Defining Credentials for the Public Workforce System. ACT Policy Brief

Defiig Credetials for the Public Workforce System ACT Policy Brief

ACT is a registered trademark of ACT, Ic., i the U.S.A. ad other coutries. 2011 by ACT, Ic. All rights reserved. 16137

Executive Summary This paper outlies how the Natioal Career Readiess Certificate (NCRC) meets the defiitio of credetial as defied by the US Departmet of Labor Employmet (US DOL) ad Traiig Admiistratio s Traiig ad Employmet Guidace Letter (TEGL) 15-10. The NCRC fits the US DOL defiitio of a credetial both (a) i the cotext of workforce developmet i geeral ad (b) accordig to the specific defiitio outlied i the US DOL TEGL 15-10. The NCRC is a idustry-recogized, stackable, ad portable credetial that certifies the foudatioal competecies essetial for career readiess ad those ecessary for advacemet i career pathways. The NCRC certifies measurable occupatioal skills ecessary to obtai employmet, perform a job successfully, ad advace withi a occupatio. States may use Workforce Ivestmet Act (WIA) Title I ad other programs such as Wager-Peyser, WIA 15% Goveror s Discretioary, Trade Adjustmet Assistace, ad WIA Title II fudig to implemet the NCRC as part of a system of stackable credetials for ay career path withi a overall competecy model. The Natioal Associatio of Maufacturers (NAM), the Natioal Ceter for Costructio Educatio ad Research (NCCER), ad the Ceter for Eergy Workforce Developmet (CEWD) formally edorse the NCRC ad iclude it i their systems of stackable idustry credetials. The NCRC is a portable credetial, i that it is accepted ad recogized i may geographic areas (42 states have a statewide or regioal program uder way) ad idustries (NAM, NCCER, ad CEWD). ACT Policy Brief: Defiig Credetials for the Public Workforce System 3

The Importace of Postsecodary Credetials The atioal eed to icrease the umber of idividuals who complete some form of postsecodary traiig is apparet. A recet report states that the umber of jobs for idividuals with postsecodary educatio will icrease to more tha 100 millio i areas such as healthcare, educatio, commuity services, ad maagerial ad professioal services. 1 Natioally, there is a growig focus o credetialig as a importat postsecodary pathway to ecoomic success for the atio s workforce. Icreasigly, employees ad employers are turig to occupatioal certificates ad idustry-recogized credetials to address gaps. Ufortuately, idividuals who eter traiig programs desiged to culmiate i a idustry-specific credetial but who lack the key foudatioal occupatioal skills are ulikely to attai the credetial. This problem is highlighted i the Workforce Ivestmet Act Stadardized Reportig Data (WIASRD), which idicate a decliig rate of credetial attaimet amog idividuals erolled i Workforce Ivestmet Act (WIA) programs. 2 Idividuals would be much more likely to attai the desired credetial if they first eared a Natioal Career Readiess Certificate verifyig their mastery of the key foudatioal occupatioal skills eeded to be successful i a idustry-specific traiig program. This paper will outlie how the Natioal Career Readiess Certificate (NCRC) is a idustry-recogized, stackable, ad portable credetial for today s workforce. While may differet defiitios are curretly used for certificatios ad certificate programs, 3, 4 this paper focuses o credetial as a more overarchig, umbrella term that ecompasses may differet postsecodary traiig programs as cited i a recetly released Traiig ad Employmet Guidace Letter (TEGL) 15-10 by the US Departmet of Labor (US DOL). 5 Oe of the may purposes of the US DOL TEGL 15-10 was to clarify defiitioal questios relatig to credetials ad to provide detailed iformatio o the characteristics of credetials that determie their value to idividuals ad employers. This paper outlies how the NCRC meets this defiitio of credetial ad ca be used by policymakers ad workforce stakeholders to assist i evaluatig how to best positio the NCRC i their strategic plaig efforts. Measurig Foudatioal Competecies It is uiversally recogized that career pathways are fouded o a base of fudametal skill sets or competecies. These foudatioal competecies iclude workplace, persoal effectiveess, ad academic skills ecessary for successful developmet of additioal skill sets for a give idustry sector or occupatioal ladder. 6 The US DOL states that foudatioal competecies represet those competecies which provide the foudatio for success i school ad i the world of work ad that employers have idetified a lik betwee foudatioal skills ad job performace, as well as the fact that foudatioal skills are a eeded prerequisite for workers to lear ew idustry-specific skills. 7 ACT Policy Brief: Defiig Credetials for the Public Workforce System 4

The attaimet of both academic ad career readiess competecies is critical to a idividual s career pathway: the typical startig poit for occupatioal credetialig. A example of this type of crossover credetial is the NCRC. The NCRC is the atio s primary frot-lie credetial for documetig a idividual s career readiess qualificatios ad is a reliable predictor of career success. The US DOL states that the public workforce system should ivest i skills developmet that helps idividuals obtai measurable ad specific skills they eed to move alog directed career pathways. 8 I fact, the NCRC assessmets measure the foudatioal competecies essetial to performig successfully i a job ad eeded to advace i may career pathways. Examples of these foudatioal ad career readiess competecies iclude readig ad usig work-related text, applyig iformatio from workplace documets to solve problems, applyig mathematical reasoig to work-related problems, ad thikig critically. I additio, the ewly created NCRC Plus assessmet measures soft skills such as disciplie, depedability, attitude/optimism, ad teamwork. The combiatio of cogitive skills ad soft skills i the NCRC Plus allows for a eve more reliable predictio of a idividual s success i a job or job traiig program. ACT s extesive body of research shows that the combiatio of essetial ad foudatioal career readiess skills addressed by the NCRC are required for 77 percet of a recet sample of jobs profiled i the atio s largest job profile database ad i all of the US DOL Idustry Competecy Models. 9 The US DOL supports both the use of ad developmet of Idustry Competecy Models to promote a uderstadig of the skill sets ad competecies that are essetial to a educated ad skilled workforce. 10 Defiig the NCRC as a Credetial The umber of certificates awarded i the Uited States is growig alog with the credetialig market itself. 11 Geerally, a credetial refers to a variety of work qualificatios, icludig educatioal diplomas, certificates, degrees, occupatioal liceses, appreticeship certificates, ad specific skills certificates withi oe or more idustries or occupatios. 12, 13 However, federal ad state regulatory agecies have defied ad categorized credetials i various ways for the purpose of fudig ad reportig credetial attaimet. The US DOL TEGL 15-10 states that a credetial is awarded i recogitio of a idividual s attaimet of measurable techical or occupatioal skills ecessary to obtai employmet or advace withi a occupatio. These techical or occupatioal skills are geerally based o stadards developed or edorsed by employers. 14 The NCRC is a evidece-based credetial developed specifically to recogize these occupatioal skills, ad thus fits this defiitio precisely. The NCRC Skills are Measurable: Psychometric research was ad cotiues to be used to develop the NCRC assessmets to esure that they are costruct valid that they measure the psychological characteristics or skills they purport to measure. This evidece ca be foud i the Natioal Career Readiess ACT Policy Brief: Defiig Credetials for the Public Workforce System 5

Certificate ad WorkKeys Assessmets Techical Bulleti. 15 The NCRC Certifies Occupatioal Skills: Ulike credetialig assessmets that measure basic academic skills, the NCRC assessmets measure foudatioal occupatioal skills that are ecessary to obtai employmet, perform successfully o the job, ad advace withi a occupatio or career. As stated above, examples of these foudatioal skills iclude readig ad usig work-related text, applyig iformatio from workplace documets to solve problems, applyig mathematical reasoig to work-related problems, ad thikig critically. The US DOL states that these skills provide the foudatio for success i the world of work. 16 NCRC Skills are Necessary to Obtai Employmet, Perform a Job Successfully, ad Advace Withi a Occupatio: Foudatioal skills are defied by the US DOL as skills that provide the foudatio for success i the world of work because they are liked to job performace ad are eeded prerequisites to learig idustryad occupatio-specific skills. 17 ACT s Job Profiles of over 17,000 jobs provide cotet validity evidece that the skills verified by the NCRC are required to successfully perform work tasks. 18 Accordig to the US DOL Employmet ad Traiig Admiistratio, correlatios above.35 suggest that a assessmet is very beeficial i predictig job performace. I fact, validity coefficiets above.35 have bee foud i validatio studies for the skill assessmets that comprise the Natioal Career Readiess Certificate. 19 The NCRC is a career readiess certificate, ot a work-readiess certificate, as it verifies foudatioal skills critical to learig ew occupatio-specific skills 20 essetial to advacemet withi a career track. The NCRC ad state-specific credetials built o the NCRC framework fit the defiitio of a credetial i the cotext of educatio ad workforce developmet i geeral, as well as the specific defiitio outlied i the US DOL TEGL 15-10. Orgaizatios ad Istitutios that Award Credetials It has bee oted that credetials are ofte awarded by various types of istitutios ad orgaizatios. 21 However, the US DOL gives several examples of the types of orgaizatios ad istitutios that issue or award idustry-recogized credetials. Examples iclude (1) a state educatioal agecy or a state agecy resposible for admiisterig vocatio ad techical educatios withi the state, (2) commuity colleges, proprietary schools, ad all other istitutios of higher educatio that are eligible to participate i federal studet fiacial aid programs, ad (3) Job Corp ceters. 22 Because of the NCRC's ability to cofirm a idividual s attaimet of occupatioal skills eeded to successfully perform i the workplace ad advace withi a occupatio or career, as well as its stackability, portability, ad recogitio by employers ad idustries, it is awarded by several of the differet types of istitutios detailed i the US DOL TEGL 15-10 report. ACT Policy Brief: Defiig Credetials for the Public Workforce System 6

Various state educatioal agecies ad state agecies resposible for admiisterig vocatio ad techical educatio withi the state award their state Career Readiess Certificates (CRC) based o the NCRC framework. For example, the Oklahoma Career Readiess Certificate (OKCRC) is awarded by the Oklahoma Departmet of Career ad Techology Educatio, while Florida s Departmet of Educatio awards Florida s Ready to Work Certificate. Differet commuity colleges, proprietary schools, ad other istitutios of higher educatio award the NCRC or a state CRC as a credetial i their occupatio-based certificate programs. For example, Hutchiso Commuity College awards the NCRC ad a Kasas WorkReady Certificate to studets at the completio of their degree or certificate program. 23 Other istitutios of higher educatio usig the NCRC or a state CRC iclude Teessee Techology Ceters (govered by the Teessee Board of Regets). 24 Te Job Corps ceters, i six states (ad Puerto Rico), also award/issue the NCRC (or a state CRC certificate based o the NCRC framework) to studets o their path to receivig a occupatio-specific credetial. US DOL otes that accreditatio by a idepedet quality review body is a valuable attribute, but at preset, the majority of certai types of credetials are ot accredited. 25 Each of these attributes ad a descriptio of how the NCRC meets each defiitio are icluded below: Idustry Recogized As part of icreasig the value of credetials, the US DOL recommeds that state ad local workforce agecies work with local ad regioal employers aroud idetificatio of i-demad credetials... (which) may ivolve developig or customizig competecy models. 26 The NCRC has bee explicitly edorsed as a foudatioal ad career readiess credetial by three atioal idustry orgaizatios: the Natioal Associatio of Maufacturers (NAM), the Natioal Ceter for Costructio Educatio ad Research (NCCER), ad the Ceter for Eergy Workforce Developmet 27, 28, 29 (CEWD). While NCCER uses the NCRC as a stackable credetial for foudatioal skills, both NAM ad CEWD use the NCRC Plus as the credetial to verify competecies i the foudatioal tier of their respective idustry competecy models, which were joitly developed with the US DOL. 30 Itegratio of the NCRC i Career Pathways & Competecy Models The NCRC meets three of the four attributes of educatioal ad workforce credetials, as defied by the US DOL, that stregthe the value of credetials, i that it is idustry recogized, stackable, ad portable. Although the NCRC is ot accredited, the Stackable To address the decliig rates of credetial completio by workforce participats ad to ecourage overall postsecodary credetial attaimet, the US DOL recommeds that state ad local workforce agecies ecourage traiig providers to modularize curricula ito chuked curriculum ad ito smaller uits each of which is stackable ad ACT Policy Brief: Defiig Credetials for the Public Workforce System 7

liked to other modules that culmiate i a idustry-recogized credetial. 31 The US DOL further defies a credetial as stackable whe it is part of a sequece of credetials that ca be accumulated over time ad move a idividual alog a career pathway or up a career ladder. 32 As previously metioed, three atioal idustry orgaizatios the NAM, the NCCER, ad the CEWD each formally edorse the NCRC ad iclude it i their systems of stackable idustry credetials. Each of the three orgaizatios recogizes the NCRC as a credetial that verifies the essetial competecies that ca move a idividual alog a career pathway or ladder i their respective idustry sector. Portable The US DOL defies a credetial as portable whe it is recogized ad accepted as verifyig the qualificatios of a idividual i other settigs either i other geographic areas, at other educatioal istitutios, or by other idustries or employig compaies. 33 The NCRC meets the defiitio of a portable credetial, i that it is accepted ad recogized i may geographic areas (42 states have a statewide or regioal program uder way) ad idustries (NAM, NCCER, ad CEWD). Accredited Although the US DOL icludes the attribute of accreditatio as valuable to a credetial, it ackowledges that at preset, the majority of certai types of credetials are ot accredited. 34 Furthermore, the US DOL otes that accreditatio exists i the realm of persoel certificatio but is less commo ad that idustry-recogized, portable, ad stackable credetials provide a valuable retur o ivestmet for workforce system customers, because they allow customers to work toward both short- ad log-term employmet ad career goals. 35 As the NCRC has already bee show i this paper to meet the US DOL defiitios for idustry recogized, portable, ad stackable, it follows that the NCRC provides a value-added retur o ivestmet for workforce stakeholders ad customers as described by the US DOL. Coclusio This paper has outlied the may ways that the NCRC meets the curret defiitio of a value-added ad idustry-recogized credetial as defied by the US DOL. Although the US DOL defiitio of credetial is used to clarify allowable fudig of credetials for WIA Title I programs, it should be oted that the NCRC as a credetial ca be fuded by states via other federal ad state programs. States may use other programs such as Wager-Peyser, WIA 15% Goveror s Discretioary, Trade Adjustmet Assistace, ad WIA Title II fudig to implemet the NCRC as part of a system of stackable credetials for ay career path withi a overall competecy model. By usig the NCRC, educatio ad workforce stakeholders ca provide studets ad job seekers with a idustry-recogized ad value-added career readiess credetial that will ot oly assist them with embarkig o a career path, but also prepare them to advace ad succeed i a lifetime of career choices. ACT Policy Brief: Defiig Credetials for the Public Workforce System 8

Notes 1. Carevale, A. P., Smith, N., & Strohl, J. Help Wated: Projectios of Jobs ad Educatio Requiremets Through 2018, Georgetow Uiversity Ceter o Educatio ad the Workforce, Jue 2010. 2. US Departmet of Labor (US DOL) Employmet ad Traiig Admiistratio. Icreasig Credetial, Degree, ad Certificate Attaimet by Participats of the Public Workforce System, Traiig ad Employmet Guidace Letter, (TEGL) 15-10, p. 6-7. 3. Kapp, L. G. & Naughto, J. Certificate or Certificatio? That is the Questio. Traiig + Developmet, November 2010, p. 52-60. 4. Complete College America. (2010). Certificates Cout: A Aalysis of Sub-baccalaureate Certificates, December 2010. 5. US DOL TEGL 15-10. 6. US DOL Employmet ad Traiig Admiistratio. Competecy Models: A Review of the Literature ad the Role of the Employmet ad Traiig Admiistratio, Jauary 2008. 7. US DOL Competecy Model Clearighouse, http://www.careeroestop.org/competecymodel/. 8. Ibid. 9. ACT. Workforce Developmet Divisio Research, 2011. 10. US DOL Employmet ad Traiig Admiistratio. Itroductio to the Trade Adjustmet Assistace Commuity College ad Career Traiig Program, US DOL CFDA 17.282, 2010. 11. Complete College America. Certificates Cout: A Aalysis of Sub-baccalaureate Certificates, December 2010. 12. US DOL TEGL 15-10. 13. Carevale, A. P. & Desrochers, D. M. Help Wated Credetials Required: Commuity Colleges i the Kowledge Ecoomy, America Associatio of Commuity Colleges, 2001. 14. US DOL TEGL 15-10, Attachmet 2, p. 6. 15. ACT. Natioal Career Readiess Certificate ad WorkKeys Assessmets Techical Bulleti. 16. US DOL Employmet ad Traiig Admiistratio. Competecy Models: A Review of the Literature ad the Role of the Employmet ad Traiig Admiistratio, Jauary 2008. 17. Ibid. 18. ACT. Natioal Career Readiess Certificate ad WorkKeys Assessmets Techical Bulleti, 2010. 19. O*Net & US DOL. Testig ad Assessmet: A Employer s Guide to Good Practices, 2000. 20. US DOL Employmet ad Traiig Admiistratio. Competecy Models: A Review of the Literature ad the Role of the Employmet ad Traiig Admiistratio, Jauary 2008. 21. Complete College America. Certificates Cout: A Aalysis of Sub-baccalaureate Certificates, December 2010. 22. US DOL TEGL 15-10, Attachmet 2, p. 6. 23. ACT. WorkKeys Gives College Graduates a Edge i Tight Job Market, ACT s Activity Publicatio, 2009, http://www.act.org/activity/autum2009/workkeys.html. 24. ACT. Teessee Techology Ceters Award Natioal Career Readiess Certificates to Program Graduates, 2010, http://www.act.org/workforce/case/teessee.html. 25. Ibid. 26. US DOL TEGL 15-10, p. 14. 27. Natioal Associatio of Maufacturers. About Stackable Credetials: The Natioal Associatio of Maufacturers Edorsed Skills Certificatio System, 2010, http://istitute.am.org/page/edu_workforce_skills_ cert_atioal_tools. 28. Natioal Ceter for Costructio Educatio ad Research, http://www.ccer.org/. 29. Ceter for Eergy Workforce Developmet. Credetialig: How Much Do You Really Kow About It?, Get Ito Eergy Update (40), October 2010, http://www.cewd.org/ewsletter/cewd%20 Newsletter%20Oct2010.pdf. 30. US DOL Competecy Model Clearighouse, http://www.careeroestop.org/competecymodel/. 31. US DOL TEGL 15-10, p. 11-12. 32. US DOL TEGL 15-10, Attachmet 2, p. 6. 33. Ibid, p. 7. 34. Ibid, p. 6. 35. Ibid, p. 7. ACT Policy Brief: Defiig Credetials for the Public Workforce System *041032110* Rev 1