A Successful Employment Tool On-the Job Training: A Successful Employment Tool NCETA Conference April 20, 2017 Georgia Steele OJT Specialist North Carolina Department of Commerce Division of Workforce Solutions

Objective: To Enhance Our Knowledge of the What, History, and Why of On-the-Job Training

OJT Overview What is On-the-Job Training? History – Why Did OJT (Almost) Disappear Six Reasons Why It’s Back

On-the-Job Training Definition to Employers – Key words What’s emphasized

What is On-the-Job training? Training by an employer that is provided to a paid participant while engaged in productive work in a job that: Provides knowledge or skills essential to the full adequate performance of the job Provides reimbursement up to *50 percent of the wage rate of the participant for the extraordinary costs of providing the training and additional supervision related to the training, and Is limited in duration as appropriate to the occupation for which the participant is being trained, taking into account the content of the training, the prior work experience of the participant, and the service strategy of the participant, as appropriate. WIOA Section 3 (44) *The Division has approved up to 75% wage reimbursement based on certain criteria Up to 50% for employers with 251 or more employees Up to 75% for employers with 250 employees or less Other local board criteria

Put Simply OJT is an “earn and learn” training option that the workforce system can offer job seekers and employers. Funded through the Workforce Investment Opportunity Act, OJT allows employers in the public, private non-profit, or private sector to provide training to workers in need of additional skills training for an identified position

What Are the Goals of OJT? Get job seekers back to work Bridge a participant’s skill gaps Promote self sufficient employment and career advancement Reimburse the extraordinary cost of training to employers

History Workforce Acts & On-the-Job Training CETA – Comprehensive Employment & Training Act (1973-1982) JTPA - Job Training & Partnership Act (1982-1998) WIA - Workforce Investment Act (1998-2014) WIOA - Workforce Innovation & Opportunity Act (2014 - )

Why did OJT (Almost) Disappear? Reader’s Digest (JTPA) Some abuse and lots of fear Sold OJT as a hiring subsidy; not reimbursement for training Economy improved ITA’s are easier

Six Reasons Why OJT is Back Create jobs in a job loss recession (2010) Help unemployed classroom training graduates get jobs Train more customers for career pathways Respond to more customers not wanting classroom training Stretch your limited training resources Achieve excellent program outcomes

On-the Job Training Is Not Subsidized or transitional employment OJT emphasizes training Employers are reimbursed for the extraordinary costs of training Skills are documented Employers are held to contractual commitments

State/Local OJT Policy – Key Elements OJT Success Participant Eligibility Employer Eligibility Contract Requirements Skills Gap Analysis/Training Plan Development* Trainee Skill Evaluation General Provisions OJT Forms * the heart of OJT – a task analysis (job functions/job description) with an identification of the skills needed for the position is a prerequisite for the participant skill gaps

Participant Eligibility Process: Identify OJT Candidates & Decide OJT Eligibility Basic skills in place Some transferrable skills Career changers “Work Ready” Adult/Dislocated worker/appropriate youth as defined by local board “Need Training” Priority of training funds Priority of eligible candidates – veterans, prior investment made

Consider: Does the participant need to learn new skills or have those skills already been acquired? Has the need for OJT been determined and listed on the IEP? What is the best way for the participant to obtain the skills needed (i.e., OJT or occupational skills training)? Can the position be obtained in this company without OJT? Is the participant likely to succeed in training?

Employer Eligibility Pre-Award Analysis – Does the employer meet all requirements of the pre-award analysis? Suitable OJT employer – turnover rate, wage, availability of health benefits, adequate staff to provide the training Ensure employment is on-going and not temporary

Contract Requirements Employers must carry Workers’ Compensation Insurance and make federal & state withholdings as required by law No individual may enter an OJT position if a member of his/her family is engaged in administrative capacity with the OJT employer The OJT employer will maintain and make available for review all time and attendance, payroll, and other records to support amounts reimbursed under OJT contracts Other contract requirements as listed on DWS Policy Statement PS 04-2015 Attachment A

Skills Gap Analysis/Training Plan Development Assessment tools Used to conduct a skills gap analysis and provide adequate documentation of the process used to develop the training plan www.myskillsmyfuture.org – match a worker’s occupational skills and experience with the skills needed in other occupations http://online.onetcenter.org – Occupational competency profiles contain: tasks, knowledge, skills, abilities, detailed work activities http://www.proveit.com – Provides a broad range of proven predicting questions designed to elicit responses that reveal candidate’s personality traits, biographical history and problem solving ability

Training Plan Development OJT Assessment -results from assessment tool identifies skill gap(s); OJT job description (Identifies functions of the position) Participant’s resume’ outlining past work experience Justification for Training - What skills are needed for the position, what skills the OJT participant needs to become proficient in the position, what are the transferrable skills and the length of time needed for this particular OJT candidate?

OJT Process: Develop the Training Plan Must: Unique and customized Occupation – job title and description, O*NET Code and number of hours Specific skills to be learned – skills necessary for the trainee to perform the job Starting and ending date Wage and reimbursement Signature of trainee and date, of employer and date, of OJT provider and date

The training plan (provides structure and context to insure thorough and comprehensive training) Specifics what is being purchased from the employer Serves as an instrument to monitor whether what has been “purchased” has been “delivered”, and Obligates the training funds

OJT – Length of Training Time 2/12/2016 OJT – Length of Training Time Limited to time required for participant to become proficient in occupation for the training being provided Normal training time for a given occupation -O*NET code with Specific Vocational Preparation (SVP) compared to the participant’s entry experience and skills

Decide the OJT Duration Parameters: Go to: http://online. onetcenter Decide the OJT Duration Parameters: Go to: http://online.onetcenter.org/find/ Enter O*NET code or occupation key word Select: Specific occupation title Scroll down to “job zone” Specific Vocational Preparation is listed Reference the SVP Level Range: Most common OJT Levels: Level 3: 1 month to 3 months Level 4: 3 months to 6 months Level 5: 6 months to 1 year Use SVP Level as duration parameters Adjust by candidate entry skill level

OJT Forms OJT Contract: Employer Pre-Award Analysis Employer Agreement Employer information Criteria for OJT employers Authorized signatures Outcome of pre-award interview Employer Agreement Contact information Contract agreement (percentage of wage reimbursement) Contract agreement modification, if applicable

OJT Contract: Training Plan Evaluation – midpoint & final General information Training outline Authorized signatures Training plan modification, if applicable Evaluation – midpoint & final Authorized signatures Comments

Successful OJT Outcomes Remember: Buying occupational training, not a job Wage reimbursement is tied to training hours (must have documentation that participant was paid for the training hours) Specific to job and specific to individual Contract to fill gap(s): Current skills and needed skills (Justify and document skill gap) Justify and document training duration – no more time than needed Monitor reimbursements Make sure employer and participant is eligible for OJT Comply with State/Local OJT Policy

On-the-Job Training How to meet State & Federal Guidelines OJT Case Consultation OJT Training

QUESTIONS Georgia Steele, OJT Specialist Division of Workforce Solutions Georgia.steele@nccommerce.com Office: 919-814-0308 *Cell: 919-604-2146