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Health Careers Collaborative of Greater Cincinnati
Return on Investment WebinarDecember 6, 2011
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HCC Guiding Principles
1) Job creation & advancement for low income adults that meet employer needs
2) Mapping career pathways within sectors which are important to region’s economic growth
3) Commitment to systemic & sustainable change within and across institutions
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Over 3,000 Credentials for Incumbents and Jobseekers
(since 2007)
1) 200 + Associate Degree cohort students in Allied Health & Nursing.
2) HCC Associate degree grads average GPA = 3.25
3) 27 Nursing Grads to date; first Allied Health grad in 2011; 98% continuing for Bachelor’s
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Career Literacy & Pathways to Employment
• Comprehensive system of intake, assessment, guidance and planning prior to formal academic work• Innovative remediation and readiness
supports• Completion Advisors, Job Coaches,
Retention Specialists• Employer Engagement & Job Placement
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• Pathway Advisors & Employer-based Job Coaches• School At Work academic & career prep• Pre-pathway assessments & readiness
Key Train & Work Keys (Great Oaks & CBO’s)
National Career Readiness Certificate & Profile Plus Assessment for “Fit” & “Talent” (Great Oaks, CSTCC, CBO’s)
• Pathway Expansion
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FundingSource Amount DatesUSDOL ETA $4,935,132 March 2010-
February 2013
GCWN $400,000 2009-2012Employer partners
$1,000,000 annually
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Benefits: Employer Perspective• Program Return on Investment
• Stewardship of employer tuition budgets• Overall 15% ROI (tuition plus turnover, re-
training, productivity costs)• Enhancement of existing educational
partnerships• Dynamic support of current and projected
workforce needs• Recognition vehicle for high performers seeking
career pathway opportunities• Supports a culture of employee engagement
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Rationale for ROI Study
• Intuitively knew we were doing work beneficial to employers
• Our numbers were telling the story of individuals, but not employers
• Have an opportunity to make the case that serving frontline workers is beneficial to employers
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Why ROI and not Business Value?
• Easily recognizable term• Even though there are many non-fiscal
benefits, ROI drives business decisions• There are many initiatives with non-
fiscal benefits; we wanted to make ours stand out from other initiatives
Project Concept(Benefits – Costs)
InvestmentBasic Formula =
ROI
Employers
Individuals
Institutions
Public
Analysis Outline• HCC has two tiers of training
• Short-term certificate• Long-term associate degree
• One large employer provided data• Short-term participants N=525• Long-term participants N=90
• Timeframe – 2005 through 2013, expected completion of currently enrolled cohorts
• Matched comparison group – participants relative to incumbents in similar occupations hired at similar times
• Annual calculation of costs and benefits based on number of individuals in each cohort and stage of progress
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Factors UsedCosts Benefits
Administrative costs borne by employers
Reduction in turnover during training
Tuition payments Lower hiring costs or promoted workers compared to outside hires
Increase in absences during trainingCost of hiring replacements when participants complete and are promoted (backfill)
Factors used were principally determined by the ability to collect data and ability to relate costs and benefits directly to the program.
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ROI Contributors – Long Term• The two largest costs for employers are
tuition (~$12,566 per completer) and the cost of filling the prior position following promotion (~$9,000 per completer)
• The two largest benefits for employers are reduced cost of filling new position (~$24,438 per completer) and reduced turnover while in program (~$2,214 per completer)
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ROI – Long Term
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ROI Contributors – Short Term• Employers pay no tuition (WIA,
scholarships or private pay)• The program costs are due to a slightly
higher rate of absenteeism and administrative costs
• The two largest benefits for employers are reduced recruitment cost of filling new positions and reduced turnover while in program
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Net Benefit– Short Term
Combined Net Benefit – Short Term and Long Term
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Non-monetized benefits
• Increasing diversity of staff• Providing advancement
opportunities for staff• Improved staff morale• Fulfillment of the community service
mission of the hospital
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Questions
Lawra Baumann [email protected]
Alan Jones [email protected]
Christopher Spence [email protected]
Joel Elvery [email protected]