Finding the next generation of skilled labor

I have the privilege of frequently interacting with senior leaders of emerging middle market companies. One topic that often comes up is the struggle businesses face in finding high-quality talent. Recognizing a state unemployment rate of 5 percent - as well as an unfortunately high unemployable rate - business owners in need of skilled labor are concerned as they plan for growth and expansion.

Take the manufacturing industry, for example. A lot of companies are having a hard time recruiting qualified workers, largely because many people don't understand how much they can earn working in manufacturing - or what the job actually involves. The perception of manufacturing as a dirty, unappealing, dead-end job, for example, doesn't resemble the current reality. If anything, high-growth manufacturing companies look more like laboratories than steam-filled caverns. Still, that perception keeps many in the labor market away from manufacturing companies.

Another issue involves the disconnect in the way we think about education. College has long been touted as the only path to success, but college isn't for everyone. What are the options for those whose education ends with a high school diploma? How can hiring managers convince a high school junior or senior that a job at a manufacturing company is a viable option? How do you make the profession appealing and increase your employable base?

Right now, a lot of companies mostly rely on poaching talent from their competitors. But that's not a sustainable solution. Finding new sources of talent means focusing on ways to draw upon the unemployed base. The more forward-looking companies are investing in community programs that aim to increase the amount of employable people in the job pool. In these programs, companies work with instructors at local high schools and trade schools to provide training - both at the schools and the companies. In some cases students can intern with the company and earn credit toward graduation. Along with providing valuable skills, it also gives students an inside look at what the ultimate opportunity is within a given industry.

It's also important to find ways to support the existing employee base, helping them increase their engagement, proficiency, efficiency and - ultimately - profitability. These efforts can include cross-functional training and programs that allow them to grow both professionally and personally. Best of all, a satisfied and productive employee often ends up being your best source to find new talent.

I can attest to this from firsthand experience. I'm fortunate to work for an organization that promotes the idea of giving employees self-confidence, a sense of purpose, and a platform to speak up and be candid. As a result, our employee engagement scores have continuously improved, and our existing workforce has become one of our best referral sources for new talent.

Despite the current situation, there are plenty of reasons to be optimistic. Illinois business owners have consistently fought through tough headwinds only to emerge stronger. The companies that reach out to those who desire to be employable while investing in their most precious assets - their existing employees - will help develop a new generation of skilled, motivated workers.

• Oscar Johnson is senior vice president, head of Illinois business banking for BMO Harris Bank.