Raising the Bar TogetherSuccessful Strategies for Workforce

and Economic Development Collaboration

Webinar presentation for the North East Regional Employment and Training Association

By Dee Baird and Swati Ghosh

Economic Development Research Partners

• To provide top-level economic developers with a means of directing cutting-edge research that advances the economic development profession as a whole.

• Publications on globalization, entrepreneurship, manufacturing, high performing EDOs, working with site consultants, etc. available to download on IEDC website.

Introduction

• Human capital is essential.– Economy restructuring from industrial system

to one based in knowledge. • Talent is a major force in economic

development. – It attracts companies and helps existing

companies grow.

Workforce and Economic Development at Odds

• Traditionally, economic developers attracted businesses, while workforce developers trained employees, often without collaborating.

Differences Between Workforce and Economic Developers

Economic Development Workforce Development

Philosophy/Language •Business Focused•Deal Driven•Tax policy, financing

•Individual focused•Program driven•Social service orientation

Funding •Public and private sources

•Primarily federal sources

Target Populations •Business firms, chambers of commerce, EDOs, local government

•Job-seekers, low-skilled workers, low-income adults and youth, training providers

Differences Between Workforce and Economic Developers Continued

Economic Development Workforce Development

Performance Metrics •Businesses/jobs created•No. of high-paying jobs•Public and private investments

•Placement•Retention after 6 months•Earnings•Skill attainment/credentials

What They Offer •Relationships with local businesses•Market knowledge on industry trends and employer needs•Creativity in finding resources

•Resources, expertise on training•Flexible, reliable funding•Information on local labor market•Alliances with employers

Workforce Investment Act (1998)

• Provides assistance to unemployed workers through education and skills training.

• Sets up one-stop workforce investment systems. • Systems most often structured by workforce

investment boards (WIBs), staffed by professional workforce developers and representing public, private, and educational institutions.

Emerging Mutual Realizations

Economic Developers• Realizing the

importance of a talented labor supply.

Workforce Developers• Realizing the need to

align programs with local employer needs.

• Professionals in both fields are realizing that it does not make sense to work in isolation.

• Working together, and with business and education partners, is essential for sustained economic growth.

Paradigm Shift to Collaborative Model

• Collaboration is necessary if sustainable and effective workforce development is to take place. – Both groups need to adjust focus from short-

term gains to long-term thinking about labor supply and talent development.

– Focus on competitive and growing industries.

New Collaborative Model for Knowledge Economy

• Groups can align around long-term goals of talent attraction, development, and retention.– This shift requires new metrics that are focused

not on job growth or placement rates, but instead on the quantitative and qualitative improvements in human capital.

Methodology

• This paper identifies successful collaborations between workforce development organizations and EDOs.– Paper is intended to be a guide for economic

development and workforce development professionals.

– Range of geographical focus.

• Profiles Three Collaborative Programs:– Los Angeles Workforce Systems Collaborative– Eastern Carolina Workforce System Innovation

Network– Oklahoma Governor’s Council for Workforce

and Economic Development• Showcases Two Emerging Programs:– Middle Tennessee Regional Workforce Alliance– Grand Rapids Apprenticeship Program

Methodology

Los Angeles Workforce Systems Collaborative (LAWSC)

• Created in 2007 under the leadership of Mayor Antonio Villaraigosa and Deputy Mayor Larry Frank.

• Serves region of 88 cities, 10 million people, and seven workforce investment boards.

Goal of LAWSC

• Collaborate to redirect misguided resources.

• Create a comprehensive and fully integrated workforce and economic development system.– Synchronize recruitment, support services,

education and training programs, employer engagement and job placement, funding, and government policy.

Partners• Economic Development

– Los Angeles County Economic Development Corporation (LAEDC)

• Workforce Development– Los Angeles County

Workforce Investment Board

– City of Los Angeles Workforce Investment Board

– State of California Employment Development Department

• Education– Los Angeles Community

College District– Los Angeles Unified School

District • Business Interests

– Los Angeles Area Chamber of Commerce

– Unite LA

• Charitable Interests– United Way of Los Angeles– Los Angeles Workforce

Funders Collaborative

• Labor Interests– Los Angeles County

Federation of Labor

Benchmarking Progress

Goal 1Cross-sector cooperation, communication, collaboration, and joint advocacy.

Goal 2Support demand-driven industry sector initiatives and sector intermediaries.

Goal 3Cultivate innovative labor-business partnerships .

Goal 4Leverage Resources to increase access and impact through joint-use facilities.

Goal 5Expand regional youth employment opportunities.

Eastern Region Workforce Innovation Network (WIN)

• Regional Profile:– 13 rural counties.– 4th largest active military population.– Main economic drivers: value-added agriculture &

advanced machinery.

• Regional partnership combats threats of new economic realities.– Industry/sector losses threaten jobs. • Downsizing of DuPont and other loss of tobacco and

apparel manufacturers.

Changing Opportunities

Jobs Lost• DuPont Chemical scaling

back– From 4,000 workers at

peak to 200 in 2005• Loss of apparel and

tobacco jobs

Jobs Gained• Increased military activity• Value added agriculture• Advanced manufacturing

Members’ Roles

• North Carolina Eastern Region (NCER)– Provide staff assistance and financial resources.

• Eastern Carolina Workforce Development Board: – Acts as the fiscal agent and drives

communication.• Region Q and Turning Point Workforce

Development Boards:– Leads local area activities.

Oklahoma Governor’s Council for Workforce and Economic Development

(GCWED)• Serves as state Workforce Investment Board.• Housed under & administered by Oklahoma

Department of Commerce.• Integrated policy and activities increase efficiency

& leverage resources.

• Fosters collaboration among 77 counties and several economic development regions.• Establishes alignment as the new normal from the

top down.

Role of the GCWED

• Make workforce and labor system recommendations• Oversees local workforce boards

ADVISE GOVERNOR

Role of the GCWED

• Scanning – Researching trends and issues specific to workforce and economic development.

• Convening – Fostering community engagement.• Providing – Building governance and leadership

capacity.• Facilitating – Aiding workforce preparation for

the industry.• Evaluating – Creating benchmarks and measuring

return on investment.

Emerging Best Practices

• Two innovative programs that can lead to successful integration of workforce and economic development strategies.1. Middle Tennessee Regional Workforce

Alliance (MTRWA).2. Grand Rapids Advanced Manufacturing

Training Program.

Middle Tennessee Regional Workforce Alliance, Nashville TN

• Middle Tennessee is a 10-county region anchored by Nashville.

• Need for a higher skilled workforce was identified due to series of studies conducted with three regional WIBs.– 2010 study found that the region would add

151,000 new jobs, and that the current population did not have skills and education to fill them.

Grand Rapids Advanced Manufacturing Training Program, Grand Rapids MI

• Apprenticeship program designed to satisfy the workplace needs of local manufacturers.

• Dual education system to train advanced manufacturing workers by combining both apprenticeships and vocational education.

• Students work 4 days a week and study on 1 day at the community college.

Partners and Other Programs

• Kent-Allegan Michigan Works Board is the first partner to be engaged in this program.

• As this program grows, it is expected that other workplace development boards will also join.

• A similar program has been developed by the Michigan Economic Development Corporation.

Conclusion

• Paradigm shift for both WIBs and EDOs towards long-term thinking.

• Programs have been introduced to develop specialized training for emerging industries.

• Analysis will have to be undertaken to determine industries with potential for growth and the current labor market’s skill-set.

Recommendation 1Adopt a Shared Vision but Different Metrics

• EDOs and WIBs must have a detailed strategic plan to ensure that the collaborative process is as efficient as possible.

• Different organizations may pursue different metrics provided they contribute to the overall strategic vision. – For example, EDOs may concentrate on jobs

created or maintained, while WIBs may focus on training numbers or placements.

Recommendation 2Organize and Collaborate with Partners in Education and Business

• Stakeholders from both the business and educational sectors work in conjunction to operate thriving programs.

• It is critical that the cultural divide between business operators and educators is bridged to ensure an efficient and successful collaborative process.

Recommendation 3Utilize Effective Partnership Frameworks

• One of the most difficult problems is that the service areas of EDOs and WIBs do not always match up.

• This can be either geographically or in terms of the relative sizes of the partners, where sometimes the biggest EDO/WIB will be unsuitable.

• A smaller joint venture may result in greater results than otherwise expected.

Recommendation 3

• Effectively structuring partnerships is crucial to direct resources to the most appropriate areas first.

• A common goal ensures a focused effort.• Information and resources must be shared

openly between partners to prevent redundancy.

• Download the “Raising the Bar Together: Successful Strategies for Workforce and Economic Development Collaboration” from IEDC. – http://www.iedconline.org/web-pages/r

esources-publications/edrp-publications/