Michigan WorkKeys Conference

1. ® Michigan WorkKeys Conference Dick Ferguson CEO and Chair – ACT, Inc. Nov. 6, 2007 Michigan WorkKeys Conference

2. Some Background on ACT • Founded in 1959 • Education in the ’50s • A not-for-profit 501(c)(3) public trust • Initial service: The ACT® • ACT’s philosophy Michigan WorkKeys Conference

3. ACT’s Evolution • Belief: College readiness begins early • Linking the ACT to college AND career planning • Testing to inform decision-making • Students, Parents, Counselors, etc. • Creating a college readiness SYSTEM • EXPLORE®, PLAN®, and the ACT Michigan WorkKeys Conference

4. ACT’s Evolution • Development of College Readiness StandardsTM, benchmarks • Advocacy for rigor and partnerships with states, districts, etc. • Professional/occupational assessments • Expanding from college readiness to work readiness Michigan WorkKeys Conference

5. ACT’s Evolution ACT’s Workforce Development Division • Developed in the late 1980s • Early warnings: Impending crises in the workforce • Workforce readiness issues similar to college readiness Michigan WorkKeys Conference

6. The Perfect Storm Michigan WorkKeys Conference

7. The Perfect Storm Circumstances: • Educational pipeline • Increased reliance on immigrant labor • Retirement of baby boomers • Global competition for natural resources • Outsourcing Michigan WorkKeys Conference

8. The Perfect Storm Threats to the Workforce Jobs require higher skills • DOL: 80 percent of jobs will require some postsecondary education • DOL: 75 percent of employees must be retrained to keep the jobs they have • Meanwhile, HR professionals report difficulties in hiring workers with essential skills Michigan WorkKeys Conference

9. The Perfect Storm Threats to the Workforce Shifting demographics: • BLS: More than 25 percent of the working population will reach retirement age by 2010 • By 2012: • U.S. workers aged 55-64 will grow 51 percent • U.S. workers aged 35-44 will decline 7 percent • Hispanics: Fastest-growing segment of the workforce • However, one-third don’t have a diploma Michigan WorkKeys Conference

10. The Perfect Storm Threats to the Workforce Inadequate skills held by workers • BLS: Employers estimate that skill deficiencies are held by 39 percent of incumbents and 26 percent of new hires • Adult Literacy Survey: • 50 percent of the U.S. population is functionally illiterate • 52 percent of high school graduates lack basic skills required to do jobs adequately Michigan WorkKeys Conference

11. The Perfect Storm Education Pipeline – Are we preparing students? ACT studies: • Rigor at Risk (2007) • In 2006, only one-fourth of ACT-tested students met ALL college-readiness benchmarks • 1 in 5 met no benchmarks at all • ACT Curriculum Survey (2007) • 65 percent of college instructors say state standards prepare students “poorly” Michigan WorkKeys Conference

12. Reading for Information Applied Mathematics 0% 5% 1% 6% 7 7 4% 18% 5% 17% 6 6 20% 32% 14% 28% 5 5 4 4 43% 32% 36% 25% 34% 7% 44% 16% 3 3 0% 6% 0% 8% Below 3 Below 3 Job Profiles 9/02–8/07 All Examinees 9/06–8/07 Job Profiles 9/02–8/07 All Examinees 9/06–8/07 Level Level 4,164 N 423,739 3,890 N 421,582 The Perfect Storm Skilled Labor Gaps – ACT WorkKeys® Data Michigan WorkKeys Conference

13. The writing on the wall: • A Nation at Risk (1983) • Countries matching/surpassing U.S. educational achievements • Educators losing sight of basic schooling principles • Foreign products gaining edge • Other reports: Insufficient number of skilled workers to fill jobs Michigan WorkKeys Conference

14. The WorkKeys SYSTEM • Multiple components: • Job profiling • Skills assessment • Skill training • Foundational Skills – applicable to whole workforce • 2007 – Personal Skills added • Helps employers avoid a ‘shotgun’ approach to training Michigan WorkKeys Conference

15. A ‘ruler’ for skills Michigan WorkKeys Conference

16. TM • A career skills credential to be used with diplomas, resumes, etc. • Powered by WorkKeys® • WorkKeys – 14,000 jobs profiled Michigan WorkKeys Conference

17. TM Bronze Silver Gold Automotive Body Repairers Butchers & Meat Cutters Cooks, Cafeteria Workers Furniture Finishers Home Health Aides Housekeeping Supervisors Janitorial Supervisors Machine Set-up Operators Painting & Coating Workers Refuse Material Collectors Accounting Clerks Auto Master Mechanics Billing Clerks Licensed Practical Nurses Machine Operators Machinists Medical Laboratory Technicians Payroll Clerks Pipe Fitters Production Inspectors Computer Programmers Electricians Environmental Engineering Technicians Executives Instrumentation Technicians Librarians Semiconductor Processors Training & Development Specialists Vocational Education Teachers Wholesale & Retail Buyers Michigan WorkKeys Conference

18. TM Michigan WorkKeys Conference

19. TM Michigan WorkKeys Conference

20. TM WHY? • ONE credential, nationally recognized • Survives changes in government • Has MEANING for employers Michigan WorkKeys Conference

21. Michigan – Leading the Way Michigan WorkKeys Conference

22. TM • Grand Rapids, Mich. – WIRED project • Goal: 50,000 NCRCs issued by 2012 • Buy-in from more than 100 regional employers • Michigan Merit Exam – Making the NCRC available to ALL Michigan students Michigan WorkKeys Conference

23. Surviving ‘The Perfect Storm’ Michigan WorkKeys Conference

24. Surviving ‘The Perfect Storm’ • Adopt solutions that work • Work together • Embrace a common language – related to skills • Get business leaders to get behind a skills-based message Michigan WorkKeys Conference

25. ® Questions/Comments? www.act.org Michigan WorkKeys Conference Michigan WorkKeys Conference