Q-C businesses get lesson on Generation Iowa's work

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By Jennifer DeWitt | Tuesday, June 3, 2008 7:12 PM CDT | () comments

The continued flight of college graduates from Iowa is threatening the future of the state’s economy, Iowa Rep. Elesha Gayman told Quad-City business representatives Tuesday.At a glance

In a report earlier this year, the Generation Iowa Commission outlined the issues surrounding Iowa’s “brain drain.” Among the commission’s findings:

- Iowa is a “Top 10” importer of college students and ranks No. 1 in the Midwest for college student attraction. With thousands of non-Iowans enrolled in Iowa’s colleges and universities, there is a “brain gain” of college students. The state’s “brain drain” is mostly caused by the state’s inability to retain college students.

- In the next five years, Iowa faces a “jobs surplus” of more than 150,000 highly skilled positions, particularly with the retirements of baby boomers.

- Iowa industries most affected by baby boomers retirements are manufacturing, educational services, health services, public administration, transportation and construction. Occupations most affected: airline pilots and navigators; special education teachers; teacher aides; eligibility clerks/social welfare; postal clerks; plumbers, pipefitters and steamfitters; psychologists; lawyers; elementary school teachers; management analysts; photographers; industrial engineers; personnel and labor relations managers; police and detective supervisors; financial managers; social workers; education administrators; and registered nurses.

- Iowa targeted industries for growth: biosciences and renewable energy; information technology and financial services; advanced manufacturing; and entrepreneurism.

- Iowa’s average annual salaries lag behind the nation and the Midwest. Citing the Bureau of Labor Statistics, the commission reported that Iowa’s average annual salary is $32,340 — well below Minnesota’s $40,340 and Illinois’ $39,290. Colorado, Michigan, Wisconsin, Missouri, Indiana, Kansas and Nebraska also had higher averages. Only South Dakota was lower at $29,170.

- Iowa’s healthcare providers are paid less than any other state in the region. The average in Iowa is about $52,500. The highest paid Midwest health care providers are in Minnesota, where they earn nearly $67,500 on average.

“Iowa has one of the oldest per capita populations. We also bounce between No. 1 and 2 with the number of young people leaving the state,” Gayman, D-Davenport, said at a DavenportOne Toast & Topics event at the Bettendorf Holiday Inn. “I see this as one of the biggest challenges of our future.”

Not only does the “brain drain” push up the state’s average age, but the exodus is coming at a time when baby boomers are preparing to leave the work force and thousands of jobs need to be filled. The disappearance of a younger generation also impact Iowa’s tax base, she said.

“When I became aware of how widespread the problem is, I decided I could be part of the problem or part of the solution,” she said of her decision to run for the Iowa House. A University of Iowa graduate, Gayman said had she left the state for another job “I would have been part of the problem.”

To help the state and its businesses become attractive to young talent, Gayman drafted a bill in 2005 — her first bill — that led to creation of the Generation Iowa Commission. Gayman, who was one of eight freshmen legislators under age 30 when she was elected, is an ex-officio member of the commission.

She and commission member Emilia Martin, a music therapist for West Music in the Quad-Cities, detailed the commission’s work for the Toast & Topics series, sponsored by MidWestOne Bank. Co-hosting Tuesday’s event was YPN/next Professionals.

More than 300 applications were received for the 15 seats on the commission. “That shows how thirsty these people were to have a role in their state’s future,” Gayman said.

The group’s mission is to make recommendations to the legislature on issues or policies as well as suggest best practices or guidelines for business and industry to adopt to attract and retain young talent in the state. Commission members also serve as ambassadors for the Iowa Department of Economic Development as it works to recruit new companies to Iowa.

Offering a snapshot of Generation Iowa Commission, Martin said the 15 members are between the ages 18 to 35 and represent the end of Generation X and the beginning of Generation Y or the Millenials. Workers in this age group generally are praise-seeking, resourceful, appreciative of diversity and “as you can see, our strength is in teamwork.” She said the generation also open to mentoring.

Climbing the career ladder is important, but so is a work-life balance. “We don’t want to go to work for 80 hours a week like our fathers,” she said, adding that this generation also wants to “play hard.” “If we can’t work our way up (in the company) we’re probably not going to stay.”

While money is important, she said so is the total compensation package. Wages are an area where Iowa needs improvement. “The low wages of Iowa lags the nation and the Midwest,” Martin said, adding that Iowa wages lags the rest of the Midwest by 9 percent.

It also is a generation with a social conscience. “We want to be community-focused. Our parents were hippies and they taught us to care about the world.”

But employers need to know it also is a group carrying high debt from its college education. Iowa ranks sixth in the nation for average student debt and second in the nation for percentage of graduates with student loan debt.

Among the employers at Tuesday’s presentation was Sherry Rodriguez, the human resources director for Tri-City Electric Co. “I wanted to hear what the initiatives are for trying to keep young people in the Quad-Cities,” she said, adding that she was convinced Gayman and Martin “have a pulse on what Iowa should be doing. I’m impressed they are pursuing this as young people.”

Rodriguez said Tri-City is facing its own share of possible future retirements with some of its workers eligible for retirement at age 55. “We’ve been trying to do some succession planning and find out how we’re going to fill those gaps.”

Martin said Generation Iowa’s next emphasis will be on studying the retention rate among graduates of community colleges and vocational training schools. The commission also plans to look more closely at the other end of the spectrum — the older members who are 25 to 35.

Jennifer DeWitt can be contacted at (563) 383-2318 or jdewitt@qctimes.com.