transition management for regional economies: promoting innovation in talent development for a...
TRANSCRIPT
Transition Management for Regional Economies:
Promoting Innovation in Talent Development for a Global Economy
Version: NYATEP 2008
Tim Theberge, Lee Reynolds
2 Agenda• Overview
• Background• The Economic Reality
• Planning• Prevention• Partnerships• Rapid Response
Overview
Economic Landscape
System Transformation
4 The Numbers
• U.S. economy is constantly “churning”– 2005: 29 million jobs lost while 31 million jobs
created
• 90% of the fastest growing jobs require education and training past high school.– 63% of all new jobs in the next decade will
require a college degree; • only 30% of the U.S. population has one
5 The Bottom Line
• An estimated 3.8 million youth, ages 18-24, are neither employed nor in school
Education Level
Annual Net Fiscal Impact
Lifetime Net Fiscal Impact
<H.S. -$1,567 -$73,649
H.S. $1,513 $71,111
>H.S. / A.S. $3,197 $150,259
B.A. $5,585 $262,495Values for Commonwealth of Massachusetts Adults 16-64, 2002-2004
Source: Center for Labor Market Studies, Northeastern University
Data in table for Massachusetts Only
6 Job Training vs. Talent DevelopmentReactive vs. Proactive
Job Training:• Transactional• Individual• Jobs that exist NOW• Immediate results• Workforce System
operates more independently
Talent Development:• Strategic• Sector focused• CREATE/Expand jobs• Longer-term,
sustainable results• WIS operates with and
through partners• Transformative in
nature
7 Transformation Model & WIARegional / sectoral asset mapping
[WIA Sec. 117 (d)(7) and (8). WIA Sec. 118]
Workforce Investment Boards [WIA Sec. 117]
Community Transition Teams (Maine)
Analysis of skill sets of at-risk workers compared to skill sets in demand.
[WIA Sec. 117 (d)(6), WIA Sec. 118]
Define pathways for at-risk workers to transition into demand occupations. [WIA Sec. 118]
Engage partners to develop a shared vision. [WIA Sec. 118]
Partner, partner, partner.
[WIA Sec. 117, 118, 121]
Getting Ahead of the Curve Information as a Tool:
The EmployerThe EmployeeThe Economy
Regional Innovation Grants
Planning
9 Information GatheringLocal Boards
WIA Sec. 118(b) Contents.--The local plan shall include--
(1) an identification of--
(A) the workforce investment needs of businesses, jobseekers, and workers in the local area;
(B) the current and projected employment opportunities in the local area; and
(C) the job skills necessary to obtain such employment opportunities;
10 Information GatheringRapid Response
From the Regulations
• 665.320– (a)(3) Develop and maintain mechanisms for the
regular exchange of information relating to potential dislocations…
– (b) In collaboration with the appropriate State agency(ies), collect and analyze information related to economic dislocations, including potential closings and layoffs, and all available resources in the State for dislocated workers…
NOTE: Also covered in Sec. 117 and Sec. 188 under Local Boards
11Transition Management (The Employer)
• Sample of Available Data Sets:– New Hires / UI Claims– Mass layoff / WARN– Job postings– Small business loan rates– SEC filings (debt to earnings, profit margins)– USDA output reports– Commerce import/export reports– Bankruptcy filings– Utility usage rates / permit issuances
12Transition Management (The Employee)
• Skill set level information:– Must include incumbent and dislocated– Job titles are not enough
• Skill set mapping from industries in decline to growth sectors will lessen the impact on the workers and the community
– Ideally conducted in at-risk industries prior to layoff events
– The ultimate goal is Instant Labor Exchange
13Transition Management (The Economy)
• Regional Asset Mapping– Service providers, community and faith based
organizations, educational facilities, foundations, infrastructure
• Economic Mapping– At-risk employers, growth employers,
infrastructure needs, technology transfer (R&D) capabilities
14 Regional Innovation Grants (RIGs)
• Comprehensive, sustainable, strategic and integrated regional planning using the WIRED framework
• Available to states and locals based on a dislocation or disaster event
• $250,000 / 18-month awards• Asset mapping / SWOT analysis• Focus on leveraging and aligning
resources
15 National Emergency Grants (NEGs)
• Supplemental funds to temporarily expand service capacity – Awarded in response to significant dislocation events
• Significant dislocation events include:– Business closures, mass layoffs, Base Realignment and Closure
(BRAC) activity, FEMA disasters (public assistance)
• Categories of NEG:– Regular, Disaster, Trade-WIA Dual Enrollment, HCTC
• DW Expenditure Requirement – 70% of DW formula funds must be expended (statewide)
16 Dislocated Worker Program
• PY2006 Expenditures: $1,061,829,731– Only 65% of Total Available funds ($1.6b)
• Total Participants Served: 383,238– Total Participants Exited: 208,911
• Increasing expenditures to 80% would result in an additional 100,000 participants served
Source: PY 2006 WIA State Annual Reports and SF-269 data.
From: Layoff AversionTo: Transition Management
Subject: Action NOT Reaction
Prevention
18 Rapid Response
• Continuous / Multi-tiered effort focused on:– Planning, Prevention, Partnership
• Services providing layoff aversion in at-risk industries and companies
• Services focused on assisting dislocated workers and their employers
• Rapid Response money is very flexible– Regs and Law allow for broad range of services
• Rapid Response is responsible for serving as the key player in transition management
19 Rapid Response Expenditures
• 17 states had a lower RR fund utilization rate for PY06 than they had in PY05
– $206.7 million expended in PY06 for RR– $178 million in PY07 RR Carry-In– $440k returned to the Treasury
• Top 5 States = 48% of the total carry-in:1. NY $30 million (↓ $5m)2. CA $19 million (↓ $9m)3. OH $18 million (↑ $6m)4. PR $12 million (↑ $6m)5. PA $7 million (↓ $1.5m)
20Rapid Response is Transition Management
• Services to help employees, employers and communities deal with economic transition and economic shock
• Services through the full business cycle– Growth employers also served
• Dislocated Workers as a source of skilled workers– Ideal for seasonal employers and economies
• Protects and serves employers and employees alike• Pre-emptive services lessen the risk or impact of
layoffs– layoff aversion, sectoral risk assessments, planning
21Talent Development = Economic Development
• Sharing information on company closing and layoffs– Provides information on available labor pool and on
physical assets now available
• Sharing information of company expansion– Working to enhance business growth by providing
access to dislocated workers
• Identifying reasons companies leave and stay– Allows for change in policies, and an understanding of
competitive advantage
22 “Instant” Labor Exchange(iLEX - Information Gathering Bears Fruit)
• Skill set analysis mapped to regional economy will result in the identification of career pathways
• Short-term training with sufficient notice/awareness of layoff will allow for workers to be trained prior to actual layoff
• Real world examples already happening
All Hands on Deck:UI as a Key Partner in Transition Management
Partnering
24 UI = Workforce Development
• Workshare (Short-Term Compensation)– Allows employers to retain skilled workers (18 states)
• Self-Employment Assistance (SEA)– Allows entrepreneurship training while receiving UI– Possible linkages with ATAA and small business capitalization
waiver under WIA (9 states)
• UI Training– Allows UI claimants to participate in WIA, TAA and other training
programs to improve employability
• Additional Benefits during Training (ABT)– Additional, state-funded benefits for individuals in approved
training (7 states)
• State funds available for training purposes
Don’t Go It Alone
Partnering and Leveraging
United We Stand – It’s not about “Us” and “Them,”
it’s about serving the dislocated workers..
Partnering
26 TAA for Firms(U.S. Department of Commerce)
• Part of the Trade Act– Uses matching funds on a sliding scale
• Assistance to firms impacted by Trade– New Market Research – Marketing Enhancement– New Product Development– LEAN, ISO, MIS Improvements– Financial / Management Consulting
27 BREI(Business Retention and Expansion Intl.)
• Focus on retention and expansion of existing employers
• Traditionally has provided training for economic developers– Expanded to include Rapid Responders– Online and in person training
• Promotes “WIRED” concepts– Resource pooling between large and small
firms with regard to employee training – “critical mass”
28 ACF – Private Outplacement (Association of Career Firms)
• Linking with Private Outplacement– Provides on-demand scalability – Offers the opportunity to better assist non-
traditional users of the One-Stop system
– Leverages marketing advantages– Increases program awareness
29 Staffing Firms
• Additional Job Opportunities– Often not posted in the state’s job bank
• Allows us to assist in meeting the needs of growth employers
• “Temp” jobs are not always “bad” jobs– Often fill the need of workers to quickly re-
enter the workforce– If matched with training can serve as a bridge
to more stable employment
Rapid Response Funding: Improving Services
Actual examples of required and allowable activities that are funded through Rapid Response or activities
that could be funded through Rapid Response
DISCLAIMER: Discussion on allowability of specific activities with your Regional Office is strongly suggested. RR should only pay its “fair share” of certain activities.
Innovation
31 Rapid Response “Set-Aside”
1. State-Based NEG– Rapid Response funds used to assist local
areas in responding to events that do not otherwise qualify for a NEG
2. Gap-Filler– Covers the gap between layoff and NEG
• NEG funds used to replenish set-aside funds
3. Trade “wrap around” services
actual
32 Business Visitation Programs
• Intention is to approach at-risk employers with information on Rapid Response and One-Stop services BEFORE there are layoffs– Does not wait for first contact with employer to be in
relation to layoffs
• Link at-risk businesses with financial planning, technology planning, marketing and job training resources (layoff aversion)
• Ongoing effort, not a one-time event
allowable
33 Supplemental DW Funds
• Any local that expends 70% of their DW funds and experiences additional layoffs may apply to the state for supplemental funds
• Supplemental funds are made available from RR funds under 665.340– Same model as the Trade Reserve Funds
actual (required activity)
34 Small Business Assistance Services
667.262(b)(4) “Active participation in local business resource centers (incubators) [One-Stops] to provide technical assistance to small and new business to reduce the rate of business failure;” [added]
Possible Technical Assistance Areas (HR Related):
Resolving Conflict, Assisting Troubled and Difficult Employees, Managing Employee Turnover and Absenteeism, Supervisory Skills Enrichment (Human Resource Seminars)
allowable (discussion with ETA suggested)
35 Disaster Response
• Coordination with FEMA and state emergency management agency– Co-location at disaster assistance centers / shelters
• Job search assistance• Job order management• Temporary one-stops• NEG Preparation• To be fully prepared, states must conduct
disaster response exercises
actual
Summary
Planning
Prevention
Partnering
37 Planning
• RIGs can provide resources to allow for the development of strategic plans to address dislocations and transition– Most activities also allowable under other WIA funds
• Information Gathering is essential– Allowable and required under WIA– The more information available, the better a region’s
ability to transition their workforce• The Employer• The Employee• The Economy
38 Prevention
• Rapid Response– “Instant” Labor Exchange– Services Prior to Layoff
• Business Visitation Programs• At-Risk Sectoral Analysis• Skill Set Mapping
– Services to Growth Employers• Linkages with Economic Development
39 Partnering
• Internal Partners– UI, Apprenticeship, Job Corps, Older Worker Program
• External Partners– BREI (Economic Development)– TAA for Firms (Economic Development)– USDA– Outplacement Firms & Staffing Firms– Educational Institutions– Employers– Many, many others…
40 Innovation
• Push the Envelope– Break down local and state barriers to
innovation
• Embrace Innovation– Dislocated workers are depending on you!
• Talk to the Feds– No really! We know people dealing with the
same issues that you are.
41 Websites
2006 Rapid Response Summit Presentations:http://rrsummit.workforce3one.org/sessions.cfm
ETA – Layoffswww.doleta.gov/layoffs
ETA – WIREDwww.doleta.gov/wired
42 Questions?
43 Thank You!
Timothy Theberge
ETA Region 1 - Boston
617-788-0139
Lee Reynolds
ETA Region 1 – Boston
617-788-0130