Health Careers Collaborative of Greater Cincinnati. Return on Investment Webinar December 6, 2011. HCC Guiding Principles Job creation & advancement for low income adults that meet employer needs Mapping career pathways within sectors which are important to region’s economic growth
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Health Careers Collaborative of Greater Cincinnati • Return on Investment Webinar • December 6, 2011
HCC Guiding Principles • Job creation & advancement for low income adults that meet employer needs • Mapping career pathways within sectors which are important to region’s economic growth • Commitment to systemic & sustainable change within and across institutions
Over 3,000 Credentials for Incumbents and Jobseekers • (since 2007) • 200 + Associate Degree cohort students in Allied Health & Nursing. • HCC Associate degree grads average GPA = 3.25 • 27 Nursing Grads to date; first Allied Health grad in 2011; 98% continuing for Bachelor’s
Career Literacy & Pathways to Employment • Comprehensive system of intake, assessment, guidance and planning prior to formal academic work • Innovative remediation and readiness supports • Completion Advisors, Job Coaches, Retention Specialists • Employer Engagement & Job Placement
Pathway Advisors & Employer-based Job Coaches • School At Work academic & career prep • Pre-pathway assessments & readiness • Key Train & Work Keys (Great Oaks & CBO’s) • National Career Readiness Certificate & Profile Plus Assessment for “Fit” & “Talent” (Great Oaks, CSTCC, CBO’s) • Pathway Expansion
Benefits: Employer Perspective • Program Return on Investment • Stewardship of employer tuition budgets • Overall 15% ROI (tuition plus turnover, re-training, productivity costs) • Enhancement of existing educational partnerships • Dynamic support of current and projected workforce needs • Recognition vehicle for high performers seeking career pathway opportunities • Supports a culture of employee engagement
Rationale for ROI Study • Intuitively knew we were doing work beneficial to employers • Our numbers were telling the story of individuals, but not employers • Have an opportunity to make the case that serving frontline workers is beneficial to employers
Why ROI and not Business Value? • Easily recognizable term • Even though there are many non-fiscal benefits, ROI drives business decisions • There are many initiatives with non-fiscal benefits; we wanted to make ours stand out from other initiatives
Project Concept (Benefits – Costs) • Analysis Outline • HCC has two tiers of training • Short-term certificate • Long-term associate degree • One large employer provided data • Short-term participants N=525 • Long-term participants N=90 • Timeframe – 2005 through 2013, expected completion of currently enrolled cohorts • Matched comparison group – participants relative to incumbents in similar occupations hired at similar times • Annual calculation of costs and benefits based on number of individuals in each cohort and stage of progress Basic Formula = Investment
Factors Used Factors used were principally determined by the ability to collect data and ability to relate costs and benefits directly to the program.
ROI Contributors – Long Term • The two largest costs for employers are tuition (~$12,566 per completer) and the cost of filling the prior position following promotion (~$9,000 per completer) • The two largest benefits for employers are reduced cost of filling new position (~$24,438 per completer) and reduced turnover while in program (~$2,214 per completer)
ROI Contributors – Short Term • Employers pay no tuition (WIA, scholarships or private pay) • The program costs are due to a slightly higher rate of absenteeism and administrative costs • The two largest benefits for employers are reduced recruitment cost of filling new positions and reduced turnover while in program
Non-monetized benefits • Increasing diversity of staff • Providing advancement opportunities for staff • Improved staff morale • Fulfillment of the community service mission of the hospital
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