You can do THAT with Rapid Response? Response! The WIOA Update: From May to Shall and how Illinois approached this challenge

Transcription

1 You can do THAT with Rapid Response? Response! The WIOA Update: From May to Shall and how Illinois approached this challenge

2 Overview and Introductions Patrick Campbell Illinois Department of Commerce, Office of Employment and Training, Program Development Introduction and background of Rapid Response funding flexibility and Illinois use of those funds through initiatives that contributed to the development of projects. Dr. Norman Ruano St. Augustine College, Vice President for Workforce Development St. Augustine s use of the Talent Pipeline funding via Layoff Aversion and Risk Analysis to engage business. Success stories and partnerships that have been developed. John Barr Illinois Department of Commerce, Office of Employment and Training, Fiscal and Planning The use of Rapid Response funds for Trade Case Management, 1E, Sector Specialists, Talent Pipeline, and Work based learning/ Apprenticeships. Open Panel And Audience Discussion On Other State Strategies Do Not Reinvent the Wheel, Be Resourceful 2

3 Overview Do your homework and be prepared to make a mind shift!

4 Reactive vs. Proactive Job Training: Transactional Individual Jobs that exist NOW Immediate results Workforce System operates more independently Talent Development: Strategic Sector focused Retention, Expansion, Future Longer-term, sustainable results Operates with and through partners Transformative in nature 4

5 The Transformational Model Regional / sectoral asset mapping [WIOA Sec. 107(d)(2)(C)] Local Workforce Development Boards [WIOA Sec. 107] Analysis of skill sets of at-risk workers, compared to skill sets in demand. [WIOA Sec. 107(d)] Engage partners to develop a shared vision. [WIOA Sec. 108, Sec. 106] Define pathways for workers to transition into demand occupations. [WIOA Sec. 107(d)] Partner, partner, partner 5

6 Statutory and Regulatory References Statute Sec. 3(51) Definition Sec. 108(b)(8) Local Plan Sec. 134(a)(2) Required Statewide Activities Trade Act, Section 221(a)(2)(A) Regulations 20 CFR 682 Subpart C 20 CFR et. seq. 6

7 Prevention Layoff Aversion. Is. Now. Required. 20 CFR (a)

8 Background The State engaged the DOL Apprenticeship Office to determine how to expand work-based learning to businesses (demand) and participants (supply) Sought to maximize the State s workforce development funds Incorporate funds into work-based learning and apprenticeship programs, thus creating an ROI for employers Evolved into Talent Pipeline Management Grant Culminated in the creation of the IWIB Apprenticeship Committee focused on Career Pathways and work-based learning and supported by a Business Engagement, System Support, and Marketing sub committees 8

9 Understanding Workforce Challenges 9

10 Layoff Aversion Under WIOA strategies and activities to prevent or minimize the duration of unemployment resulting from layoffs. assessment of the needs of and options for at-risk firms, and the delivery of services to address these needs ongoing engagement, partnership, and relationship-building activities with businesses in the community Developing, funding, and managing incumbent worker training programs

11 Incumbent Worker At-Risk Indicator Descriptions There are various strategies to consider when averting closures or business failures to ensure job retention. The first step in determining the appropriate layoff aversion strategy is to understand the at-risk indicators. In many cases, more than one at-risk indicator will apply to a given event. Below are some of the at-risk indicators Illinois has identified to determine if a business is in need of intervention. Declining sales - A company has undergone or will undergo (must be confirmed) a significant loss in sales that puts part of their workforce in threat of layoff. Declining sales must be expressed in terms of X dollars or Y units for Z period of time (months or years), along with information that provides known or suspected reasons for the decline. When determining if a decline in sales is the cause of a potential layoff, have considerations been given to the industry as a whole; is the decline a percentage of the market; has product quality, production delays, or pricing contributed to the decline in sales, etc. Supply chain issues - A company loses a supplier or consumer that threatens the employment of part of their workforce, or acquired a new supplier that requires new skills to maintain the workforce. Supply chain issues must be accompanied by an explanation as to why the change occurred. When determining whether a supply chain issue will contribute to a potential layoff, have considerations been given to other suppliers ability to provide same or like products, has the company considered alternative product(s) production and sales that would not require retraining of staff or layoff, can the new training required be conducted by the new supplier, etc. Supply chain issues must be supported by documentation of the factors causing the supply problem. Industry/market trends - The industry/market standards have changed to the point where new training is needed to retain the current workforce. For example, have the employer s customers asked for production or delivery of products to be handled in a specific way that requires skill upgrade training? When considering whether industry/market trends may cause a potential layoff, has the company consulted with industry experts to determine if assistance is available to assist with upgrades to the manufacturing process or employee knowledge, or contacted other companies in the industry to share upgrades in skills training or equipment, etc. 11

12 Incumbent Worker At-Risk Indicator Descriptions Changes in management philosophy or ownership - A company has undergone a new approach to conducting business or new ownership requires new skills to maintain the employment of part of the workforce. Changes in ownership are generally the result of a lack of profitability, but may also occur where a company is profitable, but not profitable enough (this level of profit may meet the profit requirements of another owner) or the current owners do not have the resources to take advantage of new business strategies. An owner may also pass away unexpectedly without a succession plan in place. New or changes in philosophies will generally accompany new ownership. Changes in philosophy may also occur when operations no longer meet their core business application or are viewed as excess capacity to their overall operations. When considering changes in ownership or philosophy as the cause of a potential layoff, has new ownership been determined (including such options as employee stock ownership plans), have alternatives been considered in the restructuring of the company that might reduce the number of layoffs, have community groups and labor organizations been involved in the discussions to lend their expert advice, etc. Worker does not have necessary skills - A worker s skills or functions are no longer relevant to the employer s production process and the worker is at risk of losing their employment without undergoing training to acquire new skills. A lack of necessary skills may be the result of a change in philosophy or product line or a change in the industry demands that results in the need for new technologies and abilities by the current workforce. Products and production lines are ever changing as they adapt to the needs of the market. With this change comes a need for evolution of the skill set of the workers. When considering if the lack of necessary skills is the cause of potential layoffs, has it been determined which workers have the ability to attain new relevant skills, are there other considerations to be made with an increase in skills such as new equipment / machinery needs or safety devices, etc. Strong possibility of a job if a worker attains new skills - The worker is in a position that is subject to layoff, and by acquiring new skills training he/she can move into a position that is not subject to layoff. New skills attainment may avert a layoff for individuals within a company or may make them more attractive to other companies. When considering whether the new skills will provide a strong possibility to prevent layoffs, what considerations have been given towards where the positions would be moved (in-house or with a new company), does the company have the capacity to expand another line of product (new or existing) to support the workers subject to layoff, has the business community shown a need and capacity for additionally trained workers, are the workers willing to relocate if the new opportunities are with another location of the same company or with a new company in a different locale, etc. Other at-risk indicators - Additional causes for potential layoffs may exist that the company and local area need to outline in making a case for assistance for incumbent workers. There may be other criteria that the Local Workforce Investment Area (LWIA) can gather with the consultation of the employer that puts part of their workforce at-risk for layoff (e.g., trend in company layoffs). 12

13 Importance of Partnerships The development of partnerships should result in the following goals: To connect with businesses that need this training for their workforce To connect with organizations that can facilitate or provide skill upgrade training to these workers Industry & Business Associations Community Colleges Public-Private Partners Local Workforce Agencies 13

14 Illinois Talent Pipeline Program Projects funded under the Illinois Talent Pipeline program are intended to develop sustainable work-based learning programs to help Illinois companies retain and train current workers and hire new staff. Applications considered for funding address one or more of the Illinois Talent Pipeline initiatives listed below: 1. Projects that connect talent strategies with business needs. 2. Layoff aversion projects that support businesses and workers that are impacted or at risk of being impacted by company closures or layoffs. 3. Projects that expand work based learning opportunities including apprenticeships for targeted populations. 14

15 Illinois Talent Pipeline Program Looking to maintain a pipeline of hirable talent for your business? Looking to hire new employees and train them your way? On-the-Job Training assists with the costs of training new employees. The employer agrees to hire, train and retain an individual who successfully completes the training. Illinois will match qualified applicants with job openings and refer them to you (you hire or not hire as you normally would). As the employer, you may be reimbursed an amount for training costs that is up to 75% of the new employee s wages during the training period. 15

16 Illinois Talent Pipeline Program Thinking your business may be atrisk and in need of an investment in training employees to meet demands of changing technology or work environment, such as new production machines? Incumbent Worker Training can help a business mitigate at-risk factors such as declining sales, supply chain issues, adverse industry or market trends, changes in management philosophy or business ownership by providing training to current employees who may not have all the necessary indemand skills. As the employer, you can be reimbursed up to 90% of Incumbent Worker training costs. In so doing, you can avoid the high cost of re-hiring. Good fit for your business? Let s see: Does your business operate year-round? Are employees paid an hourly wage or salary equal to or more than minimum wage? As employer, do you want an opportunity to train employees your way and realize the benefits of investing in employees? We at the Illinois Department of Commerce would like to listen to how your business can 16 benefit from Illinois Talent Pipeline workforce training grants.

17 Illinois Apprenticeship Plus Framework 17

18 Regional Navigators Knowledgeable about apprenticeships and workforce development/solutions Understand the employers needs (demand) and the educational programs and other services available (supply). Working with each requires understanding how the pieces fit for apprenticeship. Foster the development of partnerships, get people to the starting line, holds their hand guiding them through the process The Apprenticeship Point of Contact for the region Demystify the process & decrease the amount of time to start a program Support development of innovative programs and practices Increase access and diversity for targeted populations 18

19 Intermediaries Serve as the sponsor, managing the program: Support the registration of new programs with the USDOL Office of Apprenticeship Share or utilize resources from community colleges or other organizations for process acceleration that help stakeholders rapidly embrace programs; this includes sharing curricula and standards Aggregate the needs of small employers within an industry Identify champions and coaches for apprentices, employers, and faculty Target underrepresented population(s) and creating a plan for outreach, wraparound supports and accommodations Support the development and expansion of apprenticeship program in non-traditional industries, employers and occupations. Develop the program design and coordinating the program activities including the recruitment, assessment, case management, related technical training, work-based training, supportive service and placement of participants 19

20 Dr. Norman Ruano Business Engagement & Rapid Response The primary customer of the workforce development system is business.

21 Business Engagement is: Solution-Based Approach for Managing Transitions in an Evolving Economy. Addresses the needs of employers, workers, and community through development of ongoing strategies to ensure long-term economic stability and growth Employs strategies gained from expertise, perspectives, and engages an extensive network of partners and stakeholders Focused Effort/Sector Strategies 21

22 Speak the Language of Businesses 22

23 Real-World Rapid Response Business Visitation Programs Skills Gap Analysis Rapid Response Set-Aside Small Business Assistance Services Disaster Response Temporary Transition Centers Transitioning Service Members Community Transition Teams 23

24 Business Visitation Programs Approach at-risk (and growth) 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 Links businesses with financial planning, technology planning, marketing, and job training resources (layoff aversion) TAA for Firms, Commerce, Economic Development Ongoing effort, not a one-time event Focus on small to medium sized employers first Business Services Layoff Aversion 24

25 Skills Gap Analysis / Hiring Assessments Skills Gap Analysis Provides actionable intelligence prior to layoff Allows local workforce system to develop and deploy strategic planning efforts ahead of layoffs Should focus on at-risk (and growth) employers and/or sectors Hiring Assessments Examines compensation packages of growth employers to determine competitiveness Examines educational and experience requirements versus available labor pool Business Services Layoff Aversion 25

26 Who is IWE? The training division of St. Augustine College a private fully accredited non-profit college Largest college-based workforce development training provider in the State of Illinois. In the last 9 years: Delivered more than 2,600 courses to over 675 companies Trained over 13,000 workers from construction, healthcare, manufacturing, non-profit, and service organizations Provider of fully customizable onsite training services (training is offered in English, Spanish, or Polish), both incumbent worker or employment training/workfit 26

27 Employer Engagement, Needs Analysis, and Training Proactive outreach to employers through a team of Outreach Specialists focused on growing sectors of the economy First, conduct a Training Needs Analysis (online questionnaire, focus groups, and job analysis) to understand employer needs and customize a training curriculum and logistical plan Match employer, based on needs, with funding sources Example: Conduct Risk Assessment to determine eligibility for DCEO Talent Pipeline funding or other funding mechanisms Apply for and manage funding for company/project some projects may require a braided funding approach Deliver training and report on outcomes for program 27

28 History with Talent Pipeline Programs and Case Studies IWE provided its first Talent Pipeline project in 2013 Since then more than 60 companies have participated, 1,200 courses were delivered, and over 3,000 students trained Sectors served: Manufacturing (particularly food manufacturing), Construction, Healthcare, and Service Success rate: 95% (organizations that successfully executed their projects) Case studies: Accord Carton (98% of trained staff retained employment and 79% received a wage increase) 28

29 John Barr The use of Rapid Response funds for Trade Case Management, 1E, Sector Specialists, Talent Pipeline and Work based learning/ Apprenticeships. 29

30 Conversion of Rapid Response Funds to Statewide Activities Funds Follow the money.

31 Reallocation of Rapid Response Funds WIOA Sec. 134(a)(2)(A)(ii) Rapid Response funds that remain unobligated at the end of the first Program Year may be reallocated as Statewide Activities funds Funds are then available for the remaining 2 years to be expended under: o (2)(A) Rapid Response, or o (2)(B) Required Statewide Activities, or o (3)(A) Allowable Statewide Activities 31

32 Small Business Assistance Services Human resource consultation services Possible Technical Assistance Areas (HR Related): Writing/reviewing job descriptions and employee handbooks Developing performance evaluation and personnel policies Creating orientation sessions for new workers Honing job interview techniques (of employers) for efficiency and compliance Analyzing employee turnover Explaining labor laws to help employers comply Business Services Layoff Aversion 32

33 Disaster Response Full complement of allowable services not completely defined in regulations Could allow for operation of mobile or temporary one-stops Should be coordinated with FEMA and the State EMA o Co-location with these agencies should be a priority Assist workers in accessing DUA and other benefits and services Assist employers in reopening Beware of restriction on employment generating activities Pre-planning activities also allowable Responding to disasters is a REQUIRED Activity Business Services Layoff Aversion 33

34 Temporary Transition Centers Ideal for large-scale layoffs, in locations away from existing one-stops or in disaster scenarios Most successful if placed onsite or near-site Engage the employer to seek financial contributions to the services Employer funds are non-restricted Must include community partners Food banks, heat and rental assistance, other social service agencies and community and faith-based organizations All costs for operations are allowable under Rapid Response Staff can be from multiple programs: WIOA, ES, UI, etc. 34

35 Transitioning Service Members Transitioning service members are, by definition, dislocated workers Services should be coordinated with VETS, Defense, VA, etc. Full range of services available to civilian dislocated workers are available to transitioning service members See: Layoff Aversion 35

36 Technology Crosswalk skill sets of impacted workers to regional economies REMI, EMSI, TORQ, etc. GIS solution to map dislocations, growth employers and available resources Laptops, cell phones, etc. for Rapid Response staff Mobility and connectivity are two key aspects of strong rapid response services NOTE: Mention of a particular product does not constitute and endorsement thereof. The Department of Labor does not endorse particular products or vendors. Business Services Layoff Aversion 36

37 Community Transition Teams Comprised of a variety of community members Includes staff from Congressional and other elected official offices Ideally lead by Community Action Partner Develops Local Resource Guide Faith and Community Based Services Access to Mental Health Services Other Government Agency Services Layoff Aversion 37

38 Community Transition Teams Provides non-employment and employment-related workshops Budgeting Pension and Retirement Coping with Change Health Care Options Holds community and fundraising events Funds used to pay for life expenses not covered by WIOA supportive services Layoff Aversion 38

39 Wrapping Up FINAL THOUGHTS

40 Grass Roots Innovation: Looking for good ideas Regional and local workforce practitioners have incredible potential to spur innovation because they can most easily see what needs fixed. Does your team ever ask, Why hasn t anyone tried? Do you have the desire to improve your community s pool of skilled workers and employment opportunities? Do you believe your ideas could make a difference for businesses and workers? Our goal is to identify and test promising practices, from incremental adjustments to sea-change approaches in: Sector Partnership Projects Innovative Workforce Pilot and Research Projects Priority Population Projects Statewide Technical Assistance 40

41 Tell Your Story Stakeholders need to know who you are and what you do Employers can be your best champions Your data matters and is valuable to others (and yourself) At the end of the day, this has to be about more than feeling good about what we do. o If it is not, someone else will get the resources o See: new recapture provisions 41

42 The Data You Need (At Least) Employers served; Dislocated Workers served Layoffs averted; Reduced Weeks of UI Claimed Savings to the UI Trust Fund in Dollars and Duration Savings to the social services system Lack of loss to tax base Jobs Created / Retained 42

43 The Bottom Line What you do (and how you do it) makes a difference in the success (or failure) of your local economy If you do not do it, no one else will. There may be duplication elsewhere in government, there is only one Rapid Response system You are America s Economic Backstop 43