions who are delivering the STEM classes are enthusiastically marketing it as the cure, but care should be taken not to over-market the product and crowd out other necessary components of proper and effective worker training that make it possible to obtain and retain a job with an employer in need. Too much focus on building the foundation can lead to lost years for a potential worker, lost opportunity for an employer, and lost support for workforce development as interest and belief wanes.

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Five Most Important Ways Structured On-the-Job Training Can Reclaim Wealth For an Employer

by Dean Prigelmeier, President of Proactive Technologies, Inc.

In a Proactive Technologies Report article entitled “10 Reasons Structured On-The-Job Training is a Vital and Necessary System for Any Organization,” a few of the many important reasons that structured on-the-job training – at least Proactive Technologies’ version – were explained that should be part of any organization’s operational strategy. Here are 5 ways this approach to worker development that integrates an organization’s existing systems unlocks tremendous wealth and yields substantial returns – just for doing what every employer says they want anyway but most find a reason to avoid it.

Too many employers still, wrongly, believe that they have little in the way of tools and metrics to develop and measure the value of each worker that comes to the organization. No structured training program in place means no one has analyzed the job for the tasks required to be performed, the compliance criteria, the core skills and knowledge necessary to master the tasks, or why a task resides in a job classification. If there is no structure, there is no way to measure what percent of the job a worker has mastered or, if still in development, how well they are progressing to the expected level of job mastery and performance. If no structure or metrics exist, there is nothing to improve or, at least, notice an improvement. And if something goes wrong and worker malperformance is suspected, there is little from which to draw evidence to support a conclusion and proper course of corrective action.

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Read the full March, 2018 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – February, 2018

Eight Scenarios That Would Make You Wish You Had a Structured OJT System

by Dean Prigelmeier, President of Proactive Technologies, Inc.

I think one can confidently say that most employer’s focus on training the workers they need – to perform the tasks they were meant to perform – has become detrimentally blurry, counterproductive and often non-existent. There are many reasons for that – some legitimate. But without a deliberate, measurable strategy for quickly driving each worker to mastery of the entire job classification, an employer’s labor costs (not just wages, but opportunity costs and undermined return on worker investment as well) can be substantial and act as a drag on an organization’s performance.

Many employers are still waiting for the educational institutions to solve the problem. After all, look at all of the money spent on education directed at “training the workers of tomorrow.” Yet a lot of the institutional strategies appear to include repackaged tools from the past…and not the ones far enough past that seemed to work. For example, the recent comments made by education insiders saying we should have kept the high school vocational programs that were relatively effective until the late 1970’s in place. These were phased out when the push to prepare students for college took priority. Now, there is a push for community colleges to “pump out” more apprentices which, if done only to meet numbers but not emphasizing quality of the general training, could be another waste of scarce resources of time, money and opportunity for the trainee, the employer and communities. Another decade lost.

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

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

A mystery for many employers – those who are allowed to consider the wage-value relationship in their business strategy – is “what is the right pay rate for work performed.” An often used strategy is to establish a competitive wage range for a job classification based on area surveys of similar job classification in the industry, adjusted for the uniqueness of work requirements for the employer’s job classification. Once hired, an employee progresses through the wage range measured by time in the job classification, in some cases with wage adjustments based on merit. While consistent, this approach may limit the employer to paying, in many cases, more for labor than the value derived. And here is why.

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

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Who is Responsible for Decisions Regarding Training?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

We sometimes run into a conundrum when promoting the concept of structured on-the-job training: finding who is responsible and accountable for the decision to provide training within an organization. It doesn’t seem like negligence, but it often feels like every decision-maker is saying it is someone else’s responsibility, sincerely believing the other has this important area covered. But it is also surprising when no one inside the organization asks who is responsible when any of the many symptoms of lack of training show up.

In this environment that seems like “training anarchy,” it is easy for loud voices and strong personalities to step outside their zone of expertise to tackle, what may appear to be, a simple challenge – only to come up short. Sadly, although the proposed solution wouldn’t rise to that provided by an experienced professional or recognized as “training,” others may not know this. They might vent their disappointment by denigrating the notion of training or seek blame of the trainee saying things like “these workers just don’t want to be trained.” The legitimate role and purpose of training is tarnished, but never the solution’s architect.

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You Asked, We Listened: 

The “Proof is in the Pudding” Pilot Program/ Discount Offer is Back

Proactive Technologies, Inc.Staff

We received many requests to bring back the “Proof is in the Pudding” Pilot Program/Discount Offer. So here it is:

  • select a 1-job classification(minimum) pilot project;
  • Proactive Technologies will job/task analyze the classification (incorporating your process documents and specifications), set up a structured on-the-job training system, provide 12 months of implementation technical support;
  • Retainers are scheduled over 12 months. If not satisfied with the results, you can cancel the project at any time, for any reason!
  • Within the first 90 days of the project, if you are satisfied with the results and want to expand the project to include other job classifications, the discount offer would apply!
Discounts of up to 30% apply, and all expenses are included!
 
What other consulting professionals are confident in their approach and services to make such an offer? Low investment, no risk, everything to gain. 


Read the full February, 2018 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – January, 2018

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.

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Training Issue or Attitude Issue? Understanding the Difference

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

If you spend some time in the Human Resources Department office, you often witness a supervisor or manager trying to explain why the new-hire isn’t working out. “Why do you believe that?” asks the HR Manager. The supervisor thinks a moment and says, “He just doesn’t act like he wants to learn.” The issue seems to be attitudinal. The HR Manager doesn’t bother to ask for any empirical evidence since it usually doesn’t exist, so the decision is made to terminate the new-hire and start all over…again.

Some, more forward thinking, human resources departments concluded that assessing job prospects might reduce the amount of hiring turnover. It certainly does help do that if the job classification was properly analyzed and the assessment instruments were aligned to the data for “job relevance.” However, even with the best screening potentially good employees might be lost. Knowing how to recognize the difference between attitude and training-related issues may save good employees from being lost due to misdiagnosis.

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Grow Your Own Multi-Craft Maintenance Technicians – Using a “Systems Approach” to Training

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

Since partnering with Proactive Technologies, Inc. in 1994, together we have advocated the use of a “systems approach” to training that includes a combination of related technical instruction and structured on-the-job training to develop multi-craft maintenance technicians. This approach works equally as well with other job classifications within a organization. This is a viable option to paying tens of thousands of dollars per year to employment recruiters to locate these technicians on a nationwide basis…who still need to be trained once hired. Plus, once the investment is made to setup the infrastructure, you can train as many workers as you need – with a declining cost per trainee.

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

by Dean Prigelmeier, President of Proactive Technologies, Inc.

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

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

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Read the full January, 2018 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – December, 2017

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.

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Challenges Presented by the Widening Skills Gap

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

There are at least five growing, major challenges to maintaining a skilled national labor force. These forces are causing those organizations who could help to, instead, spend tremendous sums of money on “whack-a-mole” type efforts. Sure, this approach sustains all of the profit and non-profit organizations that sprung up to take advantage of the chaos, but if we are serious about solving this issue that has undermined economic recoveries and stifled economic growth for over 30 years, we need to get serious.

It starts by critically evaluating the challenges that have plagued the U.S. labor force and have been barriers to an employer’s commitment to American labor. Like nearly all challenges, one can choose to target the underlying cause, treat the symptoms, mask the symptoms, define an alternative – but not necessarily relevant – cause and focus on that, or ignore symptoms and cause and hope for divine intervention.

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Tips for Workforce Developers – Partnerships That Matter…and Last

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

Having partnered with Proactive Technologies, Inc. on workforce development projects for the past 20 years, it gave me a chance to innovate and learn what works, what efforts are most appreciated by the employer, trainee and employee, and which projects utilized resources most efficiently and effectively. There are numerous resources available from many sources that can impact a trainee with varying effectiveness, but the secret is selecting those that are appropriate for the project outcome the employer expects.

As Dean of Corporate and Continuing Education at community and technical colleges in Massachusetts, Ohio, Pennsylvania and South Carolina, at the start of each assignment I had to first learn what resources our school had available for the sectors we were targeting, and how current and relevant the courses, materials and instructors were for the specific skills employers were seeking. To be honest, in some areas our products and services were weaker than expected, so the determination needed to be made whether we had the resources and will to upgrade what we had or develop what we needed. We also had to consider if it would be more economical to strategically partner with outside providers who always had the current technical expertise and already created solutions we could incorporate into our offerings.

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10 Reasons Structured On-The-Job Training is a Vital and Necessary System for Any Organization

by Dean Prigelmeier, President of Proactive Technologies, Inc.

There are many reasons a deliberate, structured on-the-job training system should be a priority consideration for any employer. For decades employers have felt that having an employee take a few classes here and a few online modules there translates directly to improved worker output and performance. But for decades, as well, employers have continued to talk about a continually increasing “skills gap.” Connection? Obviously yes.


“Employers expend enormous resources – time, effort, dollars – on efforts to improve efficiencies…in some cases without making an appreciable difference or reaching the intended goals.”


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Read the full December, 2017 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – November, 2017

Understanding the Resistance to Training: Part 2, Meeting the Challenge

by Dean Prigelmeier, President of Proactive Technologies, Inc.

In part 1 of this series entitled,”Understanding the Resistance to Training: The Challenge,” I started the discussion of how an organization that is based on systems has difficulty in, and an entrenched aversion to, conceptualizing the need for a systematic approach to worker development. It is a pervasive problem and it lies at the root of the seemingly insurmountable”skills gap” that has flourished over 30 years and seems unique to U.S. employers. Other developed economies, such as those in Europe, seem to have no trouble developing the workers they need. In fact, many of those trained for technically skilled job classifications in Europe wind up working or training others in developing or developed countries around the world.

Training sounds so simple. Put two people together and have one train the other to do what they do…as fast and as good as the trainer. But we all know, from our own experiences, this is a crap shoot. The trainer may not want to share what they have learned for any number of reasons. Even if they do, they have repressed the nuances of learning the proper task procedure and are now operating on “automatic” – what the employer wants. This manifests itself as displaying shortcuts that only they understand and may not be acceptable, demonstrating incomplete procedures and omission of critical safety and engineering specifications. This is true for each subject matter expert on each shift, who might even be training in conflicting ways.

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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.

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The Employers Have the Most Advanced Equipment Available for Training

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

Community and technical colleges, career centers and joint vocational schools have always struggled with how to make a positive difference in workforce training. They often bear the brunt of criticism for the “skills gap” employers report when, in reality, employers share equally in the responsibility. Educational institutions have only the resources and capacity to provide core skill training upon which only employers can then provide on-the-job training to drive trainees to the job mastery needed.

Educational institutions are often tempted to assume more of the employer’s role in worker development but run into budget, feasibility and practicality limitations. This distracts them from their very important role of maintaining perpetually relevant core skill and related technical instruction that a high-quality technical education requires. Trying to provide all things to all employers never was the role of educational institutions so they should not take it too personally when well-intention efforts do not reach the expectations for them.

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Quality Policies and Process Sheets Do Not Equal Training

by Dean Prigelmeier, President of Proactive Technologies, Inc.

A very common fallacy in business operations is that a description of what should be done listed in a quality policy, such as a quality control policy or a quality assurance plan, that seems to be sufficient for the training component of ISO/TS/AS certification meets, therefore, the company’s training requirement in general. Perhaps this false equivalency is wrongly supported by the additional fallacy that the existence of standard work instructions is the equivalent of on-the-job training plans. Too often this is used to defend the belief that this replaces formal task-based training.

Sometimes this leads to the rationalization that if the company keeps it simple and barely meets what an ISO/TS/AS auditor might accept for their certification purposes, the training requirement is covered. But an auditor at that stage is just looking at what the company is intending to do, not how they carry it out. That is discovered later.

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Read the full November, 2017 newsletter, including linked industry articles and online presentation schedules.

 

Posted in News