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Reworking Workforce Development: Chicago’s Sector-Based Workforce Centers Dave Hanson and Jeff Marcella Chicago Department of Community Development Greg.

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Presentation on theme: "Reworking Workforce Development: Chicago’s Sector-Based Workforce Centers Dave Hanson and Jeff Marcella Chicago Department of Community Development Greg."— Presentation transcript:

1 Reworking Workforce Development: Chicago’s Sector-Based Workforce Centers Dave Hanson and Jeff Marcella Chicago Department of Community Development Greg Schrock UIC Center for Urban Economic Development National Network of Sector Partners “Webinar” 7/30/2009 1

2 Presentation Overview Chicago’s Sectoral Initiatives: Background – Dave Hanson and Jeff Marcella Evaluation: Key Findings, Challenges and Implications – Greg Schrock Recommendations and Responses – Hanson, Marcella and Schrock 2

3 Chicago’s Sector Centers: Development Regional Industry Summits Chicago Workforce Board Sectoral Committee discussions (2004) Research on models elsewhere Industry input (national and local associations) State of Illinois “Critical Skills Shortage Initiative” (CSSI) regional analyses and project plans by Workforce Boards of Metropolitan Chicago City request for proposals and selection of ManufacturingWorks and ServiceWorks (2005) Launch of Chicago LEADS and sector initiatives in multiple industries (2008) –TDLWorks, HealthWorks, GreenWorks… 3

4 Chicago’s Sector Centers: Vision Develop a demand-driven workforce system for the City’s workforce system, WorkNet Chicago Employer as the main customer One stop shopping for business – cut through government bureaucracy! Centralize workforce system expertise in a targeted industry sector Hub for WIA system recruiting and training within the industry sector Teach “supply” side of WorkNet Chicago about industry hiring needs, assessment/suitability, training options, etc Develop innovative training and placement programs in partnership with employers 4

5 Chicago’s Sector Centers: Partners  Public Workforce System (WIA and beyond)  Sector Businesses  Diverse scale and representing sub-sectors  Business Associations  Labor  Workforce Development System  Education  Community Colleges, K-12, Proprietary schools  Economic Development  Community-Based Organizations 5

6 Chicago’s Sector Centers: Training Recruiting and screening of candidates Workforce needs assessments and customized response plans Industry input and approval of training curricula Customized training Incumbent Worker training Labor market information Resource for information on tax credits, economic incentives, funds for training, industry comparisons & HR consulting 6

7 Chicago’s Sector Centers: Services: Give Business What Business Wants:  Recruiting  Listen carefully  Observe on-site  Conduct skills analysis  Develop job profiles  Speed and Responsiveness  Professionalism  Think Like Business, not a non-profit  (ADMIT THAT THERE’S A DIFFERENCE!)  NO EXCUSES – Under-promise, over-deliver  Build Relationships over time  competency, consistency, transparency  NO WORKFORCE SYSTEM JARGON! 7

8 Chicago’s Sector Centers: Services Give Business What Business Needs: Tiers of Businesses and Tiers of Services Assessment Reality Checks Facilitate business “transformation” 8

9 Chicago’s Sector Centers: Operationa l Model 9

10 Chicago’s Sector Centers: Accomplishments 7/05 to 12/09 Manufacturing Works ServiceWorks Businesses Served 394413 Hires/Placements16821324 Average Wage12.5010.25 Interview-to-Hire Ratio 1.6 to 11.5 to 1 10

11 11 Evaluation Overview Questions –Are the Sector Centers serving businesses more effectively than traditional One Stops? –Are they serving the needs of jobseekers? –Are they helping to make Chicago’s WIA-funded service delivery system more efficient and effective? –How can the overall model be refined and improved? –Can we recommend this model to our peers? Purposes –Internal management tool for City and CWB –Opportunity to inform WD practice nationally

12 12 Data Collection Interviews with 100+ individuals, including: –Agency and contractor staff –Subcontractors, industry partners and advisors –30+ employer customers –One Stops and WIA affiliates Data Analysis –Centers’ data on program activities and outcomes

13 Finding #1: Relevance 1)Centers make the publicly funded WD system more relevant to employers and key industries. Recruitment/job matching is only one element of companies’ workforce needs. Traditional services like recruitment need to be offered in way that starts from the needs of the business. Result: companies engaged with Centers who had previously not interfaced with WIA system 13

14 14 Finding #2: Equity and Access 2)Centers create a platform for addressing issues of equity and access. Recognizing that employer problems like turnover often result from poor HR practice Leveraging trusted relationships to offer advice that benefits workers and companies Increased wages = better candidates, lower retention More inclusionary hiring patterns Stronger internal career ladders

15 Finding #3: Systems Integration 3) Centers drive systems change toward a more integrated, demand-driven WD system -Stronger referral networks from One Stops, CBOs, and non-WIA sources -Alignment with higher-level sectoral partnerships -Tighter relationships with training providers to inform and improve programs 15

16 16 Challenges of the Model Reconciling internal tensions between employer and jobseeker goals –More broadly, between “performance” and “development” Ensuring quality, not just quantity – focusing on more than hitting the numbers WIA funding a double-edged sword –Focus on job placements, but also helped drive systems integration

17 Challenges of the Model Building the systems for disadvantaged workers to get opportunities System coordination around case management and referral processes Collecting new and different kinds of data Fostering cooperation and learning Building a brand for the Centers that is distinct from the providers 17

18 Implications for WD Practice 1.A more business-focused approach is important but should not be an end in itself. 2.Sectors aren’t everything, but they are a valuable tool for aligning resources and goals. 3.If you don’t build equity and job quality concerns into the vision, it will never be there. 4.Public funding is important but it can’t – and probably shouldn’t – be the only source. –Fee-for-service a critical component 18

19 Recommendations to City … and City Responses 1.Diversify the funding stream  Seeking alternate funding  Chicago LEADS corporate and foundation support  Fee for Service launch Spring 2009 2.Consider alternatives to bricks-and-mortar Centers, e.g., more decentralized, network models  TDL and HealthWorks less centralized, more project-based.  “Business Basics” – Focus efforts on business and depend on total system for recruiting.  Sector Team plans. 19

20 Recommendations to City … and City Responses 3.Look for regional partnership opportunities  Collaboration with County parallel entity.  Build partnerships with metro boards  Machining Career Project 4.Make investments in IT and technical assistance to improve and standardize data collection and sharing systems  Exploring business customer account management products  Ongoing challenge of funding data systems.  Recommended models? 20

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