Counties and communities across the Midwest face a common challenge, a shrinking workforce and in many cases, overall population loss. Economic vitality depends on growing, or at least sustaining the population necessary to create and fill jobs, support schools, and maintain decent housing and infrastructure. Success relies on an area’s ability to retain its current population and/or attract new people. Economic development in practice has long shifted away from a strictly business development role to include workforce and community development.

Workforce recruitment and retention issues are now common themes heard from BR&E visits, and economic developers nearly everywhere are doing their best to respond. This article shares some best practices we have come across in our exploration of the topic. Not all ideas will work in all places. Developers need to have a keen understanding of their area’s specific needs and assets, and a plan supported and implemented by local leaders and stakeholders, for the best chance at success.

Attracting and retaining young people

Recently released estimates from the U.S. Census show an interesting trend in Iowa. Of its 99 counties, 70 have losses in total population from 2010 to 2017, however, a nearly equal amount (71) counties have gained population in the 20 to 34 year age range over that same period. Tapping into what draws or keeps young people and families is a strategy for long term sustainability.

Programs for students

There are many great examples of youth programming that are designed to build connections between employers and youth, and engage youth in community activities. Building connections early is the key. Students need to see themselves as employees, business owners and community members so that whether they stay after high school or go off to attend college or experience life elsewhere, they remain invested in the area, and for those who leave, are more likely to return at some point. Economic developers can serve as a business liaison for schools who wish to build connection programs and serve as cheerleaders and business recruiters for existing programs.

• Many high schools have incorporated CTE programs, check out how Henrico County Public Schools in VA have upped the celebration factor with Letter of Intent Signing Day
• Inform student influencers (teachers!) by helping to organize an “Educators in the Workplace” program. Most Community Colleges in Iowa have some type of programming to tap into, such as the Educator Externships offered through Northwest Iowa Community College. Opportunity2 in Southeast Iowa has partnered with Indian Hills Community College and Des Moines Area Community College (DMACC) to promote an Educators in the Workplace program throughout the region. Midwest Partnership recently hosted a “Teaching for the Workforce Conference” with DMACC. Additional information and resources for Teacher Externships are also available through the Governor’s STEM Advisory Council.
• Go big – help your local employers organize and support a feeder program such as Rocket Manufacturing in Rock Valley or Cardinal Manufacturing in Strum, WI. Students come out of these programs with connections to local employers, and the business, technical and professional skills needed for local job opportunities.

Programs for young adults

Economic developers may play a larger role in attracting workforce for current job openings. Organizing or engaging a Young Professionals group is one way to make young workers “stickier” within the community. New workers may not come to your community alone. Programs that welcome new workers and their families can be successful in developing a connection for new people. Greater Dubuque Development Corp offers newcomer services as part of their Workforce Solutions programming. Other communities are taking a direct approach to attracting new people, offering cash for building a new home, student loan payoffs, and free land for those willing to move to their communities. Some communities are focusing in on programs that offer seed funds for entrepreneurs or creating programs that play “matchmaker” between young entrepreneurs and business owners readying for exit.

Attracting and retaining older people

The data for Iowa shows that between 2010 and 2017, all but two counties had a gain in population in the pre-retiree age group of 55 to 64; and 84 of Iowa’s 99 counties gained population in the over 65 age range. Helping upskill older workers or keeping them on the job later in life through more flexible work arrangements or job sharing are a few of the ways businesses are tackling a worker shortage. Retirees seeking a second career may be interested in adding to an area’s quality of life by opening a small lifestyle business. Communities that have the resources to support such scenarios may end up with a happier and more robust population and economy. Several of the same ideas used to attract and retain young people are valid for people of all ages.

What businesses can do

Economic developers may want to offer suggestions to businesses about creating a workplace that strengthens their employee value position. A recent white paper from Mercer does a nice job of articulating three layers for attracting and retaining workforce:

The contractual layer includes compensation and benefits and is the core of the employment situation. Companies must remain competitive in this layer to attract and retain employees. Economic developers can provide data to employers that helps them compare their compensation packages to other like industries in the region and state.

Employers that can add an experiential layer to their organization will differentiate themselves from others. Programs that help employees advance in their careers or job positions, or improve their health and well-being create a job experience that might not be found elsewhere. Economic developers can assess what might work for specific businesses and share examples that could range from paying for advanced or higher education, subsidizing childcare, to just a fresh look and ping-pong table in the employee break room!

The layer that sets organizations apart as a unique employer is the emotional layer. Companies that connect employees with a purpose – either in their job or to a larger societal cause – create more meaningful employment opportunities for people looking to align their work with their strengths and weaknesses. If employers cannot articulate a “purpose” that they or their employees find meaningful, economic developers can seek ways for the business to engage with the community or school that builds pride and ownership among the company and its workforce.

The final words

Keep in mind that all the programs in the world are really worth nothing if no one knows they exist. Market your programs wisely and in a focused manner.