Johnson City Press from Johnson City, Tennessee • 24

Page 24 JOHNSON CITY PRESS Sunday March 17 1996 Labor market needs skills workers lack SAGEBRUSH HIRING itlx frN ir depended in brute force alone Most often the term now refers to computer literacy good communication skills and the ability to work in teams For decades a good high school education was all an individual needed to get a good job In the 1970s and 1980s 65 percent of jobs didnt require skilled workers By 2000 just four short years from now 65 percent of jobs will require workers not only with high school educations but two years of technical or computer training as well Demand for many critical skill positions is outstripping the current supply said James Challenger head of outplacement firm Challenger Gray Christmas Companies are seeking workers with higher grade skills and education than before and the marketplace has to adjust or quality and productivity will suffer" For example many companies now expect workers to have technical expertise along with strong interpersonal skills in order to work well with customers go on sales calls and be able to work in teams with other employees Challenger said Employers are finding that the lack of education and practical job experience among candidates is lengthening the hiring process too Companies are hiring but turnover is high at skilled positions because workers are not meeting performance standards Challenger said In the South in particular insufficient or poor education among workers has contributed to the high turnover experienced in many companies By Phyllis Johnson Pres Business Writer The problem isnt new but it may be growing: There arent enough qualified workers to fill job openings Note the reference to qualified Theres a difference business leaders say in warm bodies and able bodies Two small-business surveys released late last year suggest the situation is worsening an ironic twist in a labor market that so often breeds insecurity and apprehension According to economist William Dunkelberg 25 percent of all member companies responding to an ongoing National Federation of Independent Business survey last summer said they had one or more openings that were hard to fill Plans to hire were strong he said but finding qualified workers was increasingly difficult In fact he said 10 percent called it their No 1 problem a complaint category usually reserved for taxes The other survey by National Small Business United and Arthur Andersens Enterprise Group found much the same problem Twenty-five percent of respondents called it a significant challenge up from 13 percent the year before A skilled work force is now seen as one of the major drawing cards for new industry said Brenda Clarke head of research and planning for the local Economic Development Board And skill doesnt mean what it did 20 years ago when many jobs 'yisSk'W' h-S' 'I- frl I Worker quality taken to heart by community By Phyllis Johnson Press Business Writer It is becoming more critical for communities to provide the kind of educational opportunities that will ensure the work force remains well trained and competitive Getting started early is a bonus In recent years the Industrial Council of the local Chamber of Commerce has developed a strategy for taking on the problem in a unique way: up close and personal Known as TIPS which stands for Teachers Industry Parents and Students the multiphased programs major goal is to make sure local companies are getting the workers they need and that schools are providing them Over the past several years teachers and industry reps have sat down with one another and talked something they rarely did before That has brought company leaders into the classroom and sent teachers onto the factory floor in hopes of understanding how both sides depend on one another and how they can work together toward a common goal As the teacher-industry portion of the program advanced organizers laid the groundwork to involve the final critical components parents and students On Tuesday and again on Thursday eighth-grade students at Daniel Boone and David Crockett high schools and their parents will participate in Decisions 96 meetings that will bring all the players to the table So far more 45 local industries and businesses have agreed to come to the schools and tell students and parents what kinds of skills are needed to compete in todays workplace (City schools will repeat the program in late April) Seniors are being encouraged to attend especially those planning to go to work and not college What will come out of these first meetings is anybodys guess says Bill Flanary vocational director for the Washington County Department of Education We want to put the teachers and the parents and the businesses and the students in the same room and let what happens happen We hope businesses will say what they need and tell the students they can start developing those skills right now by being on time to school being prepared to learn and solve problems Flanary said he knows of no other community that is taking such a clearly defined approach to solving chronic shortages of skilled workers I have never seen a community work as hard to get at the problem as this one has Indeed the University of Tennessee Bureau of Business Research annually asks a cross section of executives to rate their major concerns and for the last six years the lack of skilled workers has topped the list Yet few have come forward with suggestions for solving the problem Too often school systems and businesses havent communicated very well Flanary said School systems havent been as responsive to the business community as they should be and the business community has not been as forthcoming as it could be This weeks meetings will go a long way toward helping all sides communicate Flanaiy said Participants will fill out evaluation cards after each meeting telling organizers what they liked and didnt like about the event For information on Decisions 96 call Bill Fla -nary 753-2131 or Ruth Roberts 434-2020 flO CJ5T i rr rw t-J -llt 11 tH 4 1 SvT'-jl -4 1 Staff Photo by Alan Broyles Its a lot easier to erect a sign than it is to find qualified workers Executives say entry-level employees lack basics reported that it is tougher to recruit qualified employees for operational and manufacturing jobs than for professional or management positions But regardless of the career track experienced workers are more difficult to find than entry-level employees When compared to 20 years ago for example 43 percent of those polled said that it is somewhat or much more difficult to find experienced college-educated workers whereas only 30 percent of the respondents said it was tougher to find entry-level professionals Almost half of the executives or 43 percent blame the gap between employee performance and employer expectations on "inadequate linkages between1 business and education The executives believe a combined effort by business and educators will better prepare tomorrows work force by placing greater emphasis on helping teachers develop job-related skills in their students One effective strategy according to 80 percent of respondents would be for business to develop job-related skill standards to be incorporated into school curricula Related25 ATLANTA Despite the predominance of technology in American business tjie nations hiring executives say their biggest worry is not a lack of computer skills among new workers According to a recent survey conducted by the Ciba Educational Foundation most entry-level employees have sufficiently mastered word processing and data entry to get the job done But where they fall short is on the basics from communications skills to problem-solving abilities aptitude for scientific analysis The survey polled business leaders and human resources execu tives from a cross section of top corporations Topics pertaining to preparedness of the US work force included schools ability to teach skills sought by todays global employers Of the 200 executives surveyed 59 percent said that entry-level employees in operational or manufacturing jobs were underqualified when it came to communications skills In contrast 65 percent of respondents said that entry-level workers either met requirements or were overqualified in basic computer skills In general business leaders Prospectus shows SMI driving toward rapid growth TQA program facing crisis in its budget By Phyllis Johnson Press Business Wntsr BLOUNTVILLE The Tennessee Quality Awards program which has garnered national and international attention for helping businesses and institutions improve is dangerously close to going out of business itself This is the first year funding for the TQA program was to be a separate line-item in the states budget So far the $127000 request hasnt shown up in the document As it stands (now) well get no funding from the budget said program director Marie Williams whose office is based here in the Tri-Port Complex We are the most successful program of our kind in the world and we are close to going out of business The TQA office is now being run on a day-to-day basis though officials remain hopeful funding will come through once legislators are aware of the programs importance and success Program officials also are developing strategic long-term plans to raise funds But Williams hasnt given up on a budget appropriation either Were still actively pursuing state budget funding but we have to make plans in case it doesnt come through" The TQA program was set up in 1993 with a large portion of its budget funded by the state and to a lesser extent private contributions from industry and fees for services It has since established itself as one of the most successful quality awards programs in the country Modeled after the Malcolm Baldrige National In late 1995 the company signed a three-year television rights agreement with Turner Sports Inc for coverage of NASCAR races at Charlotte Motor Speedway SMI says it intends to seek similar arrangements for its tracks in Atlanta and Bristol and for its new Texas facility due to open later this year Texas Motorspeedway is currently under construction on 950 acres near Fort Worth The speedway will include a 15 mile lighted banked asphalt quad-oval track with permanent seating for 150000 and 205 luxury suites SMI also is adding 10000 seats at Charlotte as well as 16 luxury suites at Atlanta The company plans to expand its Legends Car business as well SMI sells cars used in Legends Circuit racing events at retail prices of less than $12000 and is the official sanctioning body for the circuit These lower prices will make the cars available to a new group of racing enthusiasts who previously could not race on an organized circuit Legend Cars are an increasingly important part of the companys business rising from 42 percent of revenues in 1993 to 111 percent last year The company also hopes to expand revenues by using its facilities for nonrace-related events such as car shows auto fairs driving schools and settings for television commercials So far nonrace events account for around 2 percent of SMIs annual revenues of $80 million By Phyllis Johnson Press Business Writer BRISTOL Speedway Motorsports Inc which purchased Bristol International Raceway in late January paid $266 million for the facility a little more than three times its assessed value The purchase price is disclosed in a recent prospectus on the companys public offering of 31 million shares of common stock SMI acquired 100 percent of the capital stock in BIR a deal that includes 100 acres a half-mile banked concrete oval track 70905 permanent seats and 31 suites According to the prospectus BIR now renamed Bristol Motor Speedway generated revenues of close to $12 million in 1995 SMI will complete the addition of 4000 permanent seats at the track The project was already under way at the time of the sale Though many observers have worried SMI will eventually move at least one of the NASCAR Winston Cup races run at Bristol the prospectus gives no indication of such plans It does note however that the companys growth in the future depends in part on obtaining one or more additional licenses for NASCAR-spon-sored events Currently two Winston Cup races are run at Bristol along with two Busch Grand National races The prospectus outlines SMIs aggressive agenda for Prospectus says SMI paid $266 million for Bristol Motor Speedway growth Please see CRISIS Page 25 I I.