On-the-Job Training (OJT) Resource Guide: Best Practices and Misconceptions, Study Guides, Projects, Research of Business Management and Analysis

Download On-the-Job Training (OJT) Resource Guide: Best Practices and Misconceptions and more Study Guides, Projects, Research Business Management and Analysis in PDF only on Docsity! JUNE 2015 Strategies for Implementing OJT Simply and Effectively An On-the-Job Training Brief and Resource Guide U.S. Department of Labor, Employment and Training Administration Prepared through a contract with Jobs for the Future OJT Brief and Resource Guide 2   Jobs for the Future works with our partners to design and drive the adoption of education and career pathways leading from college readiness to career advancement for those struggling to succeed in today’s economy. www.jff.org This project has been funded with Federal funds from the U.S. Department of Labor, Employment and Training Administration under Contract Number DOLQ131A22098 DOL- ETA-14-U-00011. The contents of this publication do not necessarily reflect the views or policies of the Department of Labor, nor does mention of trade names, commercial products, or organizations imply endorsement of same by the U.S. Government. Acknowledgments Jobs for the Future (JFF) thanks Region VI of the U.S. Department of Labor’s Employment and Training Administration for their support and guidance on this project, with special thanks to Region VI’s Bryan Rogers for his leadership on this effort. JFF expresses appreciation to the principal author of this brief and resource guide, David Altstadt, Principal of David Altstadt Consulting, LLC. Maria Flynn, Thomas Hooper, and Geri Scott of Jobs for the Future provided direction and feedback on this guide. JFF also would like to thank the following workforce development professionals who informed research findings: Dean Jones, Greenville County Workforce Investment Board (South Carolina); Michael Gritton, Kentuckiana Works (Kentucky); Amanda Duncan, The Workforce Alliance of South Central Kansas (Kansas); Debra Crowder, South Central Workforce Investment Board (Virginia); Rick Beasley, CareerSource South Florida (Florida); Jovo Potkonjak, Milwaukee Area Workforce Investment Board (Wisconsin); Clyde McQueen, Full Employment Council (Missouri); Dawn Karber, Spokane Area Workforce Development Council (Washington); Robert Everett, WorkSource Spokane—WorkSource Affiliate (Washington); Brandon Miller, CFL Workers Assistance Committee (Illinois); Pilar Trejo, Chicago Cook Workforce Partnership (Illinois); William Thompson, Westmoreland-Fayette Workforce Investment Board (Pennsylvania); LeAnn Bergman and John Evans, Private Industry Council of Westmoreland/Fayette (Pennsylvania); Sue Thompson and Kristina Payne, Lane Workforce Partnership (Oregon); and June O’Dell and Linda Fitzgerald, Workforce Investment Board of Southeast Missouri (Missouri). OJT Brief and Resource Guide 5 are other Federal and state grants that fund OJT and have provisions similar to WIA and WIOA OJT. Although some of those other Federal and state grants are referenced here when leveraged by local workforce areas, this document focuses on OJT as funded through WIA and WIOA formula funds. OJT Brief and Resource Guide 6 PART I: OVERVIEW In utilizing On-the-Job Training as a strategy for training and employing clients and serving businesses, it is important for Local WDBs, AJC operators, and other affiliated service providers to clearly understand the intended purposes of OJT, its rules, roles, and responsibilities. Having a better understanding of OJT can lead to more effective utilization of OJT, enhanced business engagement, and ultimately stronger outcomes for both businesses and clients. I.A Intended Purpose of On-the-Job Training OJT is: • Among the menu of business services that Local WDBs can utilize to address the critical workforce needs of local businesses while helping clients improve their skills and attain and retain quality employment. • A form of work-based training provided to an eligible WIOA client (e.g., Adult, Dislocated Worker, or Youth) upon entry into employment and while engaged in paid work. Under certain conditions, an incumbent worker may qualify for OJT (see, I.C Summary of Key OJT Eligibility Requirements). • Delivered by an eligible business, which acts as a training vendor under the terms of a legal contract and approved training plan (see, I.C Summary of Key OJT Eligibility Requirements). • Customized to address specific gaps in the trainee’s knowledge or skills that are inhibiting his or her ability to perform assigned job duties fully and adequately. After accounting for the skill requirements of the specific job and the trainee’s academic and occupational skill level and work experience, an individualized training plan is formulated to identify key competencies that the trainee needs to attain in order to perform the job fully and adequately. • Limited to the time needed to resolve skill gaps and improve job performance and productivity to a satisfactory level. Training time differs by trainee, job, and skill, based on the level of skill deficiencies and complexity of skill requirements. One common feature of the training plan is to attribute a particular number of training hours or percentage of training funds to resolving a particular skill deficiency. Although WIOA does not set specific limits on formula funds, other Federal monies (such as National Emergency Grants) and some state and Local WDB policies establish guidance or prescribed caps on the amount of time and/or funds that may be spent on OJT. OJT Brief and Resource Guide 7 • A resource for defraying the extraordinary costs of training and supervising the trainee. OJT funds are disbursed to a business in the form of a wage reimbursement. Reimbursement rates differ by funding source, but generally go up to 50 percent of wages during the designated training period (under DW NEG grants, reimbursement can rise up to 90 percent of wages). New under WIOA, reimbursement may be increased up to 75 percent of wages under certain circumstances (see I.D Top Five Changes under WIOA). • Adaptable to a wide range of occupations and skill needs. OJT can support skill building in a whole host of occupations, from entry-level to highly skilled. Regardless of the position, there is almost always some skill that can be acquired or enhanced through OJT. • An effective strategy for (re)employing a diverse array of WIOA clients. OJT can provide an entry point into a particular industry for a low-skilled adult or older youth lacking prior work experience, as well as a re-entry point for a dislocated worker who needs to close a specific skills gap in order to continue along his/her career path. OJT can support rapid re-employment of individuals affected by mass layoffs and can also help avert layoffs when technological or production enhancements change skill requirements. A recent study found that OJT participants were more likely to be re-employed than WIA clients who did not receive training or who received other forms of occupational training.1 I.B Common Misperceptions of On-the-Job Training OJT is: • NOT a “one-size-fits-all” training program: Just as no two people share the same skills, experiences, and career goals, and, generally, no two jobs are exactly alike even within the same occupational area, each On-the-Job Training plan must be unique and tailored to the specific training needs of the trainee and should not mirror the hours and skills of past training plans developed for the same business or for the same occupation. • NOT a work experience program: On the first day of employment, an OJT trainee should be able to contribute productively at work while engaged in training to acquire or 1 Park, Jooyoun. 2011 Does Occupational Training by the Trade Adjustment Assistance Program Really Help Reemployment? Success Measured as Matching. Washington, DC: U.S. Department of Labor, Employment and Training Administration. OJT Brief and Resource Guide 10 • Has laid-off employees in the United States and is in the process of relocating to a new locale. A business may qualify for OJT assistance after a 120-day waiting period following relocation. • Will displace/partially displace incumbent workers with OJT trainees. I.D Top Five Changes under WIOA The passage of WIOA provides a good opportunity for Local WDBs, AJC operators, and affiliated service providers to reconsider their use of On-the-Job Training. Some local areas have been hesitant to use OJT for a variety of reasons. However, a number of aspects of WIOA may now make OJT a more attractive training strategy: 1. No prescribed sequence of service for qualifying for or engaging in OJT: WIOA bundles core and intensive services into the new category of career services and eliminates the WIA requirement that clients receive at least one intensive service (now known as individualized career services) prior to enrolling in OJT or other forms of training. Moreover, under WIOA, service providers may approve training (including OJT) for an individual on the basis that he/she would otherwise be unlikely to achieve self-sufficiency—rather than having to demonstrate his/her inability to achieve self- sufficiency (e.g., through an exhaustive job search and after the receipt of career counseling). Furthermore, under WIOA, local areas must prioritize WIOA Adult-funded career and training services to public assistance recipients as well as other low-income individuals and individuals with deficiencies with basic skills. 2. WIOA authorizes a Governor or Local WDB to increase reimbursement up to 75 percent, upon consideration of the following circumstances—including the characteristics of the participant, the size of the business, the quality of business-provided training and advancement opportunities—or other factors, such as the number of employees participating in OJT, relation of the training to the competitiveness of a participant, and wage/benefit levels during and upon completion of training. Based on the criteria, above, enhanced reimbursement rates could be ideal for hard-to-serve clients, small businesses, and career pathway programs. 3. WIOA’s new performance measures align well with the outcomes of effective OJT contracts. WIOA establishes a new set of common measures for Title I, II, III, and IV programs: Retention of unsubsidized employment after second and fourth quarters, median earnings of participants in unsubsidized employment after the second quarter, effectiveness in serving businesses, and attainment of recognized secondary or postsecondary credential if, and only if, the participant enters or retains employment or OJT Brief and Resource Guide 11 continues education or training leading to a recognized credential within one year of exit. OJT is particularly well-positioned to help local areas satisfy the new measures on job retention and effective service to businesses, given its focus on placing individuals into employment, addressing the skilled workforce needs of businesses, and encouraging the retention of successful trainees. Moreover, utilizing OJT to re-employ experienced, skilled dislocated workers in high-skilled, high-wage jobs can help boost overall average earnings for local workforce areas. Finally, OJT could aid successful exits of participants engaged in secondary or postsecondary programs, if service providers couple an Individual Training Account (ITA) with an OJT to provide job placements to credential completers. Doing so would help individuals augment classroom-based learning with practical workplace skills and experiences. 4. WIOA encourages training that focuses on high-demand jobs and industries. Local WDBs and AJC Operators can target On-the-Job Training placements to high-demand fields. Furthermore, WIOA requires Local WDBs to develop career pathways to postsecondary credentials and employment in in-demand occupations. Placing those who successfully complete ITA-funded training into an OJT can help support client progression along these pathways. 5. WIOA promotes linkage to apprenticeship: WIOA clarifies that an OJT contract may be made with a Registered Apprenticeship sponsor to support the OJT portion of apprenticeship training for WIOA-eligible apprentices. WIOA also clarifies that local areas may use ITA funds to support the related technical instruction component of Registered Apprenticeships. Depending on the length of the Registered Apprenticeship and state/local OJT policies, these funds may cover some or all of apprenticeship training. Local areas interested in linking On-the-Job Training with apprenticeship should consider how the length of these programs align with performance measures, and take steps to help fully account for their progress. For example, Registered Apprenticeship programs often last longer than an OJT, and in those cases Local WDBs should work with the Registered Apprenticeship sponsor to explore opportunities to build interim apprenticeship credentials that align with the conclusion of the OJT training period and/or use of ITA funds for related technical instruction. OJT Brief and Resource Guide 12 PART II: BENEFITS OF OJT Employers, individuals, Local WDBs, AJCs, and service providers can all realize strong benefits from utilizing OJT. Local WDBs, AJCs, and service providers may wish to review and augment this list of benefits when pitching OJT to businesses and to partners. II.A Benefits to Business • Ensure new hires are trained to the desired specifications (e.g., workplace/job procedures and equipment) of the job. • Widen pool of job-ready talent worthy of hiring, despite skill gaps: On-the-Job Training has been successfully used by businesses to hire candidates who lacked specified technical skills, but possessed strong interpersonal or other employability skills and prior work experience. • Build skilled workforce, increasing productivity and capacity to grow business and create more jobs. • Mitigate the inherent risks and training costs associated with hiring a new employee. • Minimize turnover and associated costs of recruiting, hiring, and training new employees. • When local hiring provisions apply on public projects, OJT can provide bidders an approach to ensure compliance (and lower the overall cost of the bid) if the local labor pool has skill gaps that will require training on the job. • Provide a workforce solution to incentivize economic development/expansion in a region. • Avert layoffs by up-skilling current employees to meet new job specifications due to technological change, introduction of new products, etc. II.B Benefits to Clients • Improve likelihood of retaining employment long term. By resolving key skill gaps at the onset of employment, OJT trainees are likely to improve their job performance and satisfaction and put themselves into a better position to obtain higher wages and job promotions—all of which support long-term job retention. • Alternative path to skill building and employment for individuals uncomfortable or unlikely to succeed in a traditional classroom-training program. OJT Brief and Resource Guide 15 PART III. SOLUTIONS TO COMMON ON-THE-JOB TRAINING CHALLENGES Despite the clear benefits of OJT to businesses, clients, and local workforce areas, challenges can arise to curb the appeal of the program and weaken its success. This section identifies a number of common challenges and suggests potential solutions, primarily identified by Local WDBs and service providers contacted for this research. The challenges and solutions focus on steps that Local WDBs, AJCs, and service providers can take to implement OJT simply and effectively, as well as to support other key goals in WIOA, such as support for career pathways. Solutions may be customized or adapted based on the approach used for implementing OJT in individual local areas. Challenges Potential Solutions Lack of staff capacity to identify business targets for OJT • Cross-train employment services staff (e.g., Wagner-Peyser staff) and other partners (e.g., economic development agency staff) on an OJT sales pitch when they are promoting a menu of business and economic development services • Empower jobseekers to include OJT as a part of their self- initiated job searches. Train them on behavioral interviewing techniques, in which they make the case on the value they would bring to the business, despite their skill gaps. They can offer OJT as a strategy for filling these gaps. Ineffective, inefficient efforts to market OJT to businesses • Cultivate business relationships through existing and potential partners, including economic development agencies, industry associations, sector partnerships, and small business associations. • Conduct outreach to businesses through established networks: (1) regional workforce development initiatives, (2) economic development incentive award recipients, or (3) winners of competitive bids for public projects in which local hiring ordinances or community benefit agreements exist. • Leverage rapid response activities to promote OJTs to both businesses and workers. • Focus on small businesses. Unlike larger businesses that have significant human resource personnel and training budgets, small OJT Brief and Resource Guide 16 businesses have greater needs for recruiting and training assistance. AJCs can help them write job descriptions and also recruit and screen jobseekers to fill those positions. AJCs can then offer On-the-Job Training for WIOA-eligible job applicants with skill gaps. Lastly, OJT is a key resource for small businesses to defray the cost of training new hires. • Consider establishing a policy that mandates that an employer utilize “first-tier” business services before undertaking OJT. First-tier business services may include posting job openings on a state job bank or conducting hiring events or candidate screening at the AJC. Sequencing business services is the best way to ensure businesses consider hiring clients who do not (or should not) need an OJT to qualify for a specified job opening. • Actively promote OJT as a second-tier service to businesses already utilizing other business services. The benefit of this approach is the AJC has already proven its value to and conducted some preliminary vetting of the business. Moreover, the business is already accustomed to the paperwork requirements of public workforce system. Business perception that OJT is bureaucratic government program Simplify and streamline documentation and reporting for businesses: • Take on as much of the paperwork as feasible—including the formulation of job descriptions as well as training plans that meet the specifications of businesses and skill/training requirements of individual participants. • Use a short checklist to review OJT legal obligations with businesses. • Reduce the length of the OJT contract to 2-5 pages, putting required assurances in fine print. • Utilize a master training agreement and seek signatures annually, so Local WDBs, AJCs, and service providers can act quickly when new OJT opportunities arise. Then, all that is needed is to append new training plans to the existing training agreement, rather than initiating a new one for each new trainee. When approving a new agreement for the next program year, simply inquire if anything needs to be updated, rather than OJT Brief and Resource Guide 17 reviewing all contractual information all over again. A simple renewal process will increase the likelihood that businesses will remain active OJT “vendors” even when they do not foresee immediate OJT needs. • Whenever possible, do not repeat the same legal assurances or requirements in multiple forms, thereby reducing length and duplication of paperwork for businesses. • Reduce frequency of wage reimbursements, which require documentation of payroll expenses and training progress at each interval. Challenges Potential Solutions Business perception that OJT is a government effort to incentivize hiring under-qualified jobseekers • Enhance job readiness and baseline skills of clients (e.g., through boot camps, initial classroom training) enrolled in WIOA services or partner programs, thereby mitigating widespread perception (or reality) of hard-to-serve clients. • Feature the availability of well-educated and experienced dislocated workers who just need a “skills brush-up.” • Be intentional in promoting OJT to a wide range of clients with differing skills and work experiences. • Be transparent regarding the skill gaps of clients referred to businesses for consideration of OJT placements. • Be clear that businesses have the final say on whom they hire for OJT placements. • Utilize an enhanced reimbursement rate for clients who need increased training to retain full-time employment. • Do not employ a “retention-based” reimbursement policy, as it does not make practical business sense for a business to retain a poor-performing employee they would otherwise terminate. • Share return-on-investment case studies of a wide range of successful OJT trainees with businesses, from the long-term OJT Brief and Resource Guide 20 cross-referenced to O*NET Online, to provide a starting point when deciphering required skills for new jobs. • Draw on prior assessments and business observations from applicant interviews to identify gaps in key job-related competencies—which forms the basis of the OJT training plan. • Utilize O*NET SVP codes to estimate an appropriate number of overall training hours and training budget. Work with the business to parse out training hours and budget by core competency. • Minimize the length and detail of the training plan to the essential elements and competencies to be attained. There is no need for detailed descriptions of the pedagogy that businesses/trainers will use to instruct trainees on key competencies. Focus on the skills and competencies to be attained rather than the manner in which skills will be developed. • Conduct a site visit during the training period to gather feedback from the trainee and business on skills development progression. Modify the plan if needed to decrease or increase training hours for a particular competency, within the overall training budget. Note that OJT training funds may not cover all hours needed to complete training for a particular competency. Limited training resources to prioritize and invest in OJT • Set a goal or mandate for a certain percentage of available training funds to be used for OJT (as opposed to ITAs) • Actively pursue other state and Federal grants to help pay for OJT (e.g., NEG) and staff capacity to administer OJT. These additional resources can help supplement the impact of a local workforce area’s OJT funded through formula funds. • If necessary, cap the amount of time/funds for individual OJT contracts to increase the number of clients and businesses impacted by OJT funds. • In capping OJT, utilize it as a partial reimbursement for training rather than the equivalent of 50% of wages during the entire training period. OJT Brief and Resource Guide 21 Incorporating OJT into career pathways strategies • Link classroom instruction and OJT as an overall skill building strategy. This ensures the most appropriate strategy (classroom vs. work-based learning) addresses clients specific skill needs, and can potentially reduce the length of time needed for OJT. • Blend funding sources, including ITAs, Pell grants, OJT, TANF, and other Federal and state grants to support participant progression along a career pathway. • Link OJT and Registered Apprenticeship programs. • Add advanced skills in OJT contracts that would prepare individuals for wage increase/promotion. Focus OJT on high- growth sectors and higher wages jobs for OJT placements. Using O*NET to Support On-the-Job Training O*NET OnLine can help service providers determine whether On-the-Job Training is appropriate for a given occupation and for the particular skills and experiences of a client. OJT contracts generally will not be appropriate for occupations listed in Job Zone 1 on O*NET OnLine because these occupations typically require little or no preparation. On the other hand, service providers may find it too difficult/unrealistic to execute OJT contracts for upper-level occupations listed in Job Zone 5 because these positions generally require a graduate or advanced degree (see O*NET Job Zones at https://www.onetonline.org/help/online/zones). In determining the feasibility and suitability of OJT for any particular occupation, the assessment must be based on the skills and qualifications that the specific client already holds or would need to attain through OJT. O*NET OnLine can provide guidance in making such determinations. O*NET categorizes occupations by the length of time it generally takes to master occupational competencies, using a scale of 1 (short demonstration only) to 9 (more than 10 years) in specific vocational preparation (see O*NET SVP codes at https://www.onetonline.org/help/online/svp). For example, a three-month OJT training plan would be suitable for occupations in SVP Code #5 (requiring more than six months but less than a year of preparation), if a trainee entered the job with three to six months of prior vocational preparation. OJT Brief and Resource Guide 22 PART IV. BRIEF PROFILES OF ON-THE-JOB TRAINING IN ACTION Based on recommendations made by ETA Regional Offices, JFF selected five Local WDBs (along with their affiliated service providers) to highlight innovative and effective practices: 1. Spokane Area Workforce Development Council, Washington 2. The Workforce Investment Board of Southeast Missouri, Missouri 3. Lane Workforce Partnership, Oregon 4. Westmoreland—Fayette Workforce Investment Board, Pennsylvania 5. Chicago Cook Workforce Partnership, Illinois Streamlined Paperwork Each Local WDB has taken strides to streamline and simplify paperwork for businesses. The appendix highlights: Lane’s business checklist, which simplifies the process of determining business eligibility; Spokane’s master worksite agreement, which contains essential business information and assurances that remain in effect for all OJT training plans developed over the course of a program year; Chicago Cook Workforce Partnership’s excel worksheet, which helps to automate the formation of a training plan; Lane and Spokane’s training plan forms; and Spokane’s OJT evaluation form. Several sites fund OJT through multiple Federal and/or state sources (WIOA/WIA formula funds, NEG and H-1B grants, and state-specific grants) and have taken strides whenever feasible to ensure that policies and forms are consistent. Staff and Outreach Many of these Local WDBs have funded dedicated staff to help businesses walk through the process of an OJT contract. They focus mainly on reaching out to small businesses, which benefit greatly from help writing job descriptions, recruiting and screening applicants, assessing skill gaps, and developing and financially supporting a training plan. Many of the highlighted sites focus on OJT trainee recruitment among dislocated workers. Policies Most if not all of the sites have established policies to limit the length and cost of training each individual, ranging from a three-month cap at Westmoreland-Fayette to a six-month cap at