Workforce Innovation in Regional Economic Development (WIRED) Slide 1 Workforce Innovations 2007...

Workforce Innovation in Regional Economic Development (WIRED)

Workforce Innovations 2007Implementing NCRC in the West Michigan WIRED

Region


Workforce Innovations 2007Implementing NCRC in the West Michigan WIRED Region

• Phillip Rios, Project Manager - WIRED West Michigan

• Bill Guest, Innovation Champion, NCRC

• Pam Tate, President, CAEL

Presentation Team


Workforce Innovations 2007Implementing NCRC in the West Michigan WIRED Region

• WIRED West Michigan, Phillip Rios

• NCRC, Bill Guest

• Business Model, Pam Tate

• Q&A, Team

Today’s Agenda


WIRED West Michigan

One of the 13 Generation One WIRED Grants


WIRED West Michigan: Who We Are

• Grantee– West Michigan

Strategic Alliance• Fiscal Agent

– Grand Valley State University

• Region– Allegan County– Barry County– Ionia County– Kent County– Muskegon County– Newaygo County– Ottawa County


THE WIRED WEST MICHIGAN STORY

WIRED West Michigan supports the people, ideas and training necessary to attract and retain innovative employers and skilled jobs across our region.

• Our economy has undergone many changes, yet the key strengths of its workforce, a diversity of culture, talent and spirit, remain.

• WIRED West Michigan is focused on aggressively equipping the region’s industries with the jobs and talent and vision necessary to compete in a changing economy.

• WIRED West Michigan was designed to help communities transform themselves at every level – from the boardrooms to the classrooms – and create new thinking about how we live, learn, work and play.

WIRED West Michigan: Who We Are


WIRED Update: Motion and Progress

FUNDAMENTAL BOTTOM LINE:

Talent Attracts Economic Growth


WIRED POLICY COUNCIL

Oversight of the Innovation Process & Investment Decisions

2006 Innovation Portfolio

SUSTAINABLE INNOVATIONS

INNOVATION PROCESS

1. Concept Definition

2. Business Planning

3. Testing & Prototype

4. Production & Launch

Managing the Innovation Portfolio


Innovation Definition

Testing & Prototype

Production & Launch

Business PlanningConcepts, Ideas,

Frameworks, Hypotheses

Goals, Metrics, Strategies, Tactics,

Budgets

Micro-Level

Macro-Level


Workforce System Transformations

Restructure key elements of our workforce development and

education systems for emerging, existing and

transitional workers.

Market Intelligence

Better understand the structure of regional employment clusters

and the emerging skill requirements for the innovation economy.

InnovationWORKS

Catalyze, support and sustain strategies to support innovation in

our regional economy.

Enterprise Development

Stimulate entrepreneurship and new business creation in key sectors of the innovation economy.

•Emerging Sector Skill Analysis

•Global Supply Chain Analysis

•Knowledge Workers & Economic Development

•Innovation WORKS Commercialization Infrastructure

•Innovation Curriculum

•Innovation WORKS Design Council

•Global School & Accelerated Engineering

•Health Care RSA

•Manufacturing Skill Development Coop

•NCRC/WorkKeys & Work Based Learning

•Regional Tri-Sector Workforce Development Initiative (TEAM)

•Entrepreneurial League System®

Innovation Categories

WIRED West Michigan: Motion and Progress

Planning complete, policy council review pending

Innovation complete, report submitted

Phase II implementation



Key Innovation “Tipping Points”

• SCALABILITY

• SUSTAINABILITY

• REGIONAISM


WIRED West Michigan: What’s Innovative about NCRC?

Innovation: Using Known Tools in New Ways:

National Career Readiness Certificate (NCRC)/WorkKeys

WIRED West Michigan NCRC innovation aims to secure regional employers cooperation in using the NCRC as part of their organizations employee support system.

Bottom Line: “Employer Focused”

A Pull not Push Approach


West Michigan Strategic Alliance

Workforce Innovation in Regional Economic Development (WIRED) InitiativeFunded by the Employment and Training Administration of the U.S. Department of Labor

Greg Northrup, President, West Michigan Strategic Alliance www.wm-alliance.org, 616.356.6060

Phil Rios, Project Manager, WIRED West Michigan, www.wiredwestmi.org, 616.331.6968

Career Readiness Certificate (CRC) Presentation, Revised: July 7, 2007

Bill Guest, WorkKeys Innovation Champion, 616.430.0828, [email protected]

Rachael Jungblut, WorkKeys Program Manager, GRCC, 616.234.3623, [email protected]

Liz Stegman, Program Administrator, (HELP Desk!), 616.234.3471, [email protected]

The Career Readiness Certificate(Powered by WorkKeys®)


West Michigan


WMSA Region

• Allegan

• Barry

• Ionia

• Kent

• Muskegon

• Newaygo

• Ottawa


M-MIT Region

• Bay• Clinton• Eaton• Genesee• Huron• Ingham

• Lapeer• Livingston• Midland• Saginaw• Sanilac• Shiawasee• Tuscola


Workforce Innovations Lab Operating Design

INNOVATION PROCESS

1. Concept Definition

2. Business Planning

3. Testing & Prototype

4. Production & Launch

Managing the Innovation Portfolio

STRATEGIC ADVISORY TEAM

Oversight of the Innovation Process

WMSA

•Stage-gate decisions

•Investment decisions

•Champion selection

Innovation Champions

•Development of the innovation through the stages

•Hosting of the prototype

•Development of implementation resources

Regional Engagement & Outreach

•Learning from the process

•Contributing to development

•Application environments

Innovation Portfolio

•Innovation Institute:

• Innovation Curriculum

•IP Commercialization

• Innovation Forum

•Industrial Design Council

•WorkKeys and Work-Based Learning

•Global School

•Accelerated Engineering

•Manufacturing Skills Standards

•Manufacturing Skills Coop

•Regional SOURCE

•Health Care RSA

•West Michigan Entrepreneurial League System

SUSTAINABLE INNOVATIONS

Market Intelligence

•Emerging Sector Analysis

•Global Supply Chain Analysis

•Knowledge Workers


What is our common language?

Employers say “New hires need more math.”

Educators ask “How much more?”

Employers say “We need better reading skills.”

Educators ask “How much better?”

We all know these can be endless discussions.

This communication problem extends throughout the entire Workforce Development System.


Why a Career Readiness Certificate?We need a trusted common language.

What do we mean by Qualified Candidates?• New hires

• Promotions and internal moves

• Career development programs

• Occupational training

• Job specific training

How do we measure qualifications?


Do you have Qualified Candidates?

• How successful are training classes?

• Are all employees prepared for audits?

• Are team leaders helping weak employees too much?

• Are data entry errors hurting the information system?

• Having trouble with hiring, promoting, or training?

Again, how do we measure qualifications?

Why a Career Readiness Certificate?


WorkKeys is a measurement tool.

WorkKeys quantifies skills in the following categories:

• Applied Mathematics

• Applied Technology

• Business Writing

• Listening

• Locating Information

• Observation

• Reading for Information

• Teamwork

• Writing


The WorkKeys Measurement SystemThe WorkKeys Measurement System

Assess job requirements - Assess individual skill levels - Train to eliminate gaps


Career Readiness Certificate in ContextCareer Readiness Certificate in Context

Reading forInformation

Job Specific Training

Occupational Training

AppliedMathematics

LocatingInformation

WorkKeys Measures Foundational Skills


The Career Readiness Certificate (CRC) and Jobs

WorkKeys Skill Levels: Bronze Silver Gold

Reading for Information 3 4 5

Applied Mathematics 3 4 5

Locating Information 3 4 5

Job Readiness* 30% 65% 90%

* Job Readiness indicates the % of jobs in the occupational

database that holders of these certificates are qualified to apply for.The CRC isa credential.


From: www.careerreadinesscertificate.com, revised June 2006.

CRC Deployed: CRC in Progress: Interested in CRC:

• Kentucky• Indiana• Virginia• Louisiana• Missouri• North Carolina • Oklahoma• Alabama • Tennessee • New Mexico

• North Dakota • South Carolina• Wyoming • District of Columbia • West Virginia • Iowa • Nevada • Washington • Kansas • Ohio• Colorado • Arizona• Georgia • Michigan

• California • Delaware • Maryland • Rhode Island • Illinois • Montana • Minnesota • Oregon • Idaho • Mississippi • Florida • New York • Alaska • Nebraska • Arkansas • Vermont • Utah • New Jersey • Pennsylvania

10 States 14 States 19 States


What Every WorkerWhat Every WorkerMust KnowMust Know

Reading for Information

Applied Mathematics

Locating Information

MVC


A Common Skills Currency


How do we get every employer to use the

same target?


Career Readiness Certificate Project Schedule

CONCEPTDEFINITION

Concept development of

the Career Readiness

Certificate target and the focus on

employer demand.

BUSINESSPLANNING

National Best Practices

identified and implemented.

Prototype planned,

organized and launched.

Performance metrics defined.

TESTING AND PROTOTYPE

County teams work with selected

employers to test the

effectiveness of WorkKeys and

the CRC to improve the Workforce.Plan WBL.

PRODUCTION AND LAUNCH

Broad based launch of

WorkKeys and the CRC in West

Michigan.Launch of Work-based Learning.

3/1/06 5/1/06 10/1/06 6/30/07 1/31/09Local

SuccessStories


Career Readiness Certificate Employer Options

Three Levels of Employer Engagement:

Entry Level Engagement: Require CRCs based on:• ACT Occupational Database (WorkKeys Consultant can help), or• O*NET Job Zone (with help from your MichiganWorks! office):

• Bronze for O*NET Zone 1 Jobs• Silver for O*NET Zone 2 Jobs• Gold for O*NET Zone 3 Jobs (and above)

Active Engagement: Require CRCs for hiring and advancement based on job assessment tools such as: Profile, SkillMap, or Estimator.

Power User: Require CRCs for key jobs and use WorkKeys as an integral human resources and employee training and development tool.


How do we improve our workforce?

• Assess foundational skills

• Use WIN software

• Use KeyTrain software

• Provide learning coaches for support

• Use practice tests in WIN and KeyTrain

• Issue Career Readiness Certificates


Prototype TeamsCounty Teams:

• Allegan• Barry• Ionia• Kent• Muskegon• Newaygo• Ottawa

Special Teams:• Healthcare RSA and HFC• Ex-offender Re-entry• The SOURCE• Special Needs Population• GED• Inner-city


Career Readiness Certificate StepsCareer Readiness Certificate Steps

Reading for Information

Job Specific Training

Occupational Training

Applied Mathematics

Locating Information

The Learner’sPerspectiveSteps toSuccess

Goals


Michigan Merit Examination (MME) Summary Table

* The new Michigan Merit Examination will be utilized in all Michigan Schools beginning the Spring of 2007


Master Degree

Bachelor Degree

Associate Degree

Some College

High School Diploma

Some High School

NOTES: Unemployment and earnings for workers 25 and older, by educational attainment; earnings for full-time wage and salary workers

Source: Bureau of Labor Statistics

Education and Training PayEducation and Training Pay

$1,064

$396

$900

$554

$622

$672

2.9%

3.3%

4.0%

5.2%

5.5%

8.8%

Unemployment Rate in 2003 Median Weekly Earnings in 2003Unemployment Rate in 2003 Median Weekly Earnings in 2003


Pay by Combined CRC Score

0

10,000

20,000

30,000

40,000

50,000

60,000

Combined CRC Score with Profile Count

Pay

$ 26,689 24,160 29,576 34,973 43,394 49,691 49,082 52,461

9336

101009

11959

121751

13452

14329

15347

1670

Notes: $23,000 at “9” and $50,000 at “15” results in a gain of $4500 per point. Data is based on RI, AM, and LI scores from the ACT Occupational Database (with 5 or more Profiles) and Median income data from the O*NET. Example: 3, 3, 3 = 9; 5, 5, 5 = 15; etc.

DRAFT

Combined ScoreQty. of Profiles


Example Occupations for CRC HoldersExample Occupations for CRC Holders

BRONZE

SILVER

GOLD

ONET Code ONET Title AM LI RI Total Annual

37-2012.00 Maids and Housekeeping Cleaners 3 3 3 9 $17,000

53-7051.00 Industrial Truck and Tractor Operators 3 3 3 9 $26,750

51-9121.01 Coating, Painting, and Spraying Machine Setters 3 4 3 10 $26,510

43-5041.00 Meter Readers, Utilities 3 4 3 10 $29,720

51-5023.09 Printing Press Machine Operators and Tenders 3 4 4 11 $30,430

33-3012.00 Correctional Officers and Jailers 3 4 4 11 $33,680

49-9021.02 Refrigeration Mechanics 4 4 4 12 $36,670

33-2011.01 Municipal Fire Fighters 4 4 4 12 $38,690

23-2011.00 Paralegals and Legal Assistants 4 4 5 13 $40,450

33-3051.01 Police Patrol Officers 4 4 5 13 $45,600

25-4021.00 Librarians 5 4 5 14 $46,940

11-9151.00 Social and Community Service Managers 5 4 5 14 $48,330

17-3023.01 Electronics Engineering Technicians 5 5 5 15 $47,140

17-3023.02 Calibration and Instrumentation Technicians 5 5 5 15 $47,140

47-1011.01 First-Line Supervisors - Construction Trades 5 5 5 15 $50,980

13-2011.01 Accountants 6 5 5 16 $51,310

11-9033.00 Education Administrators, Postsecondary 5 5 6 16 $69,400

11-9021.00 Construction Managers 6 5 5 16 $70,770


Emerging Workforce(K-12 and Colleges)

Transitional Workforce(MWAs and Agencies)

Incumbent Workforce(Employers)

Employers(Chambers & EAs)

DemandSupply


Employer Demand – Market Channel Partners

1. High Schools (K-12 System)

2. Colleges and Universities

3. Michigan Works Agencies (MWAs)

4. Private Employment Agencies

5. Chambers of Commerce

6. Economic Development Agencies

7. Employers Associations

8. Literacy and Adult Education Organizations

9. State Agencies and Partners

10. National Agencies and Partners


Employer Letter of CommitmentBasic Commitments:□ We will ask job applicants “Do you have a Career Readiness Certificate?”□ We will recognize the Career Readiness Certificate in hiring, promotion, and

employee development practices for selected positions.□ We give WIRED West Michigan permission to use our name in public awareness

efforts to promote the Career Readiness Certificate.

Extraordinary commitments:□ We will include Career Readiness Certificate preparation programs in our tuition

refund plan and/or provide assistance and an incentive for our employees.□ We will provide special treatment for individuals with Career Readiness

Certificates, such as, taking five minutes to warmly greet them when they fill out an application.

□ We will provide financial support for a promotion campaign, such as, a billboard or advertisement.

□ We will promote this program with our supply chain and recognize those suppliers that make this commitment to employee development.

□ We will test and certify ______ % employees. We employ _______ employees. □ We will track and report data for purposes of statistical summaries for our region.□ We will join and utilize the ACT Job and Talent Bank.


West Michigan Long-term Goals (2007-2012)

1. Gain and document 500 employer commitments with a signed Letter of Commitment (LOC) by December 2008.

2. Gain commitment of all high schools in West Michigan to add Locating Information to the MME and offer ACT National Career Readiness Certificates to all students. This is 10,000 to 15,000 certificates per year.

3. Gain commitment of our six regional Michigan Works! agencies to utilize WorkKeys and the Career Readiness Certificate as a means of defining “qualified applicants” for all job placements in West Michigan.

4. Issue 50,000 Career Readiness Certificates to incumbent and displaced workers by 2012.

5. Participate in and support the state-wide movement led by the Michigan Career Readiness Certificate Advocates (MiCRCA).


Questions&

Discussion

www.michigancrc.org

“We” vs. “They”


Conventional View

K-12 EducationCollege or

ApprenticeshipWork

The Reality for Most Students

K-10 Education

College or Apprenticeship

Work

11-12


Aligning K-12 education to college and careers.

K-12 Education

College or Apprenticeship

WorkWK

11-12 ACT


Morningstar Foods, LLCdivision of Dean Foods, Inc.

Dallas, TX

Robin L. Fiddes, SPHR

Senior Corporate Human Resource Manager

Appendix A:

Case Study from the

WorkKeys National Conference

May 2006


A snapshot of Morningstar Foods’ use of A snapshot of Morningstar Foods’ use of WorkKeysWorkKeys™™

• In 2003 Morningstar’s Mt. Crawford, VA facility began the use of WorkKeys™ as an internal and

external selection tool.

• Once the program was initiated, our first examination of WorkKeys was a comparison of incumbent worker’s and external candidate’s pass rates for the first year of use. (2003 – 2004)

We found that our incumbent workers passed at a rate of 61%, while our external candidates passed at a rate of 65%.

• In addition to studying pass rates, we analyzed retention rates between tested and non-tested new hires.

In the tested new hire group, their first year of employment showed an 85%85% retention vs. the non-tested new hires with a 50%50% retention rate.


•By 2005, the Mt. Crawford facility had experienced a 35%35% reduction in turnover, an 8.5%8.5% reduction in absenteeism, and a reduction in on-the-job training time of up to 50%.50%. (2003 vs. 2004)

• In February of 2005, fifty-two (52) of our employees were awarded Career Readiness Certificates in a ceremony held with our community college partner and the State of Virginia.

• In 2005, 172 additional CRC’s were awarded to our current employees as well as to prospective employees.

• In the hiring process, a candidate that brings a CRC to the table will reduce our testing cost by 64%.

In 2005, that would have accounted for a total savings of $10,860.00.


What has WorkKeys brought to Morningstar What has WorkKeys brought to Morningstar Foods?Foods?

• When hiring an individual that has passed the requisite WorkKeys tests, we know that they are going to have the necessary aptitudes for our positions.

The on-the-job training costs for these new hires has been reduced by 50% (or better, depending on position).

Our OJT cost was reduced to between $1,280.00 - $2,560.00 per employee.

During 2005, that savings would have equated to between $128,000.00 to $256,000.00 in strictly regular, hourly wages required to pay another employee to handle the OJT for our new hire. This does not count production efficiencies gained by returning the trainer to producing product.


Morningstar Foods’ future plansMorningstar Foods’ future plans

• Implementation of WorkKeys™ testing, as a selection tool, in our other facilities across the nation.

• 2006 Sulphur Springs, TX

Newington, CT

Murray, KY

Frederick, MD

• TBD facilities in AL, CA, MN, NY, WI

• With the growth our company is facing, to have a credentialing tool available in our locations makes the hiring process streamlined -- with a known, immediate return on investment to the business.


Appendix B:

WMSA WIRED WorkKeys

Turnover Reduction Examples


Appendix C:

WMSA WIRED WorkKeys

Increased ROI Examples


Appendix D:

WMSA WIRED WorkKeys

Improved Productivity Examples


Appendix E:

WMSA WIRED WorkKeys

Miscellaneous Slides


WKs Level 4 (Silver) Literacy WKs Level 5 (Gold)

Source: Dept. of Labor, Education and Training Administration, Common Measures Policy (17-05), February 17, 2006


Source: Dept. of Labor, Education and Training Administration, Common Measures Policy (17-05), February 17, 2006

Level 5 – Gold Basic Reading and Writing Numeracy Skills Functional and Workplace Skills

Level 4 – Silver Basic Reading and Writing Numeracy Skills Functional and Workplace Skills


Career Readiness Certificate & WorkKeys Partners

• Career Readiness Certificate• Michigan: www.michigancrc.org• ACT National: www.careerreadinesscertificate.org• CRC Consortium: www.crcconsortium.org

• ACT WorkKeys, www.act.org/workkeys• Steve Anderson, 563.391.3742, [email protected]• John Nelson, 319.321.9705, [email protected]

• KeyTrain, www.keytrain.com• Rick Harris, 888.480.4883, [email protected]• Justin Saylor, 877.842.6205, [email protected]

• The Council for Adult & Experiential Learning (CAEL), www.cael.org• Pam Tate, President, 312.499.2680, [email protected]• Joel Simon, Consultant, 312.499.2678, [email protected]


Elements of West Michigan NCRC/WorkKeys Model

• Focus on building employer demand• Collaboration with public workforce system, high

schools, community colleges, economic development agencies and chambers

• Development of sustainable business model, including potential new funding sources after WIRED– Philanthropic Foundations– State support– Revenue from Educational Content Providers– Revenue from NCRCs Earned– Consulting Services


Elements of West Michigan NCRC/WorkKeys Model (cont.)

• Hosted by Grand Rapids Community College

• Advise and consultation on business model from CAEL (Council for Adult and Experiential Learning)

• Building collaborative relationship with ACT and KeyTrain


Replication

Emerging or Established NCRC Initiatives in WIRED Regions


Seeding Replication: What is Needed?

• Committed regional and state leadership• Clear and targeted employer communication and a

toolkit for implementation• Startup funding

– WIRED, Foundations, Workforce Development agency, Economic Development agency

• Key Partners– Employer champions, Workforce Systems (state or

regional), Educational delivery infrastructure, ACT, KeyTrain

• Leveraging promising practices– From the WIRED world and elsewhere

Workforce Innovation in Regional Economic Development (WIRED) Slide 1 Workforce Innovations 2007...

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