Talent And The Right Strategic Director Matter
BY GREG WATHEN – APR
CO-CEO OF THE EVANSVILLE REGIONAL ECONOMIC PARTNERSHIP
June 7, 2021
People, population or talent regardless of what one might call it, the reality today is that workforce capabilities are paramount to the fundamental objectives of economic and community development. Talent matters to business attraction as more and more businesses say they could generate additional opportunity if they had workers to fill them.
According to a new report from Oxford Economics… “advances in technology, changing demographic trends, new customer needs and increased competition are radically altering how companies operate in virtually every industry and region of the world, including businesses,†in the Greater Evansville region. And these structural shifts are reshaping both the supply and demand
for talent across Indiana and the globe.
Yet companies challenged with hiring new employees often say they are unable to find the right people with the proper skills. Meanwhile, the sources from which talent might be recruited are also realigning. More talent needs to be “home-grown†as the demand for talent will not wane.
If the pandemic offered a possible solution it is the fact that remote work is becoming stickier; and, the development of broadband or digital infrastructure demands a greater investment in Southwest Indiana.
As a region, we will need to confront the need to undertake a critical “reskilling†of labor in order to meet the new demands of a highly digitized and interconnected world where higher skills will be required.
As Samira Kaderali, Director of Strategic Workforce Planning at American Express puts it, “The notion of human resources being much more analytic and data- driven provides a foundation for HR to be a strategic partner to the business, to help drive business results – this is the conversation that all the business and HR leaders want to have.â€
Economists generally agree that economic development and growth are influenced by four factors: human resources, physical capital, natural resources and technology. Highly developed regions have public and private sector partners that are aligned in these focus areas.
Talent development pathways can be somewhat unclear and unequal, limiting the supply of prepared workers. In Indiana, we’ve focused in the past on a narrow “four-year degree for all†pathway to good jobs as alternative pathways beyond traditional higher education are difficult for individuals to navigate. The entire talent development system suffers from racial and economic inequities that restrict the nation’s productive potential as well.
The U.S. corporate sector invests anywhere between $90-$590 billion annually in training but it tends to disproportionately go to highly-educated workers, which limits building inclusive talent development. What is the correct path to help those that possess fewer skills and see a clear opening to move forward? How should a clearly-understood regional economic development strategy proceed?
Five areas to consider would be to realign how we view regional economic development as investing in to attract, identify and attract talent. Consider targeting economic development that helps build local talent pipelines. Develop and disseminate new skills-based hiring tools that facilitate more efficient and equitable hiring practices. Test new local talent solutions such as TMap, a data-driven platform that helps to link opportunity with talent. Do not be afraid to experiment with talent initiatives that connect middle schools, high schools, community colleges, higher education institutions, and in-demand skills providers with businesses in key growth sectors.
Economic growth relies on innovation and the only way to have sustained economic growth and widespread increases in living standards is to invent more efficient technologies or deploy technologies that allow people to produce more from the limited supply of labor and physical resources.
Education raises living standards and the economy as not only do educated people produce more as workers – and get paid higher salaries – they produce innovative new technologies. Sustained economic growth and higher living standards are possible only if you educate your citizens well. Intellectual property boosts innovation and the economy and people need incentives to take risks. One of the biggest risks in leaving a secure job to start a new business or develop a great new idea would be to fully leverage Indiana’s Elevate Venture initiative, which helps to create start-ups and in turn drive Greater Evansville’s economy.
If there is one macro-issue where there is unease, it is the potential of high rates of inflation due to the federal government’s increasing the money supply too rapidly. We’ve not seen inflation at this particular level for more than 40 years but a growing number of economists are concerned as to whether the U.S. economy has enough elasticity to absorb all of the debt and only time will tell us that answer. From rising food to gasoline prices, the signs are pointing to possible future constriction and as a demand- driven economy, we could be in for some bumpy times ahead.
Economic development helps to protect the local economy from downturns by attracting to, along with assisting, the region’s major employers expand. From the increased presence of both small family- owned businesses to global companies considering new investments in our region, all of this economic activity translates to increased tax revenue for community projects and local infrastructure. Better infrastructure and more jobs improve the economy of the region along with raising the standard of living for all of Greater Evansville’s residents.
The economic environment for a region has serious implications for talent and population growth. Though we have much work to do, the Greater Evansville region is on the right path for the future.
