Facilitating Solutions for Business and Industry…….

WORKFORCE DEVELOPMENTIN

“FOUR STEPS”

Tim JohnsonPresident

The TJC Group

Historic Demand for Industrial Craft Workers

Historic Demand for Industrial Craft Workers

• $60 billion of announced plant expansions and new plants in Louisiana*– Driven by low price of

natural gas and greatly improved business climate

• 86,300 new crafts workers needed through 2016 in Louisiana– 35,000 new jobs– 51,300 jobs available

because of attrition

3

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

70,000

80,000

90,000

100,000

110,000

120,000

130,000

140,000

YearC

on

str

uc

tio

n E

mp

loy

me

nt

Source: LSU Division of Economic Development, Louisiana Workforce Commission and Louisiana Economic Development

Facilitating Solutions for Business and Industry…..

Facilitating Solutions for Business and Industry…….

A Global Issue

“Nearly half of what will be the built environment in 2030 doesn’t exist yet.”

Brookings Institution Metropolitan Policy Program Report

A SHRINKING POOL?

will shrink in comparison to adult population

will grow faster than total population

>65

<18

Youth Demographic

Facilitating Solutions for Business and Industry…….

Workforce Development in the United StatesTHE WORKFORCE GAP

Why Career and Technical Education is Critical

SOURCE: Carol D’Amico,” Workforce 2020: Work & Workers in the 21st Century”

Average Mechanical Wages & Per Diems

Facilitating Solutions for Business and Industry…….

A CRISIS SITUATION

Are we running for running for our lives??

Facilitating Solutions for Business and Industry…….

Workforce Development In Four Steps

• Four Elements of WFD• Forecasting (Demand and Supply)• Career Awareness and Recruiting • Training (Also skill upgrade)• Employing (In developed career paths)

Facilitating Solutions for Business and Industry…….

STEP 1 - FORECASTINGFORECASTING

• Accurate analysis of demand

• Accurate analysis of supply

• Granular and specific

• Construction Labor Market Analyzer

• Over $3B of project data in the system

• www.myclma.com

CLMA® Forecasted Need by 2017

A nationwide shortage of as many as

2,000,000workers is looming and

project planning will become increasingly more

difficult.

www.myCLMA.com

An estimated

17% of the

construction workforce will

retire in the next 5 years

The REALITY (Aging Workforce – Construction)

Facilitating Solutions for Business and Industry…….

STEP 2 - CAREER AWARENESS - RECRUITINGCAREER AWARENESS AND RECRUTING

The mission of the Build Your Future campaign is to narrow the skills gap by guiding America’s youth and displaced workers into

opportunities for advanced education and training, that lead to long-term rewarding careers in construction.

• NCCER’s National, “grass-roots” initiative• Direct connection to instructors and students• Proven success• Changing public policy & public perception• www.BYF.org

CURT Workforce Development Award WinnerBYF has already reached 35 million students!

Facilitating Solutions for Business and Industry…….

STEP 3 - TRAINING

TRAINING

• Must move recruits in to world class high standards training programs

• Must provide industry based certifications

• Raises the level of esteem of the construction craft professional

• NCCER – Over 700 accredited sponsors providing training and assessments in almost 6,000 locations in the United States

• Realized return on investment

WFD - Return on Investment

SOURCE: Construction Industry Institute (CII). RT231-1 “Construction Industry Craft Training in the United States & Canada” (Aug 2007)

The Construction Industry Institute (CII) study assumes an investment of 1.0% of the total project budget for wages / labor

Facilitating Solutions for Business and Industry…….

NCCER Provides the Resources & Solutions

Resources Include

• Accreditation• Instructor Certification• Standardized Industry-Driven Curricula• Nationally Recognized Skill Assessments• Industry-Recognized Credentialing & Certification• Construction Career/Recruiting Resources• Construction Safety & Front-line Management Education

16

NCCER - Types of Craft Training Industry Association/Community Programs

• Apprenticeship• Traditional Craft Training (full & task)

Construction and Maintenance• Regional/Corporate Training Center• Site/Project-Based

Government Education• Department of Education

o School-Based CTE Secondary CTE

- Public & Charter High School- Adult Education

Public Post-secondary- Community & Technical College

Career/Proprietary (For-profit)• Department of Corrections• Department of Labor Grant Programs

Organized Labor

Owner – Maintenance

NCCER Standardized Construction and Maintenance Curricula

• 35 Construction and Maintenance Craft Areas• 8 Power Areas• 6 Sustainable Titles• 8 Pipeline and Pipeline Maintenance Craft Areas • 6 Safety and Management Titles• Maritime and Manufacturing• Available in Other Languages

Assessment vs. Training

Knowledge Verified

Journey-level AssessmentNCCER Core Curriculum

EXPERIENCED CRAFTSPERSON

Certificate of Recognition

NCCER Craft Curricula

Performance Verified

Optional

CRAFT TRAININGCRAFT ASSESSMENT

Certified - Plus

ENTRY-LEVELCRAFTSPERSON

Assessed Training Prescribed

Certified Plus

Performance Verified

January 1, 2015All Craft persons who have not

achieved Certified Plus, will revert to Knowledge Verified

Knowledge Verified

Certified Plus

Performance Verified

January 1, 2013All Experienced

Craft persons taking the test for the first time

Knowledge Verified

National Craft Assessment and Certification Process – Next Step

1. Start at the Top– Assign Industry Senior Management As Program Sponsors– Prepare Cost/Benefit Metrics To Identify ROI

2. Conduct a Needs Analysis– Have Industry (Plant/Project Manager, Supervisors, etc.) Articulate

Desired Outcomes• Identify Core Company Skills, As Well As Skill Deficiencies

– Provoke Interest & “Buy-In” – Involve All Levels Of Employees– Report Results Back To “Stakeholders”

3. Market Workforce Programs– Conduct A Briefing With Supervision

• And have the Project Manager Host The Briefing• Discuss Benefits Of Training To Trainees And Supervisors

– Reinforce New Skills And Behavior

Ten Steps for Best Practice

4. Bring the Workplace Into Training– Encourage Discussion Of Problems And Situations That Workers

Encounter On The Job– Correlate Training To Job Activities

5. Utilize Peers Instructors– Identify Supportive (Passionate) Plant/Project Supervisors and

Retirees & Target Them For Instructor Positions• Provide Instructor Certification Training Program (ICTP)

– Also Identify & Reward “Superior” Journey-/Technician-level• Compensate Instructors!

6. Assign A Training Director– A Champion – Ambassador to the cause

Ten Steps for Best Practice

7. Begin Small…Ensure Success– Every Plant, Facility or Project Should Have A Workforce

Development Plan– Recruiting, Staffing And Training Should Be An Integral Part Of The

Plan• Career & Technical Program Graduates• Minority and Female• Veterans

– Correlate Pay To Performance And Skill Competence– Include Management & Safety Training– Pre-Employment Training Enhances Positive Community Relations

Ten Steps for Best Practice

8. Take Training Back To The Workplace– Assign Employees’ Job Descriptions That Correlate To Their Training– Reward Those Who Gain New Skills

9. Measure Results For R.O.I– With Industry – Develop Action Plans (Metrics) To Measure Training

Effectiveness• Identify Cost Savings/Cost Avoidance

– Improved P/F– Reduced Re-Work – Improved Safety Performance– Reduced Turnover And Absenteeism– Improved Morale/Teamwork

10. Market Successes

Ten Steps for Best Practice

Facilitating Solutions for Business and Industry…….

STEP 4 - EMPLOYINGEMPLOYING

• The “Good Luck” approach is no longer acceptable

• Systematic process to move young people from training to careers

• Not a “job on a project” but a “career in an industry”

• Mentoring

• Onboarding

• Work-Life satisfaction issues

Facilitating Solutions for Business and Industry…….

THANK YOU!Tim Johnson

PresidentThe TJC Group

www.thetjcgroup.comtim.johnson@thetjcgroup.com

(225) 757-5527