Alternative Educational Pathways for Today’s Demands

Alternative Educational Pathways for Today’s Demands

Guest writer Mick Vaught talks education in today’s blog. In “Alternative Educational Pathways for Today’s Demands,” he writes about the different schools within education that would bring a broader array of skills into the American workforce.

One of my first jobs after college was working for a German construction equipment manufacturer. My primary objective was to start at the top, make a ton of money and retire early. It didn’t take long to discover that nearly a million other people had that same goal -meaning I had to start at the bottom and work many years climbing the corporate ladder. What became very evident through those years was the difference between European and American educational cultures. Regardless of my previous college education I began a six-month European apprenticeship method of working in all departments through the manufacturing process. I gained a complete understanding of how the company functioned from the beginning to the end of the manufacturing process. I also became aware that many of the German machinist, welders, fabricators, and plant managers did not have a college degree but rather an apprentice certificate. Most followed a designed apprenticeship career path from early high school. 

Over the years, it has also become clear that we as Americans have at times failed to understand the paradigm shift in our educational system that could better prepare students for a successful future. In previous years, a college education was a must for any young person trying to succeed in their career. If you had a college degree you were looked upon with more prestige, more opportunities for success, and more earning potential. Conversely, if you chose not to attend a college or university, you learned a trade (either by a technical or trade school or an apprentice program) and became a “mechanic, plumber, machine operator and the like. We are beginning to see more options available for those students who are not inclined to attend a college or university. We are beginning to see the paradigm shift where parents and students are becoming more aware of their return on investment while attending a college or university as opposed to enrolling in a trade or tech school. There are a number of important reasons why this is happening including costs and the increase in viable opportunities now available. Let’s take a look at some of those opportunities and the differences between them.

  1. Trade Schools
  2. Tech Schools
  3. Apprentice Programs

Trade Schools vs. Technical Schools:

Typically, trade schools cover a broader range of hands-on occupations while tech schools focus, more specifically, on the technology sector. Trade schools can (and often do) offer the same type of programs offered at tech schools but often offer additional types of programs in unrelated areas.

Trade Schools:

Trade schools are also known as vocational schools that prepare students for skilled jobs in a broader set of professions or trades such as healthcare (nursing, medical assistants, dental assistants, pharmacy assistants), construction and maintenance plumbing. electrical work, welding, carpentry, etc. Trade schools also emphasize practical, hands-on training over traditional lecture-based classroom learning. The goal is to ensure job-ready skills required for those fields of study. Trade school programs can usually be completed in two years or less. Trade school programs also offer excellent employment prospects for graduates.

Tech Schools:

Tech schools basically focus on careers in technology and related fast paced, ever-evolving technical jobs. Some prominent areas include IT technicians, computer science or software engineering. They also provide specialized knowledge in an emerging set of interrelated industries that have a stable employment outlook for the foreseeable future. Technology- focused careers tend to offer higher salaries. According to the Bureau of Labor Statistics, computer and IT occupations are projected to grow 11% by 2029.

Apprentice Programs:

While both apprenticeships and trade school programs provide training in skilled trades, an apprenticeship is distinct because it combines classroom instruction with paid on-the-job training under the supervision of a skilled professional. A trade school primarily focuses on classroom learning with hands-on practice in a dedicated training environment, often without direct employment while training; essentially, an apprenticeship is a “learn-while-you-earn” model within a real work setting, whereas a trade school is more focused on acquiring technical skills in a dedicated learning space. 

Key differences: 

Trade schools may offer more specialized training in a particular trade, while apprenticeships can provide a broader skill set depending on the employer’s needs.

Just a side note:

Since the passage of the 1944 GI Bill, college has been pushed over vocational education in a noticeably big way! This college-for-all narrative has been emphasized for decades as the pathway to success and stability. Parents might worry about the future of their children who choose a different path.

Why choose Trade/Tech/Apprentice Schools Over College: The Cost

One of the biggest downfalls of a college education is the amount of debt that students incur while attending college or university. According to recent Education Data, most college students build up an average debt of $36,406 whether they graduate or not. The difference in debt between students who attend college or trade school is shocking regardless of the field of study. The average cost of earning a degree from a trade school is $33,000 in contrast to earning a degree in college with an average cost of $132,000. Time investment is also a huge factor. In comparison with a four-year college degree, trade / tech schools usually finish within one or two years. Ultimately, students are able to enter the workforce right after school while bachelor’s and master’s degrees will invest at least 3-4 years of their life in an effort to graduate. 

Student Loan Debt Statistics:

College student loan debt in the United States now totals a whopping $1.753 trillion! The outstanding federal loan balance is $1.620 trillion and accounts for 91.2% of all student loan debt. 42.8 million borrowers have a federal student loan debt. Here’s the big one. The average student loan debt growth rate outpaces rising tuition costs by 166.9%. You can see where I’m going with this. Since the 1980’s the tuition cost for a four-year college degree has increased by 65% over the years.

Now let’s compare U.S. Trade/ Tech/ Apprentice Programs to our European counterparts:

In Europe, vocational training is often a core part of secondary education, with students choosing a vocational track early on. US trade/tech schools are often seen as a separate path from traditional high school or college. European trade schools emphasize apprenticeship programs, where students gain practical experience on the job alongside classroom learning. Conversely, US apprentice programs are less prevalent (usually private companies) and not as well structured. In Europe, vocational training is viewed as a prestigious and valuable career path, while in the US, college is often seen as a preferred route at times leading to a stigma around trade/tech schools. European trade schools tend to offer a broader range of vocational training with a focus on theoretical knowledge alongside practical skills, while American trade/tech schools might prioritize quick training for specific trades. 

The future of our American educational system is at a crossroads, where our actions moving forward over the next decade will be critical. Our economy and how we compete in a global market will depend on how well we interface our training needs with company and corporate demands. Our industry’s demand for skilled labor is at an all-time record high. How we respond to these challenges will be critical for the next generation.

Ever Wonder?

Ever Wonder?

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In this week’s installment on Lifelong Learning, guest writer Mick Vaught challenges readers to truly assess our paradigms and pre-conceived ideas in “Ever Wonder?”

Ever wonder why we tend to remain in our comfort zone and never see a paradigm shift coming around the curve? 

One of my all-time favorite role models growing up was Stephen Covey and his book titled “The 7 Habits of Highly Effective People”. In my opinion, this was his finest publication ever because it really changed my views on many things.  This book was a real game changer for me. Of the 7 habits he prescribed, habit number 5 “Seek first to understand, then to be understood”, was the most useful for me during my journey in the construction industry. I look back now at some of my biggest mistakes in dealing with what I thought was critical in problem solving, only to realize later that I did not understand the root cause of the various issues. 

A good example of what I’m talking about was my preconceived notion of how to correct the overwhelming problem of developing and retaining top notch service technicians. Like many well intended experts, I believed the best approach was to offer better wages and benefits than the competition with hopes that money would be the answer. What I didn’t understand was the critical needs of the service managers, technicians, and most importantly, customers. Over time, I gained a better understanding of the many issues and how to address these issues. Here are some of the initiatives I found to be most appropriate.  

Step 1:  Identify the scope of the current needs, and those in the next ten years.

  • Determine current utilization of techs based on OT and customer service response times.
  • Measure machine populations, aging of company rental fleet, trends of growth and new skills required. 
  • Determine and log the current CSA requirements and new product lines introduced or proposed for the future. 
  • Rank the current staff skill sets by determining specific strengths and weak areas and score each tech on an equal and consistent measure process. 
  • Chart the aging of current techs and estimate potential replacement cycles. 

Step 2:  Analyze the current mix of jobs, and skills required for the work. 

  • Determine % of Level 1 jobs currently being performed through work order analysis.  (Cleaning, Greasing, PM services.)
  • Determine % of Level 2 jobs requiring higher skill levels. (Inspections, Pre-deliveries, basic electrical and hydraulic repairs.)
  • Repeat same review of Level 3 jobs requiring troubleshooting, diagnostics, basic welding, major component R&I and exchange, equipment software usage and understanding. (Tech Tool, Matris, etc) This level will require factory and on-line training requirements for specific areas of knowledge. 
  • Finally, all Journeyman level jobs requiring unlimited skills to be able to perform all troubleshooting, diagnostics, major repairs, component rebuilds, welding, and complete knowledge of equipment software, fault code analysis, Tech. Tool, ,  etc. This level will require completion of all manufacturer online training modules, and attendance at numerous factory training programs. These techs should be targeted to customer jobs as a priority. 

Step 3: Rank the current service staff.

  • Create the same four tier tech classifications to match the service jobs and attempt to match the skills to the job.
    • Level 1 – Apprentice
    • Level 2 – Shop Technician *
    • Level 3 – Senior Technician *
    • Level 4 – Journeyman Technician, Shop / Field **

    *Requires supervisor sign off, and training requirements.

** Requires GM sign off and required training completion and testing. 

  • Pay levels are made consistent with Tech classifications, as an incentive to move up in classifications and knowledge. 

Step 4:  Recruitment

You now know the needs of what tech levels are required to meet the existing needs, as well as future requirements through business growth, changing technologies, retirements, and tech development and promotions. 

Recruiting Apprentices:

Today, tech school students are being drawn to the less “dirty” jobs upon graduation by trucking companies, HVAC companies, Major Rental companies, etc.  Recruitment has become very competitive and many companies start there in high school years by attending college job fairs. 

We need to be active in these recruitment sessions and offer significant incentives to draw the prospect to the construction industry.  The biggest obstacle facing a student after graduation from a tech school is the tuition debt they have incurred, and the expense of buying tools to start work. We will prepare incentives to address these two issues:

  • Tuition Reimbursement Program: 

The student would be reimbursed for his existing tuition debt over a period of employment as a technician with the company.  This four-year program would refund 25% of the student tuition expense every year, with 100% refunded after four years. It would be required that the student achieve a minimum of a Level 3 technician to qualify for 100% reimbursement. 

  • Tool allowance program:

The student would be given a basic tool set and toolbox to start his apprenticeship program. These tools would remain the property of the company until the employee has completed his Level 1 apprenticeship period and was elevated to Level 2, (Shop Tech). The tools would then become the property of the tech.  OR, an upfront $2500 tool bonus that would need to be paid back if the employee left in the first year. Further, a $1000 tool allowance will be given to the tech on an annual basis up to the Level 3 classification, and then receive the standard company tool allowance.  

Recruiting Senior and Journeyman Technicians:

The needs of these techs are different.  They are looking for job security, good pay, good benefits, a clean, safe workplace, nice field trucks, and more quality in the job.  To draw these potential techs to leave their current employment and join our team is more difficult, complicated, and costly. 

  • Address their concerns: 

Recruitment in regions where work opportunities are transitioning, can appeal to the job security concern. For example, the coal fields of KY and WV offer little job security at this time, and in the future. These techs are looking for what they are going to do going forward.  You can offer job security with the vibrant growing markets. You need to heavily advertise in all transitioning areas. 

  • Provide a safe, clean and modern workplace.  It is important that the facilities and shops be kept clean and updated, along with providing the tools necessary to do their jobs. Service trucks are very important to field technicians that view these vehicles as their homes on wheels. This is a very big consideration for a field tech to join your team from another company. 
  • Provide excellent training opportunities.  No tech wants to get to a job and not know what to do. Offering year-round training sessions online and at the manufacturer is a big draw for those who do not have it now. You need to market and sell that. 
  • Have specific guidelines in place to include relocation expenses, temporary housing, storage, and relocation assistance services, as required. 
  • Offer all techs an annual tool allowance, boot allowance, and specialized skills training, such as welding, MSHA certifications, etc. 

Overview:

The company will need to have a structured, consistent approach to the recruit process that will provide for the needed demand in the years to come, and fill the vacancies created by tech aging and retirement.

Balancing the tech skill levels to the work difficulty levels is difficult, but provides the best profitability to the service department, and the best customer support to the end users. 

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Training Is a Waste of Time and Money!

Training Is a Waste of Time and Money!

In this week’s issue of “Lifelong Learners,” guest writer Mick Vaught takes a strong approach to employee development with his blog post entitled “Training Is a Waste of Time and Money!”

That is, unless it is applied correctly within the scope of the company’s core values. I said this before and I’ll say it again…. training should be used as one of the last disciplines in developing a competitive organization. Herb Kellerher, founder of Southwest Airlines, built his success by hiring “Attitude” first, followed by putting the right people in the right position, and lastly, training the heck out of them.

Here’s an example of how most employers misuse training in their dealer organization. 

“A very successful dealer organization has seen a continuous decline in revenue over the past year. What’s the first thing upper management does? Bring in corporate sales product specialists to launch a “sales” (Selling Process) training event.” 

  • Opportunity number one: There is a huge disconnect between most manufacturers and their dealer organizations. When I was a product specialist with some of the top equipment manufactures in the U.S., all too often I would get a call from a frantic dealer sales manager requesting “Sales” training for his/her team. In reality, our understanding of “Sales” training and “Product” training did not align with each other. Yes, product knowledge was certainly vital and understanding the “Selling” process was equally important. However, I quickly realized the gap between an understanding of what the dealer wanted and what I delivered was not the same. As a corporate product specialist, I was not equipped with the knowledge nor expertise of the retail selling process. 
  • Opportunity number two: (and this is a big one) The root cause in the decline of revenue is typically misdiagnosed in the first place. Typically, the first area most dealers focus their attention towards is sales, when in reality the deficiency is caused by a communication/collaboration issue between both the dealer sales and product support teams. While sales are a critical component of the revenue stream, the backbone of just about any organization is their Service Department.  Sales can sell that first machine to a new client, but from that moment on, future sales will depend on how well the customer will receive superior service! Some of the most effective training I have done was when we coordinated an overlapping session with both sales and service, bridging that communication and collaboration gap.

That brings me to the next point that must be addressed. Training is a waste of time if top management does not offer buy in. Checking off an item on the “To-Do” list just doesn’t cut it. If management thinks behavioral change can be accomplished in a one- or two-day session, they are totally not in touch with reality. A comprehensive perpetual training plan (to include follow-up, measuring, accountability and targeting the various levels of learning) must be executed if that organization will be successful. 

Today more than ever, I see a tremendous deficiency in young people going out into our work force. Most problematic is their ability to communicate, collaborate, and the ability to solve real problems. One of the biggest reasons for this deficiency is our national public-school systems. Educators have morphed into paperwork administrators, dealing with a lack of student discipline, myopic support from administrators, and a lack of involvement with parent’s participation. This now leads us to take a totally new perspective on how we assimilate new hires. 

  • Opportunity number three: Initiate a new philosophy on how and when to apply effective training.  I think Jim Collins hit the mark with his book titled “Good to Great”. Mr. Collins examined a number of good companies over a period of time and compared them to those companies that became not only good, but great!                                                                                                                                                                                                                                                                                  And what he found out was (important stuff here) the great companies:
  • hired the right people (they fit the company culture) 
  • put them in the right position (set them up for success)
  • training the heck out of them. 

Notice, training was the last initiative in the process!

In conclusion, those organizations who hire the right people in the very beginning, place them in the right position and are willing to invest the time and capital in offering effective and continuing training platforms will ultimately achieve greatness!

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