Effective Date 7/1/2013. Last Updated 1/17/2014. Contact Anthony Alongi, (651)

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1 Small Layoff Independent Grants: Performance Tier Formula Summary The Job Skills Partnership Board implemented the Small Layoff Independent Grants to better reward outstanding service to Dislocated Worker program participants. These grants build program capacity among new providers and in turn will allow more providers to compete for each large layoff project. This approach includes a tiered funding structure for future awards that rewards high performance in targeted areas. The performance tier funding structure is outlined here. Relevant Policies Dislocated Worker Policy: Procedures for Awarding Small Layoff Funding for Independent Grantees Dislocated Worker Policy: Program Provider Certification/ Decertification Dislocated Worker and WIA Adult Policy: Performance Standards Dislocated Worker and WIA Adult Policy: Data Entry Timeliness Requirements Effective Date 7/1/2013 Last Updated 1/17/2014 Contact Anthony Alongi, Anthony.Alongi@state.mn.us (651) Performance Tier Formula Performance tier funding is available to five providers in each grant round, starting with the SFY16/17 grant round. For a list of current eligible providers, see the Program Provider Certification/ Decertification policy. In addition to complying with and meeting the standards laid out in the Performance Standards policy, providers must have at least 40 Small Layoff Independent Grant exiters per grant round to be eligible. These calculations only include those served by Small Layoff Independent Grant funds, not mass layoff grant participants. Providers are eligible for only one performance award, which are distributed in the order presented in this policy. Interim formulas for the SFY16/17 grant round are required because longer-term participant performance such as job retention take over a year after exit to determine. Accordingly, the SFY16/17 grant round uses shorter-term performance outcomes to determine funding. These interim measures are laid out in the first half of this document. Measures for the SFY18/19 grant round are laid out in the second half, and will be used for grant rounds thereafter. Although DEED staff will calculate most of these performance measures using external data sources, some measures by their nature are harder to verify. DEED expects providers will uphold the integrity of this competitive process, and reserves the right to rescind funds and/or revoke Dislocated Worker program certification if DEED monitors or other staff find evidence of falsified Workforce One data.

2 Interim Measures for SFY16/17 grant round 1. Interim Measure for Cost per entered employment: Cost per exiter Total SFY14/15 grant expenditures between July 2013 and February 2015 This performance award goes to the provider with the lowest cost per exiter over the course of the twoyear grant. DEED will include exiters from the start of the grant in July 2013 to February 2015, the latest available data to determine SFY16/17 funding in March 2015, using exit dates recorded in Workforce One. Note that performance in this measure would benefit from up-to-date data entry on exit dates, above and beyond that required in the Data Entry Timeliness Requirements policy. 2. Interim Measure for Employment and retention rate: Entered employment rate Of participants exited between July 2013 and June 2014: Participants employed in the quarter after the exit quarter This performance award goes to the provider with the highest Entered Employment Rate, as defined in the Performance Standards policy. DEED will include exiters from the start of the grant in July 2013 to June 2014, the latest available data to determine SFY16/17 funding in March DEED will calculate this measure using employment data from wage detail and supplemental wage information from Workforce One. 3. Interim Measure for Wages: Median wage in placement occupation Of participants exited into employment between July 2013 and February 2015: Sum of median wages in placement occupations This performance award goes to the provider placing participants in the most lucrative fields. The numerator is a sum of median wages within occupations, based on the occupation code (ONET) entered into the Outcome screen in Workforce One. Wage data will be state-wide median wages from Occupation Employment Statistics (OES) data. Providers can access OES data for occupations relevant to their participants through ISEEK, or directly from DEED s Labor Market

3 Information website. DEED will include exiters from the start of the grant in July 2013 to February 2015, the latest available data to determine SFY16/17 funding in March DEED will only include exiters with the exit reason Entered Unsubsidized Employment. DEED s customer satisfaction survey to these participants will ask for job title and employer name to verify the ONET code entered into Workforce One. 4. Interim Measure for Serving Long-Term Unemployed: Percent Long-Term Unemployed Of participants served between July 2013 and February 2015: Long-term unemployed participants Total number of served participants This performance award goes to the provider with the highest percentage of participants who are longterm unemployed. The numerator must be at least 20 to be eligible for this award. DEED defines longterm unemployed as being unemployed for at least 26 of the past 52 weeks at program enrollment, as entered into Workforce One. DEED will include new enrollees from the start of the grant in July 2013 to February 2015, the latest available data to determine SFY16/17 funding in March Note that performance in this measure would benefit from up-to-date data entry on enrollment dates, above and beyond that required in the Dislocated Worker and WIA Adult Data Entry Timeliness Requirements policy. A layoff notice, statement of UI benefits, resume, and/or a signed letter from the customer detailing unemployment period must verify 26-week unemployment and must be included in the client file of all participants indicated as long-term unemployed in Workforce One. In addition, DEED will look for yearly earnings below a reasonable threshold in wage detail as further indication of the participant s unemployment. All participants must also meet program eligibility requirements. DEED s customer satisfaction survey will ask for confirmation of unemployment status.

4 5. Interim Measure for Serving Minority Job Seekers: Percent Minority Job Seeker Of participants served between July 2013 and February 2015: Minority participants Total number of served participants This performance award goes to the provider with the highest percentage of participants who are racial or ethnic minorities. The numerator must be at least 20 to be eligible for this award. DEED will include new enrollees from the start of the grant in July 2013 to February 2015, the latest available data to determine SFY16/17 funding in March Note that performance in this measure would benefit from up-to-date data entry on enrollment dates, above and beyond that required in the Dislocated Worker and WIA Adult Data Entry Timeliness Requirements policy. Minority status is entered into Workforce One, and is defined as self-identifying with one or more of: - A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture in origin, regardless of race - American Indian or Alaska Native - Asian - Black or African American - Hawaiian Native or other Pacific Islander All participants must also meet program eligibility requirements. DEED s customer satisfaction survey will ask for confirmation of racial and ethnic identity. Exit Cohorts for Calculating SFY16/17 Performance Tier Awards Entered Employment Rate Median Wage in Placement Occupation Percent Job Seekers who are Long-Term Unemployed Percent Job Seekers from Minority Groups Cost Per Exiter SFY14/15 Grant Period 7/13-8/13 9/13-10/13 11/13-12/13 1/14-2/14 3/14-4/14 5/14-6/14 7/14-8/14 9/14-10/14 11/14-12/14 1/15-2/15 3/15-4/15 5/15-6/15

5 Measures used in SFY18/19 grant round and thereafter 1. Cost per entered employment Total SFY16-SFY17 grant expenditures Participants exited between July 2014 and June 2016 and employed in the quarter after the exit quarter This performance award goes to the provider with the lowest cost per participant who enters employment over the course of the two-year grant. The Performance Standards policy defines the entered employment measure. Two years of exiters correspond to the two-year grant period, using the most recent data available. DEED will calculate this measure using employment data from wage detail and supplemental wage information from Workforce One. 2. Employment and retention rate Number of participants employed in the 1 st, 2 nd, and 3 rd quarters after the exit quarter This performance award goes to the provider with the highest rate of continued employment among exiters. Participants employed at time of program enrollment are included in this measure. Two years of exiters correspond to the two-year grant period, using the most recent data available. DEED will calculate this measure using employment data from wage detail and supplemental wage information from Workforce One. 3. Wages (Total earnings in the 2 nd and 3 rd quarters after the exit quarter Total number of participants employed in the 1 st, 2 nd, and 3 rd quarters after the exit quarter) The average earnings standard for your region This performance award goes to the provider with the highest average earnings performance, relative to the average earnings standard which takes into account wage differences across the state. The Performance Standards policy records the average earnings standard for each region. Two years of

6 exiters correspond to the two-year grant period, using the most recent data available. DEED will calculate this measure using employment data from wage detail. 4. Serving job seekers who are long-term unemployed Long-term unemployed participants employed in the 1 st, 2 nd, and 3 rd quarters after the exit quarter and earning at or above the average earnings standard for your region This performance award goes to the provider with the highest percentage of long-term unemployed participants who are successful exiters. The numerator is comprised of long-term unemployed participants who a) are working in the three quarters after exit and b) earn an amount in the 2 nd and 3 rd quarters equal to or greater than the average earnings standard for your region. The Performance Standards policy records the average earnings standard for each region. DEED defines long-term unemployed as being unemployed for at least 26 of the past 52 weeks at program enrollment, which is entered into Workforce One in the Eligibility screen. DEED will calculate this measure using employment data from wage detail and supplemental wage information from Workforce One. Two years of exiters correspond to the two-year grant period, using the most recent data available. A layoff notice, statement of UI benefits, resume, and/or a signed letter from the customer detailing unemployment period must verify 26-week unemployment and must be included in the client file of all participants indicated as long-term unemployed in Workforce One. In addition, DEED will look for yearly earnings below a reasonable threshold in wage detail as further indication of the participant s unemployment. All participants must also meet program eligibility requirements. DEED s customer satisfaction survey will ask for confirmation of unemployment status. 5. Serving job seekers from minority groups Minority participants employed in the 1 st, 2 nd, and 3 rd quarters after the exit quarter and earning at or above the average earnings standard for your region This performance award goes to the provider with the highest percentage of successful exiters who are racial or ethnic minorities. The numerator is comprised of minority participants who a) are working in the three quarters after exit and b) earn an amount in the 2 nd and 3 rd quarters equal to or greater than the average earnings standard for your region. The Performance Standards policy records the average earnings standard for each region. Minority status is entered into Workforce One, and is defined as self-identifying with one or more of:

7 - A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture in origin, regardless of race - American Indian or Alaska Native - Asian - Black or African American - Hawaiian Native or other Pacific Islander DEED will calculate this measure using employment data from wage detail and supplemental wage information from Workforce One. Two years of exiters correspond to the two-year grant period, using the most recent data available. All participants must also meet program eligibility requirements. DEED s customer satisfaction survey will ask for confirmation of racial and ethnic identity. Exit Cohorts for Calculating SFY18/19 Performance Tier Awards Employment and Retention Rate Wages Serving Job Seekers from Minority Groups Serving Job Seekers who are Long-Term Unemployed Cost Per Entered Employment SFY16/17 Grant Period 1/14-6/14 7/14-12/14 1/15-6/15 7/15-12/15 1/16-6/16 7/16-12/16 1/17-6/17