Revitalizing Appalachia: SHRM Study Uncovers Employer-Led Pathways to Renew Coal-Impacted Communities

ALEXANDRIA, Va. — Today, SHRM, the trusted authority on all things work, and the SHRM Foundation released a new study on the vital role employers play in addressing the needs of coal-impacted communities across Appalachia. The research, funded through the Appalachian Regional Commission’s (ARC) POWER Initiative, found 90% of HR professionals in the Appalachian Region see a clear responsibility for employers to assist in the transition the economy of coal-impacted communities.

As the global shift toward renewable energy reshapes economies, the transition from coal has left many Appalachian communities grappling with lower employment rates, reduced household incomes, and limited economic diversity. In response, employers who found new ways to engage with coal-impacted workers have become more successful in improving their talent shortages and fostering economic recovery in their communities.

"Employers have a unique and powerful role to play in revitalizing Appalachian communities impacted by the decline of coal, but they don’t have to do it alone,” said Wendi Safstrom, President of the SHRM Foundation. “By partnering with local government agencies and social services, employers can create a far-reaching impact – one that not only addresses immediate workforce needs but also strengthens the very fabric of these communities. At the SHRM Foundation, we know this collaboration helps build a more resilient, hopeful future for everyone in coal-impacted regions."

The research surveyed HR professionals at employers in Kentucky, Tennessee, Virginia, and West Virginia to understand how these businesses can support displaced coal workers. 64% of these employers had at least one location in Appalachian counties identified as economically “distressed,” which means they rank in the worst 10-percent, or “at-risk,” meaning they rank between the worst 10 and 25-percent of the nation’s counties.

Key Findings Include:

• Lower Hiring Challenges Among Engaged Employers:
  • Employers actively recruiting coal-impacted workers face less difficulty filling open positions.
  • 42% of these employers report having difficulty filling open positions, compared to 70% of employers who do not recruit coal-impacted talent report difficulty.
• Lack of Familiarity with Coal-Impacted Worker Needs:
  • 54% of HR professionals in the economically distressed counties reported low awareness of these workers’ challenges, indicating an opportunity for education and outreach to better understand and address local workforce requirements.
• The Importance of Relevant Credentials:
  • 63% of HR professionals voiced concerns about coal-impacted workers’ lack of relevant experience.
  • However, 90% said a skilled credential would mitigate most of those concerns.
• The Power of Partnerships:
  • Employers are partnering with local government, educational providers, and social services to make a greater impact.
  • Nearly 90% of employers working to support coal-impacted workers rely on these partnerships to recruit, train, and support the health of coal-impacted workers.

To drive long-term success, the SHRM Foundation and ARC’s POWER Initiative emphasize the importance of targeted skill-building programs, employer awareness of community needs, and policy adjustments that reduce employment barriers. By focusing on these areas, employers can fill immediate workforce gaps while promoting a sustainable economic transition in Appalachia.

Methodology

The survey was fielded electronically from April to June of 2024 to full-time and part-time HR professionals working for employers with locations in Virginia, Kentucky, Tennessee, and/or West Virginia.

About the SHRM Foundation

SHRM Foundation empowers Human Resources as a force for social good. As the nonprofit arm of SHRM, the world's largest HR professional society, the Foundation believes that HR holds a unique position to lead change in the face of complex challenges within the world of work. The organization mobilizes and equips HR to ensure the prosperity and thriving of talent and workplaces. The Foundation works by widening pathways to work for more skills-first candidates and more kinds of talent; tackling societal challenges, with a current focus on workplace mental health and wellness; and strengthening the HR field with even more diversity, growth, and readiness to address these needs. SHRM Foundation works with SHRM, courageous partners, and bold investors to generate awareness, action, and impact to build a world of work that works for all. Discover more at SHRMFoundation.org.

About SHRM [Pronounced “SHERM”]

SHRM is a member-driven catalyst for creating better workplaces where people and businesses thrive together. As the trusted authority on all things work, SHRM is the foremost expert, researcher, advocate, and thought leader on issues and innovations impacting today’s evolving workplaces. With nearly 340,000 members in 180 countries, SHRM touches the lives of more than 362 million workers and their families globally. Discover more at SHRM.org.

About the Appalachian Regional Commission

The Appalachian Regional Commission (ARC) is an economic development partnership entity of the federal government and 13 state governments focusing on 423 counties across the Appalachian Region. ARC’s mission is to innovate, partner, and invest to build community capacity and strengthen economic growth in Appalachia to help the region achieve socioeconomic parity with the nation.