How Veterans Can Make a Positive Impact on Workforce Development in the Construction Industry
ABSTRACT
The U.S. construction industry faces significant workforce development challenges, mostly in terms of labor shortage. Addressing this challenge is important for meeting the present and future needs of the industry. Hiring veterans is a valuable way through which the construction industry may overcome the workforce development challenges it faces. In spite of the several initiatives introduced by construction firms alongside the government and other stakeholders to take advantage of veteran talent, little research has been conducted to understand the impact of hiring veterans on workforce development in the construction industry. Based on in-depth interviews with six individuals and veterans in the construction industry, this study sought to understand the positive impact hiring veterans can have on workforce development in the construction industry as well as the challenges associated with hiring veterans. The six individuals included an executive at a private construction company, an owner of a construction company, an administrator at a higher learning institution offering training to veterans, and three veterans working in a construction company. According to the findings of the study, veterans possess unique skills and abilities that make them ideal for construction jobs: a strong work ethic, teamwork and leadership skills, organization and the ability to develop action plans, resilience and problem solving skills, and cross-cultural competence. These skills can be valuable for the construction industry given the significant workforce shortage it is experiencing. Furthermore, an increasingly large number of veterans retire every year, presenting a large pool from which construction firms can draw valuable talent. Acknowledging the value of veteran talent, construction firms, learning institutions, government agencies, and other stakeholders have already introduced wide-ranging initiatives to increase veterans access to employment opportunities in the construction industry. Even so, considerable challenges abound: difficulties in adjusting to civilian life on the part of veterans, difficulties in locating veterans on the part of employers, skill mismatch, and concerns over veteran redeployment in the future. Suggestions for addressing these challenges as well as implications for construction firms, learning institutions, and policymakers are discussed.
TABLE OF CONTENTS
ABSTRACT i
CHAPTER ONE: INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problem 5
1.3 Research Aim and Objectives 6
1.4 Significance of the Study 7
1.5 Organization of the Study 9
CHAPTER TWO: LITERATURE REVIEW 10
2.1 Introduction 10
2.2 Theoretical Background: What is Workforce Development? 10
2.3 Workforce Development Processes and Initiatives 13
2.4 Significance of Workforce Development 15
2.5 Veterans, Civilian Employment, and Workforce Development 16
2.6 Impact of Hiring Veterans on Workforce Development 18
2.6.1. Benefits for Employers 18
2.6.2 Talent, Skills, and Abilities 19
2.6.3 Empirical Evidence 22
2.6.4 Challenges of Hiring Veterans 23
2.7 Workforce Development and Hiring Veterans in the Construction Industry 25
2.8 Chapter Summary 27
CHAPTER THREE: RESEARCH METHODOLOGY 29
3.1 Introduction 29
3.2 Research Philosophy 29
3.3 Research Approach 31
3.4 Research Design 31
3.5 Target Population and Sampling 32
3.6 Research Instrument 34
3.7 Interview Questions 36
3.8 Validity and Reliability 39
3.9 Data Collection 40
3.10 Data Analysis 40
3.11 Ethical Issues 40
3.12 Limitations of the Study 41
CHAPTER FOUR: RESULTS AND DISCUSSION 41
4.1 Introduction 41
4.2 Description of Participants 42
4.3 Veteran Skills and Abilities Useful for the Construction Industry 43
4.3.1 Work Ethic 44
4.3.2 Teamwork and Leadership Skills 48
4.3.3 Organization and Ability to Follow Orders 53
4.3.4 Resilience and Problem Solving Skills 56
4.3.5 Cross-Cultural Exposure 58
4.4 Initiatives that Integrate Veterans into the Construction Industry 60
4.4.1 Construction Industry Initiatives 60
4.4.2 Learning Institutions Initiatives 66
4.4.3 Military-Led Initiatives and Other Initiatives 71
4.5 Impact of Hiring Veterans on Workforce Development in the Construction Industry 74
4.5.1 Veteran Talent and Transferability to the Construction Industry 74
4.5.2 Workforce Shortage and Veterans Preference for Construction Jobs 78
4.6 Challenges of Hiring Veterans and Implications on Workforce Development 83
4.6.1 Difficulties in Adjusting to the Civilian Workplace 83
4.6.2 Skill Mismatch and Lack of Industry Experience 87
4.6.3 Difficulties in Locating Veterans 90
4.6.4 Concerns over Redeployment 91
4.6.5 Other Challenges 92
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS 95
5.1 Summary and Conclusion 95
5.2 Strengths, Limitations, and Suggestions for Future Research 99
5.3 Practice and Policy Implications 100
5.3.1 Implications for the Construction Industry 100
5.3.2 Implications for Learning Institutions 103
5.3.3 Implications for Policymakers 104
REFERENCES 105
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CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
The importance of workforce development cannot be overemphasized. For any industry to thrive, it must have an adequate supply of a talented and qualified workforce (Uhalde, 2011). Workforce development is concerned with creating and maintaining such a workforce. It is a human resource (HR) function that focuses on addressing employment needs (Harris and Short, 2014). It encompasses identifying employment needs and skill gaps, filling the gaps, as well as preparing and training workers (U.S. Government Publishing Office, n.d). These efforts are aimed at improving employee performance, maintaining a productive workforce, and most importantly, adapting to change (Haralson, 2010). Without a productive workforce, organizations and industries may not effectively achieve their strategic goals and objectives. Indeed, a productive workforce is a crucial ingredient of organizational or industry success it is vital for remaining competitive in a constantly evolving environment.
The U.S. construction industry faces significant workforce development challenges. More specifically, the industry continues to grapple with considerable labor shortages, with the current supply of professionals and craft workers unable to meet the growing demand for labor in the industry (Azhar et al., 2014). The construction industry has experienced a boom since the 2008 economic recession, consequently increasing the demand for construction projects (Associated General Contractors of America [AGC], 2014). Nonetheless, according to a 2013 survey by AGC, most construction firms (nearly 75%) are finding it hard to recruit qualified workers to fulfill the demand for increased construction work (AGC, 2013). Construction firms are specifically unable to find qualified personnel to fill positions such as equipment operators, carpenters, engineers, estimators, and project supervisors. The survey further found that 65% of construction firms regarded the available craft workers as poorly qualified in terms of quality, skills, and productivity.
Other reports have reported similar finding. In 2010, an industry publication reported that 1.5 million additional workers would be required to the meet the demand for labor in the construction industry in 2014 (Groves, 2010). Today, the shortage is even severer. According to the 2016 National Association of Home Builders (NAHB) labor shortage survey, the percentage of construction firms facing serious labor shortages in 2016 stood at 56%, a significant increase from 21% in 2012 (Beyer, 2017).
The above reports point to worrying skill gaps in the construction industry. They highlight the widening break between the construction workforce and construction skills. Many young people are either not interested in pursuing construction careers or are not receiving adequate training to work in the construction industry (Azhar et al., 2014). This problem has been fueled by a combination of economic, education, demographic, and policy factors (AGC, 2014). The inadequacy of vocational and technical education programs, especially at the secondary school level, is a particularly important challenge. The U.S. once had comprehensive vocational programs in high schools. Today, however, such programs have declined, with most high schools shifting their focus to college preparatory programs. The declining attention to vocational programs has in large part been caused by reduced federal funding. Between 2006 and 2014 alone, for instance, the federal budget for career and technical education programs reduced by nearly 30% (AGC, 2014). With funding cuts, many vocational programs struggle with resource constraints, especially given the costly equipment and materials needed to offer vocational training. The implication is that fewer young people are pursuing construction and other technical courses, making it difficult for construction firms to find skilled craft workers.
The problem has further been compounded by declining enrolment into union-based apprenticeship initiatives. Between 2008 and 2013, the proportion of construction employees preferring union representation decreased by 23% (AGC, 2014). This means that union-based apprenticeship programs are not as widely available as they were a couple of years ago. More regrettably, state and federal policies make the creation of similar apprenticeship programs by open-shop contractors difficult. As a result, many construction firms are reluctant to invest in workforce training, worrying that firms may poach their trained employees.
Demographic shifts have also contributed to labor shortage in the construction industry. During the 2008 economic recession, many construction workers left the industry mostly due to layoffs (Beyer, 2017). Unfortunately, a substantial portion of construction workers who left the industry are not interested in returning. Indeed, most of them have pursued advanced education, ventured into other careers, or even retired. Statistics indicate that the number of construction workers presently in search of employment declined from 2.2 million in 2010 to 1 million to 2014, representing a more than 50% decline in a period of less than 5 years (AGC, 2014). These workers would now be serving as truck drivers, equipment operators, engineers, and so forth. In the meantime, most immigrant workers returned to their home countries at the height of the recession, and many of them have not returned to the U.S. owing to, among other factors, better economic conditions in their country and more stringent immigration regulations in the U.S. States with higher immigrant populations such as California and Texas have particularly been hurt by immigration shifts given that 40% of their construction workforce are immigrants (Beyer, 2017).
The age of the average construction worker has also changed. Presently, approximately 44% of the workforce in the construction industry is aged 45 years or more (AGC, 2014). Further, 20% of the workforce is 55 years or order. This means that more than 1 million construction workers will retire in the next one decade, further widening labor shortage in the industry. This problem is likely to persist in the future if measures are not urgently undertaken to address it. In fact, finding qualified craft and professional workers for the construction industry is likely to be more difficult in the future. This poses a substantial threat to the industry, warranting the need to prepare the workforce for construction work in the future.
The need to address labor shortage in the construction industry particularly stems from the associated impacts. Indeed, labor shortage has had severe impacts on the industry. In NAHBs 2016 survey, 75% of construction firms reported that they have had to spend more on wages due to labor shortages (Beyer, 2017). Increased employee expenses have compelled construction firms to deliver projects at higher bids, meaning home and building prices are increasingly higher. Between 2012 and 2017, for instance, median home prices jumped from $151,000 to $196,500 (Beyer, 2017). Also, labor shortage in the construction industry has the potential to undermine the growth of the construction industry and the countrys economic growth at large. As construction firms continue experiencing labor shortages, they will be compelled to offer slower project schedules. For critical construction projects, slower schedules can not only result in client dissatisfaction, but also hinder the speed of economic and employment growth (AGC, 2014). In any case, dissimilar to other projects, construction projects cannot be off-shored they must be executed on-site.
Given the severe implications of workforce shortage, a workforce development plan for the construction industry is imperative. According to AGC (2014), a series of policy initiatives (at the local, state, and federal levels), in conjunction with the private sector, is vital for developing the construction workforce. The initiatives should focus on increasing construction-related training and development opportunities. More specifically, hiring veterans presents a viable solution for workforce development challenges in the construction industry. This is because of two major reasons. First, unemployment amongst veterans is approximately three percentage points higher compared to the general population, with Gulf War II veterans having the highest rate of unemployment (National Center for Veterans Analysis and Statistics, 2013). Unemployment among the veteran population is expected to be even higher in the future given that hundreds of thousands of service members are exiting the military every year, against the backdrop of Americas reduced defense spending and shifting defense strategies.
Most importantly, given the nature of their work, veterans have unique skills and capabilities that make them ideal for construction work (Starich, 2017). Part of military work involves construction tasks. For instance, many service members have direct experience in building or repairing bridges, airfields, and other types of structures. In addition to construction skills, service members are equipped with important leadership skills such as team building, organization, and team supervision. They are excellent team players, dependable, dedicated, goal-oriented, and disciplined. Also, veterans have an admirable work ethic as well as outstanding ability to meet deadlines, work under conditions of pressure, and solve problems. These skills are valuable for project-based tasks such as construction projects. Construction tasks can be daunting undertakings due to their inherent complexity. Thus, the familiarity of military members with complex situations makes them perfect candidates for construction jobs. Several organizations, including the construction industry, are increasingly acknowledging the value of hiring veterans (Harrell and Berglass, 2012). Nonetheless, many organizations remain quite unaware of how to get the mot out of veterans.
1.2 Statement of Problem
Hiring veterans in the construction industry is not exactly a new idea. Indeed, there are several organizations that have been committed to connecting veterans with employment opportunities in the construction industry. Veterans Build America, V2C, VIP, Veterans in Construction Electrical (VICE), Build Your Future, Hire Our Heroes, and Helmets to Hardhats are ideal examples (Azhar et al., 2014). For instance, Helmets to Hardhats has been assisting veterans secure construction jobs since 2003. VIP, a much different program, not only helps veterans find employment opportunities in the construction industry, but also offers veterans free construction-related training.
In spite of the existence of programs for paring veterans with construction jobs, quantifying their efficacy remains difficult, in large part due to lack of research in this area. Additionally, most of these programs have experienced significant funding challenges, consequently undermining their effectiveness. As a result, it is not clear whether these programs are having any impact on workforce development in the construction industry. Very few studies have been carried out to determine the positive impact of hiring veterans on workforce development in the construction industry. This is quite surprising given the widespread shortage of labor in the industry, the valuable skills veterans can offer to the industry, and the existence of programs aimed at pairing the veteran population with construction firms. The few studies that have been conducted in this area (e.g. Azhar et al., 2014) do not offer comprehensive findings. The studies also present methodological difficulties, hence the need for more research. The present research sought to fill this gap in research.
1.3 Research Aim and Objectives
The aim of the present study was to examine how the construction industry can benefit from veterans in terms of workforce development. The study specifically sought to achieve the following objectives:
1. To highlight the skills and abilities military veterans can bring to the construction industry.
2. To highlight efforts made by the government, learning institutions, and construction firms to ensure veterans are hired in the construction industry.
3. To demonstrate the impact of hiring veterans on workforce development in the construction industry.
4. To highlight the challenges of hiring veterans in the construction industry and the implications of those challenges on workforce development.
1.4 Significance of the Study
The present study has significant implications for the construction industry. Despite the widespread recognition that workforce shortage is a serious problem in the construction industry, the industry as a whole has done little to develop its workforce. This places the industry at a significant disadvantage considering that other industries are competing for the same scarce pool of professional and craft workers (Saxton, 2015). Time is ripe for the construction industry to pay greater attention to workforce development. Investing in workforce development is vital if the industry is to become the preferred industry for the millions of people looking for employment, especially veterans. By examining the positive impact of hiring veterans on workforce development, this study, therefore, offers useful insights for players in the construction industry. Construction firms and industry associations will gain invaluable knowledge on how to effectively tap into the skills and capabilities of discharged service members.
Taking advantage of veterans skills and abilities is especially vital for the construction industry. Statistics indicate that veterans are more likely to take up construction jobs compared to non-veterans (Manzo, Bruno and Duncan, 2016). Indeed, veterans tend to be disproportionately represented in the construction industry compared to non-veterans. This is particularly true in southern states, where the percentage of veterans in the construction workforce is as high as 14% compared to less than 8% for the share of veterans in the entire workforce. In essence, the construction industry is a major source of employment for veterans. Many veterans are attracted to the construction industry by their inability to pursue a college degree. Accordingly, players in the construction industry ought to be fully cognizant of the benefits they can gain from hiring veterans.
Additionally, the study provides the business case for hiring veterans. Whereas business organizations actively support veterans, most of them in practice add veterans to their workforce only if they perceive it to be beneficial for business (Harrell and Berglass, 2012). This is not quite surprising since any profit-oriented business prioritizes profitability over anything else. If business organizations clearly see the business case for hiring veterans, they are likely to hire veterans (Haynie, 2016). This study justifies the business case for hiring veterans in the construction industry.
The study has far-reaching implications for not only the construction industry, but also the government and policy makers. The construction industry occupies an important position in the U.S. economy, accounting for approximately 4% of the countrys total GDP. More importantly, the industry is one of the fastest growing industries in the U.S. in terms of output and employment (Saxton, 2015), with annual growth exceeding 12% as of 2014 (Manzo, Bruno and Duncan, 2016). The growth of the industry, however, is threatened by workforce shortage. The present study has immense potential to influence policies and initiatives that favor the construction industry. The study can serve as a basis for the government to work together with the construction industry and the private sector at large to integrate the hundreds of thousands of veterans exiting service every year into the construction industry. For the government, integrating veterans into civilian employment is a priority.
Government and private sector efforts to address unemployment among veterans are crucial for enhancing the welfare of veterans. Veterans are an especially vulnerable group due to combat-related stress (Harrell and Berglass, 2012). This stress may be compounded by financial difficulties and other challenges specific to veterans such as physical health complications, homelessness, marital problems, and interpersonal difficulties (Berglass and Harrell, 2012). By highlighting the positive impact of veterans on workforce development in the construction industry, this study, therefore, adds weight to the perennial problem of veteran wellbeing.
1.5 Organization of the Study
The remainder of the paper is organized as follows. Chapter 2 provides an extensive review of literature on workforce development, veterans and civilian employment, as well as the impact of hiring veterans on workforce development in general and specifically in the construction industry. Chapter 3 describes and justifies the methods and procedures that were employed to achieve the objectives of the study. Chapter 4 presents the findings of the study and offers an interpretation of the findings. Chapter 5 summarizes the study, ultimately summarizing the study and highlighting recommendations for practice, policy, and research.
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
The aim of the present study was to examine the positive impact hiring veterans can have on workforce development in the construction industry. This chapter provides a comprehensive review of extant literature on the topic. First, the theoretical background of the study is provided, clearly defining the concept of workforce development and describing the importance of workforce development. Next, attention is paid to the participation of veterans in civilian employment, initiatives ndertaken to increase veteran employment, and the contribution of veterans to workforce development, especially in terms skills, abilities, and experience. The review also focuses on the involvement of veterans in the construction industry. Finally, a summary of the review is offered, identifying gaps in research and highlighting the focus of the present study.
2.2 Theoretical Background: What is Workforce Development?
There is no universally applicable definition of the concept of workforce development. Nevertheless, the concept essentially denotes the process of training and preparing workers for jobs in an increasingly complex world (Harris and Short, 2014). The U.S. Government Publishing Office (n.d.) offers a much broader definition of workforce development: a host of efforts, policies, processes, and activities undertaken to develop a productive workforce, identify and address future workplace needs, and equip workers with the skills and competencies needed to effectively fulfill their roles and responsibilities at the workplace. For Haralson (2010), workforce development refers to a wide range of activities, policies and programs employed by geographies to create, sustain and retain a viable workforce that can support current and future business and industry. This definition suggests that workforce development is not a single program it encompasses interconnected solutions aimed at addressing employment needs.
Instead of focusing on businesses, workforce development focuses on people. It is a human resource strategy concerned with enhancing human capital (Harris and Short, 2014). Accordingly, workforce development can also be referred to as human resource development. Nonetheless, this does not necessarily mean that the terms workforce development and human resource management can be used interchangeably. It is important to note that workforce development entails not only building the skills of the workforce, but also establishing systems for matching employers with job seekers (Haralson, 2010). This aspect of workforce development dominates the focus of this study. At any given time, there are millions of individuals without jobs, in large part due to the scarcity of jobs and lack of skills. Workforce development initiatives are important for linking these individuals with relevant job opportunities. Thus, workforce development serves two purposes at the same time. On one hand, it enables individuals to have skills, knowledge, and attributes that match the needs of the workplace and the economy at large. On the other hand, workforce development offers employers a mechanism to convey and fill their demand for skills.
The concept of workforce development is anchored in several theories, including management theory, learning theory, psychology, sociology, lifelong learning, organizational behavior, and economic theory. The concept is not quite new it was first mentioned in the mid 1990s by Harrison, Weiss and Gant (1995) (cited in Comyn, 2008). Harrison and associates sought to distinguish between employment training and workforce development. While employment training pays attention to the supply of skills (supply side), workforce development places emphasis on the needs of the employer (demand side). Accordingly, the workforce development approach is a better approach for developing human capital. This is especially because workforce development goes beyond training to include processes and activities such as collaboration, mentoring, job matching, and employee retention (OLawrence, 2016).
There are two major forms of workforce development: place-based workforce development and sector-based workforce development (Harris and Short, 2014). The first form involves improving the skills and competencies of the workforce in a given location e.g. a neighborhood, county, state, country or region. Place-based workforce development strategies focus on the supply side. The second form denotes efforts undertaken at the sector or industry level. In this form, initiatives are undertaken to match the workforce with industry needs. Dissimilar to place-based workforce development, sector-based workforce development pays attention to the demand side. Irrespective of the form, workforce development is undertaken to adapt to environmental changes (OLawrence, 2016).
As per human capital theory, the concept of workforce development has a much wider scope than just skills development or technical expertise (Leggett, 2013). Workforce development also involves building the social abilities and traits desired by the typical employer. For instance, employers prefer candidates with not only subject matter expertise or knowledge, but also excellent interpersonal, communication, teamwork, problem solving, and leadership skills. They desire individuals with proven integrity, ethical conduct, professionalism, diligence, flexibility, resilience, reliability, and self-direction (Duerden et al., 2014). This expanded scope means that workforce development is concerned with not only achieving full employment, but also enhancing employability. Employability means that an individual possesses the education and skills needed to effectively fulfill a given role in the workplace. Regrettably, many employers are increasingly concerned that most job candidates lack sufficient employability, underscoring the need for greater attention to workforce development (Uhalde, 2011).
2.3 Workforce Development Processes and Initiatives
From the above definition, workforce development entails numerous processes and activities e.g. education, vocational and career-oriented training, pre-employment preparation, mentoring, and increasing access to educational and career opportunities (Harris and Short, 2014; OLawrence, 2016). These activities involve several stakeholders, including the national government, state governments, non-governmental organizations, learning institutions, and the private sector. Indeed, according to Haralson (2010), workforce development encompasses the administration and coordination public- and private-sector initiatives, programs, and policies with the aim of empowering individuals to earn a livelihood as well as helping organizations achieve their goals and objectives.
At the national level, the U.S. government is actively involved in promoting science, math, and engineering courses in high school and higher learning institutions through funding and legislative initiatives as well as partnerships with non-government stakeholders (Uhalde, 2011). The ultimate objective of such initiatives is to develop a workforce that can sustain technical jobs. State government governments are also involved in workforce development. In Tennessee, for example, the state government administers a workforce development program the Highlands Economic Partnership that brings together firms, educational institutions, and the regional chamber of commerce (Elkins et al., 2016). The initiative seeks to align curricula with industry needs, develop workforce skills, and connect jobseekers with employment needs. Public-sector workforce development efforts not only serve business and industry needs, but also contribute to the achievement of state and national economic growth goals (Haralson, 2010).
At the private sector level, corporate organizations participate in workforce development through recruitment, onthe-job training, team development, mentoring, coaching, and talent management processes (Leggett, 2013). These processes are imperative for attracting and retaining a qualified pool of talent. They facilitate positive employee outcomes such as organizational commitment, loyalty, job satisfaction, and retention. A group of organizations may also join to foster workforce development. Such collaborations are especially widespread at the industry level (Uhalde, 2011). Through industry associations, organizations in the same industry initiate programs to promote and sponsor professional development, industry-specific skills training, and employment growth (Haralson, 2010). Industry partnerships enable organizations to address shared problems collectively. For instance, organizations in the construction industry may join efforts to deal with workforce shortage and employee retention issues. Corporate-level workforce development may also be specific to professions (Uhalde, 2011). For instance, there are initiatives specifically targeted at finance, project management, legal, and engineering professions.
Higher learning institutions participate in workforce development by equipping the workforce with subject matter knowledge as well as job skills (Hordern, 2013). In Washington, DC, for instance, the University of the District of Columbia Community College provides residents with free skills training through an initiative dubbed Workforce Development and Lifelong Learning Program (Leer and Ivanov, 2014). Predominantly targeting low-income minority groups, the program was introduced in 2006 to offer free courses relating to four career paths: hospitality, construction, technology, and healthcare. Many other higher learning institutions throughout the country also make significant contributions to workforce development.
Given the multiplicity of dimensions involved, workforce development is quite difficult to achieve without stakeholder partnerships. Indeed, most workforce development efforts involve government agencies, non-governmental agencies, learning institutions, and the private sector (Uhalde, 2011). In the U.S., stakeholder partnerships have played a crucial role in advancing workforce development. The U.S. Council on Competitiveness is an ideal example (Elkins et al., 2016). The council is an initiative that brings together business organizations, universities, and labor organizations to enhance workforce development. The initiative specifically seeks to improve access to high quality education, create jobs, reduce unemployment, advocate for increased investment into science and technology by the federal government, and to boost U.S.s competitiveness in the global economy. Stakeholder partnerships provide synergy and collaboration, making workforce development easier to achieve (Harris and Short, 2014). In addition to corporate-level, regional, and national initiatives, there are worldwide workforce development initiatives (Leer and Ivanov, 2014). The above are just a few examples of the several initiatives undertaken by governments, non-governmental agencies, learning institutions, and the private sector to develop the workforce.
2.4 Significance of Workforce Development
Workforce development is a crucial ingredient of economic growth and development (Elkins et al., 2016). Whether at the organizational, industry, local, national, regional, or global level, workforce development plays a crucial role in economic prosperity. Haralson (2010) terms workforce development as an essential component of community economic development in any economic climate. Workforce development is even more important in todays increasingly knowledge-based economy. Organizations, industries, and countries need an educated and competent workforce to effectively achieve their goals and objectives, and to be competitive in the domestic and international marketplace (OLawrence, 2016). A skilled workforce drives innovation, productivity, and business growth, hence enabling an industry or economy to successfully fulfill its needs (Uhalde, 2011).
For business organizations, workforce development is vital for fulfilling workplace demands (Bell et al., 2014). In the contemporary world, organizations grapple with increased environmental uncertainty and greater task complexity. This can be attributed to, among other factors, globalization, technological advancement, political reforms, demographic changes, and socioeconomic shifts. Recruiting and maintaining an adequate workforce with the relevant skills, knowledge, experience, competencies, and abilities is vital for survival in such an environment (Duerden et al., 2014). Essentially, lack of a skilled workforce threatens the existence of organizations in the future. Industries without adequate talent are prone to unnecessarily high labor costs and the inability to achieve their strategic goals and objectives.
2.5 Veterans, Civilian Employment, and Workforce Development
Several organizations and industries are turning to veterans in an effort to develop their workforce. It is important to understand who a veteran is prior to proceeding further. Title 38 U.S.C. 101 defines a veteran as a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable (Harrell and Berglass, 2012: 7). For purposes of this study, a veteran denotes an individual who was in active service in any position in one or more of the many components of the military (Air Force, Navy, Army, Coast Guard, Marines, National Guard, or Reserve), and was discharged honorably. This clarification is important given the shifting character of U.S.s defense strategy. In the wake of military downsizing, the U.S. is increasingly relying on private contractors for military operations. These individuals are not considered as veterans in this study.
Once discharged from active duty, veterans have to adjust to civilian life. Part of this integration encompasses finding a source of income. For many veterans, however, finding employment can be a difficult undertaking due to factors such as the unwillingness of employers to hire veterans (Berglass and Harrell, 2012). A number of government-led initiatives have been introduced to address this problem. For instance, Congress, in partnership with the executive, passed the Veterans Opportunity to Work (VOW) to Hire Heroes Act in 2011 (Harrell and Berglass, 2012). The legislation offers incentives (e.g. tax credits and training assistance) for the private sector to hire veterans. Government agencies, especially the Department of Defense (DOD), the Department of Veterans Affairs (VA), the Department of Labor (DOL), and the Department of Homeland Security (DHS), have also introduced offline and online initiatives to increase employment among veterans. These initiatives focus on topics such as pre-separation counseling, benefits briefing, career avice, skills training, apprenticeship, skill translation, and employment coaching (Manzo, Bruno and Duncan, 2016). In addition, the Office of Personnel Management contributes to veteran employment by giving veterans preference in recruitment processes as well as linking them with HR departments across the government.
Initiatives to address unemployment among veterans have also been launched by non-governmental organizations and the private sector. For instance, the U.S. Chamber of Commerce administers the Hiring Our Heroes Program, an initiative aimed at connecting over 500,000 veterans with employment opportunities in the private sector (Harrell and Berglass, 2012). The initiative brings together chambers of commerce and thousands of business organizations throughout the U.S. As of 2012, the program has led to over 9,000 veteran hires. Further, the 100,000 Jobs Mission program is a program pioneered by a consortium of 44 firms with the aim of integrating more than 100,000 veterans into private sector employment (Harrell and Berglass, 2012). As of 2012, firms in the consortium had hired more than 12,000 veterans. Other notable private sector initiatives include Veterans on Wall Street (VOWS) and Wall Street Warfighters.
On the whole, government agencies, non-government organizations, and business organizations have undertaken commendable steps to minimize unemployment amongst veterans. These efforts are aimed at not only addressing unemployment, but also developing the workforce. Success in economic activity and economic development as a whole requires an adequate supply of labor and skills. Given their military background, veterans can significantly contribute to workforce development.
2.6 Impact of Hiring Veterans on Workforce Development
2.6.1. Benefits for Employers
Hiring veterans is beneficial for business. Veterans characteristics and competencies can confer improved performance and competitive advantage to an organization (Haynie, 2016). Hiring veterans is not only good for business, but also signals good citizenship. As explained by Harrell and Berglass (2012), adding veterans to the workforce presents crucial public relations advantages. When an organization actively seeks to hire veterans, it portrays its commitment to workforce diversity and veteran wellbeing. This commitment has immense potential to build the organizations reputation (Gudmundsson, 2016). Such benefits justify the need for employers to hire and develop veterans.
An important concern for many employers with respect to hiring veterans relates to the associated value or the return on investment (Haynie, 2016). Any prudent business organization makes an investment with the aim of creating value for the firm. The returns or benefits accrued must justify the investment made. Business organizations want to be certain that veteran employment programs create value for the firm. What strategic benefits will hiring veterans bring to the organization? How will veterans build the organizations human capital? These are fundamental questions that business organizations want clearly answered prior to investing in a veteran employment initiative. Emphasis on value is not unusual. Firms exist in a rigorously competitive business environment, a challenge compounded by resource constraints (Haynie, 2016). Business leaders grapple with the challenge of achieving more with limited resources. In such an environment, businesses want assurance that adding veterans to their workforce will contribute to the bottom line. Without this assurance, it may be difficult for firms to be committed to hiring veterans.
The huge number of veterans places veterans in an ideal position to contribute to workforce development in the private sector. Every year, hundreds of thousands of service members are honorably discharged from active duty (AGC, 2014). From 2007 to 2014 alone, more than 1.2 million veterans rejoined civilian life (Manzo, Bruno and Duncan, 2016). Such a huge number provides business organizations with a large pool from which they can draw useful human capital.
2.6.2 Talent, Skills, and Abilities
Workforce development is not just about having adequate workforce numbers it is also about skills and abilities. The most important value veterans bring to the private sector stems from their unique talent. Haynie (2016: 5) describes veteran talent as a differentiated human capital resource within the firm. This means that veterans come with skills and abilities that non-veterans may be deficient in or may not have. Veterans gain these skills from their service in the military. Military experience equips veterans with the ability to organize and lead teams (Vashdi et al., 2007). Compared to non-veterans, veterans are more skilled in developing team goals and objectives, outlining team member roles, designing work plans, formulating action plans to achieve specified goals, as well as working in task-oriented groups (Institute for Veterans and Military Families [IVMF], 2012). With workplace tasks increasingly becoming complex, the significance of teamwork and effective leadership cannot be overemphasized. In fact, most organizations now desire individuals with outstanding teamwork and leadership abilities. Veterans excellent teamwork skills make them ideal candidates for private sector jobs (God-Sanchez, 2010). If hired in the civilian context, they can contribute to the development of high-performing teams.
Harrell and Berglass (2012) point out that anyone who has led a team of combatants has the ability to lead a project team or a sales team in the civilian context. Team leadership in the civilian workplace generally encompasses giving direction and motivating followers. Team leaders in the military context do that every day, making them suitable candidates for private sector jobs (Schindler, 2016). Majority of college graduates lack leadership or management experience, meaning that someone who has been in the military is one step ahead in terms of leadership experience. Though the civilian workplace is substantially different from the military workplace, veterans can readily apply their experience to leadership roles in the civilian workplace.
Another skill veterans bring to the civilian workplace is the ability to follow instructions (Haynie, 2016). Ordinarily, the military is characterized by hierarchy and chain of command. Subordinates are taught to follow to the letter orders given by their superiors. Though contemporary organizations are ever more shifting to less hierarchical or decentralized structures, the prevalence of centralized structures is still widespread. Organizations that want to maintain and enforce hierarchy can count on veterans. However, it may be argued that hierarchy has no place in todays world. Whether hierarchy is advantageous to an organization or not is beyond the scope of this paper, but the ability to follow instructions, processes, and structures is a crucial skill in the workplace (Harrell and Berglass, 2012). For instance, workers are expected to comply with government and/or industry rules and regulations in the execution of their everyday responsibilities. The military is a place of rules, meaning that veterans are good at adhering to rules.
Veterans are also taught to work under pressure. Resilience is an important skill for success as a military member (IVMF, 2012). Given the character of military work, service members must be capable of overcoming adversity and hardships. They must be able to excel and accomplish goals in environments that the typical human being may not. Resilient behavior can be valuable in the civilian workplace (Haynie, 2016). In an ever more complex world, personal, professional, and organizational endeavors can fail. Individuals with the ability to cope with such situations without a doubt make better candidates. Veterans are such individuals (Harrell and Berglass, 2012).
Military experience instills a strong work ethic into veterans (chindler, 2016). In a changing world, lack of work ethic, mostly among the millennials, is especially a crucial challenge facing the contemporary employer. Many young employees today lack the character and discipline portrayed by baby boomers and earlier generations. Since veterans are taught to be hardworking, virtuous, dependable, mature, diligent, mission-oriented, and effective time managers, they can add enormous value to an organization (Harrell and Berglass, 2012). The unique work ethic of veterans is further evident in their exceptional faith in co-workers, ability to trust their leaders, loyalty, and organizational commitment. These behaviors have extensively been associated with high individual productivity, effectiveness, and morale, which can positively influence organizational performance (IVMF, 2012).
Veterans are also entrepreneurial (Haynie, 2016). Military work generally involves complex and uncertain situations. In such an environment, service members must be quick decision makers. They must be creative, innovative, analytical, and great problem solvers. Working in the combat environment also requires one to be effective and have an unrelenting desire for achievement (IVMF, 2012). These skills are vital for solving the complexity of the combat environment. If transferred to the civilian context, these skills can be of great value to an organization. The relevance of these skills particularly stems from the dynamic nature of the environment in which organizations operate. In the face of constant political, regulatory, technological, and socioeconomic shifts, organizations must be agile, decisive, and quick actors.
In addition, veterans have experience in diverse and cross-cultural contexts (IVMF, 2012). The nature of military work exposes veterans to not only combat environments, but also tasks relating to construction, emergency response, and humanitarian assistance. This makes veterans particularly proficient in transferring sills across tasks and contexts. Service members also have work experience beyond their home country, meaning more exposure to diverse cultures (Schindler, 2016). As a result, veterans are more likely to be culturally sensitive compared to non-veterans (Haynie, 2016). With such diverse experiences, the veteran population offers a unique source of talent for employers, hence a valuable resource to have.
The value of veterans to the private sector further stems from their extensive exposure to technical training (Haynie, 2016). Typically, military training involves not only combat-related training, but also technology training. In fact, service members tend to have more advanced technological training and technical expertise compared to their non-military counterparts (Harrell and Berglass, 2012). Exposure to advanced technology makes veterans distinctively capable addressing organizational challenges using technology-based solutions (IVMF, 2012). This is a particularly important skill in a world that is increasingly technology-based and in search of technical experts. Today, virtually every organizational process and activity relies on technology and technical processes. Thus, employing veterans gives an organization an upper hand in terms of exploiting technological solutions and technical expertise.
2.6.3 Empirical Evidence
The scarce empirical evidence in this area demonstrates that hiring veterans can positively affect workforce development. Based on in-depth interviews with 87 individuals drawn from 69 companies in diverse industries, including manufacturing, agriculture, mining, retail, financial services, education, healthcare, and transportation, as well as representatives from DOD, VA, and DOL, Harrell and Berglass (2012: 5) show that hiring veterans is good for business. Participants in the study, who held diverse positions in their organization ranging from HR positions to executive positions, particularly identified the skills and abilities of veterans as the major source of the benefits. They reported veterans character, discipline, resilience, team work abilities, effectiveness, and leadership skills as valuable for organizational success. Compared to civilians, veterans tend to be receptive to structure and hierarchy, making personnel management easier. When translated to civilian careers, these skills and abilities can be beneficial for an organization (Manzo, Bruno and Duncan, 2016)
The value of Harrell and Berglasss (2012) study lies in the fact that it offers the perspectives of business organizations. Business organizations play a crucial role in integrating veterans into civilian life, hence are valuable sources of information about the experience of hiring veterans. Furthermore, the study draws on the perspectives of businesses with diverse characteristics in terms of age, industry of operation, location, and proportion of veteran workforce. This improves the generalizability of the findings.
Sixty-two percent of the firms included in Harrell and Berglasss (2012) study indicated that they actively sought to recruit veterans. They hired veterans through channels such as base visits, military career fairs, partnerships, employment websites, web portals, headhunters, and employment referral. An additional 13% reported that though they were not actively seeking to recruit veterans, they would give preference to a veteran applicant as opposed to a non-veteran applicant. This is an indication that business organizations in diverse industry settings acknowledge the importance of hiring veterans. Indeed, many business leaders have increasingly sought to positively change the employment situation of veterans (Haynie, 2016). The recognition of the business case for hiring veterans is further evident in the initiatives organizations that hire veterans put in place to support veterans. In Harrell and Berglasss (2012) study, about 50% of the firms that actively sought to hire veterans reported offering mentoring programs and networking support to their veteran hires to maximize their effectiveness at the workplace.
2.6.4 Challenges of Hiring Veterans
Despite the benefits of hiring veterans, a number of challenges are involved. Harrell and Berglasss (2012) study identifies the difficulty of translating military experience to the private sector as a major obstacle employers face in recruiting veterans. More specifically, many veterans are unable to package their skills and adeptness in a manner that resonates with the civilian workplace, a problem compound by the inability of civilian organizations to understand the specific military skills that are relevant for their workplace. This difficulty can be attributed to, among other factors, the stark organizational culture differences between the military and the civilian context (Gudmundsson, 2016).
Closely related to the challenge of skill translation is the problem of skill mismatch. Many employers express concerns that veterans lack relevant skills, industry expertise, and/or a college degree in spite of their excellent leadership and teamwork abilities (Harrell and Berglass, 2012). As such, employers fear that veterans may not effectively execute high-level jobs in the civilian context such as executive management (Schindler, 2016). Additionally, though veterans may have the relevant skills, they may lack other critical qualifications (Harrell and Berglass, 2012). Forinstance, medical practice in the civilian setting requires certain certifications. Military medics may not have these certifications at the time of exit from active duty, presenting integration difficulties.
Other challenges identified by Harrell and Berglass (2012) include negative stereotypes, concerns about military deployments in the future, the need for acclimation prior to civilian employment, and the difficulty of locating veterans. These challenges have also been noted elsewhere (Azhar et al., 2014; Gudmundsson, 2016; Schindler, 2016). Negative stereotypes can especially be a hindrance to veteran hiring. Owing to veteran exposure to combat, employers may be concerned about posttraumatic stress disorder (PTSD) and other mental complications associated with military experience. Employers may also perceive veterans as less flexible and less communicative compared to non-veterans, making employers reluctant to hire veterans (Harrell and Berglass, 2012). Furthermore, employers may be worried about future deployments. It is not uncommon for discharged service members to be recalled to active duty. If a veteran is recalled, the employer would be compelled to look for a replacement, a process that can often be costly and time-consuming.
The above challenges can be addressed through adjustments to government policy (Harrell and Berglass, 2012). For instance, DOD, together with VA and DOL, should be more responsive to the needs of veterans during the transition from military to civilian life. These agencies should also be more involved in public-private partnerships aimed at supporting veterans as well as in assisting private sector organizations evaluate the suitability of veteran candidates.
Notwithstanding the associated challenges, there is a business case for hiring veterans. Veterans offer not only a large pool of prospective candidates, but also exceptional skills and abilities. In a labor market flooded with candidates with similar qualifications, having a unique skill puts one ahead of the competition. Compared to fresh graduates, an individual with military experience is likely to have stronger leadership, teamwork, organizational, and problem-solving skills. A reasonable employer would undoubtedly pick the latter. Such an individual is more likely to be high-performing, productive, and committed to the organization.
2.7 Workforce Development and Hiring Veterans in the Construction Industry
Recognizing the negative impacts of skill gaps, players in the construction industry players have been more committed to workforce development. For instance, the Contractors Workforce Development Assessment (CWDA) was introduced to facilitate an objective assessment of contractors commitment to workforce development (Saxton, 2015). Results of this tool are among the criteria used to select contractors and subcontractors. Contractors committed to workforce development are more likely to register higher productivity, reduced lower absenteeism, reduced turnover, and improved safety performance compared to those not committed to workforce development. Construction firms have also increased commitment to workforce development by analyzing skill and labor shortages in the local labor market on an ongoing basis (Saxton, 2015). Such evaluations enable industry players to identify the measures that can be undertaken to ensure a sustainable workforce, such as hiring, training, and advocacy.
The construction industry has especially been at the forefront in terms of providing employment opportunities to veterans, which is an integral step towards workforce development. For instance, more than 100 construction firms have launched an initiative to employ over 100,000 discharged service members by 2019 (Manzo, Bruno and Duncan, 2016). The initiative is part of the Joining Forces program, an initiative introduced by the Obama administration to find job opportunities for veterans in the private sector. Other notable construction industry initiatives include Veterans Build America, V2C, VIP, VICE, Build Your Future, Hire Our Heroes, and Helmets to Hardhats (Azhar et al., 2014).
Helmet to Hardhats is a nationwide program launched in 2003 to help veterans find employment opportunities in construction firms (AGC, 2017). However, the program has recently been experiencing funding challenges, consequently hindering its effectiveness. A more recent program, though much smaller, is V2C. The program also faces significant funding challenges. VIP differs from most construction industry-related initiatives. The program provides both employment in the construction industry and construction-related apprenticeship. It basically involves 18 weeks of training while the veteran is still at the military base, followed by 2 weeks of transition assistance to ensure a smooth transition to civilian employment (Azhar et al., 2014). All this support is provided free with the help of the United Association of Plumbers, Pipe Fitters, Welders and HVACR Technicians. The program was initially introduced at Joint Base Lewis-McChord in Lacey, Washington before spreading to other bases in the country. On its part, the Build Your Future program seeks to equip veterans with National Center for Construction Education and Research (NCCER) credentials (AGC, 2017).
Whereas the recruitment of veterans in the construction industry has been on the rise, little research has been conducted to demonstrate the impact the veteran population can have on workforce development in the industry. In their qualitative study, Azhar et al. (2014) demonstrate that labor shortages in the construction industry can be addressed by hiring veterans. Following interviews with contractors, veterans presently working in the construction industry, as well as groups committed to fostering partnership between veterans and the construction industry, the study specifically found that the veteran population provides a sustainable source of qualified workers for the construction industry. It was established that veterans have a strong work ethic, leadership skills, and unique capabilities to thrive in teamwork environments, making them ideally suitable for construction jobs.
However, for the construction to fully benefit from veteran talent, Azhar et al. (2014) recommends the following: formation of enduring relationships between contractors and the military, provision of opportunities for veterans to link with contractors, and provision of veteran-targeted training initiatives for veterans to acquire specific skills prior to leaving the military. Azhar et al.s (2014) research is a valuable contribution to workforce development in the construction industry. The study not only demonstrates the positive impact of veteran hiring on workforce development in the industry, but also offers recommendations for maximizing the partnership between the construction industry and the veteran population. Even so, there is need for more research to further validate the positive impact of hiring veterans on workforce development in the industry.
2.8 Chapter Summary
Overall, workforce development is an extensively researched area. Literature demonstrates that workforce development is instrumental for meeting the present and future needs of businesses and industries. One of the strategies stakeholders have resorted to in an effort to enhance workforce development is hiring veterans. Organizations, industries, and government agencies have acknowledged the value of veterans military experience to the private sector. In spit of this acknowledgement, little research has been conducted to demonstrate the impact of hiring veterans on workforce development. Scarcity of research is particularly true for the construction industry. Several initiatives have been launched by construction firms alongside the government and other stakeholders to take advantage of veteran talent, but it is not clear whether these initiatives have a positive impact on workforce development in the industry. This is a cause for concern given the critical role of the construction industry in the economy and its preference by veterans as a source of employment. Based on a qualitative approach, the present study sought to fill this gap in research by examining how hiring veterans can positively impact workforce development in the construction industry.
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
This chapter describes and justifies the methodology and procedures utilized to achieve the objectives of the study. The chapter first describes the research philosophy, research approach, and research design employed. Next, the target population, sampling strategies, the research instrument, validity and reliability concerns, as well as data collection and analysis procedures are identified. Finally, ethical concerns and limitations of the study are highlighted.
3.2 Research Philosophy
Also referred to as research paradigm, research philosophy denotes the set of principles, beliefs, and assumptions that inform scholarly inquiry (Bryman, 2008). Research philosophy dictates the approaches and procedures the researcher employs to conduct research. It determines the relationship between the researcher and the subjects and how the researcher interprets findings.
In general, research may be conducted within the positivist paradigm or the interpretivist paradigm. Under the positivist philosophy, knowledge is assumed to be external, universal, and generalizable (Bryman, 2008). The primary objective of positivist research is to examine relationships between two or more variables. The researcher achieves this by employing quantitative techniques such as experiments and surveys. Also, the researcher focuses on a large sample. A large sample enhances the generalizability of findings since the sample selected should typically be representative of the larger population under study. The character of positivist research has implications on the relationship between the researcher and the subjects (Saunders, Lewis and Thornhill, 2015). As the researcher seeks to understand relationships between variables, the researcher does not cultivate a close relationship with the subjects. It would even be quite difficult to forge such a relationship when focusing on a large number of subjects. A major demerit of positivist research is that it does not provide an in-depth understanding of the research phenomenon (Creswell, 2014).
In-depth inquiry is enabled by interpretivist research, which sees knowledge as subjective (Bryman, 2008). In other words, knowledge is not generalizable it is contextual, situational, or circumstantial. This means that different individuals interpret their world differently. To ensure in-depth inquiry, interpretivist research focuses on a small sample and employs qualitative techniques such as in-depth interviews, focus groups, and observations. Such techniques enable the researcher to cultivate a closer relationship with the subjects (Saunders, Lewis and Thornhill, 2015). A close relationship gives the researcher an opportunity to understand the perspectives, experiences, and worldviews of the subjects with respect to the research phenomenon (Creswell, 2014). This is one of the major advantages of interpretivist research. Nonetheless, interpretivist research can be costly and time consuming as it mainly relies on qualitative techniques. Additionally, due to the small sample used, generalizing the findings of interpretivist research beyond the subjects is often problematic.
For many researchers, choosing between the two philosophies can usually be difficult, especially due to the strengths and weaknesses of each philosophy (Bryman, 2008). Researchers often desire to achieve conclusions that are both generalizable and comprehensive. Nonetheless, reaching such conclusions can only be achieved by employing more than one paradigm in one study mixed methods research. All in all, research philosophy is largely dictated by the research question. The aim of the present research was to understand the positive impact hiring veterans can have on workforce development in the construction industry. Given the research aim, the interpretivist philosophy was deemed appropriate. Essentially, the research did not seek to examine causal relationships between veteran hiring and workforce development. Rather, the study sought to understand the perspectives of construction firms, learning institutions, and veterans with regard to the positive contributions hiring veterans can make to workforce development in the construction industry. This made the interpretivist paradigm more appropriate for the research.
3.3 Research Approach
Research approach may be either deductive or inductive. The deductive approach is mostly used in positivist or quantitative research (Saunders, Lewis and Thornhill, 2015). The approach involves starting with a hypothesis. The researcher develops the hypothesis based on extant literature or theory. Data is then collected to test the hypothesis. The findings obtained can then be used to make inferences about the larger population. The deductive approach is also known as the top-down approach (Bryman, 2008). The objective of deductive research is to examine causality. This means that the deductive approach would not be appropriate for the present study. As mentioned earlier, the research philosophy chosen dictates every other aspect of the study from research approach to data interpretation.
The inductive approach ideally resonates with the nature of the present study. Dissimilar to deductive research, inductive research starts with collecting data (Saunders, Lewis and Thornhill, 2015). The researcher then examines the data to develop a theory to explain the research phenomenon. Also referred to as the bottom-up approach, the inductive approach is mostly associated with qualitative research, though some qualitative studies may have aspects of the deductive approach (Bryman, 2008). The objective of inductive research is not to examine causality. Instead, inductive research seeks to explore a given research phenomenon in depth.
3.4 Research Design
Qualitative research may take one of the following designs: ethnography, phenomenology, action research, ground theory, and case study (Creswell, 2014). The aim of ethnographic research is to describe a groups cultural attributes. The researcher interacts with a given cultural group to observe, record, and analyze its cultural patterns. Phenomenological research seeks to examine the lived experiences of subjects. The researcher seeks to understand the meanings and perceptions subjects attach to the research phenomenon. Phenomenology is usually applied when little is known about the research area in question. Grounded theory involves collecting and analyzing data with the aim of developing a theory to account for the research phenomenon. In other words, the theory is grounded in the collected data. Action research largely involves advocacy. The findings of action research are aimed atsolving identified problems. Ethnography, phenomenology, action research, and grounded theory were not ideal for the present study.
Given the nature of the study, the case study design was deemed more appropriate. The purpose of case study research is to provide a detailed description of the experiences of an individual, a group, an organization, or a community (Saunders, Lewis and Thornhill, 2015). The researcher directly observes or interacts with the subject to understand their experiences. Case study research may also entail describing events and processes (Creswell, 2013). In other words, case study research does not necessarily have to be people-focused. The present study focuses on the construction industry. It is a case study of veteran hiring and workforce development in the construction industry. Though case study research may be costly and time consuming, it enables the researcher to gain a deeper understanding of the case study (Creswell, 2014).
3.5 Target Population and Sampling
The study focused on four groups. Group 1 comprised a private construction company. The company was selected using convenience sampling. Convenience sampling is a non-probability sampling approach that involves selecting subjects on the basis of their accessibility and proximity to the researcher (Denscombe, 2010). For the researcher, convenience sampling was especially important for minimizing data collection costs. Even so, selection bias is a major problem in convenience sampling (Kothari, 2004). Group 2 comprised a veteran-owned construction company. Many private construction firms work with veteran-owned subcontractors. This is enabled by government incentives that encourage private companies to hire veteran-owned subcontractors to perform a portion of the work. Subcontractors must be certified through the VA business model and must hire veterans.
Group 3 comprised an institution that offers education and training to veterans, while Group 4 targeted veterans working for a construction company. Convenience sampling was also used to locate participants for Group 2 and Group 3. For Group 4, however, snowball sampling was used. Snowball sampling entails recruiting future participants based on referrals from preceding participants (Saunders, Lewis and Thornhill, 2015). In other words, existing participants recommend their peers, friends, or acquaintances for future interviews. The sample builds up like a snowball, ultimately resulting in sufficient data for the study. In total, six participants were selected to participate in the study (one participant for Group 1, one participant for Group 2, one participant for Group 3, and three participants for Group 4). The table below summarizes the number and characteristics of participants in each group.
Group
Number of Participants
Description
Group 1
Representative of a private construction company
Group 2
Owner of a construction company
Group 3
Administrator at a higher learning institution offering training to veterans
Group 4
Veterans working in a construction company
3.6 Research Instrument
The research instrument is the tool the researcher uses to collect the required data (Bryman, 2008). In qualitative research, a number of techniques can be used to collect data: observations, focus group discussions, and interviews (Saunders, Lewis and Thornhill, 2015). Observation basically involves watching (unobtrusively) the subject in its real world setting. The researcher often takes field notes, photographs, and videos to document the observations made. This technique is mainly used when there is need for both oral and visual data. Focus group discussions are interviews the researcher holds with a small group of participants. This technique enables the researcher to collect information from several participants in a single session, thereby saving time. Observations and focus groups were not appropriate for the present study.
Interviews were deemed the most appropriate instrument for the research. Indeed, the use of interviews in qualitative research is widespread (Creswell, 2013). Interviews are necessary when there is need for one-on-one interaction between the researcher and the subjects, and for conducting in-depth interrogation. The researcher basically poses oral questions to the interviewee and gets oral responses. To obtain the required responses, the interviewer must create a warm atmosphere. Whereas interviews facilitate in-depth interrogation, a number of shortcomings are worth noting. First, arranging interviews can sometimes be difficult since the interviewer must slot the interview in a time that is convenient for the interviewee. Additionally, interviewees may keep on postponing interviews, consequently delaying data collection. Another disadvantage is that the interviewee may be controlling. In fact, a successful interview session calls for skill and experience (Saunders, Lewis and Thornhill, 2015). The researcher must retain control of the session. Also, the researcher must create rapport with the interviewee to ensure the interviewee shares their thoughts and feelings freely. Another challenge is that analyzing interview data can be a daunting endeavor as the researcher often has to listen repetitively to the recorded interviews or transcribe them.
There are two types of interviews: structured interviews and unstructured interviews (Kothari, 2004). Structured interviews are interviews with predetermined questions. Prior to the interview, researcher formulates the specific questions to pose to the interviewee. The questions are then arranged in the order they will be posed. This helps the interviewer to remain on topic throughout the interview session. An unstructured interview on the other hand is informal in nature there are no predetermined questions or a particular order of asking questions. In the present study, a structured interview was crucial. This ensured orderly interview sessions. More importantly, given the nature of the research topic, it was useful to have a predetermined set of questions focusing on specific themes such as veteran skills and veteran hiring techniques.
Interviews may be administered face-to-face or over the telephone (Denscombe, 2010). Telephone interviews minimize the time and costs associated with administering interviews as the interviewer or interviewee does not have to travel to the location of the interviewee or the interviewer. This is especially beneficial when there are…
How Veterans Can Make a Positive Impact on Workforce Development in the Construction Industry
ABSTRACT
The U.S. construction industry faces significant workforce development challenges, mostly in terms of labor shortage. Addressing this challenge is important for meeting the present and future needs of the industry. Hiring veterans is a valuable way through which the construction industry may overcome the workforce development challenges it faces. In spite of the several initiatives introduced by construction firms alongside the government and other stakeholders to take advantage of veteran talent, little research has been conducted to understand the impact of hiring veterans on workforce development in the construction industry. Based on in-depth interviews with six individuals and veterans in the construction industry, this study sought to understand the positive impact hiring veterans can have on workforce development in the construction industry as well as the challenges associated with hiring veterans. The six individuals included an executive at a private construction company, an owner of a construction company, an administrator at a higher learning institution offering training to veterans, and three veteran working in a construction company. According to the findings of the study, veterans possess unique skills and abilities that make them ideal for construction jobs: a strong work ethic, teamwork and leadership skills, organization and the ability to develop action plans, resilience and problem solving skills, and cross-cultural competence. These skills can be valuable for the construction industry given the significant workforce shortage it is experiencing. Furthermore, an increasingly large number of veterans retire every year, presenting a large pool from which construction firms can draw valuable talent. Acknowledging the value of veteran talent, construction firms, learning institutions, government agencies, and other stakeholders have already introduced wide-ranging initiatives to increase veterans access to employment opportunities in the construction industry. Even so, considerable challenges abound: difficulties in adjusting to civilian life on the part of veterans, difficulties in locating veterans on the part of employers, skill mismatch, and concerns over veteran redeployment in the future. Suggestions for addressing these challenges as well as implications for construction firms, learning institutions, and policymakers are discussed.
TABLE OF CONTENTS
ABSTRACT i
CHAPTER ONE: INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problem 5
1.3 Research Aim and Objectives 6
1.4 Significance of the Study 7
1.5 Organization of the Study 9
CHAPTER TWO: LITERATURE REVIEW 10
2.1 Introduction 10
2.2 Theoretical Background: What is Workforce Development? 10
2.3 Workforce Development Processes and Initiatives 13
2.4 Significance of Workforce Development 15
2.5 Veterans, Civilian Employment, and Workforce Development 16
2.6 Impact of Hiring Veterans on Workforce Development 18
2.6.1. Benefits for Employers 18
2.6.2 Talent, Skills, and Abilities 19
2.6.3 Empirical Evidence 22
2.6.4 Challenges of Hiring Veterans 23
2.7 Workforce Development and Hiring Veterans in the Construction Industry 25
2.8 Chapter Summary 27
CHAPTER THREE: RESEARCH METHODOLOGY 29
3.1 Introduction 29
3.2 Research Philosophy 29
3.3 Research Approach 31
3.4 Research Design 31
3.5 Target Population and Sampling 32
3.6 Research Instrument 34
3.7 Interview Questions 36
3.8 Validity and Reliability 39
3.9 Data Collection 40
3.10 Data Analysis 40
3.11 Ethical Issues 40
3.12 Limitations of the Study 41
CHAPTER FOUR: RESULTS AND DISCUSSION 41
4.1 Introduction 41
4.2 Description of Participants 42
4.3 Veteran Skills and Abilities Useful for the Construction Industry 43
4.3.1 Work Ethic 44
4.3.2 Teamwork and Leadership Skills 48
4.3.3 Organization and Ability to Follow Orders 53
4.3.4 Resilience and Problem Solving Skills 56
4.3.5 Cross-Cultural Exposure 58
4.4 Initiatives that Integrate Veterans into the Construction Industry 60
4.4.1 Construction Industry Initiatives 60
4.4.2 Learning Institutions Initiatives 66
4.4.3 Military-Led Initiatives and Other Initiatives 71
4.5 Impact of Hiring Veterans on Workforce Development in the Construction Industry 74
4.5.1 Veteran Talent and Transferability to the Construction Industry 74
4.5.2 Workforce Shortage and Veterans Preference for Construction Jobs 78
4.6 Challenges of Hiring Veterans and Implications on Workforce Development 83
4.6.1 Difficulties in Adjusting to the Civilian Workplace 83
4.6.2 Skill Mismatch and Lack of Industry Experience 87
4.6.3 Difficulties in Locating Veterans 90
4.6.4 Concerns over Redeployment 91
4.6.5 Other Challenges 92
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS 95
5.1 Summary and Conclusion 95
5.2 Strengths, Limitations, and Suggestions for Future Research 99
5.3 Practice and Policy Implications 100
5.3.1 Implications for the Construction Industry 100
5.3.2 Implications for Learning Institutions 103
5.3.3 Implications for Policymakers 104
REFERENCES 105
v
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
The importance of workforce development cannot be overemphasized. For any industry to thrive, it must have an adequate supply of a talented and qualified workforce (Uhalde, 2011). Workforce development is concerned with creating and maintaining such a workforce. It is a human resource (HR) function that focuses on addressing employment needs (Harris and Short, 2014). It encompasses identifying employment needs and skill gaps, filling the gaps, as well as preparing and training workers (U.S. Government Publishing Office, n.d). These efforts are aimed at improving employee performance, maintaining a productive workforce, and most importantly, adapting to change (Haralson, 2010). Without a productive workforce, organizations and industries may not effectively achieve their strategic goals and objectives. Indeed, a productive workforce is a crucial ingredient of organizational or industry success it is vital for remaining competitive in a constantly evolving environment.
The U.S. construction industry faces significant workforce development challenges. More specifically, the industry continues to grapple with considerable labor shortages, with the current supply of professionals and craft workers unable to meet the growing demand for labor in the industry (Azhar et al., 2014). The construction industry has experienced a boom since the 2008 economic recession, consequently increasing the demand for construction projects (Associated General Contractors of America [AGC], 2014). Nonetheless, according to a 2013 survey by AGC, most construction firms (nearly 75%) are finding it hard to recruit qualified workers to fulfill the demand for increased construction work (AGC, 2013). Construction firms are specifically unable to find qualified personnel to fill positions such as equipment operators, carpenters, engineers, estimators, and project supervisors. The survey further found that 65% of construction firms regarded the available craft workers as poorly qualified in terms of quality, skills, and productivity.
Other reports have reported similar findings. In 2010, an industry publication reported that 1.5 million additional workers would be required to the meet the demand for labor in the construction industry in 2014 (Groves, 2010). Today, the shortage is even severer. According to the 2016 National Association of Home Builders (NAHB) labor shortage survey, the percentage of construction firms facing serious labor shortages in 2016 stood at 56%, a significant increase from 21% in 2012 (Beyer, 2017).
The above reports point to worrying skill gaps in the construction industry. They highlight the widening break between the construction workforce and construction skills. Many young people are either not interested in pursuing construction careers or are not receiving adequate training to work in the construction industry (Azhar et al., 2014). This problem has been fueled by a combination of economic, education, demographic, and policy factors (AGC, 2014). The inadequacy of vocational and technical education programs, especially at the secondary school level, is a particularly important challenge. The U.S. once had comprehensive vocational programs in high schools. Today, however, such programs have declined, with most high schools shifting their focus to college preparatory program. The declining attention to vocational programs has in large part been caused by reduced federal funding. Between 2006 and 2014 alone, for instance, the federal budget for career and technical education programs reduced by nearly 30% (AGC, 2014). With funding cuts, many vocational programs struggle with resource constraints, especially given the costly equipment and materials needed to offer vocational training. The implication is that fewer young people are pursuing construction and other technical courses, making it difficult for construction firms to find skilled craft workers.
The problem has further been compounded by declining enrolment into union-based apprenticeship initiatives. Between 2008 and 2013, the proportion of construction employees preferring union representation decreased by 23% (AGC, 2014). This means that union-based apprenticeship programs are not as widely available as they were a couple of years ago. More regrettably, state and federal policies make the creation of similar apprenticeship programs by open-shop contractors difficult. As a result, many construction firms are reluctant to invest in workforce training, worrying that firms may poach their trained employees.
Demographic shifts have also contributed to labor shortage in the construction industry. During the 2008 economic recession, many construction workers left the industry mostly due to layoffs (Beyer, 2017). Unfortunately, a substantial portion of construction workers who left the industry are not interested in returning. Indeed, most of them have pursued advanced education, ventured into other careers, or even retired. Statistics indicate that the number of construction workers presently in search of employment declined from 2.2 million in 2010 to 1 million to 2014, representing a more than 50% decline in a period of less than 5 years (AGC, 2014). These workers would now be serving as truck drivers, equipment operators, engineers, and so forth. In the meantime, most immigrant workers returned to their home countries at the height of the recession, and many of them have not returned to the U.S. owing to, among other factors, better economic conditions in their country and more stringent immigration regulations in the U.S. States with higher immigrant populations such as California and Texas have particularly been hurt by immigration shifts given that 40% of their construction workforce are immigrants (Beyer, 2017).
The age of the average construction worker has also changed. Presently, approximately 44% of the workforce in the construction industry is aged 45 years or more (AGC, 2014). Further, 20% of the workforce is 55 years or order. This means that more than 1 million construction workers will retire in the next one decade, further widening labor shortage in the industry. This problem is likely to persist in the future if measures are not urgently undertaken to address it. In fact, finding qualified craft and professional workers for the construction industry is likely to be more difficult in the future. This poses a substantial threat to the industry, warranting the need to prepare the workforce for construction work in the future.
The need to address labor shortage in the construction industry particularly stems from the associated impacts. Indeed, labor shortage has had severe impacts on the industry. In NAHBs 2016 survey, 75% of construction firms reported that they have had to spend more on wages due to labor shortages (Beyer, 2017). Increased employee expenses have compelled construction firms to deliver projects at higher bids, meaning home and building prices are increasingly higher. Between 2012 and 2017, for instance, median home prices jumped from $151,000 to $196,500 (Beyer, 2017). Also, labor shortage in the construction industry has the potential to undermine the growth of the construction industry and the countrys economic growth at large. As construction firms continue experiencing labor shortages, they will be compelled to offer slower project schedules. For critical construction projects, slower schedules can not only result in client dissatisfaction, but also hinder the speed of economic and employment growth (AGC, 2014). In any case, dissimilar to other projects, construction projects cannot be off-shored they must be executed on-site.
Given the severe implications of workforce shortage, a workforce development plan for the construction industry is imperative. According to AGC (2014), a series of policy initiatives (at the local, state, and federal levels), in conjunction with the private sector, is vital for developing the construction workforce. The initiatives should focus on increasing construction-related training and development opportunities. More specifically, hiring veterans presents a viable solution for workforce development challenges in the construction industry. This is because of two major reasons. First, unemployment amongst veterans is approximately three percentage points higher compared to the general population, with Gulf War II veterans having the highest rate of unemployment (National Center for Veterans Analysis and Statistics, 2013). Unemployment among the veteran population is expected to be even higher in the future given that hundreds of thousands of service members are exiting the military every year, against the backdrop of Americas reduced defense spending and shifting defense strategies.
Most importantly, given the nature of their work, veterans have unique skills and capabilities that make them ideal for construction work (Starich, 2017). Part of military work involves construction tasks. For instance, many service members have direct experience in building or repairing bridges, airfields, and other types of structures. In addition to construction skills, service members are equipped with important leadership skills such as team building, organization, and team supervision. They are excellent team players, dependable, dedicated, goal-oriented, and disciplined. Also, veterans have an admirable work ethic as well as outstanding ability to meet deadlines, work under conditions of pressure, and solve problems. These skills are valuable for project-based tasks such as construction projects. Construction tasks can be daunting undertakings due to their inherent complexity. Thus, the familiarity of military members with complex situations makes them perfect candidates for construction jobs. Several organizations, including the construction industry, are increasingly acknowledging the value of hiring veterans (Harrell and Berglass, 2012). Nonetheless, many organizations remain quite unaware of how to get the most out of veterans.
1.2 Statement of Problem
Hiring veterans in the construction industry is not exactly a new idea. Indeed, there are several organizations that have been committed to connecting veterans with employment opportunities in the construction industry. Veterans Build America, V2C, VIP, Veterans in Construction Electrical (VICE), Build Your Future, Hire Our Heroes, and Helmets to Hardhats are ideal examples (Azhar et al., 2014). For instance, Helmets to Hardhats has been assisting veterans secure construction jobs since 2003. VIP, a much different program, not only helps veterans find employment opportunities in the construction industry, but also offers veterans free construction-related training.
In spite of the existence of programs for paring veterans with construction jobs, quantifying their efficacy remains difficult, in large part due to lack of research in this area. Additionally, most of these programs have experienced significant funding challenges, consequently undermining their effectiveness. As a result, it is not clear whether these programs are having any impact on workforce development in the construction industry. Very few studies have been carried out to determine the positive impact of hiring veterans on workforce development in the construction industry. This is quite surprising given the widespread shortage of labor in the idustry, the valuable skills veterans can offer to the industry, and the existence of programs aimed at pairing the veteran population with construction firms. The few studies that have been conducted in this area (e.g. Azhar et al., 2014) do not offer comprehensive findings. The studies also present methodological difficulties, hence the need for more research. The present research sought to fill this gap in research.
1.3 Research Aim and Objectives
The aim of the present study was to examine how the construction industry can benefit from veterans in terms of workforce development. The study specifically sought to achieve the following objectives:
1. To highlight the skills and abilities military veterans can bring to the construction industry.
2. To highlight efforts made by the government, learning institutions, and construction firms to ensure veterans are hired in the construction industry.
3. To demonstrate the impact of hiring veterans on workforce development in the construction industry.
4. To highlight the challenges of hiring veterans in the construction industry and the implications of those challenges on workforce development.
1.4 Significance of the Study
The present study has significant implications for the construction industry. Despite the widespread recognition that workforce shortage is a serious problem in the construction industry, the industry as a whole has done little to develop its workforce. This places the industry at a significant disadvantage considering that other industries are competing for the same scarce pool of professional and craft workers (Saxton, 2015). Time is ripe for the construction industry to pay greater attention to workforce development. Investing in workforce development is vital if the industry is to become the preferred industry for the millions of people looking for employment, especially veterans. By examining the positive impact of hiring veterans on workforce development, this study, therefore, offers useful insights for players in the construction industry. Construction firms and industry associations will gain invaluable knowledge on how to effectively tap into the skills and capabilities of discharged service members.
Taking advantage of veterans skills and abilities is especially vital for the construction industry. Statistics indicate that veterans are more likely to take up construction jobs compared to non-veterans (Manzo, Bruno and Duncan, 2016). Indeed, veterans tend to be disproportionately represented in the construction industry compared to non-veterans. This is particularly true in southern states, where the percentage of veterans in the construction workforce is as high as 14% compared to less than 8% for the share of veterans in the entire workforce. In essence, the construction industry is a major source of employment for veterans. Many veterans are attracted to the construction industry by their inability to pursue a college degree. Accordingly, players in the construction industry ought to be fully cognizant of the benefits they can gain from hiring veterans.
Additionally, the study provides the business case for hiring veterans. Whereas business organizations actively support veterans, most of them in practice add veterans to their workforce only if they perceive it to be beneficial for business (Harrell and Berglass, 2012). This is not quite surprising since any profit-oriented business prioritizes profitability over anything else. If business organizations clearly see the business case for hiring veterans, they are likely to hire veterans (Haynie, 2016). This study justifies the business case for hiring veterans in the construction industry.
The study has far-reaching implications for not only the construction industry, but also the government and policy makers. The construction industry occupies an important position in the U.S. economy, accounting for approximately 4% of the countrys total GDP. More importantly, the industry is one of the fastest growing industries in the U.S. in terms of output and employment (Saxton, 2015), with annual growth exceeding 12% as of 2014 (Manzo, Bruno and Duncan, 2016). The growth of the industry, however, is threatened by workforce shortage. The present study has immense potential to influence policies and initiatives that favor the construction industry. The study can serve as a basis for the government to work together with the construction industry and the private sector at large to integrate the hundreds of thousands of veterans exiting service every year into the construction industry. For the government, integrating veterans into civilian employment is a priority.
Government and private sector efforts to address unemployment among veterans are crucial for enhancing the welfare of veterans. Veterans are an especially vulnerable group due to combat-related stress (Harrell and Berglass, 2012). This stress may be compounded by financial difficulties and other challenges specific to veterans such as physical health complications, homelessness, marital problems, and interpersonal difficulties (Berglass and Harrell, 2012). By highlighting the positive impact of veterans on workforce development in the construction industry, this study, therefore, adds weight to the perennial problem of veteran wellbeing.
1.5 Organization of the Study
The remainder of the paper is organized as follows. Chapter 2 provides an extensive review of literature on workforce development, veterans and civilian employment, as well as the impact of hiring veterans on workforce development in general and specifically in the construction industry. Chapter 3 describes and justifies the methods and procedures that were employed to achieve the objectives of the study. Chapter 4 presents the findings of the study and offers an interpretation of the findings. Chapter 5 summarizes the study, ultimately summarizing the study and highlighting recommendations for practice, policy, and research.
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
The aim of the present study was to examine the positive impact hiring veterans can have on workforce development in the construction industry. This chapter provides a comprehensive review of extant literature on the topic. First, the theoretical background of the study is provided, clearly defining the concept of workforce development and describing the importance of workforce development. Next, attention is paid to the participation of veterans in civilian employment, initiatives undertaken to increase veteran employment, and the contribution of veterans to workforce development, especially in terms skills, abilities, and experience. The review also focuses on the involvement of veterans in the construction industry. Finally, a summary of the review is offered, identifying gaps in research and highlighting the focus of the present study.
2.2 Theoretical Background: What is Workforce Development?
There is no universally applicable definition of the concept of workforce development. Nevertheless, the concept essentially denotes the process of training and preparing workers for jobs in an increasingly complex world (Harris and Short, 2014). The U.S. Government Publishing Office (n.d.) offers a much broader definition of workforce development: a host of efforts, policies, processes, and activities undertaken to develop a productive workforce, identify and address future workplace needs, and equip workers with the skills and competencies needed to effectively fulfill their roles and responsibilities at the workplace. For Haralson (2010), workforce development refers to a wide range of activities, policies and programs employed by geographies to create, sustain and retain a viable workforce that can support current and future business and industry. This definition suggests that workforce development is not a single program it encompasses interconected solutions aimed at addressing employment needs.
Instead of focusing on businesses, workforce development focuses on people. It is a human resource strategy concerned with enhancing human capital (Harris and Short, 2014). Accordingly, workforce development can also be referred to as human resource development. Nonetheless, this does not necessarily mean that the terms workforce development and human resource management can be used interchangeably. It is important to note that workforce development entails not only building the skills of the workforce, but also establishing systems for matching employers with job seekers (Haralson, 2010). This aspect of workforce development dominates the focus of this study. At any given time, there are millions of individuals without jobs, in large part due to the scarcity of jobs and lack of skills. Workforce development initiatives are important for linking these individuals with relevant job opportunities. Thus, workforce development serves two purposes at the same time. On one hand, it enables individuals to have skills, knowledge, and attributes that match the needs of the workplace and the economy at large. On the other hand, workforce development offers employers a mechanism to convey and fill their demand for skills.
The concept of workforce development is anchored in several theories, including management theory, learning theory, psychology, sociology, lifelong learning, organizational behavior, and economic theory. The concept is not quite new it was first mentioned in the mid 1990s by Harrison, Weiss and Gant (1995) (cited in Comyn, 2008). Harrison and associates sought to distinguish between employment training and workforce development. While employment training pays attention to the supply of skills (supply side), workforce development places emphasis on the needs of the employer (demand side). Accordingly, the workforce development approach is a better approach for developing human capital. This is especially because workforce development goes beyond training to include processes and activities such as collaboration, mentoring, job matching, and employee retention (OLawrence, 2016).
There are two major forms of workforce development: place-based workforce development and sector-based workforce development (Harris and Short, 2014). The first form involves improving the skills and competencies of the workforce in a given location e.g. a neighborhood, county, state, country or region. Place-based workforce development strategies focus on the supply side. The second form denotes efforts undertaken at the sector or industry level. In this form, initiatives are undertaken to match the workforce with industry needs. Dissimilar to place-based workforce development, sector-based workforce development pays attention to the demand side. Irrespective of the form, workforce development is undertaken to adapt to environmental changes (OLawrence, 2016).
As per human capital theory, the concept of workforce development has a much wider scope than just skills development or technical expertise (Leggett, 2013). Workforce development also involves building the social abilities and traits desired by the typical employer. For instance, employers prefer candidates with not only subject matter expertise or knowledge, but also excellent interpersonal, communication, teamwork, problem solving, and leadership skills. They desire individuals with proven integrity, ethical conduct, professionalism, diligence, flexibility, resilience, reliability, and self-direction (Duerden et al., 2014). This expanded scope means that workforce development is concerned with not only achieving full employment, but also enhancing employability. Employability means that an individual possesses the education and skills needed to effectively fulfill a given role in the workplace. Regrettably, many employers are increasingly concerned that most job candidates lack sufficient employability, underscoring the need for greater attention to workforce development (Uhalde, 2011).
2.3 Workforce Development Processes and Initiatives
From the above definition, workforce development entails numerous processes and activities e.g. education, vocational and career-oriented training, pre-employment preparation, mentoring, and increasing access to educational and career opportunities (Harris and Short, 2014; OLawrence, 2016). These activities involve several stakeholders, including the national government, state governments, non-governmental organizations, learning institutions, and the private sector. Indeed, according to Haralson (2010), workforce development encompasses the administration and coordination public- and private-sector initiatives, programs, and policies with the aim of empowering individuals to earn a livelihood as well as helping organizations achieve their goals and objectives.
At the national level, the U.S. government is actively involved in promoting science, math, and engineering courses in high school and higher learning institutions through funding and legislative initiatives as well as partnerships with non-government stakeholders (Uhalde, 2011). The ultimate objective of such initiatives is to develop a workforce that can sustain technical jobs. State government governments are also involved in workforce development. In Tennessee, for example, the state government administers a workforce development program the Highlands Economic Partnership that brings together firms, educational institutions, and the regional chamber of commerce (Elkins et al., 2016). The initiative seeks to align curricula with industry needs, develop workforce skills, and connect jobseekers with employment needs. Public-sector workforce development efforts not only serve business and industry needs, but also contribute to the achievement of state and national economic growth goals (Haralson, 2010).
At the private sector level, corporate organizations participate in workforce development through recruitment, on-the-job training, team development, mentoring, coaching, and talent management processes (Leggett, 2013). These processes are imperative for attracting and retaining a qualified pool of talent. They facilitate positive employee outcomes such as organizational commitment, loyalty, job satisfaction, and retention. A group of organizations may also join to foster workforce development. Such collaborations are especially widespread at the industry level (Uhalde, 2011). Through industry associations, organizations in the same industry initiate programs to promote and sponsor professional development, industry-specific skills training, and employment growth (Haralson, 2010). Industry partnerships enable organizations to address shared problems collectively. For instance, organizations in the construction industry may join efforts to deal with workforce shortage and employee retention issues. Corporate-level workforce development may also be specific to professions (Uhalde, 2011). For instance, there are initiatives specifically targeted at finance, project management, legal, and engineering professions.
Higher learning institutions participate in workforce development by equipping the workforce with subject matter knowledge as well as job skills (Hordern, 2013). In Washington, DC, for instance, the University of the District of Columbia Community College provides residents with free skills training through an initiative dubbed Workforce Development and Lifelong Learning Program (Leer and Ivanov, 2014). Predominantly targeting low-income minority groups, the program was introduced in 2006 to offer free courses relating to four career paths: hospitality, construction, technology, and healthcare. Many other higher learning institutions throughout the country also make significant contributions to workforce development.
Given the multiplicity of dimensions involved, workforce development is quite difficult to achieve without stakeholder partnerships. Indeed, most workforce development effrts involve government agencies, non-governmental agencies, learning institutions, and the private sector (Uhalde, 2011). In the U.S., stakeholder partnerships have played a crucial role in advancing workforce development. The U.S. Council on Competitiveness is an ideal example (Elkins et al., 2016). The council is an initiative that brings together business organizations, universities, and labor organizations to enhance workforce development. The initiative specifically seeks to improve access to high quality education, create jobs, reduce unemployment, advocate for increased investment into science and technology by the federal government, and to boost U.S.s competitiveness in the global economy. Stakeholder partnerships provide synergy and collaboration, making workforce development easier to achieve (Harris and Short, 2014). In addition to corporate-level, regional, and national initiatives, there are worldwide workforce development initiatives (Leer and Ivanov, 2014). The above are just a few examples of the several initiatives undertaken by governments, non-governmental agencies, learning institutions, and the private sector to develop the workforce.
2.4 Significance of Workforce Development
Workforce development is a crucial ingredient of economic growth and development (Elkins et al., 2016). Whether at the organizational, industry, local, national, regional, or global level, workforce development plays a crucial role in economic prosperity. Haralson (2010) terms workforce development as an essential component of community economic development in any economic climate. Workforce development is even more important in todays increasingly knowledge-based economy. Organizations, industries, and countries need an educated and competent workforce to effectively achieve their goals and objectives, and to be competitive in the domestic and international marketplace (OLawrence, 2016). A skilled workforce drives innovation, productivity, and business growth, hence enabling an industry or economy to successfully fulfill its needs (Uhalde, 2011).
For business organizations, workforce development is vital for fulfilling workplace demands (Bell et al., 2014). In the contemporary world, organizations grapple with increased environmental uncertainty and greater task complexity. This can be attributed to, among other factors, globalization, technological advancement, political reforms, demographic changes, and socioeconomic shifts. Recruiting and maintaining an adequate workforce with the relevant skills, knowledge, experience, competencies, and abilities is vital for survival in such an environment (Duerden et al., 2014). Essentially, lack of a skilled workforce threatens the existence of organizations in the future. Industries without adequate talent are prone to unnecessarily high labor costs and the inability to achieve their strategic goals and objectives.
2.5 Veterans, Civilian Employment, and Workforce Development
Several organizations and industries are turning to veterans in an effort to develop their workforce. It is important to understand who a veteran is prior to proceeding further. Title 38 U.S.C. 101 defines a veteran as a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable (Harrell and Berglass, 2012: 7). For purposes of this study, a veteran denotes an individual who was in active service in any position in one or more of the many components of the military (Air Force, Navy, Army, Coast Guard, Marines, National Guard, or Reserve), and was discharged honorably. This clarification is important given the shifting character of U.S.s defense strategy. In the wake of military downsizing, the U.S. is increasingly relying on private contractors for military operations. These individuals are not considered as veterans in this study.
Once discharged from active duty, veterans have to adjust to civilian life. Part of this integration encompasses finding a source of income. For many veterans, however, finding employment can be a difficult undertaking due to factors such as the unwillingness of employers to hire veterans (Berglass and Harrell, 2012). A number of government-led initiatives have been introduced to address this problem. For instance, Congress, in partnership with the executive, passed the Veterans Opportunity to Work (VOW) to Hire Heroes Act in 2011 (Harrell and Berglass, 2012). The legislation offers incentives (e.g. tax credits and training assistance) for the private sector to hire veterans. Government agencies, especially the Department of Defense (DOD), the Department of Veterans Affairs (VA), the Department of Labor (DOL), and the Department of Homeland Security (DHS), have also introduced offline and online initiatives to increase employment among veterans. These initiatives focus on…
How Veterans Can Make a Positive Impact on Workforce Development in the Construction Industry
ABSTRACT
The U.S. construction industry faces significant workforce development challenges, mostly in terms of labor shortage. Addressing this challenge is important for meeting the present and future needs of the industry. Hiring veterans is a valuable way through which the construction industry may overcome the workforce development challenges it faces. In spite of the several initiatives introduced by construction firms alongside the government and other stakeholders to take advantage of veteran talent, little research has been conducted to understand the impact of hiring veterans on workforce development in the construction industry. Based on in-depth interviews with six individuals and veterans in the construction industry, this study sought to understand the positive impact hiring veterans can have on workforce development in the construction industry as well as the challenges associated with hiring veterans. The six individuals included an executive at a private construction company, an owner of a construction company, an administrator at a higher learning institution offering training to veterans, and three veterans working in a construction company. According to the findings of the study, veterans possess unique skills and abilities that make them ideal for construction jobs: a strong work ethic, teamwork and leadership skills, organization and the ability to develop action plans, resilience and problem solving skills, and cross-cultural competence. These skills can be valuable for the construction industry given the significant workforce shortage it is experiencing. Furthermore, an increasingly large number of veterans retire every year, presenting a large pool from which construction firms can draw valuable talent. Acknowledging the value of veteran talent, construction firms, learning institutions, government agencies, and other stakeholders have already introduced wide-ranging initiatives to increase veterans access to employment opportunities in the construction industry. Even so, considerable challenges abound: difficulties in adjusting to civilian life on the part of veterans, difficulties in locating veterans on the part of employers, skill mismatch, and concerns over veteran redeployment in the future. Suggestions for addressing these challenges as well as implications for construction firms, learning institutions, and policymakers are discussed.
TABLE OF CONTENTS
ABSTRACT i
CHAPTER ONE: INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problem 5
1.3 Research Aim and Objectives 6
1.4 Significance of the Study 7
1.5 Organization of the Study 9
CHAPTER TWO: LITERATURE REVIEW 10
2.1 Introduction 10
2.2 Theoretical Background: What is Workforce Development? 10
2.3 Workforce Development Processes and Initiatives 13
2.4 Significance of Workforce Development 15
2.5 Veterans, Civilian Employment, and WorkforceDevelopment 16
2.6 Impact of Hiring Veterans on Workforce Development 18
2.6.1. Benefits for Employers 18
2.6.2 Talent, Skills, and Abilities 19
2.6.3 Empirical Evidence 22
2.6.4 Challenges of Hiring Veterans 23
2.7 Workforce Development and Hiring Veterans in the Construction Industry 25
2.8 Chapter Summary 27
CHAPTER THREE: RESEARCH METHODOLOGY 29
3.1 Introduction 29
3.2 Research Philosophy 29
3.3 Research Approach 31
3.4 Research Design 31
3.5 Target Population and Sampling 32
3.6 Research Instrument 34
3.7 Interview Questions 36
3.8 Validity and Reliability 39
3.9 Data Collection 40
3.10 Data Analysis 40
3.11 Ethical Issues 40
3.12 Limitations of the Study 41
CHAPTER FOUR: RESULTS AND DISCUSSION 41
4.1 Introduction 41
4.2 Description of Participants 42
4.3 Veteran Skills and Abilities Useful for the Construction Industry 43
4.3.1 Work Ethic 44
4.3.2 Teamwork and Leadership Skills 48
4.3.3 Organization and Ability to Follow Orders 53
4.3.4 Resilience and Problem Solving Skills 56
4.3.5 Cross-Cultural Exposure 58
4.4 Initiatives that Integrate Veterans into the Construction Industry 60
4.4.1 Construction Industry Initiatives 60
4.4.2 Learning Institutions Initiatives 66
4.4.3 Military-Led Initiatives and Other Initiatives 71
4.5 Impact of Hiring Veterans on Workforce Development in the Construction Industry 74
4.5.1 Veteran Talent and Transferability to the Construction Industry 74
4.5.2 Workforce Shortage and Veterans Preference for Construction Jobs 78
4.6 Challenges of Hiring Veterans and Implications on Workforce Development 83
4.6.1 Difficulties in Adjusting to the Civilian Workplace 83
4.6.2 Skill Mismatch and Lack of Industry Experience 87
4.6.3 Difficulties in Locating Veterans 90
4.6.4 Concerns over Redeployment 91
4.6.5 Other Challenges 92
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS 95
5.1 Summary and Conclusion 95
5.2 Strengths, Limitations, and Suggestions for Future Research 99
5.3 Practice and Policy Implications 100
5.3.1 Implications for the Construction Industry 100
5.3.2 Implications for Learning Institutions 103
5.3.3 Implications for Policymakers 104
REFERENCES 105
v
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
The importance of workforce development cannot be overemphasized. For any industry to thrive, it must have an adequate supply of a talented and qualified workforce (Uhalde, 2011). Workforce development is concerned with creating and maintaining such a workforce. It is a human resource (HR) function that focuses on addressing employment needs (Harris and Short, 2014). It encompasses identifying employment needs and skill gaps, filling the gaps, as well as preparing and training workers (U.S. Government Publishing Office, n.d). These efforts are aimed at improving employee performance, maintaining a productive workforce, and most importantly, adapting to change (Haralson, 2010). Without a productive workforce, organizations and industries may not effectively achieve their strategic goals and objectives. Indeed, a productive workforce is a crucial ingredient of organizational or industry success it is vital for remaining competitive in a constantly evolving environment.
The U.S. construction industry faces significant workforce development challenges. More specifically, the industry continues to grapple with considerable labor shortages, with the current supply of professionals and craft workers unable to meet the growing demand for labor in the industry (Azhar et al., 2014). The construction industry has experienced a boom since the 2008 economic recession, consequently increasing the demand for construction projects (Associated General Contractors of America [AGC], 2014). Nonetheless, according to a 2013 survey by AGC, most construction firms (nearly 75%) are finding it hard to recruit qualified workers to fulfill the demand for increased construction work (AGC, 2013). Construction firms are specifically unable to find qualified personnel to fill positions such as equipment operators, carpenters, engineers, estimators, and project supervisors. The survey further found that 65% of construction firms regarded the available craft workers as poorly qualified in terms of quality, skills, and productivity.
Other reports have reported similar findings. In 2010, an industry publication reported that 1.5 million additional workers would be required to the meet the demand for labor in the construction industry in 2014 (Groves, 2010). Today, the shortage is even severer. According to the 2016 National Association of Home Builders (NAHB) labor shortage survey, the percentage of construction firms facing serious labor shortages in 2016 stood at 56%, a significant increase from 21% in 2012 (Beyer, 2017).
The above reports point to worrying skill gaps in the construction industry. They highlight the widening break between the construction workforce and construction skills. Many young people are either not interested in pursuing construction careers or are not receiving adequate training to work in the construction industry (Azhar et al., 2014). This problem has been fueled by a combination of economic, education, demographic, and policy factors (AGC, 2014). The inadequacy of vocational and technical education programs, especially at the secondary school level, is a particularly important challenge. The U.S. once had comprehensive vocational programs in high schools. Today, however, such programs have declined, with most high schools shifting their focus to college preparatory programs. The declining attention to vocational programs has in large part been caused by reduced federal funding. Between 2006 and 2014 alone, for instance, the federal budget for career and technical education programs reduced by nearly 30% (AGC, 2014). With funding cuts, many vocational programs struggle with resource constraints, especially given the costly equipment and materials needed to offer vocational training. The implication is that fewer young people are pursuing construction and other technical courses, making it difficult for construction firms to find skilled craft workers.
The problem has further been compounded by declining enrolment into union-based apprenticeship initiatives. Between 2008 and 2013, the proportion of construction employees preferring union representation decreased by 23% (AGC, 2014). This means that union-based apprenticeship programs are not as widely available as they were a couple of years ago. More regrettably, state and federal policies make the creation of similar apprenticeship programs by open-shop contractors difficult. As a result, many construction firms are reluctant to invest in workforce training, worrying that firms may poach their trained employees.
Demographic shifts have also contributed to labor shortage in the construction industry. During the 2008 economic recession, many construction workers left the industry mostly due to layoffs (Beyer, 2017). Unfortunately, a substantial portion of construction workers who left the industry are not interested in returning. Indeed, most of them have pursued advanced education, ventured into other careers, or even retired. Statistics indicate that the number of construction workers presently in search of employment declined from 2.2 million in 2010 to 1 million to 2014, representing a more than 50% decline in a period of less than 5 years (AGC, 2014). These workers would now be servin as truck drivers, equipment operators, engineers, and so forth. In the meantime, most immigrant workers returned to their home countries at the height of the recession, and many of them have not returned to the U.S. owing to, among other factors, better economic conditions in their country and more stringent immigration regulations in the U.S. States with higher immigrant populations such as California and Texas have particularly been hurt by immigration shifts given that 40% of their construction workforce are immigrants (Beyer, 2017).
The age of the average construction worker has also changed. Presently, approximately 44% of the workforce in the construction industry is aged 45 years or more (AGC, 2014). Further, 20% of the workforce is 55 years or order. This means that more than 1 million construction workers will retire in the next one decade, further widening labor shortage in the industry. This problem is likely to persist in the future if measures are not urgently undertaken to address it. In fact, finding qualified craft and professional workers for the construction industry is likely to be more difficult in the future. This poses a substantial threat to the industry, warranting the need to prepare the workforce for construction work in the future.
The need to address labor shortage in the construction industry particularly stems from the associated impacts. Indeed, labor shortage has had severe impacts on the industry. In NAHBs 2016 survey, 75% of construction firms reported tha.......nses have compelled construction firms to deliver projects at higher bids, meaning home and building prices are increasingly higher. Between 2012 and 2017, for instance, median home prices jumped from $151,000 to $196,500 (Beyer, 2017). Also, labor shortage in the construction industry has the potential to undermine the growth of the construction industry and the countrys economic growth at large. As construction firms continue experiencing labor shortages, they will be compelled to offer slower project schedules. For critical construction projects, slower schedules can not only result in client dissatisfaction, but also hinder the speed of economic and employment growth (AGC, 2014). In any case, dissimilar to other projects, construction projects cannot be off-shored they must be executed on-site.
Given the severe implications of workforce shortage, a workforce development plan for the construction industry is imperative. According to AGC (2014), a series of policy initiatives (at the local, state, and federal levels), in conjunction with the private sector, is vital for developing the construction workforce. The initiatives should focus on increasing construction-related training and development opportunities. More specifically, hiring veterans presents a viable solution for workforce development challenges in the construction industry. This is because of two major reasons. First, unemployment amongst veterans is approximately three percentage points higher compared to the general population, with Gulf War II veterans having the highest rate of unemployment (National Center for Veterans Analysis and Statistics, 2013). Unemployment among the veteran population is expected to be even higher in the future given that hundreds of thousands of service members are exiting the military every year, against the backdrop of Americas reduced defense spending and shifting defense strategies.
Most importantly, given the nature of their work, veterans have unique skills and capabilities that make them ideal for construction work (Starich, 2017). Part of military work involves construction tasks. For instance, many service members have direct experience in building or repairing bridges, airfields, and other types of structures. In addition to construction skills, service members are equipped with important leadership skills such as team building, organization, and team supervision. They are excellent team players, dependable, dedicated, goal-oriented, and disciplined. Also, veterans have an admirable work ethic as well as outstanding ability to meet deadlines, work under conditions of pressure, and solve problems. These skills are valuable for project-based tasks such as construction projects. Construction tasks can be daunting undertakings due to their inherent complexity. Thus, the familiarity of military members with complex situations makes them perfect candidates for construction jobs. Several organizations, including the construction industry, are increasingly acknowledging the value of hiring veterans (Harrell and Berglass, 2012). Nonetheless, many organizations remain quite unaware of how to get the most out of veterans.
1.2 Statement of Problem
Hiring veterans in the construction industry is not exactly a new idea. Indeed, there are several organizations that have been committed to connecting veterans with employment opportunities in the construction industry. Veterans Build America, V2C, VIP, Veterans in Construction Electrical (VICE), Build Your Future, Hire Our Heroes, and Helmets to Hardhats are ideal examples (Azhar et al., 2014). For instance, Helmets to Hardhats has been assisting veterans secure construction jobs since 2003. VIP, a much different program, not only helps veterans find employment opportunities in the construction industry, but also offers veterans free construction-related training.
In spite of the existence of programs for paring veterans with construction jobs, quantifying their efficacy remains difficult, in large part due to lack of research in this area. Additionally, most of these programs have experienced significant funding challenges, consequently undermining their effectiveness. As a result, it is not clear whether these programs are having any impact on workforce development in the construction industry. Very few studies have been carried out to determine the positive impact of hiring veterans on workforce development in the construction industry. This is quite surprising given the widespread shortage of labor in the industry, the valuable skills veterans can offer to the industry, and the existence of programs aimed at pairing the veteran population with construction firms. The few studies that have been conducted in this area (e.g. Azhar et al., 2014) do not offer comprehensive findings. The studies also present methodological difficulties, hence the need for more research. The present research sought to fill this gap in research.
1.3 Research Aim and Objectives
The aim of the present study was to examine how the construction industry can benefit from veterans in terms of workforce development. The study specifically sought to achieve the following objectives:
1. To highlight the skills and abilities military veterans can bring to the construction industry.
2. To highlight efforts made by the government, learning institutions, and construction firms to ensure veterans are hired in the construction industry.
3. To demonstrate the impact of hiring veterans on workforce development in the construction industry.
4. To highlight the challenges of hiring veterans in the construction industry and the implications of those challenges on workforce development.
1.4 Significance of the Study
The present study has significant implications for the construction industry. Despite the widespread recognition that workforce shortage is a serious problem in the construction industry, the industry as a whole has done little to develop its workforce. This places the industry at a significant disadvantage considering that other industries are competing for the same scarce pool of professional and craft workers (Saxton, 2015). Time is ripe for the construction industry to pay greater attention to workforce development. Investing in workforce development is vital if the industry is to become the preferred industry for the millions of people looking for employment, especially veterans. By examiningthe positive impact of hiring veterans on workforce development, this study, therefore, offers useful insights for players in the construction industry. Construction firms and industry associations will gain invaluable knowledge on how to effectively tap into the skills and capabilities of discharged service members.
Taking advantage of veterans skills and abilities is especially vital for the construction industry. Statistics indicate that veterans are more likely to take up construction jobs compared to non-veterans (Manzo, Bruno and Duncan, 2016). Indeed, veterans tend to be disproportionately represented in the construction industry compared to non-veterans. This is particularly true in southern states, where the percentage of veterans in the construction workforce is as high as 14% compared to less than 8% for the share of veterans in the entire workforce. In essence, the construction industry is a major source of employment for veterans. Many veterans are attracted to the construction industry by their inability to pursue a college degree. Accordingly, players in the construction industry ought to be fully cognizant of the benefits they can gain from hiring veterans.
Additionally, the study provides the business case for hiring veterans. Whereas business organizations actively support veterans, most of them in practice add veterans to their workforce only if they perceive it to be beneficial for business (Harrell and Berglass, 2012). This is not quite surprising since any profit-oriented business prioritizes profitability over anything else. If business organizations clearly see the business case for hiring veterans, they are likely to hire veterans (Haynie, 2016). This study justifies the business case for hiring veterans in the construction industry.
The study has far-reaching implications for not only the construction industry, but also the government and policy makers. The construction industry occupies an important position in the U.S. economy, accounting for approximately 4% of the countrys total GDP. More importantly, the industry is one of the fastest growing industries in the U.S. in terms of output and employment (Saxton, 2015), with annual growth exceeding 12% as of 2014 (Manzo, Bruno and Duncan, 2016). The growth of the industry, however, is threatened by workforce shortage. The present study has immense potential to influence policies and initiatives that favor the construction industry. The study can serve as a basis for the government to work together with the construction industry and the private sector at large to integrate the hundreds of thousands of veterans exiting service every year into the construction industry. For the government, integrating veterans into civilian employment is a priority.
Government and private sector efforts to address unemployment among veterans are crucial for enhancing the welfare of veterans. Veterans are an especially vulnerable group due to combat-related stress (Harrell and Berglass, 2012). This stress may be compounded by financial difficulties and other challenges specific to veterans such as physical health complications, homelessness, marital problems, and interpersonal difficulties (Berglass and Harrell, 2012). By highlighting the positive impact of veterans on workforce development in the construction industry, this study, therefore, adds weight to the perennial problem of veteran wellbeing.
1.5 Organization of the Study
The remainder of the paper is organized as follows. Chapter 2 provides an extensive review of literature on workforce development, veterans and civilian employment, as well as the impact of hiring veterans on workforce development in general and specifically in the construction industry. Chapter 3 describes and justifies the methods and procedures that were employed to achieve the objectives of the study. Chapter 4 presents the findings of the study and offers an interpretation of the findings. Chapter 5 summarizes the study, ultimately summarizing the study and highlighting recommendations for practice, policy, and research.
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
The aim of the present study was to examine the positive impact hiring veterans can have on workforce development in the construction industry. This chapter provides a comprehensive review of extant literature on the topic. First, the theoretical background of the study is provided, clearly defining the concept of workforce development and describing the importance of workforce development. Next, attention is paid to the participation of veterans in civilian employment, initiatives undertaken to increase veteran employment, and the contribution of veterans to workforce development, especially in terms skills, abilities, and experience. The review also focuses on the involvement of veterans in the construction industry. Finally, a summary of the review is offered, identifying gaps in research and highlighting the focus of the present study.
2.2 Theoretical Background: What is Workforce Development?
There is no universally applicable definition of the concept of workforce development. Nevertheless, the concept essentially denotes the process of training and preparing workers for jobs in an increasingly complex world (Harris and Short, 2014). The U.S. Government Publishing Office (n.d.) offers a much broader definition of workforce development: a host of efforts, policies, processes, and activities undertaken to develop a productive workforce, identify and address future workplace needs, and equip workers with the skills and competencies needed to effectively fulfill their roles and responsibilities at the workplace. For Haralson (2010), workforce development refers to a wide range of activities, policies and programs employed by geographies to create, sustain and retain a viable workforce that can support current and future business and industry. This definition suggests that workforce development is not a single program it encompasses interconnected solutions aimed at addressing employment needs.
Instead of focusing on businesses, workforce development focuses on people. It is a human resource strategy concerned with enhancing human capital (Harris and Short, 2014). Accordingly, workforce development can also be referred to as human resource development. Nonetheless, this does not necessarily mean that the terms workforce development and human resource management can be used interchangeably. It is important to note that workforce development entails not only building the skills of the workforce, but also establishing systems for matching employers with job seekers (Haralson, 2010). This aspect of workforce development dominates the focus of this study. At any given time, there are millions of individuals without jobs, in large part due to the scarcity of jobs and lack of skills. Workforce development initiatives are important for linking these individuals with relevant job opportunities. Thus, workforce development serves two purposes at the same time. On one hand, it enables individuals to have skills, knowledge, and attributes that match the needs of the workplace and the economy at large. On the other hand, workforce development offers employers a mechanism to convey and fill their demand for skills.
The concept of workforce development is anchored in several theories, including management theory, learning theory, psychology, sociology, lifelong learning, organizational behavior, and economic theory. The concept is not quite new it was first mentioned in the mid 1990s by Harrison, Weiss and Gant (1995) (cited in Comyn, 2008). Harrison and associates sought to distinguish between employment training and workforce development. While employment training pays attention to the supply of skills (supply side), workforce development places emphasis on the needs of the employer (demand side). Accordingly, the workforce development approach is a better approach for develoing human capital. This is especially because workforce development goes beyond training to include processes and activities such as collaboration, mentoring, job matching, and employee retention (OLawrence, 2016).
There are two major forms of workforce development: place-based workforce development and sector-based workforce development (Harris and Short, 2014). The first form involves improving the skills and competencies of the workforce in a given location e.g. a neighborhood, county, state, country or region. Place-based workforce development strategies focus on the supply side. The second form denotes efforts undertaken at the sector or industry level. In this form, initiatives are undertaken to match the workforce with industry needs. Dissimilar to place-based workforce development, sector-based workforce development pays attention to the demand side. Irrespective of the form, workforce development is undertaken to adapt to environmental changes (OLawrence, 2016).
As per human capital theory, the concept of workforce development has a much wider scope than just skills development or technical expertise (Leggett, 2013). Workforce development also involves building the social abilities and traits desired by the typical employer. For instance, employers prefer candidates with not only subject matter expertise or knowledge, but also excellent interpersonal, communication, teamwork, problem solving, and leadership skills. They desire individuals with proven integrity, ethical conduct, professionalism, diligence, flexibility, resilience, reliability, and self-direction (Duerden et al., 2014). This expanded scope means that workforce development is concerned with not only achieving full employment, but also enhancing employability. Employability means that an individual possesses the education and skills needed to effectively fulfill a given role in the workplace. Regrettably, many employers are increasingly concerned that most job candidates lack sufficient employability, underscoring the need for greater attention to workforce development (Uhalde, 2011).
2.3 Workforce Development Processes and Initiatives
From the above definition, workforce development entails numerous processes and activities e.g. education, vocational and career-oriented training, pre-employment preparation, mentoring, and increasing access to educational and career opportunities (Harris and Short, 2014; OLawrence, 2016). These activities involve several stakeholders, including the national government, state governments, non-governmental organizations, learning institutions, and the private sector. Indeed, according to Haralson (2010), workforce development encompasses the administration and coordination public- and private-sector initiatives, programs, and policies with the aim of empowering individuals to earn a livelihood as well as helping organizations achieve their goals and objectives.
At the national level, the U.S. government is actively involved in promoting science, math, and engineering courses in high school and higher learning institutions through funding and legislative initiatives as well as partnerships with non-government stakeholders (Uhalde, 2011). The ultimate objective of such initiatives is to develop a workforce that can sustain technical jobs. State government governments are also involved in workforce development. In Tennessee, for example, the state government administers a workforce development program the Highlands Economic Partnership that brings together firms, educational institutions, and the regional chamber of commerce (Elkins et al., 2016). The initiative seeks to align curricula with industry needs, develop workforce skills, and connect jobseekers with employment needs. Public-sector workforce development efforts not only serve business and industry needs, but also contribute to the achievement of state and national economic growth goals (Haralson, 2010).
At the private sector level, corporate organizations participate in workforce development through recruitment, on-the-job training, team development, mentoring, coaching, and talent management processes (Leggett, 2013). These processes are imperative for attracting and retaining a qualified pool of talent. They facilitate positive employee outcomes such as organizational commitment, loyalty, job satisfaction, and retention. A group of organizations may also join to foster workforce development. Such collaborations are especially widespread at the industry level (Uhalde, 2011). Through industry associations, organizations in the same industry initiate programs to promote and sponsor professional development, industry-specific skills training, and employment growth (Haralson, 2010). Industry partnerships enable organizations to address shared problems collectively. For instance, organizations in the construction industry may join efforts to deal with workforce shortage and employee retention issues. Corporate-level workforce development may also be specific to professions (Uhalde, 2011). For instance, there are initiatives specifically targeted at finance, project management, legal, and engineering professions.
Higher learning institutions participate in workforce development by equipping the workforce with subject matter knowledge as well as job skills (Hordern, 2013). In Washington, DC, for instance, the University of the District of Columbia Community College provides residents with free skills training through an initiative dubbed Workforce Development and Lifelong Learning Program (Leer and Ivanov, 2014). Predominantly targeting low-income minority groups, the program was introduced in 2006 to offer free courses relating to four career paths: hospitality, construction, technology, and healthcare. Many other higher learning institutions throughout the country also make significant contributions to workforce development.
Given the multiplicity of dimensions involved, workforce development is quite difficult to achieve without stakeholder partnerships. Indeed, most workforce development efforts involve government agencies, non-governmental agencies, learning institutions, and the private sector (Uhalde, 2011). In the U.S., stakeholder partnerships have played a crucial role in advancing workforce development. The U.S. Council on Competitiveness is an ideal example (Elkins et al., 2016). The council is an initiative that brings together business organizations, universities, and labor organizations to enhance workforce development. The initiative specifically seeks to improve access to high quality education, create jobs, reduce unemployment, advocate for increased investment into science and technology by the federal government, and to boost U.S.s competitiveness in the global economy. Stakeholder partnerships provide synergy and collaboration, making workforce development easier to achieve (Harris and Short, 2014). In addition to corporate-level, regional, and national initiatives, there are worldwide workforce development initiatives (Leer and Ivanov, 2014). The above are just a few examples of the several initiatives undertaken by governments, non-governmental agencies, learning institutions, and the private sector to develop the workforce.
2.4 Significance of Workforce Development
Workforce development is a crucial ingredient of economic growth and development (Elkins et al., 2016). Whether at the organizational, industry, local, national, regional, or global level, workforce development plays a crucial role in economic prosperity. Haralson (2010) terms workforce development as an essential component of community economic development in any economic climate. Workforce development is even more important in todays increasingly knowledge-based economy. Organizations, industries, and countries need an educated and competent workforce to effectively achieve their goals and objectives, and to be competitive in the domestic and international marketplace (OLawrence, 2016). A skilled workforce drives innovation, producivity, and business growth, hence enabling an industry or economy to successfully fulfill its needs (Uhalde, 2011).
For business organizations, workforce development is vital for fulfilling workplace demands (Bell et al., 2014). In the contemporary world, organizations grapple with increased environmental uncertainty and greater task complexity. This can be attributed to, among other factors, globalization, technological advancement, political reforms, demographic changes, and socioeconomic shifts. Recruiting and maintaining an adequate workforce with the relevant skills, knowledge, experience, competencies, and abilities is vital for survival in such an environment (Duerden et al., 2014). Essentially, lack of a skilled workforce threatens the existence of organizations in the future. Industries without adequate talent are prone to unnecessarily high labor costs and the inability to achieve their strategic goals and objectives.
2.5 Veterans, Civilian Employment, and Workforce Development
Several organizations and industries are turning to veterans in an effort to develop their workforce. It is important to understand who a veteran is prior to proceeding further. Title 38 U.S.C. 101 defines a veteran as a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable (Harrell and Berglass, 2012: 7). For purposes of this study, a veteran denotes an individual who was in active service in any position in one or more of the many components of the military (Air Force, Navy, Army, Coast Guard, Marines, National Guard, or Reserve), and was discharged honorably. This clarification is important given the shifting character of U.S.s defense strategy. In the wake of military downsizing, the U.S. is increasingly relying on private contractors for military operations. These individuals are not considered as veterans in this study.
Once discharged from active duty, veterans have to adjust to civilian life. Part of this integration encompasses finding a source of income. For many veterans, however, finding employment can be a difficult undertaking due to factors such as the unwillingness of employers to hire veterans (Berglass and Harrell, 2012). A number of government-led initiatives have been introduced to address this problem. For instance, Congress, in partnership with the executive, passed the Veterans Opportunity to Work (VOW) to Hire Heroes Act in 2011 (Harrell and Berglass, 2012). The legislation offers incentives (e.g. tax credits and training assistance) for the private sector to hire veterans. Government agencies, especially the Department of Defense (DOD), the Department of Veterans Affairs (VA), the Department of Labor (DOL), and the Depar
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