MCKINSEY SOCIAL INITIATIVE

Transcription

1 Generation Overview

2 MCKINSEY SOCIAL INITIATIVE 4 GENERATION OVERVIEW Established in 2015, Generation seeks to close the skills gap for young people. Our mission is to empower young people to build thriving, sustainable careers and provide employers the highly skilled, motivated talent they need. Our vision is to enable a careerlaunching job for every young person, anywhere in the world 2

3 WHAT IS GENERATION? Generation is built upon deep research into the best ways to address youth unemployment TODAY McKinsey & Company study of 150 employment programs in 25 countries, and surveys of over 15,000 employers, educators, and young people Education to Employment: Designing a System that Works report summarizes findings Independent nonprofit McKinsey Social Initiative (MSI) founded by McKinsey & Company Youth unemployment chosen as first issue for MSI: Generation is born. Generation is live across five countries (India, Kenya, Mexico, Spain, and US), with rapid expansion on the horizon 3

4 HOW WILL WE ACHIEVE OUR GOALS? Generation addresses two areas of need for the youth employment field 4

5 WHAT IS GENERATION? What kind of jobs do we target for our students? High growth industries and/or high employer demand Medium skill level required, possible to fully train in a 5-12 week program Provides a livable wage (i.e., above local minimum wage) and viable career Interesting and attractive to young people in our target population Marked by high scarcity or high churn, so that employers are committed to closing the existing skills gap 5

6 GENERATION OVERVIEW Generation s programs are designed to create disruptive impact along the value chain Generation Interventions Industry Gaps Mismatch in demand and supply Direct employer engagement right from the start to precommit job slots in highdemand/scarci ty middle skill professions Low relevance for employers Detailed activity and skill mapping at employers; curriculum designed that weaves together technical, behavioral and mindset skills Limited screening for learners Recruit students based on basics (e.g. literacy, numeracy), intrinsics, and motivation Inadequate learning during training Rapid delivery through 4-12 week bootcamps; quality of instruction managed through weekly performance checks, in-class cameras, and remote coaching Unresolved student pain points Social support services for those in need, mentorship during and after training, and mapping students to jobs based on where they live Business case not established Employer ROI performance (productivity, quality, retention) tracked at place of work, as well as graduate ROI (personal and financial well-being) via Gallup MCKINSEY SOCIAL INITIATIVE 6

7 GENERATION OVERVIEW The Generation approach has seven components 1 Jobs & direct employer engagement from the start Return on investment for employers, students, and society Recruit students based on intrinsics, effort, and employment standards for the profession 5 Data at the center 3 A community that follows graduates into the workplace weeks of technical, behavioral, mindset & professional presence skill training Social support services & mentorship along the way 7

8 GENERATION OVERVIEW Generation runs six programs across ten US cities Current cities and programs Current cities San Francisco, CA San Jose, CA Las Vegas, NV Wilmington, DE Washington DC Birmingham, AL Atlanta, GA Houston, TX Jacksonville, FL Healthcare Certified nursing assistant Customer service Customer service rep Hotel front desk clerk Information Technology IT Help Desk technician Miami, FL Craft professions Construction helper Call center operator Generation continues to develop new programs, and can launch an entirely new profession in weeks 8

9 GENERATION OVERVIEW Generation US has graduated over 81% of enrolled students and placed 85% of those grads in jobs, with 87% retention at three months post-placement Enrollments Training sites Cohorts Professional programs 307 Employer Employment rate partners 81% 85% 87% Graduation rate Retention rate at three months MCKINSEY SOCIAL INITIATIVE 99

10 GENERATION OVERVIEW Generation US works with disconnected youth who face a range of barriers to employment and well-being The typical Generation student Generation US student pool overall Gender Female 58% female, 42% male Race African-American 68% African-American, 17% Hispanic or Latino, 7% Asian-American, and 7% Caucasian or other Age 22 years old Range from 18 to 29 years old, with the average being 22 years old Marital status Single 87% single, widowed, or divorced; 13% married or in a relationship Family May have children 31% have children; that 31% on average has 1.74 children Education High School diploma or GED, but no higher education 4% have no high school diploma or GED; 62% have completed high school or GED only; 22% have some higher education; and 12% have completed some form of higher education Income Earning $746 per month and receiving government assistance Average income is ~$9k annually; 99% of single parents are legally in poverty before the program MCKINSEY SOCIAL INITIATIVE 10 6

11 GENERATION US IMPACT TO DATE Generation delivers a positive ROI for US graduates ROI for graduates (data gathered by Gallup and Generation) Certifications Income Well-being Generation graduates outperform peers in certification exams For CNA, graduates have a 93% certification pass rate compared to a 50% national average For IT, graduates have a 75% certification pass rate compared to a 33% national average 1 For construction, graduates have a 100% pass rate Generation graduates income increased by 2.5x after the Generation program The average Generation US student s income increased from $746/month before Generation to $1,800/month after Generation The majority of Generation graduates earn above average income relative to the US national youth population Generation graduates report higher well-being than their peers Gallup s well-being survey of Generation graduates and their non-generation peers shows that Generation graduates are twice as likely to report that they are thriving in terms of life purpose 1 Comp TIA A+ Certification MCKINSEY SOCIAL INITIATIVE 11

12 GENERATION US IMPACT TO DATE Generation demonstrates ROI for employers ROI for employers (data gathered by Gallup and Generation) Financial ROI Supervisor satisfaction 1 Generation graduates add value to employers bottom line through several levers Hiring and onboarding: Employers save ~50% of hiring and on-boarding costs Productivity and performance: The majority of our graduates are rated as good or best performers (85% in customer service, 76% in CNA) Retention: Generation graduates have higher retention rates (59% retention after 6 months in customer service, compared to 50% industry average) 94% of supervisors would recommend their employer hire Generation graduates again 83% of Generation graduates were ranked above average relative to non-generation employees with similar levels of experience 93% of graduates were recognized for complying with safety/regulatory practices 82% of customer service graduates were significantly better at establishing a warm and welcoming environment according to supervisors Tax Credits: 50% of graduates qualify for the Work Opportunity Tax Credit, worth $2400 in year one and an additional $9600 after year two For CNA, each Generation graduate yields ~$5,300 in value to the employer in the first year 2 For call centers, each Generation graduate yields ~$3,800 in value to the employer in the first year 12

13 GENERATION US IMPACT TO DATE Our Customer Service program has run in eight cities across the US with over 600 graduates Program Description Our coalition Curriculum details 5-week training for 25 students, delivered as General Customer Service or for specific industries Graduates placed in retail, hospitality, and call centers The Wal-Mart Foundation and multiple philanthropies have supported this program, for entry-level and incumbent workers Technical skills for customer service: Safety standards, cash handling, workplace oversight, people leadership Behavioral skills for customer service: Professionalism, adaptability, communication, and teamwork Mindsets for long-term success: Growth mindset, personal responsibility, future orientation, persistence Specific simulations in the program: Helping an upset customer, cross-selling and up-selling, multi-tasking while engaging customers Graduates to Date Graduation rate Placement Rate % 84% 1 Includes graduates both employed and enrolled in higher education 13

14 GENERATION US IMPACT TO DATE Our IT Helpdesk program has run successfully in Jacksonville, Miami, San Jose, and Birmingham Program Description Our coalition Curriculum details week training for 25 students taught by a certified instructor Graduates earn certification in CompTIA A+ and Network+ Miami funded by TechHire grant in partnership with Miami Dade College Birmingham funded by America s Promise Grant in partnership with University of Alabama Jacksonville program funded for three years by CareerSource of Northeast Florida Hardware skills: Inside of a computer, motherboards, CPUs, RAM and memory, printers, hard drives and peripherals, mobile devices, laptops Software skills: Installing and configuring Windows, cloud computing, mobile operating systems, configuring , security settings Behavioral skills: teamwork, adaptability, customer focus, communication Mindsets for long-term success: Growth mindset, personal responsibility, future orientation, persistence Customer service skills: Tickets and ticketing systems, prioritizing and elevating tickets, addressing a client, client-friendly communication, assisting an upset client Graduates to Date Graduation rate Placement Rate % 90% 14

15 GENERATION US IMPACT TO DATE Our CNA program has run successfully in Wilmington, Pittsburgh, and San Jose Program Description Our coalition Curriculum details 8-week training for 16 students taught by certified CNA instructors, including 80 hours internship in a healthcare facility Graduates earn certification to be nursing assistants Delaware WIB, local philanthropies, and local employers are funding programs for 120 graduates in the next 18 months CNA Technical skills: Lab equipment and beds, fluids, oxygen needs, wounds, emergencies, end of life care Behavioral skills for CNA: Compassion, teamwork, adaptability, professionalism, communication, emotional consistency Mindsets for long-term success: Growth mindset, personal responsibility, future orientation, persistence CNA Fundamentals: Patients' rights, flow sheets, safety, hygiene Graduates to Date Graduation rate Placement Rate % 89% 15

16 GENERATION US IMPACT TO DATE Our Craft Professions program has run successfully in Houston Program Description Our coalition Curriculum details 4 week training for students taught by a certified instructor Graduates earn NCCER Core certification (and OSHA-10 certification if desired in region) The United Way, the Greater Houston Partnership, and the local WIB are supporting / funding the program 8 employers are also supporting the program (committed to hiring and interviewing graduates) Technical skills: Construction math, Safety rules and protocols, Power tools, Material handling, Hand tools, Construction drawing Behavioral skills: communication, proactivity, teamwork Mindsets for long-term success: Personal responsibility, future orientation, growth, persistence Graduates to Date Graduation rate Placement Rate % 89% 1 The first cohort graduated in Winter 2016 and are being placed now 16

17 LAUNCHING AND SUPPORTING GENERATION Case study: Generation exclusively places CNAs with one employer in Delaware Employer context Impact of Generation partnership Hiring: Recruiting enough CNAs required significant time investment of recruiters (e.g., hundreds of applications, frequent interview no-shows, 1:5 offer to interview ratio) Performance: Frequent customer complaints resulting from CNAs with under-developed soft skills, low ownership, and lacking teamwork Turnover: 75% turnover, with top-performing CNAs leaving to work at other employers for more pay and a better culture Hiring: Recruiters save significant time because they have predictable pipeline with a 4:5 offer to interview ratio Performance: 71% of Generation graduates outperform their peers, and 96% of shift supervisors recommend hiring from Generation again. Generation graduates particularly regarded for their soft skills and teamwork Turnover: 11% turnover of Generation graduates at 90 days. Employer now offers annual bonuses to retain Generation graduates Tax Credits: 50% of Generation graduates qualify for Work Opportunity Tax Credits, worth $2,400 in the year of hiring and $9,600 after two years of retention Sustaining success Our employer partner now pays 40% of the cost of training per hire Employer engages closely in helping to select and prepare students during the program 17

18 LAUNCHING AND SUPPORTING GENERATION Case study: Generation builds recruitment, training, and retention platform for national employer of direct support professionals Employer context Hiring: Employer cannot recruit enough direct support professionals 1 (DSP) Performance: New DSPs consistently felt underprepared by existing training program, threatening client satisfaction and safety Turnover: High turnover drives 30% of labor cost going to overtime pay Employer need: Given the breadth of needs throughout the company, this employer contacted Generation to provide an end-to-end solution Impact of Generation partnership Hiring: Generation is working with employer s staff to build a recruitment model that can attract opportunity youth to the company Performance: Generation is designing a custom curriculum to train for this role, based on observations of best practices and breakdown moments, as well as interviews with top performers and their managers. The curriculum will integrate the technical skills, soft skills, and mindsets students need to be topperformers Turnover: Generation training employer s staff to mentor employees to help them overcome barriers to retention Sustaining success Via a 3-cohort pilot, Generation will refine the curriculum and methodology to deliver sufficient financial impact to cover the cost of training Following a successful pilot, this program will be scaled throughout New Jersey, then to Pennsylvania and eventually nationwide 1 Direct Support Professionals work with people who have cognitive disabilities. Tasks vary based on the client, but include helping with everyday tasks like shopping, anticipating and navigating challenging situations for the client, and ensuring the safety and well-being of the client, including practicing physical restraint if necessary 18

19 OUR PARTNERS Our funders and employers nationwide Funders Employers 1 1 These employers have hired at least 3 Generation graduates 19

20 WILL YOU BE PART OF THE CHANGE? Help us change a million lives, and bring vibrant new talent into our workforce for the long term. Change lives. Transform business. Make Generation a movement. MCKINSEY SOCIAL INITIATIVE 20