Registered Apprenticeship and WIBs: Meeting Industry Demand and Creating High-Wage Jobs NAWB, 2014

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1 Registered Apprenticeship and WIBs: Meeting Industry Demand and Creating High-Wage Jobs NAWB, 2014

2 Presenters 2 Janet Howard, Deputy Director, Strategic Planning, Operations, Policy and Finance, Workforce Development Agency, Michigan Pamela Moore, President & CEO, Detroit Employment Solutions Corporation Teri Luther, Apprenticeship Consultant, Apprenticeship Carolina, South Carolina Moderator: John Ladd, Administrator, Office of Apprenticeship, U.S. Department of Labor

3 Registered Apprenticeship: A Job and Training! Registered Apprenticeships are formalized, structured training programs that combine paid onthe-job (job) learning with related technical, theoretical instruction (training) in a skilled occupation. Combines immediate employment with a structured program of skill attainment ranging from one to six years that leads to sustainable and generally well-paid careers. Apprenticeships are largely funded mainly by sponsors Employers, Associations, or Labor-Management Organizations

4 Snapshot of Registered Apprenticeship Activity and Performance Today 19,400 programs estimated to serve the needs of approximately 200,000 employers, labor-management organizations, and educational partners. 60% of sponsors are construction related Approximately 1,500 new programs established in FY13 Approximately 375,000 active apprentices nationwide in FY 2013 in potentially 1,000 occupational areas. More than 164,000 became apprentices in FY 2013 Over 87,000 (23 percent) in military apprenticeships Approximately 21% minority and 6% women

5 Registered Apprenticeship Works! Recent Evaluation Proves It! Strong Public Benefit: $28 in benefits to every $1 invested by USDOL and States in RA and high employer engagement and investment. (Source: MPR Study released in 2012) Not Just a Job, But a Career: Provides wage progression and career pathway beyond entry-level employment. Completers earn approximately $50,000 per year, and over $300,000 more than non-participants over a lifetime. (Source: MPR Evaluation) Pathway to College: Increasingly combines ability to earn college credit/degree.

6 Looking ahead: Goals for Registered Apprenticeship in the 21 st Century Apprenticeship is good for business Seeking to increase the numbers and types of businesses reaping the advantages of quality registered apprenticeship. Apprenticeship is an education Seeking to increase partnerships with workforce and education that position RA as a critical post-secondary pathway to a sustainable career. Apprenticeship is for everyone Increasing Opportunities in Registered Apprenticeship for a range of Under-Represented Populations Apprenticeship is good public policy. Promoting innovative RA as good public policy. 6

7 A Michigan Works! Agency Detroit Registered Apprenticeship Program (D-RAP): A Partnership Model for Success NAWB FORUM 2014 Pamela J. Moore President and CEO David Baker Lewis Chair, Detroit Workforce Development Board Cal Sharp Chair, Detroit Employment Solutions Corporation Board

8 Understanding the Challenge Building Detroit Means Building Detroiters 2

9 Constructing a High-Performance Organization On July 1, 2012, DESC became the administrative and fiscal agent for the City of Detroit s local Workforce Board (the DWDB) In an effort to establish ourselves as a high-performing agency, DESC has focused on four key objectives: Refine Operations for Greater Efficiency Develop Service Innovation Strategies Improve Performance Build Capacity Mission: Revitalize Detroit by cultivating local workforce talent to align with the needs of the business community through partnerships with key workforce agencies, faith- and community-based organizations, education and training institutions, philanthropic, economic development and government entities. 3

10 Detroit Registered Apprenticeship Pilot Program (D-RAPP) Vision and Keys to Success Created in early 2012 by a partnership comprised of the State of Michigan s Workforce Development Agency, the US Department of Labor s Michigan Office of Apprenticeship, and the City of Detroit s Workforce Development Board. D-RAPP was designed to recruit and prepare Detroit residents with marketable skills, allowing them to earn and learn in high-demand fields while positioning them on a sustainable career path. Goal: 20 placements by Spring 2013 Keys to Success: Interactive planning with coordinating agencies, partners and sponsors Sponsor-driven criteria Effective testing and assessment tools Selection of qualified individuals Subsidized readiness training Ongoing communication between all partners Managed expectations 4

11 Background R-CAR (Road Construction Apprentice Readiness Program) ( ) Readiness training for new job opportunities in the Construction field. 374 participants. E-CAR (Energy Conservation Apprentice Readiness Program) ( ) Readiness training for new job opportunities in the Energy Sector. 200 participants. MRAPP (Michigan Registered Apprenticeship Pilot Program) (2009) $1M incentive in Workforce Investment Act / American Recovery and Reinvestment Act funding to employers to sponsor USDOL registered apprentices. 283 apprentices, 30 occupations. 5

12 Capacity and Customers Served Who Are Detroit Employment Solutions? Capacity Program Year Customers Served One-Stop Service Center Locations 6

13 Detroit Employment Solutions Supply and Demand Service Model DESC Job Seeker Services DESC Business /Placement Services Referral Talent Pool Segments Testing & Assessment Pre employment Readiness Technical Training Placement & Retention Data Recruitment & Screening Assessing Talent Demand WIA Core and Intensive customers, TAA, PATH, Community Partner referrals, and Colleges/ Universities Adults Basic skills Above 10 Grade no yes Soft Skills Enhancement Remediation Services Skills Ready Direct Placement Individual Training Agreements Determining and harvesting employer talent needs Short-run 1-4 years DPS, EAA, DESC Youth Contractors DESC One Stop, and Community Partners DPS, EAA, DESC Youth Contractors DESC One Stop, and Community Partners Older Youth K-12 Older Youth and Disconnected Youth Accelerated programming delivered both within structured school day and stand alone programs (i.e. Earn and Learn) to promote job readiness in terms of basic skills proficiency, soft skills, and technical attainment with a focus on employment and/or continued education 9-12 th grade Blended year-round programming delivered both within structured school day and as an after school program to promote job readiness in terms of basic skills proficiency, soft skills, and technical attainment K-8 th grade Long term strategy to integrate mentorship and contextual skill attainment into traditional school curriculum Work Experience Recruitment & Screening Determining and harvesting employer talent needs Long-run 4-10 years 7

14 Partner Engagement New Partners Brookins Construction Trade School Kacent Culinary Institute HERCo Construction Initial Partners CVS Caremark Detroit Carpentry Detroit Electrical JATC/IBEW Hart & Associates Michigan Department of Transportation Michigan Laborers Operating Engineers United Auto Workers 8

15 Work Readiness Structure Hours 60-Hour Work Readiness 100-Hour Work Readiness 240-Hour Work Readiness Occupations IT, Healthcare, Transportation, Hospitality, Culinary Construction Carpentry, Electrical, Plumbing, Masonry Work Readiness Components DRAP Work Readiness Curriculum + Customer Service Credential 60-Hour Curriculum + 40-Hours Contextualized Construction Training 240-Hours technical Training (Blueprint Reading, Shop Math, etc ) 9

16 Examples of Apprentice Payment Structures Apprentice Track Median Wage Projected Growth Rate Participant Stipend DESC ITA OR Payments Employer Training Supports Supports Payout Term Culinary $ % $600 $2000 $ year CDL-A Drivers $ % $600 $4000 $ year CNA/PCT $ % $600 $1500 $ year IT $ % $600 $5000 $ Years 10

17 Examples of Apprentice Payment Structures Apprentice Track Median Wage Projected Growth Rate Participant Stipend DESC ITA Payments Employer Training Supports Supports Payout Term Level I Skilled Trades Level II Skilled Trades $ % $1000 $1500 $ Years AND $ % $1500 $2000 $ Years 11

18 Participant Activity 2012 Goal 20 Currently In Training 16 Current Apprentices 39 Placement Rate 88.6% 12

19 Candidate Profile Participant Age (Median Age = 39 years) Female 10% Gender 9% 5% Occupations 5% 65% 5% 30% Under 18 years years White 5% Male 90% Race 43% 24% 14% Electrical Carpentry Laborers African American 95% Operating Engineers Construction Management 13

20 D-RAP 2014 PROJECTED BUDGET Budget Line Item Total Training Cost (300 Participants) Total Cost Per Participant Recruitment Staff Expenses (Screening, Career Advisor, Manager) $162,000 $540 Skills Assessment Exams $99,300 $331 Readiness Trainer $120,000 $400 Readiness Materials $20,100 $67 Total Staffing and Supply Costs $401,400 $1,338 Participant Subsidy $375,000 $1,250 Participant Supportive Services $300,000 $1,000 ITA Costs $525,000 $1,750 Total Participant Costs $1,200,000 $4,000 TOTAL STAFFING & PARTICIPANT COSTS $1,601,400 $5,338 Sponsor Incentives (39 Employer Sponsors) $78,000 Total D-RAP Program Costs $1,679,400.0 $2,000 (per Sponsor) 14

21 New Opportunities I. K-12 Partnerships II. Major 2014 Projects - Detroit Future City - Blight Project - Olympia Entertainment - M1 Rail - New International Trade Crossing 15

22 December 12, 2013 Northwest Activities Center U.S. Secretaries Tom Perez (Labor) and Arne Duncan (Education) attended

23 Thank You The talent you want. The skills you need. The name to know. 17

24

25 SC Technical College System Primary Mechanisms for Economic and Workforce Development

26 Hire date Entry Level Skills The Colleges

27 Success At A Glance Employers in all of South Carolina s 46 counties are sponsoring a registered apprenticeship program. All College service areas are participating. Average Growth: Over one new program EACH WEEK New programs represent diverse industry sectors including advanced manufacturing, healthcare, creative industries, and information technology One in three programs offers training in more than one occupation

28 Industry Sectors Served Advanced Manufacturing & Technologies Construction Technologies Energy & Related Industries Health Care Information Technology Transportation, Distribution & Logistics Tourism & Service Industries

29 Apprenticeship Carolina s Mission To serve as the primary office for the development of a coordinated, statewide system promoting and supporting registered apprenticeship as a viable workforce development tool. Making certain all employers in South Carolina have access to information and consultative services regarding sponsorship of a demand-driven registered apprenticeship program.

30 Serving All South Carolina Employers Brad Neese Robert Crenshaw Teri Luther Brandon Spence Carla Whitlock Brian Rauschenbach

31 Your Apprenticeship Consultant Understand the registered apprenticeship training model Identify existing models for the occupations of interest Connect businesses with appropriate resources and services Draft and assist in finalizing registration documents Submit the paperwork to the USDOL for full recognition in the National Registered Apprenticeship System Assist with program revisions or updates as workforce needs evolve

32 South Carolina Registered Apprenticeship Tax Credit Employers sponsoring registered apprenticeship programs are eligible for a South Carolina tax credit of $1,000 per apprentice per year for up to 4 years. Employees must be under an Apprenticeship Agreement for 7 months of the year in which the credit is claimed

33 WIA Connections Referral Source On the Job Training Contracts Youth Summer Employment Connecting companies to available talent Work Keys Testing and Profiling Education cost offset Rapid Response

34 Teri Luther Apprenticeship Consultant office (803) cell (803)

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