Reworking Workforce Development: Chicago’s

Sector-Based Workforce Centers

Dave Hanson and Jeff MarcellaChicago Department of Community DevelopmentGreg SchrockUIC Center for Urban Economic Development

National Network of Sector Partners“Webinar” 7/30/2009

1

Presentation OverviewPresentation Overview

• Chicago’s Sectoral Initiatives: Background – Dave Hanson and Jeff Marcella

• Evaluation: Key Findings, Challenges and Implications – Greg Schrock

• Recommendations and Responses – Hanson, Marcella and Schrock

2

Chicago’s Sector Centers:Development

Chicago’s Sector Centers:Development

• Regional Industry Summits• Chicago Workforce Board Sectoral Committee discussions

(2004)• Research on models elsewhere• Industry input (national and local associations)• State of Illinois “Critical Skills Shortage Initiative”

(CSSI) regional analyses and project plans by Workforce Boards of Metropolitan Chicago

• City request for proposals and selection of ManufacturingWorks and ServiceWorks (2005)

• Launch of Chicago LEADS and sector initiatives in multiple industries (2008)– TDLWorks, HealthWorks, GreenWorks…

3

Chicago’s Sector Centers:Vision

Chicago’s Sector Centers:Vision

• Develop a demand-driven workforce system for the City’s workforce system, WorkNet Chicago

• Employer as the main customer• One stop shopping for business – cut through

government bureaucracy!• Centralize workforce system expertise

in a targeted industry sector• Hub for WIA system recruiting and training within

the industry sector• Teach “supply” side of WorkNet Chicago about

industry hiring needs, assessment/suitability, training options, etc

• Develop innovative training and placement programs in partnership with employers

4

Chicago’s Sector Centers:Partners

Chicago’s Sector Centers:Partners

Public Workforce System (WIA and beyond)

Sector Businesses Diverse scale and representing sub-sectors

Business Associations Labor Workforce Development System Education

Community Colleges, K-12, Proprietary schools Economic Development Community-Based Organizations

5

Chicago’s Sector Centers:Training

Chicago’s Sector Centers:Training

• Recruiting and screening of candidates• Workforce needs assessments

and customized response plans• Industry input and approval of

training curricula• Customized training• Incumbent Worker training• Labor market information• Resource for information on tax credits,

economic incentives, funds for training, industry comparisons & HR consulting

6

Chicago’s Sector Centers:Services:

Chicago’s Sector Centers:Services:

• Give Business What Business Wants: Recruiting

Listen carefully Observe on-site Conduct skills analysis Develop job profiles

Speed and Responsiveness Professionalism

Think Like Business, not a non-profit (ADMIT THAT THERE’S A DIFFERENCE!)

NO EXCUSES – Under-promise, over-deliver Build Relationships over time

competency, consistency, transparency NO WORKFORCE SYSTEM JARGON!

7

Chicago’s Sector Centers:Services

Chicago’s Sector Centers:Services

Give Business What Business Needs:• Tiers of Businesses and Tiers of Services• Assessment• Reality Checks• Facilitate business

“transformation”

8

Chicago’s Sector Centers:Operatio

nal Model

9

Chicago’s Sector Centers:Accomplishments 7/05 to 12/09

Chicago’s Sector Centers:Accomplishments 7/05 to 12/09

ManufacturingWorks

ServiceWorks

Businesses Served

394 413

Hires/Placements 1682 1324

Average Wage 12.50 10.25

Interview-to-Hire Ratio

1.6 to 1 1.5 to 1

10

11

Evaluation OverviewEvaluation Overview

• Questions– Are the Sector Centers serving businesses more

effectively than traditional One Stops?– Are they serving the needs of jobseekers?– Are they helping to make Chicago’s

WIA-funded service delivery system more efficient and effective?

– How can the overall model be refined and improved?

– Can we recommend this model to our peers?• Purposes

– Internal management tool for City and CWB– Opportunity to inform WD practice nationally

12

Data CollectionData Collection

• Interviews with 100+ individuals, including:– Agency and contractor staff – Subcontractors, industry partners

and advisors– 30+ employer customers– One Stops and WIA affiliates

• Data Analysis– Centers’ data on program

activities and outcomes

Finding #1: Relevance Finding #1: Relevance

1) Centers make the publicly funded WD system more relevant to employers and key industries.

Recruitment/job matching is only one element of companies’ workforce needs. Traditional services like recruitment need to be offered in way that starts from the needs of the business.

Result: companies engaged with Centers who had previously not interfaced with WIA system

13

14

Finding #2: Equity and Access

Finding #2: Equity and Access

2) Centers create a platform for addressing issues of equity and access.

Recognizing that employer problems like turnover often result from poor HR practice

Leveraging trusted relationships to offer advice that benefits workers and companies Increased wages = better candidates, lower retention

More inclusionary hiring patterns Stronger internal career ladders

Finding #3: Systems Integration

Finding #3: Systems Integration

3) Centers drive systems change toward a more integrated, demand-driven WD system- Stronger referral networks from

One Stops, CBOs, and non-WIA sources

- Alignment with higher-level sectoral partnerships

- Tighter relationships with training providers to inform and improve programs

15

16

Challenges of the ModelChallenges of the Model

• Reconciling internal tensions between employer and jobseeker goals– More broadly, between “performance”

and “development”

• Ensuring quality, not just quantity – focusing on more than hitting the numbers

• WIA funding a double-edged sword– Focus on job placements, but also helped

drive systems integration

Challenges of the Model

Challenges of the Model

• Building the systems for disadvantaged workers to get opportunities

• System coordination around case management and referral processes

• Collecting new and different kinds of data

• Fostering cooperation and learning

• Building a brand for the Centers that is distinct from the providers

17

Implications for WD PracticeImplications for WD Practice

1. A more business-focused approach is important but should not be an end in itself.

2. Sectors aren’t everything, but they are a valuable tool for aligning resources and goals.

3. If you don’t build equity and job quality concerns into the vision, it will never be there.

4. Public funding is important but it can’t – and probably shouldn’t – be the only source.

– Fee-for-service a critical component

18

Recommendations to City… and City Responses

Recommendations to City… and City Responses

1. Diversify the funding streamSeeking alternate fundingChicago LEADS corporate and foundation supportFee for Service launch Spring 2009

2. Consider alternatives to bricks-and-mortar Centers, e.g., more decentralized, network modelsTDL and HealthWorks less centralized,

more project-based. “Business Basics” – Focus efforts on business

and depend on total system for recruiting.Sector Team plans.

19

Recommendations to City … and City Responses

Recommendations to City … and City Responses

3. Look for regional partnership opportunities Collaboration with County parallel entity. Build partnerships with metro boards Machining Career Project

4. Make investments in IT and technical assistance to improve and standardize data collection and sharing systems

Exploring business customer account management products

Ongoing challenge of funding data systems. Recommended models?

20