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You Can Do That With Rapid Response Funds?


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A look at the flexibility provided under Rapid Response funds provided to states under the Workforce Investment Act.

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You Can Do That With Rapid Response Funds?

  1. 1. You can do that with Rapid Response funding? U.S. Department of Labor Employment and Training Administration Presenters: Jeff Ryan Tim Theberge 2010 National Reemployment Summit December 14 & 15 - Arlington, VA
  2. 2. Agenda <ul><li>Overview </li></ul><ul><ul><ul><li>The Shrinking Envelope of Innovation </li></ul></ul></ul><ul><ul><ul><li>Job Training vs. Talent Development </li></ul></ul></ul><ul><ul><ul><li>The Transformational Model </li></ul></ul></ul><ul><li>Planning </li></ul><ul><ul><ul><li>Information Gathering </li></ul></ul></ul><ul><li>Prevention </li></ul><ul><ul><ul><li>From: Layoff Aversion - To: Transition Management </li></ul></ul></ul><ul><li>Performance </li></ul><ul><li>Partnerships </li></ul><ul><ul><ul><li>Outside Partners </li></ul></ul></ul><ul><li>Rapid Response Funding and Uses </li></ul>
  3. 3. Why are we here? <ul><li>Our mission is to establish a comprehensive, collaborative effort to improve the Rapid Response system throughout the country by promoting consistent, high quality, timely and innovative responses to economic transition. </li></ul><ul><li>We are “America’s Backstop” </li></ul>
  4. 4. The Shrinking Envelope of Innovation The outer most line (red) represents Federal legislation. The next line (blue) represents Federal regulations. The third (green) represents state rules. The last line (orange) represents local rules. The distance between orange and red represents lost opportunities for innovation. Our mission is to get locals and states to maximize the flexibility allowed by law.
  5. 5. Job Training vs. Talent Development (Reactive vs. Proactive) <ul><li>Job Training: </li></ul><ul><li>Transactional </li></ul><ul><li>Individual </li></ul><ul><li>Jobs that exist NOW </li></ul><ul><li>Immediate results </li></ul><ul><li>Workforce System operates more independently </li></ul><ul><li>Talent Development: </li></ul><ul><li>Strategic </li></ul><ul><li>Sector focused </li></ul><ul><li>CREATE/Expand jobs </li></ul><ul><li>Longer-term, sustainable results </li></ul><ul><li>WIS operates with and through partners </li></ul><ul><li>Transformative in nature </li></ul>
  6. 6. 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 ]
  7. 7. Bend the Curve Planning
  8. 8. Information Gathering <ul><li>From the Regulations </li></ul><ul><li>665.320 </li></ul><ul><ul><li>(a)(3) Develop and maintain mechanisms for the regular exchange of information relating to potential dislocations… </li></ul></ul><ul><ul><li>(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… </li></ul></ul>[emphasis added]
  9. 9. Transition Management (The Employer) <ul><li>Sample of Available Data Sets: </li></ul><ul><ul><li>New Hires / UI Claims </li></ul></ul><ul><ul><li>Mass layoff / WARN </li></ul></ul><ul><ul><li>Job postings </li></ul></ul><ul><ul><li>Small business loan rates </li></ul></ul><ul><ul><li>SEC filings (debt to earnings, profit margins) </li></ul></ul><ul><ul><li>USDA output reports </li></ul></ul><ul><ul><li>Commerce import/export reports </li></ul></ul><ul><ul><li>Bankruptcy filings </li></ul></ul><ul><ul><li>Utility usage rates / permit issuances </li></ul></ul>
  10. 10. Transition Management (The Employee) <ul><li>Skill set level information: </li></ul><ul><ul><li>Must include incumbent and dislocated </li></ul></ul><ul><ul><li>Job titles are not enough </li></ul></ul><ul><ul><ul><li>Skill set mapping from industries in decline to growth sectors will lessen the impact on the workers and the community </li></ul></ul></ul><ul><ul><li>Ideally conducted in at-risk industries prior to layoff events </li></ul></ul><ul><ul><li>The ultimate goal is Instant Labor Exchange </li></ul></ul>
  11. 11. Transition Management (The Economy) <ul><li>Regional Asset Mapping </li></ul><ul><ul><li>Service providers, community and faith based organizations, educational facilities, foundations </li></ul></ul><ul><li>Economic Mapping </li></ul><ul><ul><li>At-risk employers, growth employers, infrastructure assets and needs, technology transfer (R&D) capabilities </li></ul></ul><ul><li>Action not Reaction </li></ul>
  12. 12. Business Visitation Programs <ul><li>Approach at-risk (and growth) employers with information on Rapid Response and One-Stop services BEFORE there are layoffs </li></ul><ul><ul><li>Does not wait for first contact with employer to be in relation to layoffs </li></ul></ul><ul><li>Links businesses with financial planning, technology planning, marketing and job training resources (layoff aversion) </li></ul><ul><ul><li>TAA for Firms, Commerce, Economic Development </li></ul></ul><ul><li>Ongoing effort, not a one-time event </li></ul><ul><li>Focus on small to medium sized employers first </li></ul>
  13. 13. Skills Gap Analysis <ul><li>Provides actionable intelligence prior to layoff </li></ul><ul><li>Allows local workforce system to develop and deploy strategic planning efforts ahead of layoffs </li></ul><ul><li>Works best at the macro level </li></ul><ul><li>Should focus on at-risk (and growth) employers and/or sectors </li></ul>
  14. 14. Layoff Aversion in the Modern Economy: Way Beyond Buyouts Prevention
  15. 15. What is Layoff Aversion? <ul><li>Layoff aversion activities exist as a continuum of approaches </li></ul><ul><ul><li>Layoff Forecasting/Early Warning Networks </li></ul></ul><ul><ul><li>Full layoff aversion (rare) </li></ul></ul><ul><ul><ul><li>Pre-feasibility studies, buyouts, ESOPs, etc </li></ul></ul></ul><ul><ul><li>Lessening the impact of a layoff (the norm) </li></ul></ul><ul><ul><ul><li>Workshare Programs </li></ul></ul></ul><ul><ul><ul><li>Company Match (growing employers with layoff employers) </li></ul></ul></ul><ul><ul><ul><li>Incumbent Worker Training </li></ul></ul></ul><ul><ul><ul><li>On-the-Job Training </li></ul></ul></ul>
  16. 16. 1 2 Continuum of Layoff Aversion <ul><li>Fewer people filing for UI benefits </li></ul><ul><li>Linking with other companies that are hiring (Company Match) </li></ul><ul><li>OJT programs-linking with growing companies </li></ul><ul><li>Early warning networks </li></ul><ul><li>Effective partnerships </li></ul><ul><li>Lessening the number of employees that the company needs to layoff </li></ul><ul><li>Work-share / Furloughs </li></ul><ul><li>ESOPs - Employee buyouts </li></ul><ul><li>Finding a buyer for the closing business </li></ul><ul><li>Linking with Economic Development </li></ul><ul><li>Incumbent worker programs </li></ul>BROADER IDEA: Lessening the Impact of Layoffs Saving the Company or Jobs
  17. 17. Instant Labor Exchange (Information Gathering Bears Fruit) <ul><li>Skill set analysis mapped to regional economy will result in the identification of career pathways </li></ul><ul><li>Short-term training with sufficient notice/awareness of layoff will allow for workers to be trained prior to actual layoff </li></ul><ul><li>Real world examples already happening </li></ul>
  18. 18. Company Match <ul><li>Minimize the impact of the layoffs that are occurring at a particular plant closing or downsizing by placing employees in new jobs prior to layoff </li></ul><ul><ul><li>Also to minimize the length of unemployment if not placed prior to layoff </li></ul></ul><ul><li>Matching the skills of employees who have been notified of a layoff (and not yet laid off) with those of companies that are in need of skilled employees. </li></ul><ul><ul><li>Jabil/Raytheon- Direct Match </li></ul></ul><ul><li>Training employees and placing them in new careers prior to layoff </li></ul><ul><ul><li>Biotech Training-Polaroid/Bose </li></ul></ul>
  19. 19. UI = Workforce Development <ul><li>Workshare (Short-Term Compensation) </li></ul><ul><ul><li>Allows employers to retain skilled workers (18 states) </li></ul></ul><ul><li>Self-Employment Assistance (SEA) </li></ul><ul><ul><li>Allows entrepreneurship training while receiving UI (9 states) </li></ul></ul><ul><li>UI Training </li></ul><ul><ul><li>Allows UI claimants to participate in WIA, TAA and other training programs to improve employability </li></ul></ul><ul><li>Additional Benefits during Training (ABT) </li></ul><ul><ul><li>Additional, state-funded benefits for individuals in approved training (7 states) </li></ul></ul><ul><li>State funds available for training purposes </li></ul>
  20. 21. Workshare Works! For more, see Session #90: December 15, 11am. Texas Rhode Island New York California Arizona Arkansas 2010 through September 11,586 27,245 12,783 2,083 8,387 3,641 17,227 45,658 9,304 43,305 96,914 33,664 3,457 9,419 3,993 1,173 0 0 2010 2009 2008
  21. 23. Rapid Response “Set-Aside” <ul><li>State-Based NEG </li></ul><ul><ul><li>Rapid Response funds used to assist local areas in responding to events that do not otherwise qualify for a NEG </li></ul></ul><ul><li>Gap-Filler </li></ul><ul><ul><li>Covers the gap between layoff and NEG </li></ul></ul><ul><ul><ul><li>NEG funds used to replenish set-aside funds </li></ul></ul></ul><ul><li>Trade “wrap around” services </li></ul>
  22. 24. Small Business Assistance Services <ul><li>667.262(b)(4) </li></ul><ul><li>“ 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] </li></ul><ul><li>Possible Technical Assistance Areas (HR Related) : </li></ul><ul><li>Resolving Conflict, Assisting Troubled and Difficult Employees, Managing Employee Turnover and Absenteeism, Supervisory Skills Enrichment (Human Resource Seminars) </li></ul>
  23. 25. If the worst economic condition since the Great Depression isn’t enough motivation, what’s it going to take? Performance
  24. 26. Why Rapid Response? <ul><li>Because it: </li></ul><ul><ul><li>CAN MAKE ALL THE DIFFERENCE </li></ul></ul><ul><ul><li>Offers the first step in connecting workers to the workforce investment system </li></ul></ul><ul><ul><li>Provides an established national network of services, resources and partnerships </li></ul></ul><ul><ul><li>Creates an avenue for layoff aversion, keeping workers in their present or new jobs, possibly avoiding a dislocation event and/or an unemployment claim </li></ul></ul><ul><ul><li>Offers a powerful network that let’s workers know they do not have to face the challenges alone </li></ul></ul>
  25. 27. Why Rapid Response? <ul><li>Because it: </li></ul><ul><ul><li>Provides well-regarded business solutions and ongoing collaborations through economic ups and downs </li></ul></ul><ul><ul><li>Connects workers to benefits </li></ul></ul><ul><ul><li>Provides a critical next step in an individuals career and life </li></ul></ul><ul><ul><li>Reduces the impact on the UI Trust Fund: </li></ul></ul><ul><ul><ul><li>In Massachusetts, for PY2008, Rapid Response services saved the Mass UI Trust Fund an estimated $6.6 million in claims. </li></ul></ul></ul>
  26. 29. Rapid Response Funding <ul><li>$245m available as of 09/30/2010 </li></ul><ul><ul><li>$82m is ARRA funding </li></ul></ul><ul><li>States with lower than 50% FUR account for $32m of available funds </li></ul><ul><li>Seven states have more than $10m available </li></ul><ul><ul><li>This represents 61% of available funds </li></ul></ul>
  27. 30. Disaster Response <ul><li>Mobile One-Stop Units </li></ul><ul><ul><li>Ideal unit should be self-powered with self-contained phone and internet connections </li></ul></ul><ul><ul><li>Brings services to locations where traditional services are unavailable </li></ul></ul><ul><ul><li>Can also be used for “regular” dislocation events (scalability) </li></ul></ul><ul><li>To be fully prepared, states must conduct disaster response exercises </li></ul>
  28. 31. Temporary Transition Centers <ul><li>Ideal for large scale layoffs or in locations away from existing one-stops </li></ul><ul><li>Most successful if placed onsite or near-site </li></ul><ul><li>All costs for operations would be allowable under Rapid Response </li></ul>
  29. 32. 10 Quality Principles +1 1 Timeliness The quicker information and services are provided, the quicker workers can start the reemployment process 2 Internal and External Partnerships <ul><li>Help communities pull together </li></ul><ul><li>Provide access to a wide range of resources </li></ul><ul><li>Build collaborative opportunities </li></ul>3 Leveraging Resources Creates strong community support network that goes beyond Rapid Response and One-Stop activities 4 Seamless Service Delivery Ensures efficiency and productivity in providing services and getting people reemployed
  30. 33. 10 Quality Principles +1 5 Active Promotion Marketing services through materials, media, websites, social networking, meetings, events, etc. 6 Layoff Aversion <ul><li>Strategies that help retain or save jobs: </li></ul><ul><li>Instant labor exchanges / Reemployment </li></ul><ul><li>Self-Employment Assistance (SEA) </li></ul><ul><li>Prefeasibility studies </li></ul><ul><li>Incumbent worker training </li></ul><ul><li>Workshare </li></ul><ul><li>Linkages to loan programs and other business assistance programs </li></ul><ul><li>Management or employee buyouts using ESOPs or conventional financing </li></ul>
  31. 34. 10 Quality Principles +1 7 Consistent and Accurate Information Information specific to the worksite and community and includes non-job-specific referrals to services and agencies 8 Convenience Meeting the schedules and location(s) that meets worker and business needs; connecting to One-Stops 9 Customer Choice Customizing services to meet local or event-specific requirements enhances the success of helping people transition back to employment
  32. 35. 10 Quality Principles +1 10 Measure of Success <ul><li>Measurable goals provide valuable feedback </li></ul><ul><li>Collect measurable data (ex.: How many individuals were processed?) </li></ul><ul><li>Determine if activities are successful </li></ul><ul><li>Identify potential problems </li></ul><ul><li>Make changes to ensure continuous improvement </li></ul>+1 INNOVATE Re-evaluate, Re-vise, Evolve!
  33. 36. No Man Is An Island… Partners
  34. 37. TAA for Firms (U.S. Department of Commerce) <ul><li>Part of the Trade Act </li></ul><ul><ul><li>Uses matching funds on a sliding scale </li></ul></ul><ul><li>Assistance to firms impacted by Trade </li></ul><ul><ul><li>New Market Research </li></ul></ul><ul><ul><li>Marketing Enhancement </li></ul></ul><ul><ul><li>New Product Development </li></ul></ul><ul><ul><li>LEAN, ISO, MIS Improvements </li></ul></ul><ul><ul><li>Financial / Management Consulting </li></ul></ul>
  35. 38. BREI (Business Retention and Expansion Intl.) <ul><li>Focus on retention and expansion of existing employers </li></ul><ul><li>Traditionally has provided training for economic developers </li></ul><ul><ul><li>Expanded to include Rapid Responders </li></ul></ul><ul><ul><li>Online and in person training </li></ul></ul><ul><li>Promotes regional economies / sector strategies </li></ul><ul><ul><li>Resource pooling between large and small firms with regard to employee training – “critical mass” </li></ul></ul>
  36. 39. Private Outplacement <ul><li>Linking with Private Outplacement </li></ul><ul><ul><li>Provides on-demand scalability </li></ul></ul><ul><ul><li>Offers the opportunity to better assist non-traditional users of the One-Stop system </li></ul></ul><ul><ul><li>Leverages marketing advantages </li></ul></ul><ul><ul><li>Increases program awareness </li></ul></ul>
  37. 40. Staffing Firms <ul><li>Additional Job Opportunities </li></ul><ul><ul><li>Often not posted in the state’s job bank </li></ul></ul><ul><li>Allows us to assist in meeting the needs of growth employers </li></ul><ul><li>“Temp” jobs are not always “bad” jobs </li></ul><ul><ul><li>Often fill the need of workers to quickly re-enter the workforce </li></ul></ul><ul><ul><li>If matched with training can serve as a bridge to more stable employment </li></ul></ul>
  38. 41. Expanding Partnerships <ul><li>Trade Adjustment Assistance Centers </li></ul><ul><ul><li>50/50 cost sharing on projects aimed at improving a manufacturer’s competitive position </li></ul></ul><ul><li>Manufacturing Extension Partnership </li></ul><ul><ul><li>Helps manufacturers compete globally by improving supply chain integration, and productivity enhancement. </li></ul></ul><ul><li>Business Retention & Expansion Intl. </li></ul><ul><ul><li>Focused on finding solutions to increase retention and expansion of “native” employers. </li></ul></ul><ul><li>Economic Development Administration </li></ul><ul><ul><li>Programs focusing on physical infrastructure, economic base changes, local technical assistance </li></ul></ul><ul><li>Employee Benefits Security Administration </li></ul><ul><ul><li>Compliance assistance for employers and benefit rights information for employees </li></ul></ul><ul><li>Federal Emergency Management Agency </li></ul><ul><ul><li>Lead agency in coordinating the government’s response to disasters. States should establish relationships with their respective state emergency management agency. </li></ul></ul>
  39. 42. Get Connected There’s an app for that…
  40. 43. Rapid Response Community of Practice <ul><li> </li></ul><ul><li>Forums </li></ul><ul><ul><li>peer-to-peer </li></ul></ul><ul><ul><li>Federal, state, local and partners </li></ul></ul><ul><li>Resources </li></ul><ul><ul><li>Materials </li></ul></ul><ul><ul><li>Presentations </li></ul></ul>
  41. 44. Wrapping Up… QUESTIONS?
  42. 45. Thank You! <ul><li>Jeff Ryan </li></ul><ul><li>Office of National Response </li></ul><ul><li>202-693-3546 </li></ul><ul><li>[email_address] </li></ul><ul><li>Timothy Theberge </li></ul><ul><li>Boston Regional Office </li></ul><ul><li>617-788-0139 </li></ul><ul><li>[email_address] </li></ul>