Generation Overview - Constant...

Generation Overview

MCKINSEY SOCIAL INITIATIVE 4

GENERATION OVERVIEW

2

Established in 2015, Generation seeks to close

the skills gap for young people.

Our mission is to empower young people to build

thriving, sustainable careers and provide

employers the highly skilled, motivated

talent they need.

Our vision is to enable a career-launching job for every young person, anywhere in the world

3

WHAT IS GENERATION?

Generation is built upon deep research into the

best ways to address youth unemployment

• McKinsey & Company study of

150 employment programs in

25 countries, and surveys of

over 15,000 employers,

educators, and young people

• Education to Employment:

Designing a System that

Works report summarizes

findings

• Independent nonprofit

McKinsey Social Initiative

(MSI) founded by McKinsey

& Company

• Youth unemployment chosen

as first issue for MSI:

Generation is born.

• Generation is live

across five countries

(India, Kenya, Mexico,

Spain, and US), with

rapid expansion on the

horizon

2013 TODAY2014

3

4

HOW WILL WE ACHIEVE OUR GOALS?

Generation addresses two areas of need for

the youth employment field

WHAT IS GENERATION?

What kind of jobs do we target for our

students?

• High growth industries and/or high

employer demand

• Medium skill level required, possible to

fully train in a 5-12 week program

• Provides a livable wage (i.e., above local

minimum wage) and viable career

• Interesting and attractive to young

people in our target population

• Marked by high scarcity or high churn,

so that employers are committed to

closing the existing skills gap

5

6MCKINSEY SOCIAL INITIATIVE

GENERATION OVERVIEW

Generation’s programs are designed to create

disruptive impact along the value chain

6

Gen

era

tio

n In

terv

en

tio

ns

Ind

us

try G

ap

s Business case

not established

Unresolved

student

pain points

Mismatch in

demand and

supply

Limited

screening for

learners

Low

relevance for

employers

Direct employer

engagement

right from the

start to pre-

commit job

slots in high-

demand/scarci

ty middle skill

professions

Detailed

activity and

skill mapping

at employers;

curriculum

designed that

weaves

together

technical,

behavioral and

mindset skills

Recruit

students based

on basics (e.g.

literacy,

numeracy),

intrinsics, and

motivation

Social support

services for

those in need,

mentorship

during and after

training, and

mapping

students to jobs

based on where

they live

Rapid delivery

through 4-12

week

bootcamps;

quality of

instruction

managed

through weekly

performance

checks, in-class

cameras, and

remote

coaching

Employer ROI

performance

(productivity,

quality,

retention)

tracked at place

of work, as well

as graduate

ROI (personal

and financial

well-being) via

Gallup

Inadequate

learning during

training

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The Generation approach has seven

components

GENERATION OVERVIEW

A community that

follows graduates into

the workplace

5-12 weeks of

technical, behavioral,

mindset & professional

presence skill training

Social support services &

mentorship along the way

Jobs & direct employer

engagement from the start

Recruit students based

on intrinsics, effort, and

employment standards

for the profession

Return on investment

for employers, students,

and society

Data at

the center

1

3

4

5

26

7

8

Generation runs six programs across ten US

cities

GENERATION OVERVIEW

Current cities and programs

Current cities

Wilmington, DE

Atlanta, GA

Houston, TX Jacksonville, FL

San Francisco, CA

San Jose, CA Las Vegas, NV

Healthcare Customer serviceInformation

TechnologyCraft professions

▪ Certified nursing assistant ▪ Customer service rep

▪ Hotel front desk clerk

▪ Call center operator

▪ IT Help Desk technician ▪ Construction helper

Miami, FL

Washington DC

Birmingham, AL

Generation continues to develop new programs, and can launch an entirely new profession in 12-18 weeks


85%81%307Employment rateGraduation rate

87%Retention rate at

three monthsEmployer partners

GENERATION OVERVIEW

Generation US has graduated over 81% of enrolled

students and placed 85% of those grads in jobs, with

87% retention at three months post-placement

241400 60 6Training sites Enrollments Cohorts Professional

programs


Generation US works with disconnected youth who face

a range of barriers to employment and well-being

The typical Generation student Generation US student pool overall

Gender Female 58% female, 42% male

Race African-American 68% African-American, 17% Hispanic or Latino, 7%

Asian-American, and 7% Caucasian or other

Age 22 years old Range from 18 to 29 years old, with the average being

22 years old

Marital

status

Single 87% single, widowed, or divorced; 13% married or in a

relationship

Education High School diploma or GED, but no

higher education

4% have no high school diploma or GED; 62% have

completed high school or GED only; 22% have some

higher education; and 12% have completed some form

of higher education

Income Earning $746 per month and receiving

government assistance

Average income is ~$9k annually; 99% of single parents

are legally in poverty before the program

Family May have children 31% have children; that 31% on average has 1.74

children

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GENERATION OVERVIEW


ROI for graduates (data gathered by Gallup and Generation)

Generation delivers a positive ROI for US graduates

1 Comp TIA A+ Certification

Generation graduates report

higher well-being than their

peers

• Gallup’s well-being survey

of Generation graduates

and their non-Generation

peers shows that

Generation graduates are

twice as likely to report that

they are “thriving” in terms

of life purpose

Generation graduates

outperform peers in

certification exams

• For CNA, graduates have a

93% certification pass

rate compared to a 50%

national average

• For IT, graduates have a

75% certification pass

rate compared to a 33%

national average1

• For construction, graduates

have a 100% pass rate

Generation graduates’ income

increased by 2.5x after the

Generation program

• The average Generation US

student’s income increased

from $746/month before

Generation to $1,800/month

after Generation

• The majority of Generation

graduates earn above

average income relative to

the US national youth

population

Certifications Income Well-being

GENERATION US IMPACT TO DATE

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ROI for employers (data gathered by Gallup and Generation)

Generation demonstrates ROI for employers

Generation graduates add value to employers’ bottom

line through several levers

• Hiring and onboarding: Employers save ~50% of

hiring and on-boarding costs

• Productivity and performance: The majority of our

graduates are rated as “good” or “best” performers

(85% in customer service, 76% in CNA)

• Retention: Generation graduates have higher

retention rates (59% retention after 6 months in

customer service, compared to 50% industry average)

• Tax Credits: 50% of graduates qualify for the Work

Opportunity Tax Credit, worth $2400 in year one and

an additional $9600 after year two

Financial ROI Supervisor satisfaction1

• 94% of supervisors would recommend their

employer hire Generation graduates again

• 83% of Generation graduates were ranked above

average relative to non-Generation employees

with similar levels of experience

• 93% of graduates were recognized for complying

with safety/regulatory practices

• 82% of customer service graduates were

significantly better at establishing a warm and

welcoming environment according to supervisors

For CNA, each Generation graduate yields ~$5,300 in value to the employer in the first year 2

For call centers, each Generation graduate yields ~$3,800 in value to the employer in the first year


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Our Customer Service program has run in eight

cities across the US with over 600 graduates


Program

Description

5-week training for 25 students, delivered as General Customer Service or for specific

industries

Graduates placed in retail, hospitality, and call centers

Our

coalition

The Wal-Mart Foundation and multiple philanthropies have supported this program, for

entry-level and incumbent workers

Curriculum

details

Technical skills for customer service: Safety standards, cash handling, workplace oversight,

people leadership

Behavioral skills for customer service: Professionalism, adaptability, communication, and

teamwork

Mindsets for long-term success: Growth mindset, personal responsibility, future orientation,

persistence

Specific simulations in the program: Helping an upset customer, cross-selling and up-selling,

multi-tasking while engaging customers

Graduates to Date Graduation rate Placement Rate1

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1 Includes graduates both employed and enrolled in higher education

686 78% 84%

14

Our IT Helpdesk program has run successfully

in Jacksonville, Miami, San Jose, and Birmingham


Program

Description

10-12 week training for 25 students taught by a certified instructor

Graduates earn certification in CompTIA A+ and Network+

Our

coalition

Miami funded by TechHire grant in partnership with Miami Dade College

Birmingham funded by America’s Promise Grant in partnership with University of Alabama

Jacksonville program funded for three years by CareerSource of Northeast Florida

Curriculum

details

Hardware skills: Inside of a computer, motherboards, CPUs, RAM and memory, printers,

hard drives and peripherals, mobile devices, laptops

Software skills: Installing and configuring Windows, cloud computing, mobile operating

systems, configuring email, security settings

Behavioral skills: teamwork, adaptability, customer focus, communication


persistence

Customer service skills: Tickets and ticketing systems, prioritizing and elevating tickets,

addressing a client, client-friendly communication, assisting an upset client

Graduates to Date Graduation rate Placement Rate

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232 87% 90%

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Our CNA program has run successfully in

Wilmington, Pittsburgh, and San Jose


Program

Description

8-week training for 16 students taught by certified CNA instructors, including 80 hours

internship in a healthcare facility

Graduates earn certification to be nursing assistants

Our

coalition

Delaware WIB, local philanthropies, and local employers are funding programs for 120

graduates in the next 18 months

Curriculum

details

CNA Technical skills: Lab equipment and beds, fluids, oxygen needs, wounds,

emergencies, end of life care

Behavioral skills for CNA: Compassion, teamwork, adaptability, professionalism,

communication, emotional consistency


persistence

CNA Fundamentals: Patients' rights, flow sheets, safety, hygiene


15

134 89% 89%

16

Our Craft Professions program has run

successfully in Houston


Program

Description

4 week training for 18-25 students taught by a certified instructor

Graduates earn NCCER Core certification (and OSHA-10 certification if desired in region)

Our

coalition

The United Way, the Greater Houston Partnership, and the local WIB are supporting /

funding the program

8 employers are also supporting the program (committed to hiring and interviewing

graduates)

Curriculum

details

Technical skills: Construction math, Safety rules and protocols, Power tools, Material

handling, Hand tools, Construction drawing

Behavioral skills: communication, proactivity, teamwork

Mindsets for long-term success: Personal responsibility, future orientation, growth,

persistence


16

89%

1 The first cohort graduated in Winter 2016 and are being placed now

1 7 89%

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Case study: Generation exclusively places CNAs with one

employer in Delaware

Hiring: Recruiting enough

CNAs required significant

time investment of

recruiters (e.g., hundreds

of applications, frequent

interview no-shows, 1:5

offer to interview ratio)

Performance: Frequent

customer complaints

resulting from CNAs with

under-developed soft

skills, low ownership, and

lacking teamwork

Turnover: 75% turnover,

with top-performing CNAs

leaving to work at other

employers for more pay

and a “better culture”

Employer context

Hiring: Recruiters save significant time

because they have predictable pipeline with

a 4:5 offer to interview ratio

Performance: 71% of Generation

graduates outperform their peers, and 96%

of shift supervisors recommend hiring from

Generation again. Generation graduates

particularly regarded for their soft skills and

teamwork

Turnover: 11% turnover of Generation

graduates at 90 days. Employer now offers

annual bonuses to retain Generation

graduates

Tax Credits: 50% of Generation graduates

qualify for Work Opportunity Tax Credits,

worth $2,400 in the year of hiring and

$9,600 after two years of retention

Impact of Generation partnership

LAUNCHING AND SUPPORTING GENERATION

Our employer partner

now pays 40% of the

cost of training per

hire

Employer engages

closely in helping to

select and prepare

students during the

program

Sustaining success

18

Case study: Generation builds recruitment, training, and retention

platform for national employer of direct support professionals

Hiring: Employer cannot

recruit enough direct

support professionals1

(DSP)

Performance: New DSPs

consistently felt under-

prepared by existing

training program,

threatening client

satisfaction and safety

Turnover: High turnover

drives 30% of labor cost

going to overtime pay

Employer need: Given the

breadth of needs

throughout the company,

this employer contacted

Generation to provide an

end-to-end solution

Employer context

Hiring: Generation is working with

employer’s staff to build a recruitment

model that can attract opportunity youth

to the company

Performance: Generation is designing a

custom curriculum to train for this role,

based on observations of best practices

and breakdown moments, as well as

interviews with top performers and their

managers. The curriculum will integrate

the technical skills, soft skills, and

mindsets students need to be top-

performers

Turnover: Generation training

employer’s staff to mentor employees to

help them overcome barriers to retention

Impact of Generation partnership

LAUNCHING AND SUPPORTING GENERATION

Via a 3-cohort pilot,

Generation will refine

the curriculum and

methodology to

deliver sufficient

financial impact to

cover the cost of

training

Following a successful

pilot, this program will

be scaled throughout

New Jersey, then to

Pennsylvania and

eventually nationwide

Sustaining success

1 Direct Support Professionals work with people who have cognitive disabilities. Tasks vary based on the client, but include helping with everyday tasks

like shopping, anticipating and navigating challenging situations for the client, and ensuring the safety and well-being of the client, including practicing

physical restraint if necessary

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Our funders and employers nationwide

OUR PARTNERS

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Funders

1 These employers have hired at least 3 Generation graduates

Employers1

MCKINSEY SOCIAL INITIATIVE

WILL YOU BE PART OF THE CHANGE?

Change lives.

Transform business.

Make Generation a movement.

Help us change a million lives,

and bring vibrant new talent into

our workforce for the long term.

20

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