Skills and Credentials for Business and Job Growth

Skills and Credentials for Business and Job Growth

An Industry Sector Strategy Report

October 2014

LWIA 15

Crater Regional Workforce Investment Group

114 N. Union Street

Petersburg, VA 23805

Table of Contents

Executive Summary3

Introduction4

CRWIG4

Business Engagement Process4

Sector Spotlight5

Workforce Skills and Credentials6

Essential Skills for the Region’s Workforce6

Priority Credentials7

2013 Credential Attainment8

Credential Attainment Goals for 2014-168

Increased Funding for Credentials and Essential Skills: A 3-Year Plan9

Workforce 2017: Trained, Ready to Work, Credentialed9

Incorporating Essential Skills10

Prioritizing In-demand Credentials10

Leveraging Philanthropic Partners11

Reducing Operations Costs11

Plan Summary11

Conclusion12

References13

Appendices:

A – Secretary of Commerce and Trade Memorandum

B – Governor’s Executive Order 23: Establishing the New Virginia Economy Workforce Initiative

C – Healthcare Industry Sector Report

D – Local Area Labor Market Information Profile (July 2014)

E – Overall Credential Attainment and Goals for PY 2013 – PY 2016

F – National Work Readiness Credential Profile

Executive Summary

As the nation continues its recession rebound, the projections for career opportunities in high-growth industries such as Advanced Manufacturing, Logistics, and Healthcare are very positive in the Crater Region. For example, due to demographic shifts and a variety of changes and advances in the nation’s healthcare system, the healthcare industry in the Crater Region is expected to experience a 30.8% increase in employment over the next five years. However, the benefits from the Region’s positive job growth will be out of reach for many jobseekers if they don’t have the essential skills and required credentials to meet the demand of businesses in these high-growth sectors.

This report outlines the top occupational credentials needed by local businesses in high-growth industry sectors in the Crater Region. In addition to credentials that count, this report discusses the equally important matter of essential skills. The report also identifies a plan to achieve the workforce of 2017: trained, ready to work, and credentialed. This plan consists of 4 primary strategies: incorporating essential skills training, prioritizing in-demand occupational credentials, leveraging philanthropic partnerships, and reducing operations costs. As the Workforce Investment Board (WIB) for the Crater Region, CRWIG prepared this report as a part of its ongoing business engagement strategy, as well as in response to a request from the Commonwealth of Virginia, Office of the Secretary of Commerce and Trade.

Introduction

Crater Regional Workforce Investment Group

The Crater Regional Workforce Investment Group (CRWIG) was established in July 2000 as the local Workforce Investment Board (WIB) for the Crater Region[1]. The mission of this business-led organization is to align workforce services to meet the needs of local employers for skilled and motivated workers. CRWIG accomplishes this mission by focusing on expanding the pipeline of workers through improved collaboration with partners, alignment of training capacity to meet economic development targeted industry needs, and managing the expectations of skills and credentials for jobseekers.[2] CRWIG prepared this report as a part of its ongoing business engagement strategy, as well as in response to a request from the Office of the Secretary of Commerce and Trade (OSCT Memo, Appendix A). The Secretary intends to drive increased attainment of workforce credentials in Virginia, and seeks input from local Workforce Investment Boards regarding the priority credentials and projected levels of attainment to meet regional industry needs.

Business Engagement & Data Collection Process

The CRWIG engages businesses across the region in order to examine their current and future workforce development needs, as well as foster communication and collaboration between workforce investment partners and representatives of high-growth industries. As a part of this ongoing effort, CRWIG convened three roundtable discussions for businesses in Healthcare, Manufacturing, and Logistics/Distribution/Warehousing/Transportation (LDWT) during the summer of 2014. These three-hour sessions included presentations by industry representatives and other workforce system stakeholders. The sessions also included focus group discussions on forecasts for growth in the local industry, projected workforce development needs, and gaps in worker skills and credentials.

A total of 80 representatives of small and large businesses, K-12 leaders, and nonprofit organizations participated in the roundtables. CRWIG used information gathered during the roundtables to design an online business needs survey to triangulate statewide data[3] on hiring projections and identify specific credentials and skills required to meet current and projected workforce needs for businesses in the high-growth industry sectors. The survey was also used to increase awareness of the CRWIG as a workforce intermediary involved in developing the local workforce, and identify a group of business representatives to participate workforce planning efforts.

The survey respondents were asked to identify specific credentials needed for their current and potential workforce. Respondents were also asked to select the top five skills needed by their workforce, and to rate the relative importance of each skill. The survey also presented the opportunity to obtain a sense of the level of awareness about the CRWIG among businesses in high-growth sectors, and to estimate the willingness of business representatives to serve on an industry-specific workgroup for workforce development in the Crater Region. The online survey was deployed to a total of 243 business contacts; reminders were made by phone and via email during the three-week response period. A total of 27 contacts completed to the survey, for an 11% overall response rate.

Sector Spotlight: Healthcare

The healthcare industry is one of three sectors identified in the CRWIG five-year strategic plan for targeted alignment activities. A 30.8% rise in employment is expected in the region’s healthcare industry over the next five years[4]. For example, in July 2014, the industry has the highest number of advertised job openings in the region among all other occupation groups (515 openings compared to the next highest occupation, sales, with 350 openings). This growth is due to increases in the elderly population and other demographic shifts, as well as a variety of changes and advances in the nation’s healthcare system.

However, the positive job growth projections must be considered in context; there is a stark mismatch between the available supply of labor and demand in several occupations in the healthcare industry. For example in July 2014 a total of 41 job openings in the region were posted for nursing assistants, compared to a total of 196 candidates currently available in the region; for the same time period, a total of 220 registered nurse job openings were posted, compared to a total of 48 available candidates. As a part of its alignment activities, CRWIG will focus on strategies to reduce and eliminate workforce supply and demand mismatch in the region’s healthcare industry. The full report on the Region’s healthcare sector (Aligning the Healthcare Workforce Pipeline) can be found in Appendix C.

Workforce Skills and Credentials

Essential Skills for the Region’s Workforce

Occupational credentials are only a part of the workforce development needs for businesses in the Region’s high-growth industry sectors. CRWIG’s ongoing business engagement process revealed a critical need for essential skills for the current and emerging workforce. Business representatives have indicated that some current employees and a substantial amount of potential employees are significantly lacking in the “soft skills” or “work readiness skills” department – skills such as teamwork, decision-making, and communication. CRWIG refers to these skills as essential skills due to the overall importance of these skills in the hiring and employment retention process. Research suggests these skills are important for first-time employees and are critical to developing and maintaining a strong, vibrant workforce (US Department of Labor, 2014).

CRWIG analyzed the top essential skills required by businesses in the Region’s high-growth industry sectors using data from the focus groups and business workforce needs surveys. As Chart 2 illustrates, communication was the essential skill most commonly cited as missing or limited in the workforce by survey respondents, followed by problem solving/critical thinking and work ethics tied for second on the list of essential skills noted by businesses. Teamwork and customer service skills were listed as the top fourth and fifth essential skill. In addition to being the among most cited essential skill, work ethics was the skill most commonly cited by businesses as ‘very important’ (1), followed by customer service, communication, problem solving/critical thinking, and teamwork.

Chart 2: Essential Skills for the Workforce (in rank order from 1-5)

Priority Credentials

One of the primary strategies CRIWG uses in order to achieve its mission is providing resources to support occupational skills training for current and emerging members of the local workforce. CRWIG has heard the clarion call from Governor McAuliffe (Executive Order 23, Appendix B) and is sharpening its focus on the workforce credentials that count for business growth and increased employment opportunities in the Crater Region.

It is important to note that as a workforce intermediary, the CRWIG can have an indirect impact on the credentials of a significant portion of the local workforce, through partnerships with education, community, and business partners. In terms of direct impact however, the CRWIG is responsible for a much smaller percentage of the overall number of occupational credentials awarded in the Region. Due to the limited amount of funds available through the organization’s primary funding source for training (WIA/WIOA), it is necessary to limit the overall scope of planning for specific credential goals.

Through its recent local plan development process, the CRWIG identified three sectors that are high growth industries in the Region: Healthcare, Manufacturing, and LTWD (Logistics, Transportation, Warehousing and Distribution). The workforce skills and credentials plan will focus on these priority areas, with the understanding that business sectors and corresponding credentials in demand will be modified as a part of the ongoing engagement process with the Region’s business community. In the table below, the top five credentials are listed in priority order, based on primary and secondary data analysis.

1. Licensed Practical Nurse (LPN)

1. High School Diploma/GED

1. Commercial Driver’s License (CDL)

1. Registered Nurse (RN)

1. Forklift Certification

1. High School Diploma/GED

1. Certified Nurse Assistant (CNA)

1. Associate Degree

1. Forklift Certification

1. Administrative Assistant*

1. Career Readiness Certificate (CRC)

1. Associate Degree

1. Certified Dental Assistant (CDA)

1. American Welding Society Certification (AWS)

1. Security+ Certification

*multiple credential options are available to meet the administrative assistant occupation requirements, such as Associate of Applied Science Degree and Career Studies Certificates.

CRIWG analyzed data regarding credential attainment for the past two years, and identified the number of credentials that match demand for high-growth sectors in the region. While progress is being made on some of the demand credentials, a plan is needed that will result in a significantly higher number of in-demand occupational credentials and essential skills available in the Region’s current and emerging workforce by 2017.

2013 Credential Attainment

This section illustrates the number of credentials that were achieved directly through CRWIG’s resources in the local workforce system during the period July 1, 2013 through June 30, 2014 (PY14). The figures refer to the top five credentials in demand by businesses in the high-growth sectors; refer to Appendix E for overall credential attainment for PY14.

^The CRC is a Virginia Workforce Board credential; CRWIG will meet or exceed state level goals

2014-16 Credential Attainment Goals

The table below outlines goals CRWIG has established for attainment of the top five credentials in the Region’s high-growth industries. Please refer to Appendix E for overall credential attainment goals for Program Years 2014-2016. CRWIG projects a minimum credential attainment increase of 10% during year 2015 and 10% percent during year 2016.

^The CRC is a Virginia Workforce Board credential; CRWIG will meet or exceed state level goals

Increased Funding for Essential Skills and Credentials: A 3-Year Plan

Workforce 2017: Trained, Ready to Work, and Credentialed

When combined with Labor Market Information (LMI), the data collected through the business sector roundtables and workforce needs surveys provides useful insight regarding the next steps CRWIG should take to meet the needs of local businesses for skilled and motivated workers. A clear plan is needed that will result in a significantly higher number of in-demand occupational credentials and essential skills available in the Region’s current and emerging workforce by 2017. The Secretary of Commerce and Trade for the Commonwealth of Virginia notes the importance of such a plan in his memorandum to the leadership of Virginia’s Workforce Investment Boards and other agencies that operate workforce development programs across the state. The Secretary pointed out that career opportunities in fields such as Advanced Manufacturing, Information Technology, Energy, Logistics and Health Care offer the prospect of good jobs in high growth industries and are readily accessible to those who are trained, credentialed and ready to work.

A number of administrative efforts can support the essential skills and credential development for the workforce of 2017. CRWIG will coordinate Workforce Center management in milestone tracking such as the number of customers enrolled in high-demand training and specific program retention rates. The CRWIG’s business solutions team will conduct quarterly reviews of goal progress with workgroups for the healthcare, manufacturing and LDWT industry sectors. These and similar efforts will result in data-driven decision making and real-time adjustments in strategies to improve essential skills and in-demand credential attainment.

However, administrative and program management efforts must be supported by an overall increase in funding for occupational skills training in the region. CRWIG will implement an aggressive plan to increase the percentage of WIA funds expended on training that leads to essential skills and occupational credentials in demand by high-growth sectors in the region. This plan consists of 4 primary strategies: incorporating essential skills training, prioritizing in-demand occupational credentials, leveraging philanthropic partnerships, and reducing operations costs. The specific details and objectives for each strategy are discussed in the following sections. A summary of the strategies, objectives, evaluation methods, and projected timeframes is available in Table 4.

Incorporating Essential Skills

The first strategy in CRWIG’s plan for a trained, credentialed and ready workforce in 2017 focuses on essential skills. As noted previously, communication, problem solving/critical thinking, work ethics, teamwork and customer service are the skills most commonly cited as missing or limited in the workforce by businesses in the region. In order to ensure current and potential employees receive necessary training in these essential skill areas, CRWIG will enhance partnerships with organizations that specialize in work ready skill training. This will include seeking additional non-government funds to support essential skills training for all individuals enrolled in WIA/WIOA funded occupational skills training. CRWIG will adopt a policy to require integration of essential skills training in the individual service strategies for all Workforce Center and youth program contractor customers.

CRWIG will also explore options for credentials related to essential skills. An example is the National Work Readiness Credential (Appendix F), which has been developed to provide a national, portable assessment-based certification that affirms individual jobseekers have demonstrated the foundation knowledge and skills that are needed for successful performance as entry-level workers. CRWIG will identify at least one essential skills credential option for the local workforce as a part of its plan for developing a trained, credentialed, and ready workforce for 2017.

Prioritizing In-demand Credentials

As noted in previous sections of this report, CRWIG has clearly identified the top 5 occupational credentials in-demand by businesses in the Region’s high-growth industry sectors. This information will be disseminated to all Virginia Workforce Centers, youth program contract agencies, and other workforce partner agencies in the Region. CRWIG will ensure that program operators and contractors redouble efforts to carefully assess and evaluate candidates for occupational skills training, in order to maximize the success rate for in-demand credential obtainment.

CRWIG will adopt a policy requiring contractors serving adults, dislocated workers, and youth to expend a minimum of 50% of all WIA training funds on training that leads to at least one of the top 5 occupational credentials in-demand by businesses in the healthcare, manufacturing, and LDWT industries (see Table 1). This 50% expenditure requirement will remain effective each year, until the Region has met the annual occupational credential goals established for each in-demand sector, as outlined in Table 3. CRWIG’s policy will require a focus on credentials that are in demand, with the understanding that high-growth business sectors and corresponding in-demand credentials may need to be modified as a part of the ongoing engagement process with the Region’s business community.

Leveraging Philanthropic Partnerships

CRWIG will increase the development efforts of its 501(c) 3 nonprofit organization (Learn To Earn, Inc.) in order to secure foundation and private resources to supplement the workforce training budget. In the past, Learn To Earn, Inc. has received support from business partners as well as private foundations in the region. In order to obtain flexible resources that can be targeted to credential and essential skill training activities, CRWIG will partner with Learn To Earn, Inc. to submit a minimum of two grant proposals each year. Additionally, Learn To Earn, Inc. will partner with other nonprofit organizations such as AmeriCorps to leverage in-kind staffing, which will allow for reallocation of funds to the WIA training budget.