Philadelphia Works Comments to Workforce Innovation and Opportunity Act Notices of Proposed Rulemaking

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1 Philadelphia Works Comments to Workforce Innovation and Opportunity Act Notices of Proposed Rulemaking Background Philadelphia Works, the workforce board for Philadelphia, offers the following recommendations for consideration as the Department of Labor (DOL) and the Department of Education (ED) draft their final rules to the Workforce Innovation and Opportunity Act (WIOA). We appreciate the openness by which this consultation and proposed rulemaking process took place and sought to emulate the same as we began to draft our recommendations. 1 Overall, we ask that the proposed rules be centered on some larger overarching themes that are critical to the work that takes place in Philadelphia: 1) Philadelphia Works Strategic Priorities: These priorities have guided our work since we developed them in 2013 and continue to lead our work for the remaining 3 years of the plan. They are the driving agenda and perspective on how WIOA could work best for us. As we engaged in our strategic planning process, we were mindful of what was to come and as a result, many of our five strategic priorities are encompassed in the legislation: a. Better coordinating Philadelphia s workforce and economic development systems b. Serving smaller employers c. Implementing a no wrong door or integrated service delivery approach d. Adopting common employer-driven standards for education and training e. Targeting hardest to serve populations those with barriers to employment We ask that regulation writers be aware of the priorities that drive our work and the barriers that could exist in implementation to achieving these priorities. Additionally, it is important that these comments are read with this framework in mind. 2) Local Flexibility: It is at the local level that we have the firsthand ability to best understand the changes, challenges and opportunities of our local populations, employers in need of workforce services and the resources available to meet these needs. In order to create a system that is responsive to changing realities, local areas need the flexibility to meet these needs. 1 In order to develop these recommendations, Philadelphia Works engaged our board and youth council, staff leadership team, the entire Philadelphia Works staff, one-stop partners, providers and other partners at a WIOA proposed rules-oriented forum on May 26, We convened over 80 stakeholders from almost 50 different organizations, businesses and agencies to hear from workforce development expert Rochelle Daniels on the changes in the proposed rules. Participants also discussed their thoughts and recommendations on the proposed rules in smaller group discussions centered on work-based training, the one-stop center, youth programs, governance and performance measures Philadelphia Works All rights reserved. 1

2 Comments to Joint Rule for Unified and Combined State Plans, Performance Accountability and the One-Stop System Joint Provisions Notice of Proposed Rulemaking (Regulatory Identification Number 1205-AB73 / Docket Number ETA ) Proposed Rule What definitions apply to these regulations? 1. NPRM: Consultation means an interactive discussion between two or more parties for the purpose of exchanging viewpoints and ideas Recommendation(s): Consultation should be defined as strongly as possible to stress advanced notice, robust conversation and collaborative efforts with local areas prior to the state s decision making process. At a minimum, the largest and smallest local areas in the state should be consulted or consultation criteria should be considered that captures the diversity within a state. However, more commonly, state board members should be encouraged to visit and engage local areas to understand how each local system is unique in its functionality, service population and labor market. The regulations must offer local areas, and a diversity of local areas, within a state with the opportunity to provide input with sufficient advanced notice for effective consultation. Proposed Rule What is meant by the terms optimum-policy-making authority and demonstrated experience and expertise? 1. NPRM: The Department seeks public comment on how to further define demonstrated experience and expertise and examples of the types of qualifications that would meet such a definition. Recommendation(s): Substantively, we agree with the proposed definition of demonstrated experience and expertise except we recommend the removal of the word documented. - There are ample opportunities in which individuals have leadership experience in workforce development, human resources, training and development or a core program function without necessarily having documentation to support that work. Maintaining the requirement would mean additional guidance on the term documented to understand what is sufficient. - The determination of an individual s demonstrated experience and expertise should be in the discretion of the local elected official based on the fair presumption that anyone appointed to a local workforce development board is qualified to lead this work in that local area. - By including the word documented, we will be required to maintain additional documentation, which adds another layer of administrative work to the process of appointing board members to boards resulting in delays. Proposed Rule What priority must be given to low-income adults and public assistance recipients and individuals who are basic skills deficient served with adult funds under title I? 1. Recommendation(s): - We agree with and wish to echo DOL s proposed factor of availability of other funds for providing employment and training-related services in the local area - We also propose some additional factors for DOL to consider including: 2015 Philadelphia Works All rights reserved. 2

3 o o o Employment status of the participant: accounting for those who are employed part-time, or those with low basic skills, without a high school diploma who are currently employed but at low wages. Criteria that allows us to prioritize former Temporary Assistance for Needy Families (TANF) clients who come to the one-stop after losing a job or need a better job in order to divert them from re-enrolling in TANF - for example, the extent to which a job seeker had previously participated in other workforce development or one-stop programs, or the extent to which enrollment would divert a job seeker from public assistance. Employer demand: while we recognize the importance of prioritizing services to certain populations, our system is one that must be responsive to a dual customer approach. In larger cities such as Philadelphia where many of our population may qualify for priority of service, we anticipate a challenge in our ability to meet employer needs with only lowerskilled workers. While priority of services does not apply to dislocated workers, there may be a limited population of dislocated workers with higher skills to meet employer needs. - While the law says basic skill deficiency is an adult who is unable to compute or solve problems, read, write or speak English at a level necessary to function on the job, in the individuals family, or in society, there is also a floor below which the individual may not be able to benefit from WIOA Title I adult individualized career or training services. Some job seekers need additional supports (such as literacy) and more time to reach a basic skill level that allows them to fully benefit from services and training that lead to career pathway positions above entry-level wages and at post-secondary training levels. - Prioritizing those with low basic skills and without a high school diploma who are currently employed (but at low wages): this group makes up about 30% of those who enroll in one of our Title II programs and they have been determined to make the greatest skill gains Proposed Rule How does the Temporary Assistance for Needy Families program relate to the one-stop delivery system? 1. Recommendation(s): Seek out opportunities for increased alignment between WIOA common measures and TANF. While TANF is a mandatory partner in the one-stop delivery system, one of our challenges is that TANF programs are not measured by the same accountability measures as the other core programs. While we understand that significant changes such as this recommendation require new TANF legislation, we ask that conversations begin to take place on how these measures can, at a minimum, begin to improve alignment. Proposed Rule Under what conditions may a Governor or Local Board raise the onthe-job training (OJT) reimbursement rate up to 75 percent of the wage rate? 1. Recommendation(s): We agree with the proposed factors related to increasing an OJT reimbursement rate, especially as it pertains to employer size. Smaller employers often need additional support and the workforce development system in Philadelphia recognizes this. Proposed Rule What are the requirements for customized training for employed workers? 1. NPRM: The Department is interested in comments that discuss how to distinguish customized training from OJT. Should they focus on different service populations, different training strategies, or different types of jobs? 2015 Philadelphia Works All rights reserved. 3

4 Recommendation(s): Some of the distinguishing factors between customized job training (CJT) and OJTs are already outlined in the law. In addition to distinguishing them, however, it is imperative that the systems that are created to achieve the stated legislative intent: - Customized training is developed with the needs of an employer or group of employers in mind. Systems should be created to allow for ease in supporting employers, the intended beneficiary, as they seek out CJTs. - Within the current structure, we have struggled with the delay of procuring a training provider. For CJTs that involve multiple employers, opportunities must be offered to contract directly with a training provider (as opposed to contracting with multiple employers or requiring a single employer to be accountable for the hiring patterns of other employers) without triggering procurement requirements when employers have a timeline and/or a training provider in mind. - Creating an employer-based training system for which an employer commits to employ an individual upon successful completion of the training is challenging. Regulations should address an employer s expectation to commit to hire. Employers are understandably hesitant to pre-hire someone without pre-screening or when they pre-screen, unwilling to commit to hire someone who will develop the skills but does not immediately possess the requisite skills. Proposed Rule Who is an incumbent worker for purposes of statewide and local employment and training activities? 1. NPRM: The Department is seeking comment on the appropriate amount of time an employee must have worked for the employer before being eligible for incumbent worker training. The Department is proposing a minimum of 6 months, but is seeking substantive comments on this proposal. Recommendation(s): We accept the Department s proposal of 6 months, but based on the best use/purpose of incumbent worker training we would even propose a one year term of employment. Incumbent worker training is often short-term training that is targeted on a very specific skill gain. People need to grow in their jobs and establish themselves more permanently with an employer before we fund incumbent worker training. The requisite period of time should represent the need to achieve these goals as opposed to subsidizing the employer s onboarding process. 2. NPRM: The Department is also seeking comments on how incumbent worker training should increase the competitiveness of the employee or employer for the purposes of identifying highquality incumbent worker opportunities. Recommendation(s): Incumbent worker training is unique from other employer trainings in that it offers an opportunity for employers to upskill workers with whom they have already worked on a specific skill gain they have had an opportunity to vet this candidate and are willing to train them based on a desire to keep them. Therefore, it must meet the needs of both participants. The structure that is developed should accommodate and address these principles: - Incumbent worker training must allow incumbent workers to move up to the next program/position, increase in a wage (as a result of a skill gain), or other measurable advancement for the job seeker. For the benefit of the worker, it allows them to gain additional skills that may be transferable to other positions or allow for them to advance within that employer s pool. In short, the training should relate to the customer s career path and result in career advancement in some capacity. - From an employer s perspective, it offers an opportunity for upskilling a workforce with whom the employer has experience. Offering training to an incumbent worker can be more fiscally 2015 Philadelphia Works All rights reserved. 4

5 sound than hiring a new candidate. It creates an opportunity for that individual s advancement and it may also allow for the employer to backfill a position or improve their operations as a result of a skill gain. Proposed Rule Who is an out-of-school youth? 1. Recommendation(s): - Define youth in dropout prevention programs and similarly titled programs as out-of-school. - Define a school dropout under (c)(2) and elsewhere throughout the regulations to include youth in a General Educational Development (GED) program. - Youth in dropout prevention programs are no longer attending traditional high school but with intervention may still be able to receive a high school diploma. - When a child is in a GED program, it is most likely because he/she dropped out of school. Proposed Rule How does the Department define high poverty area for the purposes of the special rule for low-income youth in Workforce Innovation and Opportunity Act? 1. NPRM: The Department is seeking comments on whether the poverty thresholds the Department is proposing are the most appropriate levels for youth living in a high poverty area. Recommendation(s): Offer additional low-income proxies to capture low-income youth or include boundaries that border those areas that meet the poverty threshold. Philadelphia has determined that while the poverty thresholds proposed by DOL will address some of our areas, they are not sufficient for the additional areas in which a large number of our youth are increasingly accessing our youth programs. As a perfect example of policy versus implementation, we believe that excluding these areas based on an individual s zip code was not the intended consequence of the threshold developed. Proposed Rule May a local program use eligibility for free or reduced price lunches under the National School Lunch Program as a substitute for the income eligibility criteria under title I of the Workforce Innovation and Opportunity Act? 1. Recommendation(s): A youth who lives in a household where a family member is eligible to receive free or reduced lunch should also be presumed eligible for youth workforce services. If a youth comes from a household where a family member is eligible to receive a free or reduced price lunch, that youth would likely also meet the requisite income eligibility. Proposed Rule What services must local programs offer to youth participants? 1. Recommendation(s): Local programs should not be required to have all 14 program elements available to WIOA youth participants. In areas with a significant number of youth participants, local areas need the discretion to determine which elements to provide to their participant pools. Among 14 program elements, local areas may know which are the most pressing to have available to their youth. Rather than find providers who address all of these needs, local areas should be able to determine which of the 14 program elements are the most necessary. Proposed Rule What are follow-up services for youth? 2015 Philadelphia Works All rights reserved. 5

6 1. NPRM: The Department seeks comment on whether this section includes reasonable requirements for follow-up services. Recommendation(s): Offer exceptions for youth who have shown to be non-responsive to a certain number of follow-up attempts that take place in staggered efforts over a certain period of time. Although we understand the importance of offering follow-up services for youth and understand DOL s requirement that follow-up services must include more than only a contact attempted or made for securing documentation in order to report a performance outcome, there must be some accommodation offered for youth who have shown to be non-responsive as a means to better target limited resources towards youth who are in need of services. Comments to Notice of Proposed Rulemaking on Titles I and III of the Workforce Innovation and Opportunity Act (Regulatory Identification Number 1205-AB74 / Docket Number ETA ) Proposed Rule How is the one-stop operator selected? 1. Recommendation(s): - Offer additional clarity on the process of procurement as the regulations are very convoluted. - Emphasize that this determination is one for local areas to administer and offer local areas, and only local areas, an opportunity to grandfather in, without a competitive procurement process, their initial one-stop operators that have performed successfully under the Workforce Investment Act of 1998 (WIA). - Throughout this process, we have heard different interpretations/understandings of the procurement process from across the country. When reading through the regulations, there are many areas that lead to confusion and misinterpretation and believe this section overall could benefit from some additional clarity. - For those one-stop operator models that have performed successfully, local areas will be expending already limited resources on a competitive procurement process that may not bear a different result. As a result of WIOA, many local areas will undergo significant transition and in order to minimize disruption to the system and its customers, we recommend an initial opportunity to grandfather in successful one-stop operators, at the discretion of the local area only. Title I Part 677 Subpart A State Indicators of Performance for Core Programs 1. Recommendation(s): If there are participant characteristics that negatively impact performance outcomes that are not captured by statistical models, state and local areas should be able to document these characteristics and use the documentation in negotiations. In order to mitigate this possibility, we recommend stronger inclusion of state and local areas in the process of developing a statistical model. Furthermore, negotiated measures should, to the extent possible, address the reality of the economic conditions and the population within the state and local area. One of the primary tenets of WIOA is to increase, especially for those with barriers to employment, access to and opportunities for the employment education training and support services they need to succeed in the labor market. In light of this intended legislative purpose, the performance measures to which all core programs are now accountable should reflect the realities of the populations that our system is now called to prioritize. These individuals require additional, specialized supports and without the appropriate accommodations our measures will not 2015 Philadelphia Works All rights reserved. 6

7 reflect all of the progress or successes towards working with this population. We recognize that the statistical adjustment model is a step towards that accommodation. We request that additional accommodation be made, especially in consideration of areas such as Philadelphia, where we serve a significantly large population of the state s individuals with barriers to employment, towards additional characteristics of participants that may not be captured by statistical models. Without these accommodations, we will be significantly challenged in realizing the vision of WIOA as it relates to serving those with barriers to employment. 2. Recommendation(s): Access to and timeliness data is critical for the success of WIOA and the historic opportunity it represents to align systems. We urge attention be given to how data, especially UI data, are collected and disseminated so they may be more timely. - Wage data is a key element in the determination of whether a core partner, local area, region and/or state has met its performance metrics. Core partners should all have access to official wage records at state and local levels. - By the time actual data becomes available it is too late to make the program adjustments necessary to meet performance benchmarks. Under WIOA, timeliness of data is an even more pressing issue as the measurement periods extend longer than WIA. As the performance measures determine whether a local area and/or region may continue to be designated, timely information is critical. 3. Recommendation(s): While WIOA offers opportunities for data sharing between states, we would also like to emphasize the importance of sharing information among programs to improve coordination, avoid duplication and better align services. Under the current system, at best, participants are buried in release of information forms so agencies can exchange information on an individual basis; at worst, no information sharing is taking place at all. Providing targeted guidance and additional resources to require/support state agencies (including education) as they share information about common customers will help states and localities plan better and offer systemwide efficiencies in service and course corrections. Proposed Rule (b) Reportable individual 1. NPRM: The Departments are seeking feedback regarding this proposed approach, specifically for the WIOA title I and III programs, on the appropriate point of receipt of staff-assisted services, which has not been a commonly defined point under WIA. Recommendation(s): We support the Departments proposed approach to defining reportable individual. The proposed definition sufficiently delineates the differences between the programs while maintaining a definition of the necessary engagement level that is consistent, despite programmatic differences. - The removal of self-service and information-only individuals from performance calculations will provide a better indicator of the impact of staff-assisted Employment Services. These individuals are often merely curious; they are neither directed nor intentionally focused. Therefore their outcomes, whether positive or negative, may be removed from their interaction with workforce services. Proposed Rule (b) Exit 2015 Philadelphia Works All rights reserved. 7

8 1. NPRM: The Departments seek comments on whether an individual s continued use of self-service offerings should extend the individual s exit date, or if a participant should be considered as having exited after the final staff-assisted service. Recommendation(s): The definition of exit as the final staff-assisted service date is strongly supported, and would be consistent with the proposed definition of reportable individual for performance calculations. The final staff-assisted service date allows for a more direct correlation between services and outcomes. Self-service by individuals, which can extend the exit date for months and even years, distancing the eventual outcome from staff-assisted services. Since the reasons for an individual s continued use of self-service are varied, counting individuals who continue to use self-service makes it impossible to evaluate the effectiveness of workforce services, as well as to associate funds expended with outcomes achieved. 2. NPRM: The Departments are seeking comment on the costs and benefits of taking a program-exit approach or a common exit approach in defining exit. Recommendation(s): A common exit approach could prove to be problematic if the services provided by multiple programs are sequential. We recommend a program-exit approach. However, the ultimate recommendation depends heavily on the definition of exit. Assuming that an exit from a program is determined by the last date of a staff-assisted service and that an individual is exited if there are no services after 90 days from the last staff-assisted service: - If an individual is in an Adult Education and Family Literacy Act (AEFLA) program under WIOA Title II and attains his GED. The last staff-assisted service under AEFLA is 1/1/2016. Prior to 90 days from this last service, on 3/1/2016 the individual becomes a participant under Wagner- Peyser. Prior to 90 days from the last staff-assisted service under Wagner-Peyser, on 4/1/2016, the individual becomes a participant under WIOA Title I Adult and enrolls in a 6-month training program which ends 9/30/2016. The individual is unsuccessful in immediately attaining employment and WIOA Title I staff continue to provide services for 3 months. The individual attains employment on 1/1/2017. The credential attainment achieved under Title II, which was attained on 1/1/2016 would not be reportable until a year later under the common exit approach. This makes Title II s efforts to correlate services provided and funds expended with outcomes more difficult. Using the same definition for exit (i.e. that an exit is determined by the last date of a staff-assisted service) with an individual who exits after 90 days, the issue of multiple exits would still present itself if services provided by multiple programs are sequential and the time between services provided is more than 90 days. - Using the same individual as in the preceding scenario, the individual s last staff-assisted service under AEFLA is 1/1/2016. In this case 90 days expire before he becomes a participant under Wagner-Peyser. The individual counts as an exit for AEFLA, but then eventually count as an exit for Wagner-Peyser and perhaps eventually for Title I. Some might venture to say that the first exit from AEFLA could be cancelled if the individual eventually became a participant under another program, but how long is a reasonable time? While a common exit approach would emphasize the importance of...receiving and completing all partner program services necessary with different individuals assuming different paths along their own personal timelines, the determination of what programs are necessary and under what timelines services should and would be rendered would be somewhat subjective and not subject to a definition that would be sufficiently comprehensive to apply over the entire population. A program-specific exit approach is a less problematic method and more consistent Philadelphia Works All rights reserved. 8

9 - If we suppose that an individual attains a credential under AEFLA and the last staff-assisted service is 1/1/2016. This credential attainment is counted for AEFLA. The individual then avails his or her self of Wagner-Peyser services, either within or beyond 90 days from the last AEFLA service, and attains employment with 2 months. The last staff-assisted service under Wager- Peyser is 5/1/2016, and this employment is counted under Wager-Peyser performance. Multiple exits are not an issue; we are counting individuals under different performance measures which are reported separately. - One might have a concern under the program-specific approach if the performance indicator being measured is the same. If we assume that an individual attains a credential under AEFLA and then attains another credential under Title I during the same performance period, this person would then be counted twice for the overall state indicator score. While the program indicator scores would be correct, the overall indicator score would be inflated. This could be overcome by not duplicating results for overall system performance, with a notation that the results indicate the number of unique individuals who attained credentials and also noting the total number of credentials achieved. 3. Recommendation(s): We request guidance that clarifies who will be included in the new calculation of performance and, in light of the present opportunity to start fresh with WIOA clients, provide additional categories for neutral exits than what has been available under WIA. Currently, many if not all states and local areas carry individuals in their caseloads for three or more years. As the WIOA measures apply to individuals enrolled under WIA, an entirely different system with significantly varying performance, we see an important opportunity for us to re-organize our current data systems to better align with the new requirements. Proposed Rule (a)( 1) identifies the six primary indicators that will be applied to the core programs identified in sec. 116(b)(3)(A) (ii) of WIOA. 1. NPRM: Should, and if so, how should the Departments collect information on the quality of employment and how WIOA s programs help employed and underemployed individuals find new or better jobs? Recommendation(s): The Department should not collect additional information on the quality of employment and how WIOA s programs help employed and underemployed individuals find new or better jobs. While the quality of employment and WIOAs programs are important to understand, they are challenging to actually measure. A quality job is too subjective: - Based on an individual s circumstance, a measure of quality could easily work against serving those with barriers to employment, especially if quality is measured by wage level with no consideration for the participant s beginning levels. - This measure may not be valid/comparable across the country since the quality of jobs could vary by local labor market and/or dominant industries. - Ideally, the common measures against which all core programs are compared should have been identified as the most effective way to collect information on the quality of opportunities available through WIOA s workforce system. 2. NPRM: What are the advantages and disadvantages of collecting or reporting the employment retention rate in addition to the employment rate? 2015 Philadelphia Works All rights reserved. 9

10 Recommendation(s): We do not recommend the addition of an employment retention rate measure if it would result in additional costs or burden. The employment retention rate (as it was defined under WIA) was not an especially significant measure. If it can be reported at a little cost or using availability of data, it may be informational at best but we would not categorize it as important or actionable enough that we could justify the use of additional resources to report on it. Proposed Rule (a)(1)(iii) Participants median earnings 1. Recommendation(s): Consider including the value of benefits received towards the participants median earnings measure. - Given the national policy push towards workers rights and employer-provided benefits, Philadelphia had previously instituted a wage requirement that was disaggregated based on whether the position came with or without benefits. (We established a minimum wage requirement of $11/hour with benefits and $13/hour without benefits.) When considering the ultimate goal of measuring median earnings which does not account for benefits but is supposed to gauge the quality of employment opportunities in which participants have been placed we believe that gathering information on wage and benefits would present a more accurate and fuller picture. - While we understand that with the enactment of the Affordable Care Act measuring health insurance may not be as applicable, by not measuring it we run the risk of delivering an unintended message that employer-provided benefits are no longer as relevant, when in fact they are critical. Proposed Rule (a)(1)(v) Measurable skill gains 1. NPRM: The Departments seek comments on the proposed indicator and request comments on the ways states can measure and document participants measurable skill gains in a standardized way, including whether time intervals are required and what time intervals might be. Recommendation(s): - Measureable skills gains should apply to only those programs that exceed 14 weeks (thus reducing the burden on semester-based programs). - Measurable skills gains should be based on the skills starting point after a standardized assessment tool is delivered in the Individual Employment Plan and the final goals for skills gains. - Similar to what is done in the education system, DOL/ED can develop categories with different gains available within each category. These categories can be based on population, skill level, etc. and should account for those who may fall into multiple categories. Within each category there should be a set of measures to reflect what would qualify as a measurable skill gain. - As individuals move forward in their program, they can be counted towards having achieved that gain. Along the way, specific skill or knowledge gain should be demonstrated every 14 weeks based on: o Gaining an industry or employer-recognized credential o Increase in TABE, WorkKeys, or other assessment tools used at the start of the training. - We believe 14 weeks is sufficient to show gains in all training and literacy components for those preparing to be active in the workforce regardless of barriers Philadelphia Works All rights reserved. 10

11 - As we discussed the variety of options in accurately capturing this measure we wanted to appropriately account for individualized skill gains with the concept that there is some shared commonality within groups. Proposed Rule (a)(1)(vi) implements the sixth statutory primary indicator related to effectiveness in serving employers. 1. NPRM: The Departments seek comment on the relative merits of each approach: - Measure employee retention rates tied to the employment they obtain after receiving WIOA services: o Recommendation(s): This would not be an effective approach. o The mere fact that an individual is employed with the same employer does not mean that the employer is satisfied with that employee. Additionally, employees may leave a job for a variety of reasons. The fact that they are no longer with the same employer is not a direct indicator of effectiveness. - Measure the repeat/retention rates for employers use of core programs: o Recommendation(s): This would not be an effective approach. o The mere fact that employers do not avail themselves of the workforce system after a hire does not necessarily indicate that they were not satisfied. An employer could hire an individual from the workforce system and be entirely satisfied with the hire, but may not have any additional openings a common scenario for many of the small businesses with which we work. - The Departments are also considering using the number or percent of employers that are using the core program services out of all employers represented in an area or State served by the system. o Recommendation(s): This would not be an effective approach. If, however, this approach were one of the chosen methods, we strongly recommend a definition for using the core program services. o In order to implement a market penetration rate, there would first need to be an accurate denominator measure of all of the employers in a single area and this number would need to be regularly updated in larger cities this is challenging to regularly maintain. By using a measure of percentage of employers represented in an area or state may result in unfair or misunderstood comparisons between areas. For example, if one area has 30,000 employers and another area has 100 employers, it may be easier, with similar resources relative to size, for the smaller area to serve a higher percentage of employers. Measuring by market penetration actually serves as a measure of outreach and engagement efforts rather than actual effectiveness in serving employers. If this approach were chosen, it would be important to have a uniform definition of using the core program services. For example, many employers post jobs on the workforce system website as a matter of course, along with posting the same job on other sites. The mere usage of the system by posting a job does not reflect a level of engagement for which effectiveness of services provided would have any meaning. What is more, even if only those services which indicate a defined level of engagement are counted in this measure, those services must be chosen with significant scrutiny; the 2015 Philadelphia Works All rights reserved. 11

12 mere usage of these value-added services does not mean that the services were effective. 2. NPRM: The Departments also seek comment about whether a single metric for this indicator would sufficiently capture effectiveness in serving employers or if this indicator should encompass a combination of metrics, including how metrics could most effectively be combined. Recommendation(s): An approach along the lines of the Aspen Institute Workforce Strategies Initiative in their paper, A New Measure Deserves a New Way of Measuring: An Idea for the WIOA Measure of Effectiveness in Serving Employers merits serious consideration. Although the proposed approaches to measuring effectiveness in serving employers are quantifiable, none of them are particularly meaningful. This paper emphasizes measuring not merely the transactional but also the transformational. A mere counting of activities is not an indicative measure of the true effectiveness in serving employers. While these counts are included in the Aspen Institute proposal, they are supplemented by activities that indicate increasing levels of employer engagement with the workforce system, which is a more meaningful measure of effectiveness. 3. NPRM: The Departments are proposing to look at this as a shared indicator across programs, as many employers are served by multiple programs. Another approach could be to apply this measure to individual core programs. Recommendation(s): The effectiveness in serving employers measure should be a shared indicator across programs. Employers can be served by multiple programs. Also, by establishing this as a shared indicator, the different programs would have more incentive to serve employers in a collaborative way. This would not only streamline employer services by reducing or eliminating duplicative efforts, but would allow a more unified face of the workforce system to employers. Proposed Rule (a)(9) What information is required for state performance reports? 1. NPRM: The Departments are also considering the addition of a supplemental customer service measure, which would assess the quality of services provided to American Job Center customers. This measure would not be a primary indicator of performance, but would be used as a tool for tracking the quality of the customer experience. The Departments seek comment on how to structure such a measure (e.g., using the net promoter score) and whether the inclusion of such a measure would be valuable. Recommendation(s): A measure such as the Net Promoter Score could serve as an indicator to state and local areas but without supplemental information the data would not be actionable. One could take the Net Promoter approach, but stratify it into perhaps a series of five questions that target specific areas (e.g. staff quality, workshops, etc.) that may better direct states or local areas future efforts. Proposed Rule (c) When are sanctions applied for failure to achieve adjusted levels of performance? 1. NPRM: The Departments seek comment on whether to use a weighted average or a straight average for the purposes of each overall indicator score. Recommendation: A weighted average would be a more meaningful reflection of the system as a whole and its impact on the most individuals Philadelphia Works All rights reserved. 12

13 2. NPRM: Because WIOA introduces new indicators on which no historical data exist, there is a need to establish baseline benchmarks from which to establish adjusted levels of performance under WIOA. For this reason, the Departments seek comment on the transition timing of the performance accountability system as WIOA is implemented. Recommendation(s): States should be given a deadline to establish a means of collecting these data. The data can be collected for one year, as both the credential attainment and measureable skills gain are affected by the time of year and any shorter period would be affected by seasonal variations. This year of data could then serve as a reasonable baseline for establishing adjusted levels of performance. - We assume that historical data can be obtained for the Employment 2 nd Quarter, Employment 4 th Quarter and Median Earnings measures. Ideally, the statistical adjustment model could be provided for each of the historical time periods so that states and areas can negotiate performance levels in an informed way. These measures could apply immediately to all individuals who become participants beginning 7/1/ The Credential Attainment, Measureable Skill Gains, and Effectiveness in Serving Employers are more problematic. Not only is there no historical data but also the systems and processes to capture these data will take time to implement. Proposed Rule How are one-stop centers and one-stop delivery systems certified for effectiveness, physical and programmatic accessibility, and continuous improvement? 1. NPRM: The Departments seek comments on how local areas can best measure the customer satisfaction of individuals who utilize American Job Centers as an aspect of effectiveness. Recommendation(s): As we sought out various options to gauge customer satisfaction, our best recommendation was the usage of brief surveys via phone and/or internet resources when customers call into the center or use the center s resources. We recommend that the measures themselves be centered on the following concepts: - A center s responsiveness to the needs of employers and customers - Availability and quality of workshops - Repeat usage over a limited period of time 2. NPRM: The Departments seek input on other important factors in making one-stop centers operate more efficiently and effectively both for consideration as one-stop certification criteria and for general program implementation and management. Recommendation(s): WIOA has required the integration of additional programs into one-stop centers. In light of DOL s articulated vision of aligning programs and ensuring integrated services, we recommend that criteria focus on: - System performance versus program performance - Effective communication and data sharing across systems while safeguarding information - Availability of diverse, yet necessary resources within a one-stop One Penn Center at Suburban Station 1617 JFK Boulevard, 13th Floor Philadelphia, PA P: F:

Workforce Innovation and Opportunity Act Frequently Asked Questions July 22, 2014

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