Skillful, A Markle Initiative

American’s Challenge: Helping Workers and Businesses Thrive in a Changing Economy Technological change and automation are reshaping the economic landscape and affecting the skills needed to compete for good jobs.

A growing skills gap hurts workers and businesses Proportion of jobs at high risk of being impacted by automation

Source: BLS data, Frey & Osborne likelihood of automation. 'High-risk' defined as >=90% likelihood.

As technology and automation disrupts sectors, the skills required for jobs are changing.

30%

38%

.

The Opportunity

Our economy is undergoing the most significant transformation since the Industrial Revolution – leaving employers and the American workforce stranded.

To prepare the economy for the jobs of the future, every sector needs to play a role:

WORKERS Need new skills to access

new opportunities

EDUCATORS Need to prepare every worker

for 21st century jobs

BUSINESSES Need skilled workers to

innovate and grow

Reimagining the Workforce of the Future: A Skills-Based Labor Market

Proposal: Build a skills-based labor market To position the economy for success in the 21st century, we need to wholly rethink the way our labor market works. A skills-based labor market will make it easier for job-seekers of all kinds to acquire skills to compete for in-demand jobs, and agility to respond to changing demands.

PILLARS OF A SKILLS-BASED LABOR MARKET

REWARD SKILLS, NOT DEGREES

Workers should be rewarded based on their ability to do the

work–their skills–rather than degrees.

VALUE ALL PATHWAYS

A four-year degree isn’t an option for

everyone. Workers need multiple viable

pathways into a career.

SUPPORT LIFELONG LEARNING

Workers need training throughout their

careers to adapt to trends we cannot

yet anticipate.

CREATING A SKILLS-BASED LABOR MARKET WILL: Deepen the talent pool for employers

Increase diversity in the workplace

Sharpen our competitive edge

Unlock prosperity for everyone

Testing A Skills-Based Labor Market: Skillful Colorado In 2016, Markle launched Skillful, an on-the ground experiment with Microsoft and the state of Colorado to build a skills-based labor market and learn lessons that can be applied to other states.

The Skillful Approach • Aligning the efforts of stakeholders from public

and private sectors • Focused on the 7 in 10 Coloradans without a BA • Approach informed by data, on-the-ground

research • Harnesses new technology to help workers and

employers thrive

Key initiatives • Work with public and private employers to

implement skills-based practices, strengthen applicant pool and reduce time to hire

• Help job seekers use data to identify the training program that’s right for them

• Build a state network of elite career coaches

“In a short time, Colorado’s partnership with Skillful has provided incredible value in supporting a skills- based, industry-driven talent marketplace.” –John Hickenlooper, Governor

Aligning the Entire Ecosystem Maximizing impact takes more than just aligning the public sector. Educators, employers, job-coaches, job-seekers, philanthropy, and government must all work together towards a common goal.

Key questions to ask: • What barriers prevent people within and across segments from working together? • Is there a coordinating body or effort in workforce and education that can lead the charge? • Who are the most innovative, influential, leaders in the labor market, and how can they be engaged? • How can you build on the work already underway in your state? Key Stakeholders

EMPLOYERS: • Associations and

chambers • HR professionals • Staffing agencies

EDUCATORS: • Community

Colleges • CTE programs • On-line training

providers • Credentialing

agencies • Education

financing groups JOB-SEEKERS: • Online job sites • Unions • Community orgs (e.g. religious groups)

GOVERNMENT: • Federal agency

representatives • State workforce initiatives • State and local workforce

boards • Local government offices • Economic development

offices

COACHES: • Non-profit training providers • Career coaches and

navigators • Community based

organizations providing social services linked to employment (housing, childcare, transportation)

Skillful is focused on five primary integrated impact initiatives Four cross-cutting streams that support Colorado at scale and sustainability in additional states

Skillful Colorado's Primary Impact Initiatives:

Employer

▶ Drive broad interest and adoption of skills-based practices among CO employers through partnerships and by leveraging existing infrastructure

▶ Execute tailored strategies for small/medium employers, large employers, and State hiring; disseminate promising practices, tools, and training

Coaching ▶ Launch the Governor’s Coaching Corps and coaching Community of Practice to invest in

coaches and advance leading practices amongst Colorado career coaches

Data

▶ Explore ways to drive increased transparency and data around educational outcomes, e.g., via supporting API pilot on outcomes data

▶ Make data accessible to job seekers via better tools

Educator ▶ Develop strategy to work with sector partnership to foster innovative and technologically

driven efforts (e.g., new delivery models, credentials)

Job Seeker

▶ Pursue partnerships with community organizations supporting middle-skill job seekers, especially under-represented groups, to drive better outcomes for these groups and provide learnings that can be replicated

Skillful is focused on sustainability initiatives nationally Four cross-cutting streams that support Colorado at scale and sustainability in additional states

Tools & Digital Transformation

Develop, expand, and pilot tools to support the creation of a skills-based labor market Portfolio includes ▶ Skillful State Playbook: curate and

productize existing and forthcoming Skillful assets

▶ Refinement of Pilot tools: Test and scale existing tools

▶ Skillful product platform vision: Pursue partnerships to create optimal job seeker journey

State Expansion Rework America TF

Dissemination

Dissemination

Build momentum towards a skills-based labor market for stakeholders nationwide through ▶ Outreach and public education

supported by storytelling, a digital strategy and dissemination of the Skillful State Playbook and

▶ Large scale gatherings that support and

accelerate the movement toward skills-based practices

State Expansion

Expand Skillful operations and practices by: ▶ Implementation States: Expand on-the-

ground Skillful operations to additional states to directly increase Skillful’s impact and expand our learnings and effectiveness

▶ Skillful State Network: Establish a strong cohort of states to launch skills-based projects enabled by the Skillful State Playbook and serve as connector of innovative, skills-based workforce efforts nationwide

Rework America Task Force

Leverage Skillful as a key input and learning laboratory to:

Pursue pilot initiatives, industry commitments, and policy solutions that build

towards a skills-based labor market

Building a National Movement: The Skillful State Network

Inspired to learn from early successes in Colorado, 20 governors formed the Skillful State Network, a nonpartisan network focused on learning new approaches to modernizing state labor markets.

Founding Members of the Skillful State Network: Arkansas Gov Asa Hutchinson Colorado Gov John Hickenlooper Delaware Gov John Carney Illinois Gov Bruce Rauner Indiana Gov Eric Holcomb Massachusetts Gov Charlie Baker Montana Gov Steve Bullock New Jersey Gov Phil Murphy North Carolina Gov Roy Cooper North Dakota Gov Doug Burgum

Ohio Gov John Kasich Oklahoma Gov Marry Fallin Rhode Island Gov Gina Raimondo South Dakota Gov Denis Daugaard Tennessee Gov Bill Haslam Utah Gov Gary Herbert Vermont Gov Phil Scott Virginia Gov Ralph Northam Washington Gov Jay Inslee Wisconsin Gov Scott Walker

A four-year degree isn’t the only path to a fulfilling career”…“Business leaders have told us they are looking for talent in everything from information technology to health care. We must connect students to great employers and high-quality job training.” Gov. Jay Inslee (D)- WA

“As the global economy transforms, so must our workforce. That requires leveraging all of our capabilities to better coordinate our industries and education as one. -- Governor John Kasich (R)- OH

We Will Draw from the Skillful State Playbook The Skillful State Playbook offers tools and resources jointly developed by Skillful, the state of Colorado, and numerous community organizations, employers, and educators in the state. We hope that the Playbook will be establish a model for open sharing of best labor market practices.

Playbook Tools and Topics 1. Build Your Coalition 2. Identify Your Hot Jobs 3. Helping Employers Hire

Based on Competencies 4. Enable Educators to Teach

to Competencies 5. Empower Coaches to Better

Assist Job Seekers 6. Empower Job Seekers to

Transition to Skills-based Labor Markets

7. Assess Your Policy Levers The Skillful Theory of Change

1 Engaging employers, educators, trainers, coaches, and jobseekers to help them adopt skills-based practices.

2 Breaking down the traditional barriers between these sectors and helping integrate their efforts to achieve true systems-level change.

Skills as the New Currency

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Objectives

Understand skills-based hiring

Design your internship role

Create an onboarding and development plan for your intern

Overview of Skills-Based Hiring

Methodology

Remove credential requirements when possible

Use competencies specific to the job

Reduce bias

Benefits

Helps you find talent in a tight labor market

Provides consistency

Inclusive to all qualified applicants

How is a Skills-Based Job Posting Different?

Traditional Job Posting

Uses proxies (degrees, work experience) to assume skill mastery.

Includes a laundry list of requirements

Uses language that may contain unintentional biases

Skills-Based Job Posting

Uses skills that are needed to do the job.

Clearly distinguishes between required and trainable skills.

Uses thoughtful language to reduce bias

Manufacturing Talent Loss in Traditional Hiring

1,864,300 labor force in Oklahoma1

456,754 available applicants

75.5% eliminated with degree requirement2

319,727 available applicants

30% eliminated by bias3

25,578 available applicants

92% eliminated due to lack of manufacturing experience4

18,416 available applicants 72% are unemployed or actively seeking work5

Estimated only 18,416 potential applicants or 1.0% of the total Oklahoma labor force are available using traditional hiring practices when hiring for a manufacturing job.

Workforce Availability for Manufacturing Workers

6 Source: EMSI Data Pull: Oklahoma, Oct. 2018

Similar Skill Match

7 Source: EMSI Data Pull: Oklahoma, Oct. 2018

8

Similar Skill Match by Occupation

Source: EMSI Data Pull: Oklahoma, Oct. 2018

Why Skills-Based Hiring

Credential vs. Competency

Credential

Bachelor’s Degree

5 years of work experience

Competency

Communication

Coding

Management

Occupational vs. Foundational Occupational Specific to the occupation or industry

Examples:

Coding

Manufacturing processes

Patient care

Foundational Professional knowledge and skills transferable from one job to other

Examples:

Public speaking

Critical thinking

Collaboration

Academics

Technical Skills Experience

SOURCE: Stanford Research Institute International and the Carnegie Melon Foundation

Required vs. Preferred

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Skills-based Talent Development

Fundamentals

Understand short and long-term skill gaps and needs

Provide development specific to your need

Inclusive process

Benefits

Improve retention

Helps you fill hard to fill positions

Improves productivity

Retention is a talent development issue