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Research/Evaluation Report

Workplace Basics The Competencies Employers Want

About

In this report, the researchers examine the competencies workers need in their occupations and how those competencies interact with their educational attainment to determine their earnings. It shows which competencies are in high demand both across the workforce and in specific occupations, and details how the intensity with which workers use in-demand competencies can affect their earnings.

The report explores how 120 knowledge areas, skills, and abilities are demanded across the workforce and within specific occupations—and how the intensity with which workers use these competencies, along with their education level, can affect their earnings. The question was asked, "What competencies are employers looking for across the workforce and in specific occupations?"

As a result of a Quantification/Characterization Analysis, the researchers identified four trends that hold across the workforce:

  • Over the past 50 years, structural changes in the economy have caused demand for cognitive competencies to rise and demand for physical competencies to fall.
  • In the modern labor market, five cognitive competencies are in high demand across all occupational groups:
  • Communication
  • Teamwork
  • Sales and customer service
  • Leadership
  • Problem-solving and complex thinking
  • Among the five competencies with generally high demand, communication is dominant; it has the highest demand across occupations; is in the top three most-demanded competencies within every occupational group; and is associated with the highest earnings boosts across the labor market.
  • To succeed in their jobs and earn optimal compensation, workers need a balanced mix of competencies that are generally valued across the workforce and competencies that have high value within specific occupational context.

Major Findings and Recommendations

After conducting their analysis of the competencies employers seek in their workforce and in specific occupations, the researchers identified the following major findings and recommendations:

FINDINGS:

  • Communication is a critical competency in any job.
  • Teamwork is the glue that holds the workplace together.
  • Sales and customer service are valued competencies in today’s economy.
  • Leadership is crucial to the efficiency and effectiveness of any business.
  • Problem-solving and complex thinking are more critical than ever for the success of both workers and employers.

RECOMMENDATIONS:

Students and Workers

  • Choose an occupation wisely. When selecting an occupation, it’s important to understand the monetary and nonmonetary consequences of the decision.
  • Get the education you need to meet your goals. People with higher levels of education generally earn higher wages, but the earnings premium associated with education varies by occupation.
  • Develop the competencies rewarded within your chosen occupation alongside those in high demand across the workforce.

Educators:

  • Provide a curriculum that conveys both general and specific competencies.
  • Offer comprehensive career counseling and structured opportunities to explore potential careers.
  • Offer all students access to opportunity and the support they need to succeed.

Employers:

  • Make the case for education and workforce preparation that conveys the competencies that are in high demand.
  • Partner with high schools, colleges, universities, and communities to give students and job seekers opportunities to develop high-demand, high-reward competencies.

Materials

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  • Last Updated:
  • Created:
  • Resource Publication Date: 2020
  • Author(s): Carnevale, A. P.; Fasules, M. L.; Campbell, K. P.
  • Funding Source: Georgetown University
  • Resource Availability: Publicly available
  • Posted by: Wesley Peterson
  • Posted in: Workforce System Strategies

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