Incumbent Worker Training: a Key Job Placement Strategy David Rubin Vermont Green Energy Training Partnership Tom Morgan Colorado State Energy Sector Partnership September 13, 2011

From the USDOL SGA: “Projects will provide training and placement services in the energy efficiency and renewable energy industries for workers impacted by national energy and environmental policy, individuals in need of updated training related to the energy efficiency and renewable energy industries, and unemployed workers.” – Federal Register Vol. 74, No. 120, 6/24/2009

“The importance of education and training programs to unionized manufacturers and their workers cannot be overstated. To remain competitive in a hostile trade environment with a relatively high-wage workforce, manufacturing firms need to maintain a high level of technological innovation.” - w.asp w.asp Incumbent workers at Country Home Products were trained in manufacturing techniques for a new solar thermal line.

“Improving the skill levels of incumbent workers can yield substantial gains to the competitiveness of businesses and ultimately to revitalizing distressed metropolitan areas….Businesses repeatedly cite a qualified workforce as one of their top priorities in locating new businesses and in expanding existing businesses.” papers/2010/0927_great_lakes/0927_grea t_lakes_papers/0927_great_lakes_workfor ce.pdfhttp:// papers/2010/0927_great_lakes/0927_grea t_lakes_papers/0927_great_lakes_workfor ce.pdf Installing a solar tracker in Vermont.

Low-wage workers “A recent study found that there is a role for public policy to play in promoting workforce education and training for low-wage workers. This is because employers tend to underinvest in training these workers and the workers themselves have few resources available to invest in their own training.” - _policypapers&sei-redir=1#search=%22incumbent%20training%22) _policypapers&sei-redir=1#search=%22incumbent%20training%22

Training service technicians in Energy-Star appliance repair. This Vermont Green participant received training for her green cleaning business. A Wind Training Center for Vermont IBEW Union members.

Vermont Green: Incumbent Worker Training

From Vermont Green partner: Home Builders & Remodelers Association of Vermont “A builder once said to me, ‘We don’t create the demand, we respond to it.’ When it comes to green building and techniques, it (incumbent worker training) is an added skill set; a way for builders to be prepared to meet the needs and demands of ANY potential client. This keeps them in business, this keeps them prepared.”

From Vermont Green partner: Home Builders & Remodelers Association of Vermont “It’s an added benefit to the employer who can legitimately market their company to a potential client when they can say their staff is trained in, ‘x,y & z.’ But it’s an added benefit for the employee as well, because if the day comes for them to move on, they have a new acquired skill – but it also shows that the employer they are working for is committed to them (at least when it comes to my members who have sent their employees to the Certified Green Professional training, they have all paid the expense to get their employees trained), and their future with the company.”

Incumbent Worker Training … is not Corporate Welfare

Colorado Businesses know the benefit… The training advanced our business capabilities resulting in additional work for the company Populus, LLC Advanced business capabilities resulting in additional work for our company TerraVision Consulting It helps to offer more expertise to clients and makes us more competitive in the market Ecosyste.ms

Labor Market Information validates the strategy Grant Application 8/2009Aug 2011 Projections Occupation ave. annual openings Change over 5 years Total Employment Change Annual Av Openings Due to Growth Carpenters Electricians Construction laborers Insulation Workers Construction and building inspectors HVAC & Refrigeration Techs Op.Eng. and Other Construction Equip. Oper-ators Maintenance and Repair Techs Installation, maintenance and repair, All others Welders, Cutters, Solderers, and Brazers Metal and Plastic Workers Sheet Metal Wkrs Machinists Iron and Steel Wkrs Roofers

Training incumbent workers creates opportunity The training allowed us to develop a new line of business offerings. This allowed us to grow our business and obtain more sustainable funding. By training our supervisors, we were then able to hire 3 additional people for this work Groundwork Denver

Most Colorado SESP participants are incumbent workers Colorado ETA-9153 June, 30, 2011 report 831 Total Colorado participants entered training 753 incumbent workers 548 Completed training 428 entered employment –4 are not incumbent workers

Documentation and verification Colorado Employment Verification Survey

Documentation and Verification Key questions for verification Why did the employee need this training Does your company use a traditional/tiered approach to employee classification? In thinking about the criteria that must be met for an existing employee to formally enter a new position at your company, which of the following do you use to make that decision? –Job title change, –Gain additional responsibilities, –Salary increase, –New job description –New skill acquisition –Begin using advanced technology –Attainment of industry recognized credentials or degrees –Something else Based on the criteria you marked in the previous question, did the employee enter a new position as a result of training?

“The case of Bob and Frank” Colorado SESP Employment Verification 92% have < 30 employees (Small Business) 83% do not have a classification system 72% say the trained employee is in a new position