Proactive Technologies Report – December, 2022

Is it Possible to Close the “Skills Gap” if Focused on the Symptom, Not the Cause?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

There is nothing like the futility of trying to solve a specific problem with a general solution…or treating the symptoms with methods that do not address the underlying problem. No one would use a screwdriver to tighten a nut or bolt. However, in an environment surrounded by a loud, unrelenting and self-interested screwdriver industry “expert” voices there may well be many who try – even those who should know better. Especially if given a “free” screwdriver.

According to the Center for Economic Research, “US Businesses lose approximately $160 billion total every year as the result of the skills gap.” According to a 2017 Training Magazine report, the “Total 2017 U.S. training expenditures [employer] rose significantly, increasing 32.5 percent to $90.6 billion. This dropped slightly to an estimated at 87.6 billion in 2018.” On top of this, in 2018 the US spent $50 million on STEM education (simply putting back what was taken out of education after reforms started in the 1980’s) to “address the skill gap of future employees.” While education and training throughout 2020 -2022 was upended by the Covid-19 pandemic, employers seem to be slowly returning to the informal forms of training. Predominant prior to the crisis, informal on-the-job training is a familiarly better alternative (to the online tools and programs they tried during the Covid slowdowns and shutdowns) for their practicality in developing the employer’s unique task-based skills.

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Considering the U.S. has been warning about the “skills gap” for over 40 years, the amount of money lost – spent on accommodating, or wrongly addressing, the symptom – the total cumulative loss could be in the significant trillions of dollars…not to mention the resources misapplied. And millions of workers who want, and wanted, to work in a career and employers that could/could have employed them were, both, left empty.

This history has led some to suggest the skills gap is a farce. Even if your concerns aren’t that extreme, one has to wonder why with all of the money spent, the resources applied and the employers and trainees impacted, we seem to still be struggling with a skills gap that started to reveal itself in the 1980’s.

The fact of the matter is that employers have been just as unfocused and ambivalent about defining the problem as government has been zealous about having the only “solution.” While employers say they need and expect workers that can “hit the ground running,” “think outside the box,” “have skills for the jobs of tomorrow” and all of the other buzzwords and phrases circulating, what they really need is workers that can perform their unique tasks and processes, on their unique equipment, in their unique environment within their unique pay structure in a world of change. Not only do employers lack a clear definition of the job as it exists today, internal and external forces never allow a job to fully materialize before it is significantly changed by design or by changes in technology, or relocated out of the education system’s service area. Read More


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

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

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

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

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

Conceptually, the performance review has a purpose. It is to measure employee performance during a review period, identify areas of weakness and strength, and offer guidance on how an employee can improve on shortcomings and expand potential. But that is only possible if it is accurate to the job classification against which an individual is measured.

Several decades ago, performance review criteria became a template – one form fits all. In order for that to be possible, the metrics had to become more general, such as whether the individual “works well with others,” “completes projects on time,” “shows initiative.” At best, these types of measures leave the reviewed wondering whose job performance is being discussed. At worst, these subjective measures leave a lot of latitude for the reviewer who sometimes deliberately or inadvertently punishes an otherwise good performing employee. 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 published 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.nly 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.

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.

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“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


Learning, Unfortunately, The Hard Way

by Dean Prigelmeier, President of Proactive Technologies, Inc.

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

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

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

Those that survived had to scramble to stock their shelves, staff and restaff their organizations while reconsidering every aspect of their operation. The economy and its current inflationary effects are straining workers – who might have just been given a raise – once again, who find it increasingly difficult to support themselves. Companies supported by private equity or who are publicly traded find themselves forced to quarterly cut costs – no matter how practical or short-term – to appease their boards of directors. Continuing a decade’s-old practice of denial, of employees being considered a “cost” no matter the employer’s years of investment in developing them nor the wealth of knowledge and skills expertise each represents, are first in line to be discarded.

As pawns in this transformation, workers – some with extreme experience – are vulnerable to being reconsidered out of the equation along with the newly hired. Read More


Read the full December, 2022 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Upcoming Live Online Presentations

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    2024-04-09

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    (Mountain Time) The philosophy behind, and development/implementation of, structured on-the-job training; the many benefits the employer can realize from the PROTECH© system of managed human resource development in more than just the training area; examples of projects across all industries, including manufacturing and manufacturing support companies. Program supports ISO/AS/IATF compliance requirements for “knowledge(expertise)” capture, and process-based training and record keeping. When combined with related technical instruction, this approach has been easily registered as an apprenticeship-focusing the structured on-the-job training on exactly what are the required tasks of the job. Registered or not, this approach is the most effective way to train workers to full capacity in the shortest amount of time –cutting internal costs of training while increasing worker capacity, productivity, work quality and quantity, and compliance.  Approx 45 minutes.

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    2024-04-11

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    (Mountain Time) The philosophy behind, and development/implementation of, structured on-the-job training; how any employer can benefit from the PROTECH© system of managed human resource development in more than just the training area; building related technical instruction/structured on-the-job training partnerships for employers in across all industries. When partnering with economic development agencies, public and private career and technical colleges and universities, this provides the most productive use of available grant funds and gives employers-employees/trainees and the project partners the biggest win for all. This model provides the lacking support needed to employers who want to easily and cost-effectively host an apprenticeship.  Approx 45 minutes.

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    (Mountain Time) This briefing explains the philosophy behind, and development/implementation of, structured on-the-job training; how any employer can benefit from the PROTECH© system of human resource development in more than just the training area. This model provides the lacking support employers, who want to be able to easily and cost-effectively create the workers they require right now, need. Program supports ISO/AS/IATF compliance requirements for “knowledge(expertise)” capture, and process-based training and record keeping.  Approx 45 minutes.

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    (Mountain Time) The philosophy behind, and development/implementation of, structured on-the-job training; how any employer can benefit from the PROTECH© system of managed human resource development in more that just the training area; building related technical instruction/structured on-the-job training partnerships for employers across all industries one-by-one. How this can become a cost-effective, cost-efficient and highly credible workforce development strategy – easy scale up by just plugging each new employer into the system. When partnering with economic development agencies, and public and private career and technical colleges and universities for the related technical instruction, this provides the most productive use of available grant funds and gives employers-employees/trainees and the project partners the biggest win for all. This model provides the support sorely needed by employers who want to partner in the development of the workforce but too often feel the efforts will not improve the workforce they need. Approx. 45 minutes

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    (Mountain Time) The philosophy behind, and development/implementation of, structured on-the-job training; how any employer can benefit from the PROTECH© system of managed human resource development in more than just the training area; building related technical instruction/structured on-the-job training partnerships for employers across all industries and how it can become an cost-effective, cost-efficient and highly credible apprenticeship. Program supports ISO/AS/IATF compliance requirements for “knowledge(expertise)” capture, and process-based training and record keeping. When partnering with economic development agencies, public and private career and technical colleges and universities, this provides the most productive use of available grant funds and gives employers-employees/trainees and the project partners the biggest win for all. This model provides the lacking support needed to employers who want to easily and cost-effectively host an apprenticeship.  Approx. 45 minutes

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