On-the-Job Training Area 17 Workforce Investment Board July 20, 2010

What is On-the-Job Training? Offsets the cost of new-hire training Provides an incentive for employers to hire job seekers who are: dislocated or low-income Reimburses up to 50% wages during training Short-term training helps a worker develop the skills necessary to become a valuable asset as a full-time employee

Benefits to Businesses Defrays up to 50% of wages during initial training period Builds on a workers’ existing talent to develop specific, relevant work skills Accommodates transfer of skills from experienced employees  new employees Assesses an employee’s adaptability to a particular work environment

Benefits to Job Seekers Provides an incentive for employers to consider targeted job seekers Helps launch a career in a demand occupation Builds on existing skills Supports individualized guidance in a new work environment

Requirements Candidate must be determined eligible Candidate cannot start work PRIOR to eligibility and the development of the contract/training plan Employer can identify candidate or One-Stop can assist through job matching Trainee must be paid at least $8/hr Must be training for a recognized and transferrable skill

How it Works Employer can identify candidate or One-Stop can assist through job matching Contract between MCTA and the employer (One contract per program year with multiple training plans) Length of training period varies – Assessment of trainee’s existing skills – Comparison to required skills for position – Cannot exceed six months (26 weeks) Cash reimbursement on monthly basis

Funding Funding Sources – Workforce Investment Act Adult – Workforce Investment Act Dislocated Worker – Workforce Investment Act Youth – Project HIRE – NEG (National Emergency Grant): awaiting guidance from State OJT a priority at Federal and State Levels

Local OJT Activity Included on Balanced Scorecard 26 WIA Contracts with 84 Training Plans in PY09 – 43 WIA Dislocated Worker – 41 WIA Adult – 50 Project HIRE PY08 saw 8 OJT Contracts 1575% increase!

Successes Example: Local Company hoped to hire 20 within the next 2 years. With OJT reimbursement, they met hiring goal within 4 months. The money freed up by OJT allowed them to buy additional equipment which provided 4 jobs per piece of equipment. Leverage for Attraction Projects

Feedback Your experiences with the program Suggestions for improvement Questions

Contact Susie Buckley MCTA Contract Facilitator , ext. 7154