Economic & Workforce Development Strategies Connecting Employers to Qualified Jobseekers

Michael BakerManager – Strategic Planning & InnovationOffice of Employment & TrainingIllinois Department of Commerce & Economic OpportunityJune 26, 2015Slides may be shared or reused so long as the author is given credit.

WHAT’S THE UNIFYING POINT?

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ECONOMIC PROSPERITY

Access to skilled workers

Access to good paying, career pathway jobs

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Data Driven

• Supply / Demand Baseline

• Labor Market Information

• Population DemographicsEmploye

r Demand

Driven

• Employer Pull Model• Sector Partnerships

Accelerated

• Lean Principles• More Value-Added• Less Non-Value-Added

FOUNDATIONAL STRATEGIES

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DEMANDLabor Market Info

US Bureau of Labor Statistics & Regional Employers

Industries No. EmployersNo. Employees

Occupations No. Openings:New & Replacement

Commuting Patterns

SupplyEducation & US Census

Annual Education Production

K-12Industry Recognized CredentialsAssociate’s DegreeBachelor’s & Beyond

Population Demographics

Average AgeGenderEthnicityEducational Attainment

1. DATA DRIVEN-Start with Baseline Analysis

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Employer Pull Modelvs.SupplierPush Model

What OccupationsCompetencies

Where Proximity to labor pool & training providers

When Expected hire datesCycle

How Many

Quantity by title or competencies(credentials)

2. EMPLOYER DEMAND DRIVEN

Train & Pray

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IF: Employers own the processTHEN: Employers will invest in solutions… for as long as they perceive a good ROI

Neutral Convener• Establish trust

• Avoid turf wars

Sustainable Connection Through Employer-Led Sector Partnerships

Sector Partnership-Based Employer Engagement4 KEY QUESTIONS TO WORKFORCE PARTNERS

Neutral ConvenerNeutral Facilitator

Sector Strategies Recipe:Equal Parts Science & Art

3 VITAL Topics for Sector CEOs to Consider90 Minute Launch Meeting 3-100 Sector Employers

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Think LEAN Only Value-Added ActivityEliminate anything NOT of valueOpen Entry Timing to meet employer demand not calendar

DACC–cohorts of 2 students

Leverage existing skills No time in class retaking content already masteredOpen Exit Allow exit upon proof of competencyCredit/ Non-Credit Degree vs. Stackable Industry Credentials Curricula approval in WEEKS / Cross college sharing

Paid OJT & Internship Work-Based Learning accelerates time to earnings

3. ACCELERATION STRATEGIES

Work-Based Learning: InternshipsEmployers – Try Before Buy

• Reduce uncertainty & hiring risk• Assess soft skills & trainability• Value-added work• ROI – impacts profit

Jobseekers – Learn & Earn

• Boosts ability to stay in training• Gain value-added experience• Opportunity to assess & improve soft skills• Can coordinate with IDES staff to preserve benefits 12

Work-Based Learning: On-the-JobPersonalized skill gap analysis for the position

they are entering

Devise Training Plan With Employer

• Description of the method of training and how it will be delivered• Estimated number of hours for each skill• Job description• Start and completion dates• Method of supervision provided and who is responsible

Employer hires then trains

• Wage reimbursements 50-75% while in OJT13

Work-Based Learning: Incumbent Worker

Employer Benefits - ROI

• Upgrade the skills of current workers• Proprietary training OK• Cross-Training• Improve productivity• Expand into new lines of business• Provide upward mobility• Retain key employees• Reduce uncertainty & hiring risk• Increased Profit• Easy way to engage with workforce

system

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Industry Recognized Stackable Credentials& Embedded Employer-Level Soft Skills

NIMS

MSSCCPT/CLT

AWS

APICS

Nationally portable

Provide known skill sets

Reduces uncertainty of technical qualifications

National Institute of Metalworking Skills

Mfg. Skills Standards Council

American Welding Society

American Production & Inventory Control Society

------------------------------- Include Work Readiness

Training with Skill Training

Arrive on time

Attendance

Attitude

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PersonalizedTraining Plan

Career Exploration

Skill Gap Analysis

MSSC Safety Credential

Client Workflow

Everyone As Needed

RECENT EMPLOYER TESTIMONIALS

“Working with LWIA 23 for OJT was a huge benefit for not only Hella, but also for the three employees we hired full time. Living in a small community can be a disadvantage when it comes to finding employment opportunities.

By using this service, we were able to fill job openings in which technical skills are a requirement. I especially want to thank the staff at LWIA 23. They made this an easy process and I truly enjoy working with these ladies.”

Becky L. TraubHR GeneralistHella Corporate Center USA, Inc.Flora

“Working with our local workforce office has helped make implementing the OJT program an easy part of our everyday hiring process. It’s something that our managers have embraced and is truly a wonderful program… Not only because of the benefits we as a company receive – that’s just a small part of it; but primarily because of the extra support and incentives our new hires have to guide them through their transition back into the workforce.

It benefits everyone involved & has been a smooth process for us.”

Leah Bolander  | HUBRecruiterPatterson Technology CenterEffingham

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KEY TAKEAWAYS – BY THE NUMBERS

4 weeks from first phone call from employer to first enrollment at community college

1 week for curricula approval through both local board and state board

16 hours transferable credit in 8 weeks

15 in first cohort

100% completion rate

100% hired

$14.32 / hour – regional median wage$ 9.27 / hour – regional avg. starting wage

$16.00 / hour – NAL starting wage$17.00 / hour – After 6 months$18.00 / hour – After 12 months

Dozens – obstacles identifiedZero – obstacles that stopped the project

QUESTIONS FOR EMPLOYERS & ECONOMIC DEVELOPMENT LEADERS…

1. Are you satisfied with the quality & quantity of job applicants?2. Do you track the cost of replacing workers or filling new positions? 3. Do your workers have all the skills they need?4. What key competencies do you need in your workers?5. What industry recognized credentials do you know & value?6. What is the source of your “good applicants”?7. What is the quality of graduates from regional training providers?8. How responsive are regional training providers?9. Are your hiring requirements for each position in line with what you really need?

10. How far ahead can you predict when you will need more workers?11. Have you considered the benefits of “growing your own” talent via internships?