Wednesday, October 1, 2014

A summary of the USCM WDC Meeting in Washington



US Conference of Mayors – Workforce Development Council Meeting
September 29th and 30th – Washington, DC


Monday
I have just returned to Tallahassee from a marvelous meeting of 2 days in Washington DC. The subject matter for this meeting was to gain additional insight and training on the new Workforce Innovation and Opportunity Act (WIOA) that passed this summer.

Our Monday morning briefing was provided by Rochelle Daniels, Assistant County Attorney, CareerSource Broward on the pluses and minuses of the new law and what implications from her point of view were in the law. For the most part, Florida is already aligned well with this law and so there will not be a lot of changes to the way we are operating currently at CareerSource Capital Region (CSCR). Probably the largest change is in the youth services where 70% of our money will be required to go to out of school youth where in the past that was about what we would spend on in-school youth. These youth will be required to accomplish their goals and be closed out of the system over the next two years in a way that will not hurt our performance.
There will be additional performance measures that have yet to be defined and will probably take some feedback from the system before DOL arrives at a final definition.
The rest of the day was a business meeting for the Council and committee reports.

Tuesday
In the presentations on this day we found out what the vision of this new law was and the concepts and expectations of the writers of the law. This was clarified for us by Scott Cheney who was the lead on the Senate budget committee for WIOA. Here is a synopsis of his comments.
ü  The underlying initiative for the new law is to make the boards at the local level more flexibility in how they manage the system.
ü  It also gives the boards more authority and they are required to sign off of other plans of related federal partners. That means the boards will need to be aware of an overall regional strategy and how the partners fit into that strategy.
ü  In addition vocational rehabilitation will become a full partner and a required partner in the one stops.
ü  The writers envisioned a combined planning effort with economic development, partners, Chamber of Commerce, and those with an interest overall in the workforce system which includes job seekers and employers.
ü  Scott pointed out that some of the training that has already been provided at the national level mistakenly infers that universal service has somehow gone away. That is not true. There is a realignment of priority of service with attention being given to those with disabilities, the long-term unemployed, and the opportunities for apprenticeships being the focus, however, all customers that walk into the Career Centers must be served in some way.
ü  Draft regulations will be coming out beginning of the year and open to feedback and discussion by the practitioners in the system. This will give the Department of Labor quality feedback as they draft regulations that are meaningful and helpful to the system.
ü  It is really going to be incumbent upon the Board of the workforce region to think regionally, to think across state lines, to think how to engage all the partners that have invested interest in the talent and human resources of our region.
ü  The bill continues to stress sector strategies, and in Tallahassee we already have our sector roundtables that the chamber and EDC have organized and supported. This tool should be adequate for us to perform the career ladder engagement and mapping that we will need to do under this new law.
ü  There will continue to be a focus for the next 2 years on apprenticeships in sectors where apprenticeships have not been the usual method of hiring new employees. Look for grants coming out of the Department of Labor that will encourage best practice experiments so that the system can learn and become better at apprenticeships.
ü  The Boards will be required to have a conversation as to what do partnerships mean both in the literal sense and in the mutual relationship responsibilities that that brings them to the table.
ü  Adult literacy is also now included in our law and a plan will be required by the adult literacy folks that must be signed off on by the local workforce board.
ü  Scott was very clear that this law is to encourage creative ways of approaching problems, root cause analysis, and defining in kind services that are reasonable and acceptable.
ü  This law encourages Boards to take an entrepreneurial approach to how they operate.
ü  The system is meant to engage and be focused on credentialing because that is the monetary currency of our businesses.
ü  The law also introduces the idea of business engagement in the fact that the demand side plays a very important role in the system.

Under Secretary of Labor – ETA – Portia Wu
ü  Following Scott Cheney, the under Sec. of labor, Portia Wu gave a presentation on how the Department of Labor sees WIOA and the accountability that goes with the new law.
ü  Data that is coordinated and verifiable will be important to the system strategic planning by the local workforce board is at the core of the expectation of the new law.
ü  Community colleges are recognized as key partners in this system and need to be engaged in the determination of strategies for the region.
ü  Ready-to-Work partnership grants will be coming out soon as will a registered apprenticeship grant (usually called learn and earn) which will be out in the next week or two.
ü  Additional strategies by the Department of Labor include continuing Youth Build and strengthen in the employer connections to that program, integration of ex-offenders strategies at the local level, and how the American Job Centers fit into the justice system.  The Board must work more closely with education providers so that ex-offenders coming out of the jails have skill sets that are recognized and certified and shows they are ready to be employed. I suggested with this cohort that there also be an effort to use a program similar to start up quest because many of those in jail are very entrepreneurial and may be far more successful as small business owners then trying to maintain a job.
ü  We also discussed the idea of don’t check the box, which most employment applications have on past criminal history because it serves as a deterrent for the business community to hire someone with a blemished past.
ü  This Secretary was very clear that the Congress was pleased the fact that during 2008 to 2009 Great Recession our system served 20 million jobseekers.
Gerri Fiala- Deputy Assistant Secretary ETA
ü  Ms. Fiala, who has been with the Department of Labor for quite some time made a presentation from the working group’s point of view and the Department of Labor and she included for strategies that she feels are most important for success.
ü  The 1st is a shared strategic planning which is a four-year strategy. Department of Labor will be looking for fundamental analysis and each workforce region’s organization in order to achieve common goals. July 1, 2015.
ü  The next pillar is shared governance
o   the boards will be more agile
o   a lot better positions them to meet the local needs
o   New activities will include the local elected officials and their engagement in the system in a more productive way
o   There will be career pathways and sector strategies that need to be embraced in the plan
o   There is an expectation that the local elected officials County commissioners and Mayor would be committed to make sure that the workforce investment boards are successful.
ü  The 3rd pillar is integrated performance management. The federal government is moving forward more and more to develop evidenced-based programs that show results and that have measures that can be compared across state lines and regional lines.
ü  The final pillar is customer focus service delivery – it will take an assessment of the indirect intake and management systems that are currently in place an expectation is that new and better ways of tracking and measuring performance will be developed over the next few years.

Commissioner Janet LaBreck and Deputy Assistant Secretary Jennifer Sheehy – Vocational Rehabilitation – DOL
Vocational Rehabilitation is another mandated partner in the new WIOA law. In the past here in Tallahassee vocational rehabilitation has had a presence in our 1 stops in an intermittent way. With this new law that are now mandated to become a full partner in the career center system. It was suggested and I will follow up on reaching out to the vocational rehabilitation person here in Tallahassee to discuss how we might integrate their services in a more uniform fashion. About 3 weeks ago, the governor sent his disabilities task force to tour our S. Monroe Career Ctr. I suspect that this tour was because of this change in the law. I know from the feedback, that the people who came through our one-stop were very pleased to see that we were pretty accessible to anyone with a disability. The key in the future is how we raise the awareness of the business community so that the disabled (or other abled as my priest friend would say) are competitive and are accepted to positions that best utilize their skills. That’s really the question that I posed to Commissioner LaBreck. At the federal level it would be helpful if DOL/VR put together PSA’s that show the success stories that dot the country where people with disabilities have been hired and businesses have thrived with the quality of work provided by these folks.

This meeting was one of the best meetings and best attended meetings by 45 different workforce professionals and an excellent networking event. I sat next to the city of Chicago workforce executive as well as Orlando’s executive. I also was part of the presentation on startup quest to the entire group is a peer-to-peer best practice and continue to suggest that the entrepreneurial training is something that the workforce system needs to do more.
The discussions were rich with questions on the new law and how we will carry it out as a system.

The Congress of the United States has put into place a challenge to our ever evolving system to get better at what we do, to have more business engagement, and to create the data points to show progress and success that we have every day.
I would appreciate any comments you may have. - Jim

The Gordon Report with Comments on IBM charging staff for training



 From my friend Ed Gordon....
Gordon Report
Special Talent Alert
"How to Lose Business Talent"

IBM is cutting the pay of certain workers in one of their divisions by 10 percent for a six-month period while they are enrolled in company-provided training to acquire new skills and expertise. In the current fight for business talent this seems a peculiar move for a knowledge-based company!

At one time IBM led the IT industry in employee development. Their corporate motto was "THINK". In fact, IBM University was an accredited educational entity that awarded college degrees to its workers. IBM also has been active in developing the P-TECH early college/high school career academy in Brooklyn, New York. It is a public high school, open to all students, that enables students to graduate in six years or less with a high school diploma and an associate's degree in either computer information systems or electromechanical engineering technology. IBM has put together a free guide for developing similar academies in other U.S. cities.

Why is a corporation that has long been known for its generous range of incentives for promoting employee education and training, seemingly without prior warning or consultation now begun penalizing some employees by deducting an arbitrary proportion of their salary for the time they will be receiving training that IBM judges necessary to address future needs? We can only speculate that this move is part of the prevailing short-sighed cost-cutting continuing across the U.S. business community. Company investment in plant and equipment and R&D is also stagnant.

As the profits of U.S. publicly traded companies generally remains high, what are they doing with these funds? Stock repurchases today are running at record levels. Edward Luce of the Financial Times reports (9-22-14) that between 2003 and 2012 the top 449 businesses in the S&P 500 spent $2.4 trillion, more than half their profits on stock buybacks.

Many executives today receive stock options or stock awards for meeting performance goals. These incentives encourage driving short-term value from the companies they manage. Creating future values by in investing in equipment, R&D, or their human capital is not on the table.

Let's hope that other wiser managers prevail at IBM and rescind this move that threatens to weaken its employee talent base and undermine morale. However, what can we expect if IBM's short-sighted and regressive talent move prevails and is adopted by other businesses as the new wisdom on the street? U.S.competitive advantage will decline as the current employee skills gap continues to grow.

Edward E. Gordon is the president of Imperial Consulting Corporation (www.imperialcorp.com). His latest book is Future Jobs: Solving the Employment and Skills Crisis (Praeger, 2013).

Business continues to ignore the fact that although this recession has eased considerably, there continues to be a worker shortage - actually more of a skill shortage,  along with the mentality of offering low pay. The idea that workers can foot the bill (as above) for the necessary training the company needs for a competent staff may be a bean counters dream, but it will adversely affect morale. I agree with Ed  and the outcome in todays world is for the word to spread by going viral with the technically savvy younger workforce. Unintended consequences of this move will show up eventually. Does IBM really want to jepardize their workforce further?

Jim McShane