Economic Development Opportunities – An Important Incentive in Attracting Companies to Your Region
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 expandAs 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
Algorithms for Hiring, Credit…What Next? Perhaps Caution Should be Exercised
by Stacey Lett, Regional Director of Operations – Eastern U.S. – Proactive Technologies, Inc.
We are pushed from all sides to embrace advancing technology meant to impact every aspect of our lives. Peer pressure – from friends, family, colleagues, industry “experts” drive us to consider embracing “our future” – often explaining away the disruptions it causes to our present. Sometimes naïve, but always enthusiastic, media compete to be the first to break the news, bombard us with everything from subtle shaming to industry-driven pushes to accept and use technology – even if lacking thorough testing or proper consideration of all ramifications from its usage. If the technology causes damage, shoulders are shrugged and the horizon is scanned for the next.
Driven by massive amounts of marketing cash –often to create the illusion of trends when market acceptance is tepid – who is helped and who is hurt by the innovation is a distant afterthought. The damage can be done and those promoting the technology push to broaden its acceptance. If press coverage is too harsh when its promise comes up short and shareholder interest wanes, abandon it and move on to fabricate the next “trend.”
click here to expandTake, for example, the recent examples of Apple and Goldman Sachs credit cards, which it appears issued lower credit limits to spouses of husbands who shared the same credit score. “A tech entrepreneur, David Heinemeier Hansson, first raised the issue when he tweeted that the Apple Card’s algorithms discriminated against his wife, giving him 20 times the credit limit it had given to her.” His wife’s credit score was much better than his own. This, also, happened to the spouses of Apple cofounder Steve Wozniak and other prominent figures.
Some banking algorithms utilize around 400 attributes in its determination of creditworthiness. And that might be made up of many we wouldn’t expect, but we will never know since it is considered a “trade secret.” But, as in most cases of machine learning, a lot of trust and faith is afforded the technological advancement which is only rocked when something tragic, abnormal or, in this case anti-social and potentially illegal, is discovered. Read More
Tips for Workforce Developers – Partnerships That Matter…and Last
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
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.
click here to expandToo often there was internal resistance and a lack of understanding of how important being relevant was to workforce development. Many institutions grew complacent to change or were discouraged by shrinking budgets or misaligned priorities from innovation. Always feeling a sense of urgency to overcome the ubiquitous “skills gap” that cast a shadow on all education and workforce development efforts, there are some important steps that I developed for myself to help me better assess each employer’s need and provide solutions client employers appreciated. This is the reason most employers we worked with kept us engaged year after year. We earned, and maintained, their respect and gave them confidence in our solutions, which ensured our continued role in their business model. This provided a continued revenue stream for the school to continue, improve and expand those efforts. Read More
Read the full April, 2022 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.
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