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Slide 1: Region 2: Recalibrating the Workforce System April 2011 You can do that with Rapid Response funding? Presenter: Tim Theberge U.S. Department of Labor Employment and Training Administration Region 2: Recalibrating the Workforce System 1
Slide 2: Learning Objectives • Overview • • • • • Planning Setting the Stage The Shrinking Envelope of Innovation Job Training vs. Talent Development The Transformational Model • Prevention • Information Gathering • From: Layoff Aversion - To: Transition Management • Performance • Partnerships • Rapid Response Funding and Uses Region 2: Recalibrating the Workforce System • Outside Partners 2
Slide 3: Overview Opening Remarks Region 2: Recalibrating the Workforce System 3
Slide 4: Why are we here? • We are “America’s Backstop” • 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. • There is no other group that does what we do Region 2: Recalibrating the Workforce System 4
Slide 5: What is Rapid Response? • Required state function under the Workforce Investment Act (WIA); funded by reserving up to 25% of the state’s WIA Dislocated Worker allotment services and resources; carried out by states and local workforce development organizations in partnership with One-Stop Career Centers. • Provides direct reemployment services and facilitates additional • Arranges for the provision of support services such as unemployment insurance, health care, home heating assistance, legal aid, financial advice, and other forms of critical assistance to affected workers and communities Region 2: Recalibrating the Workforce System 5
Slide 6: 6 Faster engagement = Better results AND…. Rapid Response is a primary gateway to the workforce system for both dislocated workers and employers Region 2: Recalibrating the Workforce System 6
Slide 7: From the Regs… Legislative Authorization Sec 665.300 WIA Final Rule (a) Rapid response … “activities necessary to plan and deliver services to enable dislocated workers to transition to new employment as quickly as possible” Region 2: Recalibrating the Workforce System 7
Slide 8: Customized Consistency Timely, consistent and high-quality services to workers and businesses • Timely and Consistent where and how needed to best serve workers and businesses • It does not mean cookie-cutter or one-size fits all solutions • High-Quality • Proactive, comprehensive solutions that meet the needs of workers and businesses Region 2: Recalibrating the Workforce System • Providing the right information and services, when, 8
Slide 9: 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. Region 2: Recalibrating the Workforce System 9
Slide 10: 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 10 Region 2: Recalibrating the Workforce System
Slide 11: 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] Engage partners to develop a shared vision. [WIA Sec. 118] Define pathways for at-risk workers to transition into demand occupations. [WIA Sec. 118] Partner, partner, partner. [WIA Sec. 117, 118, 121] Region 2: Recalibrating the Workforce System 11
Slide 12: Rapid Response It’s not just for layoffs anymore… Region 2: Recalibrating the Workforce System 12
Slide 13: Don’t Wait for WARN… Rapid Response is PROACTIVE • Prepared • Delivered through a well-developed service infrastructure • Fully integrated Layoff Aversion strategies • Early Intervention • Engaged with the regional economy including: • Labor • Economic Development • Business Community • Local WIBs & One Stops • Education Region 2: Recalibrating the Workforce System 13
Slide 14: Solutions-Based Transition Management Solution-Based Approach for Managing Transitions in an Evolving Economy. • Addresses the needs of employers, workers, and community through development of ongoing strategies to ensure longterm economic stability and growth from expertise, perspectives, and efforts of extensive network of partners and stakeholders • Employs strategies gained Region 2: Recalibrating the Workforce System 14
Slide 15: Bend the Curve It is NOT event-driven; it is a pro-active approach to planning for and managing economic transitions. Rapid Response requires: • Ongoing efforts to build relationships with employers and other community stakeholders • Knowledge of labor market trends and economic forecasts • Strategic planning, data gathering and analysis designed to anticipate, prepare for, and manage economic transition • Understanding workforce assets and needs • Convening, facilitating, and brokering connections, networks, and partners • Planning for and responding to layoffs, minimizing their impacts wherever possible Region 2: Recalibrating the Workforce System 15
Slide 16: Rapid Response Throughout the Business Cycle Region 2: Recalibrating the Workforce System 16
Slide 17: Quality Principles of Rapid Response An Orientation Does Not Rapid Response Make; If It Does, You’re Doing It Wrong Region 2: Recalibrating the Workforce System 17
Slide 18: 10 Quality Principles +1 18 1 2 3 4 Timeliness The quicker information and services are provided, the quicker workers can start the reemployment process Internal and External Partnerships Leveraging Resources • Help communities pull together • Provide access to a wide range of resources • Build collaborative opportunities Creates strong community support network that goes beyond Rapid Response and OneStop activities Seamless Ensures efficiency and productivity in Service Delivery providing services and getting people reemployed Region 2: Recalibrating the Workforce System 18
Slide 19: 10 Quality Principles +1 19 5 6 Active Promotion Marketing services through materials, media, websites, social networking, meetings, events, etc. Layoff Aversion Strategies that help retain or save jobs: • Instant labor exchanges / Reemployment • Self-Employment Assistance (SEA) • Prefeasibility studies • Incumbent worker training • Workshare • Linkages to loan programs and other business assistance programs • Management or employee buyouts using ESOPs or conventional financing 19 Region 2: Recalibrating the Workforce System
Slide 20: 10 Quality Principles +1 20 7 8 9 Consistent and Accurate Information Convenience Information specific to the worksite and community and includes non-job-specific referrals to services and agencies Meeting the schedules and location(s) that meets worker and business needs; connecting to One-Stops Customizing services to meet local or eventspecific requirements enhances the success of helping people transition back to employment Customer Choice Region 2: Recalibrating the Workforce System 20
Slide 21: 10 Quality Principles +1 21 10 Measure of Success Measurable goals provide valuable feedback • Collect measurable data (ex.: How many individuals were processed?) • Determine if activities are successful • Identify potential problems • Make changes to ensure continuous improvement Re-evaluate, Re-vise, Evolve! +1 INNOVATE Region 2: Recalibrating the Workforce System 21
Slide 22: Bend the Curve Planning Region 2: Recalibrating the Workforce System 22
Slide 23: Information Gathering From the Regulations • 665.320 • (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… [emphasis added] Region 2: Recalibrating the Workforce System 23
Slide 24: 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 Region 2: Recalibrating the Workforce System 24
Slide 25: 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 Region 2: Recalibrating the Workforce System 25
Slide 26: Transition Management (The Economy) • Regional Asset Mapping • Service providers, community and faith based organizations, educational facilities, foundations • Economic Mapping • At-risk employers, growth employers, infrastructure assets and needs, technology transfer (R&D) capabilities Region 2: Recalibrating the Workforce System • Action not Reaction 26
Slide 27: Skills Gap Analysis • Provides actionable intelligence prior to layoff • Allows local workforce system to develop and deploy strategic planning efforts ahead of layoffs • Works best at the macro level • Should focus on at-risk (and growth) employers and/or sectors Region 2: Recalibrating the Workforce System 27
Slide 28: Layoff Aversion in the Modern Economy: Way Beyond Buyouts Prevention Region 2: Recalibrating the Workforce System 28
Slide 29: Defining Layoff Aversion From TEGL 30-09: • ETA considers a layoff averted when: • 1) a worker’s job is saved with an existing employer that is at risk of downsizing or closing; or • 2) a worker at risk of dislocation transitions to a different job with the same employer or a new job with a different employer and experiences no or a minimal spell of unemployment. Region 2: Recalibrating the Workforce System 29
Slide 30: What is Layoff Aversion? • Layoff aversion activities exist as a continuum of potential approaches • Layoff Forecasting/Early Warning Networks • Full layoff aversion (rare) • Pre-feasibility studies, buyouts, ESOPs, etc • Lessening the impact of a layoff (the norm) • Workshare Programs • Company Match (growing employers with layoff employers) • Incumbent Worker Training • On-the-Job Training Region 2: Recalibrating the Workforce System 30
Slide 31: Continuum of Layoff Aversion Saving the Company or Jobs that the company needs to layoff 1 BROADER IDEA: 2 Lessening the Impact of Layoffs Fewer weeks claimed • Lessening the number of employees • Fewer people filing for UI benefits; • Work-share / Furloughs • ESOPs - Employee buyouts • Finding a buyer for the closing business • Linking with other companies that are hiring (Company Match) companies • OJT programs-linking with growing • Linking with Economic Development • Early warning networks • Effective partnerships • Incumbent worker programs Region 2: Recalibrating the Workforce System 31
Slide 32: Instant Labor Exchange (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 Region 2: Recalibrating the Workforce System 32
Slide 33: Company Match • Minimize the impact of the layoffs that are occurring at a layoff particular plant closing or downsizing by placing employees in new jobs prior to layoff • Also to minimize the length of unemployment if not placed prior to • Matching the skills of employees who have been notified of a • Jabil/Raytheon - Direct Match layoff (and not yet laid off) with those of companies that are in need of skilled employees. • Training employees and placing them in new careers prior to layoff • Biotech Training - Polaroid/Bose 33 Region 2: Recalibrating the Workforce System
Slide 34: UI = Workforce Development • Workshare (Short-Term Compensation) • Self-Employment Assistance (SEA) • UI Training • Allows employers to retain skilled workers (18 states) • Allows entrepreneurship training while receiving UI (9 states) • Allows UI claimants to participate in WIA, TAA and other training programs to improve employability • Additional Benefits during Training (ABT) training (7 states) • Additional, state-funded benefits for individuals in approved • State funds available for training purposes Region 2: Recalibrating the Workforce System 34
Slide 35: Region 2: Recalibrating the Workforce System 35
Slide 36: Workshare Works! 2008 Arkansas Arizona California New York Rhode Island Texas Maryland 0 3,993 33,664 9,304 3,641 12,783 341 2009 0 9,419 96,914 45,658 8,387 27,245 1,956 2010 1,391 4,182 53,001 19,814 2,667 14,012 1,381 36 Region 2: Recalibrating the Workforce System
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Slide 38: Uses of Rapid Response Funds Performance Region 2: Recalibrating the Workforce System 38
Slide 39: Rapid Response “Set-Aside” • State-Based NEG • Rapid Response funds used to assist local areas in responding to events that do not otherwise qualify for a NEG • Gap-Filler • Covers the gap between layoff and NEG • NEG funds used to replenish set-aside funds • Trade “wrap around” services Region 2: Recalibrating the Workforce System 39
Slide 40: Small Business Assistance Services 667.262(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) Region 2: Recalibrating the Workforce System 40
Slide 41: Business Visitation Programs • Intention is to “sell” companies on Rapid Response and what it can do BEFORE there are layoffs • Target growth and at-risk employers • Doesn’t wait for first contact to be in relation to layoffs • Links business with financial planning, technology planning, marketing and job training resources • Manufacturing Extension Partnership, Commerce, etc. • Chamber of Commerce would be an ideal partner • “Ongoing effort, not a one-time event” • Focus on small and medium sized employers first Region 2: Recalibrating the Workforce System 41
Slide 42: Disaster Response Services • Mobile One-Stop Units • Ideal unit should be self-powered with self-contained communications • Brings services to locations where traditional services are unavailable • Can also be used for “regular” dislocation events (scalability) • To be fully prepared, states must conduct disaster response exercises • Must coordinate with state emergency management agency and FEMA Region 2: Recalibrating the Workforce System 42
Slide 43: Temporary Transition Centers • Ideal for large-scale layoffs, in locations away from existing one-stops or in disaster scenarios • Most successful if placed onsite or nearsite • Should include community partners • Food banks, heat and rental assistance, other social service agencies and organizations • All costs for operations would be allowable under Rapid Response etc. • Staff can be from multiple programs: WIA, ES, UI, Region 2: Recalibrating the Workforce System 43
Slide 44: Technology • Crosswalk skill sets of impacted workers to regional economies • REMI, EMSI, TORQ, etc. • GIS to map dislocations, growth employers and available resources • Laptops, cell phones, etc. for Rapid Response staff strong rapid response services • Mobility and connectivity are two key aspects of NOTE: Mention of a particular product does not constitute and endorsement thereof. ETA does not endorse particular products or vendors. Region 2: Recalibrating the Workforce System 44
Slide 45: Community Transition Teams • Comprises of a variety of community members • Includes Congressional office staff • Lead by Community Action Partner • Develops Local Resource Guide • Faith and Community Based Services • Mental Health Services • Other Government Agency Services Region 2: Recalibrating the Workforce System 45
Slide 46: Community Transition Teams • Provides non employment and employment related workshops • Budgeting • Pension and Retirement • Coping with Change • Health Care Options • Holds community and fundraising events • Funds used to pay for life expenses not covered by WIA supportive services Region 2: Recalibrating the Workforce System 46
Slide 47: If the worst economic condition since the Great Depression isn’t enough motivation, what’s it going to take? Accountability Region 2: Recalibrating the Workforce System 47
Slide 48: Why Rapid Response? 48 Because it: • CAN MAKE ALL THE DIFFERENCE • Offers the first step in connecting workers to the workforce investment system and partnerships • Provides an established national network of services, resources • Creates an avenue for layoff aversion, keeping workers in their present or new jobs, possibly avoiding a dislocation event and/or an unemployment claim have to face the challenges alone • Offers a powerful network that let’s workers know they do not Region 2: Recalibrating the Workforce System 48
Slide 49: Why Rapid Response? 49 Because it: • Provides well-regarded business solutions and ongoing collaborations through economic ups and downs • Connects workers to benefits • Provides a critical next step in an individuals career and life • Reduces the impact on the UI Trust Fund: • In Massachusetts, for PY2008, Rapid Response services saved the Mass UI Trust Fund an estimated $6.6 million in claims. Region 2: Recalibrating the Workforce System 49
Slide 50: Region 2: Recalibrating the Workforce System 50
Slide 51: Rapid Response Funding • $352m unexpended as of 12/31/2010 • $62m is ARRA funding • Region 2 States • $2.9m in ARRA RR funds unexpended • (less than ideal) • $28.9m in Regular RR funds unexpended • (on target) Region 2: Recalibrating the Workforce System 51
Slide 52: No Man Is An Island… Partners Region 2: Recalibrating the Workforce System 52
Slide 53: 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 Region 2: Recalibrating the Workforce System 53
Slide 54: 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 regional economies / sector strategies • Resource pooling between large and small firms with regard to employee training – “critical mass” Region 2: Recalibrating the Workforce System 54
Slide 55: Private Outplacement • Linking with Private Outplacement • Provides on-demand scalability • Offers the opportunity to better assist nontraditional users of the One-Stop system • Leverages marketing advantages • Increases program awareness Region 2: Recalibrating the Workforce System 55
Slide 56: Staffing Firms • Additional Job Opportunities • Often not posted in the state’s 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 reenter the workforce • If matched with training can serve as a bridge to more stable employment Region 2: Recalibrating the Workforce System 56
Slide 57: Faith & Community-Based Organizations • United Way • liveunited.org • www.catholiccharitiesusa.org • www.salvationarmyusa.org • www.goodwill.org • www.svdpusa.org • Catholic Charities • Salvation Army • Goodwill Industries • St. Vincent de Paul Society Region 2: Recalibrating the Workforce System 57
Slide 58: Expanding Partnerships • • Trade Adjustment Assistance Centers www.taacenters.org • 50/50 cost sharing on projects aimed at improving a manufacturer’s competitive position Manufacturing Extension Partnership www.mep.nist.gov • Helps manufacturers compete globally by improving supply chain integration, and productivity enhancement. • • • • Business Retention & Expansion Intl. www.brei.org • Focused on finding solutions to increase retention and expansion of “native” employers. Economic Development Administration www.eda.gov • Programs focusing on physical infrastructure, economic base changes, local technical assistance Employee Benefits Security Administration www.dol.gov/ebsa • Compliance assistance for employers and benefit rights information for employees Federal Emergency Management Agency www.fema.gov • Lead agency in coordinating the government’s response to disasters. States should establish relationships with their respective state emergency management agency. Region 2: Recalibrating the Workforce System 58
Slide 59: Get Connected There’s an app for that… Region 2: Recalibrating the Workforce System 59
Slide 60: Rapid Response Community of Practice www.workforce3one.org • Forums • peer-to-peer • Federal, state, local and partners • Resources • Materials • Presentations Region 2: Recalibrating the Workforce System 60
Slide 61: Social Networking as a Service • Maintain a presence for your organization on • A great way to reach dislocated workers and employers Twitter, Facebook and other social media sites other similar sites • Maintain a presence for yourself on LinkedIn and • A great way for people you know to connect to our services when they need them • If your current IT policies don’t allow you access to them, get those policies changed changed. • In case you missed it, the way the world communicates has Region 2: Recalibrating the Workforce System 61
Slide 62: Wrapping Up… QUESTIONS? Region 2: Recalibrating the Workforce System 62
Slide 63: The Time to Innovate Was Yesterday If the worst economic condition since the GREAT DEPRESSION isn’t enough motivation, what’s it going to take? “If you do what you’ve always done, you get what you always got.” - Roger von Oech Region 2: Recalibrating the Workforce System 63
Slide 64: Thank You! Timothy Theberge Boston Regional Office 617-788-0139 theberge.timothy@dol.gov Region 2: Recalibrating the Workforce System 64