Employees take new attitudes toward work

The Great Recession has fundamentally altered the way workers view the employment relationship and left them yearning for stability over mobility, according to a new study by consulting firm Towers Watson.

Specifically, U.S. employees have dramatically lowered their career and retirement expectations for the foreseeable future. On-the-job advancement now takes a back seat to a growing desire for workplace security and stability -- at the very point in time when traditional employment safety nets are eroding.

"For many employers, the recession has put the final nail in the coffin of the traditional 'deal' that once existed between employees and employers," says Max Caldwell, a leader of the Towers Watson Talent & Rewards division. "Not only have people seen many coworkers, friends and family members laid off, but they know they are increasingly on their own for everything from health care, to managing their career, to planning for a secure retirement. This represents a profound shift for employers and employees alike."

The results also confirm how far the nation has moved from the "free agent" concept hyped as a new approach to work just a decade ago. In the Towers survey, eight out of 10 respondents said they want to settle into a job, with roughly half saying they want to work for a single company their entire career and the rest wanting to work for no more than two to three companies. This move toward workplace "nesting" appears influenced by a perceived dearth of job opportunities, coupled with employees' lower appetite for the risks inherent in changing jobs.

MI Perspective: While the cause and circumstances are painful, the shift is not necessarily a bad labor market trend for Michigan. The job-hopping, "free agent" mentality has been a particular characteristic of Gen X and Gen Y workers ascending in the workplace. If these employees are now more inclined to choose from a growing number of exciting opportunities in cutting-edge business sectors -- and stay put for awhile -- it could lend the state a measure of workforce stability needed for those businesses to take root and thrive.

Employment forecast: it's all relative

West Michigan job growth for the remainder of 2010 into 2011 isn't likely to send the region's economic hopes soaring, but 2009 proved things can always be worse.

New analysis from economists at the W.E. Upjohn Institute (http://www.upjohninst.org/) projects regional gross domestic product will rise 2.4% in 2010 and then 3.1% in 2011.

"It's a forecast that, like most, generates only modest employment growth during 2010," according to the March issue of the Institute's Business Outlook. Specifically, employment for the region's six metropolitan areas (Battle Creek, Grand Rapids, Holland-Grand Haven, Kalamazoo, Muskegon and Niles-Benton Harbor) is predicted to be down 1.5% from 2009, then up slightly, .2%, in 2011.

Employment in the region's struggling goods-producing sector is expected to drop 3.4%. Auto suppliers continue to cut workers in line with lower production volumes, and the region's office furniture industry is also expected to have a slow year. New manufacturing orders are likely to be filled by increases in productivity and overtime hours, and the use of temp workers.

Economists expect employment in the region's service providing sector to drop 1.2% in 2010.

"Growth is expected in health care fields and professional and business services, which will help buffer expected losses in both the trade/leisure and hospitality sectors," according to the Outlook.

One answer is blowin' in the wind

A multi-billion dollar development project could help harvest the natural wind resource on Lake Michigan to produce clean renewable energy -- and thousands of new jobs.

That's the vision from Scandia Wind Offshore (http://www.scandiawind.com/), a clean-energy development company that outlined an expanded wind farm proposal for West Michigan in a series of meetings last week.

With an investment estimated at $4 billion, the projects could add 3,000 permanent industrial jobs to the region. While construction could be five or more years away -- and wind turbine operations might not begin for nearly 10 years -- there could be strong economic advantages to being first to develop a business hub that facilitates growth. That is, a business cluster might build out a supply chain of parts and services to support find farm developments in a way not unlike the businesses that sprouted to support the auto industry in years past.

"We believe in the 'first mover' advantage, but it is not going to happen by itself," according to Scandia project manager Harald Dirdal as quoted in meeting coverage by the Muskegon Chronicle. "There is a window of opportunity for us to attract a wind turbine manufacturer to build a plant here. The race is on."

The new vision would build on designs for the Aegir 500-megawatt wind farm four miles offshore from Pentwater. Aegir II would be a similarly sized farm six miles from the shore of Grand Haven, and Aegir III would put a smaller farm at the Muskegon County Wastewater Management System, accoring to the Chronicle. In a sum of 50 square miles there would be 50 to 100 wind turbines ranging from 300 to 450 feet in height -- a consideration community planners will weigh heavily when examining potential effects on tourism and overall aesthetics.

Experts say the West Michigan coast is exceptionally well positioned to harvest strong prevailing South/Southwest winds normally registered only in states such as North Dakota and Texas. The region's proximity to major energy consumption centers in Chicago and Detroit also make the transfer of energy efficient an economical. As such the area could become a major industrial hub for harnessed wind energy in decades ahead.

Book shelf: Easing the shock of job loss

A new book on the self-help scene offers some practical advice on how workers can cope with job loss, and steps they can take toward re-employment.

"Blindsided: Surviving Career Meltdown," may be a resource of note to Michigan workers in transition, their friends, families and organizations that seek to support them. It offers methods designed to minimize destructive and non-productive behavior of unemployment and provides constructive exercises for those who have lost their jobs.

Author Roger E. Hawkins, Ph.D., an industrial organizational psychologist with more than 30 years of experience in the field, compares the aftermath of termination to the physical pain of those needing emergency medical treatment. He says employees who confront sudden job loss must face consequences more damaging than just the loss of income. His workbook, he explains, "provides processes to help people deal with the psychological trauma of sudden unemployment, while guiding them through the steps of an intense career search in today's terrible economy."

The book's six parts include sections on self-assessment, resume preparation, identifying career objectives, how and where to search for jobs, interviewing and record keeping. It is available from Amazon.com as well as retail locations.

Muskegon health plan draws interest

A Muskegon County effort to increase health care coverage for the uninsured was highlighted in a March 16 article in USA Today.

The article focused on community-based efforts to boost coverage at a time most attention is focused on Washington, where an historic vote on trillion-dollar federal legislation is expected this weekend. The USA Today article cited Muskegon as an example of a "three-share" approach in which a worker's monthly insurance premium is split equally between the employer, the employee and the community.

Muskegon County's version of the three-share, called Access Health, started in 1999 and now has 1,100 participants in the community of 175,000 people. It grew out of a grant from the W.K. Kellogg Foundation and receives it community contributions from Mercy Health Partners. Despite early successes, however, enrollment has reportedly stayed flat during the past two years as both the number of uninsured, and unemployed, have spiked.

The stakes are becoming increasingly high: Despite a highly rated health care delivery system, Muskegon ranked 80th out of 82 Michigan counties in unhealthy behaviors such as tobacco and alcohol use as well as poor diet and lack of exercise. That analysis was recently released by the Robert Wood Johnson Foundation and the University of Wisconsin's Population Health Institute. Moreover, the Muskegon County Health Project estimates that 23.5% of county residents aged 18 to 64 lack health insurance -- about 25,000 people.

Undaunted, county officials appear intent on continuing their efforts to grow the program.

"This is no silver bullet, but the impact we have on people's lives cannot be overstated," Jeff Fortenbacher, executive director of Access Health, is quoted as telling USA Today.

Granholm searches for Google

Governor Granholm last week met with Google executives in California to promote Michigan as a location for testing Google fiber, the company's new ultra-high speed fiber optic broadband network. She also met with venture capitalists and high-tech company representatives in Menlo Park, Calif., to persuade them to bring investment and business to Michigan.

Google has asked communities across the nation to submit proposals by March 26 for consideration as a Google fiber network trial location. It is expected to deliver Internet speeds more than 100 times faster than typical current access. The fiber-to-home connections of more than one gigabit per second will be offered at a competitive price to a community of at least 50,000 and up to 500,000 people.

"Google fiber is a perfect fit here, as no state can match the exploding new technology investment in Michigan in recent years," Granholm said. "Google fiber would spark economic acitivity and job creation as Michigan entrepreneurs and businesses stand to gain enormous economic advantages through this extraordinary innovation."

Granholm is encouraging communities to submit applications for the trial network, and several are already at work. They include Ann Arbor, Grand Rapids and Lansing/East Lansing. Those applications are supported by citizens through social media sites including Facebook and Twitter.

In July 2006 Google announced it would open a sales and operations center for Goodle's AdWords online advertising program. Hiring is ongoing at the Ann Arbor location projected to employ 250 persons. At the time, Google co-founder and Michigan native Larry Page commented, "We hope to establish as wonderful a home in Michigan for Google as I enjoyed while growing up.

More information on the Google fiber network is available at http://www.google.com/appserve/fiberrfi/. Citizens and municipal officials can visit the site to express support for Google fiber in their communities.

Recovery effort enlists student ideas

Inspiration for the next generation of mainstay employers may well come from the next generation of Michigan workers, or so hope organizers of the "Motivate Michigan" online competition.

The objective is to initiate creative ideas from incoming freshman or students enrolled in state colleges or universities to improve Michigan's economy. Through a just-ended submission process, teams and individuals submitted their ideas for business development. Students were prompted to complete their online submissions with a format that addresses challenges and potential solutions. For example: Problem statement -- Michigan is a beautiful place to live and visit, but people aren't coming anymore to see all the state has to offer. Proposed solution: create a "frequent visitors program" that awards credit points based on how much time and money visitors spend in the state. Expected outcome -- increased tourism revenue.

The ideas will be judged on creativity, originality, practicality and the potential economic impact on the state of Michigan. General public voting on the ideas will take place April 12-30. The winning idea will be developed into a project plan and presented to an appropriate owner for funding and support. Prizes are expected to be a $40,000 scholarship for first place, $25,000 for second and $15,000 for third. Sponsors of the competition include Comerica Bank, Michigan Economic Development Corp. and Meijer.

MI perspective: Whether or not the competition yields brilliant solutions for Michigan's future business base, the process involving students in the collective thought process and tapping their creativity can only help enhance their self-image and buy-in as rising stakeholders in the state economy.

The Big Picture

Michigan ranks third for corporate expansion

Site Selection magazine this month ranked Michigan the #3 state in the nation for new corporate facilities and expansions in 2009.

The global business publication verified 371 projects that met capital investment, job-creation or size standards, up from 296 is 2008, in its annual Governor's Cup ranking (http://www.siteselection.com/). It was the second consecutive year that Michigan has ranked in the top three positions. This year, Michigan was 10 projects behind first place Ohio -- which won for the fourth consecutive time -- and three in back of second-place Texas. Pennsylvania finished fourth, with 333 projects. Great Lake states were also well represented in states rounding out the top 10: Tennessee, New York, North Carolina, Illinois, Virginia and Indiana.

Major new corporate projects for Michigan in 2009 included: advanced energy storage and solar firms such as Xtreme Power and Clairvoyant Energy on the site of the former Ford Wixom assembly plant; advanced-battery development and manufacturing firms A123 Systems (Ann Arbor), Johnson Controls-Saft Advanced Power Solutions (Holland), Dow Kokam (Midland); and major expansions by General Motors and Ford for electric and hybrid vehicle production.

Site Selection also recognized Detroit-Warren-Livonia as the nation's No. 4 metro area with a population of one million or more for new and expanded corporate facilities. Among metro areas with population between 200,000 and one million, Grand Rapids-Wyoming tied for third; Holland-Grand Haven was fifth, and; Ann Arbor and Lansing-East Lansing tied for sixth.

Comments Governor Granholm: "We just witnessed a thrilling global competition where many times the difference between winning a gold or bronze medal was a mere fraction of a second. The same holds true for Michigan in this important 50-state contest. We take pride in winning the bronze, but won't rest until we win the gold. We will continue to push or go anywhere, do anything, to accomplish that goal."

The strong showing seen in a publication read by corporate real estate and site selection professionals puts Michigan in a "strong and enviable position in the face of economic distress," says Michigan Economic Development Corporation President and CEO Greg Main. "These rankings reinforce that Michigan is a top-tier location for growing companies because of our aggressive initiatives, strong business climate and hard-working and talented workforce."

Unemployment looking up from bottom

New numbers released this morning by the U.S. Labor Department show Michigan still has the highest unemployment rate among states, but also show signs of an upward bounce.

The Bureau of Labor Statistics data put state unemployment at 14.3% for January 2010, up from 11% a year earlier. However, the rate was down from the 14.5% level posted in December 2009, and Michigan was one of 31 states that reported employment gains on a month-to-month basis. From December to January, Michigan added approximately 6,000 persons to nonfarm payrolls, to a total of more than 3.85 million. Manufacturing, construction and trade transportation and utilities were all among the sectors contributing to the monthly increase.

States recording the highest month-to-month increases were California (+32,000), followed by Illinois (+26,000) and New York (+25,000). States recording the highest losses were Missouri and Ohio (-12,000 each), followed by Kentucky (-11,800), New Jersey (-9,100) and Florida (6,100).

Over the year, jobless rates increased in all 50 states. The national unemployment rate fell from 10.0% in December to 9.7% in January, but was up from 7.7% a year earlier.

Services aim to plug brain drain

Community-based matchmaking services are working to help Michigan retain the best and brightest students emerging from its colleges and universities.

The "brain drain" affecting Michigan, as well as many other states, was quantified in a survey of public-university graduates conducted by S.E. Michigan WIRED (Workforce Innovations in Regional Economic Development) and the Michigan Municipal League. It found that 46% of 2007 graduates had left the state by Spring 2008. It also showed that 56% cited the inability to find a job as a significant reason for leaving. Though more recent data is lacking, the drain has almost certainly worsened along with state economic conditions in the past two years.

Still, the research also underscores a substantial opportunity to retain students through services that qualify and help connect them with potential employers.

One such organization moving into the void is Intern Michigan (http://internmichigan.com/), supported by groups such as the Detroit Regional Chamber, Traverse City Area Chamber and the Presidents Council, State Universities of Michigan. Focusing on entry-level opportunities, Intern Michigan creates an exchange on which employers can post internship opportunities that can be shopped by college students and soon-to-be graduates. It seeks to match a student's hard skills with other intangibles that align with an employer's values, guidelines and branding.

Other services attempt to delve even deeper into the softer side of a potential intern's profile. For example, the recently launched Hearts and Smarts (http://heartsandsmarts.com/) queries job seekers on personality traits an employer might find important. Approximately 50 questions in the profile probe areas such as, What makes you most comfortable in a work environment?

Together, such organizations and services improve Michigan's prospects for retaining the eager young minds it helps educate. Once they have foot in the door, studies show qualified interns have a solid chance of converting to permanent employment: According to the National Assoication of Colleges and Employers, the share of interns converted to full-time employment rose from 35.6% in 2001 to 50.5% in 2008.

Benefit excise tax could pose problems

Ever since it became known that Chrysler was spending more on health care benefits than the steel in its cars, efforts to reform the system have periodically crystallized in Washington.

Few have come closer to being enacted than the plan currently backed by President Obama, a modified version of changed approved by the Senate last December. At this writing, it appeared quite possible the Democratic majority in Congress might win approval for the plan through the side-door process of legislative reconciliation sometime in April.

While much of the debate this year has centered on lightening-rod issues such as funding for abortion and the degree of government control over an industry the size of health care, other provisions of the bill carry even more direct implications for Michigan workers and the employers who provide benefits.

Among the most potentially troubling is a 40% excise tax on expenditures for employer-sponsored health benefits above a set threshold, starting in 2018. The limits are set at $10,200 for individual coverage and $27,500 for family coverage. These thresholds easily exceed the national average premium costs of $5,000 for singles and $13,200 for a family. However, total plan expenditures would be defined to include employer contributions for vision, dental and other ancillary benefits, as well as funding for flexible spending accounts and health savings accounts.

If an excise tax is approved, it could force employers to choose between passing the cost along to employees, or cutting benefits. Estimates of how many employer-sponsored plans would be subject to the tax vary from 13% to 18% currently. However, at current rates of inflation it is estimated that one-third to one-half of all plans would face an excise tax unless rates are further adjusted by 2018.

Ironically, the excise tax was first presented as a means of controlling expenditures on so-called "Cadillac" health plans for the rich. Now, however, it appears it could hit the people who built the Cadillacs -- autoworkers enjoying collectively bargained benefit plans -- as well as many middle income workers in Michigan and across the nation.

Employers staunch job-loss bleeding

Mounting data suggest job losses in Michigan have hit a substantial slowdown in the past year.

Among the new numbers, analysts at global outplacement consultancy Challenger, Gray & Christmas say Michigan cut 2,024 jobs last month. That still places Michigan among the top five job-loss states, but shows a dramatic improvement from the 50.212 jobs Michigan shed in February 2009.

TOP 5 JOB-CUT STATES

February 2009/February 2010
New Jersey 17,613/502
California 8,779/12,943
Kentucky 2,500/1,800
Illinois 2,142/3,665
Michigan 2,042/50,212


Part of the improvement can be pegged to the auto industry. By this time last year the industry had already announced 70,058 job cuts nationwide. As of last month, these firms planned just 7,334 cuts -- a 90% drop. While Michigan's long-term growth depends on industry diversification, the interim step of staunching the bleeding in the automotive sectors could provide some near-term relief.

Analysts say the numbers indicate downsizing activity peaked nearly a year ago, and that economic recovery is well underway.

"It may be a couple of more months before hiring begins to surge, but it is clear that employers have shifted away from downsizing and are poised to start adding workers," says John Challenger, CEO of the Chicago-based Challenger, Gray & Christmas.

Businesses unite for health education

Whirlpool Corporation and other organizations in the Benton Harbor/St. Joseph area are attempting to improve worker health and productivity through an innovative "Communities of Health" pilot program.

The group of employers, health stakeholders, educators, political and faith leaders was brought together by Whirlpool along with the Consortium for Community Development and health insurer Cigna. They hope to identify and break down community and social barriers that affect the health of local residents. By broadening the conversation to go beyond the traditional scope of health care payment and access, they hope to improve the health and overall wellness of workers and the population at large.

The premise is that employees live and breathe in a community beyond the work space; therefore, they are affected by that environment, which carries over into health and productivity costs.

Since the pilot began two years ago, Communities of Health has successfully educated citizens about myriad health issues and begun setting measurable goals for residents of the Benton Harbor area.

"Our strategy is to move individuals to take personal responsibility for their health, which means trying to help them understand their present health conditions while moving them toward preventive care, building a personal relationship with a physician in the community and understanding how their surroundings affect their health," explains Susan Pavlopoulos, manager, global medical management at Whirlpool.

Pavlopoulos says that Whirlpool would not be able to meet the same goals if they relied solely on the company's health benefit plan design. By utilizing resources in the larger community, and by partnering with other business, faith and health care leaders in the area, the firm believes it will be able to have a much greater impact on the Michigan community.

"From an employer standpoint there hasn't been much of a connection between employer plans and the home, the community itself," she observes.

To change the equation, Communities of Health recently hosted a Town Hall two-day event that brought together 500 participants to learn how the community affects their health. The following day, a group of health stakeholders and faith leaders drafted a plan of action which included steps such as having faith leaders set and measure a body mass index goal for their congregants.

To learn more about such projects being started in Detroit and other parts of the nation, visit http://www.communitiesofhealth.org/.