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Transition Management for Regional Economies: Promoting Innovation in Talent Development for a Global Economy Version: NYATEP 2008 Tim Theberge, Lee Reynolds.

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Presentation on theme: "Transition Management for Regional Economies: Promoting Innovation in Talent Development for a Global Economy Version: NYATEP 2008 Tim Theberge, Lee Reynolds."— Presentation transcript:

1 Transition Management for Regional Economies: Promoting Innovation in Talent Development for a Global Economy Version: NYATEP 2008 Tim Theberge, Lee Reynolds

2 2 Agenda Overview Background The Economic Reality Planning Prevention Partnerships Rapid Response

3 Overview Economic Landscape System Transformation

4 4 The Numbers U.S. economy is constantly churning –2005: 29 million jobs lost while 31 million jobs created 90% of the fastest growing jobs require education and training past high school. –63% of all new jobs in the next decade will require a college degree; only 30% of the U.S. population has one

5 5 The Bottom Line An estimated 3.8 million youth, ages , are neither employed nor in school Education Level Annual Net Fiscal Impact Lifetime Net Fiscal Impact H.S. / A.S.$3,197$150,259 B.A.$5,585$262,495 Values for Commonwealth of Massachusetts Adults 16-64, Source: Center for Labor Market Studies, Northeastern University Data in table for Massachusetts Only

6 6 Job Training vs. Talent Development Reactive vs. Proactive Job Training: Transactional Individual Jobs that exist NOW Immediate results Workforce System operates more independently Talent Development: Strategic Sector focused CREATE/Expand jobs Longer-term, sustainable results WIS operates with and through partners Transformative in nature

7 7 Transformation Model & WIA Regional / sectoral asset mapping [WIA Sec. 117 (d)(7) and (8). WIA Sec. 118] Workforce Investment Boards [WIA Sec. 117] Community Transition Teams (Maine) Analysis of skill sets of at-risk workers compared to skill sets in demand. [WIA Sec. 117 (d)(6), WIA Sec. 118] Define pathways for at-risk workers to transition into demand occupations. [WIA Sec. 118] Engage partners to develop a shared vision. [WIA Sec. 118] Partner, partner, partner. [WIA Sec. 117, 118, 121]

8 Getting Ahead of the Curve Information as a Tool: The Employer The Employee The Economy Regional Innovation Grants Planning

9 9 Information Gathering Local Boards WIA Sec. 118 (b) Contents.--The local plan shall include-- (1) an identification of-- (A) the workforce investment needs of businesses, jobseekers, and workers in the local area; (B) the current and projected employment opportunities in the local area; and (C) the job skills necessary to obtain such employment opportunities;

10 10 Information Gathering Rapid Response From the Regulations –(a)(3) Develop and maintain mechanisms for the regular exchange of information relating to potential dislocations… –(b) In collaboration with the appropriate State agency(ies), collect and analyze information related to economic dislocations, including potential closings and layoffs, and all available resources in the State for dislocated workers… NOTE: Also covered in Sec. 117 and Sec. 188 under Local Boards

11 11 Transition Management (The Employer) Sample of Available Data Sets: –New Hires / UI Claims –Mass layoff / WARN –Job postings –Small business loan rates –SEC filings (debt to earnings, profit margins) –USDA output reports –Commerce import/export reports –Bankruptcy filings –Utility usage rates / permit issuances

12 12 Transition Management (The Employee) Skill set level information: –Must include incumbent and dislocated –Job titles are not enough Skill set mapping from industries in decline to growth sectors will lessen the impact on the workers and the community –Ideally conducted in at-risk industries prior to layoff events –The ultimate goal is Instant Labor Exchange

13 13 Transition Management (The Economy) Regional Asset Mapping –Service providers, community and faith based organizations, educational facilities, foundations, infrastructure Economic Mapping –At-risk employers, growth employers, infrastructure needs, technology transfer (R&D) capabilities

14 14 Regional Innovation Grants (RIGs) Comprehensive, sustainable, strategic and integrated regional planning using the WIRED framework Available to states and locals based on a dislocation or disaster event $250,000 / 18-month awards Asset mapping / SWOT analysis Focus on leveraging and aligning resources

15 15 National Emergency Grants (NEGs) Supplemental funds to temporarily expand service capacity –Awarded in response to significant dislocation events Significant dislocation events include: –Business closures, mass layoffs, Base Realignment and Closure (BRAC) activity, FEMA disasters (public assistance) Categories of NEG: –Regular, Disaster, Trade-WIA Dual Enrollment, HCTC DW Expenditure Requirement –70% of DW formula funds must be expended (statewide)

16 16 Dislocated Worker Program PY2006 Expenditures: $1,061,829,731 –Only 65% of Total Available funds ($1.6b) Total Participants Served: 383,238 –Total Participants Exited: 208,911 Increasing expenditures to 80% would result in an additional 100,000 participants served Source: PY 2006 WIA State Annual Reports and SF-269 data.

17 From: Layoff Aversion To: Transition Management Subject: Action NOT Reaction Prevention

18 18 Rapid Response Continuous / Multi-tiered effort focused on: –Planning, Prevention, Partnership Services providing layoff aversion in at-risk industries and companies Services focused on assisting dislocated workers and their employers Rapid Response money is very flexible –Regs and Law allow for broad range of services Rapid Response is responsible for serving as the key player in transition management

19 19 Rapid Response Expenditures 17 states had a lower RR fund utilization rate for PY06 than they had in PY05 –$206.7 million expended in PY06 for RR –$178 million in PY07 RR Carry-In –$440k returned to the Treasury Top 5 States = 48% of the total carry-in: 1.NY$30 million ( $5m) 2.CA$19 million ( $9m) 3.OH$18 million ( $6m) 4.PR$12 million ( $6m) 5.PA$7 million ( $1.5m)

20 20 Rapid Response is Transition Management Services to help employees, employers and communities deal with economic transition and economic shock Services through the full business cycle –Growth employers also served Dislocated Workers as a source of skilled workers –Ideal for seasonal employers and economies Protects and serves employers and employees alike Pre-emptive services lessen the risk or impact of layoffs –layoff aversion, sectoral risk assessments, planning

21 21 Talent Development = Economic Development Sharing information on company closing and layoffs –Provides information on available labor pool and on physical assets now available Sharing information of company expansion –Working to enhance business growth by providing access to dislocated workers Identifying reasons companies leave and stay –Allows for change in policies, and an understanding of competitive advantage

22 22 Instant Labor Exchange (iLEX - Information Gathering Bears Fruit) Skill set analysis mapped to regional economy will result in the identification of career pathways Short-term training with sufficient notice/awareness of layoff will allow for workers to be trained prior to actual layoff Real world examples already happening

23 All Hands on Deck: UI as a Key Partner in Transition Management Partnering

24 24 UI = Workforce Development Workshare (Short-Term Compensation) –Allows employers to retain skilled workers (18 states) Self-Employment Assistance (SEA) –Allows entrepreneurship training while receiving UI –Possible linkages with ATAA and small business capitalization waiver under WIA (9 states) UI Training –Allows UI claimants to participate in WIA, TAA and other training programs to improve employability Additional Benefits during Training (ABT) –Additional, state-funded benefits for individuals in approved training (7 states) State funds available for training purposes

25 Dont Go It Alone Partnering and Leveraging United We Stand – Its not about Us and Them, its about serving the dislocated workers.. Partnering

26 26 TAA for Firms (U.S. Department of Commerce) Part of the Trade Act –Uses matching funds on a sliding scale Assistance to firms impacted by Trade –New Market Research –Marketing Enhancement –New Product Development –LEAN, ISO, MIS Improvements –Financial / Management Consulting

27 27 BREI (Business Retention and Expansion Intl.) Focus on retention and expansion of existing employers Traditionally has provided training for economic developers –Expanded to include Rapid Responders –Online and in person training Promotes WIRED concepts –Resource pooling between large and small firms with regard to employee training – critical mass

28 28 ACF – Private Outplacement (Association of Career Firms) Linking with Private Outplacement –Provides on-demand scalability –Offers the opportunity to better assist non- traditional users of the One-Stop system –Leverages marketing advantages –Increases program awareness

29 29 Staffing Firms Additional Job Opportunities –Often not posted in the states job bank Allows us to assist in meeting the needs of growth employers Temp jobs are not always bad jobs –Often fill the need of workers to quickly re- enter the workforce –If matched with training can serve as a bridge to more stable employment

30 Rapid Response Funding: Improving Services Actual examples of required and allowable activities that are funded through Rapid Response or activities that could be funded through Rapid Response DISCLAIMER: Discussion on allowability of specific activities with your Regional Office is strongly suggested. RR should only pay its fair share of certain activities. Innovation

31 31 Rapid Response Set-Aside 1.State-Based NEG –Rapid Response funds used to assist local areas in responding to events that do not otherwise qualify for a NEG 2.Gap-Filler –Covers the gap between layoff and NEG NEG funds used to replenish set-aside funds 3.Trade wrap around services actual

32 32 Business Visitation Programs Intention is to approach at-risk 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 Link at-risk businesses with financial planning, technology planning, marketing and job training resources (layoff aversion) Ongoing effort, not a one-time event allowable

33 33 Supplemental DW Funds Any local that expends 70% of their DW funds and experiences additional layoffs may apply to the state for supplemental funds Supplemental funds are made available from RR funds under –Same model as the Trade Reserve Funds actual (required activity)

34 34 Small Business Assistance Services (b)(4) Active participation in local business resource centers (incubators) [One-Stops] to provide technical assistance to small and new business to reduce the rate of business failure; [added] Possible Technical Assistance Areas (HR Related): Resolving Conflict, Assisting Troubled and Difficult Employees, Managing Employee Turnover and Absenteeism, Supervisory Skills Enrichment (Human Resource Seminars) allowable (discussion with ETA suggested)

35 35 Disaster Response Coordination with FEMA and state emergency management agency –Co-location at disaster assistance centers / shelters Job search assistance Job order management Temporary one-stops NEG Preparation To be fully prepared, states must conduct disaster response exercises actual

36 Summary Planning Prevention Partnering

37 37 Planning RIGs can provide resources to allow for the development of strategic plans to address dislocations and transition –Most activities also allowable under other WIA funds Information Gathering is essential –Allowable and required under WIA –The more information available, the better a regions ability to transition their workforce The Employer The Employee The Economy

38 38 Prevention Rapid Response –Instant Labor Exchange –Services Prior to Layoff Business Visitation Programs At-Risk Sectoral Analysis Skill Set Mapping –Services to Growth Employers Linkages with Economic Development

39 39 Partnering Internal Partners –UI, Apprenticeship, Job Corps, Older Worker Program External Partners –BREI (Economic Development) –TAA for Firms (Economic Development) –USDA –Outplacement Firms & Staffing Firms –Educational Institutions –Employers –Many, many others…

40 40 Innovation Push the Envelope –Break down local and state barriers to innovation Embrace Innovation –Dislocated workers are depending on you! Talk to the Feds –No really! We know people dealing with the same issues that you are.

41 41 Websites 2006 Rapid Response Summit Presentations: ETA – Layoffs ETA – WIRED

42 42 Questions?

43 43 Thank You! Timothy Theberge ETA Region 1 - Boston Lee Reynolds ETA Region 1 – Boston

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