TEN-12-14_Acc.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION U.S. DEPARTMENT OF LABOR WASHINGTON D.C. 20210 TRAINING AND EMPLOYMENT NOTICE NO. 12 -14 DATE October 17 2014 TO AMERICAN JOB CENTER DIRECTORS STATE WORKFORCE AGENCIES STATE WORKFORCE ADMINISTRATORS STATE WORKFORCE LIAISONS STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS STATE AND LOCAL EQUAL OPPORTUNITY OFFICERS STATE LABOR COMMISSIONERS WORKFORCE INVESTMENT ACT SECTION 166 INDIAN AND NATIVE AMERICAN GRANTEES WORKFORCE INVESTMENT ACT SECTION 167 MIGRANT AND SEASONAL FARMWORKER JOBS PROGRAM GRANTEES SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM GRANTEES EMPLOYMENT AND TRAINING ADMINISTRATION REGIONAL ADMINISTRATORS JOB CORPS CONTRACTORS RECIPIENTS OF DEPARTMENT OF LABOR FINANCIAL ASSISTANCE SUB-RECIPIENTS OF DEPARTMENT OF LABOR FINANCIAL ASSISTANCE FROM PORTIA WU s Assistant Secretary SUBJECT Promising Practices and Resources for Addressing Long-Term Unemployment 1. Purpose. To inform the public workforce system and employers about affirmative efforts by employers employer organizations and workforce agencies to increase economic competitiveness by tapping into the talent pool of long-term unemployed individuals which includes many qualified experienced and skilled workers. And to encourage the workforce system through resources and information to assist the long-term unemployed in returning to work by a partnering with employers to implement promising human resources practices b targeting and expanding work-based learning models such as on-the-job training c offering specialized services such as financial counseling behavioral health counseling and enhanced job search assistance and d boosting job seeker outreach and engagement strategies to better reach the long-term unemployed. 2 2. References. White House Fact Sheet Getting Long-Term Unemployed Americans Back to Work dated October 15 2014 http www.whitehouse.gov the-press-office 2014 10 15 fact- sheet-getting-long-term-unemployed-americans-back-work Governmentwide Guidance to Ensure Fair Employment Opportunities for Applicants Who Are Unemployed or Facing Financial Difficulty Through No Fault of Their Own U.S. Office of Personnel Management dated October 14 2014 http chcoc.gov transmittals TransmittalDetails.aspx TransmittalID 6465 OPM Mythbuster on Federal Hiring Practices U.S. Office of Personnel Management October 2014 https hru.gov Studio Recruitment tools Mythbuster on Federal Hiring Policies.pdf White House Fact Sheet Opportunity For All The President s Call to Action to Give the Long-Term Unemployed a Fair Shot dated January 31 2014 http www.whitehouse.gov the-press-office 2014 01 31 fact-sheet-opportunity-all- president-s-call-action-give-long-term-unempl Best Practices for Recruiting and Hiring the Long-Term Unemployed issued by the White House dated January 31 2014 http www.whitehouse.gov sites default files docs best practices recruiting longterm unemployed.pdf Addressing the Negative Cycle of Long-Term Unemployment Executive Office of the President dated January 31 2014 http www.whitehouse.gov sites default files docs wh report addressing the negative cycle of long-term unemployment 1-31-14 - final3.pdf Presidential Memorandum Enhancing Safeguards to Prevent the Undue Denial of Federal Employment Opportunities to the Unemployed and Those Facing Financial Difficulty Through no Fault of Their Own issued January 31 2014 http www.whitehouse.gov the-press-office 2014 01 31 prevent-undue-denial-federal- employment-opportunities-unemployed-and-tho 20 Ready to Work Partnerships Grant Announcement and Project Summaries http www.dol.gov opa media press eta ETA20141956.htm Job-Driven National Emergency Grants Project Summaries http www.dol.gov opa media press eta ETA20141235.htm Online Toolkit for On-the-Job Training Building the Next Generation OJT Toolkit https ojttoolkit.workforce3one.org Training and Employment Guidance Letter TEGL 10-14 Update on Complying with Nondiscrimination Provisions Unemployment Status Restrictions and Possible Disparate Impact Based on Race National Origin Sex and Disability dated October 17 2014 http wdr.doleta.gov directives corr doc.cfm DOCN 7027 TEGL 11-14 Update on Complying with Nondiscrimination Provisions Credit History Restrictions and Possible Disparate Impact Based on Race National Origin Sex and Disability dated October 17 2014 http wdr.doleta.gov directives corr doc.cfm DOCN 9442 TEGL 31-11 Update on Complying with Nondiscrimination Provisions Criminal Record Restrictions and Disparate Impact Based on Race and National Origin dated May 25 2012 http wdr.doleta.gov directives corr doc.cfm DOCN 9230 3 Training and Employment Notice TEN 42-10 Encouraging Partnerships between the Workforce Investment System and Job Clubs to meet Career and Employment Needs dated May 20 2011 http wdr.doleta.gov directives corr doc.cfm DOCN 3026 A Guide to Recruiting and Hiring the Long-Term Unemployed A Handbook for Employers Deloitte Consulting in collaboration with The Rockefeller Foundation October 2014 https www.deloitte.com view en US us About social- impact 540aa1db85f58410VgnVCM3000003456f70aRCRD.htm New Guide New Destinations A Handbook for Job Seekers to Navigate Out of Long- Term Unemployment Deloitte Consulting in collaboration with The Rockefeller Foundation October 2014 https www.deloitte.com view en US us About social- impact 540aa1db85f58410VgnVCM3000003456f70aRCRD.htm Engage Your Community A Local Guide to Addressing the Long-Term Unemployment Challenge Deloitte Consulting in collaboration with The Rockefeller Foundation October 2014 https www.deloitte.com view en US us About social- impact 540aa1db85f58410VgnVCM3000003456f70aRCRD.htm The Long-Term Unemployed How to Make Sure You Are Not Overlooking Skilled Talent Guide for HR Society for Human Resources Management SHRM January 2014 http www.shrm.org hrdisciplines staffingmanagement Articles Documents 14- 0241LTUGuideforHR FNL.pdf and How to Effectively Market Yourself for a Job When You ve Been Long-Term Unemployed A guide for jobseekers Society for Human Resources Management SHRM January 2014 http www.shrm.org hrdisciplines staffingmanagement articles pages long-term- unemployed-jobseeker-guide.aspx . 3. Background. Long-term unemployment is a legacy of the Great Recession that continues to impact too many Americans. Many of these individuals were simply in the wrong place at the wrong time during the economic downturn and despite their qualifications experiences and skills have struggled to reclaim their place in the labor market. Employers stand to benefit by tapping into this talented labor force and the workforce system has an obligation to provide targeted assistance to this disadvantaged group of workers. Currently 3.0 million individuals in the U.S. labor market fall into the category of long-term unemployment defined as jobless for 27 weeks or longer. While this is a significant decrease from a peak of 6.8 million in April 2010 the long-term unemployment rate is still 1.9 percent more than double pre-recession levels. Meanwhile the unemployment rate for persons unemployed less than 27 weeks is 4.0 percent nearly identical to pre-recession levels. The currently elevated unemployment rate of 5.9 percent is driven almost entirely by long-term unemployment. In addition there is evidence that longer unemployment presents a higher barrier for job-seekers. Research has documented an unemployment cliff that exists between six and seven months of joblessness after six months of unemployment job seekers were far less likely to be called in by employers for an interview even if they had more experience and qualifications than job seekers 4 for the same positions who were unemployed for six months or less. 1 Employers may be hesitant to hire long-term unemployed individuals for a number of reasons such as a real or perceived decline in skills during extended periods of unemployment. In other cases employers may purposefully or inadvertently screen out long-term unemployed individuals based on characteristics these candidates may be more likely to exhibit compared to the employed or short-term unemployed such as recent resume gaps or affected credit. 2 While the long-term unemployed are disadvantaged by these practices so too are the employers who may overlook these candidates. Long-term unemployed job seekers are often highly qualified and a reliable source of skilled educated and experienced talent. By passing over these candidates employers may be unnecessarily diminishing their economic competitiveness along with the quality and productivity of their workforce. 4. Employer Partnerships and Human Resources Strategies. Many employers recognize the strengths that qualified long-term unemployed individuals can bring to their companies success. Earlier this year over 300 businesses including 20 Fortune 50 companies and 45 Fortune 200 companies committed to review their hiring policies and institute best practices for recruiting and hiring the long-term unemployed. These and other companies are also partnering with the public workforce system and other public and private organizations to implement human resources strategies that leverage the talents of the long-term unemployed. These employer practices and human resources strategies have been catalogued in recent guides for employers and human resources professionals including a new handbook by Deloitte Consulting in collaboration with the Rockefeller Foundation called A Guide to Recruiting and Hiring the Long-Term Unemployed and a guide released earlier this year by the Society for Human Resources Professionals SHRM called The Long-Term Unemployed How to Make Sure You Are Not Overlooking Skilled Talent. 3 In addition to information provided in these guides these practices and strategies are also being implemented through ETA grant investments. Examples of employer practices and strategies include the following Acknowledge the talents and value of the long-term unemployed Employers can take affirmative steps to embrace the long-term unemployed as valuable candidates and employees. For example the company leadership team can work with its human 1 Ghayad Rand The Jobless Trap Northeastern University and the Federal Reserve Bank of Boston presented at Massachusetts Institute of Technology Sloan School of Business May 2014 http instituteforcareertransitions.org 2014 05 08 the-jobless-trap-by-rand-ghayad . 2 For information on applicable legal requirements and employer best practices to avoid or minimize improper decisions based on an applicant s employment status or credit history please see TEGL 10-14 Update on Complying with Nondiscrimination Provisions Unemployment Status Restrictions and Possible Disparate Impact Based on Race National Origin Sex and Disability http wdr.doleta.gov directives corr doc.cfm DOCN 7027 and TEGL 11-14 Update on Complying with Nondiscrimination Provisions Credit History Restrictions and Possible Disparate Impact Based on Race National Origin Sex and Disability http wdr.doleta.gov directives corr doc.cfm DOCN 9442 . 3 The views expressed in the informational materials prepared by private sector organizations do not necessarily reflect official U.S. Department of Labor positions or policy. Inclusion of these materials does not represent an official endorsement by the U.S. Department of Labor of the organizations their programs products or services. 5 resources team to define diverse talent needs and make hiring the long-term unemployed as part of this strategy. To further this strategy employers can set targets to consider and hire the long-term unemployed. Employers can also provide systematic education and tools to hiring managers on the business value of hiring the long-term unemployed such as higher retention rates and greater employee loyalty. In addition companies can identify a committed senior leader who actively champions the value in recruiting and hiring the long-term unemployed. Outreach and recruitment strategies Employers can take steps to ensure that advertising does not discriminate against unemployed individuals. They can review recruiting and hiring screens and systems to ensure that long-term unemployed candidates are not automatically screened out. Companies can also adopt recruiting practices that encourage qualified long-term job seekers to apply. Such practices can include participating in job fairs and other recruitment or community events that target the long-term unemployed. Applicant review and hiring approaches Employers can adjust their review and hiring procedures to maximize talent acquisition while not inadvertently disqualifying highly qualified long-term unemployed individuals. For example companies can use skills- based approaches when making hiring decisions that balance objective measures of skills and skill level with recent work experience. They can also limit credit checks to those positions where relevant and then only for final round candidates abiding by applicable legal requirements. 4 Where credit checks are conducted employers can investigate the history behind a poor credit score and assess if the candidate has taken a good-faith effort to meet financial obligations. Onboarding strategies Employers can take a range of steps when making offers and onboarding new hires that can ensure long-term success for the company and worker alike. For example hiring managers can present offer packages to candidates that highlight the potential for an accelerated career path given strong performance. In addition employers can partner with employer organizations and workforce agencies as part of public and private programs to hire and train long-term unemployed individuals through on-the-job training programs Registered Apprenticeship and paid work experience opportunities discussed in more detail below. Finally employers can train incumbent workers for upgrade opportunities and backfill vacancies with long-tern unemployed candidates. Employers should be encouraged to share these best practices and human resources strategies with the broader business community. We also note that federal contractors are subject to specific nondiscrimination and affirmative action obligations. Nothing in this TEN is inconsistent with the obligations of federal contractors and subcontractors under Executive Order 11246 as amended Section 503 of the Rehabilitation Act as amended and 38 U.S.C. Section 4212 the Vietnam Era Veterans Readjustment Assistance Act as amended. Many groups protected by the Department of Labor Office of Federal Contract Compliance Programs laws are also disproportionately represented among the 4 For information on applicable legal requirements and employer best practices to avoid or minimize improper decisions based on an applicant s credit history please see TEGL 11-14 Update on Complying with Nondiscrimination Provisions Credit History Restrictions and Possible Disparate Impact Based on Race National Origin Sex and Disability http wdr.doleta.gov directives corr doc.cfm DOCN 9442 . 6 long-term unemployed and thus implementation of practices in the TEN could significantly aid contractors related outreach and recruitment efforts. 5. Work-Based Models. Work-based models can be an effective strategy to help the long-term unemployed return to work. On-the-job training OJT and Registered Apprenticeship are the most common models for combining work experience with training and skills development. These approaches benefit employers by limiting any real or perceived risks in hiring the long- term unemployed while helping the long-term unemployed transition back into the workforce refresh skills and build new skills and receive wages and compensation. Work-based training opportunities also provide the long-term unemployed an opportunity to fill employment gaps in their resumes gain first-hand experience at employer sites and establish a direct link to permanent employment especially for programs that may include commitments from employers to hire and or interview participants who complete work-based training assignments. ETA continues to encourage and invest in work-based models. Under Title I of the Workforce Investment Act the public workforce system may set up OJT programs with eligible employers and individuals. Under standard WIA guidelines employers may be reimbursed up to 50 percent of the wage rate of an OJT participant for the extraordinary costs of providing the training and additional supervision related to the OJT. 5 Many states have received waivers to reimburse employers up to 90 percent of the wage rate based on the employer size participant skills shortages and or participant length of employment. Certain ETA grants such as National Emergency Grants and H-1B training grants also allow for higher OJT reimbursement rates based on employer size especially to encourage opportunities for the long-term unemployed. For more information on OJT programs including guidance for setting up such programs visit https ojttoolkit.workforce3one.org . 6. Specialized Services. Public and private organizations and agencies have identified unique barriers facing the long-term unemployed and have incorporated specialized service strategies to address them. Such strategies include but are not limited to the following Intensive Assessment and Customized Service Tracks Long-term unemployed job seekers have a wide range of skills education work experiences and interests. ETA has invested in programs including through the recently awarded Ready to Work Partnership grants that provide an intensive up-front assessment to accurately analyze an individual s work experiences educational experiences and barriers to employment. These assessments are used to direct the individual to customized interventions based on their needs skills experiences and interests. Interventions are offered within three general service categories a direct job placement b short-term training and c accelerated training along a career pathway. 5 OJT is one of the many types of training that may be provided under WIA see section 134 d 4 D of WIA . Section 101 31 of WIA and 20 CFR 663.700-663.710 describe requirements that apply to OJT under WIA. The Workforce Innovation and Opportunity Act WIOA also includes OJT as a training strategy. See sections 3 44 and 134 c 3 D of WIOA. Most provisions of WIOA will go into effect beginning on July 1 2015. 7 Financial Counseling and Repair Services In many cases long-term unemployed individuals have fallen into financial hardship due to extended periods of lack of income to meet basic needs. In some cases programs serving the long-term unemployed focus on rebuilding financial stability through financial management workshops mortgage foreclosure prevention and other housing counseling assistance debt repair and reduction counseling and assistance accessing available federal and state income supports. Behavioral Health Counseling and Support Research has shown that long-term unemployment is often associated with loss of confidence and depression as well as anxiety poor self-esteem and low subjective well-being. 6 Programs serving the long- term unemployed build in a range of interventions to address these challenges including clinical counseling support group models and confidence-building exercises. Such interventions may be delivered through partnerships with behavioral and mental health organizations and community-based organizations. Enhanced Job Search Assistance In many cases long-term unemployed individuals rely on self-directed job searches using dated strategies and techniques. These job seekers may benefit from training on how to search and interview for a job in the contemporary labor market and with relevant tools such as social media and other technologies. Programs serving the long-term unemployed have incorporated enhanced job search assistance into their service offerings such as resume consultation networking advice and opportunities understanding how to read a job lead social media strategies LinkedIn labs and informational interviews with employers. Programs have also enlisted job coaches and human resources professionals to introduce job seekers to new industries and employers train them on how their skills and work experience translate to these industries conduct mock interviews about transferability and guide them through the job search and hiring process. These practices are currently being implemented in certain states and local areas by the public workforce system and through ETA-funded programs. In addition these and other practices have been catalogued in recent guides for job seekers including a new handbook created by Deloitte Consulting in collaboration with the Rockefeller Foundation New Guide New Destinations A Handbook for Job Seekers to Navigate Out of Long-Term Unemployment and a recent guide issued by SHRM How to Effectively Market Yourself for a Job When You ve Been Long-Term Unemployed A guide for jobseekers. 7 7. Job Seeker Engagement. One of the ongoing challenges in assisting the long-term unemployed has been recruiting engaging and enrolling these job seekers in services. In many cases these individuals may not actively seek out services from the public workforce system or other providers due to the stigma associated with long-term unemployment low self-esteem or other reasons. A recent survey found that only 9 percent of the long-term unemployed reported receiving help from a government agency when they were looking for a 6 Paul K. I. Moser K. Unemployment impairs mental health Meta-analysis Journal of Vocational Behavior 2009. 7 The views expressed in the informational materials prepared by private sector organizations do not necessarily reflect official U.S. Department of Labor positions or policy. Inclusion of these materials does not represent an official endorsement by the U.S. Department of Labor of the organizations their programs products or services. 8 job and only 4 percent say they were enrolled in a government-funded training program. 8 Several strategies for actively engaging long-term unemployed job seekers include the following Coordination with State Unemployment Insurance UI programs Programs can develop partnership agreements with UI agencies to support recruitment efforts by using state-funded job seeker and UI databases to identify long-term unemployed individuals whose UI benefits have expired or are close to expiring. In some cases states are including information about these local programs in correspondence to UI claimants nearing exhaustion. Targeted recruitment through human services income support and community-based programs Workforce organizations are recruiting long-term unemployed individuals through other systems and programs where these individuals are likely to receive assistance such as the Supplemental Nutrition Assistance Program SNAP or food stamps housing counseling programs and job clubs or support groups at faith-based and community organizations. Prevention strategies Another promising strategy for engaging the long-term unemployed is to provide responsive reemployment services to unemployed individuals before they reach the six-month mark including UI claimants with characteristics that are likely to result in long-term unemployment. Reemployment Eligibility Assessment Reemployment Services REA RES programs managed by state UI agencies have proven to be an effective model especially when integrated with WIA services to help UI claimants return to work. In one recent study the REA RES program was credited with reducing average UI benefits duration by 3.4 weeks. 9 These programs have proven effective in preventing unemployed individuals from becoming long-term unemployed. 8. Action Requested. ETA encourages the public workforce system and ETA grantees to share this TEN with partners employers and other interested stakeholders to review the resources and promising practices referenced in this TEN and where appropriate and feasible to incorporate them into targeted service delivery strategies for the long-term unemployed and assist employers and other partners in using and implementing them. 9. Inquiries. Questions on this TEN may be directed to the appropriate ETA Regional Offices or contact Ben Seigel at seigel.benjamin dol.gov . 8 Van Horn Carl Left Behind The Long-term Unemployed Struggle in an Improving Economy Heldrich Center for Workforce Development September 2014 http heldrich.rutgers.edu sites default files products uploads Work Trends September 2014 0.pdf . 9 Michaelides Marios Are Reemployment Services Effective in Periods of High Unemployment Experimental Evidence from the Great Recession December 2013.