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Gary Yakimov Director of Business and Industry Strategies Corporation for a Skilled Workforce

Gary Yakimov Director of Business and Industry Strategies Corporation for a Skilled Workforce June 25, 2009. Industry-centered partnerships among firms in key industries with educators, workforce developers, and economic developers Wholesale, not retail strategy

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Gary Yakimov Director of Business and Industry Strategies Corporation for a Skilled Workforce

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  1. Gary Yakimov Director of Business and Industry Strategies Corporation for a Skilled Workforce June 25, 2009

  2. Industry-centered partnerships among firms in key industries with educators, workforce developers, and economic developers • Wholesale, not retail strategy • Organize around industry needs, not public programs • High leverage possible with limited funding

  3. Multi-employer, industry specific, employer led • Regional, flexible geography based on industry • Sustained over time • Engage broad array of key stakeholders • Led by a strategic partner with industry credibility • Promote systemic change

  4. Provides focus – on key industries’ success • Aligns resources and strategies • Win-Win proposition for all stakeholders • Venue for innovation • Create career ladders and lattices for workers • Connection to/with Adult Literacy and Education • Compliments existing workforce and economic development efforts

  5. Turnover: 41% reduction • Rework: 19% reduction • Customer complaints: 23% reduction • Companies that said partnerships with other companies were valuable: 100% Source: 3rd party evaluation of Massachusetts SectorInitiative

  6. Employees who participate in sector-related training earned an average of two dollars more per hour • Participants in sector skills-training programs saw decreases in poverty (from 64% to 35%) • Participants gained new jobs as a result within targeted sectors • 83% of participants agreed that the training prepared them well for work in the targeted sector • 78% said the program had improved their chances of getting a good job Source: Public-Private Ventures http://www.ppv.org/ppv/publications/assets/263_publication.pdf

  7. 20+ States are using or developing Sector Strategies as a framework for regional economic competitiveness Hundreds of local areas use sector initiatives to connect workers to critical industries in their region.

  8. Industry-focused regional partnerships are at a tipping point across the country • Key Factors: • Growth in number of communities adopting the model or planning to do so • Need for innovative approaches to workforce, economic development in every industry • The success of the model in improving the bottom line for employers and in increasing opportunities of job seekers in the community • Widespread interest among state and local policymakers to support the partnerships • Federal interest in the model also growing

  9. State Workforce Intermediary Education and Training Providers Work Support Providers Workers Businesses & Industry Associations

  10. Management by a Workforce Intermediary Services Delivered by Partner Organizations Focus: An Industry within a Regional Labor Market • Operations • Provide programmatic services to workers and employers • Coordinate activities to produce outcomes • Obtain resources for sustainability and expansion • Bring about system change • Design and Development • Convene partnership • Conduct research • Target occupations • Design services • Determine new needs • Obtain start-up resources

  11. Definition and resolution of key human capital issues facing the industry, including: • Short and long-term hiring challenges • Retention issues • Incumbent worker skill development • Work reorganization • Institutional and regulatory obstacles

  12. Sector partnerships tackle mix of immediate challenges and long-term issues • Beyond training, the work may involve: • Identifying and naming sets of skills needed for the industry and its occupations • Developing new or revised curriculum and credentials to address skill shortages • Developing supports for workers undergoing training • Raising awareness about career opportunities • Helping employers improve HR processes • Aligning local education, workforce, economic development activities

  13. Employers and Employer Associations • K-20 Education Counties and Cities • Workforce Development • Economic Development • Social Services • Community Organizations • Across geographic jurisdictions (e.g. multiple counties) • Across public entities (e.g. education and economic development) • Across types of organizations (e.g. public, private, non-profit, philanthropic, education) • Across levels of education (“cradle to grave”)

  14. Employers – shared cost, a place to solve major talent issues, a single table at which to work with public entities • Educators – venue for faster understanding of changing industry needs; play out of educational career pathways • Workforce Developers – strategic focusing of time and resources for high leverage with key industries while meeting worker needs • Economic Developers – place for focused work with key industries on talent questions; can be major tool in retention and growth strategies

  15. Successful State Sector Strategies: • Promote Regionalism • Increase Funding Opportunities • Align Resources and Strategies • Use Data to Drive Decisions • Present Opportunities for Unified Messages • Build Legislative Support

  16. Economic and workforce activity is localized • Artificial boundaries are not important to employers, workers, and job seekers • Laboratories for innovation and transformation • Examples of State-Regional Strategies: • Illinois Critical Skills Shortage Initiative • Michigan Regional Skills Alliances • Pennsylvania Industry Partnerships

  17. Industry Clusters • Career and Technical Education • Adult Literacy and Education • Business Networks • Existing networks and relationships across workforce Councils, Economic Development and education providers

  18. Unemployment in MD continues to rise (April 2009 data) • + 3.2% since beginning of recession • All industries except two showing job declines over the year • Healthcare and Education (+7,600) • Government (+6,500) • Businesses are tightening their wallets including time resources • But…..there are opportunities……

  19. ARRA Competitive Funds • Employment and Training Administration ($750m) • Economic Development Administration ($150m) • National Science Foundation (STEM Teacher Grants) • Department of Energy and EPA (Weatherization Grants) • National Sector Legislation • Various federal statutes up for reauthorization • Sectors and Adult Literacy/Education will be at the forefront of policy/funding

  20. Gary Yakimov • Director of Business and Industry Strategies • CSW • 301.765.0437 • gyakimov@skilledwork.org

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