DOCUMENT RESUME ED 479 041 JC 030 384 AUTHOR Harmon, Robert; MacAllum, Keith Documented Characteristics of Labor Market-Responsive TITLE Community Colleges and a Review of Supporting Literature. Westat, Inc., Rockville, MD.; Academy for Educational INSTITUTION Development, Washington, DC. Office of Vocational and Adult Education (ED), Washington, SPONS AGENCY DC PUB DATE 2003-00-00 NOTE 26p. PUB TYPE Information Analyses (070) Reports Research (143) EDRS PRICE EDRS Price MF01/PCO2 Plus Postage. DESCRIPTORS *College Programs; *Community Colleges; Curriculum; Economic Development; *Job Training; Labor Economics; Labor Force; *Labor Force Development; Labor Market; Labor Supply; Two Year Colleges; *Vocational Education ABSTRACT This paper discusses the mission of the market-responsive community college. These colleges include mid- and high-level workforce training in their curriculum. Some of the characteristics of a market- responsive community college detailed here include: (1) allocating resources to develop training programs; (2) reaching out to businesses and other organizations; (3) responding rapidly to changes in local economic conditions and training needs; (4) recruiting faculty from among local experts in the field; and (5) partnering with other local educational institutions to deliver comprehensive training. Over 200 publications were reviewed for this report, and the 25 articles that contained the most relevant information, including descriptions of labor-market responsive behavior, were selected. The four methodologies used in preparing the articles that were selected (1) statistical analysis; were: (2) less formal data analysis; (3) literature reviews; and (4) anecdotal evidence. The conclusions of this review will be used as hypotheses to be thoroughly tested in the next phase of this initiative. A reading of the literature found that outsourced training expenditures for U.S. companies nearly doubled, from $9.9 billion to $19.3 billion annually, between 1994 and 2000. Includes brief outlines of specific community college programs and 25 annotated references to literature analyzed for the study. (NB) Reproductions supplied by EDRS are the best that can be made from the original document. Documented Characteristics of Labor Market-Responsive Community Colleges and a Review of Supporting Literature 2003 Prepared for: U.S. Department of Education Office of Adult and Vocational Education Washington, D.C. U.S. DEPARTMENT OF EDUCATION Office of Educational Research and Improvement EDUCATIONAL RESOURCES INFORMATION Prepared by: CENTER (ERIC) This document has been reproduced as received from the person or organization originating it. Westat Minor changes have been made to improve reproduction quality. Rockville, MID and Points of view or opinions stated in this document do not necessarily represent The Academy for Educational Development official OERI position or policy. Washington, DC U.S. Department of Education - Office of Vocational and Adult Education BEST COPY AMLABLE 2 U.S. Department of Education, Office of Vocational and Adult Education Documented Characteristics of Labor Market-Responsive Community Colleges and a Review of Supporting Literature Robert Harmon, Westat, Rockville, MD Keith MacAllum, Ph.D., Academy for Educational Development, Washington, DC Executive Summary The mission of community colleges has evolved beyond their traditional roles of open access, vocational education and as an entrée into 4-year colleges, to include mid- and high-level According to the literature, those colleges that embrace this new mission workforce training. seek to meet rapidly changing local workforce development needs. The literature also notes that these market-responsive community colleges share many characteristics. These characteristics are interconnected and mutually supporting. Market-responsive community colleges: Have leadership committed to the market-responsive mission of the college. Elements include: Allocating resources to develop training programs. Reaching out to local businesses and other organizations. - Identifying market-responsiveness as part of the college's mission. Have internal response mechanisms that allow for rapid development of training curriculum to meet changing workforce demands, which include: Responding rapidly to changes in local economic conditions and training needs. Creating a division to address local employment demands. Developing for-credit programs based on local workforce needs. Partner with local businesses and local workforce and educational organizations to develop which includes: appropriate training and academic curricula , Collaborating with local businesses on curriculum development and seeking employer input on curriculum development. Recruiting faculty from among local experts in field. Partnering with other local educational institutions to deliver comprehensive training. Have close ties to their local communities, including: Understanding local workforce needs. Being able to detect shifts in local labor market needs. Offering targeted and contract training. Over 200 publications were reviewed for this report and the 25 articles that contained the most relevant information were selected. Articles were selected based on their relevance to this 3 1 project and on how well they illustrated or described some aspect of labor-market responsive behavior. Four methodologies were used in preparing the articles that were selected for this review; statistical analysis, less formal data analysis, literature reviews, and anecdotal evidence, including surveys and interviews of colleges, businesses and other stakeholders. Among these works there was general consensus as to what constituted a market- responsive community college, as well as which colleges have exemplary market-responsive programs. Though articles addressed different aspects of market-responsiveness, the works complemented each other to provide a comprehensive definition of a market-responsive college, and the attributes that make community colleges highly responsive. However, the analyses were not sufficiently rigorous for the conclusions to be accepted In particular, colleges that lack some of the key attributes cited in the literature, as definitive. nevertheless, may be highly responsive, and the difference in market-responsiveness between the colleges cited in the literature and other colleges could be small. Thus, the conclusions of this review will be used as hypotheses to be thoroughly tested in the next phase of this initiative. Specifically, this initiative will assess market-responsiveness and the attributes that make programs highly effective by: (1) collecting and analyzing transcript and wage-record data from selected states to determine which programs most closely addressed local employment needs, and (2) conducting on-site interviews with local stakeholders to learn more about the attributes that make college programs highly market-responsive. 4 2 1.0 Introduction These include Historically community colleges have pursued multiple missions. providing opportunities for students to earn an associate's degree or transfer to four-year colleges, for adult members of the community to obtain continuing education, and for new and incumbent workers to get vocational training in the form of certification and specialized programs. While community colleges continue to serve these three functions, there is increased As local interest in the role that they can play in workforce and economic development. economies and employment needs change, some community colleges appear better able to respond than others. Some even anticipate these changes. For a college to be labor market responsive, it must actively consider the local and national economic environment and be able to deliver educational and training programs that directly address labor market needs, often in a very short time. Community colleges are well suited to assume this role, as they generally are nimble at curricula development, particularly Community college administrators are beginning to with respect to non-credit programs. transform the processes of delivering educational and training programs, allowing colleges to Partnerships with employers and community respond more quickly to labor market changes. organizations, a mission statement giving a high priority to workforce development, and specialized contract training are all examples of community college responses to workforce development needs. The literature discusses the similarities that exist among those community colleges that have been most successful in responding to the economic and employment needs in their areas. The literature cited in this review reached a general consensus as to what constituted a market-responsive community college, as well as which colleges have exemplary market- responsive programs. Though articles addressed different aspects of market-responsiveness, the works complemented each other to provide a comprehensive definition of a market-responsive college, and the attributes that make community colleges highly responsive. However, the analyses were not sufficiently rigorous for the conclusions to be accepted In particular, colleges that lack some of the key attributes cited in the literature, as definitive. nevertheless, may be highly responsive, and the difference in market-responsiveness between the colleges cited in the literature and other colleges could be small. Thus, the conclusions of this review will be used as hypotheses to be thoroughly tested in the next phase of this initiative. The hypothesis that the characteristics cited in the literature do in fact increase the level of market-responsiveness of a college will be tested through use of transcript and wage record data, and on-site observations of college operations. The objective is to demonstrate to what extent, if any, colleges that have most or all of the documented market-responsive characteristics outperform those that have fewer or none of these elements. Interviews with stakeholders in each college presidents, local business leaders, local officials and other organizations, community and graduates will support the statistical analyses by identifying which characteristics they consider key to the college's success. 3 2.0 Findings from the Literature A close reading of the literature reveals that over the past decade the training needs of employers have expanded. More dollars are being spent on training every year by high tech and Indeed, outsourced training other companies to upgrade the skills of their workforce. expenditures for U.S. companies nearly doubled between 1994 and 2000, growing from $9.9 billion to $19.3 billion annually (National Alliance of Business, 2001). This demand has created a market for contract training and curriculum development that community colleges are highly However, competition for this market has expanded with the increase in qualified to meet. training budgets, both from private vendors and from within the companies themselves. While many community colleges have been market responsive and thus able to secure such training, others have been less successful. How community colleges respond to the growing demand for training determines how effective they will be at securing training dollars from employers and students. A particularly relevant example is the development of internal divisions, often called "entrepreneurial" An entrepreneurial college, or what is colleges, to address these external training needs. sometimes referred to as a "shadow" college, is an entity within the college itself that is tasked with developing and delivering programs targeted at a specific population. In an entrepreneurial college, the employer is considered the primary customer rather than the student. These colleges deliver non-traditional training, mostly contract training for employers. (Grubb, 2001). For instance, in the North Carolina Community College System, several programs conducted through Other functions of these entities entrepreneurial colleges have trained over 25,000 workers. include small business development and attracting new employers and industries to their region. Similarly, some community colleges like Bellevue in Washington State and Montgomery their approaches to curriculum College in Maryland are becoming more aggressive in development and delivery. They have designed a marketing plan targeted at employers with the In order to do this, these colleges gather detailed intent of securing contract-training dollars. information about the needs of the local labor force based on the types of industries that dominate the area, then develop programs that address the skill demands of those industries and present them to local employers. The characteristics of market responsive community colleges are not identical. They vary according to the local economy, the size of the business community being served, the types of industries that dominate a given area, and the level of demand for highly coveted skill sets. Still, the literature on market responsive community colleges indicates that they share several key elements: A leadership committed to the goal of making the college market-responsive, Internal response mechanisms; Business and other partnerships; and Connection to the local economy. 6 4 The literature suggests that these are the characteristics that community colleges should be focusing on if they are serious about becoming market responsive. Though each community college has some unique features in its approach to and relationship with its local market, many or all of the underlying characteristics of each element are common across institutions. These elements are usually well integrated in an institution's approach and so there is some overlap in our discussion of their characteristics. Most of the publications selected for this review highlight key elements of a market describe the changing environments in which responsive community college detail, in community colleges find themselves, and the colleges' efforts to adapt to those environments. Each article selected either described some aspect of market-responsiveness or presented evidence of colleges that had employed market-responsive practices with some degree of From these publications it is possible to derive the market-responsive documented success. elements that populate the list of characteristics. Other publications that were reviewed referred to the evolution of worker training at community colleges, but were more general in their discussion of market responsiveness and did not identify specific characteristics associated with Though some of this information was helpful in understanding the market-responsiveness. circumstances that community colleges face with respect to changing economic and workforce demands, detailed findings of these publications were not reported. While the identification and classification of these characteristics are based on the supporting literature that describes how a characteristic relates to market responsiveness, in some cases the literature does not discuss the specific elements of market responsiveness. Rather, it This is describes the overall results that came about because these elements were in place. especially true of effective leadership. Few articles address the subject of leadership directly, yet many imply that strong leadership is necessary in order for the programs to exist, expand, and have continued support. By examining how programs evolve and operate, it is possible to gain an understanding of the role of the college leadership in shaping the policies that led to a successful market responsive program. 7 5 3.0 Characteristics This section deals with each of the four market-responsive characteristics identified from the literature. Because the market-responsive initiative is a coordinated effort by the college to respond to training, education and employment needs of the local workforce, many of the goals However, each element will be discussed of these four overarching characteristics overlap. separately in the context of the characteristic it supports. 3.1 Leadership: According to the literature, for a market responsive community college to be successful, the leadership of the college needs to be committed to the development and growth of a market- The president must have a clear plan for developing and maintaining responsive approach. Additionally, he or she must have the full market-responsive initiatives within the college. support of the board of trustees or the governing body of the college. Presidents need to recognize the role that a community college can play in the local economic area and develop a plan to fill that role. He or she must also have an appreciation of the national labor market and understand how his or her college can address the needs of that market as well. Tony Zeiss, President of Central Piedmont in North Carolina epitomizes this role when he states, "in my view, the community colleges... are the economic engines that will keep our state moving forward." Whether a college president takes an active or supportive role in the development or oversight of the market-responsive programs, their commitment to the idea of market- responsiveness is essential for the success of the initiative. Leadership goals include: Allocating resources to develop and deliver training programs for employers. This can include both financial resources (revenue from tuition, state and local support, contract training and auxiliary income, as well as state, federal and private grants), materials (such as computers, text books, and other related equipment), personnel (faculty and administrators) and facilities. (Roberts 2002, National Alliance of Business 2001, Dougherty 2000, Brand 1997, Grubb 1997). Improving recruitment and retention of students, particularly in programs key to the local and national economy. Those colleges that are able to demonstrate that they can successfully recruit and train students in highly sought-after skills will become more attractive as training resources to local businesses. Measuring success in this area is key. Colleges will be able to demonstrate increased efficiency through a reduction in the attrition rate of students in key programs and to identify which programs under-perform and/or may no longer be relevant to the workforce. (Salter 1999, Seppanen 1991). Instituting aggressive outreach programs targeted at bringing in contract training from local businesses. As the demand for worker training expands, college presidents need to pursue training opportunities among local employers, either personally or through an internal division dedicated to pursuing and securing training. In order to be successful, the leadership 6 8 must have an understanding of the evolving needs of employers to be able to anticipate and prepare for upcoming changes in workforce demand. (Drury 2000, Gruber 2000, Ohio Board of Regents 2000, Kisner 1997, Grubb et al 1997). Encouraging the expansion of curricula to include more employer-focused programs. The leadership must move the college towards a more demand-oriented strategy of program development, and have programs in place to meet present demands and rapidly respond to This often involves hiring faculty willing to develop future demands when they arise. curriculum in collaboration with local employers, or bringing in local experts as adjunct faculty to teach. (Lebowitz et al 2001, Carnevale 2000, Bailey and Averianova 1998). Remaining current on effective practices of other market-responsive community colleges. Gleaning information about what makes other community colleges successful in serving their local economic areas, and those practices, or integrating then Montgomery County, MD Montgomery College portions of them that would apply to the local economic area, are a key part of the The president of Montgomery College is credited with the vision for implementing the "institute model" on role of the college leadership. Sharing One such example is The the college's campus. and integrating effective practices enables Homer S. Gude lsky Institute for Technical Education colleges across the country to upgrade GITE is a (GITE) which opened in the fall 1992. their programs through proven methods. public-private joint venture providing state-of-the-art It also enables colleges in urban or rural technical education and training opportunities for the what programs and learn areas to community. relationships succeeded around the The programs of result ongoing direct are a economic respective country their in business and industry local with to partnerships environments, since practices that succeed identify and respond to the technical training needs of in a heavily populated area may not be as The college the community. president set the successful in rural areas with a much less necessary tone for outreach and collaboration with diverse local economy. (Salter 1999). Gudelsky Institute The offers business. local instructional programs in four primary areas using Identifying market responsiveness delivery options promoted instructional by the as part of the college's administrators, executive including: college's mission. By Training; On-Site Contract Training; Customized college's expanding the the mission Certificate Programs; Education; Distance committing itself leadership to is Apprenticeship-Related Instruction; and Credit and providing support to the local and national Continuing Courses. It also signals its willingness workforce. to commit resources develop and Dr. Patrick Valentine, Dean, Economic and to Source: Workforce Development, Montgomery College deliver training to local employers and example, For vision employees. statements like those of Central Piedmont Community College which reads: "CPCC intends to become the national leader in workforce development," stand in contrast to more traditional statements of mission focused on quality (Warford & Flynn 2002, Carnevale 2000, of instruction and student-centered services. Bailey and Averianova 1998). 9 7 3.2 Internal Response Mechanisms: Another key factor highlighted in the literature is the need for community colleges to have internal response mechanisms that develop and deliver training based on the needs of the local economy. Since jobs and the skills needed to perform them change quickly, these response mechanisms must be able to evolve rapidly to accommodate the demands generated by such changes. To do this effectively, community colleges need to be connected to the local labor market; to know what sorts of jobs employers need and what skills they look to upgrade. Often training divisions operate independently of the college's other departments or divisions, and utilize both internal and external guidance in determining how best to develop and/or update curriculum. Characteristics of internal response mechanisms include: Responding rapidly to changes in local Portland, OR Portland Community College economic conditions and training needs. Because jobs are ever evolving, training Portland Community College has partnered with providers need to be able to quickly Mount Hood Community the College local and develop and deliver training that addresses Workforce Investment Board to provide short-term the needs of employers for both new and training to dislocated workers with limited English existing workers. In addition, economic Existing curricula at proficiency and low basic skills. the colleges were reorganized into shorter modules in the uneven, growth and can be is fields of Accounting/Bookkeeping, Criminal Justice, Employers often need a unpredictable. Metals Manufacturing, and Phlebotomy. After full-time of workers quick infusion trained in preliminary for students one term, gain training certain skills or possessing a particular certificates and can enter jobs in those fields. As these combination of knowledge and skills. of existing college part short-term modules are What's more, economic growth often programs, students are eligible for federal financial aid putting extreme very rapidly, occurs and WIA funding. pressure on local educational institutions to train sufficient numbers of qualified Julian L. Alssid, et al. Building a Career Pathways Source: System: Promising Practices in Community-College Centered applicants fast enough to satisfy demand. Workforce Development. Workforce Strategy Center, pg, 17, community colleges have Many August 2002. developed the capacity to modify or create curriculum in line with, or in some cases, in preparation for, employer needs. This is possible because the non-credit programs do not always fall under the regular for-credit governance of the college and are therefore not subject to the traditional curriculum approval process, which can take months or years to approve a new program. And while non-credit courses provide the most rapid response, community colleges taking the longer view will also begin to expand and evolve for-credit courses in key areas, focusing on longer-term economic trends. (Carnevale & Desroches 2001, Drury 2001, Gruber 2000, Thompson 1997, Payne & Williams-Foster 1997). Being adept at curricula development and modification. Community colleges are generally more nimble at creating and modifying curricula to address employer needs than Those colleges that develop courses quickly are better able to are four-year institutions. This is particularly true of areas respond to the needs of local workers and employers.