Impact of Career Pathways on Participant and Employer Outcomes

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Impact of Career Pathways on Participant and Employer Outcomes

Presented by:Stephen Tucker, MBA, Senior Manager of Industry Partnerships,

andSharron DiMario, MHA, Executive Director, Health Careers Collaborative

Partners for a Competitive WorkforceFebruary 25, 2015

Today’s Presentation Outline

Overview of Partners for a Competitive Workforce

Summary of NFWS Credentials and Evaluation Reports

Lessons Learned and Plans for the Future

A GROWING SKILLS GAPIS HAMPERING OUR PROGRESS

The good news: Cincinnati is growing jobs but, 50% of employers struggle to fill them

30,000+ jobs open today, despite 130,000+ people looking for work

9 out of 10 well-paying jobs require some education or training beyond high school

But nearly half of our current workforce lacksany education beyond high school

For the region

Inability to attract and retain

companies, and thus, grow our

economy

Higher poverty & unemployment

For employers

Inability to find the skilled workers they

need to compete and grow

For individuals

Inability to secure good jobs, and thus

provide financial stability for

themselves and their families

THE CONSEQUENCE OF THE SKILLS GAP

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PCW IS OUR REGION’S EFFORT TO CLOSE THE SKILLS GAP

PCW is a Tri-State partnership, managed by United Way of Greater Cincinnati

We are 150+ organizations joining efforts…

employers

workforce boards

chambers and economic development

education and training institutions

community organizations

… to go farther, faster.

OUR MISSION: MEET EMPLOYER DEMAND BY GROWING THE SKILLS OF THE WORKFORCE

Connect businesses to qualified workers

Build career pathways in healthcare, manufacturing, construction, IT and transportation/distribution/logistics

Improve work readiness to prepare people to succeed in employment

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2

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WE ARE DELIVERING RESULTS FOR WORKERS

9,100+ served

80% obtaining employment

69+% retained for 12 months

INDEPENDENT EVALUATION HIGHLIGHTS*

Compared to traditional job training programs, PCW-supported programs deliver:

40% higher employment rates

Up to 58% higher earnings

$7.3M increase in annual earnings(*Source: Quasi-Experimental Impact Study of NFWS/SIF Workforce Partnership Programs, 2014 , www.nfwsolutions.org)

• Increased retention provides up to $69,000/year savings = 11.9% ROI

• Wage gains for employees: $18.95/hr. vs. $16.15/hr.

• Increased racial diversity: 8-12% difference in team composition

• Improved staff morale and engagement

DELIVERING RESULTS FOR EMPLOYERS

Health Careers Collaborative ROI Studies

CREDENTIALS REPORT DATA*

3,854 clients from the G*Stars Regional Workforce System matched to the Ohio Unemployment Insurance Tax System

Clients from three career pathways, job readiness programs and One Stops delivering the NCRC

(*Source: Participant Employment and Earnings Outcomes, 1st Quarter 2007 – 2nd Quarter 2012)

Highest Credential

% Total

Associate degree

2%

Occupational certificate

48%

NCRC 9%

Job-readiness training

41%

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IMPACT OF CREDENTIALS ON EMPLOYMENT

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 2 3 4

1 qtr. prior to intake Quarters after final exit

Associate's degree

Occupational certificate

NCRC

Job readiness training

+4%

+17%

+34%

+17%

$-

$500

$1,000

$1,500

$2,000

$2,500

1 2 3 4

1 qtr. prior to intake Quarters after final exit

Associate's degree

Occupational certificate

NCRC

Job readiness training

IMPACT OF CREDENTIALS ON MONTHLY EARNINGS

+$2,914/yr

+$3,968/yr.

+$7,482/yr.

+$3,916/yr.

LESSONS LEARNED ANDPLANS FOR THE FUTURE

Creating a common, regional data collection and reporting system is important

Data supports requests for funding and staffing

Investing in a longitudinal, K – 12 and through college and workforce data system

Continue progress on Workforce Data Quality Campaign: all students/pathways, industry-recognized credentials, employment outcomes, LMI, data access and appropriate use

RESOURCES

Credentials Report Data: Christopher Spence, New Growth Group, LLC at 216-471-8228, [email protected]

IMPAQ: www.impaqint.org

Sharron DiMario, Health Careers Collaborative at [email protected] and Stephen Tucker at [email protected] or www.competitiveworkforce.com