TRANSFORMATION

of theWorkforce

Investment System

Defining a Sector

Strategy

A Sector Strategy Can Be Defined As An Approach To Workforce Development — Typically On Behalf Of Low-Income Individuals

Targets a specific industry or cluster of occupations, developing a deep understanding of the interrelationships between business competitiveness and the workforce needs of the targeted industry;

Intervenes through a credible organization, or set of organizations, crafting workforce solutions tailored to that industry and its region;

Supports workers in improving their range of employment-related skills, improving their ability to compete for work opportunities of higher quality;

Meets the needs of employers, improving their ability to compete within the marketplace; and

Creates lasting change in the labor market system to the benefit of both workers and employers. The outcomes workforce programs achieve are greatly influenced by how other actors in the labor market system operate. These other actors include regulators, policy makers, businesses, educators, etc. Sector initiatives examine the relationships among these actors to find opportunities for positive change.

A Sector Strategy Can Be Defined As An Approach To Workforce Development — Typically On Behalf Of Low-Income Individuals

Sector strategies are distinct from, but complementary to “cluster” strategies. Cluster strategies are primarily economic development strategies that target locally important industry sectors and determine industry-relevant services, activities and investments to help the businesses in that sector succeed. The primary focus is the business. Sector strategies are human capital strategies that target locally important industry sectors and determine industry-relevant services and activities that help local workers overcome barriers to entry and/or advancement within that industry, the primary focus is the worker.

Both strategies require industry research, work with multiple businesses, and are guided by the resulting informed perspective on the issues and dynamics relevant to the targeted industry sector in their region. Leaders of both strategies need to develop relationships among different actors in their region, and to create service strategies that build on and complement existing infrastructure, services and resources. Leaders of sector programs bring a core competency in workforce development. This competency encompasses not only knowledge of a range of teaching and training techniques, but also experience in helping businesses identify the specific types of occupational and “soft” skills they need in workers.

What Is a Sector Initiative?

Sector initiatives are regional, industry-focused approaches to workforce and economic development. They improve access to good jobs and/or increase job quality in ways that strengthen an industry’s workforce.

Sector initiatives share four elements that distinguish them from conventional workforce programs:

They focus intensively on a specific industry over a sustained time period, customizing solutions for multiple employers within a regional labor market.

They strengthen economic growth and industry competitiveness by creating new pathways into targeted industries, and toward good jobs and careers. This approach benefits low-income individuals and sustains and creates middle-class jobs.

They utilize workforce intermediaries, organizations that have a deep understanding of worker and employer issues in an industry and within a regional labor market. These organizations facilitate the many stakeholders involved to develop and implement industry-based workforce solutions.

They promote systemic change that achieves benefits for the industry, workers, and the community.

Accelerating State Adoption of Sector Strategies

State sector strategies support sector initiatives, which are defined as regional, industry-specific approaches to workforce needs, implemented by an employer-driven partnership of relevant systems and stakeholders. They are part of a growing movement by states and local areas to adopt industry-focused strategies that are rooted in the economic, human capital and community strengths of a region. They rely on strong partnerships of employers and stakeholders to make data-informed decisions about workforce needs and solutions that will keep regional industry strong and provide quality jobs and advancement opportunities for workers, particularly low-income and at risk workers.

The Role Of Business Associations As Workforce Development Intermediaries

Organize, advise and advocate for member firms of the association

Provide or broker workforce services for workers and job seekers

Work with education/training providers to improve workforce services

Engage in research and development

Help govern/advise workforce institutions and systems

Models of

Sector Initiatives

Model 1:New York City: Transportation Sector Center (Queens,NYC)

The Center for Economic Opportunity provides tax levy funding for the Transportation Sector Center. The Center for Economic Opportunity was established by Mayor Bloomberg to implement innovative ways to reduce poverty in New York City, and works with City agencies to design and implement evidence-based initiatives aimed at poverty reduction.

NYC/SBS (The Agency) is utilizing a formalized method to obtain primary source information and data related to workforce trends, skill and education needs, and emerging occupations within the Transportation and Warehousing sector. SBS recently retained a consultant to conduct an in-depth, qualitative industry and labor market research study on the Transportation and Warehousing subsector: Air Transportation, Support Activities for Air Transportation, Truck Transportation and Transit and Ground Passenger Transportation. SBS decided that a more in-depth, focused study around specific economic sectors would benefit the agency.

The Sector Center has made the development of “career ladders” in the transportation industry a major priority and has hired a consultant to develop a career ladder data base for 200 occupational titles within the three transportation sub-sectors.

Model 1:New York City: Transportation Sector Center (Queens,NYC)

The Transportation Sector Center (Queens,NYC) has formed a Business Advisory Committee comprised of an impressive group of employers. The Business Advisory Committee is a major part of the business services strategy at the Sector Center and will ensure the responsiveness of the Sector Center’s programs to industry needs. The Advisory Committee is comprised of large and small employers (across the manufacturing, warehousing and transportation subsectors) and helps the Sector Center play a brokering role in bringing together key partners and stakeholders for a particular subsector.

The NYC-WIB and NYC-SBS ensures the workforce system at all levels has

access to the resources and knowledge to impact the transformation of the workforce investment system in New York City. Both the Executive Director of NYC-WIB and the Executive Director for Strategic Initiatives and System Integration represent the City as part of the State Academy Team at the National Governor’s Association: Sector Policy Academy on State Sector Initiatives.

Model 2:New York State: The St. Lawrence County Model In St. Lawrence, the Office of Economic Development (OED) oversees and staffs

economic and workforce development functions and initiatives through the two organizations, the Industrial Development Agency (IDA) and the county’s One Stop Career Center. Building on an integrated structure of economic and workforce development, the county has succeeded in using the combined incentives of the two to develop new markets and to enhance the attraction to employers for location in St. Lawrence County. These include the use of flexible financial incentives, the adaptation of workforce funds to the interests of existing and new business, and collaboration with other public and private sector economic development organizations.

The IDA and the One Stop Career Center each has its own Board, mandated by the state for IDA and the federal government for the Workforce Investment Board. The IDA’s Board of Directors includes representatives from local business, labor, and the County Board of Legislators. The IDA Board has authority to make the majority of the funding decisions, giving it significantly more flexibility in determining priorities and new projects than the Workforce Investment Board. This flexibility allows the IDA to develop initiatives that have assisted in attracting business to St. Lawrence County, including a number of Canadian companies from the Ottawa area. Combining the focus, funding, and oversight of multiple federal, state, and local agencies has made a significant impact in the county’s ability to take rapid advantage of opportunities.

The St. Lawrence County Workforce Investment Board (WIB) in conjunction with the OED utilizes the Comprehensive Economic Development Strategies (CEDS) process to develop the plan for increased coordination of local economic development and workforce activities. The CEDS document provides the framework for strategic planning sessions. The intent of this Comprehensive Economic Development Strategy ("CEDS") is to maximize the unique characteristics of the County in ways that will lead to economic diversity, activity and ultimately growth.

Model 3:Rhode Island: Industry Skill Development Initiative

The LWIBs work in partnership with the Rhode Island Department of Labor & Training to leverage GWBRI funds with other state and federal workforce development-related dollars, including those received under the Workforce Investment Act (WIA), Trade Assistance Act, National Emergency Grants (NEG), Job Development Fund (JDF), and Apprenticeship system. Programs and services developed and implemented through this Industry Skill Development Initiative are also tied to the Ocean State’s Adult Basic Education, Career and Technical, and Community College systems, as well as the training efforts of other partner agencies and organizations.

The success of this initiative also relies on the administrative capabilities of both LWIBs and their experience in working in collaboration with specific industry groups on workforce skills development projects.

Model 3:Rhode Island: Industry Skill Development Initiative

The Industry Skill Development Initiative (ISDI) is a dynamic, employer-driven initiative and through this ISDI), the LWIBs and its workforce development partners align meaningful, timely training resources and programs with the short- and long-term labor market needs of Rhode Island’s high-growth, high-wage industries.

The intent of this initiative is to address the workforce needs of the state’s high-growth, high-wage industries by upgrading their employees’ skills, promoting industry career opportunities, and developing Rhode Island’s labor force for a 21st century economy through an alignment of the Ocean State’s workforce training programs and resources.

The Industry Skill Development Initiative is based on the model developed through the highly successful Rhode Island Biomanufacturing/Biotechnolgy Training Initiative Grant, a four-year, $3 million Federal H-1B grant secured by the WPGRI in 2004. The model, which has proven to be effective and responsive to the Industry Partners, designates the LWIB as project fiscal administrator and the Industry Partnership as program manager. However, because each Industry Partnership is organized differently with priorities unique to their sector, the LWIBs have customized their contractual agreements to allow for optimum success with each partnership.

Under this initiative, each engaged Industry Partnership identifies the sector’s training needs and responds to labor force shortages, direct training content, select service providers, and collaborate on strategies for developing the emerging workforce.

Model 3: Components of ISDIDevelop a Sector Based One-Stop Career Center

The LWIBs work with the Department of Labor & Training and industry partners to establish a Sector-Based, One-Stop Career Center (Sector Career Center) in Rhode Island

The Sector Career Center is designed to provide job seekers and employers with more comprehensive, industry-focused services than currently offered in the existing system

Businesses have been included in the design, implementation, and operation of the Sector Career Center

Sector Career Center services are guided by the work and collaboration of the Industry Partnership, including the Skills Gap Analysis conducted under the GWBRI

Services are designed to reflect the needs of the particular sector with the goal to improve the sector’s competitiveness, the quality of jobs within the sector, and supply of skilled workers

Model 3:Enhance One-Stop Career Center Services

Enhance the service delivery model of the state’s One-Stop Career Centers, netWORKri, by upgrading and implementing new technologies to increase accessibility, build system capacity, and engage jobseekers and employers in a more meaningful and timely manner

Expand statewide accessibility of training programs and services to allow jobseekers to connect to programs and services in-person or remotely through the Internet by developing on-line applications, skill assessment tools, workshops, and other training-related applications

Procure online skill assessment, testing, and self-directed training tools for both jobseekers and employers – a critical piece in transforming the focus of service delivery toward skill identification and development

Use advancements in computer-based technology to more readily connect jobseekers to training and other developmental resources based upon computerized assessment

Create a pipeline of skilled workers to meet the current and future demands of Rhode Island’s high-growth, high-wage industries

Model 3:Enhance One-Stop Career Center Services

Procure technology that enhances the accessibility, flexibility, and mobility of the delivery of programs and services, particularly those related to Employer Services and Rapid Response;

Re-brand Rhode Island’s One-Stop System to convey a new and relevant message in marketing to jobseekers and employers.

Industry Partners establish agreements with the One-Stop Career Center System and work in coordination with the Employer Service Unit to conduct on-site activities at the netWORKri, including recruiting, assessment and interviewing of training applicants, and job fairs.

Provide system participants, on-site or remotely, with information on and access to a comprehensive suite of workforce development and training services for which they may be eligible.

Model 3:Development & Delivery of Training Industry Partnerships implement strategies to respond to identified skill gaps and

immediate and long- term training needs: Industry Training Advisory Council is established to direct the implementation of a

responsive industry training mechanism; Training provider resource list established and maintained; Training procurement process established; Training is customized to meet individual or a group of company needs:

Service models offer on-site and/or off-site training; Incumbent worker or pre-employment training; Customized training programs, classroom education, or a combination of these

models. Training resources sustained by and leveraged with existing state- and federally-

funded programs, including Individual Training Accounts (ITAs) offered thorough the netWORKri centers.

LWIBs provide oversight and guidance in the development and implementation of the procurement process; manage fiscal responsibilities; and facilitate the leveraging of federal WIA and other workforce development funds.

LWIBs coordinate Industry Skill Development Initiative strategies and activities with those of their WIA Plans, Rhode Island Economic Development Corporation (RIEDC), Adult Basic Education, Career and Technical Education, Community College, and other workforce development partners, as well as the work already conducted by the GWBRI’s Industry Partnerships, to develop a comprehensive, statewide Adult Workforce Development System.

Industry partnerships establish “clearinghouses” where training graduates and skilled

dislocated workers are connected to available employment opportunities.

Model 3:Establish Industry Greenhouses

Partnerships commit to establishing Industry Greenhouses designed to develop Rhode Island’s emerging workforce:

Industry members develop a variety of strategies and methods to engage and recruit their future workforce, adults and youth alike;

Members commit to establishing an Industry Internship Program and implementing a pilot model with a minimum of ten internship sites;

Industry Partners build linkages to the state’s Apprenticeship Program, Youth Workforce System, and the educational system, including career and technical and local high schools;

Industry partners establish and implement a Summer Jobs program for youth and will communicate employment opportunities to the Youth Centers.

Implement Career Awareness Strategies

Industry Partnerships commit to participate in the design and development of Career Awareness productions:

Partnership companies contribute time and staff to develop promotional productions that highlight Rhode Island’s high-growth, high-wage industries and the career opportunities they offer;

Productions will be integrated with Computer Based Orientations at the netWORKri and Youth Centers, and will be made available to all Rhode Islanders accessing the One-Stop system via the Internet;

Industry partners will utilize these productions and other career-oriented materials for teacher and student career educational efforts, as well as recruitment drives.

Partnership members strategize on opportunities to include a career awareness focus through their ongoing marketing and promotional campaigns.

Research

Jobs For The Future“Reauthorizing The Workforce Investment Act” Reauthorizing the workforce investment act

A down payment on a workforce development system for the 21ST century (June 2009)

Objective 4: Build the capacity of local workforce system leaders and practitioners to adopt innovative reforms that improve system outcomes for workers, employers, and communities.

Recommendation: Encourage local workforce leaders and practitioners to adopt sector or cluster-based strategies to addressing workforce challenges.

These strategies show success in helping workers improve their skills and advance and helping employers meet workforce needs. However, the implementation of sector strategies requires knowledge and skills that most workforce leaders and practitioners across the country need to develop and strengthen (e.g., robust regional economic and industry analysis, deep engagement of employers, development of sector-focused training and career advancement programs). To build these competencies, Congress should:

Make incentive funding available specifically for capacity-building efforts (e.g., sector academies, peer learning activities) that have improved the ability of system leaders and practitioners to address workforce challenges.

Jobs For The Future“Reauthorizing The Workforce Investment Act”

Quality improvement and innovation

OBJECTIVE 7: The federal government should invest in WIA quality improvement and innovation by providing incentives for successes and for developing and disseminating high-quality, evidence-based models.

Recommendation: Encourage local areas to adopt a “workforce intermediary” approach to addressing workforce challenges.

Workforce intermediaries are regional broad-based industry partnerships that convene relevant partners, broker or deliver services, align resources, and aggregate the needs of employers within an industry sector, as well as the needs of lower-income and lower-skilled youth and adults. Many are operated by high-performing, nonprofit community-based organizations, and some are operated by community colleges, employer organizations, labor-management partnerships, and WIBs.

Congress should Encourage intermediaries through the use of an innovation fund, other financial incentives, and the provision of a robust professional development system that provides models and trains workforce practitioners in workforce intermediary strategies.

Public Private Ventures (PPV)

Participants in sector-focused training programs earned significantly more than the control group members, with most of the earnings gains taking place in the second year.

Participants in sector-focused training programs were more likely to work and, in the second year, worked more consistently than control group members.

Employed participants had significantly higher earnings than employed control group members.

By the second year, employed program participants were working more hours and were earning higher hourly wages than employed controls.

Program participants were significantly more likely to work in jobs that offered benefits.

ETA’sRegional Recovery

and

Reemployment Forums

Section 1: Executive Summary Summary: Policy Recommendations and Questions and Technical Assistance Needs

Reemployment

Regions and sectors: Continuing to focus on regional economies and growth industry sectors.

Partnerships: Participants clearly articulated the need for strong partnerships with other agencies as well as across workforce silos. Forum participants asked for suggestions on how to pull partners in and how to get partners working together towards a common goal when there are so many competing priorities. They asked for federal encouragement of state/local communication and partnerships to facilitate the establishment of partnerships within the system.

Employer and Education Relationships: Employer and education partnerships were seen as particularly critical. Presenters and participants articulated the need to “Remember our business customers” and to tie every training program to employment, which requires building strong relationships with employers.

Participants asked for best practices to engage the employer community and real time

information on strategies to determine the reemployment needs of employers.

Action Steps Committed to at Forums: Establishing effective partnerships & communication among agencies involved with

workforce. Reaching out to business customers.

Section 6: Policy Recommendations Directed To DOL/ETA ARRA

Partnerships/Connections: It is critical that DOL connect the dots for the system as to what other Federal agencies are doing with their ARRA funds and how they are being asked to relate to the Workforce system.

GREEN JOBS Partnerships: Building relationships between state and local workforce system

entities and utilities and energy companies locally as well as with employers, unions, education is critical. Access available union training in building and construction trades relevant to green jobs industries. These relationships are key in identifying priority hiring needs, existing program and skills gaps, and necessary certifications.

PARTNERSHIPS Economic Development: Understand the role the workforce system can play in

economic development by working with community action agencies, non‐profit organizations, and employers.

Employer Relationships:

Economic crisis offers opportunities to forge new relationships with business and to cement existing relationships, including those with workforce boards and chambers of commerce. Employers are interested in incumbent worker training and layoff prevention training among other things. Every training program must be tied to employment – essential to build strong relationships with employers. The labor market is a social institution as it turns out. The effectiveness of our efforts will be based on whether we can build these employer relationships.