1. talent 2.0|Workforce STRATEGY
Fort Collins – Loveland MSA
Caroline Alexander
june 2017

2. 1
Introduction

3. WHO IS TIP STRATEGIES? Economic and Workforce Strategy
Talent, Innovation, and Place Framework
Founded 1995
Three principals with a total staff of 12
Austin, Boston, & Seattle offices 3 3

4. We have over 20 years of experience in over 200 unique communities,
across 38 states
& 4 countries.
Firm history, experience, location

5. CURRENT & RECENT PROJECTS
Austin, TX – Workforce Master Plan
Borderplex Alliance (El Paso, TX) – Industry-Workforce Alignment
Fort Campbell, KY – Regional Economic Diversification Strategy
Fort Worth, TX – Economic Development Strategy
Green Bay, WI – Economic Development Strategy
Kern County, CA – Regional Economic Diversification Strategy
Lewis County, WA – Workforce Strategy
Massachusetts Development Authority – Defense Industry Diversification Strategy
Minneapolis-St. Paul, MN – Center Cities Strategy
Northern Iowa Corridor – Economic Development Strategy
Northwest Florida – Economic Development Strategy
Oregon Talent Council – Workforce Study & Investment Strategy
Savannah River Site, SC – Consequences Analysis
South Carolina I-77 Alliance, SC – Labor Study & Target Industry Alignment
Washington Military Alliance - Defense Industry Diversification Strategy
CURRENT & RECENT PROJECTS
TIP Strategies

6. 2
talent matters

7. the key driver of economic development
Impact on Regional Prosperity
TALENT
TRADE
>
Talent has a greater impact on regional prosperity than trade.
Source: Martin Prosperity Institute.

8. Site Selection factors
Rankings of Availability of Skilled Labor vs Cost
Availability of skilled labor has become more important than cost
Source: Area Development Survey of Corporate Executives.

9. The Geography of Recovery
Cumulative Change in Employment Since the Beginning of the Great Recession
Source: US Bureau of Labor Statistics, Current Employment Statistics; TIP Strategies

10. Economy at Full Employment
Unemployment Rates
Source: Bureau of Labor Statistics via Moody’s Analytics

11. Geography of unemployment
Unemployment Rate by County, 2016
Varies between 1.7 (Baca County, CO) and 23.5% (Imperial County, CA)
Source: Bureau of Labor Statistics, LAUS

12. Zoom: Geography of unemployment
Unemployment Rate by County, 2016
Source: Bureau of Labor Statistics, LAUS

13. Labor market conditions
Unemployment Rate and Labor Force Participation, 2016
1 = High LFPR /
Low UNP
5 = Low LFPR /
High UNP
Source: Bureau of Labor Statistics (LAUS, QCEW), US Census Bureau (PEP).

14. Zoom: Labor market conditions
Unemployment Rate and Labor Force Participation, 2016
1 = High LFPR /
Low UNP
5 = Low LFPR /
High UNP
Source: Bureau of Labor Statistics (LAUS, QCEW), US Census Bureau (PEP).

15. Evidence of talent shortage
PERCENT EMPLOYERS REPORTING DIFFICULTY FILLING JOBS, 2006 to 2016
Source: Manpower 2016 Talent Shortage Survey.

16. Top 10 Jobs Employers are having difficulty filling
Global 1.
Skilled Trades 2.
IT Personnel 3.
Sales Representatives 4.
Engineers 5.
Technicians 6.
Drivers 7.
Accounting & Finance Staff 8.
Management/Executive (Management/Corporate) 9.
Production Operators/Machine Operators
10.
Secretaries, PAs, Receptionists, Administrative Assistants, & Office Support Staff
United States 1.
Skilled Trades 2.
Drivers 3.
Sales Representatives 4.
Teachers 5.
Restaurant & Hotel Staff 6.
Accounting & Finance Staff 7.
Nurses 8.
Laborers 9.
Engineers
10.
Technicians
Source: ManpowerGroup's 2016 Talent Shortage Survey

17. Why it is hard to fill positions?
Source: ManpowerGroup's 2016 Talent Shortage Survey

18. Trends affecting workforce demand
Automation
Agile Workforce
Internet of Things
Digitization

19. By 2020, the US economy is expected to create 55 million job openings: 24 million of these will be entirely new positions.
-Georgetown Center on Education and the Workforce
44% of openings in new positions

20. 3
Key workforce challenges:
Fort Collins-Loveland

21. CHALLENGE #1: HIRING DIFFICULTY From 2010 to 2015, the regional economy added almost 20,000 jobs but only 11,000 workers. Combined with low unemployment and high underemployment, the hiring environment is already difficult.

22. Growth trends: jobs vs labor force
TOTAL EMPLOYMENT
2010 TO 2015
CIVILIAN LABOR FORCE 2005 TO 2015
+11K
+20K
Sources: EMSI, Bureau of Labor Statistics.

23. Tight labor market
2016 LFPR: 67.0%
2016 UNP: 2.8%

24. recruitment Challenges
Difficulty attracting:
Talent from Denver and from coasts
C-Level executives
Young professionals
Reliable workers to fill jobs with high physical requirements – warehouse, waste collection, construction laborers
Workers that can pass the drug test – most often fail due to marijuana use
Low-wage services – food services, housekeeping

25. Retention challenges
Underemployment means that overqualified workers are always looking for a better job
Generational expectations
Young professional gap

26. Pipeline challenges Awareness of resources Employer engagement & input
Finding instructors – nursing, computer science
Student choices
Awareness of non 4-year opportunities
Choice of majors at CSU and UNC

27. Structural challenges
Housing affordability at all income levels
Purchase & rental
Quality childcare for affordable prices
Transportation/mobility: traffic makes Denver farther away

28. CHALLENGE #2: CONTINUED TIGHTENING Over next 5 years, employers will have at least 28,000 openings to fill. The labor force adds only about 2,000 to 3,000 workers each year. A continuation of this trend would leave an estimated shortfall of about 5,000 workers.

29. PROJECTED DEMAND +28,000 OPENINGS (7,000 each year)
EMPLOYMENT BY SKILL LEVEL, FORT COLLINS-LOVELAND MSA
2016 TO 2020
+28,000 OPENINGS (7,000 each year)
Sources: EMSI.

30. Change in labor force CHANGE IN LABOR FORCE, FORT COLLINS-LOVELAND MSA
Year-over-year change, #
Sources: U.S. Bureau of Labor Statistics via Moody’s.

31. CHALLENGE #3: AGING WORKFORCE In many key occupations, more than 25% of the workers are 55 or older. With the wave of likely retirements, employers will need to start succession planning now in order to prepare for the loss of those key individuals.

32. Aging workforce AGE DISTRIBUTION OF REGIONAL WORKERS
FORT COLLINS-LOVELAND MSA
Sources: EMSI.

33. Top middle skill jobs
Sources: EMSI.

34. Top High skill jobs
Sources: EMSI.

35. Summary of findings The current labor market is already strained
Demand outstrips supply
Mismatch in education & skills
Difficult to recruit and retain from outside of the region
Structural issues (housing, transportation, & childcare) exacerbate recruitment challenges
The situation is likely to worsen
Projected demand still more than supply
Aging workforce will create more openings

36. 4
Talent 2.0

37. The Response: Talent 2.0 Sets out a common set of goals and strategies
Align efforts and resources
Amplify reach and impact

38. Framework Access Alignment Barriers
Actively support employers in finding, attracting, and retaining the talent that they need
Alignment
Align education and workforce resources more closely with business community and the local talent pool
Barriers
Collectively address structural issues that serve as barriers to a secure talent pipeline

39. Increase ACCESS
Your Place: NORTHERN COLORADO. Design and launch a talent campaign to support the recruitment of prospective employees to the Fort Collins-Loveland MSA.
LOCAL TALENT. Help connect regional employers with residents and residents with better economic opportunities.
AWARENESS. Build greater awareness of the region’s job opportunities and strong employment base.
HR BEST PRACTICES. Coordinate with the Workforce Center, the Northern Colorado Human Resources Association, Mountain States Employers Council, and others to hold workshops on talent management topics for employers and HR professionals.
RETENTION. Partner with employers to coordinate solutions that address common barriers to talent retention.

40. The underemployment project
OUTREACH. Reach out to underemployed individuals through employers and directly
INVENTORY. Catalog resumes and skills of underemployed
COACH. Provide coaching to these individuals to find better jobs
RETRAIN. Connect them to retraining as needed to align skills to opportunities
RE-EMPLOY. Assist them in finding better opportunities

41. Plan for Success(ion)
ASSESS. Invest in tools that can help companies assess their needs and craft a transition strategy
EDUCATE. Hold workshops on topics relevant to succession planning
KNOWLEDGE-SHARE. Create peer working groups that meet quarterly to provide a forum for peers to share information and best practices as well as to work through issues together
TRAINING. Create program to train workers to move up
EXPERTISE. Train or hire an expert that can provide technical assistance one-on-one to companies

42. Improve alignment
Business Engagement. Streamline business engagement and input mechanisms.
Education & Training Capacity. Support education and training institutions in strengthening the “home grown” talent pipeline.

43. Sector partnerships (support for Established Initiative)
SURVEY. Partner with existing sector organizations to conduct annual employer surveys to document needs in critical occupations
ADVISE. Coordinate with sector partnerships to create a more centralized business advisory function.
LAUNCH. Monitor the needs of other industries, and facilitate the launch of new partnerships as needed.

44. Front Range Career Academy (Expansion of current Initiative)
EXPAND. Enhance FRCC’s current high school programs
Small learning environment, experiential learning, dual enrollment
COLLABORATION. Foster collaboration between school districts, community college, and key employers
ALIGNMENT. Enhances industry-education alignment and is an asset for talent & business attraction

45. Remove bARRIERS Advocate. Advocate around key structural issues.
Educate. Organize a series of symposiums on each topic to educate relevant audiences, generate discussion about possible solutions, and identify a core group of champions that will lead taskforces.
Achieve. Assemble taskforces of champions and “doers” to move solutions forward.

46. Advocacy Continue to advocate for I-25 Corridor improvements
Advocate on behalf of FRCC to secure funding for the Allied Health School
Incorporate affordable housing as an issue on the local advocacy agenda

47. IMPLEMENTATION Structure
Steering Committee
Maintains strategic coherence
Manages fundraising and outreach efforts
Provides additional project management and support
Education & Training Partners
Public Sector Partners
Industry Partnerships & Associations
Philanthropy

48. 5
Other models

49. Austin, TX: connecting Disadvantaged Workers to middle skill jobs
Photo Credit: Austin Texas by eschipul via flickr (CC BY-SA 2.0)
Austin, TX: connecting Disadvantaged Workers to middle skill jobs
Austin Texas by eschipul via flickr (CC BY-SA 2.0)
THE CONTEXT: Not all residents have benefitted from regional prosperity. Needed a targeted effort to include those who were left behind
THE PLAYERS: Mayor and County Judge issued call to action. Workforce board lead. Included City of Austin, Travis County, Austin Community College, chambers, community-based organizations, industry associations, & employers
THE OUTCOME: Target goal of helping 10,000 disadvantaged workers secure middle skill jobs

50. THE AUSTIN AREA COMMUNITY WORKFORCE MASTER PLAN: ROADMAP
VISION
A workforce system that effectively engages employers, community-based organizations, and educational institutions, empowers residents to more efficiently match employers’ skill needs and successfully prepares economically disadvantaged residents for family-sustaining careers.
CONTEXT
By 2021, the Austin Metro Area is projected to have more than 60,000 job openings that require more than a high school diploma but less than a bachelor’s degree. The first priority of the Austin Metro Area Master Community Workforce Plan is to improve economically disadvantaged residents’ access to these middle-skill jobs.
GOAL
To make living in Austin more affordable by improving economically disadvantaged residents’ access to better economic opportunities.
OBJECTIVE
10,000 residents living at or below 200% of poverty will secure middle-skill jobs by 2021.
STRATEGIES
AWARENESS & ENROLLMENT:
Cultivate interest in high-demand, middle- skill careers
TRAINING:
Equip workers with the skills they need to succeed
PLACEMENT:
Connect employers with local talent to fill middle-skill jobs
ADVANCEMENT:
Assist frontline workers in acquiring skills to advance into middle- skill jobs
OUTCOMES & TARGETS
Economically disadvantaged residents are more aware of middle-skill career opportunities and training options
More economically disadvantaged students earn credentials
More economically disadvantaged residents secure middle-skill jobs
More economically disadvantaged residents are upskilled and advanced in their workplaces
TARGET:
30,000 economically disadvantaged residents enroll in middle-skill training programs
12,000 economically disadvantaged residents earn a middle-skill credential
8,000 economically disadvantaged residents placed in middle-skill jobs
2,000 economically disadvantaged residents advance (raises, promotions) in jobs after upskilling

51. Oregon: Investing in incumbent worker training
THE CONTEXT: Tightening labor market, rapidly changing skills requirements, gaps in incumbent worker training
THE PLAYERS: The Oregon Talent Council
THE OUTCOME: The creation of the Oregon Talent Plan and an investment strategy focused on effective models for incumbent worker training.

52. Stages of Skill acquisition & Training needs
Skill standards are integrated into occupational requirements and education/training programs
New jobs decline, skills become more specialized, knowledge transfer from worker to worker continues
Industry-specific applications
Early adopting industries/companies define skills standards
Occupational-wide upskilling
New technology enters market
New entrants/ graduates
New to Market Skills
Mass Skill Adoption
Skill Transitions
EVOLUTIONARY Occupations
STEADY DEMAND Occupations
MISSION-CRITICAL Occupations

53. Aiken, SC / Augusta, GA: Preparing for Growth and the sliver tsunami
THE CONTEXT: Growth at Fort Gordon (+5,000) and workforce transition at Savannah River Site (+3,000 new workers)
THE PLAYERS: Savannah River Site Community Re-Use Organization led. Included regional economic developers, chambers, and higher education
THE OUTCOME: Create a more demand-driven, coordinate workforce system. Collect-Convene-Connect-Inform-Market

54. Lewis County, WA: Industry-education alignment
Image credit: Centralia Downtown Historic District by Steven Pavlov via Wikimedia Commons (CC BY-SA 3.0)2.0)
Lewis County, WA:
Industry-education alignment
8% unp / 52% LFPR
THE CONTEXT: Decline of forestry and coal industries have resulted in high unemployment and low labor force participation
THE PLAYERS: Lewis County EDC led. Centralia College and Pacific Mountain Workforce Development Council are partners
THE OUTCOME: Strengthen the talent pipeline; better align training with existing industry; support business attraction.

55. Secrets to success Industry-led Broad base of partners Common agenda
Persistence and commitment
Measuring progress

56. ?
QUESTIONS

57. THANK YOU

58. 2905 San Gabriel Street Suite 205 Austin, TX 78705
Image Credit :Austin_Texas by Ed Schipul via Flickr (CC BY-SA 20)