While businesses have been engaged in a slow but steady digital transformation for well over a decade, the last two years have propelled that transformation forward at a pace few could have seen coming. The engineering industry is one sector where the integration of digital technology has spread to virtually all areas of business, from customer service and supply chain relations to internal operations. The industry must begin to reassess its hiring practices and skilling strategies if it wants to thrive in the 21st-century digital economy.
While almost every industry in the United States has experienced pandemic-related labor shortages, the engineering sector has been particularly hard hit by the lack of available talent.
According to the National Science Foundation (NSF), the talent shortage in the engineering industry is due to an aging workforce and a slow growth in the number of people obtaining engineering degrees.
Despite an incremental growth in bachelor’s degrees in engineering since 2000, these modest increases are not enough to meet the demands of a rapidly digitizing economy and the demands to build a modern infrastructure. NSF also reports that nearly 30% of all engineering and science degree holders in the labor force are 50 years or over and expected to retire in the next 15 years. In addition, engineering firms have reported significant challenges in recruiting individuals with at least 10 to 15 years of experience, as well as individuals with project management experience or mid-level and senior-level leaders.
These factors, coupled with the hyper-competitive talent market driven by the pandemic, have made it extremely difficult for the engineering industry to keep up with the rapid digital transformation that is coming to define the modern economy. Employers not only need talent with higher levels of experience, but they also need talent that can adapt to the digitization of the workplace.
There are several ways that employers in the industry can diversify their workforce and better anticipate the challenges of tomorrow.
A key to expanding talent pools within the engineering industry is refocusing recruitment beyond traditional four-year degrees and senior management experience. Broadening qualifications to include micro-credentials—or certifications in specific professional skills—can create a workforce that is encouraged to continually learn, especially when it comes to new tech-related skills. Because it's not a long-term college degree, people with micro-credentials can continue to add credentials in other specialties as they work, building the tech capabilities of their company. Popular micro-credentials in the engineering industry include systems engineering, robotic machinery, and product design.
To retain existing talent pools, the engineering industry must also invest in skilling and retraining programs. These programs can offer new tech skills to workers who already have an extensive background in engineering and help them adapt to a more digitized workplace. Digital skills like software-as-a-service and cloud migration will continue to grow in demand and are prime examples of areas where workers can develop new skills. Not only will reskilling workers benefit companies themselves, but it’s also an opportunity that more and more workers want from their employers. Most American workers (58%) feel that they need more training and professional development to stay relevant in today’s changing labor market. Over three-quarters (79%) of workers also agree that to retain or increase their future employability, they need to continue their learning and development efforts.
Learning on the job is not strictly limited to formal job training programs, either. In engineering—where many employees were designated “essential” during the height of the pandemic—companies and employees alike report that it is easier for new employees to learn from senior staff in person, compared to virtually. While many engineering firms are and will continue to offer flexibility and remote options to increase the talent pool where possible, the reality is that on-site professional development is the preference for many in the field. Companies will need to find the right balance.
By taking these steps to reassess their hiring and retention practices, the engineering industry can grow its talent pools and thrive in a competitive labor market. The engineering industry can help pave America’s economic recovery, but it also needs to adapt to an economy and workforce that is becoming increasingly defined by digitization and technology.
Angie Keller is president, Randstad Engineering.
