1. THE COMPANY
Northrop Grumman
Ship Systems, based in
Pascagoula, MS
THE CHALLENGE
Assessing and developing
employee foundational skills
THE SOLUTION
Using WorkKeys®
job
profiling, assessment, and
training to assess and boost
the skills of incumbent
employees
THE RESULTS
A 28 percent reduction
in turnover, a significant
boost in work quality, and
millions saved in layoff and
training expenses
Situation
Northrop Grumman, a defense contractor for the U.S. Navy and
shipbuilder for private industry, is the largest private employer in
Mississippi and Louisiana. It is also one of the largest companies in the
world, employing 120,000 people in all 50 of the United States and 25
other countries.
The Northrop Ship Systems division (NGSS)—which builds the Navy’s
ARLEIGH BURKE (DDG 51) Class of Aegis guided-missile destroyers
and the Navy/Marine Corps Team’s SAN ANTONIO (LPD 17) Class of
amphibious assault ships—employs approximately 18,000 people in
Mississippi, Louisiana, and Alabama.
Like many employers, NGSS’s goal is to retain its employees and
increase their skill levels. “In the late ’90s, we hired lots of people.
Many lacked the foundational skills—such as mathematics, reading, and
observation skills—needed to do their jobs,” says Dr. Larry Crane,
director of training for NGSS.
“We needed a tool to help us efficiently upgrade the foundational skills
of our workers and identify training targets.”
“Retention issues are sometimes caused by workers’ inability to do the
job, or when workers feel they are in a dead-end job,” says Mark Scott,
president and CEO of CARES, Northrop Grumman’s WorkKeys partner.
“There is a definite link between foundational skills and job performance,
and people can’t learn new skills if they don’t have the foundation first.
New skills result in more career opportunities for workers.”
Needs
Northrop Grumman needed a system that could pinpoint foundational
skill gaps and offer training to overcome those gaps, along with training
for skills specific to each job.
Solution
In 1998, Northrop Grumman joined the Gulf Coast Shipbuilding
Partnership (GCSP)—a consortium that includes shipbuilding
companies, labor unions, community colleges, workforce boards, and
(continued)
CASE STUDY
Northrop Grumman
Ship Systems Develops a
Ready-to-Train Workforce
1-800/WORKKEY
www.workkeys.com

2. other agencies across three states. The consortium, funded by a grant
from the U.S. Department of Labor’s Employment and Training
Division, was organized to address and overcome skill shortages within
shipbuilding companies in Louisiana, Mississippi, and Alabama.
WorkKeys is an essential part of the consortium, providing job profiling,
skill assessment, and training for its business partners.
Job profilers at CARES, the managing partner of GCSP, examined four
positions within Northrop Grumman’s Hull Department—shipfitter,
welder, burner, and grinder. Employees in those positions were asked to
volunteer for a skill-upgrade program. More than 1,200 employees
participated—about 65 percent of the department. Participants took the
WorkKeys exams (Applied Mathematics, Reading for Information, and
Observation) most applicable to their jobs, according to job profiles.
The results led to each participant’s “learning prescription,” which
blended WorkKeys-specific training from Worldwide Interactive
Network, Inc. (WIN) with job-specific training.
On-site tutors serve as “case managers,” providing one-on-one teaching
and learning management using WIN materials. Successful participants
receive certificates of completion at a graduation ceremony.
Following the Hull Department’s success, Northrop Grumman
expanded WorkKeys use to other positions within Ship Systems. The
company has profiled more than 20 positions in 11 skilled trades
throughout the company.
Northrop Grumman currently uses WorkKeys in advancement programs
for incumbent and dislocated employees, as well as a pay-for-skills
program.
Results
• Turnover reduction—Before WorkKeys, turnover rates varied across
NGSS plants—ranging from 17 percent to 45 percent. Two years after
the start of WorkKeys use with incumbent employees, turnover rates
had dropped in all participating plants, ranging from 8 percent to
28 percent decreases. Turnover in the Hull Department decreased by
20 percent since implementing WorkKeys.
• Effective alternatives to layoffs—The new WorkKeys employee
development system allows for employee cross-training and
placement in alternative positions during layoff periods. This allows
for greater retention of qualified employees and a readily accessible
workforce when production again increases. GCSP estimates that, as a
result, NGSS saved more than $2 million in 2004 alone.
• Higher training completion rates—Prior to implementation of WorkKeys,
training completion rates were as low as 10 percent for common
programs such as blueprint reading. Since inception, completion rates
have more than doubled.
• Better employee attendance—Absentee rates at NGSS in 1999 ranged
from 17 percent to 38 percent. After the introduction of WorkKeys,
NGSS reported drops in absentee rates ranging from 3 percent to
21 percent.
• Union participation—Labor unions involved with Northrop Grumman
also have lent their support to the WorkKeys programs, according to
Dave Whitney, director of trades at NGSS.
“The more I get into
WorkKeys, the more I
realize what a great
tool it is.”
Dave Whitney, director of
trades, Northrop Grumman
Ship Systems
© 2006 by ACT, Inc. All rights reserved. IC 04109207L 12/06
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