Presentation to the Texas Higher Education Coordinating Board Austin TX - June 26, 2015

1. Economic & Workforce Development Strategies
Connecting Employers to Qualified Jobseekers
Michael Baker
Manager – Strategic Planning & Innovation
Office of Employment & Training
Illinois Department of Commerce & Economic Opportunity
June 26, 2015
Slides may be shared or reused so long as the author is given credit.

2. WHAT’S THE UNIFYING POINT?
2
ECONOMIC PROSPERITY
Access to skilled workers
Access to good paying,
career pathway jobs

3. Data
Driven
• Supply / Demand Baseline
• Labor Market Information
• Population Demographics
Employer
Demand
Driven
• Employer Pull Model
• Sector Partnerships
Accelerated
• Lean Principles
• More Value-Added
• Less Non-Value-Added
3
FOUNDATIONAL STRATEGIES

4. DEMAND
Labor
Market
Info
US Bureau
of Labor
Statistics
&
Regional
Employers
Industries No. Employers
No. Employees
Occupations No. Openings:
New & Replacement
Commuting
Patterns
Supply
Education
&
US Census
Annual
Education
Production
K-12
Industry Recognized Credentials
Associate’s Degree
Bachelor’s & Beyond
Population
Demographics
Average Age
Gender
Ethnicity
Educational Attainment4
1. DATA DRIVEN-Start with Baseline Analysis

5. Employer
Pull Model
vs.
Supplier
Push
Model
What Occupations
Competencies
Where Proximity to labor
pool & training
providers
When Expected hire dates
Cycle
How Many Quantity by title
or competencies
(credentials)5
2. EMPLOYER DEMAND DRIVEN
Train
& Pray

7. IF: Employers own the process
THEN: Employers will invest in solutions…
for as long as they perceive a good ROI
Neutral Convener
•Establish trust
•Avoid turf wars
7
Sustainable Connection Through Employer-Led Sector Partnerships

8. Sector Partnership-Based Employer Engagement
4 KEY QUESTIONS TO WORKFORCE PARTNERS

9. Neutral Convener
Neutral Facilitator
Sector Strategies Recipe:
Equal Parts Science & Art

10. 3 VITAL Topics for Sector CEOs to Consider
90 Minute Launch Meeting 3-100 Sector Employers
3. ESTABLISH A GAME PLAN
What are we going to do together?
How are we going to hang together
and organize for real outcomes?
2. IDENTIFY COMPETITIVE ISSUES
What do we need to compete?
What is required to ensure our
companies stay competitive?
1. IDENTIFY SECTOR OPPORTUNITIES
What are the big opportunities for
growth in our companies right now?
What’s going on in our industry,
particularly in this region?

11. Think
LEAN
Only Value-Added Activity
Eliminate anything NOT of value
Open
Entry
Timing to meet employer demand not calendar
DACC–cohorts of 2 students
Leverage
existing skills
No time in class retaking content already
mastered
Open Exit Allow exit upon proof of competency
Credit/
Non-Credit
Degree vs. Stackable Industry Credentials
Curricula approval in WEEKS / Cross college sharing
Paid OJT &
Internship
Work-Based Learning
accelerates time to earnings
11
3. ACCELERATION STRATEGIES

12. Work-Based Learning: Internships
• Reduce uncertainty & hiring risk
• Assess soft skills & trainability
• Value-added work
• ROI – impacts profit
Employers – Try Before Buy
• Boosts ability to stay in training
• Gain value-added experience
• Opportunity to assess & improve soft skills
• Can coordinate with IDES staff to preserve benefits
Jobseekers – Learn & Earn
12

13. Work-Based Learning: On-the-Job
Personalized skill gap analysis for the
position they are entering
• Description of the method of training and how it will be
delivered
• Estimated number of hours for each skill
• Job description
• Start and completion dates
• Method of supervision provided and who is responsible
Devise Training Plan With Employer
• Wage reimbursements 50-75% while in OJT
Employer hires then trains
13

14. Work-Based Learning: Incumbent Worker
• Upgrade the skills of current workers
• Proprietary training OK
• Cross-Training
• Improve productivity
• Expand into new lines of business
• Provide upward mobility
• Retain key employees
• Reduce uncertainty & hiring risk
• Increased Profit
• Easy way to engage with workforce system
Employer Benefits - ROI
14

15. Industry Recognized Stackable Credentials
& Embedded Employer-Level Soft Skills
NIMS
MSSC
CPT/CLT
AWS
APICS
 Nationally portable
 Provide known skill sets
 Reduces uncertainty of
technical qualifications
 National Institute of Metalworking Skills
 Mfg. Skills Standards Council
 American Welding Society
 American Production &
Inventory Control Society
-------------------------------
 Include Work Readiness
Training with Skill Training
 Arrive on time
 Attendance
 Attitude

16. 16
Personalized
Training
Plan
Career
Exploration
Skill Gap
Analysis
MSSC Safety
Credential
Skill
Development
Contextual
Mfg. Bridge
GED
(if needed)
Soft Skills
Technical
Skills w/
Industry
Credentials
Internship
OJT
Employment
Client Workflow

17. RECENT EMPLOYER TESTIMONIALS
“Working with LWIA 23 for OJT was a
huge benefit for not only Hella, but also
for the three employees we hired full
time. Living in a small community can be
a disadvantage when it comes to finding
employment opportunities.
By using this service, we were able to fill
job openings in which technical skills are
a requirement. I especially want to thank
the staff at LWIA 23. They made this an
easy process and I truly enjoy working
with these ladies.”
Becky L. Traub
HR Generalist
Hella Corporate Center USA, Inc.
Flora
“Working with our local workforce
office has helped make implementing
the OJT program an easy part of our
everyday hiring process. It’s something
that our managers have embraced and
is truly a wonderful program… Not only
because of the benefits we as a
company receive – that’s just a small
part of it; but primarily because of the
extra support and incentives our new
hires have to guide them through their
transition back into the workforce.
It benefits everyone involved & has
been a smooth process for us.”
Leah Bolander | HUB
Recruiter
Patterson Technology Center
Effingham

18. KEY TAKEAWAYS – BY THE NUMBERS
4 weeks from first phone call from employer
to first enrollment at community college
1 week for curricula approval through both
local board and state board
16 hours transferable credit in 8 weeks
15 in first cohort
100% completion rate
100% hired
$14.32 / hour – regional median wage
$ 9.27 / hour – regional avg. starting wage
$16.00 / hour – NAL starting wage
$17.00 / hour – After 6 months
$18.00 / hour – After 12 months
Dozens – obstacles identified
Zero – obstacles that stopped the project
18

19. QUESTIONS FOR EMPLOYERS & ECONOMIC DEVELOPMENT LEADERS…
1. Are you satisfied with the quality & quantity of job applicants?
2. Do you track the cost of replacing workers or filling new positions?
3. Do your workers have all the skills they need?
4. What key competencies do you need in your workers?
5. What industry recognized credentials do you know & value?
6. What is the source of your “good applicants”?
7. What is the quality of graduates from regional training providers?
8. How responsive are regional training providers?
9. Are your hiring requirements for each position in line with what you really need?
10. How far ahead can you predict when you will need more workers?
11. Have you considered the benefits of “growing your own” talent via internships?