Addressing the Critical Workforce Training Needs of Ohio Businesses

--------------------------Jobs Challenge-----------------------

Addressing the Critical Workforce Training Needs of Ohio Businesses

Andrew D. Timothy

EDHE 788: Policy in Higher Education

Ohio University

May 23, 2005

The state of Ohio has a need to invest in human capital in order to be competitive in the workforce in the upcoming years. The need was identified and addressed by the Ohio General Assembly in 1999 to address the critical workforce training needs of Ohio businesses.

Description of the Program:

The Jobs Challenge, Regents’ line item 235-415, supports Ohio’s public two-year campuses. These campuses are referred to as the EnterpriseOhio Network. The EnterpriseOhio Network forms partnerships with employers to provide employee training and related workforce development services.

~The Issue~

By the year 2006 approximately half of the working population in the United States is estimated to be employed in industries that intensively utilize information technology products or services. A competitive company in today’s global economy must foster opportunities that allow for continuous improvement in quality and productivity.

Typical strategies for companies to invest in include capital equipment, longer work hours, and employee education. The University of Pennsylvania’s National Center on Educational Quality of Workforce found that investments in employee education increased productivity at a rate more than double that produced by a comparable investment in capital equipment.

The Ohio General Assembly recognized the need for an investment in human capital and thus created the Jobs Challenge. The creation of the Jobs Challenge allows the state of Ohio to improve the workforce within the state and at the same time attract other companies around the country and world to come to Ohio.

The 21^st Century Workforce Commission stated that the need for skilled human capital is the most critical need facing our nation’s economy.

EnterpriseOhio Network

Established in 1986
Consists of fifty-three community, technical, and university regional campuses
Provides workplace education, training, and other services
Jobs Challenge funds allows these campuses to provide affordable, accessible, and, customized worker training and assessment services to Ohio employers
Provide financial incentives for Ohio employers to invest in regular employee skill upgrading

Jobs Challenge Program

During the FY 2003 the Jobs Challenge Program was allotted $9.3 million by the General Assembly. This appropriation was used to fund three programs:

Performance Grants: Each EnterpriseOhio Network Campus is provided grants for the offering of local outreach services to local companies after the approval of the campus workforce development Performance Plan is granted with respect to a particular campus.

Higher Skills Incentive Program: Allows for campuses to earn an incentive grant based on their level of service to local employers. A percentage of the total allocation based on their campus total non-credit training revenue is given to the campuses.

Targeted Industries Training Grant Program: Encourages employers to invest in the skill upgrading of their employees by providing the employers with financial incentives. A partnership is formulated between the employer and a campus in an effort to create a training plan. Eligible small companies (100 employees or less) can receive up to 75% of training costs and large employers up to 50% in Targeted Industries Training Grant dollars for training costs. The partnership between the employer and campus continues for up to six months after the training services are completed in order to evaluate the impact of the services.

Current Employment Status in Ohio

The unemployment rate in the state of Ohio for April 2005 was 6.1%, down from 6.3% in March of 2005.

Of the 88 counties in the state 85% of the counties witnessed a decrease in unemployment rates.

The unemployment ranges for the counties in the state of Ohio reveal a 4.0% unemployment rate in Holmes County and a 10.6% unemployment rate in Pike County.

Ohio's non-farm wage and salary employment rose 6,400 over the month, from 5,416,100 in March to 5,422,500 in April.

Unemployment Rates
Area	Apr '05	Mar '05	Apr '04
Ohio	6.1%	6.3%	6.1%
Not Seasonally Adjusted	5.9%	6.7%	6.0%
U.S.	5.2%	5.2%	5.5%
Not Seasonally Adjusted	4.9%	5.4%	5.4%

Labor Market Info Classic, http://lmi.state.oh.us/index.htm

Civilian Labor Force Estimates: April 2005

http://lmi.state.oh.us/laus/ColorRateMap.pdf

Civilian Labor Force Estimates:

For Counties & Cities with Population Over 50,000: April 2005

http://lmi.state.oh.us/laus/OhioCivilianLaborForceEstimates.pdf

ODJFS Press Release

http://jfs.ohio.gov/releases/unemp/UnempPressRelease.htm

-Facts-

Network companies provided job-training services to 168,984 Ohio workers and 4,611 Ohio companies (FY 2002).

The affordable job-training opportunities have allowed Ohio companies to increase their commitments to employee training.

A Franklin County local automotive manufacturer was able to improve production efficiency and quality through a partnership formed with Columbus State Community College. The training program improved upon teamwork, problem solving, and aligned the work priorities with performance goals. The effect of this partnership allowed for a reduction in costs by more than $2 million, scrap decreased by 60%, absenteeism was reduced by 26 percent and turnover fell by 18 percent.

Resources & Links:

The Issue (Ohio Board of Regent’s Newsletter)

http://www.regents.state.oh.us/mainpages/issue-archives.html

Ohio Careers Resource Center

http://www.ohiocareers.com/

Ohio Jobs and Careers

http://www.careers.org/reg/crusa-oh-jobs-and-careers-in-ohio.html

Ohio Careers & Employment

http://ohio.stateads.com/classifieds.directory/3

21^st Century Workforce Commission

http://www.ilr.cornell.edu/library/downloads/keyWorkplaceDocuments/21stCenturyWorkforce/21stfinal_1.pdf