preparing america’s 21st century workforce: the tech sector weighs in on educational gaps and...

Acknowledgements

ConvergeUS would like to thank the Bill & Melinda Gates Foundation for its generous support in making this report possible. The authors would also like to thank Emily Hays for her research assistance. The survey that is the basis for the second part of this report was conducted by Princeton Survey Research Associates, International (PSRAI). At PSRAI, we would like to thank Evans Witt and Margie Engle-Bauer.

tAble of contents

eXecUtIVe sUmmARY

PARt I Economic Change and Challenges to the Workforce

PARt II A Survey of Business Executives

PARt III Conclusions

endnotes

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eeXecUtIVe sUmmARY

bUsIness eXecUtIVes’ VIews on AmeRIcA’s new woRkfoRce

The global economy has experienced enormous changes in recent years. In the midst of a severe global recession, companies in the United States see more and more revenue opportunities overseas. At the same time, the pace of innovation is accelerating, driven by the growth in connectivity and dissemination of communication technologies. Business must fight harder for market share and workers must develop skills to keep pace with a global marketplace.

Adapting to these changes is among the biggest challenges presently facing the U.S. economy. No single initiative – from the public sector, the private sector, or both – will address this challenge. However, education will be crucial to facilitating these adjustments. Improving the standards to which we hold students will, in turn, be part of how the educational system helps train a 21st century workforce. The Common Core State Standards (CCSS) initiative represents an effort in the United States to establish a framework that will better

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prepare students for college and the workforce.

This report surveys business executives to assess their awareness of CCSS and examine how they view workforce issues facing America. The survey took special care to examine how executives of technology companies responded, since the technology sector drives so much productivity and economic growth.

Two tensions emerge from examining the responses of business leaders:

1. Few think the American educational system is doing its job very well in preparing workers for today’s economy, even as these leaders are most likely to choose education as a key policy intervention that could help economic competitiveness.

2. Business executives – and technology executives especially – most often cite the need for workers who can solve problems and think critically, but a majority are unaware of an initiative – CCSS – that could help give students those capacities.

These tensions nonetheless present an opportunity. Business leaders understand the need to improve the educational system, yet are not as engaged as they should be with CCSS and how those standards can contribute to meeting current and future workforce needs. The report’s findings suggest that stakeholders in the CCSS and business community need to collaborate more effectively in implementing CCSS and other educational reforms.

The survey’s main findings are:

When asked how well the educational system is preparing today’s workers for the economy:

» 56 percent of executives say the educational system does the job somewhat well;

» 33 percent say it does the job not well; and

» only 11 percent says the educational system prepares workers well.

52 percent of business executives are not familiar with Common Core State Standards, with just 14 percent saying they are very familiar with them and 33 percent somewhat familiar.

With respect to policy steps the United States could take to help companies be more competitive, education is cited most often, followed by investments in research and development and corporate tax reform.

» 66 percent of executives say steps to improve education are very important;

» 56 percent say R&D is very important; and

» 54 percent cited corporate tax reform is very important.

In thinking about the important objectives for a high school education:

» 88 percent of executives said teaching students to think and solve problems is very important;

» 80 percent said focusing on basics such as reading, writing, and mathematics is very important; and

» 72 percent said providing skills so students can be productive workers is very important.

Focusing on high schools, the executives surveyed thought the following steps would help improve high schools’ effectiveness in better preparing high school students for college:

» 72 percent cited focusing on skills such as analytical thinking and problem-solving.

» 61 percent cited focusing on basic skills such as reading, writing, and math.

» 51 percent cited monitoring teacher performance.

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Regarding areas in which recent college graduates could improve to be successful in the global workforce:

» 61 percent said improving writing and communication skills would help a lot.

» 59 percent said improving critical thinking and problem-solving skills would help a lot.

» 44 percent said improving graduates’ creative thinking would help a lot.

» 43 percent said improving math skills would help a lot.

Although there was generally a good deal of alignment between respondents in the technology sector compared to those who are not, there were several ways in which tech executives differed from their counterparts in other sectors.

With respect to CCSS, tech executives are slightly more aware of the standards, with 18 percent very familiar and 46 percent saying they were not familiar with them.

» Non-tech executives were less aware of CCSS (12 percent were very familiar with them) and 55 percent were not familiar with them.

When asked about policy steps that would help companies’ competitiveness, technology executives were more likely to cite R&D as very important; 66 percent did, while 51 percent of non-tech executives said this.

Technology executives placed greater relative importance on the need for students to develop the capacity for critical thinking and problem-solving. All executives shared this view, but tech executives tended to place less emphasis on the importance of other educational objectives such as basic skills or good citizenship.

» While 88 percent of both tech and non-tech executives cited “teaching students to think and solve problems” as a very important objective for a high

school education, tech executives were less likely than non-tech executives to cite acquiring basic skills (by a 77 percent to 82 percent margin) and becoming a good citizen (by a 60 percent to 68 percent margin).

» Similarly, when asked what changes would be most effective in preparing high school students for college, about three quarters of all executives cited analytical skills and problem-solving. But fewer tech execs cited focusing on basic skills like math and writing (by a 55 percent to 64 percent margin) and fewer said reforming public schools (41 percent of tech executives said this versus 51 percent of non-tech executives).

Technology executives placed greater emphasis than their non-tech counterparts on the need for better math and science education at all levels.

» By a 42 percent to 30 percent margin, tech executives say focusing on teaching the sciences would better prepare high school students for college.

» By a 48 percent to 39 percent margin, tech executives say recent college graduates should improve their math skills to thrive in today’s global workforce.

» By a 41 percent to 25 percent margin, tech executives say having greater scientific and engineering knowledge would help recent college graduates be successful in today’s global workforce.

» By a 34 percent to 25 percent margin, tech executives say that keeping up to date with computers and programming skills would help recent college graduates do well in the workforce.

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PARt IeconomIc chAnge And chAllenges to the woRkfoRce

The globalization of the economy has accelerated the pace of economic change. In one of the economy’s most dynamic sectors – information and communications technology – companies that are household names such as Apple, Microsoft, Intel, and IBM now see large shares of their revenues coming from overseas. In 1999, 57 percent of Intel’s sales were in foreign countries, a share that grew to 82 percent in 2009. Cisco’s overseas sales rose from 39 percent to 50 percent in that timeframe, and Microsoft’s jumped from 30 percent to 43 percent. The pattern for Apple was the same, if less pronounced, with an increase in foreign sales from 46 percent to 51 percent from 1999 to 2009, with IBM showing a similar pattern with an increase from 57 percent to 64 percent.1

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These developments place the American worker in the thick of international competition more so than ever before. American workers remain the most productive in the world, but the productivity advantage the United States has traditionally enjoyed over its trading partners is narrowing.

Globalization does not just challenge traditional trading patterns and competitive positions. It also means U.S. workers have to adapt and change with the economy. Plenty of anecdotal evidence indicates that the increasingly global economy requires workers to have a range of problem-solving skills, the ability to effectively communicate with others, and the capacity to collaborate with people within their companies and those external to them.

This report serves as a review of recent trends in the American workforce and how structural changes to the economy places new demands on the skills of U.S. workers. In conducting this review, the context is thinking about Common Core State Standards (CCSS) and how they might help in preparing American workers for jobs of today and tomorrow. CCSS seek “to provide a clear and consistent framework to prepare our children for college and the workforce.” 2 The standards do not try to impose specific curriculum requirements on schools, but rather set benchmarks for the kinds of skills and capacities students should have to be ready for post high school education. By themselves, CCSS will not address all challenges to addressing gaps in workforce preparedness. But they are part of the solution to aligning the education students receive to the needs of a fast-pace global economy.

The report will also, through a survey of business executives, shed light on employers’ attitudes toward the workforce needs for our economy. In particular, the survey explores how employers view the skills of the workers they hire, with

special attention paid to whether executives in the tech industry differ from other sectors of the economy on these issues. The interest in the technology sector is driven by this sector’s importance to the broader economy. To take one data point, the Internet accounted for 21 percent of economic growth in mature economies from the 2004-2009 timeframe, with most (75 percent) of the growth benefits falling outside the tech sector and benefiting companies in manufacturing and services.3

stRUctURAl economIc chAnge

Over the last several decades, the way we live and work in the United States has changed significantly. Certain industries have become obsolete, technological advancements have fundamentally altered the skills required of workers in other industries and the growth of the “knowledge economy” has increased the relevance of other skills. Though the causes of this shift are manifold, the United States has a new status quo:

1. The nature of work is different than previous decades;

2. The skills workers need to maintain stable employment are also distinct, and;

3. How firms, and the economy, grow and innovate has been fundamentally altered by the computing and knowledge exchange revolutions.4

Chart 1 shows the changes in employment—and thereby the change in the makeup of the U.S. economy—from 1939 through 2011. Industries such as professional and business services, as well as education and health services, are on the rise while manufacturing is on a steady decline. Those growth industries require generally higher-skilled and higher-educated workers than the industries in decline.

Economic literature documents this polarization of the labor market in the last several decades.

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Job opportunities in the United States have steadily trended towards either low-skill, low-wage occupations or high-skill, high-wage occupations, with middle-skill and wage white collar and blue-collar jobs decreasing.5

Chart 2 shows this phenomenon through the percent changes in employment in occupations from 1983 through 2011. High-wage, higher-skill occupations like management and certain services have experienced positive growth, even during the most recent recessionary period.

Similarly, low-skill, low-wage occupations like protective services, food prep and personal care services have experienced positive growth. The occupations in the middle of the chart that are disappearing are the middle-skill, middle-wage positions.

Chart 3 illustrates the difference in the make-up of the U.S. economy by skill—the percentage of occupations requiring middle-skill levels has dwindled from 75 percent in 1980 to 68 percent in 2009.

chARt 1

Source: U.S. Bureau of Labor Statistics, Establishment Data, Table B-1

10%

20%

30%

40%

50%Manufacturing

Professional and business services

Trade, transportation and utilities

Education and health services

Leisure and hospitality

20111939 19711955 1991

selected IndUstRIes As A shARe of All PRIVAte, nonfARm emPloYment: 1939-2011

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Source: Current Population Survey; Reprinted from Autor, “The Polarization of Job Opportunities in the U.S. Labor Market,” (2010)

chARt 2

Source: U.S. Census Bureau

chARt 3

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Managers Professionals Technicians Sales Office and admin

Production, craft and

repair

Operators, fabricators

and laborers

Protective services

Food prep, building

and grounds cleaning

Personal care and personal services

1979–1989 22% 28% 37% 54% 11% 10% -5% 36% 31% 7%

1989–1999 27% 30% 17% 14% 3% 4% 1% 20% 11% 12%

1999–2007 15% 11% 14% 4% 1% 8% -11% 20% 18% 31%

2007–2009 -1% 0% 2% -7% -8% -17% -15% 2% 0% 5%

PeRcentAge PoInt chAnge In emPloYment bY occUPAtIon, 1979-2009

shARes of emPloYment bY occUPAtIon

High skill Middle skill Low skill

20091980

12% 15%

75% 68%

17%13%

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chAngIng oRgAnIzAtIon of fIRms

In the past several decades, changes to the global economy have been characterized as the emergence of a “knowledge economy.” The data, processing, and computing revolutions that have increased the speed at which information is accumulated, analyzed, and acted upon to generate value define the “knowledge economy.” The term is used to describe an economy whose growth is realized from the export of low-cost and high-end knowledge-based services rather than manufacturing products.

The rise of the knowledge economy has increased the importance of certain cognitive and collaborative skills and competencies in the workforce, and made other skills obsolete.6 Firms increasingly need employees who have the ability to “articulate and integrate” information into activities rather than skilled manufacturing laborers, for example.7 For many workers, information technology calls on them to engage in problem-solving and complex communications tasks, increasing the relative productive capacity of each worker.8

Until recently, it has been relatively difficult to observe and measure the core competencies—knowledge, skills, and abilities—required by different occupations. The U.S. Department of Labor and others have compiled the Occupational Information Network (O*NET), which catalogs the competencies required for certain occupations through surveys of people who have those jobs. These

competencies are defined as knowledge classifications, skills, and abilities. Specifically:

1. Knowledge is information, like Mathematics, Chemistry, English Language ,and Accounting.

2. Skills are competencies developed in particular domains that allow ongoing learning in that domain and are broken down into content, processing, and problem-solving skills.

3. Abilities are the personal attributes that influence performance in a work setting—similar to the concept of aptitudes.

The O*NET database categorizes abilities with such labels as creativity, innovation, mathematical reasoning, and oral and written expression.9

The capacities to thrive in today’s workforce are also associated with having sufficient training in science, technology, engineering, and mathematics (STEM). Researchers at the Georgetown University Center on Education and the Workforce have produced a thorough analysis of the knowledge, skills, and abilities associated with STEM occupations as well as their transferability to other, “competitive” occupations. They found that STEM skills and abilities in particular are highly valued across the economy, particularly in several occupations that are shown to be growing such as managerial, professional, and healthcare professional occupations. Those skills and abilities are enumerated in Figures 1 and 2.

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Source: Carnevale, Smith, Melton, STEM Report, Georgetown University Center on Education and the Workforce (2011)

fIgURe 1

Mathematics Using mathematics to solve problems.

Science Using scientific rules and methods to solve problems.

Critical Thinking Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.

Active Learning Understanding the implications of new information for both current and future problem-solving and decision making.

Complex Problem-solving Identifying complex problems and reviewing related information to develop and evaluate options and implement solutions.

Operations Analysis Analyzing needs and product requirements to create a design.

Technology Design Generating or adapting equipment and technology to serve user needs.

Equipment Selection Determining the kind of tools and equipment needed to do a job.

Programming Writing computer programs for various purposes.

Quality Control Analysis Conducting tests and inspections of products, services, or processes to evaluate quality or performance.

Operations Monitoring Watching gauges, dials, or other indicators to make sure a machine is working properly.

Operation and Control Controlling operations of equipment or systems.

Equipment Maintenance Performing routine maintenance on equipment and determining when and what kind of maintenance is needed.

Troubleshooting Determining causes of operating errors and deciding what to do about it.

Repairing Repairing machines or systems using the needed tools.

Systems Analysis Determining how a system should work and how changes in conditions, operations, and the environment will affect outcomes.

Systems Evaluation Identifying measures or indicators of system performance and the actions needed to improve or correct performance, relative to the goals of the system.

Core Skills Associated with STEM and Competitive Occupations

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Source: Carnevale, Smith, Melton, STEM Report, Georgetown Univercity Center on Education and the Workforce (2011)

fIgURe 2

Abilities Associated with STEM and Competitive Occupations

Problem Sensitivity The ability to tell when something is wrong or is likely to go wrong. It does not involve solving the problem, only recognizing that there is a problem.

Deductive Reasoning The ability to apply general rules to specific problems.

Inductive Reasoning The ability to combine pieces of information to form general rules or conclusions (includes finding a relationship among seemingly unrelated events).

Mathematical Reasoning The ability to choose the right mathematical methods or formulas to solve a problem.

Number Facility The ability to add, subtract, multiply, or divide quickly and correctly.

Perceptual Speed

The ability to quickly and accurately compare similarities and differences among sets of letters, numbers, objects, pictures, or patterns. The things to be compared may be presented at the same time or one after the other. This ability also includes comparing a presented object with a remembered object.

Control Precision The ability to quickly and repeatedly adjust the controls of a machine or a vehicle to exact positions.

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how the U.s. woRkfoRce stAcks UP

The changing nature of the economy and firms now requires core skills and abilities that can be applied and adapted to a variety of work settings. Yet, research indicates that a country that attempts to move towards a knowledge-based economy but does not keep pace in developing a highly-skilled labor force will face constraints to its growth.10

These constraints are evident in the U.S. labor force: there is a strong demand and an inadequate supply of employees with the appropriate skill levels—and that gap seems to be growing. According to results from consulting firm Manpower’s international survey of employers, 52 percent of employers reported difficulty filling jobs due to lack of

available talent. This number is up 38 percentage points from 2010, perhaps indicating that, as the economy rebounds and rebuilds, the workforce is having great difficulty keeping up.11

Chart 4 shows the gap between job openings and unemployment in the U.S. from December 2000 through January 2012. In an economic expansion, the gap between job openings and unemployment should contract, while during a contraction, the rates should move inversely. Since the most recent recession, the gap between job openings and unemployment has narrowed somewhat, but the gap is still near historic highs. This movement indicates that the U.S. economy is experiencing the pangs of a mismatch between its labor force and its productive activities.

Source: BLS / JOLTS for job openings, CPS for unemployment rate

chARt 4

2001

Unemployment

12

10

8

6

4

2

02002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Job Openings

Job oPenIngs RAte And UnemPloYment RAte, seAsonAllY AdJUsted, decembeR 2000-JAnUARY 2012

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At the same time, policymakers and business leaders have seized upon a lack (or perceived lack) of a robust Science, Technology, Engineering and Mathematics (STEM) workforce as a critical barrier to continuing economic growth, innovation, and global leadership. As noted above, Carnevale, Smith, and Melton indicate this concern is likely warranted, but not for the reasons traditionally assumed.12 They note that, increasingly, STEM-competencies are valued and rewarded outside traditional STEM fields, leading to workers moving to those jobs. That is, as innovation changes, those skills traditionally associated with STEM are progressively more necessary in non-STEM occupations.13

The growth in STEM occupations indicates that the demand for those competencies will continue to increase. Chart 5 shows the projected growth of STEM occupations as a percentage of total occupations from 2010 to 2020. Chart 6, shows a breakdown of projected growth in STEM occupations categories from 2010 to 2020 compared with projected growth in all occupations for the same time period. By 2020, STEM occupations as a whole will have gained ground compared with the rest of the economy by the time the United States fully emerges from the recession. While the total number of jobs in the United States is projected to grow 14.3 percent between 2010 and 2020, from 143 million to 163.5 million, the number of STEM jobs is projected to rise by 17 percent, making it one of the most dynamic occupation clusters in the economy.

Yet, despite growing demand for workers with facility in STEM fields, there is ample evidence that the United States is lagging in this area. In both 2006 and 2009, the U.S. scored below many other developed countries in the Programme for International Student Assessment in mathematics literacy, science literacy and reading. The average mathematics literacy score of U.S. 15-year-olds declined about 9 points from 2003 to 2006, and then rose about 13 points in 2009, placing the United States below 17 of 33 other members of the Organisation for Economic Co-operation and Development (OECD). The average science literacy score of U.S. 15-year-olds was not measurably different from the 2009 OECD average, though it improved by 3 points from 2006 to 2009. The U.S. score was lower than the score of 12 out of 33 other OECD nations participating in the assessment. Finally, in reading, the United States placed below 9 of 33 other members of the OECD in 2009.

It is also the case that jobs requiring STEM capacities are becoming more widely distributed in the economy. The demand for high-skills has grown beyond the careers that require Bachelor’s or graduate degrees; some 27 percent of STEM postsecondary jobs require competencies below those levels.

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Source: Bureau of Labor Statistics, Occupational and Employment Wage Estimates, Employment Projections – 2010-2020

chARt 5

Source: Bureau of Labor Statistics, Occupational and Employment Wage Estimates, Employment Projections – 2010-2020

chARt 6

0%

1%

2%

3%

4%

5%

6%

2020 Projected

201020092008200720062005200420032002200120001999

stem occUPAtIons As A PeRcentAge of totAl emPloYed, 1999-2020

PRoJected PeRcent chAnge In emPloYment bY selected occUPAtIonAl gRoUP, 2020

0

5

10

15

20

25

Life, Physical, and Social Science

Architecture andEngineering

Computer andMathematical

All Occupations

Occupational Category

Proj

ecte

d Pe

rcen

t Cha

nge

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As Tom Friedman and Michael Mandelbaum have pointed out, employers today, no matter the sector, are looking for people “who can think critically, who can tackle non-routine complex tasks, and who can work collaboratively with teams located in their office or globally.” This means that, while the U.S. needs more graduates in the sciences and engineering, it also needs more than just that if it is to have a workforce that can compete in the 21st century’s global economy. It needs a workforce with the right mix of skills to participate in an innovation system that is driven by creativity, collaboration, and technology.

These demands on workers are arguably more urgent for the technology sector, where the pace of innovation, coupled with its disproportionate contribution to economic growth, call for a steady supply of workers with the right mix and range of skills. How do business leaders in the technology and other industries view the ability of America’s educational system to produce students who can thrive in today’s workforce? This report now turns to the results of a survey that examined these issues.

Role of edUcAtIon

The preceding discussion shows how education – namely STEM education – can ensure there is a pipeline of people coming out of schools with skills that prepare them for jobs in demand. There are two additional ways in which education policies can improve labor force participation by upgrading workers’ skills:

1. By providing students the opportunity to acquire skills; and,

2. Demonstrating to potential employers that they are certified in specific skills.

An education system that allows students to acquire critical skills and competencies and certify them transparently will generate workers that hold visibly marketable skills. The Common Core State Standards (CCSS) are an example of a standardized qualification system that would improve the transparency of earned qualifications—a K-12 education in the United States. As noted at the outset, CCSS is not a comprehensive solution to addressing the challenges and gaps laid out in this report. But they have an important role to play in developing a workforce that fits the 21st century economy.

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A sURVeY of bUsIness eXecUtIVes

The first part of this report shows that the U.S. must take action to improve workers’ readiness to participate in a rapidly changing economy. This portion of the report hones in on the steps employers think are necessary to better prepare students for today’s workforce. To do this, ConvergeUS conducted a survey of 294 business executives whose firms have 25 or more employees, asking them a series of questions about their attitudes about today’s workforce.

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The sample of business executives, for the survey fielded from March 5 to March 30, 2012, represented a cross section of U.S. businesses and organizations. Nearly one-third said their firms had between 25 and 99 employees, with a similar number having more than 500 employees, and the remaining one-quarter having between 100 and 499 workers (a later section of the report provides greater detail).

At a high level, the survey asked business executives about three things:

1. The steps the U.S. might take to make U.S. companies more competitive in the world economy;

2. How well they believe the U.S. educational system is preparing workers for today’s jobs; and,

3. The specific skills or knowledge bases executives see as important to the workforce of the future.

These questions were asked in the context of executives’ awareness of the CCSS initiative. Nearly half of respondents (47 percent) said they were at least somewhat familiar with CCSS, with 14 percent very familiar and 33 percent somewhat familiar. Some 52 percent said they were not familiar with CCSS, with just 1 percent not offering a response.

oVeRAll ResUlts

This portion of the report presents the basic findings, that is, the responses of business executives to the main substantive portion of the survey. At the outset of the survey, business executives were asked how important they would rate various policy steps that the United States could take to help countries be more competitive.

tAble 1

Very Some-what Not too Not at all

Education 66% 26% 3% 3%

Research and development 56 30 8 4

Corporate tax reform 54 29 11 5

Infrastructure 45 39 10 3

Trade agreements 42 32 15 8

Immigration reform 40 27 21 9

Thinking about policy steps the United States could take to help companies be more competitive in the world economy, please tell me how important initiatives or investments in each of the following areas would be?

Source: ConvergeUS survey of companies and organizations with 25 or more employees, March 5-30, 2012. N=294.

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As the responses show, education is the policy area most often cited as a very important area on which to focus to make U.S. companies more competitive. The second tier issues are research and development and corporate tax reform, with a majority of executives citing them as very important to helping competitiveness. Areas such as improving infrastructure, negotiating trade agreements, and immigration reform are also seen as very important by a sizable share of respondents.

But, when asked how well the U.S. educational system is preparing workers for jobs in today’s economy, business executives’ views are tepid at best. Just 11 percent say the educational system is doing that job very well, with most (57 percent) saying somewhat well, and a full one-third (33 percent) saying not well.

With education seen as an important priority for the country, yet not delivering adequately, the questions become: What are the gaps? What are the skills or capacities students need to prepare better for the workforce? The survey addressed these questions by examining respondents’ views on:

1. The importance of various objectives of a high school education;

2. The steps that would be effective in better preparing high school students for college; and,

3. The areas recent college graduates need to improve to be successful employees in today’s economy.

cRItIcAl obJectIVes of edUcAtIon

Here is what respondents said when asked to rate the importance of various objectives of a high school education.

tAble 2

In your opinion, how important are each of the following objectives for a high school education?


Very Somewhat

Teaching students to think and solve problems. 88% 9%

Focusing on basics such as reading, writing, and mathematics 80 15

Providing skills so students can be productive workers 72 22

Becoming good citizens in society 65 30

Providing a basic education and additionally music, art, and physical education

52 36

Preparing students to attend college 52 40

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A clear message from this question is that executives want students to be prepared to be productive workers, but they are somewhat more focused on those students’ basic skills and problem-solving abilities. This sentiment shows up more clearly in a follow-up question, when respondents were asked to identify the most important objective of a high school education. Among all business executives:

» 38 percent said teaching students to think and solve problems was the most important objective of a high school education;

» 22 percent said focusing on teaching basic skills such as reading, writing, and math;

» 18 percent said providing skills so that students can be productive workers;

» 8 percent said preparing students to attend college;

» 6 percent said providing basic education and, additionally, art, music, and physical education; and

» 6 percent said training them to become good citizens in society.

effectIVeness of edUcAtIon sYstem In PRePARIng stUdents foR college And the woRkfoRce

Respondents reiterated the importance of cultivating problem-solving capacity when the questions turn to steps that might be taken to better prepare high school students for college. Among the respondents who said it was very or somewhat important for a high school education to prepare students for college (271 out of 294 respondents), executives ranked problem solving most often as a very important input into college readiness. The full answers are in Table 3.

When asked to choose between two priorities in preparing students who attend college for career success, the problem-solving theme reappears. More than half of respondents – 56

percent – chose “gaining broad knowledge and a wide range of skills that can be applied to changing assignments and responsibilities” compared to the 18 percent who chose “gaining in-depth knowledge in a specific field.” (The remaining 26 percent were split between choosing both or saying neither was important.)

IdentIfYIng skIll And comPetencY gAPs Amongst Recent college gRAdUAtes

Next, the survey turned to the issue of how much recent college graduates need to improve various areas to be successful in today’s workforce. Although the theme of problem-solving and critical thinking appeared again, writing and communication skills were equally prominent.

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tAble 3

tAble 4

Very Somewhat Not too Not at all

Focusing on skills such as analytical thinking and problem-solving 72% 23% 3% 1%

Focusing on basic skills such as reading, writing, and math 61 34 4 1

Monitoring teacher performance 51 37 10 2

Reforming how public high schools are organized and run 48 39 11 1

Teaching time management and study skills 47 44 7 1

Creating more rigorous national standards that students must achieve to graduate 37 43 16 3

Increasing funding for high schools 35 40 17 7

Focusing more on teaching the sciences, such as biology and chemistry 35 49 14 2

How effective would each be in better preparing high school students for college?

How much do you think recent college graduates need to improve in the following areas in order to be successful employees in today’s global workforce?

Source: ConvergeUS survey of companies and organizations with 25 or more employees, March 5-30, 2012. N=271 for respondents who said it is “somewhat” or “very” important for a high school education to prepare students for college.


A lot Some Not too much None

Writing and communication skills 61% 28% 7% 2%

Critical thinking and problem-solving skills 59 31 6 2

Thinking creatively 44 40 11 3

Having math skills, such as understanding statistics 43 39 12 4

Working together with a diverse group of people 34 36 21 5

Having scientific or engineering knowledge 31 42 20 3

Locating, organizing, and evaluating information from multiple sources 30 43 21 3

Keeping up to date on the latest in computers, such as programming and other technology skills 28 40 24 7

Proficiency in a foreign language 25 41 23 7

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Yet, when asked to cite two areas where recent college graduates need the most improvement, critical thinking and problem-solving skills again rose to the top. Specifically, here is what business executives said when permitted to pick the two most important things recent grads could improve:

tAble 5

37% Critical thinking and problem-solving skills

15 Writing and communication skills

9 Having math skills, such as understanding statistics

6 Working together with a diverse group of people

4 Locating, organizing, and evaluating information from multiple sources

3 Proficiency in a foreign language

3 Thinking creatively

2Keeping up to date on the latest in computers, such as programming and other technology skills

2 Having scientific or engineering knowledge

* Other (Specify)

17 No answer

how tech comPAnIes see thIngs

Of particular interest in this research is how executives of technology-oriented companies view the educational and workforce development challenges facing the country. The survey asked respondents about the line of business in which their company operates, and also asked, irrespective of whether the company might meet a formal definition of a technology company, whether respondents considered themselves to be working for a technology-oriented company. Overall, about one-third (35 percent) of those responding said that their company operated in the technology industry. This section compares responses from executives in technology companies to those in the sample not in the technology sector.

It is important to note that with the sample size of 294 for the entire survey, 103 executives interviewed are in the tech sector, with the remaining 191 not in businesses that are considered in the technology sector. These relatively small sample sizes often make distinguishing responses difficult from a statistical perspective. For the most part, differences are suggestive, with those being statistically different noted in the text.

In Table 6, respondents’ views on research and development (R&D) are the only statistically significant difference between tech executives and their non-tech counterparts. Since technology companies typically rely on R&D to a greater extent than most other kinds of companies, it is not a surprise that executives in these companies view it as a national priority to a greater extent than other executives. Tech executives see education and R&D as the most important priorities for the United States, while

23

non-tech executives view education as the main issue, followed by corporate tax reform.

Turning to familiarity with CCSS, though the differences in the table below indicate tech and non-tech executives are different only at a low level of statistical confidence, the results suggest a higher awareness of this issue for tech executives relative to non-tech executives in the sample.

Similarly, tech executives are (at a low level of statistical confidence) more likely to believe the

tAble 6

Tech Execs (n=103)

Non-tech Execs (n=191)

Education 68% 64%

Research and development 66* 51

Corporate tax reform 51 56

Infrastructure 42 46

Trade agreements 40 43

Immigration reform 41 40

Comparing Executives in the Tech Industry With All Others (those who say issue is very important)

Comparing Executives in the Tech Industry With All Others (Familiarity with CCSS)

Source: ConvergeUS survey of companies and organizations with 25 or more employees, March 5-30, 2012.

* Indicates significant difference.


educational system does very well at preparing workers for today’s jobs. This may be because tech companies can often be more selective in hiring workers, thereby allowing them to screen out candidates with lower levels of preparedness. However, notwithstanding the modest differences, the overall results from this question are clear. One-third of executives do not think students are well prepared for the challenges of today’s jobs and more than half think the educational system does its job (with respect to workforce preparedness) only somewhat well.

tAble 7

Tech Execs (n=103)


Very familiar 18% 12%

Somewhat familiar 33 35

Not familiar 46 55

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Turning to respondents’ perspectives on objectives for a high school education, tech executives focus most often on the need to teach students how to think and solve problems. Non-tech executives share this view, but are somewhat more likely to say that the “basics” are very important relative to tech executives. Although the table shows other differences between tech and non-tech executives, caution about the small sample size is in order. For instance, it makes sense that tech executives (whose companies generally call for a high level of educational attainment than others) are more likely to emphasize the need to prepare high school students for college, the small sample size means the results are only suggestive.

Tech Execs (n=103)


Very well 15% 8%

Somewhat well 57 55

Not well 29 35

tAble 8

tAble 9

Comparing Executives in the Tech Industry With All Others (How well educational system prepares workers for today’s jobs)

In your opinion, how important are each of the following objectives for a high school education? (% very important)



When asked to prioritize the most important objectives, tech and non-tech executives do not differ on what is most important – namely teaching students to think and solve problems. However, tech executives are more likely than their counterparts elsewhere to say it is most important that high schools impart the skills for students to be productive workers. It is notable that (albeit at a low level of statistical confidence) that non-tech executives are more likely than non-tech executives to emphasize the importance of the basics – reading, writing, and math.

Tech Execs (n=103)


Teaching students to think and solve problems.

88% 88%

Focusing on basics such as reading, writing, and mathematics

77 82

Providing skills so students can be productive workers

69 73



47 55

25

tAble 10

tAble 11

In your opinion, how important are each of the following objectives for a high school education? (% most important)

In your opinion, how important are each of the following objectives for a high school education? (% most important)



When asked to reflect on steps high schools might take to better prepare students for college, again non-tech executives are more likely than those in the technology sector to cite the basics. Non-tech executives are also notably more likely to point to reforming public high

schools. However, it is not a surprise that tech executives are more focused on the sciences than their non-tech colleagues; by a 42 percent to 30 percent margin tech executives say high schools would do a better job preparing students for college by focusing on the sciences.

Tech Execs (n=103)


Teaching students to think and solve problems.

37% 38%

Focusing on basics such as reading, writing, and mathematics

17 25

Providing skills so students can be productive workers

24 15



3 8

Preparing students to attend college 11 6

Tech Execs (n=103)


Focusing on skills such as analytical thinking and problem-solving

72% 71%

Focusing on basic skills such as reading, writing, and math

55 64

Monitoring teacher performance 48 52

Reforming how public high schools are organized and run

41 51

Teaching time management and study skills

46 47

Creating more rigorous national standards that students must achieve to graduate

36 38

Increasing funding for high schools 33 36

Focusing more on teaching the sciences, such as biology and chemistry

42 30

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When given a choice between the importance of having broad knowledge and skills to handle different assignments and in-depth knowledge of a specific field, there are no differences for tech versus non-tech executives; 56 percent in each group says it is more important for students to have a broad knowledge and wide range of skills that can be applied to changing assignments. However, by a 22 percent to 16 percent margin, tech execs are more likely to say it is important to gain in-depth knowledge of a specific field.

With the focus on college graduates and the areas they need to improve to meet the challenges of today’s workforce, both critical thinking and communications skills come to the forefront in equal measure for executives in the tech and non-tech sectors. As the following table shows, some three in five of all executives say critical thinking and problem-solving skills are areas where college graduates can improve. The same number says writing and communications skills are in need of improvement.

Tech executives part ways from their non-tech counterparts in three areas where they are more likely to place emphasis on the need for improvement:

1. Understanding math and statistics and knowledge of science and engineering;

2. Writing and communications skills; and,

3. Keeping up with the latest in technology and computers.

It is worth noting that non-tech executives are more likely than tech executives to say that creative thinking and working with a diverse group of people represent areas in which college graduates could improve.

When asked to identify the two areas most in need of improvement for today’s college

graduates, “critical thinking and problem-solving skills” are mentioned most often, with 39 percent of tech executives saying this and a similar number (34 percent) of non-tech executives saying this. Thereafter, “writing and communications skills” and “understanding math and statistics” are mentioned in equal measure, with 15 percent and 9 percent of all executives citing those, respectively.

tAble 12

Tech Execs (n=103)


Critical thinking and problem-solving skills 60% 58%

Writing and communication skills 58 62

Having math skills, such as understanding statistics

48 39

Having scientific or engineering knowledge 41 25

Thinking creatively 37 48

Keeping up to date on the latest in computers, such as programming and other technology skills

34 25

Locating, organizing, and evaluating information from multiple sources

31 29

Working together with a diverse group of people

29 37

Proficiency in a foreign language 26 24


How much do you think recent college graduates need to improve in the following areas in order to be successful employees in today’s global workforce?

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tAble 13 tAble 14

A PRofIle of the comPAnIes ResPondents woRk foR

The survey asked respondents questions about the company for which they work. Just over one-third (36 percent) of companies whose executives participated in the survey operate in a single location, with 62 percent saying they have more than one location. For firms in the technology sector, 27 percent operate out of one location, with 41 percent of non-tech companies saying that have multiple locations.

In terms of size, the following table shows the share of firms whose number of employees fall into specific intervals.

As to revenues, here is how they breakout among for-profit entities in the sample (which is 87 percent of the 291 respondents). In this sample, technology firms tend to be larger than non-tech firms – both in terms of number of people employed and revenues.

Source: ConvergeUS survey of companies and organizations with 25 or more employees, March 5-30, 2012. Source: ConvergeUS survey of companies and organizations

with 25 or more employees, March 5-30, 2012.

Revenue for your company

All respondents

(n=294)

Tech Firms

(n=103)

Non-Tech Firms

(n=191)

25 to 99 employees 32% 29% 34%

100-499 employees 26 28 25

500-999 employees 8 7 8

1,000 or more employees

26 32 23

No response 8 4 9

All respondents

(n=294)

Tech Firms

(n=103)

Non-Tech Firms

(n=191)

Less than $500,000 2% 1% 2%

$500K to $1,000,000 3 2 3

$1 million to $2 million 8 10 6

$2 million to $3 million

7 5 9


10 6 12


16 15 17

$10 million or more 55 61 51

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Tech firms in the sample also rely more heavily on an educated workforce than non-tech firms in the sample. The survey asked to specify the level of education required for most jobs in their company or organization. As the table below shows, executives at tech firms are much more likely to say most of the jobs in their company require a college degree, with non-tech firms similarly more likely to say that most of the jobs in their organization require a high school degree or less.

tAble 16

tAble 15

Tech companies in the survey were also far more globally oriented than non-tech firms sampled, with two measures capturing the degree to which firms whose executives took the survey have an international flavor. First, the survey asked respondents whether their company has any staff located outside the United States. One third (32 percent) of all respondents said they had staff outside the United States, but there were large differences when contrasting tech firms with non-tech firms. Half (52 percent) of executives with tech firms they had staff outside the United States, compared with 22 percent of non-tech firms who said this.

As to revenues, nearly three quarters (73 percent) of tech companies derive at least some of their revenues from foreign sales, a stark contrast to the 41 percent figure for non-tech companies in the survey. The breakdown by share of revenues that come from sales outside the United States is as follows.

All respondents

(n=294)

Tech Firms

(n=103)

Non-Tech Firms

(n=191)

A high school degree or less 20% 7% 27%

Two years of college or some vocational training after high school

16 15 16

A four year college 46 59 38

Post graduate education

18 18 18

What is the level of education required for most jobs in your company or organization?

What percentage of your company’s revenue is derived from sales outside the U.S?



All respondents

(n=294)

Tech Firms

(n=103)

Non-Tech Firms

(n=191)

None 68% 27% 59%

1-24% 17 39 27

25-49% 9 18 9

50-100% 6 14 3

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PARt IIIconclUsIons

One clear message from this report is that our economy is undergoing rapid change and that this change places new demands on the workforce. Workers need to acquire skills to keep pace with a global economy and continually update those skills. And it is not just about having skills – it is also about workers having the ability to think critically, solve problems, and collaborate with others.

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and how those standards can contribute to meeting current and future workforce needs. The report’s findings suggest that stakeholders in the CCSS and business community need to collaborate more effectively in implementing CCSS and other educational reforms.

Collaboration is a watchword these days – with good reason. Global supply chains call on business to work across organizational and national boundaries to create goods and services. Agencies within government and across levels of government are more effective in serving the public when they coordinate. Much the same is true in the non-profit sector. This report indicates that additional collaboration is called for in another area – education and workforce preparation. As the survey shows, business understands how education can help their companies by closing gaps in workforce preparedness. The survey also shows business executives have an awareness gap when it comes to CCSS. Addressing both gaps jointly among all participants in the workforce and education environment could contribute to a stronger American society and economy.

Common Core State Standards have an important role to play giving today’s students the wherewithal to participate in a 21st century workforce. Yet, when asked about whether they know about CCSS, half of business executives surveyed are not aware of them. In fact, the report and the survey show tensions in how business leaders see workforce challenges. Specifically:

1. Few business executives think the American educational system is doing its job very well in preparing workers for today’s economy, even as these leaders are most likely to choose education as a key policy intervention that could help economic competitiveness.

2. Business executives – and technology executives especially – most often cite the need for workers who can solve problems and think critically, but a majority are unaware of an initiative – CCSS – that could help give students those capacities.

These tensions nonetheless present an opportunity. Business leaders understand the need to improve the educational system, yet are not as engaged as they should be with CCSS

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endnotes

1 Steve Lohr, “Global Strategy Stabilize IBM During Downturn,” New York Times. April 19, 2010. Available online at: http://www.nytimes.com/2010/04/20/technology/20blue.html?_r=1

2 See Common Core State Standards Initiative, available online at: http://www.corestandards.org/about-the-standards

3 McKinsey Global Institute, Internet Matters: The Net’s sweeping impact on growth, jobs, and prosperity. May 2011. Available online at: http://www.mckinsey.com/Insights/MGI/Research/Technology_and_Innovation/Internet_matters

4 Moira Nelson, “The Adjustment of National Education Systems to a Knowledge-Based Economy: a New Approach.” Comparative Education. 46.4 (2010): 463-486.

5 For quantitative explorations of the polarization of the U.S. labor market, see David H. Autor, The Polarization of Job Opportunities in the U.S. Labor Market: Implications for Employment and Earnings. Washington, D.C: Hamilton Project, Brookings Institution, 2011; Claudia D. Goldin and Lawrence F. Katz. The Race between Education and Technology. Cambridge, Mass: Belknap Press of Harvard University Press, 2008.

6 See Timothy Bresnahan, Erik Brynjolfsson, and Lorin M. Hitt. Information Technology, Workplace Organization, and the Demand for

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Skilled Labor: Firm-level Evidence. Cambridge, MA: National Bureau of Economic Research, 1999; F. Green, D. Ashton, B. Burchell, B. Davies, and A. Felstead. “Are British workers becoming more skilled?” In The overeducated worker? The economics of skill utilization, ed. L. Borghans and A. de Grip, 77–105. Cheltenham, UK: E. Elgar, 2000.

7 Christopher Winch, “Education and the Knowledge Economy: a Response to David & Foray.” Policy Futures in Education. 1.1 (2003).

8 David H. Autor, Frank Levy, and Richard J. Murnane. “The Skill Content of Recent Technological Change: an Empirical Exploration.” The Quarterly Journal of Economics. 118.4 (2003): 1279-1333.

9 For more information and to access the O*NET database, please visit: http://www.onetcenter.org/overview.html

10 Wes Schwalje, A Conceptual Model of National Skills Formation for Knowledge-based Economic Development. Working Paper, 2011. Available at: http://ssrn.com/abstract=1809205

11 2011 Talent Shortage Survey Results, Manpower Group, available at: http://us.manpower.com/us/en/multimedia/2011-Talent-Shortage-Survey.pdf. In January of 2011, 39,641 interviews were conducted via telephone in 39 countries: 10,337 with businesses in Americas countries,

11,167 in Asia Pacific and 18,137 in Europe, the Middle East and Africa (EMEA).

12 Anthony P. Carnevale, Anthony P, Nicole Smith, and Michelle Melton. Stem, Science, Technology, Engineering, Mathematics. Washington, DC: Georgetown University, Center on Education and the Workforce, 2011.

13 Carnevale, et al 201114 Bureau of Labor Statistics, Employment

Projections – 2010-2020, available at: http://www.bls.gov/news.release/pdf/ecopro.pdf

15 OECD Programme for International Student Assessment, available at: http://www.pisa.oecd.org/pages/0,2987,en_32252351_32235731_1_1_1_1_1,00.html

16 Carnevale et al 201117 See, generally, Nelson 201018 Organisation for Economic Co-operation and

Development, Education and Training Policy Qualifications Systems: Bridges to Lifelong Learning. Paris: Organisation for Economic Co-operation and Development, 2007.

19 Thomas L. Friedman and Michael Mandelbaum, That Used to Be Us: How America Fell Behind in the World It Invented and How We Can Come Back. New York: Farrar, Straus and Giroux, 2011.

preparing america’s 21st century workforce: the tech sector weighs in on educational gaps and...

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