Businesses Must Act To Students Back On Track

Businesses Must Act To Students Back On Track

The U.S. Labor Department estimates that by the end of this decade, our nation will face a shortage of 12 million qualified workers for the faster-growing segments of the job market. And while the insurance industry may not need as many workers as some segments, it's abundantly clear we'll be competing strenuously for the best talent.

Demand for insurance will continue to climb. The demand will be spurred by, among other things, an aging population interested in health care coverage and by uncertainty in our civil justice system that carries the potential of large liability awards.

While there will be growth in demand for our products and services, the amount of job growth will be heavily influenced by how technology drives productivity gains.

For instance, underwriting software that quickly analyzes the information on insurance applications will impact our need for underwriters in the future. The Internet capacity that enables clients to obtain quotes, submit claims or simply obtain information online is likely to have an impact on the numbers of other workers we'll need.

While the information technology that will play an ever more integral part in all business processes may demand fewer workers, it will also require higher level skills and knowledge.

Now here's the challenge for our industry and business generally: According to a recent study by the U.S. Department of Education, seven out of ten students who do graduate from high school don't have the coursework needed to succeed in college or the workplace. Of those who go on to college, nearly half require remedial courses. Those that must take remedial work are six times less likely to complete their degrees.

The trend is already in evidence.

A 2001 poll by Public Agenda indicates that seven-in-ten businesses nationwide report poor basic employment skills among recent hires. Almost two-thirds complained about inadequate math skills. Three out of four indicated new hires lacked sufficient writing skills.

So while our industry faces a need for workers with stronger academic and technical skills, the data and personal experience indicate many of our nation's high school graduates lack the knowledge, skills and work ethic to succeed.

What's the solution?

The bottom line is that we, as business people, must demand more of our schools.

Research strongly indicates that students who've completed rigorous coursework in high school are better equipped to succeed in college or in the workplace, in military training programs, and to continue life-long learning that will position them for career changes.

Because the majority of jobs now require some type of education achievement beyond high school, all students need to complete a sequence of rigorous academic courses in math, lab sciences, English, social studies and foreign languages.

The State Scholars Initiative, introduced last year by President Bush and U.S. Secretary of Education Rodney Paige, is challenging high school students to master a set of academically rigorous courses that will prepare them to succeed in college, in their jobs and in life. This is a simple, low-cost, high-impact approach to motivating high school students to take tough courses. And research shows it's working. In community after community, it's doubling and tripling the rate of completion in lab science and higher math courses.

The key ingredient is business people taking a lead role in drawing a clear picture of the opportunities that await young people who work hard and complete the right courses in high school. Our company will look to Scholars in Maryland and Texas for our hiring needs, for instance, because it's incumbent on us to foster a culture of achievement among young people.

Yes, it's important to our business that we have a capable workforce in the years to come. But a quality education provides much more than that.

It helps our young people build their self-confidence and their satisfaction with other areas of life and to become strong, useful citizens.

What can be more important?

The State Scholars Initiative needs business volunteers willing to talk to students in their classrooms, as well as to assist in developing incentives and academic supports that keep students on track to graduate as Scholars. Insurance company executives interested in becoming involved with the Initiativeat a community or state policy levelcan contact the Center for State Scholars at info@centerforstatescholars.org.

Edward B. Rust Jr. is chairman and CEO of State Farm. He also serves as chairman of the Business-Higher Education Forum. He is past chairman of The Business Roundtable's Education Initiative, former co-chairman of the Business Coalition for Excellence in Education, a director of Achieve Inc. and the National Center for Educational Accountability. He serves on the National (Glenn) Commission on Mathematics and Science Teaching for the 21st Century.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, December 5, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.