Workplace Literacy (Workforce)

Boosting employee literacy isn’t just good social engineering – it’s an economic necessity.

As long as he kept a low profile and didn’t draw any attention to himself, Gilberto Hernandez figured he could coast through life with limited reading and writing skills.

Hernandez dropped out of school in the ninth grade, entering the workforce because he needed money to pay for food, clothing and shelter. Prior to landing a job as a groundskeeper for the Phoenix Parks, Recreation and Library Department in 1997, Hernandez toiled as a janitor for the Phoenix Elementary School District. It was a good job that paid well.

Still, he was nagged by the notion he could do better, maybe one day even go to college. So last year, when the City of Phoenix offered Hernandez the chance to attend six hours of classes per week to improve his reading, writing and math skills, and work toward his General Equivalency Diploma, the 31-year-old groundskeeper returned to school for the first time in almost 20 years.

The Phoenix Literacy Program began in 1988 after a citywide search revealed that many employees lacked the basic skills to be considered “promotable.” The program has since served more than 1,000 city employees from seven different departments. “They come out with enhanced skills and increased self-esteem,” says June Liggins, Phoenix personnel curriculum and training coordinator. “The program has not only made for more productive city employees, but has met our demands for a future workforce.”

“Ever since I started taking classes,” says Hernandez, “I’ve had a whole new outlook on life.”

Even Hernandez’ front-line supervisor, John Melisko, reports that “not only have his communications skills improved, but he seems more confident in himself. He always has been a good employee; now he’s a better one.”

As much as 20 percent of the American workforce may be functionally illiterate. In everyday work life, this deficiency translates into secretaries who can’t write letters free of grammatical errors, workers who can’t read instructions that govern the operation of new machinery, and bookkeepers who can’t manipulate the fractions necessary to compute simple business transactions.

The Washington, D.C.-based National Alliance of Business (NAB) and the National Institute for Literacy estimate employees’ lack of basic skills results in a $60 billion loss in productivity for American companies each year. Why? Because workers who can’t understand warning signs or shipping instructions cause mistakes, workplace accidents and damage to equipment.

According to a 1994 survey by the Bureau of Labor Statistics, only 2.2 percent of U.S. employees provided basic skills training. And the skills shortage will only get worse, thanks in part to the integration of information technology into the U.S. workplace. Gone are the relatively simple single-product assembly lines of yesteryear; in today’s high-tech workplace, one assembly line may produce a dozen items, each with its own complicated set of directions.

As American companies retool to meet the demands of a new global economy, workers must continually upgrade their knowledge and skills to qualify as “promotable.” It’s little wonder that U.S. presidents and pundits alike continue to hammer home the need to improve employee education, efficiency and well-being. There used to be a time when people who were functionally illiterate could find jobs. No longer. Modern economics demand a well-educated labor pool, and skills have become the key competitive weapon.

Employees’ skills are employers’ competitive edge
The American Association for Career Education in Hermosa Beach, California, defines literacy as an individual’s ability to read, write and speak English, compute and solve basic math problems, and develop one’s knowledge and potential through listening skills. Of course, it’s undeniable that all of these skills should be taught in high school, but in many areas of the country, the nation’s educational system can’t be relied upon to produce literate graduates.

If you believe the research that some 20 percent of the U.S. adult workforce can’t read the OSHA instructions posted on a wall, and the dearth of basic worker skills has a direct impact on company productivity, then how can you afford to ignore the problem? Yet most companies will spend money to implement, say, a new statistical process-control program, only to discover their workers don’t have the ability to synthesize the information.

As technology becomes even more footloose, employees’ skills become the employer’s competitive edge.

Myron Kanning, vice president of human resources for Batesville Casket Co., in Batesville, Indiana, discovered several years ago that workers at his company’s manufacturing plants didn’t possess the skills necessary to conduct on-the-line quality analyses of burial caskets prior to the final control inspection station. “We tried to get our employees to assume more responsibility, which would have led to improved productivity, but they didn’t have the confidence to handle even routine decisions,” recalls Kanning. “In order to move forward in a rapidly changing market, you have to make sure employees at lower levels can assume greater responsibility. But you can’t empower someone who can’t read and write.”

According to a 1998 survey by the Manufacturing Institute’s Center for Workforce Success in Washington, D.C., one third of manufacturers report that job applicants have inadequate reading and writing skills, and nearly one fourth report that job applicants have inadequate oral and communication skills. It’s estimated that deficient employee skills have prevented one in five manufacturers from expanding.
“We’ve got a lot smarter machines, but few smart workers,” says Phyllis Eisen, executive director for the Center for Workforce Success. “As an industry, we’re dancing as fast as we can to catch up. Manufacturers are spending billions of dollars every year on education and training just to make up for what other institutions have failed to do in the past. Right now, there’s a huge lag in productivity on factory floors across the country because workers can’t learn the new technology.”

There’s definitely not a lack of funds available for adult literacy programs. Both the federal and state governments provide millions of dollars each year for adult-education and family-literacy programs; private sources expend additional millions. But the problem persists. And, more to the original point, as changes in the nature of work require accelerated skills and training, the line between workers and supervisors and managers blur as “work teams” help raise creativity and productivity. Increasingly, those companies most dedicated to training their employees to do it better, faster and cheaper will get the jobs.

Enhanced employee skills mean better business
Most everyone agrees illiteracy exist as a serious problem in society. Attitudes associated with workplace literacy problems, however, vary widely. Some CEOs and human resources managers believe a lack of basic skills in the workforce isn’t their responsibility – that it’s up to employees to learn on their own to better read and write. Others realize they’ve got to stop blaming the falling standards on someone else, and to stay competitive, workplace illiteracy must be treated like any other business crisis.

According to one survey canvassing more than 300 executives, 71 percent reported that basic written communication was critical to meeting the challenging needs in the workplace, yet only 26 percent offered any kind of training. And while 47 percent of the executives recognized the need for workers to improve basic math skills, only 5 percent proffered any kind of basic math skills training.

So what’s going on here?

Well, to begin with, HR managers know there are never any easy answers in solving a workforce problem – especially one as sensitive as adult illiteracy. At Batesville Casket Co., for example, a literacy program instituted several years ago failed to garner the support of its own employees. “They were too self-conscious to even come forward and participate,” says Kanning.

This is not at all atypical. It’s estimated that 10 percent of the millions of Americans who can’t read or write never participate in literacy programs simply because they don’t want to admit, particularly to an employer, that they can’t read or write.

“Research indicates the illiteracy stigma is comparable to that experienced by victims of sexual abuse,” says Jack Fenimore, president of Newburgh, Indiana-based Literacy Now, a nonprofit distributor of educational material. “A high percentage of people won’t even admit to their own family members that they can’t read and write.”

Raising adult literacy standards
Although most HR managers realize, however loosely, the link between productivity and the basic skill level of employees, many still ignore the importance of workplace training in improving competitiveness. “Human resources managers need to ask themselves, “What improvements haven’t we been able to do because of the low skill level of our workforce?'” says Steve Mitchell, senior director in workforce development for the National Alliance of Business.

So what can you do about it?

Too often, corporations spend money on employee training for managers, supervisors and salespeople, but ignore those at lower levels of the workforce. Time and resources need to be committed to solid training programs that will combat adult illiteracy. Between 1986 and 1994, for example, Schaumberg, Illinois-based Motorola, Inc. spent $40 million to train 8,000 of its production workers in basic skills.

Around this same time, the company also started assessing job applicants who were interested in working for its factories. “We need people with the skills and competencies to learn and apply new knowledge,” says Don Moretti, director of human resources selection and assessment for Motorola. A program was developed based on extensive job analysis. “We defined those requirements that would lead to success, then developed a test to measure those identifying components.”

The results? “People who scored high on the tests also possessed high performance skills,” says Moretti. “And people who scored low on the tests possessed low performance skills.”

The three-hour assessment test consists of multiple choice questions in four different areas: practical arithmetic, reading and comprehension, forms completion and visual tracing. There’s also a video-based assessment tool. Moretti admits there’s a certain investment that’s needed by any company looking to develop an assessment tool, “but we have a dollar value that can show our return, over using just a non-skid selection process.”

The company finally discontinued its basic skills training in 1994, “mostly because our existing workforce has already been trained,” says Jim Frasier, manager of learning research and evaluation for Motorola University. “We also know that our incoming workforce has the required skills because they’ve passed our assessment test.” These days, Motorola revalidates literacy and other workplace skills, but focuses mostly on how employees can improve their critical thinking skills.

Maintaining employees’ skills is crucial
Helene F. Uhlfelder, Ph.D., is director with the Atlanta office of AnswerThink, a management consulting firm. She says that right now, there’s a gap in the kinds of skills and knowledge Corporate America has and the kinds of skills and knowledge Corporate America will need in the future. “Which means you have two choices: You either screen applicants differently, or you train the ones in your existing workforce. It all comes down to priorities.”

And your priorities should meet not only the needs of your employees and customers, but also the needs of your company. The City of Phoenix came to the conclusion that programs had to be confidential, voluntary and customized. Other Phoenix features include attending classes on city time, courses matched to meet individual needs, and programs instituted at no cost to city departments. On the other hand, Batesville Casket Co. offers self-pacing and self-study. Managers should settle on whatever works best for each particular company.

“If we don’t invest in our employees today, we won’t maintain our industrial status in the world,” warns Eisen of the Center for Workforce Success.
Competitiveness in the 21st century will turn on the quality of the country’s workforce, not just on its technology and management know-how. By creating an environment in which employees feel comfortable enough to improve their skills, employers not only engender loyalty, but increase productivity. Boosting employee literacy isn’t just good social engineering, but an economic necessity.

Sidebar: Basic Skills Training 101
A successful workplace literacy program requires a lot more than just stuffing paycheck envelopes with brochures.

Unless you’re one of those rare human resources virtuosos who has a natural talent for teaching, it won’t be easy designing and implementing w workplace literacy program – especially one that will help employees improve the skills needed to retain their jobs, advance their careers and increase company productivity.

A successful workplace literacy program requires a lot more than just stuffing paycheck envelopes with Project Read® brochures. Most HR managers, all too aware of their limited expertise in this area, choose alliances with local educational institutions, community colleges or even private firms skilled in developing, customizing and delivering basic workplace skills programs. It’s just easier than trying to build something from scratch.

Be sensitive in your approach to skills assessment.
Developing a more highly skilled workforce first requires a job analysis and skills assessment to help you identify and close the gaps in reading, math, communications skills and other areas. The City of Phoenix, for example, conducted a survey over a decade ago that revealed many employees lacked the basic skills to be considered “promotable.” As a result, the Public Works and Personnel Department partnered with local community colleges and Literacy Volunteers of Maricopa County to develop a curriculum for city employees. “It’s just more feasible to work with outside consultants who already have the assessment and training tools,” says June Liggins, Phoenix personnel curriculum and training coordinator.

However, assessing employees can often lead to stress. Sometimes people think they’re at a higher reading or math level than they really are. Most managers agree the curriculum should be tied as closely as possible to workers’ skills and what workers actually do.
You should also encourage employees to transfer their newly acquired skills back to the workforce to improve, say, cycle times or marketing, or to increase employee bonuses. Above all else, consider that maybe you’re better off relying on professional instructors than the do-it-yourself approach.

Employee reluctance must be overcome.
Perhaps the toughest hurdle to overcome is getting people to volunteer for a literacy program. “Employees are just too self-conscious,” says Jack Fenimore, president of the Newburgh, Indiana-based Literacy Now, a nonprofit distributor of educational materials. “They don’t want to admit they can’t read, particularly to their employers.”

Years ago at Schaumberg, Illinois-based Motorola – when company officials first introduced a workplace literacy program – employees were given the opportunity to volunteer if they felt they needed to improve their reading, writing and math skills. Less than half stepped forward. “But once employees went back into the workforce and started sharing their experiences, the participation rate jumped another 20 to 30 percent,” says Jim Frasier, manager of learning research and evaluation for Motorola University.
Companies that really want to encourage employees to get involved in their own education need to convey straight from the CEO’s office that it’s a business issue that’s driving the need for skills improvements. Once that’s established, managers should consider a range of programs that are both innovative and expansive, not only for your existing workforce, but for alternative labor people as well.

There are ways to keep the training costs low
Although the Washington, D.C.-based Manufacturing Institute’s Center with Workforce Success recommends employers invest at least 3 percent of total payroll to educate and train employees, workplace literary programs don’t have to be expensive. For many small and mid-size companies, there’s little expense beyond the time involved in planning the program and releasing employees from work to participate in classes. For example, the cost of the Phoenix Literacy Program has averaged about $2.25 per employee-contact hour, according to city officials.

There are many ways to keep the costs of your basic skills programs low, according to Washington, D.C.-based National Alliance of Business (NAB). Some states offer tax credits, some unions share expenses, and federal and many state governments offer grants.
It’s not even necessary to conduct classes only at corporate headquarters. Collaboration is actually a good thing for effective training and education, and, in truth, no single company, educational institution or government agency can tackle the challenge alone. “Companies need to sit down with educational institutions and others, and decide what specific skills are needed in the workforce,” says Helene F. Uhlfelder, Ph.D., director with the Atlanta office of Answer Think Consulting Group, a management consulting firm.

HR managers need to consider these key points
Workplace literacy training must meet not only your company needs, but also the needs of your employees – otherwise, they many not participate. According to NAB, there are a number of key points you should consider when developing a workplace literacy training program.

To get training off the ground, you need support
Diane Bronson Young is CEO and human resources director of Ridgeville, Ontario-based J.F. Young International, Inc., an educational training and consulting firm. She has more than 15 years of experience in literacy training, and works primarily with companies interested in setting up educational upgrading programs for their employees.

“The two most important elements when establishing a company literacy program are support from management and confidentiality,” she says. “If you don’t have support from management, the program will end up a failure.” Management must believe a literacy program is important for employees and the company. And guaranteeing confidentiality helps encourage employees to get involved.”

According to NAB, basic skills programs have increased productivity, reduced errors and improved sales and on-time delivery at various companies around the country. Of course, the key to solving the lack of basic skills in the workforce is what happens after class adjourns. Training in not a one-shot deal. It took Motorola eight years to complete basic skills training for 8,000 of its production workers. The City of Phoenix continues to educate its employees. And if you believe the research that as much as 20 percent of the American workforce may still be functionally illiterate, then you’ve got to believe implementing a workplace literacy program is a must – no matter how long it take.