The workforce landscape in Nevada is changing. And while much of it is for the better, Nevada businesses are still grappling with a disconnect between their needs and the availability and skill level of applicants. Leadership in Nevada takes a collaborative approach and have resources to help recruit, train and retain the right people.

Recently, a group of workforce development executives met at a roundtable sponsored by Nevada State Bank. Together they discussed the current and future state of their industry along with its challenges and successes. Connie Brennan, publisher and CEO of Nevada Business Magazine, served as moderator for the event. These monthly roundtables bring together different industries to discuss issues and solutions.

What Workforce Development Challenges Does Nevada Have?

Jared Smith: I do not see very large business deals happening in this economic environment. We know that our small businesses need help now, more than ever. I have not seen as many requests from small businesses for assistance since COVID.

David Schmidt: We also have the highest unemployment rate in the country. That seems surprising because we often hear businesses saying that they cannot find workers. We have more people looking for work than anywhere else, but [they have] challenges with connecting. That is reflected in the duration of unemployment. We have seen people looking for work for longer periods of time and claiming unemployment benefits for longer periods of time. The current average number of weeks for unemployment benefits is similar to what it was in the recession at its worst point. That is emblematic of some mismatches in either the expectations of the businesses or the skills on the part of workers.

Shani Coleman: One challenge we have is alignment. We have target industries, and having a skilled workforce that aligns with those target industries has always been a challenge.

Marchele Sneed: Through our EmployNV business hubs there are programs available for businesses to recruit, train and retain workers. There are also incentives available to businesses for hiring Nevadans, specifically in certain target populations. You can get up to $2,000 to hire a Nevadan. That money can be used for training incentives, to help employees with barriers, or however the employer feels that it would be best utilized. The goal is to help incentivize employers and to help small businesses who oftentimes do not have the resources to train their employees.

Terri Sheridan: Some businesses are having people age out of the workforce. There are some newbies coming in, but with older employees leaving, you still need to replace those people. Succession planning and finding ways for businesses to fill those voids is a challenge.

Coleman: Economic development is a large umbrella that a number of things fit under and workforce is part that. You can’t have one without the other. It is very difficult for me to recruit a company to this community if I can’t show that there is a pipeline or talent here to support their employment.

Milt Stewart: Developing a reliable pipeline, particularly in the K-12 space for fields like advanced manufacturing, is also challenging. We want to make the students understand what careers can look like in some of those industries so that they may be interested in that talent pipeline.

Smith: If we want to have a career pathway for our kids, we need to continue to open their mind’s eye. We have a program in Henderson called “I Can Be”, where we take employers directly into the school system and they pick a high school. It is like a career fair, but more focused on explaining what it is that people do every day. Our goal is to get them to think and possibly find something that they want to do for a living. We want to expose kids to different careers, show them how to get there and explain what it looks like to be successful in that career. If we want to establish those pathways, we have got to get these kids interested very early and then get them on a pathway early.

Are There Duplications in Workforce Development?

Smith: Duplication is going to happen. But there is so much need, so what if there is duplication? If someone does something really well and we are able to copy what they are doing and put some resources behind it, then that is what we are going to do. We do not have an ego when it comes to serving our companies and our workers.

Stavan Corbett: All of us know each other. We collaborate or have team members that are extensions of what we do for a strategic and systemic approach. But there are pockets where need is not being met. And if there is a need not being met, duplication is potentially short term until we evolve into a more systematic and collaborative approach.

Schmidt: You can have all the programs in the world, but if they do not work, then duplication is what is trying to solve the need because it is not being met somewhere.

Sheridan: The ideas that some of the students and young adults have today are incredible. And to be able to point them in the right direction is terribly important. There does not necessarily need to be duplication, but for our residents we need to be more of a one-stop shop within our four walls so that our residents know where they are going.

Jaime Cruz: A long time ago we were duplicating efforts. We are not done yet, but we have made great strides in reducing duplication and increasing effectiveness.

Coleman: There is still some duplication in the sense that different municipalities and jurisdictions have their own elected officials that they are accountable to. I may run a program for Clark County or unincorporated Clark County, and then a similar program may be run by the city of Henderson or the city of North Las Vegas, simply because they are independent jurisdictions. But we are all trying to move in the same direction.

Stewart: EmployNV Career Hub, and the business hubs here in southern Nevada, all have the same basic model as northern Nevada and throughout the state. And all of them are based on partnerships. There is the local workforce boards, the Department of Employment, Training, and Rehabilitation and others. When folks come in the door, we are able to offer them a menu of services – both to businesses and to career seekers.

Cruz: Our efforts were demonstrated by the leadership of the state when they said EmployNV is going to be the brand by which North Las Vegas, Henderson, Clark County, northern Nevada, and all of them are going to unify. There are still opportunities for improvement, but there is a commitment that starts at the state level, and not every state in the nation does that. Less than half do. That demonstrates we are on the right track.

Sheridan: We do not need to reinvent the wheel. If something is working in one municipality or one area, it is likely going to work wherever it might land.

Is There a Shift From a Four-Year Degree Focus for Nevada’s Workforce?

Corbett: College is for everybody. A degree may not be for everybody. But, if you want a stackable credential or a certification, you go to a college to receive that. We do see the numbers increasing of individuals who never wanted a four-year degree or a two-year degree, but got a credential and decided to go towards a degree for a higher quality of life.

Cruz: Some people are going to earn while they learn. And when they have money, they get a bachelor’s degree. Then when they have earned a four-year degree, have money in the bank, and they bought their house, then they decide they want a master’s degree. They do it on their own time.

Corbett: There are spaces in the United States where college attendance is up, but it is driven by the different economics and the different industries that are within that area. Locally, our numbers are up. We have a 3,000 increase from just last fall to this fall. UNLV and NSU are similar.

Coleman: Cybersecurity is one of the top innovation industries in Clark County. But there is a disconnect between the number of people who have the skills to do cybersecurity and the number of people who need cybersecurity. What we have learned is, those people coming out of school with a degree are already behind. That is where certifications become important because people can gather training and upskill faster. From a technological standpoint, they allow people in the technology and innovation space to be more aligned with what is happening in the market as opposed to a four-year degree.

Sneed: I did my own little personal survey with my daughter and her friends, and they have different outlooks about their careers. Credentialing and developing skillsets for them is essential because a lot of them do not want a four-year degree and the student loan debt that goes along with it. They are looking at different career pathways that do not necessarily require a four-year degree.

Corbett: It depends on the region and where it is related. For example, as a teacher you will make $50,000 a year, but then have $100,000 in loans. That is something our students are very sophisticated about thinking about.

Coleman: We are going to see greater emphasis on certifications that are buildable. Someone can get a certification and then utilize that certification through their career path as they are ready to take next steps. Someone may get a certification and then decide in a couple of years that they are ready to be a supervisor or manager and decide to get a two-year degree. They are able to build upon that.

Smith: We must serve our kids holistically, for those who want to go to college and for those who do not. There have to be pathways for everybody.

Corbett: All the three major NSHE institutions here offer competency-based or skills-based programs. Employer’s ecosystems move quickly. They get new equipment and the job requires more skill. Building stackable credentials and providing just-in-time training allows us to meet that need in real-time so businesses can continue to evolve and stay competitive.

Sheridan: Children can go to school and learn about daycare and teaching young children. They can go to school and learn how to work on diesel trucks, and automobiles. Whether it be nursing, hair hairstyling or whatever career path they choose, they do not need to get a four-year degree. They can come out of school and go right to work. And, if we are connecting students with businesses, we are already taking four-year degree job requirements out of the equation. You advance as you go and get time in position. If we start kids young, by the time they are in their 20s, they may not have a four-year degree but will be able to say they have been doing this work for six years or whatever the case may be.

Is Workforce Development in Nevada Properly Funded?

Stewart: Historically, a lot of federal funding is used for workforce development. The state is now sharing some of the funding that they receive from the federal government with the local workforce boards. I think we would all agree that we always want more, because there is always a need there, and funding can help with those needs.

Schmidt: Almost all of the workforce development funding that the state pays out is coming from federal grants under the Workforce in Innovation and Opportunity Act or WIOA. There is a piece that gets chipped in the general fund to support the vocational rehabilitation program for helping people with disabilities, but that is it for general fund.

Cruz: When you look at the data across the nation, Nevada is nowhere near the top when it comes to investing in education or workforce development as a state.

Schmidt: One thing we do well is that for 40 or so years now, the state has had a small (0. 05 percent) tax on the first approximately $40,000 of each employee’s wages that goes into a dedicated workforce training pot. Federal money does not grow. But the structure of this other tax is that, as wages and employment grow, and as the number of workers grows, the revenue in this pot has continued to grow. There are not general unrestricted funds necessarily flowing into workforce development to the extent that they hit general funds. [However], it is a good thing that Nevada has a funding mechanism in place that will grow over time and continue to be able to support buying tools and providing essential needs to help bridge the gap for workers.

Cruz: We say we want to be a business friendly state and the counties do a great job in expediting the business processes for all that. But at the end of the day, it is the legislators who put together policies and decide what to invest in. And again, the data shows that Nevada is nowhere near the top or the middle in investing in education and workforce development.

Stewart: We have gotten much better collectively at efficiencies, avoiding the duplication of services so that we can spend the funded dollars that we do have wisely.