www.dol.gov/cfbci
|
October 8, 2008 DOL Home > CFBCI > Making a Difference Through Strategic Business Partnerships |
Making a Difference Through Strategic Business Partnerships A Guide for Faith-Based and Community Organizations Message from Elaine L. Chao, Secretary of Labor "In this booklet, you will find valuable information to help you better understand the business community and local workforce needs and how to establish effective partnerships with local employers. Faith-based and community organizations (FBCO) bring unique assets to the task of assisting individuals looking for training and employment. This is particularly true with hard-to-serve populations who often need long-term, in-depth assistance to find and retain jobs. Research conducted by the U.S. Department of Labor has shown that people with multiple barriers to employment (immigrants, welfare-to-work populations, the disabled, ex-offenders and others) need the kind of effective, holistic care offered by FBCOs. Training and support services, however, are only part of the employment equation. FBCOs working with hard-to-serve populations also need expertise in understanding the needs of businesses and shaping their programs to support those needs. Making a Difference Through Strategic Business Partnerships is designed to help FBCOs become "business-smart" as they design and implement training, employment and support programs that are aligned with existing and future employment opportunities in their communities. We are very proud of the work that the Department of Labor and its Center for Faith-Based and Community Initiatives have done to empower faith-based and community organizations in meeting the employment needs of their communities. I congratulate you on your interest in learning more about how to form effective partnerships with employers in your community. Working together, we can make a real difference in bringing hope and expanding opportunity for all people." Elaine L. Chao, Secretary of Labor Introduction In order to provide jobseekers with effective training and support, service providers, workforce development professionals, and local and state government simultaneously must seek to understand and respond to the needs of local businesses. The nation's Workforce Investment System and One-Stop Career Centers are designed to meet the needs of employers and jobseekers throughout the country. The Workforce System is "demand driven" and led by businesses that invest funding in programs and services to prepare and support people in obtaining and retaining jobs. Within that system, local workforce investment boards create policies to respond both to individuals' needs for training and local businesses' needs for workers. Also, within the Workforce System, One-Stop Career Centers host numerous local, state, and federal employment and training programs and services. The U.S. Department of Labor encourages faith-based and community organizations that are providing job training or supportive services (e.g. childcare, clothing, transportation) to collaborate with the One-Stop Career Center System. For more information about opportunities to partner with the local One-Stop System, please visit our Web site: www.dol.gov/cfbci. In addition to working with your local One-Stop to assist individuals in their search for training and employment, it may be appropriate to create relationships directly with employers or joint partnerships with employers and the One-Stop System. This document will prepare you to understand the challenges businesses face in the 21st century, how you can work with businesses to help place individuals in employment, and how you can make your services relevant to businesses in financial and non-financial partnerships. Table of Contents Key Forces Shaping Work and the Workforce How Your Organization Can Meet Workforce Needs Key Forces Shaping Work and the Workforce Data from the Bureau of Labor Statistics shows that the United States is facing a growing gap between the number of jobs and the available workforce. By 2010, there will only be 158 million people in the labor force to fill an estimated 168 million jobs in the economy.2 This gap will be a result of new job creation as well as worker retirement. And the situation could potentially be much worse: Over the next 30 years, 76 million baby boomers will retire, while there will only be 46 million new workers from Generations X and Y entering the labor force.4 Employers faced with a dwindling workforce will need to reach out to populations that have traditionally been underutilized in the past including welfare recipients, the chronically unemployed, individuals with disabilities, older workers, immigrants, ex-offenders, and those without previous work experience. For example:
The knowledge, skills, and abilities required by many of today's jobs are vastly different than those required for jobs that existed just 20 years ago. Many growth industries, like health care and high-tech manufacturing, have a very difficult time finding qualified employees to meet their needs. Due to continued expansion and growth in these industries, filling positions with qualified candidates will only become more difficult. Additionally, employers in trades, such as electrical and specialty manufacturing, are concerned that their skilled employees are retiring with no younger, trained individuals to take their place. Employers consistently report dissatisfaction with many of the job candidates they see, particularly those for entry-level positions. They feel such individuals lack employability skills and a positive, appropriate attitude toward work. Specifically, what employers want in their employees are:
A common misconception is that the only thing people want out of work is money. Many surveys in recent years indicate otherwise. The results of one such survey, conducted by Rainmaker Thinking, indicate the following among the benefits employees want from their work experience:10
Employers asked about the ideal system for fulfilling their workforce development requirements describe a business model that can meet their needs quickly and efficiently with services tailored specifically to them. When they consider engaging an outside source to help, businesses describe a third party that is responsive, can follow through, and gives a sense that agency staff care about both them and the employees they place. At the core, an employer needs qualified and motivated employees who can contribute to the organization's mission in an effective and efficient manner. Finding and keeping such employees can be a costly proposition for many businesses. Turnover costs estimated to be anywhere from 33% to 250% of annual pay are one area where workforce development assistance can have a positive impact. Costs are incurred in time spent screening applications as well as testing candidates. Employers may receive an overwhelming of resumes in response to job advertisements in the newspaper and through the Internet. When the economy is poor and jobs are scarce, businesses find their pool of applicants, particularly for jobs paying more than minimum wage, includes many who do not meet the advertised position requirements. Businesses waste a great deal of time and resources screening through non-relevant submissions. Additionally, businesses cite the expensive time and resources it takes to train a new employee only to have him/her quit shortly after being hired. They then have to repeat the advertising, screening, hiring and training processes expending yet more time and money. All told, the cost of turnover for a $15,000 per year ($7.50 per hour) job may be anywhere from $5,000 to $37,000.12 How Your Organization Can Meet Workforce Needs Many community and faith-based organizations already work with the clientele businesses need, or offer services employers want. Employers and workers appreciate the expertise FBCOs offer in continued support services. This is critical as individuals transition into the world of work. Here are some examples of FBCOs successfully working with businesses on issues of workforce development.
In summary, what your organization has to offer is a guarantee of a good match between employers and prospective employees as well as ongoing assistance to ensure the match is successful. What to Know When Approaching Businesses Your organization already may know how to partner with others in the community, including government agencies, community-based organizations, and religious institutions. But working with businesses requires a different approach. Here are some things to consider in setting up a relationship with local businesses. To position yourself as a potential partner/provider, your organization must understand the need of a business to remain competitive and profitable. A prospective hiring opportunity for your client must represent a "win" for the business as well as the client. It is not effective to initiate a relationship with a business simply by asking for money. Some business owners might be interested in assisting your organization and your clients on a charitable basis, but the relationship should begin as a mutually beneficial partnership. The business should see any financial commitment they might make as an investment that will yield returns to them over the long term. Within the context of this relationship, businesses will want to know what your organization can offer them, and that your services will be a good value. Marketing Your Services to Businesses There are two parts to successfully marketing to the business sector: understanding the business and knowing what your organization has to offer. You should develop a strategy for approaching local businesses, and this might be built through:
Researching Your Local Job Market No matter what marketing approach you use, it is critical to understand the employment conditions in your area and develop a strategy for tracking changes in the job market. Ask the following questions in researching the local job market:
The local Workforce Investment Board(s) in your area should be your first stop when researching your local labor market. National trend information also is available for current and and expected growth occupations as well as information on pay scales, skills or training required, and advancement potential. Be sure to apply this information to the local context.
Targeting specific businesses or specific industries will allow your organization to respond to a common set of needs. Whether your organization targets and industry or a geographic area your strategy should be the same. First, learn something about the business. Understand the service or product that is delivered, the size of the company particularly the number of employees the type of jobs that are involved, and whether the company is hiring or laying off workers. Second, if you are focused on a particular sector or even a specific type of job, research the industry and the work tasks required to produce the product or service. What job skills are required for the positions available? Is specialized training or credentialing necessary? What is the pay scale and career path? Is it possible for your organization to meet with the human resources department of the targeted business or receive a tour of the facility to get a better idea of working conditions and skill needs? Knowing Your Value to Businesses The Home Depot, a national hardware and home supply business, opens a new store somewhere in the country every 48 hours and expected to fill 240,000 new jobs in 2003. To meet their business plan, the company works with a variety of agencies. Recently, the Home Depot invited 16 workforce development organizations to a meeting to discuss possible national hiring partnerships. But when asked, "What can your organization offer in a partnership with our business?" a surprising number could not clearly answer that question.22 How would you do in a similar situation? You must represent your organization as a professional entity. Be clear about the assistance your organization is offering and the types of training and other assistance your organization can provide. Demonstrate your commitment and reliability and follow-up with further information and answers to questions raised. Joyce Sue Kelly of Cygnet Associates suggests the following strategy for introducing the services your organization offers:23
Ms. Kelly recommends using direct mail letters and/or telephone calls as a way to introduce businesses to your program and to set up appointments for further discussion. She also suggests using a prepared script for any telephone introductions you might make. It is also important to emphasize to employers why "outsourcing" to your organization is better than spending the time and money to do it themselves. Quality and access to skilled employees are the best reasons. Sure Hire Employment, a program of the Opportunities Industrialization Center (OIC) of Clark County in Springfield Ohio, lists the following as placement benefits they offer local employers: 24
Do you know the value of your own organization and what it might have to offer in a partnership with local businesses? To practice, use the space on the previous page to write down two or three things that your organization does well that would answer a business owner's question: "How will this benefit my business?" Gaining Access to Business Partnerships There are a number of ways to start making contacts with businesses in your community. One of the best is through your local One-Stop Career Center and its governing body, the Workforce Investment Board. A One-Stop Career Center organizes and integrates employment, education and training services into a single network of public and private resources. Through community offices, individuals can access high-quality local information on available jobs, skill requirements, and training opportunities as well as take informational classes. Assistance ranges from self-service activities (computer-accessed databases, use of office equipment such as fax and copiers) to more concentrated help from office staff. Referrals can be made to classes, skills training and educational programs. One-Stop offices are direct partners with a variety of agents, including many community and faith-based organizations. One-Stops also employ job developers and coaches to identify employment opportunities and link job seekers with available jobs. The Workforce Investment Board, whether at the state or local level, is the overseeing authority for the One-Stop Career Center system. The Board establishes workforce investment policies in the local area, develops strategic plans, and determines services to be provided. Additionally, the Board designates One-Stop Center operators, identifies One-Stop partners, and sets performance standards and contracting opportunities. Here are some other suggestions for how to identify business contacts:
Offering Fee-for-Service Arrangements Some programs are taking the idea of offering a valuable service one step further and literally selling their services to businesses. One example is the Sure Hire Employment Program of the OIC of Clark County in Ohio.26 Sure Hire works only with individuals who have no barriers to immediate employment. Candidates are determined to be appropriate for the program by completing an extensive application, demonstrating job readiness skills, and passing an interview with program staff. When an employer places a job order, Sure Hire checks its skills database to locate qualified candidates. The program may also recruit applicants, including placing newspaper advertisements on behalf of the employer. Sure Hire does all employment screening of applicants to ensure that their employability and job skills and match those specified by the employer. Referred applicants are immediately ready for hire. The key factor in Sure Hire's fee-for-service approach is its "thirty day retention guarantee." Sure Hire guarantees its candidates will not leave employment nor be asked to leave for at least thirty days and agrees to waive its fee if such a separation occurs. To ensure success, program staff immediately troubleshoot problems that arise, intervening before the worker is separated from employment. Sure Hire staff also performs mandatory checks at 30, 60 and 90 days after placement. Sure Hire has been so successful that it has been able to contract for other workforce development services. Sure Hire does all the pre-screening for one of the community's largest employers. It is also involved with job-related testing and background and criminal checks under separate fee arrangements with businesses. Whether or not you are interested in setting up a fee-for-service relationship with businesses, the Sure Hire model offers several practices for successfully recruiting business customers. First, Sure Hire relies on a referral network, in their case within their own organization. If the candidates are not ready for Sure Hire services, they can be referred to other programs within the greater OIC. It should be noted that fee-for-service arrangements should not be offered until the FBCO has established itself as an effective referral and placement service. A second replicable practice is Sure Hire's thirty day retention guarantee. Your organization might consider offering a similar warranty that would be equally attractive to businesses. Guarantees for follow-up of those placed, or immediate access to your staff if the employer encounters problems can be attractive incentives. These guarantees ensure employers that your organization is willing to stand by its services in the same way that employers stand by theirs. Formalizing Your Partner Relationship Once your organization has attracted businesses to purchase its services, it is time to write a contract or memorandum of agreement (MOA) that spells out what each party will do. The document should begin with a clear statement of purpose and, if appropriate, specific goals or deliverable services or products. It should be very specific as to tasks to be performed and outcomes to be expected. A timeline should be included or at minimum an end-date for the provision of individualized services and the agreement itself. Often such documents also specify a review period when all parties will revisit the arrangements and make any changes necessary. The exact specifications in the contract or MOA will depend on the services provided and parties involved. In a fee-for-service arrangement, it is necessary for both parties to agree on prices. Mike Calabrese, the Executive Director of the OIC of Clark County and the Sure Hire Employment program, set his base service fee by conducting a cost analysis of the expenses incurred by local businesses in advertising for, receiving, processing and screening applicants. He found the cost range in his community to be $9001600. He set the Sure Hire base fee at $400, well below the community norm, with no cost at all to the employer if the thirty day retention guarantee is broken.28 Cost savings and retention guarantees are powerful incentives for business owners. Creating a partnership takes time, effort, and lasting commitment. It also takes preparation before approaching potential business partners.
Checklist Of Things To Consider In Preparation For Partnering With Businesses
Aspen Institute, Domestic Strategy Group, "Grow Faster Together, or Grow Slowly Apart, Washington, D.C., 2002. Burger, Joyce and Bea Smith, Jobs and More, Springfield, OH, Interview: September 3, 2003. Bureau of Labor Statistics, "BLS Releases 2000-2010 Employment Projections," Washington, D.C., December 2001. Calabrese, Mike, Executive Director, Occupational Industrial Council of Clark County, Springfield, OH, Interview: September 19, 2003. Cheney, Scott, "Strategic Business Partnerships: Understanding and Responding to Workforce Issues," presentation at the Touching Lives and Communities Grantee Conference, Washington, D.C., August, 2003. Elliott, Barbara, "Enterprise-Based Solutions to Poverty," paper prepared for the State of the World Forum, 2000. Finnegan, Richard, Senior Vice President, Talent Keepers, presentations at "Workforce Academies of Learning," Orlando, FL, 19992000. HMA Associates, Customer Needs and Expectations Regarding the Workforce Development System, prepared for the U.S. Department of Labor, Employment Training Administration, Washington, D.C., 2003. HMA Associates, employer interviews for the study Customer Needs and Expectations Regarding the Workforce Development System, Springfield OH, February 12, 2002. Houghton, Ted and Tony Proscio, Hard Work on Soft Skills, Public/ Private Ventures, Philadelphia, PA, 2001. Hower, Greg, Job Developer, Sure Hire Employment Program, Springfield, OH, Interview: September 12, 2003. Kelly, Joyce Sue, "How to Convince Employers to Hire the Hard to Serve," Workshop at the 2003 National Farmworker Partnership Conference, Washington, D.C., 2003. Langford, Craig, Retail Staffing, The Home Depot, presentation at the "Three Sector Conference," Center for Corporate Citizenship, U.S. Chamber of Commerce, Washington, D.C., 2003. Martin, Carolyn, Ph.D., Rainmaker Thinking, presentation at the "2002 Workforce Academy," Clackamas, OR. McNeil, John M., U.S. Bureau of the Census, "Employment, Earnings and Disability," paper prepared for the 75th Annual Conference of the Western Economic Association International, July 2000, Vancouver, B.C. Moritz, Amy, Uptown Alliance, Memphis, TN, Interview: October 2, 2003. Seigel, Ben, Seedco, New York City, NY, Interview: September 4, 2003. Sherman, Amy L. Ph.D., Collaborating for Employment Among the Poor: The Jobs Partnership Model, The Hudson Institute, Indianapolis, IN, 2001. Streeter, Ryan, "Reaching Out to Workers 'Left Behind'," San Francisco Chronicle, June 2, 2000. U.S. Census Bureau, "Projections of the Total Resident Population, 1999 to 2100," Washington, D.C., www.census.gov/population/www/projections/natsum.html U.S. Department of Health and Human Services, news release, "HHS Announces Sixth Straight Year of Declines in Welfare Caseloads," Washington, D.C., February 2003. U.S. Department of Justice, Bureau of Justice Statistics, "Reentry Trends in the United States," August 2003. www.ojp.usdoj.gov/bjs/reentry/reentry.htm. U.S. Department of Labor, "Training and Employment Information Notice No. 12-00, 2001. U.S. Department of Labor, Center for Faith-Based and Community Initiatives, "Ready4Work Program," informational brochure, http://www.dol.gov/cfbci/ ready4work.pdf. U.S. Department of Labor, Center for Faith-Based and Community Initiatives, "Faith-Based Organization Booklet," Washington, D.C., 2003. Werner Companies, Director of Human Resources, discussion at the "2003 Workforce Academy," Merced CA. U.S. Department of Labor Center for Faith-Based and Community Initiatives 200 Constitution Ave, S2231 Washington, DC 20210 1 Opening Plenary Session, Workforce Innovations 2004, Washington, DC 2 Bureau of Labor Statistics, "BLS Releases 2000-2010 Employment Projections," Washington, D.C., December, 2001. 3 Aspen Institute, Domestic Strategy Group, "Grow Faster Together, or Grow Slowly Apart, Washington, D.C., 2002. 4 U.S. Department of Labor, "Training and Employment Information Notice No. 12-00, 2001 and calculations based on U.S. Census Bureau population projections. 5 U.S. Department of Health and Human Services, news release, "HHS Announces Sixth Straight Year of Declines in Welfare Caseloads," Washington, D.C., February, 2003. 6 U.S. Department of Justice, Bureau of Justice Statistics, "Reentry Trends in the United States," August, 2003. 7 John M. McNeil, U.S. Bureau of the Census, "Employment, Earnings and Disability," paper prepared for the 75th Annual Conference of the Western Economic Association International, July, 2000, Vancouver, B.C. 8U.S. Census Bureau, "Projections of the Total Resident Population, 1999 to 2100," Washington, D.C., www.census.gov/population/www/projections/natsum.html. 9Customer Needs and Expectations Regarding the Workforce Development System, Washington, D.C., 2003, page 21 10 Carolyn Martin, Ph.D., Rainmaker Thinking, presentation at the "2002 Workforce Academy," Clackamas, OR. 11 Employer comment, Customer Needs and Expectations Regarding the Workforce Development System, Washington, D.C., 2003, page 79 12 Richard Finnegan, Senior Vice President, Talent Keepers, presentations at "Workforce Academies of Learning," Orlando, FL, 1999-2000. 13 Customer Needs and Expectations Regarding the Workforce Development System, Washington, D.C., 2003, page 64. 14 Amy L. Sherman, Ph.D., Collaborating for Employment Among the Poor: The Jobs Partnership Model, The Hudson Institute, Indianapolis, IN, 2001. 15 Ryan Streeter, "Reaching Out to Workers 'Left Behind'," San Francisco Chronicle, June 2, 2000 16 Joyce Burger and Bea Smith, Jobs and More, Springfield, OH, Interview: September 3, 2003. 17 U.S. Department of Labor, Center for Faith-Based and Community Initiatives, "Ready4Work Program," informational brochure, http://www.dol.gov/cfbci/ready4work.pdf. 18 Barbara Elliott, "Enterprise-Based Solutions to Poverty," paper prepared for the State of the World Forum, 2000. 19 employer at focus group for the study: Customer Needs and Expectations Regarding the Workforce Development System, talking about a model community-based organization workforce development program, 2002 20 Ryan Streeter, "Reaching Out to Workers 'Left Behind'," San Francisco Chronicle, June 2, 2000 21 Amy Moritz, Uptown Alliance, Memphis, TN, Interview: October 2, 2003. 22 Craig Langford, Retail Staffing, The Home Depot, presentation at the "Three Sector Conference," Center for Corporate Citizenship, U.S. Chamber of Commerce, Washington, D.C., 2003. 23 Joyce Sue Kelly, "How to Convince Employers to Hire the Hard to Serve," Workshop at the 2003 National Farmworker Partnership Conference, Washington, D.C., 2003. 24 Greg Hower, Job Developer, Sure Hire Employment Program, Springfield, OH, Interview: September 12, 2003. 25 Employer at focus group for the study: Customer Needs and Expectations Regarding the Workforce Development System, talking about the Sure Hire Employment program, Springfield Ohio, 2002 26 Hower, 2003. 27 Employer at focus group for the study: Customer Needs and Expectations Regarding the Workforce Development System, talking about the Sure Hire Employment program, Springfield Ohio, 2002] 28 Mike Calabrese, Executive Director, Occupational Industrial Council of Clark County, Springfield, OH, Interview: September 19, 2003.
|
|
|||||||
|