health careers collaborative of greater cincinnati

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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 lawra.baumann@cincinnatistate.edu

Alan Jones jonesar@live.com

Christopher Spence cspence@newgrowthplanners.com

Joel Elvery j.elvery@csuohio.edu