economic development strategies using skilled labor information steve anderson – act, workforce...
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Economic Development Strategies Using Skilled Labor Information
Steve Anderson – ACT, Workforce Development
2007 Michigan WorkKeys Conference
Topics
• Why is skilled labor availability important?
• How can skilled labor be measured and reported?
• How is skilled labor information being used?
• How does skilled labor information benefit recruitment and retention programs?
• Developing a strategic economic development plan using skilled labor information.
Why is the availability ofskilled labor important?
Surveys of executives and site selection consultants indicate that the availability of
skilled labor is one of the most important factors in site selection
Factors 2006 Ranking
• Labor costs 95.0%
• Highway accessibility 90.9
• Corporate tax rates 90.8
• State and local incentives 88.6
• Telecommunications services 88.3
• Tax exemptions 86.7
• Occupancy or construction costs 85.5
• Availability of skilled labor 85.1
• Energy availability and costs 82.4
• High-speed internet access 82.1 Source: Area Development Magazine Annual Corporate Survey
Why is the availability ofskilled labor important?
National Career Readiness Certificate
Bronze Silver Gold
Automotive Body
Repairers Butchers & Meat Cutters
Cooks, Cafeteria Furniture Finishers
Home Health Aides Housekeeping
Supervisors Janitorial Supervisors
Painting & Coating Workers
Refuse Material Collectors
Accounting Clerks
Auto Master Mechanics
Billing Clerks
Licensed Practical Nurses
Machine Operators
Machinists
Medical Laboratory Technicians
Payroll Clerks
Pipe Fitters
Production Inspectors
Computer Programmers
Electricians
Environmental Engineering Techs
Instrumentation Technicians
Librarians
Semiconductor Processors
Training & Development Specialists
Vocational Education Teachers
Wholesale & Retail Buyers
$26,000 $34,000 $49,000
Median Annual Salaries
• $660M Capital
Investment
• 350 - 550 Jobs
• $60K Annual Salary
• Sites in 18 states
considered
• Finalists
• Clay, NY • Devens, MA
Example:
BioPharma Project
Where did the company decide to locate?
The winner is
The company perceived that the NY site did not have the skilled labor supply.
• Government Data
• Laborshed Surveys
• Labor Skills Measurement
How can skilled laborbe measured & reported?
Government Labor Data
Example: Davenport – Moline – Rock Island MSA
Civilian Labor Force 211,500
Employment 203,000
Unemployment 8,500
Unemployment Rate 4.0%
High School Graduation Rate 88.7%
College Graduation Rate 24.6%
Information based on geo-political boundaries
• Size of the laborshed
• Business-center defined
• Unemployment
• Underemployment
• Sampling surveys
- Self-assessments of skills
- Willingness to change jobs
- Desired wages
- Commuting thresholds
But what about skilled labor information?
What does a Laborshed Survey Measure?
What are the elements of a goodLabor Skills Assessment System?
1. Measurable skills standards
2. Levels of competency
3. All levels of workers
4. Related to job performance
5. Measures across industries
6. Training by competency levels
7. Individual development plans
8. Extensive test delivery network
9. Proven track record
“In the 1950’s, ACT created a nationally recognized, standardized resource for
college entrance. Now, we’re doing the same thing for the workforce.”
- Richard L. Ferguson, CEO and Chairman of ACT
Ready for College, Ready for Work
Findings:
The same basic skills are needed for work and college
www.act.org/path/policy/reports
How can the skills of workers bemeasured and developed?
Foundational Skills
• Reading for Info
• Applied Math
• Locating Info
• Applied Tech
• Business Writing
• Teamwork
• Observation
• Writing
• Listening
Skill Analysis• Profiling
• Occupational Profiles
Training• Online
• Workbook
• Classroom
Personal Skills
• Talent
• Fit
• Performance
TM
National Career Readiness Certificate
WorkKeys Skills• Reading for Information• Applied Mathematics• Locating Information
Three levels of performance• Bronze (Level 3 or higher)• Silver (Level 4 or higher)• Gold (Level 5 or higher)
Provides benefits to individuals, businesses, and economic development programs
National Career Readiness System
National Career Readiness
System
National Career Readiness Certificates
Talent Bank
Job Bank
Skills Training
Registry & Database
• Expansions
• Recruitment
• Plant Closings & Major Layoffs
How can skilled labor availability be part of economic development?
How is WorkKeys usedfor Local Expansions?
• Recruitment of new workers
• Advancement of employees
• Certificate program
Hiring Testing
Costs
- 64%
O-T-J Training
Costs
- 50%
Turnover
- 35%
This facility beat out several U.S. and international locations for a $130 million expansion
Indiana WorkKeys Program
Largest state certificate program based on WorkKeys
• Over 1,000 job profiles• Over 35,000 readiness certificates
awarded
Uses• Hiring for existing and new facilities• Attraction of businesses• Education programs• Apprenticeship programs• DOC Re-entry programs
“Raising everyone up one level”
Subaru of Indiana, Inc. – Lafayette, IN
• $230M expansion project with Toyota
• 1000+ job openings
• High hourly wages & benefits
• Projected 10,000 applicants
• Decision factor: Database of 6000+ WorkKeys assessed job applicants
• Tecumseh Area Partnership & Indiana DWD• WIRED recipient for REACH program
How is WorkKeys usedfor Local Expansions?
• Administer WorkKeys assessments
• Identify training programs
• Identify potential local employers
Displaced Individuals
How can WorkKeys be usedfor Plant Closings?
How can WorkKeys be usedfor Plant Closings?
• Administer WorkKeys assessments
• Develop a composite of the displaced workforce
• Determine industry & company targets from Occupational Profiles
• Market to target companies
Attraction of new business
Were the perceptions of theBioPharm company correct?
NCRC Eligibles - FY'04-06
0%
10%
20%
30%
40%
50%
Gold Silver Bronze Not Qualif ied
National Career Readiness Certificate Level
% o
f Tot
al
Central NY
Massachusetts
Maybe, maybe not.
How do the skills of the workers in the Region compare to National?
NCRC Eligibles FY 2003-06
0%
10%
20%
30%
40%
50%
60%
Gold Silver Bronze Not Qualified
National Career Readiness Certificate Level
% o
f Tot
al
Region A
National
1. Identify / engage regional workforce development stakeholders
3. Develop a regional CRC marketing program
4. Focus on engaging the business sector (MOUs):“Help your community while helping your company”
5. Identity resources for developing capacity
6. Provide training resources
7. Execute the plan / evaluate / update
2. Develop well-defined, realistic goals
Developing a Regional Program: West Michigan Approach
How can the skills data be used?
• Obtain NCRC skills data for specified geographic region
• Combine with the Laborshed Study to provide an estimate of the availability of skilled workers in the laborshed
• Compare against National and other communities
• Align data with specific company skill standards, from WorkKeys Occupational Profiles or Occupational Opportunities
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