Table Of Content

DOCUMENT RESUME CE 075 252 ED 413 518 An Evaluation of Washington State's Job Skills Program. TITLE Washington State Workforce Training and Education INSTITUTION Coordinating Board, Olympia. 1996-00-00 PUB DATE NOTE 26p. Evaluative (142) Reports PUB TYPE MF01/PCO2 Plus Postage. EDRS PRICE Continuing Education; *Cooperative Programs; Dislocated DESCRIPTORS Workers; Education Work Relationship; Employment Programs; Entry Workers; Institutional Cooperation; *On the Job Training; *Outcomes of Education; Program Effectiveness; Retraining; *School Business Relationship; State Programs; Two Year Colleges *Washington IDENTIFIERS ABSTRACT The Job Skills Program (JSP) in Washington State provides job training customized to meet the needs of employers through partnerships of employers and training institutions. The JSP funds up to one-half the cost for of training, with employers providing a match. Training can be provided promotions, or for new employees, for upgrading employees receiving retraining to prevent job loss. During 1991-93, 36 projects were funded, involving 18 community and technical colleges and 105 companies throughout the state. A total of 4,238 participants were trained, 2,556 of them new employees. The program was evaluated based upon three sources of data: a Northwest Policy Center telephone survey of firms funded by JSP between July Security 1993 and June 1995; matches between program records and Employment Department wage data files; and JSP administrative records for July 1, 1991-June 30, 1995. The evaluation showed that, overall, employers were very satisfied with the program, which resulted in substantial increases in worker earnings. Employers reported improvements in productivity, job growth, employee retention, and employee training investments. Areas for improvement and include promoting a closer relationship between educational institutions employers, reducing paperwork, and clarifying potential employees' expectations at the beginning of the project. (Detailed evaluation information and program reports are included in appendixes.) (KC) ******************************************************************************** * Reproductions supplied by EDRS are the best that can be made * * from the original document. * ******************************************************************************** AN EVALUATION OF WASHINGTON STATE'S JOB SKILLS PROGRAM U.S. DEPARTMENT OF EDUCATION Office of Educational Research and Improvement T1ONAL RESOURCES INFORMATION ED CENTER (ERIC) is document has been reproduced as received from the person or organization originating it. O Minor changes have been made to improve reproduction quality. Points of view or opinions stated in this document do not necessarily represent official OERI position or policy. PERMISSION TO REPRODUCE AND DISSEMINATE THIS MATERIAL HAS BEEN GRANTED BY TO THE EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) 1996 Washington State Workforce Training and Education Coordinating Board 2 RRCT CAM/ AVA TI .4 RI WORKFORCE TRAINING AND EDUCATION COORDINATING Board Members Betty Jane Narver Chairperson Gilberto Alaniz Representing Targeted Populations Judith Billings State Superintendent of Public Instruction John Carter Representing Labor Karen Carter Representing Labor Earl Hale Executive Director State Board for Community and Technical Colleges Jeff Johnson Representing Labor Gary Moore Commissioner State Employment Security Department Joseph J. Pinzone Representing Business Dick Spangler Representing Business Ellen O'Brien Saunders WTECB Executive Director AN EVALUATION OF WASHINGTON STATE'S JOB SKILLS PROGRAM "This was a great service. It cements the relationship between the college and a company, whether the college does the training or provides training for company trainers." An employer's comment on the Job Skills Program 1996 Washington State Workforce Training and Education Coordinating Board Building 17, Airdustrial Park P.O. Box 43105 Olympia, Washington 98504-3105 Telephone: (360) 586-3321 FAX: (360) 586-5862 Internet: wtecb @wln.com http://www.wa.gov/wtb 04VERPle Ir is the policy of the Workforce Training and Education Coordinating Board that educational activities, employment practices. programs. and services are offered without regard to race, color, national origin. sex, religion, handicap, or age. 4 I Matches were obtained on participants who Introduction completed a JSP training project between July 1, 1991, and June 30, 1993. (This time period was The Washington State Legislature created the Job selected in order to measure long-run labor market Skills Program (JSP) in 1983 in order to provide job outcomes. The more recent period of 1993-95 training customized to meet the needs of specific order to was selected for the employer survey in employers. Training is conducted through partner- minimize problems of remembering.) ships of employers and training institutions, mainly community and technical colleges. The Workforce Job Skills Program administrative records for the Training and Education Coordinating Board manages period from July 1, 1991, to June 30, 1995. the program. This report is part of a continuing effort by the Work- Program Description force Training and Education Coordinating Board to The Job Skills Program has four main purposes evaluate the outcomes of Washington's workforce training programs. As in previous evaluations, the (WAC 490-300-020): study is designed to identify the strengths of the Promote a productive and expanding economy in program, as well as areas for improvement. Washington State; Overall, employers were very satisfied with BP Meet specific employment needs of new and and the program was associated with substantial expanding business and industry; increases in worker earnings. According to employ- production ers, JSP training contributed to increases in Increase employment opportunities for residents and productivity, lower turnover and layoff rates, and growth in employment. For workers, hourly wages in the state; and and quarterly earnings were substantially higher six Encourage the flow of business and industry to nine months after completing the program than support of educational institutions. they were before the program. Two years after completing JSP, wages and quarterly earnings were The Job Skills Program funds up to one-half the cost higher still. The mean pre- to post-program increase of training. Employers must provide a match equal to in quarterly earnings was $1,643 to $2,144, depending of employee at least half the cost. Three different types on the type of training. training are available: 1) training for new employees before a plant opens or when a company expands The evaluation is based upon three sources of data: employment; 2) upgrade training for employees job receiving promotions if the promotions result in A Northwest Policy Center telephone survey of openings; or 3) retraining for employees to prevent firms funded by JSP between July 1, 1993, and job loss due to dislocation. June 30, 1995. The survey asked employers about their satisfaction with the training program and funded During the 1991-93 biennium, 36 projects were about the program's effects. involving 18 community and technical colleges and of 4,238 105 companies throughout the state. A total Matches between program records and Employ- participants were trained. Of that total, 2,556 were ment Security Department wage data files. JSP EVALUATION Production and Productivity new employees. On the average, $46,800 in state funds were expended per project. An average of 118 Finns were asked how employee productivity changed individuals were trained per project, of which 71 since JSP training. Eighty-three percent said their firm were new hires. experienced increased production or sales since JSP. Of these, 73 percent considered JSP to be a factor in During the 1993-95 biennium, 22 projects were funded involving 11 community and technical colleges, one the increase. community-based organization, and 70 companies. A Employers said, for example, that the program en- total of 2,144 workers were trained. Of that total, hanced employee teamwork, improved communications 1,309 were new employees. On the average, $56,000 and attitudes, and improved worker appreciation for in state funds were expended per contract. An average of 100 individuals were trained per project, of which safety. 60 were new hires. (A copy of the program's 1993-95 and 1991-93 biennial reports are attached.) Employment More than half of the employers experienced increased Participant Characteristics employment since participating in JSP. Of these, 60 percent said the training was a contributing factor in Of the new employees trained between July 1, 1991, and June 30, 1993, 37 percent were unemployed their expansion. and/or economically disadvantaged, 26 percent were Several of the start-up or expanding businesses said people of color, and 27 percent were women. Of the JSP was essential in hiring and training new employees new employees trained between July 1, 1993, and before the firms could begin or increase production. June 30, 1995, 34 percent were economically disadvantaged, 37 percent were people of color, and 43 Five companies reported the training prevented layoffs percent were women. laid off. or reduced the number of employees who were Customer (Employer) Satisfaction Employee Retention For this part of the study, the Northwest Policy Improvements in employee retention were noted for Center at the University of Washington surveyed 18 both new and long-term company employees. Half employers from the 22 JSP projects in the 1993-95 of the employers interviewed said their long-term biennium. (See Appendix A from the complete Policy employees were now more likely to remain with the Center report.) Employers were asked to describe JSP's effect on production and productivity, overall company. employment, employee retention, continued em- Employers mentioned, for example, that employees ployee training, and employer satisfaction. Four became more self-sufficient, involved, and active in projects were not included in the survey because they the business after training. served a large number of firms rather than individual companies or small consortia. For these four projects, the effects per firm would be difficult for employers to recall. 6 New Employee Training Employee Training The 1,675 participants who completed new employee Experience with JSP continues to affect employers' training experienced substantial gains in earnings. investments in training. Sixty-seven percent of the Their gains were due mostly to an increase in the employers reported providing more employee training number of hours worked. The gains continued to rise after the end of their project compared to the time two years after program completion. before their project began. As can be seen in Table I, the mean wage for new Satisfaction with the Job Skills Program employees who were employed before starting the however, program was $10.17 per hour. They worked, All 18 employers reported that the Job Skills Program an average of only 282 hours per calendar quarter either "definitely met" (14) or "partially met" (4) (working 40 hours per week equals 520 hours per their objectives. quarter, on the average). As a result, their mean quarterly earnings were low, only $2,751. Nearly one-third of the employers, however, reported frustration with the complexity and extent of paper- During the third quarter after completing the program, work associated with their project. the participants' mean wage increased to $10.94 per hour and their average hours worked increased to 408 Satisfaction with JSP was often linked to the degree hours per quarter. This increase in hours was the of support provided by the community or technical main factor behind an average jump of $2,144 in college. Employers who were satisfied with the quarterly earnings pre- to post-program) application and administrative processes often mentioned that they received active and continued support from the college. WAGES, HOURS, AND EARNINGS FOR "NEW" EMPLOYEES Gross Hours Employment and Earnings Worked Quarterly Hourly Pre-Post Per Quarterly Increase Quarter Earnings Wage Period For this part of the evaluation, the Workforce Training and Education Coordination Board matched Job N/A $2,751 $10.17 282 Mean Last Quarter N/A 2,039 243 8.43 Median Skills Program records with Employment Security Prior to JSP Department Unemployment Insurance wage files to $1,539 4,430 408 10.94 Mean Third Quarter 1,309 4,475 476 identify hours worked and wages earned. Records 10.32 Median After JSP were matched for the 2,469 employees who partici- 2,144 5,083 427 11.74 Mean Eighth Quarter 1,949 4,924 pated in the program between July 1, 1991, and June 494 11.14 Median After JSP 30, 1993. The findings are presented separately for TABLE I the three types of JSP training: new employee training, upgrade training, and retraining to prevent dislocation. (The earnings and hours numbers are based only on The gross increase in earnings tracks the increase per each individual those individuals with employment recorded in the from the pre- to post-program period. This method is different than simply taking the difference between the average earnings during the pre- Employment Security Department's wage files, period for the sample as a whole and the average earnings during the which include 85 to 90 percent of total employment post-period for the sample as a whole, because it is based on only those in the state.) individuals who were in the wage files both before and after training. El 7 JSP EVALUATION These gains continued in the eighth quarter after the WAGES, HOURS, AND EARNINGS FOR "RETRAINED" EMPLOYEES program. Two years after training, they averaged Hours Gross $11.74 per hour and worked an average of 427 hours Worked Quarterly per quarter. (The distribution of wages and quarterly Hourly Pre-Post Per Quarterly Quarter Increase Wage Earnings Period earnings is shown in the Appendix, Table I.) Workers experienced an average gain of $2,144 in quarterly N/A 427 $4,627 $11.10 Mean Last Quarter N/A 4,673 491 9.65 Median earnings from pre- to two years post-program. Prlor to JSP $1,326 6,167 499 12.18 Mean Third Quarter 1,066 6,019 518 11.62 Upgrade Training Median After JSP 1,643 6,457 516 13.13 Mean Eighth Quarter 1,449 The 341 participants in JSP upgrade training experi- 6,338 520 12.29 Median After JSP enced substantial increases in their hourly wages. TABLE III Table II shows that before starting the Job Skills Program, the average wage of upgrade participants Retraining was $11.62 per hour. On the average, they worked 472 hours in the quarter. By the third quarter after com- The 453 employees who completed retraining also ex- pleting the program, the average hourly wage had perienced substantial gains in earnings that continued grown to $13.37, and the hours worked were 543 per gains two years after completing the program. The quarter. The average gain in earnings from pre- to and the were due to increases in both hourly wages post-program was $1,759 in the third quarter. number of hours worked. The gains continued two years after program comple- The last quarter prior to entering the program (see tion. During the eighth quarter after training, the Table III) the participants had fairly good earnings that average wage was $14.34 per hour and 518 hours were Some may already were threatened by dislocation. worked per quarter. The average gain pre- to two have experienced a reduction in hours. The mean wage years post-program was $1,860 in quarterly earnings. hours worked in the was $11.10 per hour, and the mean quarter was 427. FOR "UPGRADE" EMPLOYEES WAGES, HOURS, AND EARNINGS The third quarter after training, the average wage was $12.18 per hour, and the average number of hours Gross Hours Quarterly Worked worked in the quarter was 499. The average gain in Hourly Pre-Post Quarterly Per quarterly earnings from the quarter prior to the pro- Quarter Increase Wage Earnings Period $1,326. gram to the third quarter after the program was N/A $5,581 $11.62 472 Mean Last Quarter N/A 5,565 11.42 523 Median Prior to JSP Two years after training, the average wage had grown $1,759 7,381 13.37 543 Mean Third Quarter worked per to $13.13 per hour and average hours 1,572 7,000 12.85 Median 551 After JSP gain in quarter was 516 hours. The average pre-post 1,860 7,582 14.34 518 Mean Eighth Quarter quarterly earnings was $1,643 two years after complet- 1,617 7,729 Median 14.28 529 After JSP ing the training. TABLE II 8 4 JSP EVALUATION Several of the employers suggested reducing Retention and Earnings by the or simplifying the paperwork required combining program. Some suggestions included In order to measure the relationship between employee records on single forms, and coordi- job retention and earnings, the quarterly earnings of nating data requests with standard business JSP participants who stayed with the same employer reporting practices. (In November 1994, the during the follow-up period were compared to the JSP application process was simplified.) earnings of participants who changed to a new employer. The results show that gross increases in More than 75 percent of the companies had some earnings were generally greater for employees who employees who started but did not complete the stayed with the same employer. For example, the training. Employers explained that they were median pre-post increase in quarterly earnings of either fired for poor attendance, quit because participants receiving new employee training was they did not fit into the new team approach, or $2,035 higher for individuals who stayed with the did not want to accept training. In order to reduce same employer through the eighth post-program the number of dropouts, employers suggested quarter. The exception to this relationship appears to clarifying potential employees' expectations be the long-term outcome for workers retrained to regarding training and employment at the prevent dislocation. By the eighth post-program beginning of the project. quarter, workers who were retrained and stayed with the same employer had a median pre-post increase in quarterly earnings of $415 less than retrainees who changed employers. This outcome may reflect the relatively difficult situation of firms facing possible labor dislocation. Areas for Possible Improvement While overall the results are very good, the findings suggest some areas for improvement. Results show that educational institutions should strive for a closer relationship with employers during and after the Job Skills Program. Employer satisfaction was linked to the continued support provided by the community and technical college. The most successful colleges reached out to employers and went beyond the initial training contracts to become an ongoing source of training and other business assistance. 9 El APPENDICES AN EVALUATION OF WASHINGTON STATE'S JOB SKILLS PROGRAM IQ