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The New ETA Vision for Rapid Response

This presentation discusses the mission of improving the Rapid Response system throughout the country by promoting consistent, high-quality, timely, and innovative responses to economic transition. It highlights the importance of providing customized, proactive solutions to meet the needs of workers and businesses. The presentation also emphasizes the need for ongoing relationship-building with employers and community stakeholders, knowledge of labor market trends, and strategic planning to anticipate and manage economic transitions. Overall, it presents a solutions-based approach for managing transitions in an evolving economy.

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The New ETA Vision for Rapid Response

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  1. The New ETA Vision for Rapid Response November 2011 • Presented By: • Timothy Theberge, U.S. Department of Labor - ETA • Jeff Ryan, U.S. Department of Labor - ETA

  2. The PROMISEof the Workforce Investment System When you need us most, we will be there. 2

  3. 3 • Our mission is to establish a comprehensive, collaborative effort to improve the Rapid Response system throughout the country by promoting consistent, high quality, timely and innovative responses to economic transition. • We are “America’s Backstop” Why are we here?

  4. March 2011 Rapid Response: Transition Management

  5. What Is Rapid Response? Rapid Response • Required state function under the Workforce Investment Act (WIA); funded by reserving up to 25% of the state’s WIA Dislocated Worker allotment • Provides direct reemployment services and facilitates additional services and resources; carried out by states and local workforce development organizations in partnership with One-Stop Career Centers. • Arranges for the provision of support services such as unemployment insurance, health care, home heating assistance, legal aid, financial advice, and other forms of critical assistance to affected workers and communities 5

  6. Faster engagement = Better results 6 AND…. Rapid Responseis a primary gateway to the workforce system for both dislocated workers and employers 6

  7. Legislative Authorization Sec 665.300 WIA Final Rule (a) Rapid response … “activities necessary to plan and deliver services to enable dislocated workers to transition to new employment as quickly as possible” 7 7 From the Regs…

  8. Timely, consistent and high-quality services to workers and businesses Timely and Consistent Providing the right information and services, when, where and how needed to best serve workers and businesses It does not mean cookie-cutter or one-size fits all solutions High-Quality Proactive, comprehensive solutions that meet the needs of workers and businesses 8 Customized Consistency

  9. March 2011 Rapid Response: It’s not just for layoffs anymore.

  10. Rapid Response is PROACTIVE • Prepared • Delivered through a well-developed service infrastructure • Fully integrated Layoff Aversion strategies • Early Intervention • Engaged with the regional economy including: • Labor • Economic Development • Business Community • Local WIBs & One Stops • Education 10 Don’t wait for WARN…

  11. 11 Solution-Based Approach for Managing Transitions in an Evolving Economy. • Addresses the needs of employers, workers, and community through development of ongoing strategies to ensure long-term economic stability and growth • Employs strategies gained from expertise, perspectives, and efforts of extensive network of partners and stakeholders 11 Solutions-Based Transition Management

  12. 12 It is NOT event-driven; it is a pro-active approach to planning for and managing economic transitions. Rapid Response requires: • Ongoing efforts to build relationships with employers and other community stakeholders • Knowledge of labor market trends and economic forecasts • Strategic planning, data gathering and analysis designed to anticipate, prepare for, and manage economic transition • Understanding workforce assets and needs • Convening, facilitating, and brokering connections, networks, and partners • Planning for and responding to layoffs, minimizing their impacts wherever possible 12 Bend the Curve

  13. 13 Rapid Response Throughout the Business Cycle

  14. March 2011 An orientation does not Rapid Response make. If it does, you’re doing it wrong.

  15. OVERALL PROCESS High Level “Reader’s Digest” Version Tailor Plan Determine & Facilitate Additional Services Employer Contact and/or Layoff Announcement Meet with Employer/ Company Determine Intervention Required Research & Discovery Activation 15 15 Things to Keep On Your Radar • Tracking and Evaluation (Continuous Improvement) • Follow-Up T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E

  16. Rapid Response Flow Chart LWIB - Local Workforce Investment Board NEG - National Emergency Grant OSCC - One-Stop Career Center TRA - Trade Readjustment Act UI - Unemployment Insurance WIB – State Workforce Investment Board

  17. Research and DiscoveryForecasting (identifying indicators) • Networks, non traditional networks, WARN notices, etc. • Look at market, LMI data for area, etc. • Labor, Economic Development, WIBs • GOALS: • Collect with as much relevant information/data as possible before meeting with the employer • Seek opportunities to be proactive and avert or minimize layoffs 17 Research and Discovery

  18. 18 • Importance: • Provides foundation for developing a broad strategic approach • Creates opportunities for being PROACTIVE • Early discovery provides information needed to take appropriate action • Gives insight for targeted outreach & information dissemination • Raising awareness of your Rapid Response services and network of resources encourages participation and information sharing Research and Discovery (cont’d)

  19. 19 • Who Should Be Involved: • ALL relevant information sources, formaland informal • Key Things To Consider: • INFORMATION IS POWER • Get informationOUT so employers & workers are aware of services • Get informationIN to proactively create strategies & services • MUST be able to articulate “What’s in It For Them” & the value proposition • This step is not always in response to a specific event • ALWAYS stay aware of the workforce and economic indicators Research and Discovery (cont’d)

  20. Activation Activation: • Awareness of a pending event • Layoff announcement, WARN, or information provided through partners or early warning mechanism • Assess the Situation • Gather information/facts, prepare materials, contact company and identify potential tactics for layoff aversion, expansion, or layoff minimization (PROACTIVE Vs. Reactive) • Customize strategy for specific event • Begin to tune your response to the customer’s needs and your service strategy • Engage/Connect with local area (WIBs) 20

  21. Activation(cont’d) Importance: • Begins “movement” toward a strategy/solution • Continues information gathering and assessment of the situation with input from other partners (Local WIB, etc.) Who Should Be Involved In Step 2? • WIBs/Local Areas • Sources of information that can “fill in the blanks” regarding information about the employer • Preliminary contacts to key partners 21

  22. Summon your inner Boy Scout: ALWAYS BE PREPARED! Key Things To Consider: • Tools MUST already be in place • “Tools” such as partnerships/a resource network, collateral materials, etc., are necessary for proceeding in a timely and consistent manner 22 Activation(cont’d)

  23. Initial Employer Contact and/or Layoff Announcement Includes: • Contact employer, set up a meeting, etc. • Can be the result of a layoff announcement or a chance to offer services to a growing or declining company (Proactive) • GOAL: Face-to-face meeting with employer representatives w/decision-making authority Importance: • Relationshipwith employer or employee starts here • Remember, you only have one chance to make a first impression 23

  24. Key Things To Consider: • Preparation is Key • It is ESSENTIAL gather information about employer/company before this step • It Can Be Challenging • Employer may not want to meet • Presenting a solid value proposition and articulating “What’s In It for Them” is critical • “Do or Die” • Instilling trust with the employees and employers from the start is a MUST 24 Initial Employer Contact and/or Layoff Announcement (cont’d)

  25. Meeting with Employer/Company Includes: • Great Rapid Response starts with asking one question: “What’s happening in your company?” • Leverage your partnerships • This is where layoff aversion, Trade, NEG, and more come into play • Coordinate with union/labor representatives • Explore layoff aversion and minimization possibilities 25

  26. Meeting with Employer/Company (cont’d) • Determine and coordinate with partnerships/resources the company already has in place (outplacement firms, etc.) • Determine the severance package and how it may effect UI • Ask about the demographics of the workforce (ex., language barriers, other special needs) 26

  27. Importance: • An opportunity to demonstrate your value to the employer or employee • Offers insight on other potential partners/resources that can be used to provide services to the employer/ employees • Further develops the relationship with the employer 27 Meeting with Employer/Company (cont’d)

  28. Key Things To Consider: • Investigate/explore how the pending layoff or plant closure will affect other outside companies and/or other facilities that they own in other locations • Again, a PROACTIVEapproach can result in the acquisition of valuable information • Tracking and Evaluation are critical here (tracking company information, who you meet with, how many employees are served, etc.) 28 Meeting with Employer/Company (cont’d)

  29. Determine Intervention Required: Compile Information and Notify System Partners Includes: • Establish working partnership with the company/union • Develop 1.)Transition Planor2.) Layoff Aversion Plan • Plans need to remain fluid and flexible • Determine other workforce programs that may need to be notified/involved (Trade, NEG, UI, etc.) • Coordinate with Local Area/WIB • Determine funding needs and from where it will come 29

  30. For Transition Plans: • Determine other outside partners to involve (EDA, TAA for Firms, Unions, MEP, etc.) • Conduct a pre-feasibility study • GOAL: Leverage time onsite prior to the layoff to provide as many services as possible (i.e. onsite transition center) 30 Determine Intervention Required: Compile Information and Notify System Partners (cont’d)

  31. For Aversion Plans: • Conduct a pre-feasibility study • ESOPs • (Workshare) • Incumbent Worker Training Programs • Company Matching • Staff Training • And Many More… 31 Determine Intervention Required:Compile Information and Notify System Partners (cont’d)

  32. Importance: • This is where you align your team, strategy, and your plan • Working partnerships are truly established at this step – you become part of their solution • You are assembling the components for your plan Who Should Be Involved? • WIBs, One-Stops, UI, Unions… EVERYONE – all relevant partners* * BEWARE of theEntourage Effectwhen meeting with employers 32 Determine Intervention Required:Compile Information and Notify System Partners (cont’d)

  33. Key Things To Consider: • Leverage as much time as possible prior to the layoff “onsite, on company time” • Seek opportunities to avert or minimize a layoff, i.e., company match, workshare, etc. • GOAL: To walk away from the process with the company as a partner 33 Determine Intervention Required:Compile Information and Notify System Partners (cont’d) * This is a good time to look for company contributions

  34. Tailoring the Plan Includes: • Determine union/employer coordination (Labor/Management Committees, etc.) • Bring other companies into the mix/onsite to match skills • Coordinate with other on-site providers (e.g., outplacement, etc.) 34

  35. For Aversion Plans – coordinate with economic development agencies, UI (Workshare), MEP, & others to provide services • Transition from onsite services to One-Stop Career Center services “Know when the time is right to let go.” 35 Tailoring the Plan(cont’d)

  36. Tailoring the Plan(cont’d) Importance: • Explore every option • Allow for customized solutions – serving the employer/employee’s specific needs Who Should Be Involved: • Again, WIBs, One-Stops, UI, Unions… everyone providing solutions specific to your plan Things To Consider: • GOAL: Develop a “lifelong” partner – a working relationship that continues into the future and remains valuable throughout all stages of the business cycle 36

  37. Determine Additional Services Includes: • “JUST DO IT” • Maintain relationships developed throughout the process - stay in touch, make sure all needs were met, look for new opportunities to work together • Ongoing talent management (throughout the business cycle) Importance: • Cements relationships for future endeavors Things To Consider: • GOAL:Make it so they cannot imagine doing business without you. 37

  38. March 2011 Quality Principles of Rapid Response

  39. 39 10 Quality Principles +1

  40. 10 Quality Principles +1 40

  41. 41 10 Quality Principles +1

  42. 42 10 Quality Principles +1

  43. March 2011 Layoff Aversion 2.0

  44. 44 From TEGL 30-09: • ETA considers a layoff averted when: • 1) a worker’s job is saved with an existing employer that is at risk of downsizing or closing; or • 2) a worker at risk of dislocation transitions to a different job with the same employer or a new job with a different employer and experiences no or a minimal spell of unemployment. Defining Layoff Aversion

  45. 45 • Layoff aversion activities exist as a continuum of potential approaches • Layoff Forecasting/Early Warning Networks • Full layoff aversion (rare) • Pre-feasibility studies, buyouts, ESOPs, etc • Lessening the impact of a layoff (the norm) • Workshare Programs • Company Match (growing employers with layoff employers) • Incumbent Worker Training • On-the-Job Training What is Layoff Aversion?

  46. 46 1 2 * Not currently available in Ohio.

  47. 47 • Skill set analysis mapped to regional economy will result in the identification of career pathways • Short-term training with sufficient notice/awareness of layoff will allow for workers to be trained prior to actual layoff • Real world examples already happening Instant Labor Exchange

  48. Company Match Minimize the impact of the layoffs that are occurring at a particular plant closing or downsizing by placing employees in new jobs prior to layoff Minimize the length of unemployment if not placed prior to layoff Matching the skills of employees who have been notified of a layoff (and not yet laid off) with those of companies that are in need of skilled employees. – Direct Match Masco/Kenworth Express Loan/Equity Trust Training employees and placing them in new careers prior to layoff – Customized Training Polaroid/Bose Avon 48

  49. March 2011 Unemployment Insurance as Workforce Investment

  50. 50 • UI Training Waivers • Allows UI claimants to participate in WIA, TAA and other training programs to improve employability • Additional Benefits during Training (ABT) • Additional, state-funded benefits for individuals in approved training (7 states) • State funds available for training purposes • Usually targeted to incumbent workers • Ohio Department of Development • Workshare (Short-Term Compensation) • Allows employers to retain skilled workers • 21 states; 1 pending • Self-Employment Assistance (SEA) • Allows entrepreneurship training while receiving UI (9 states) UI = Workforce Development

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