Expanding WorkKeys Opportunities in a Challenging Economy

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• Expanding WorkKeys Opportunities in a Challenging
  Economy
• Presented By Dr. Denny Smith
• May 28, 2009

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We Have All Seen the Headlines
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Bureau of Labor Statistics of the U.S. Department
of Labor THE EMPLOYMENT SITUATION FEBRUARY 2009

• In February, job losses were large and widespread
  across nearly all major industry sectors
• Payroll employment declined by 2.6 million a 4
  month period
• Non-farm payroll employment continued to fall
  sharply in February (-651,000)

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Bureau of Labor Statistics of the U.S. Department
of Labor (Continued)

• Unemployment (Household Survey Data)
• The number of unemployed persons increased by
  851,000 to 12.5 million in February.
• Unemployment rate rose from 7.6 to 8.1 percent
• Over the past 12 months,
• The number of unemployed persons has increased by
  about 5 million
• The unemployment rate has risen by 3.3 percentage
  points

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We Have All Seen the Headlines

• Narrowing the focus from national headlines to a
  community

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Decatur-Morgan County Alabama

• Estimated 2008 population
• Decatur 55,233
• Morgan County 117,057
• Over 175 diverse industries in Morgan County
• Total non-agricultural employment 58,100
• Manufacturing 13,000 (22)
• Of the top 25 employers in Morgan County,
  approximately 8 have downsized within the last
  year

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The Decatur Daily 01/23/09

• Nichols Aluminum lays off 5 more employees
• They have laid off employees to cope with the
  recession
• Other industries have cut employees
• Solutia
• United Launch Alliance
• Decatur General Hospital
• 3M
• Cerro Wire
• Wolverine Tube closed it plant during 2008

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The Decatur Daily 02/12/09

• A Casualty of the Economic Downturn
• Decatur Cargill Inc. plant to close its doors
• 100 employees will be looking for work
• The corn-milling plant will close in three or
  four months

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What Happens after the Headlines?

• Where Do We Go From Here?
• What May Happen Next?

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What happens when a plant closes?

• Often, the state is notified of plant closing
• State Assistance is offered
• Employees face many challenges in the beginning
• Unemployment compensation
• Insurance benefits
• New training opportunities
• Many employees tend to be left in a fog

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What happens when a plant closes?

• Transitioning in the workforce
• Gradual downsize of the workforce
• Some employees offered opportunities at other
  facilities
• Employees begin to look for other opportunities

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What Happens after the Headlines?

• BASF Case Study

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BASF Case Study

• The Headline
• BASF Company notifies state it will close
• The Decatur Daily 02/05/09

• Plant is not included in Pittsburgh Paint Glasss
  (PPG) purchase
• 115 Decatur employees to lose jobs
• All employees expected to be gone by the end of
  April, 2009

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Can WorkKeys Help?
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BASF Case Study

• Some companies are choosing to give their
  employees an added benefit
• Company officials meet with college ACT Director
  and discuss
• Benefits of WorkKeys
• Worker credentialing
• Opportunities for those with WorkKeys scores
• Company officials view WorkKeys as beneficial to
  those facing unemployment
• WorkKeys becomes part of their severance package

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How BASF Implemented WorkKeys

• Purchased optional WorkKeys instructional
  curriculum (study guides) from the college
• Offered an assessment preparation course through
  the college
• Preparation study course on Applied Technology
  scheduled
• 39 employees enrolled in the day long class
• No cost to employees

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How BASF Implemented WorkKeys

• Employees have the opportunity to take the
  WorkKeys assessment
• At the companys expense
• Must be completed by the end of April, 2009
• Company requests a Saturday testing session to
  make sure all are given an opportunity for the
  assessment

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Was BASF Investment Successful?

• Several employees have already landed jobs in the
  area without having to relocate
• Other employees were directed to companies who
  use WorkKeys assessments
• Current WorkKeys clients did not have to send
  these new job applicants to the college for
  assessments
• Bottomline- WorkKeys helped to save some workers
  from being unemployed

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Can the BASF Study be Replicated?

• YES!

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Can the BASF Case Study Be Replicated?

• Following the sequence of steps from BASF project
• Plant closings are announced
• State assistance is offered

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Can the BASF Case Study Be Replicated?

• The college schedules meetings with Plant Manager
  or Human Resources Director
• WorkKeys benefits are outlined
• Advantages to company
• Opportunities for displaced workers
• The college offers companies the opportunity to
  assess all displaced employees

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Can the BASF Case Study Be Replicated?

• Companies are offered instructional curriculum
  through the college
• Benefits of WorkKeys preparation classes are
  discussed
• Instructor led WorkKeys preparation courses are
  suggested to company as an additional benefit
• Company determines if a preparation class is
  needed prior to assessments

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Can the BASF Case Study Be Replicated?

• Assessment dates are chosen
• Employees are notified
• Employees are given the opportunity to chose a
  date that minimizes work distractions
• Employees are assessed and made aware of other
  potential employers in the area who are hiring
  and who are utilizing the WorkKeys system

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BASF Case Study Replicated

• Cargill Project

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Cargill Project

• The Headline
• A Casualty of the Economic Downturn
• The Decatur Daily 02/12/09

• Decatur Cargill Inc. plant to close its doors
• 100 employees will be looking for work
• The corn-milling plant will close in three or
  four months

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Cargill Project

• ACT Center representatives meet with Cargill
  Plant Manager and Human Resource Director
• Company decided to offer WorkKeys assessment as a
  benefit in those about to lose their jobs
• Assessment dates are chosen

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Cargill Project

• Instructional WorkKeys classes are offered to
  company
• Employees assessed
• Onsite
• During off-shift schedules
• No work time is lost
• Approximately 45 people assessed through college
• Employee are counseled about
• How WorkKeys system is used by area employers
• How scores can be used for future job
  opportunities
• Another valuable tool, the CRC

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Another Valuable Tool

• The Career Readiness Certificate

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What is the Career Readiness Certificate?

• After evaluating over 16,000 occupations,
  research has indicated that three skills are
  highly important to the majority of jobs in the
  workplace
• Reading
• Math
• Locating information
• Individuals obtaining a minimum WorkKeys score of
  3 in each area earn a Career Readiness Certificate

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What is the Career Readiness Certificate?

• Career Readiness Certificate (CRC) verifies to
  employers that an individual has foundational
  employability skills in Reading, Math, and
  Locating Information
• The CRC is an easily understood, valued
  credential that certifies the attainment of
  workplace skills

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What is the Career Readiness Certificate?

• The CRC is becoming recognized throughout the
  United States.
• CRC success will be determined by Business and
  Industry embracing this concept on a local level

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Advantages of Implementing the Career Readiness
Certificate

• Identifies trainable work ready employees
• Lowers additional training by identifying workers
  with documented skills
• Improves employee morale
• Increases hiring efficiency
• Helps minimize unfair hiring practices

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Advantages of Implementing the Career Readiness
Certificate

• Minimizes lost production time
• Reduces overtime
• Decreases turnover
• Reduces rehiring because employee are more
  qualified on the front end

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How Does the Career Readiness Certificate Expand
WorkKeys?
u

• Employment concerns from private sector include
• Incumbent workers are working longer
• The need to retrain younger workers is greater
  than ever
• Many individuals may lack basic employability
  skills
• Need for employees who have the skills to be
  cross-trained for multiple jobs

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Does this phrase sound familiar

• Why assess with WorkKeys and use the CRC when
  no one is hiring in our area right now?

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Career Center Opportunities

• From a Human Resources perspective
• Downturns will not last forever
• Now is the time to build up the database of
  skilled employees
• Improves companies chances of finding qualified
  employees with a larger worker pool
• Helps prevent employee skill shortage
• Assist industries when boom occurs and everyone
  is trying to find skilled workers (Ex. Temporary
  Services)

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Career Center Opportunities

• Utilize Pre-WorkKeys as an intake tool
• Offer instructional support if needed
• Help get employees back into the workforce as
  soon as possible
• Some may not need instructional support as soon
  as the intake occurs
• Some may lack time to take instructional class
  and need re-enter the job market quickly
• Sometimes cost prohibited to assess twice with
  state funds
• Some may opt to enroll in school utilizing the
  Individual Training Accounts (ITAs)

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Is WorkKeys Really Expensive?Cost vs. Cost

• What if I assess my employees and they go to
  work for one of my competitors?

• What if I dont assess them and they stay?
• Ex. International Diesel

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Is WorkKeys Really Expensive?Cost vs. Cost

• Is it more productive to spend money training a
  new unskilled worker?

• Is our money better spent screening prospective
  employees to determine who is a skilled worker?

• _____________________________________
• Employees without the proper skill sets are
• less productive
• WorkKeys enables employers to screen
• potential employees

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Is WorkKeys Really Expensive?Cost vs. Cost

• Safety increases
• HR Manager discussed how plant had fewer
  accidents during a period when WorkKeys had been
  used vs. when is was not used
• Time saved
• 600 applicants for a job
• Company used WorkKeys scores to screen all of
  those individuals
• Identified who was qualified for the position

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Opportunities To Expand WorkKeys

• Apprenticeship Programs

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Apprenticeship Programs

• Apprentice one who is learning by practical
  experience under skilled workers a trade, art, or
  calling
• Websters Dictionary

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Apprenticeship Programs

• The WorkKeys system provides a method for
  matching apprentices to the jobs that are right
  for them and contributes to their on-the-job
  success.

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Apprenticeship Programs

• Use WorkKeys as a entry tool
• Help apprenticeship programs determine qualified
  applicants
• Beneficial in the area of technical training

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Apprenticeship Programs

• We are able to teach the hands-on portion of
  the training to an individual with a minimum
  skill set. WorkKeys helps us identify those
  individuals who have the required skills, and it
  gives us a baseline from which to begin
  training.
• WorkKeys client with an area school system

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Apprenticeship ProgramsHuntsville City Schools

• The Huntsville, Alabama City Schools maintenance
  department
• Consists of over 120 skilled employees
• Serves approximately 20,000 students
• Covers nearly 50 schools
• Finding qualified workers is especially critical

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Apprenticeship ProgramsHuntsville City Schools

• Huntsville City Schools (HCS) profiled the
  following positions in their maintenance program
• Plumber
• Carpenter
• Electrician

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Apprenticeship ProgramsHuntsville City Schools

• Applicants are referred to college for WorkKeys
  testing as a pre-qualifier for employment
• HCS uses WorkKeys as a pre-qualifier to enter
  apprenticeship program
• Applicants are CRC eligible if minimum scores are
  obtained

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Opportunities To Expand WorkKeys

• Co-op Programs

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Co-op Programs

• Look at the Co-op program for WorkKeys
  opportunities
• New students
• Re-enrolling students
• Individuals seeking retraining or retooling
  (those who may not have attended college)
• Properly used Co-op programs may increase skills
  of future workers

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Co-op Programs

• Benefits of implementing WorkKeys in Co-op
  programs
• Help companies screen potential students up front
  (beginning of Co-op program)
• Employees who were downsized may bring scores
  from career centers
• Co-op participants have opportunity to be
  eligible for Career Readiness Certificate
  provided minimum levels are achieved
• Co-op program may more effectively match students
  with employers

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Co-op Programs

• The Perfect Match
• College technical programs assess students
• Students in technical programs desire on the job
  experience
• Students bring WorkKeys scores to Co-op office
• Co-op office places students with employers who
  utilize WorkKeys
• Student has the chance for permanent employment

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Opportunities To Expand WorkKeys

• Transitioning Programs

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Closing One Chapter and Opening Another

• Just as a student seeks employment or additional
  education, many people transition from one life
  to another

• High school to college
• High school to workforce
• Military to civilian life
• Numerous other life transitions

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High School Career Development

• Administer WorkKeys assessments to high school
  juniors or seniors
• WorkKeys can be used for both college bound and
  non-college bound students
• Credibility may be gained by using WorkKeys for
  all students

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High School Career Development

• Students have a work credential to move directly
  into the workforce
• Many lack work experience directly out of high
  school
• Helps to level the playing field with more
  experienced applicants
• Traditionally, many students return after their
  first semester at a four year university
  uncertain of their future plans
• Some students may become unable to pay for
  college tuition and return home (loss of
  employment by student/parent or other reason)

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Military Transition Programs

• Approximately 12,000 soldiers will be returning
  from Iraq by the end of 2009
• Many are returning from deployments and will be
  looking for jobs in a difficult economy
• Military transition programs will be an active
  area as more soldiers re-enter the workforce

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Military Transition Programs

• Adding WorkKeys will help transition these
  soldiers into the civilian workforce by using the
  same assessments that industries accept
• WorkKeys can be blended with the skill sets that
  the soldiers obtained during their military
  service
• Explore opportunities with military
  suppliers/defense contractors to add WorkKeys
  (Ex. Northrop Grumman and International Diesel)

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Life Transition Programs

• WorkKeys is being piloted along with career
  modules to assist in Life Transition programs
• In Alabama, WorkKeys has been piloted with some
  prison inmates who are less than 120 days from
  release
• Goals of these programs
• Reduce recidivism
• Reduce overcrowding

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Life Transition Programs

• The more skill training an inmate receives the
  less likelihood they will return to prison
• WorkKeys scores may help individuals to enter the
  workforce more quickly
• Save time waiting to test
• Avoid expense of testing
• Program gives some inmates the opportunity to
  earn a Career Readiness Certificate (CRC) while
  in prison

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In closing

• Let the news headlines lead you to new WorkKeys
  opportunities
• Reductions in force
• Plant closings
• Encourage business and industry to incorporate
  WorkKeys and utilize the CRC

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In closing

• Expand WorkKeys by looking at existing programs
• High school students
• Apprenticeship programs
• Co-op Programs
• Career Center
• Consider all groups to be potential WorkKeys
  clients
• Military
• Prison system

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Questions or Comments?

• The ideas expressed within this presentation
  reflect the ideas of the presenter and do not
  necessarily represent the ideas of any
  institution or state agency.

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WorkKeys Opportunities Within Wyoming

• Plastics Rubber Products Manufacturingin
  Wyoming NAICS 326000
• Industries in the Plastics and Rubber Products
  Manufacturing subsector make goods by processing
  plastics materials and raw rubber.
• Information obtained from ANSWERS is your link
  to the most up-to-date Wyoming Labor Market
  Information