Enhancing(Unemployment(Insurance(Wage(Records( Potential(Benefits,(Barriers,(and(Opportunities

Transcription

1 Enhancing(Unemployment(Insurance(Wage(Records( Potential(Benefits,(Barriers,(and(Opportunities ( Prepared(for(the(Workforce(Information(Council(by(the( Administrative(Wage(Record(Enhancement(Study(Group( September(2014(

2 AdministrativeWageRecordEnhancementStudyGroup RajJindal,Louisiana,StudyGroupChair RebeccaRust,Florida,WorkforceInformationCouncilStateCoDChair PhilBaker,Nebraska SachinChintawar,Louisiana RickClayton,BureauofLaborStatistics ThomasCrowley,EmploymentandTrainingAdministration RichardFroeschle,Texas GayGilbert,EmploymentandTrainingAdministration LynnGray,Oklahoma SteveHine,Minnesota EvelinaLoescher,Illinois SueMukherjee,Pennsylvania RandyMurphy,Pennsylvania InayatNoormohmad,Kansas HeatherParker,EmploymentandTrainingAdministration DanRobinson,Alaska KarenStaha,EmploymentandTrainingAdministration BobUhlenkott,Idaho DonWehbey,NationalAssociationofStateWorkforceAgencies DuaneWhitfield,Florida SteveSaxton,SaxtonConsulting,ProjectCoordinator GaryCrossley,WorkforceInformationCouncilExecutiveDirector i

3 Enhancing(Unemployment(Insurance(Wage(Records( PotentialBenefits,Barriers,andOpportunities ASummaryofFirstDYearStudyActivitiesandFindings Preparedforthe WorkforceInformationCouncil bythe AdministrativeWageRecord EnhancementStudyGroup September2014 ii

4 Acknowledgements.. Ourgreatappreciationgoesouttoalloftheindividualsinstateworkforceagencies, publicandprivateuserorganizations,andpayrollservicesandsoftwarecompaniesthat respondedtoquestionnairesdevelopedinthisfirstyearofstudy,andthosethat participatedinconversationsaboutthistopicandassistedincollectingdatafromothers. Withouttheirassistance,thisexplorationwouldnotbepossible. ThesupportofMichaelHorriganoftheBureauofLaborStatisticsandfederalcoDchairof theworkforceinformationcouncil,richhobbie,executivedirectorofthenational AssociationofStateWorkforceAgencies,andGayGilbert,AdministratoroftheOfficeof UnemploymentInsuranceattheEmploymentandTrainingAdministrationandtheirstaffs hasbeeninvaluable.theinputandinterestfromthenationalpayrollreporting Consortium,includingPresidentPeteIsberganditsmembercompanieshascontributed muchtoourfullerunderstandingofreportingissuesfacingtheemployercommunity. Finally,specialthanksgotothefollowingindividualsandorganizationsforassistingwith followupontheuserorganizationsurvey.theseindividualsmadepersonalcontactswith nondrespondingorganizationstoencourageparticipation.throughtheireffortsthe surveyresponsewassignificantlyimproved. AllisonLeeuw,InterimDirector,ResearchandAnalysis, IndianaWorkforceDevelopment AnthonyP.Carnevale,DirectorandResearchProfessoroftheGeorgetownUniversity CenteronEducationandtheWorkforce CarolRogers,DeputyDirector,IndianaBusinessResearchCenter ChelseaOrvella,LegislativeDirector, SocietyforProfessionalEngineeringEmployeesinAerospace CynthiaForland,Director,LaborMarketandPerformanceAnalysis, WashingtonEmploymentSecurityDepartment KennethE.Poole,CEO/President,CenterforRegionalEconomicCompetitiveness LesleyHirsch,Director,NewYorkCityLaborMarketInformationService, CityUniversityofNewYork PaulShannon,AssistantDirector,Budget&ResourcePlanning, ArizonaDept.ofAdministration RonKelly,VicePresident,TechnicalAssistanceandTraining, CenterforRegionalEconomicCompetitiveness SpencerWong,Chief,LaborMarketInformationDivision, CaliforniaEmploymentDevelopmentDepartment iii

5 Table.of.Contents. Acknowledgements. iii Executive.Summary. 1 Key.findings...1 Next.Steps.and.Recommendations...3 Chapter.One:.Overview.of.the.Study. 5 Introduction...5 Background...6 Study.Plan...7 Chapter.Two:..Current.State.Practices.for.Unemployment.Insurance.Wage.Record.Collection.and.Use. 9 Study.Methods...9 Results...10 EmployerReportingMethods...10 FrequencyofEmployerReports...14 UsesoftheWageRecords...14 CurrentEnhancementstotheWageRecords...18 ConsiderationofAdditionalEnhancements...20 StateUISystems Capabilities...20 PreviousResearchintoEnhancementstotheWageRecords...22 Chapter.Three:.User.Organizations'.Views.Regarding.Enhanced.Wage.Record.Collection.and.Use. 23 Study.Methods...23 Results...24 ParticipantCharacteristics...24 ImportanceofRelatedWorkforceInformationGoals...27 ValueofAdditionalVariables...30 NonDResponseAssessment...34 PotentialUsesoftheEnhancedWageRecordData...37 AdditionalCommentsProvidedbyRespondents...37 Chapter.Four:.Payroll.Services/Software.Companies.System.Capabilities. 39 Study.Methods...39 Results...40 PayrollCompanyCharacteristics...40 TypesofMediaUsedtoTransmitData...41 PayrollServicePricingFactors...45 PayrollSoftwareSalesandUse...46 CapacitytoStoreandReportWageRecordEnhancements...46 FactorsContributingtoHighCostsforAdditionalVariables...48 OtherComments iv

6 Chapter.Five:.Summary.of.Findings. 51 Findings.That.Support.Wage.Record.Enhancement...51 GrowthinElectronicReporting...51 IncreasedReportingFrequency...52 ImprovementsinStateUIAutomatedSystems...52 EmployersAlreadyReportEnhancedData...52 PayrollServiceProvidersCanAccommodateMostEnhancedVariables...53 WideUsageofWageRecords...53 BroadUserSupportExists...53 UsersValuethePotentialOfferedbyEnhancedWageRecords...54 FederalStatutesSupportEnhancedWageRecords...55 EnhancedWageRecordsCouldReduceEmployerSurveyBurdenandImproveLaborMarketStatistics55 Findings.That.May.Hinder.Wage.Record.Enhancement...56 LackofCoordination...56 CompetingPriorities...56 ContinuedUseofPaperTransactions...56 LackofAdequateIncentivesforComplete,Accurate,andTimelyReporting...57 UncertaintiesOverOngoingFundingSupport...57 DataSecurityConcerns...57 InflexibleStateSystems...57 InconsistentDefinitions...58 LackofOccupationalCodingSkillsandTools...58 LackofStandardCodingtoReflectVarietyinCompensationPackages...58 Chapter.Six:.Next.Steps.and.Recommendations. 59 Next.Steps.for.the.Study.Group...59 ConveneanEmployerFocusGroup...59 ConductEmployerSurveys...59 DocumentStateEnhancementProcesses...60 Recommendations.for.Broader.Action...60 EncourageElectronicReporting...60 DevelopToolstoAssistwithOccupationalandGeographicCoding...60 IdentifyFinancialSupportforStateUIUpgrades...61 EstablishaStatePractitionersWorkingGroup...61 EstablishaWageRecordEnhancementAdvisoryCouncil...61 Appendices. 63 v

7 Executive.Summary.. Inlate2012,thefederalDstateWorkforceInformationCouncilestablishedan AdministrativeWageRecordEnhancementStudyGrouptoexaminethefeasibilityof addingvariablestothequarterlywagerecordreportsthatemployerssubmittoallstates aspartoftheunemploymentinsurance(ui)program.theybeganlookingatthe administrativerecordsasanalternativesourceforimprovinglocalandstatelabormarket informationamidconcernsovertheadequacyofexistingsurveydbasedstatisticaldatafor stateandlocaleducationandtrainingprogramplanningandaccountability,economic analysis,careerplanning,andworkforceprogramadministration. Initsfirstyearofinvestigation,theStudyGrouphassurveyedstateagenciesresponsible foruiwagerecordcollections,userorganizationsthatmightbenefitfromwagerecord enhancement,andpayrollservices/softwarecompaniesthatcompileandreportthe wagerecordsformanyemployers.thoseactivitieshaveresultedinsomekeyfindingsand recommendationsforfuturesteps. Key.findings. TheStudyGroupfoundseveralstructuralfactorsthatcouldcontributefavorablytowage recordenhancement: Growth(in(Electronic(Reporting:(morestatesarerequiringmoreemployersto reportelectronicallywhichfacilitatesmodificationstothewagerecordsand lowersthemarginalcostsofaddingvariablesandcollectingdata.( Increased(Reporting(Frequency:(Illinoisnowrequiressomeemployerstoreport monthlywhich,ifexpandedtootherstates,couldbroadenthebenefitsanduses ofthewagerecords.( Improvements(in(State(UI(Automated(Systems:(manystateshavereplaced decadesdoldtechnologywithmoderndatabasesthataremoreflexibleinhandling modificationssuchasaddedwagevariables.( Employers(Already(Report(Enhanced(Data:(twelvestatescollectoneormoreoften differentenhancedwagevariablesdemonstratingthatemployersarecapableof producingthedesireddata. Payroll(Service(Providers(Can(Accommodate(Enhanced(Records:(amajorityof payrollservicesfirmscontactedarecapableofhandlingmostoftheenhanced wagerecordvariables.( Wide(Usage(of(Wage(Records:(stateUIagenciescurrentlyworkwithmany potentialcustomers/usersthatarecallingforenhancedwagerecords.( Page 1

8 Strong(User(Support:(userorganizationsacrossawidespectrumareenthusiastic aboutthepossibleaccesstotheenhancedwagerecordsandthelabormarket informationgoalsthoserecordscouldhelpachieve. Users(Value(the(Potential(Offered(by(Enhanced(Wage(Records:(theuserssurveyed indicatedthatenhancedwagerecordswouldbehighlyvaluedbytheir organizationsandthosetheyserve,anddescribedmanyspecificusesforthe improvedwagedata.( Federal(Statutes(Support(Enhanced(Wage(Records:(anumberofcurrentlaws requireemployerstocompilevariablesbeingconsideredforenhancement.( Enhanced(Wage(Records(Could(Reduce(Employer(Survey(Burden(and(Improve( Labor(Market(Statistics:(severalfederalstatisticalprogramsusesurveysand reportstocollectthesameinformationthattheenhancedwagerecordscould provide.inaddition,thegeographicdetailfromthewagerecordswouldenablefar greaterprecisionandtimelinessatthestateandlocallevelthancurrentsurveys.( TheStudyGroupalsofoundanumberofcurrentconditionsthat,withoutattention,could hinderwagerecordenhancement: Lack(of(Coordination:(wagerecordenhancementcostsaremagnifiedwhenthe statesarenotworkingtogetherorwithemployerstodevelopsolutions.similarly theoverallbenefitsareunderstatedwhenallthedifferentusersandorganizations involvedarenotrecognizingandcommunicatingtheircommonneeds.(( Competing(Priorities:(economicconditionsandtheneedtodealwithantiquated systemskeepmanystatesfocusedsolelyonpayingbenefits,notonenhancingthe system.( Continued(Use(of(Paper(Transactions:(evenasmoreemployersareusingelectronic meanstoreportwagedata,alargenumberstillrelyonpaperandfax,which makeswagerecordenhancementmuchmoredifficultandcostly.(( Lack(of(Adequate(Employer(Incentives(for(Complete,(Accurate,(and(Timely( Reporting:(requiringadditionalvariablesonthewagerecordsispointlessunless employersreportthedataanddosocorrectlyandtimely.( Uncertainties(Over(Ongoing(Funding(Support:(todate,thecostsofwagerecord enhancementhavenotbeendeterminedandnofundingsourceshavebeen identified.( Data(Security(Concerns:(publicconcernsarepossiblewithanyincreaseinthe compilationandstorageofadditionalconfidentialinformation.( Inflexible(State(Systems:(ManystateshavenotyetreplacedlegacyUIsystemswith technologythatcanhandleadditionalwagerecordvariables.( Inconsistent(Definitions:(definitionsforwagerecordelementsoftendifferamong thestatesandbetweenstatesandthefederalgovernment;thisincreasesthe complexityandcostofreportingforemployersandleadstoinaccurateandlate reports. Page 2

9 Lack(of(Occupational(Coding(Skills(and(Tools:(employersoftendonotunderstand thedefinitionaldistinctionsinthestandardoccupationalclassificationstructure anddonotknowhowtoaccessoruseonlinetoolstoassignandmaintainthese codes. Lack(of(Standard(Coding(to(Reflect(Variety(in(Compensation(Packages:(current compensationoptionsusedbyemployersarecomplexandvariedandthereisnot astandardmethodforcodingemployeecompensationacrossstates.( Next.Steps.and.Recommendations. Forthecomingyear,theStudyGrouphasestablishedplanstocollectinputdirectlyfrom employersthroughtheuseoffocusgroupsandstateemployersurveys,anddocument theconsiderations,costs,processes,andactionstakeninstatesthathaveenhancedtheir wagerecordsandthosethatarecurrentlyworkingthroughit. Finally,theStudyGrouprecommendsthewidercommunityofparticipants,includingthe BureauofLaborStatistics,EmploymentandTrainingAdministration,NASWA,andthe statestakethefollowingsteps: Encourage(Electronic(Reporting:developincentivesandassistanceforstatesto increasethenumberofemployersthatreportelectronically. Develop(Tools(to(Assist(Employers(with(Occupational(and(Geographic(Coding:build ontoolsdevelopedbyo*netandthestatesthatcurrentlyenhancetheirwage recordsandworkwiththepayrollsoftwarecompaniestointegratesystemsthat makeiteasierforemployerstoassignandmaintainaccuratecodes. Identify(Financial(Support(for(State(UI(Upgrades:renewgrantstostatesfor modernizationofuitaxsystems,includeincentivestoworkcollaborativelyand buildsystemsthatcanaccommodatewagerecordenhancement. Establish(a(Wage(Record(Enhancement(Practitioners (Working(Group:thiswould facilitatecollaborationamongstatesengagedinorplanningforwagerecord enhancement. Establish(a(Wage(Record(Enhancement(Advisory(Counciltorecommend:1) commondataelements,definitions,andcodingstructures;2)incentivesfor accurate,complete,andtimelyreporting;3)alternativeimplementation strategies;4)allowableandappropriatefundingmechanisms;and5)legislative actionsrequiredtoimplementuniversalwagerecordenhancement. Page 3

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11 Chapter.One:. Overview.of.the.Study.. Introduction. ThisreportsummarizestheinitialyearofinvestigationbytheWorkforceInformation Council sadministrativewagerecordenhancementstudygroupintothepotential benefitsof,andbarriersto,enhancinglabormarketinformationbyaddingdataelements tothewagerecordscollectedbystatesaspartoftheadministrationofthe UnemploymentInsurance(UI)Program.. Ifenhancedwagerecordcollectionistobesuccessfullyundertaken,manysupporting entitieswillneedtoplayarole:potentialusers,employeradvocates,federalandstate legislators,andstateexecutivesandstaff,amongothers.ultimately,however,three playersarefundamentaltothesuccessfulcompilationofenhancedwagerecords:1) individualemployers,whocompile,maintainandreportwagerecordsfortheir employees;2)thirddpartyserviceproviderssuchaspayrollservicesandsoftware companies,whoserveasintermediarieswithuiagenciesonbehalfofmanyemployers; and3)stateuiagencies,whomustcollect,edit,analyze,anddistributetheinformation forittohavevalue.ifanyofthesethreeentitiesdoesnothavetheresourcesandsystems toperformtheirroles,enhancedwagerecordcollectionwillfail. Overthepastyear,tobegintoexaminethepotentialforwagerecordenhancement amongtheseimportantplayers,thestudygrouphassurveyedstateuiagencies,user organizationsandpayrollservices/softwarecompanies.threeinterimreportswere preparedbasedontheresults: 1. Current(Practices(of(Unemployment(Insurance(Wage(Record(Collection(and(Use(( 2. Current(Views(of(User(Organizations(Regarding(Enhanced(Wage(Record(Collection( and(use( 3. Potential(Barriers(and(Opportunities(Regarding(Enhanced(Wage(Record(Collection( and(use( Inthisreport,wewillsummarizeinformationfromthoseinterimreportstodescribethe environmentwithinwhichwagerecordenhancementisbeingconsidered,the opportunitiesthathavebeenfound currentconditionsthatmightcontributefavorably towardanimplementationofwagerecordenhancement,andpotentialbarriersthat remain currentconditionsthatreflectongoingchallengestoaddingvariablestothe wagerecords. WewillalsopresentnextstepstheStudyGroupanticipatesinthecontinuingexploration ofthisimportanttopic.finally,wewillintroducesuggestedstepsthatotherorganizations Page 5

12 mighttake,thatwouldhavevaluewithorwithoutwagerecordenhancement,butthat wouldboostthepotentialforwagerecordenhancement. Background. FollowingtheenactmentoftheSocialSecurityActin1935,statesestablished UnemploymentInsuranceprogramsforthepurposeofprovidingwagestabilization duringweakeconomicperiods.inallstates,paymentstounemployedindividualsare basedontheindividual spreviouswork.inordertoestablishthatworkhistory,allstates collectafewbasicdataelementsfromemployersabouteachemployee,includingtheir socialsecuritynumberandtheamountofwagespaidtothemduringthemostrecent quarter.overthedecades,thesewagedatarecordshavebecomeessentialnotonlyfor theadministrationoftheuiprogrambutalsoformanyotherpurposes,whichwillbe describedinthisreport. ThelastconcertedeffortbytheU.S.DepartmentofLabor(DOL)toexploretheuseof administrativewagedataforlabormarketinformation(includingevaluatingtheimpactof trainingservicesonemploymentandwages)waspresentedattheirnewtoolsforanew EraSymposium 1 in2003.theworkforceinformationcouncilandthebureauoflabor StatisticssponsoredthissymposiumaspartoftheirAdministrativeDataResearchand EvaluationProject,whichwasfollowedbyareportin Thereportconcludedthat linkedadministrativereportsofferstatesattractiveopportunitiesforestimatingthe impactoftheworkforceinvestmentact(wia)anditsrelatedservicesatarelativelylow cost.thereportalsonotedthatadministratorsshouldstrivetoimprovethequalityand accessibilityofthesedatawhileensuringtheappropriateprivacyandconfidentiality protections. InamorerecentpublicationbytheWorkforceInformationCouncil 3,itwasnotedthata widerangeofindividualsandorganizationsuselabormarketinformation(lmi)for personal,business,education,andgovernmentpolicydecisions.sounddecisions regardingcareers,jobs,education,businessexpansionandcontraction,andtaxesand revenuesallcanhingeonaccurate,validlmi.muchoftheavailableinformation supportingthesedecisionsisproducedbyfederalandstateagenciesbasedonsurveysof employersandhouseholds.asfederalandstatebudgetstighten,lmisurveysareoften amongthefirstactivitiescurtailed meaninglessreliableinformationproducedforfewer geographicalareas.whilethenationalstatisticsarebasedonsurveyswithlargesamples, muchlessreliableinformationisavailableforstateandlocalareas. 1 KevinHollenbeck,ChristopherT.King,andDanielSchroeder PreliminaryWIANetImpactEstimates: AdministrativeRecordsOpportunitiesandLimitations 2 KevinHollenbeck,ChristopherT.King,WeiDJangHuangandDanielSchroeder NetImpactEstimatesfor ServicesProvidedthroughtheWorkforceInvestmentAct 3 LaborMarketInformationCustomersandTheirNeedsDDCustomerDOrientedLMIProductInnovationDD Page 6

13 Tomitigatetheeffectsofshrinkingbudgets,statesandlocaljurisdictionsmustexplore alternativesourcesiftheyaretocontinuetoprovidehighqualityinformationtosupport criticalpersonal,business,andgovernmentpolicydecisions.oneimportantalternative sourceistheemploymentandwagerecorddatareportedbyemployersfor administrationoftheunemploymentinsurance(ui)programsinallstates.thesedata, andthesystemusedtocollectthem,offeranopportunitytoenhancelabormarket informationforstateandlocalareasatarelativelylowcost.manystateshavebegun usingtheuiwagerecordstoenhancelmiandtomeasureprogramperformance.some stateshavebeguntocollectadditionalitemswiththewagerecords,includingjobtitles, hoursworked,andlocationofwork.somestatesarelookingatacceleratingthe reportingtimeframesothatinformationcanbemadeavailablemoretimely. Toassiststateworkforceagencies,theUSDepartmentofLabor,andlabormarket informationproducersandusersbetterassessthepotentialofusingenhanced administrativedatatoimprovelabormarketinformation,theworkforceinformation Council(WIC)establishedanAdministrativeWageRecordEnhancementStudyGroup.The StudyGroupwascomprisedofLaborMarketInformationDirectorsandstafffromseveral statesandrepresentativesfromthedepartmentoflabor semploymentandtraining AdministrationandBureauofLaborStatistics,andtheNationalAssociationofState WorkforceAgencies.TheWICselectedRajJindal,DirectorofInformationTechnologyat thelouisianaworkforcecommission,aschairofthestudygroup.inadditionthewic hiredaprojectcoordinatortofacilitatetheworkofthecommittee. ThisStudyGroupwaschargedwithexploringthebenefitsandbarrierstoaddingdata elementstowagerecordscollectedintheadministrationoftheunemployment InsuranceProgram,asasourceforenhancedlabormarketinformation.TheStudyGroup willdocumentcurrentpracticesassociatedwithcollectingandusingvariouswagerecord dataelementstoproduceinformationthatbenefitsawidevarietyofusers,determineif enhancementstothosewagerecorddatamayprovideevengreatervalue,andidentify potentialbarriersandopportunitiesforcollectingsuchenhanceddata. Study.Plan. Thisfirstyearofthisstudyhasbeencomprisedofthefollowingfourcomponents: Phase(I(described(the(current(state(practices(for(collecting(and(using(UI(wage( records,(and(past(research(on(ui(wage(record(enhancement.(( Phase(II(documented(the(importance(of(workforce(information(goals(that(could(be( supported(with(enhanced(wage(records(and(the(potential(value(that(could(be( derived(from(enhancements(to(the(wage(record(reporting(system(from(the( perspective(of(potential(users.( Page 7

14 Phase(III(explored(potential(barriers(to(and(opportunities(for(enhancement(of(the( wage(record(reporting(system(from(the(perspective(of(state(workforce(agencies,( payroll(processing(firms,(and(payroll(software(providers.( Phase(IV(summarizes(the(firstTyear(results(in(this(final(report.( Page 8

15 Study.Methods. Chapter.Two:.. Current.State.Practices.for.Unemployment.Insurance. Wage.Record.Collection.and.Use. ThischaptersummarizestheinitialphaseofinvestigationbytheAdministrativeWage RecordEnhancementStudyGroup.Inthisinitialphase,theworkteam:.. Inventoried(states (UI(wage(record(employer(reporting(requirements((including( data(collected,(timing,(and(methods(used)( Identified(and(described(wage(record(enhancements((beyond(the(norm)(that(states( currently(have(in(place(and(described(the(process(by(which(those(enhancements( were(added(and(the(benefits/uses(those(states(derive(from(each(existing( enhancement( Solicited(from(states(a(list(of(current(uses(of(the(UI(wage(records(in(each(state( Conducted(research(on(past(and(current(work(done(by(ETA,(states,(and(research( institutes(on(the(laws(and(uses(of(administrative(wage(records(for(purposes(other( than(states (administration(of(the(ui(program( Developed(a(central(repository(of(all(past(and(current(research(on(wage(record( enhancement Tocollectthenecessaryinformationforthisstageoftheproject,theprojectcoordinator workedwiththestudygrouptodevelopaquestionnairethatwouldbesenttoall50 statesandthreeterritoriescomprisingtheunitedstates.thenationalassociationof StateWorkforceAgencies(NASWA)conveyedthequestionnairetoallstatesand territoriesusinganedmailandcoverlettersignedbythennaswapresidentmarkhenry andwicstatecodchairrebeccarustonjuly9,2013.thecoverletterwasdirectedto stateworkforceagencyadministratorsandrequestedaresponsefromeachstateby August5,2013.Thedirectorofeachstate sunemploymentinsuranceprogramandlabor MarketInformationProgramwerecopiedontherequest.Acopyofthecoverletterand questionnaireareincludedinthisreportasappendicesaandb. Followingth ing,membersoftheWorkforceInformationCouncilandtheStudy Groupwereaskedtofollowupwithstatesintheirrespectiveregionstoencouragestate responsetothesurvey.repeatedfollowupcontactsweremadewithstatesthathadnot respondedbytheoriginallyrequesteddate.naswasentafollowuprequesttoallnond respondingstatesonseptember14,2013.attheendofseptember2013,thestudyteam agreedtoproceedwiththefirstinterimreport.thefinalresponsewasreceived December4, Page 9

16 Results. FortyDtwoofthefiftystates(84percent)andtwoofthreeterritories(Guamandthe VirginIslands)respondedtothequestionnaire.Thesestates/territoriescomprise75 percentofthebusinessestablishments,73percentofemployment,and71percentofthe wagespaidintheu.s.amapoftherespondingstatesisshownbelow. Employer(Reporting(Methods( Statesandterritorieswereaskedthreequestionsaboutthemethodsemployersuseto reportthewagerecords.first,theywereaskedaboutanyexistingrequirementsfor employerstoreportwagerecordselectronically. Does(your(state(mandate(electronic(reporting(of(UI(wage(records(for(any(segment( of(employers?(if(so,(what(are(the(criteria((e.g.,(size(of(firm,(industry)?( Paperrecordsrequiregreaterlevelsofstaffinvolvementanderrorcheckingtoprocess data.electronicreportingofdataenablesmoreefficientprocessingofthewagerecords bystateauthoritiesand,potentially,wouldmakeiteasiertohandlecollectionof additionalvariableswiththewagerecorddata. Page 10

17 Ofthe44respondingstatesandterritories,28(64percent) 4 indicatedtheyrequire electronicreportingofwagerecorddatabysomeorallemployers,while16(36percent) didnot.thelegislatureinatleastoneofthestatesthatdoesnotrequireelectronic reportingwasatthetimeconsideringsuchamandate.therequirementtoreport electronicallyisgenerallybasedonthenumberofemployeesinthereportingfirmsbut, insomecases,isalsobasedontheamountofwagespaidor,forpayrollfirms,the numberofbusinessesforwhichtheyreport.forexample,onestatesetitsthresholdat 100employeesormore,butalsorequiredelectronicreportingiftheemployerhad $1,000,000ormoreinwagesduringthecurrentorpreviousquarter.Thetablebelow depictsthedistributionoftheemploymentthresholdrequirementsforelectronic reportingamongtherespondingstates. Table1 ElectronicReportingRequirements inrespondingstates/territories Threshold.#.of. Employees. Number.of. States.in Number.of. States.in NoRequirement Togiveasenseoftheshareofemployersinthesestatesthatmaybeaskedtoreport electronically,andtheamountofemploymentinformationthatiscapturedbythose electronicreports,table2belowdisplaystheshareofprivateu.s.firmsandemployment abovecertainemploymentthresholds.forexample,u.s.firmsthathave100ormore employeescomprisejust2percentofallprivatefirms,yettheyemploy63percentofall privatedsectoremployeesinthenation. 4 Sincethesurveyofstates,morecurrentinformationonelectronicreportingrequirementshasbeen compiled.thereviseddata,depictingallstatesasof2014,areshowninchapter5,onpage51. Page 11

18 Table2 CumulativeSharesofU.S.PrivateSectorFirms andemploymentbyfirmsize Number.of. Employees. Share.of.U.S.. Firms.. Share.of.Total.U.S.. Nonfarm.Employment % 100% 5+ 44% 95% % 89% % 82% 50+ 5% 71% % 63% % 53% Stateswerealsoaskedtoprovidepercentagedistributionsofemployersandwages reflectingthemethodsemployersusedtoreportthewagerecords. What(percentage(of(employers((or(their(agents)(in(your(state(report(wage(data( using(the(following(methods?( Internet:(( ( Magnetic(media((tape,(computer(disk,(etc.):(( ( Paper/fax:((( ( Other((specify):( ( ( What(percentage(of(total(wages(reported(in(your(state(do(the(following(reporting( methods(represent?( Internet:(( ( Magnetic(media((tape,(computer(disk,(etc.):(( Paper/fax:((( ( Other((specify): Statesandterritoriesthatrequiredelectronicreportingtendedtobelargerand comprisedahighershareoftheemployeesandwagespaid.the28respondentsthat requiredsomelevelofelectronicreporting(64percentoftheallrespondents)comprised over79percentofthe6.6mbusinessestablishmentsandover80percentofthe$3.7 trillioninwagespaidintherespondingstatesandterritories.notsurprisingly,asdepicted intable3,thesestates/territoriesexperiencedhigherratesofelectronicreporting,as well. Page 12

19 Reporting. Method. Table3 MethodsUsedbyEmployerstoReportQuarterlyWages States.with.Some.Required. Electronic.Reporting. Percent.of. Employers 5,.6. Percent.of. Wages 4. States.with.No.Required. Electronic.Reporting. Percent.of. Employers 4,.5. Percent.of. Wages 4. Internet 52% 61% 44% 42% MagneticMedia 9% 14% 10% 14% Paper 31% 10% 34% 18% Other 7 8% 15% 12% 26% Somestatesincludedelectronicformsofdatadeliveryinthe Other categoryand providedabreakoutofthe Other categorythatspecifiedthepercentagethatwasftp 6. Basedonthatinformation,wecangetagoodunderstandingoftheshareofallformsof electronicdatatransmissionversuspaperandstaffdentereddata.thefollowingtable depictsthisdistribution.theclosenessofthepercentagesbetweenstatesthatrequired electronicreportingandthosethatdidnotseemstoindicatethatmostemployersprefer electronicreportingregardlessofwhetheritisrequiredornot.however,thereisalsoa substantialminorityofemployersthatoptedforpaperreporting,instatesthatallowit. Table4 MethodsUsedbyEmployerstoReportQuarterlyWages Reporting. Method. States.with.Required. Electronic.Reporting. Percent.of. Employers 4. Percent.of. Wages 4. States.without.Required. Electronic.Reporting. Percent.of. Employers 4. Percent.of. Wages 4. ElectronicFiles 69% 90% 65% 82% Paper/StaffEntry 31% 10% 35% 18% ( 5 Twostateswerenotabletoprovidethepercentagedistributionbasedonemployers.Theyrepresented threepercentofallemployersintherespondingstates.sixstateswerenotabletoprovidethe percentagedistributionbasedonwages.theyrepresentedfivepercentofthetotalwagesinthe respondingstates. 6 TheBureauofLaborStatisticsdoesnotproduceacountoffirmsbystate;therefore,thenumberof establishmentsineachstatewasusedasaproxyforthenumberofemployerstocalculatetheseshares. 7 SomestatesincludedaformofInternetreportingcalledFileTransferProtocolor FTP inthe Other or MagneticMedia categories. Page 13

20 Frequency(of(Employer(Reports( Thestateswerenextasked: Does(your(state(require(any(employers(to(report(wage(records(more(frequently( than(quarterly?(if(yes,(what(criteria(are(used(to(select(those(employers?( QuarterlyreportinghasbeenthenormforUIwagerecordreportingfordecades.Asnew informationtechnologyhasbeenadopted,realdtimesharingoflargedatafileshas becomecommonplaceinthebusinessworld,andthepotentialformoretimelycollection ofwagerecordsisbecomingmoreofareality. Virtuallyallstatesthatrespondedcontinuetorequirequarterlywagefilereporting,with Illinoisbeingtheoneexception.Atthetimeofthesurvey,Illinoisemployerswithatleast 100employeeswererequiredtosubmitmonthlyreports.AsofJuly2014,Illinois employerswithatleast25employeesarerequiredtosubmitmonthlyreports.illinoishas madethesechangestohelpenhancetheintegrityofthestate smedicaidprogramby improvinginformationfortimelyverificationofclienteligibility. Uses(of(the(Wage(Records( Does(your(agency(match(the(wage(records(with(other(administrative(data((e.g.,( DMV,(TANF)(to(add(demographic(characteristics((age,(gender,(income,(residence( address,(etc.)?( Anypotentialenhancementofthewagerecordsshouldnotduplicateexisting administrativesystemsand,potentially,shouldeliminateredundantreporting.by coordinatingadministrativedatacollection,employerreportingburdenandthe processingcosttogovernmentmightbereduced. FederalandstateUIlaws,aswellasotherstatelaws,tightlyrestrictsuchmatchingto otherdatabases.onlyahandfuloftherespondingstatesreportedmatchingthewage recordswithotherstateadministrativefilestoadddemographiccharacteristicstothe employeedata.mostofthosethatdidwererelyingonfilesfromtheirdepartmentsof MotorVehiclestobringinvariablessuchasage,gender,andresidenceaddress,although filesfromworkforceprogramsandauniquestatedspecificprogramwerealsomentioned. Who(uses(the(wage(data(your(agency(collects(for(purposes(other(than(direct(UI( administration?(what(are(those(purposes?( Accesstothewagerecordsisgenerallylimitedtostateandlocalpersonnelwithaneedto usethedataforpurposesoutsideoftheuiprogramasdefinedinstatelaw.evenwhen statelawprescribesanallowableuse,specificuseagreementsaredevelopedandsigned toensureproperprotectionsfortheconfidentialityofthedata. Page 14

21 Thebreadthofthetypesofusedescribedmakeitclearthatthewagerecordscollected undertheunemploymentinsuranceprogramhavevaluetoafarwideraudiencethan originallyenvisioned.thewagerecordsprovideatimelyandcomprehensivetoolfor userstoconductthepublic sbusiness,atfarlesscostthanifeachentityweretoattempt tocollectthedataseparately. Thefollowingchartprovidesexamplesofthewiderangeofuserorganizationsandtheir commonapplicationsofthewagerecorddata.therespondingstatesprovidedmorethan threehundredexamplesofuse.thesehavebeengroupedbyprogramtypeanduse.the shadingonthechartindicatestheshareofeachusergroupforwhichthestateslistedthe typeofuse:most=50+percent;some=25to49percent;few=1to24percent. Page 15

22 & & Table&5& Examples&of&UI&Wage&Record&Uses&and&User&Programs&Identified&by&States/Territories&& & Programs(Identified(as(( Using(the(UI(Wage(Records( Employment&Verification& Income&Verification& Fiscal&Management& Primary(Uses(of(Wage(Record(Information( Child&Support& & & & & & & & & & & & & & Corrections& & & & & & & & & & & & & & Consumer&Affairs& & & & & & & & & & & & & & Civil&Rights&Commission& & & & & & & & & & & & & & State&&&Local&Government&Administration& & & & & & & & & & & & & & Fish,&Wildlife,&and&Parks& & & & & & & & & & & & & & Law&Enforcement/Public&Safety& & & & & & & & & & & & & & Crime&Victims&Restitution& & & & & & & & & & & & & & Emergency&Management& & & & & & & & & & & & & & BLS/Census/State&Labor&Market&Information& & & & & & & & & & & & & & Private&and&Public&Research&Organizations& & & & & & & & & & & & & & Federal&Reserve&Bank& & & & & & & & & & & & & & Workforce&Preparation& & & & & & & & & & & & & & Vocational&Rehabilitation& & & & & & & & & & & & & & Employment&Services& & & & & & & & & & & & & & Adult&Basic,&Career,&and&Higher&Education& & & & & & & & & & & & & & Department&of&Commerce& & & & & & & & & & & & & & Economic&Development& & & & & & & & & & & & & & National&Farmworkers&Jobs&and&Education&Program& & & & & & & & & & & & & & Labor&Standards,&Worker&Safety,&Wage/Hour&Agencies& & & & & & & & & & & & & & Investigations& Locating&Individuals& Law&Enforcement& Data&Generation,&& Market&and&Policy&Analysis& Program&Administration& Eligibility&Determination& Program&Performance& Assessment& Credit/Grant/Loan&Making& Collection&of&Fines,&Restitution,& Penalties,&Debts,&Overpayments& Tax&Collection& & Most&use:& 25& Some&use:& & Page&16& Few&use:& 6& No&use&mentioned:& &&

23 Programs(and(Agencies(Identified(as(( Using(the(UI(Wage(Records( Table&5& Examples&of&UI&Wage&Record&Uses&and&User&Programs&Identified&by&States/Territories&& Employment&Verification& Income&Verification& Fiscal&Management& Primary(Uses(of(Wage(Record(Information( Workers &Compensation& & & & & & & & & & & & & & Financial&Institutions& & & & & & & & & & & & & & FMHA&Loan&Program& & & & & & & & & & & & & & HUD&Assisted&Housing&Program& & & & & & & & & & & & & & State&and&Local&Housing&Programs& & & & & & & & & & & & & & Human&Services&Agencies& & & & & & & & & & & & & & Temporary&Assistance&for&Needy&Families&(TANF)& & & & & & & & & & & & & & Supplemental&Nutrition&Assistance&(Food&Stamps)& & & & & & & & & & & & & & Public&Assistance& & & & & & & & & & & & & & Utility&Assistance& & & & & & & & & & & & & & USDA&Rural&Assistance& & & & & & & & & & & & & & Social&Security& & & & & & & & & & & & & & Retirement&Programs& & & & & & & & & & & & & & Health&Care& & & & & & & & & & & & & & Health&Insurance& & & & & & & & & & & & & & Mental&Health& & & & & & & & & & & & & & Medicaid&Assistance& & & & & & & & & & & & & & Disability&Assistance& & & & & & & & & & & & & & Debt&Collection&Agencies& & & & & & & & & & & & & & IRS&and&State&Revenue&Agencies& & & & & & & & & & & & & & Investigations& Locating&Individuals& Law&Enforcement& Data&Generation,&& Market&and&Policy&Analysis& Program&Administration& Eligibility&Determination& Program&Performance& Assessment& Credit/Grant/Loan&Making& Collection&of&Fines,&Restitution,& Penalties,&Debts,&Overpayments& Tax&Collection& & Most&use:& 25& Some&use:& & Page&17& Few&use:& 6& No&use&mentioned:& &&

24 Current'Enhancements'to'the'Wage'Records' Twelveoftherespondingstatesandterritoriesenhancedthebasicwagerecord,adding dataelementstotheinformationcollectedfromemployersabouteachindividual employee.slightlymorethanhalfofthesestatesandterritoriesrelieduponstatelawto directtheenhancementsandmosthavebeencollectingtheenhanceddataformany years. State/& Territory Alaska Iowa When& Started& Late 1980s Table6 CurrentStateWageRecordEnhancements Initiated&by& Statute&or&Rule& Rule Rule Minnesota 1995 Statute NewJersey 1984 Statute Enhanced&Data&Elements&Collected&& About&Each&Employee StandardOccupationalClassificationCode; geographiccode(countyequivalent)ofprincipal worksite Bonuses Reportingunit(employee sprincipalworksite) Totalhoursworkedinquarterandprincipal worksitenumber Baseweeks(numberofweeksinquarterthe individualearnedover$140) Ohio 1987 Statute Totalnumberofweeksworkedinquarter Oregon 1995 Statute Totalhoursworkedinquarter Pennsylvania 1983 Statute Totalnumberofweeksworkedinquarter RhodeIsland 2008 Rule Totalhoursworkedandnumberofweeksworked inquarter Vermont 2001 Statute Paytype:salaryorhourly;hourlypayrate;gender VirginIslands 2005 Rule Totalhoursworkedinquarter;salary;jobtitle; worksitestreetaddress,zip,andcounty;gender Washington 1977 Statute Totalhoursworkedinquarter Wyoming Totalhoursworkedinquarter,tips,anddateof hire(collectedaspartofjointeffortswiththe Workers CompensationProgram) Page18

25 Table7 CurrentEnhancementsbyType Enhanced&information&type& collected&about&each&employee:& Number&of& states/territories& Hoursworked 6 Primaryworksitelocation 5 Weeksworked 4 Payrate 2 Gender 2 Paytype 1 Occupation 1 Dateofhire 1 Bonuses 1 Tips 1 Ofthetwelverespondingstatesthatenhancedthewagerecord,sevenhadsomedegree ofelectronicreportingrequired,includingthreestatesthatrequiredelectronicreporting fromallemployers.thisgivestheimpressionthatatleastsomeemployersandpayroll servicecompaniesandsoftwareprovidersarecapableofstoringtheenhanceddata elementsanddeliveringthemelectronicallytothestates.thisquestionisexplored furtherinchapter4. Moststatescollectingenhanceddatanotedthatissuesofincompletenessorinaccuracy intheemployerareportedenhanceddatareducedthereliabilityofestimatesderivedfrom theirapplication.somestatesusedhoursorweeksworkedinuideterminationsandhad foundthosedataweremorecloselyeditedandreliable.incaseswheretheenhanced datawerenotuseddirectlyintheuiprogram,moredatagapsandinaccuracieswere noted.thosecollectinghourswereableonlytoestimategrosshourlyearningswithout accountingforovertimepay. Despitethesechallengessomestatesreportedthatthedatawereextremelyhelpfulin estimatinghourlyearnings,understandingcareerprogressionfromoccupationto occupation,assessingtheeffectivenessofworkforcetraining,andmakingoccupational projections.onestatepointedoutthattheemployeeworksiteinformationeasedother employerreportingburdensandhelpedwithuiclaimfiling. ' Page19

26 Consideration'of'Additional'Enhancements' Has'your'state'considered'adding'other'data'elements'to'the'wage'record' requirements?'if'so,'what'and'when?'what'was'the'intended'purpose?'what'was' the'result?' Do'you'know'of'organizations'calling'for'your'state'to'collect'additional'elements' with'the'wage'records?'if'so,'which'organizations'and'what' enhancements/purposes?' Fourteenstatesindicatedthattheyhaveconsideredenhancementstotheirwage records,includingfourstateswithenhancedwagerecordslookingatfurther enhancements.theseconsiderationsrangedfrominformaldiscussionsamongstaffersin stateagenciesandlegislatures,totaskforcesbeingestablished,toproposedlegislation aimedatexploringpossibleenhancements.somestateswereexploringenhancementsto coincidewithupcominguicomputersystemredesigns. Sevenstatesreportedthatexternalorganizationswerecallingforwagerecord enhancements,includingbusinessassociations;economicdevelopment,education,and workforceagencies;andthesocietyofprofessionalengineeringemployeesinaerospace. Mostwereseekingenhancedcollectionofthenumberofhoursworked,hourlywages, andoccupationtoevaluatestateinvestmentineducationandtrainingandaideconomic developmentefforts.thefairlaborstandardsactrequiresthatemployersmaintaindata onallofthesevariables. Manystateswereworkingtodeveloplongitudinaldatasystemsthatwillfacilitatethe matchingofstudentrecordstolabormarketoutcomes.partnerorganizationsinthose effortswereincreasinglydiscussingthepotentialvalueofenhancedwagerecords.these desiresarereflectedinanumberofpublicationsbyorganizationsinterestedintheuseof wagerecordsforeducationandtrainingprogramevaluation,indicatingthelimitations imposedbytheabsenceoftheadditionalvariables.' State'UI'Systems 'Capabilities' Asindicatedintheintroductiontothisreport,inordertoassessthepotentialforwage recordenhancement,itisfundamentallyimportanttounderstandtheabilityofstate UnemploymentInsurancesystemstoreceive,store,edit,andanalyzethedata. Is'your'state's'UI'wage'collection'system'flexible'enough'to'collect'additional'data' elements'on'the'wage'reports?'please'describe'any'technical/fiscal/staffing' constraints'to'adding'elements.' Ofthe42statesand2territoriesthatrespondedtothesurvey,thirteen(30percent) indicatedthattheiruisystemswereatthattimeflexibleenoughtohandleadditional wagedataelements,while20(45percent)respondedthattheirsystemswerenot.of Page20

27 these20,fivestatedthattheyexpectedtocompletenearaterminstallationofnew systemsthatwouldprovidetheflexibilityneededforwagerecordenhancementandtwo indicatednewsystemswerebeingbuiltbutdidnotclearlystatewhetherthesewould enablewagerecordenhancement. Ninestates(20percent)didnotstate yes or no inresponsetothequestionbut providedcommentsthatindicateditwaspossiblethattheirsystemscouldhandlethe enhancements.tworespondents(5percent)didnotanswerthequestionorprovide comments. Thestatesprovidedavarietyofcommentsonthetechnical/fiscal/staffingconstraintsto enhancingwagerecordcollection.evenstatesthatindicatedthattheirsystemscould accommodateadditionalwagevariablesmadeitclearthatmanyfactorswouldhavetobe addressedbeforeconsideringwagerecordenhancement.table8summarizesthe constraintsmentionedbytherespondingstates.acompletelistingofthestates commentsisincludedasappendixc. Table8 SummaryofStateCommentsReceivedRegarding ConstraintstoEnhancedWageRecordReporting Constraint&Mentioned& #&of&states& Mentioning& Extensivereaprogrammingrequired 20 Inadequatefunding 13 Currentsystemrigidity 11 Potentialemployerburden 7 Changesrequiredinformsused 6 Conflictingstaffingpriorities 5 Addedprocessingcosts 4 Sizelimitsonformsused 2 Addedeffort 2 Law/rulechangesrequired 2 Employercommunications/educationneeded 2 Possibleincreaseinincomplete,untimelyreporting 2 Noconstraintsmentioned 5 Page21

28 Nodirectinformationwasgatheredonthecostsassociatedwithadaptingsystemsto collectenhancedwagerecords.clearly,itemssuchastheextensivereaprogramming mentionedby20stateswouldcarryasubstantialcostwhich,whentakeninthecontext oftheirothercommentsaboutinadequateavailablefunding,begsthequestionasto wherefundingtosupportsuchaneffortmightbefound.thistopicwillbetouchedupon inchapter6. Previous'Research'into'Enhancements'to'the'Wage'Records' Thestateswerealsoasked: Has'anyone'in'your'state'prepared'any'reports'on'the'benefits'or'monetary'value' of'using'wage'records'for'purposes'other'than'direct'ui'administration?'if'so,'who' can'we'contact'to'obtain'a'copy?' Onlyonestatereportedhavingsuchastudy,anditwasnearlytwentyyearsold. However,anumberofreportsthatdiscussthevalueofbasicwagerecordsandpossible enhancementshavebeenidentified.thesedocuments,identifiedtodate,arelistedin AppendixD.Workwillcontinuetoidentifyadditionalresearch. Page22

29 Chapter&Three:& User&Organizations'&Views&Regarding& Enhanced&Wage&Record&Collection&and&Use& & Study&Methods& ThegoalofPhaseIIofthestudywastobetterunderstandhowusersmightvaluethe availabilityofadditionalvariablesthatcharacterizethenatureofworkandcompensation inlocallabormarkets.thisphasebeganwiththedevelopmentofalistofnationaland regionalorganizationsthatrepresentbusiness,education,labormarketresearch,and workforcepreparation.theprojectcoordinatorcompiledthisinitiallistandsubmittedit tothestudygroupforcommentandaugmentation.thelistwasthensharedwiththe labormarketinformationdirectorsinall53statesandterritoriesfortheirreview, comment,andaugmentation.attheendofthisprocess,113organizationswereselected toincludeinasurvey.alistoftheseorganizationsisincludedinappendixe. Next,theprojectcoordinatorworkedwiththeStudyGrouptodevelopanonline,weba basedquestionnairetocollectinformationabouttheuserorganizations purposeand scope,andtheirviewsontheimportanceoflmigoalsassociatedwithwagerecord enhancementandonthevalueofaddingvariablestotheuiwagerecords.thegroupalso developedacovereamailtoconveytherequestforparticipationinthesurvey.acopyof thecovereamailandquestionnaireareincludedinthisreportasappendicesfandg. Therequesttocompletethequestionnairewasinitiallyconveyedtotheselecteduser organizationsbyeamailfromthewic sexecutivedirectoronapril16,2014.theeamail requestedresponsesbymay2.inanattempttomaximizeearlyresponse,followaupea mailsweresentonapril25andmay7. Asresponsesslowedafteraninitialburst,membersofthestudyteamsoughtthesupport ofselectedintermediarypartnerorganizationsbyaskingthemtomakepersonalcontacts withnonarespondingorganizationstoencouragetheirparticipation.inaddition,members oftheworkforceinformationcouncil,itswagestudyadvisorycommittee,andthelabor marketinformationdirectorsinall53statesandterritorieswereaskedtofollowupwith nonarespondingorganizationsintheirrespectiveregionstoencourageresponsestothe survey.inconcertwiththesecontacts,additionalfollowaupeamailsweresenttonona respondingorganizationsbetweenjuly1andaugust7,2014.inearlyaugust2014,the studyteamagreedtoproceedwiththephaseiisummaryreport.thefinalresponsewas receivedaugust27,2014. & Page23

30 Results& Fortyaseven(42percent)oftheonehundredthirteenuserorganizationscontacted respondedtothequestionnaire. Participant'Characteristics' Userorganizationswereaskedthreequestionsaboutthenatureandscopeoftheir organization.first,theywereaskedtoassignacategorydesignationtotheirorganization. Please'select'the'description'that'best'fits'your'organization.' o Schools,'Colleges,'and'Related' o Employment'&'Training' o Health'Services' o Business'Association' o Trade'Association' o Professional'Association' o Legislative' o Human'Services' o Government' o Research' o Labor'Association' ' o Other'(please'specify)' ' ' Nearlyaquarterofthe47respondentsusedthe Other categorytodescribetheir organization.usingtheinformationprovided,combinedwithacarefulreviewofthe respondingorganizations websites,therespondentsweregroupedasfollows. BusinessandTradeAssociations 8 Education,Workforce,andRelatedSupportOrganizations 6 GovernmentResearchandStatisticalOrganizations 3 LaborAssociations 3 PolicyDevelopmentandAdvocacyOrganizations 5 PrivateConsultingResearchOrganizations 8 ProfessionalAssociations 8 UniversityabasedResearchCenters 6 Next,participantswereaskedtodescribethesizeandscopeoftheirorganization. Please'describe'the'scope'of'your'organization'and'its'members,'if'any.' Geography& Number&of&Members& Number&of&Individuals&Served& o 'Local' o ''0' o ''<'1,000' o 'Regional' o ''1'W'4' o ''1,000'to'9,999' o 'Statewide' o ''5'W'24' o ''10,000'to'99,999' o 'MultiWstate' o ''25' '99' o ''100,000'to'499,999' o National' o ''100' '499' o ''500,000'to'999,999' ' o ''500+' o ''1,000,000+' Ofthe47respondinguserorganizations,28(62percent)indicatedtheyhaveanational scope,while13(28percent)representstatewideormultiastateconstituencies.five respondents(10percent)representedlocalorregionalinterests. Page24

31 Table9 GeographicalRepresentation ofrespondinguserorganizations Geography& Number&& Percentage& Local 3 6% Regional 2 4% Statewide 8 17% MultiaState 5 11% National 29 62% Themajorityofrespondentsrepresentedmorethan100individualororganizational members,withfortypercenthavingmorethan500members. Table10 NumberofMembersRepresented byrespondinguserorganizations Number&of&& Members& Number&of& Respondents&& Percentage&of& Respondents& % 1a4 3 6% 5a % 25a % 100a % % Intotal,therespondinguserorganizationsindicatedtheyservedmorethan20million individuals.overhalfoftherespondentsservedmorethan100,000individuals. Table11 NumberofIndividualsServedbythe RespondingUserOrganizations Number&of& Number&of& Percentage&of& Individuals&Served& Respondents&& Respondents& <1, % 1,000to9, % 10,000to99, % 100,000to499, % 500,000to999, % 1,000, % Page25

32 AscanbeenseeninTable12below,nodirectcorrelationcanbeinferredfromthe membershipsizeandthenumberofindividualsservedbytherespondingorganizations. Someorganizationswithnomembersservedlargepopulationswhilesomewithlarge membershipservedrelativelyfewindividuals. Table12 NumberofIndividualsServedbythe RespondingUserOrganizations Number&of& Individuals&Served& Number&of&Members& 0& 1N4& 5N24& 25N99& 100N499& 500+& <1, ,000to9, ,000to99, ,000to499, ,000to999, ,000, Thenumberofindividualstheuserorganizationsreportedservingwasdistributed relativelyevenlyacrossorganizationaltypes. Type&of&Organization& BusinessandTrade Associations Table13 NumberofIndividualsServedbyTypeof RespondingUserOrganization <1,000 1,000to 9,999 Number&of&Individuals&Served& 10,000to 99, ,000to 499, ,000to 999,999 1,000, Government 3 LaborAssociations 2 1 PolicyDevelopmentand AdvocacyOrganizations PrivateConsultingResearch Organizations ProfessionalAssociations Education,Workforce,and RelatedSupportOrganizations UniversityabasedResearch Centers Page26

33 Importance'of'Related'Workforce'Information'Goals' TheStudyGroupwishedtoassessthelevelofuserorganizations supportforworkforce informationgoalsthatenhancedwagerecordswouldsupport. Please'rate'the'importance'of'the'following'workforce'information'goals'to'your' organization'and'those'it'serves.' o Helping'to'align'education'programs'with'employer'needs' o Enhancing'information'to'support'economic'development'efforts' o Delivering'accessible'information'on'education'and'training'program' outcomes' o Monitoring'local,'regional,'and'statewide'economic'trends' o Assessing'the'effects'from'economic'disruptions'(recession,'natural'disaster,' etc.)' o Informing'the'community'of'economic'and'social'needs' o Reducing'employer'survey'burden'through'better'use'of'administrative'data' o Providing'accurate'information'on'employment'opportunities'available'to'job' seekers' Respondentswereprovidedafourapointscaleonwhichtoratetheimportanceofeach goal:1=notimportant,2=littleimportance,3=important,or4=veryimportant. Overall,therespondentsindicatedthatallofthelistedworkforceinformationgoalswere importanttoveryimportanttotheirorganizations.table14,onthenextpage,displays themean,median, andstandarddeviationoftheimportancescoresassignedtothese goals.thestrongest supportwasexpressedfor helpingtoaligneducationprogramswith employerneeds and deliveringaccessibleinformationoneducationandtraining programoutcomes, withmeanscoresof3.53and3.43,respectively.asindicatedbythe medianscores,atleasthalfoftherespondentsratedsixoftheeightgoalsasvery importanttotheirorganizationsandtheothertwoasimportant. Page27

34 Table14 OverallRespondents RatingofWorkforceInformationGoals Workforce&Information&Goal& Mean& Score& Median& Score& Std.& Dev.& Helpingtoaligneducationprogramswithemployerneeds Enhancinginformationtosupporteconomicdevelopment efforts Deliveringaccessibleinformationoneducationandtraining programoutcomes Monitoringlocal,regional,andstatewideeconomictrends Assessingtheeffectsfromeconomicdisruptions(recession, naturaldisaster,etc.) Informingthecommunityofeconomicandsocialneeds ' Reducingemployersurveyburdenthroughbetteruseof administrativedata Providingaccurateinformationonemployment opportunitiesavailabletojobseekers InTable15,onthefollowingpage,webreakdowntheseresultstolookatthemeanand medianratingsbytypeofuserorganization.nearlyallofthegoalswereratedas importantorveryimportanttotherespondingorganizationaltypes. Page28