Governor's summit to focus on narrowing state's talent gap
By Dustin Walsh
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Michigan is at war. It's in the throes of a strategic conflict in which tanks, guns and ammunition have been replaced with headhunters, job sites and résumés.
Today and Tuesday at Cobo Center, Gov. Rick Snyder hosts an economic summit focused on talent as he looks to organize efforts between public and private sectors to narrow the state's talent gap.
In metro Detroit, 89 percent of CFOs surveyed in the recent Detroit Professional Employment Forecast byRobert Half International Inc. said they plan to hire in the second quarter of this year, with 77 percent still looking to fill open positions.
With Michigan's economy recovering, the demand for labor is growing, and employers are supporting Snyder's effort to rectify the state's talent problems. But it doesn't mean they're leaving the trenches.
Plymouth-based Freudenberg-NOK fought through a talent drought last year, bringing 159 new employees into the supplier of automotive sealing technology.
But it continues to struggle to fill open positions, said Lisa Bastian, vice president of human resources for the Americas.
"We continue to have issues that we've had over the past couple years," she said. "It's getting harder and harder; we're all battling over the same candidates and assessing what distinguishes us as a great company when everyone offers the same benefits, which are getting more expensive."
Today and Tuesday at Cobo Center, Gov. Rick Snyder hosts an economic summit focused on talent as he looks to organize efforts between public and private sectors to narrow the state's talent gap.
In metro Detroit, 89 percent of CFOs surveyed in the recent Detroit Professional Employment Forecast byRobert Half International Inc. said they plan to hire in the second quarter of this year, with 77 percent still looking to fill open positions.
With Michigan's economy recovering, the demand for labor is growing, and employers are supporting Snyder's effort to rectify the state's talent problems. But it doesn't mean they're leaving the trenches.
Plymouth-based Freudenberg-NOK fought through a talent drought last year, bringing 159 new employees into the supplier of automotive sealing technology.
But it continues to struggle to fill open positions, said Lisa Bastian, vice president of human resources for the Americas.
"We continue to have issues that we've had over the past couple years," she said. "It's getting harder and harder; we're all battling over the same candidates and assessing what distinguishes us as a great company when everyone offers the same benefits, which are getting more expensive."
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Novi-based Tata Technologies Inc. plans to hire 265 people this year and knows it's going to be a challenge, said Giulio Desando, the company's recruitment manager for talent acquisition in North America.
Desando said skilled engineers are the most difficult to find because of an aging population and fewer graduates locally. Of the 24,000 mechanical engineers in the area, roughly 8.5 percent, or 2,000, will retire in the next three years, Desando said, citing a CareerBuilder.com report.
"The big issue we're facing is we're going to lose people due to retirement, and we're not graduating enough locally to replace them," Desando said. "We've been forced to recruit nationally, and it's costing us more, and we're having a harder time finding people."
Mark Davidoff, managing partner for Deloitte LLP in Michigan, said the services firm intends to hire 250 in the state this year and recognizes the challenge.
"We have open positions that we can't fill because we can't find the right people," Davidoff said. "We need to be innovative and creative to find the best and brightest, and it's in our best interest, collectively as employers in Michigan, to work for the right initiatives to solve this problem quickly."
But to offset its own needs, Deloitte opened Deloitte University in Westlake, Texas, in 2011 for continuing education for its staffers and the training of new ones.
In an interview this month, Snyder said Michigan, its educators, students, employers and employees "missed the boat" on aligning talent.
"We have a lot of talented people, but there's a mismatch between skill sets," he said. "I don't think the education sector was able to recognize quickly enough, but I'm not blaming them. I don't think anyone in the country is doing it very well, but the jurisdictions that do the best job are going to have a strategic advantage. So we can't be passive."
Snyder's executive budget recommendation for fiscal year 2014 includes $10 million in performance funding for community colleges, including money toward skilled-trades apprenticeships.
For 2015, Snyder is calling for $50 million toward new equipment at community colleges for technology to meet employer demand.
Bastian said specific funding and initiatives from the government will help, but companies still must get creative with recruiting to find the best talent.
"It's a necessity to be creative," Bastian said. "Certainly a company is trying to get talent for themselves before they join a consortium."
For its plants in the Northeast, Freudenberg-NOK is creating courses at two New Hampshire community colleges to develop curriculum and train machinists in house. Bastian said the supplier hopes to hire all of the students going through the program.
"We see huge deficits in the future for machinists," Bastian said. "We recognized that if we want machinists, we're going to have to build our own."
Lansing-based Niowave Inc. -- which builds superconducting accelerators for research laboratories, the military and medical industries -- needs physicists and engineers.
Niowave COO Jerry Hollister said Michigan is a hotbed for engineers coming out of college, but his company struggles to find mid-level managers with the expertise the firm desires.
"The senior-level candidate to manage a bunch of young whippersnappers that's competent in the technology just isn't here," he said. "The national labs are where people of our expertise reside, but it's difficult to lure them away."
Hollister, a former naval officer, turned the company toward the U.S. Navy's Nuclear Power School and is working with the Lansing nonprofit Rock Star Warriors Inc., which links veterans with employers.
"We don't have a (nuclear) reactor, but much of what we do is similar to operating a reactor," Hollister said. "Those skills and experiences quickly translate to our industry."
Desando said skilled engineers are the most difficult to find because of an aging population and fewer graduates locally. Of the 24,000 mechanical engineers in the area, roughly 8.5 percent, or 2,000, will retire in the next three years, Desando said, citing a CareerBuilder.com report.
"The big issue we're facing is we're going to lose people due to retirement, and we're not graduating enough locally to replace them," Desando said. "We've been forced to recruit nationally, and it's costing us more, and we're having a harder time finding people."
Mark Davidoff, managing partner for Deloitte LLP in Michigan, said the services firm intends to hire 250 in the state this year and recognizes the challenge.
"We have open positions that we can't fill because we can't find the right people," Davidoff said. "We need to be innovative and creative to find the best and brightest, and it's in our best interest, collectively as employers in Michigan, to work for the right initiatives to solve this problem quickly."
But to offset its own needs, Deloitte opened Deloitte University in Westlake, Texas, in 2011 for continuing education for its staffers and the training of new ones.
In an interview this month, Snyder said Michigan, its educators, students, employers and employees "missed the boat" on aligning talent.
"We have a lot of talented people, but there's a mismatch between skill sets," he said. "I don't think the education sector was able to recognize quickly enough, but I'm not blaming them. I don't think anyone in the country is doing it very well, but the jurisdictions that do the best job are going to have a strategic advantage. So we can't be passive."
Snyder's executive budget recommendation for fiscal year 2014 includes $10 million in performance funding for community colleges, including money toward skilled-trades apprenticeships.
For 2015, Snyder is calling for $50 million toward new equipment at community colleges for technology to meet employer demand.
Bastian said specific funding and initiatives from the government will help, but companies still must get creative with recruiting to find the best talent.
"It's a necessity to be creative," Bastian said. "Certainly a company is trying to get talent for themselves before they join a consortium."
For its plants in the Northeast, Freudenberg-NOK is creating courses at two New Hampshire community colleges to develop curriculum and train machinists in house. Bastian said the supplier hopes to hire all of the students going through the program.
"We see huge deficits in the future for machinists," Bastian said. "We recognized that if we want machinists, we're going to have to build our own."
Lansing-based Niowave Inc. -- which builds superconducting accelerators for research laboratories, the military and medical industries -- needs physicists and engineers.
Niowave COO Jerry Hollister said Michigan is a hotbed for engineers coming out of college, but his company struggles to find mid-level managers with the expertise the firm desires.
"The senior-level candidate to manage a bunch of young whippersnappers that's competent in the technology just isn't here," he said. "The national labs are where people of our expertise reside, but it's difficult to lure them away."
Hollister, a former naval officer, turned the company toward the U.S. Navy's Nuclear Power School and is working with the Lansing nonprofit Rock Star Warriors Inc., which links veterans with employers.
"We don't have a (nuclear) reactor, but much of what we do is similar to operating a reactor," Hollister said. "Those skills and experiences quickly translate to our industry."
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Mat Ishbia, president of Troy-based United Shore Financial Services LLC, acknowledged that a skill gap exists between Michigan's job seekers and employers but said employers serious about talent acquisition must adapt.
United Shore has hired nearly 500 employees since March 2011, with plans to hire 600 more in the next year, Ishbia said.
He said United Shore's recruiting team focuses on finding candidates with "heart to move up" and invests in talent, not skills.
"You're never going to find the perfect candidate for every job," Ishbia said. "There's too much focus on pedigree, which means nothing compared to work ethic and ambition."
Bastian said the biggest challenge extends beyond finding or growing talent, it's keeping talent as demographics change. She said Southeast Michigan's auto industry has failed to adapt to what the new workforce demands -- flexibility.
"It's generational, and young people are mobile, and industry has gone global, and they are able to go where they want," Bastian said.
"We have to create the experiences they need for developing, learning and growth and have to have the structures in place to give them the experiences they want, or we'll continue to lose talent to those that are."
Dustin Walsh: (313) 446-6042, dwalsh@crain.com. Twitter: @dustinpwalsh
United Shore has hired nearly 500 employees since March 2011, with plans to hire 600 more in the next year, Ishbia said.
He said United Shore's recruiting team focuses on finding candidates with "heart to move up" and invests in talent, not skills.
"You're never going to find the perfect candidate for every job," Ishbia said. "There's too much focus on pedigree, which means nothing compared to work ethic and ambition."
Bastian said the biggest challenge extends beyond finding or growing talent, it's keeping talent as demographics change. She said Southeast Michigan's auto industry has failed to adapt to what the new workforce demands -- flexibility.
"It's generational, and young people are mobile, and industry has gone global, and they are able to go where they want," Bastian said.
"We have to create the experiences they need for developing, learning and growth and have to have the structures in place to give them the experiences they want, or we'll continue to lose talent to those that are."
Dustin Walsh: (313) 446-6042, dwalsh@crain.com. Twitter: @dustinpwalsh
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