Workforce Retention Summit outlines efforts to address labor shortage in South Dakota
Apr. 19—MITCHELL — A common perception with the labor shortage in South Dakota is that "nobody wants to work anymore."
But Marcia Hultman, secretary of labor for the state of South Dakota, isn't buying it.
"This is a huge myth," Hultman told the audience Thursday afternoon at the Workforce Retention Summit on the campus of Dakota Wesleyan University in Mitchell. "I know in Mitchell and the surrounding area we've been at a 2.1% unemployment rate, and 3% unemployment is typically considered full employment. What that means is that everybody that has the right skills that employers are looking for are in the workforce."
Hultman was on hand for the summit, which was organized by the Mitchell Area Development Corporation and the Mitchell Chamber of Commerce, along with Dakota Wesleyan University, the South Dakota Department of Labor and NorthWestern Energy, and outlined a number of ways her department and local groups in places like Mitchell are working to bring workers to the employers that need them.
There are only about 9,900 unemployed South Dakotans out of an estimated labor force of 481,500 in the state. Hultman said those statistics paint a relatively clear picture of how difficult it is for businesses to draw the talented employees they need.
"If we only have 9,900 people and we have 21,000 job openings — I'm a word person and not great at math, but that really illustrates what the challenge is for employers. We have about a half-person for every job opening in the state right now," Hultman said.
The department of labor has been working to see that the size of the South Dakota workforce increases, and the department has made strides toward that goal in recent years. Through various efforts like its multiple apprenticeship programs and
the Freedom Works Here ad campaign
, the department is helping guide those from South Dakota and around the country find employment with businesses in the state.
South Dakota has several factors working in its favor with addressing the issue, Hultman said. The traditional Midwest work ethic is one, as is the recent increase in workforce participation by males, females and youth. A general interest from out-of-state residents looking for a change in their environment or lifestyle is also a boost, and Hultman said her department is seeing a desire from people to get into or re-enter the workforce.
The opportunities to work and the desire to work are there, Hultman said. Now it's a matter of bringing employer and employee together.
"People want to work. People are working. So we have some challenges," Hultman said.
In addition to the work at the department of labor, part of Hultman's presentation Thursday, and the workforce summit in general, was geared toward what employers can do to be more appealing. The sensibilities of the workforce in 2024 are not necessarily the same as they were in the 1970s or 1980s, she said.
A modern approach to recruitment, training and retention can greatly increase an employer's appeal to potential employees.
Hultman cited Daktronics as an example of marketing itself as a recruiting tool. Daktronics, which is based in Brookings and is known for its high-tech scoreboard displays that are prominent in sports arenas, markets not just its product but the company itself, Hultman said.
Savvy advertising for open positions can help with recruiting, as well. Some longtime staples of job opening advertising are actually detrimental to drawing interest from interested parties.
In today's world, those types of requirements are outdated, Hultman said, and can lead to a decrease in applications.
"Does your description still say they must be able to lift 25 pounds, and why does it say that? If someone can do 95% of the things you need them to do, is that 25 pounds going to keep them from being considered?" Hultman said. "A lot will include that you must have a driver's license. Unless I need to drive a company vehicle for my job, do I need a driver's license? Why do you care if I ride my bike to work every day?"
Being quick to respond to applicants is also important to keeping the job seeker's interest, she said.
Good training and a providing a sense of inclusion and purpose is also important for successful companies.
Starting a new job can be difficult, especially in the early going as new employees find their way with their new company. Cultivating a positive and welcoming culture in the workplace — having a specific welcoming group to embrace new employees by answering questions and showing them the ropes, for example — helps employees not feel abandoned to simply perform their tasks at their desk.
That sense of workplace community can make a difference in increasing the appeal of a job.
"Constantly be talking to people. Are they OK with where they're at? And is that where you need them to be, or do they want to advance and do something different? Have that conversation on a regular basis, not just once a month or year," Hultman said.
Those are examples of steps any employer can take to improve its chances of drawing in the right employee candidates, she said.
Another factor in attracting employees is cultivating an overall welcoming attitude from the community standpoint. Hultman cited the
Move to Mitchell program and the presence of a community concierge
as a good example of how to make people feel more comfortable moving to a new community for work, especially for those who may be coming from out of state.
"I think you will see really good things from that, and I encourage other communities to follow suit," Hultman said.
Mike Laurtisen, CEO for the Mitchell Development Corporation and the Mitchell Chamber of Commerce, said that program has been well-received and has encouraged 32 families to relocate to Mitchell and has the potential to bring in more.
That's a great start, but he echoed the importance of worker retention as a part of the labor shortage solution, and that's something the program and the local "Mitchell concierge" position are aiming to improve. Making new arrivals feel welcome and a part of the community is vital, he said.
"During the Daugaard administration, we moved 70 families to work at Trail King. And they all left," Lauritsen said. "We didn't have the housing, but also if you don't integrate people into the community, they don't stay."
The program
offers $1,000 for new residents to move to Mitchell,
and also helps them acclimate to the new community, make friends with like-minded interests and generally gives them a sense of belonging, which is important especially with new arrivals with few or no direct connections to the community.
Guiding new residents to the community garden program or promoting other recreational activities can give new residents an anchor outside their regular job. It allows for a feeling of inclusion and connection outside the normal avenues of meeting people, such as work or church.
"If you haven't made those connections, you're not going to keep that retention and they're maybe going to look elsewhere," said Doreen Nelson, who serves as the official concierge for the development corporation and chamber.
Lauritsen agreed.
"We just welcomed a new engineer to town. He got the $1,000 and we integrated him into the program. He moved here from Chicago, but where's the opportunity to meet people? You can (only) meet people at work or the bar or at church," Lauritsen said. "Here's a chance to meet people who are also moving to town and to learn what their hobbies are and make friends."
The summit included a three-person panel featuring Hultman, Think 3-D co-founder Vaney Hariri and Toshiba General Manager Teresa Sternhagen, all of whom offered advice through a Q&A on what can be done to improve workplace culture.
Toshiba is doing things the right way, Lauritsen said, and its worker retention rate shows that. A case study on its practices was presented earlier during the summit.
"Their employees last 15.6 years," Lauritsen said.
The tools to bring workers to South Dakota are out there, Hultman said. The many apprentice programs coordinated through the department of labor,
such as the teacher apprenticeship program,
continue to offer inroads to filling needed jobs.
Hultman said the department of labor will continue to assist interested individuals find their way in the South Dakota employment world, whether they be longtime residents or transplants to the state.
The challenges to solving the problem are real, but the rewards are real as well, she said.
"It's a challenge, but if we get it right, it's a positive outcome, and I think anytime you have a challenge with that potential it makes it so much easier to tackle," Hultman told the Mitchell Republic. "We have to stir the pot, and we're going through that process right now, but we're not there. It will take some time, and we're working on that so people know about the training, the connection to employers and the apprentice opportunities that we can help them with, no matter where they're at."
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