Transition Management for Regional Economies:

Promoting Innovation in Talent Development for a Global Economy

Version: NYATEP 2008

Tim Theberge, Lee Reynolds

2 Agenda• Overview

• Background• The Economic Reality

• Planning• Prevention• Partnerships• Rapid Response

Overview

Economic Landscape

System Transformation

4 The Numbers

• U.S. economy is constantly “churning”– 2005: 29 million jobs lost while 31 million jobs

created

• 90% of the fastest growing jobs require education and training past high school.– 63% of all new jobs in the next decade will

require a college degree; • only 30% of the U.S. population has one

5 The Bottom Line

• An estimated 3.8 million youth, ages 18-24, are neither employed nor in school

Education Level

Annual Net Fiscal Impact

Lifetime Net Fiscal Impact

<H.S. -$1,567 -$73,649

H.S. $1,513 $71,111

>H.S. / A.S. $3,197 $150,259

B.A. $5,585 $262,495Values for Commonwealth of Massachusetts Adults 16-64, 2002-2004

Source: Center for Labor Market Studies, Northeastern University

Data in table for Massachusetts Only

6 Job Training vs. Talent DevelopmentReactive 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

7 Transformation Model & WIARegional / 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]

Getting Ahead of the Curve Information as a Tool:

The EmployerThe EmployeeThe Economy

Regional Innovation Grants

Planning

9 Information GatheringLocal Boards

WIA Sec. 118(b) Contents.--The local plan shall include--

(1) an identification of--

(A) the workforce investment needs of businesses, jobseekers, and workers in the local area;

(B) the current and projected employment opportunities in the local area; and

(C) the job skills necessary to obtain such employment opportunities;

10 Information GatheringRapid Response

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…

NOTE: Also covered in Sec. 117 and Sec. 188 under Local Boards

11Transition 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

12Transition 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

13Transition Management (The Economy)

• Regional Asset Mapping– Service providers, community and faith based

organizations, educational facilities, foundations, infrastructure

• Economic Mapping– At-risk employers, growth employers,

infrastructure needs, technology transfer (R&D) capabilities

14 Regional Innovation Grants (RIGs)

• Comprehensive, sustainable, strategic and integrated regional planning using the WIRED framework

• Available to states and locals based on a dislocation or disaster event

• $250,000 / 18-month awards• Asset mapping / SWOT analysis• Focus on leveraging and aligning

resources

15 National Emergency Grants (NEGs)

• Supplemental funds to temporarily expand service capacity – Awarded in response to significant dislocation events

• Significant dislocation events include:– Business closures, mass layoffs, Base Realignment and Closure

(BRAC) activity, FEMA disasters (public assistance)

• Categories of NEG:– Regular, Disaster, Trade-WIA Dual Enrollment, HCTC

• DW Expenditure Requirement – 70% of DW formula funds must be expended (statewide)

16 Dislocated Worker Program

• PY2006 Expenditures: $1,061,829,731– Only 65% of Total Available funds ($1.6b)

• Total Participants Served: 383,238– Total Participants Exited: 208,911

• Increasing expenditures to 80% would result in an additional 100,000 participants served

Source: PY 2006 WIA State Annual Reports and SF-269 data.

From: Layoff AversionTo: Transition Management

Subject: Action NOT Reaction

Prevention

18 Rapid Response

• Continuous / Multi-tiered effort focused on:– Planning, Prevention, Partnership

• Services providing layoff aversion in at-risk industries and companies

• Services focused on assisting dislocated workers and their employers

• Rapid Response money is very flexible– Regs and Law allow for broad range of services

• Rapid Response is responsible for serving as the key player in transition management

19 Rapid Response Expenditures

• 17 states had a lower RR fund utilization rate for PY06 than they had in PY05

– $206.7 million expended in PY06 for RR– $178 million in PY07 RR Carry-In– $440k returned to the Treasury

• Top 5 States = 48% of the total carry-in:1. NY $30 million (↓ $5m)2. CA $19 million (↓ $9m)3. OH $18 million (↑ $6m)4. PR $12 million (↑ $6m)5. PA $7 million (↓ $1.5m)

20Rapid Response is Transition Management

• Services to help employees, employers and communities deal with economic transition and economic shock

• Services through the full business cycle– Growth employers also served

• Dislocated Workers as a source of skilled workers– Ideal for seasonal employers and economies

• Protects and serves employers and employees alike• Pre-emptive services lessen the risk or impact of

layoffs– layoff aversion, sectoral risk assessments, planning

21Talent Development = Economic Development

• Sharing information on company closing and layoffs– Provides information on available labor pool and on

physical assets now available

• Sharing information of company expansion– Working to enhance business growth by providing

access to dislocated workers

• Identifying reasons companies leave and stay– Allows for change in policies, and an understanding of

competitive advantage

22 “Instant” Labor Exchange(iLEX - 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

All Hands on Deck:UI as a Key Partner in Transition Management

Partnering

24 UI = Workforce Development

• Workshare (Short-Term Compensation)– Allows employers to retain skilled workers (18 states)

• Self-Employment Assistance (SEA)– Allows entrepreneurship training while receiving UI– Possible linkages with ATAA and small business capitalization

waiver under WIA (9 states)

• UI Training– Allows UI claimants to participate in WIA, TAA and other training

programs to improve employability

• Additional Benefits during Training (ABT)– Additional, state-funded benefits for individuals in approved

training (7 states)

• State funds available for training purposes

Don’t Go It Alone

Partnering and Leveraging

United We Stand – It’s not about “Us” and “Them,”

it’s about serving the dislocated workers..

Partnering

26 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

27 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 “WIRED” concepts– Resource pooling between large and small

firms with regard to employee training – “critical mass”

28 ACF – Private Outplacement (Association of Career Firms)

• Linking with Private Outplacement– Provides on-demand scalability – Offers the opportunity to better assist non-

traditional users of the One-Stop system

– Leverages marketing advantages– Increases program awareness

29 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 re-

enter the workforce– If matched with training can serve as a bridge

to more stable employment

Rapid Response Funding: Improving Services

Actual examples of required and allowable activities that are funded through Rapid Response or activities

that could be funded through Rapid Response

DISCLAIMER: Discussion on allowability of specific activities with your Regional Office is strongly suggested. RR should only pay its “fair share” of certain activities.

Innovation

31 Rapid Response “Set-Aside”

1. State-Based NEG– Rapid Response funds used to assist local

areas in responding to events that do not otherwise qualify for a NEG

2. Gap-Filler– Covers the gap between layoff and NEG

• NEG funds used to replenish set-aside funds

3. Trade “wrap around” services

actual

32 Business Visitation Programs

• Intention is to approach at-risk employers with information on Rapid Response and One-Stop services BEFORE there are layoffs– Does not wait for first contact with employer to be in

relation to layoffs

• Link at-risk businesses with financial planning, technology planning, marketing and job training resources (layoff aversion)

• Ongoing effort, not a one-time event

allowable

33 Supplemental DW Funds

• Any local that expends 70% of their DW funds and experiences additional layoffs may apply to the state for supplemental funds

• Supplemental funds are made available from RR funds under 665.340– Same model as the Trade Reserve Funds

actual (required activity)

34 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)

allowable (discussion with ETA suggested)

35 Disaster Response

• Coordination with FEMA and state emergency management agency– Co-location at disaster assistance centers / shelters

• Job search assistance• Job order management• Temporary one-stops• NEG Preparation• To be fully prepared, states must conduct

disaster response exercises

actual

Summary

Planning

Prevention

Partnering

37 Planning

• RIGs can provide resources to allow for the development of strategic plans to address dislocations and transition– Most activities also allowable under other WIA funds

• Information Gathering is essential– Allowable and required under WIA– The more information available, the better a region’s

ability to transition their workforce• The Employer• The Employee• The Economy

38 Prevention

• Rapid Response– “Instant” Labor Exchange– Services Prior to Layoff

• Business Visitation Programs• At-Risk Sectoral Analysis• Skill Set Mapping

– Services to Growth Employers• Linkages with Economic Development

39 Partnering

• Internal Partners– UI, Apprenticeship, Job Corps, Older Worker Program

• External Partners– BREI (Economic Development)– TAA for Firms (Economic Development)– USDA– Outplacement Firms & Staffing Firms– Educational Institutions– Employers– Many, many others…

40 Innovation

• Push the Envelope– Break down local and state barriers to

innovation

• Embrace Innovation– Dislocated workers are depending on you!

• Talk to the Feds– No really! We know people dealing with the

same issues that you are.

41 Websites

2006 Rapid Response Summit Presentations:http://rrsummit.workforce3one.org/sessions.cfm

ETA – Layoffswww.doleta.gov/layoffs

ETA – WIREDwww.doleta.gov/wired

42 Questions?

43 Thank You!

Timothy Theberge

ETA Region 1 - Boston

617-788-0139

theberge.timothy@dol.gov

Lee Reynolds

ETA Region 1 – Boston

617-788-0130

reynolds.tricia@dol.gov