1. Strategic Policy Council
September 28, 2016

2. Welcome and Remarks
Kevin Doyle
Chairman

3. Today’s Agenda 2016-17 Council Activity Measuring Florida’s Progress
Workforce Program Data Overview
Performance Funding Model Update

4. Council Activity
Michelle Dennard
Vice President, Policy

5. 2016-17 Council Activity Strategic Policy Review
Performance Funding Model
Talent and Prosperity Dashboard – The Goal

8. Florida’s Talent and Prosperity Dashboard
Adrienne Johnston, Bureau of Labor Market Statistics
September 28, 2016

9. Are we achieving THE GOAL?
Increase the prosperity of workers and employers
Reduce welfare dependency
Increase economic self-sufficiency
Meet employer needs
Enhance worker productivity and
Enhance business competitiveness

10. Increase Worker Prosperity
Measure
Real Wage of Florida Workers
Interpretation
Real wages adjust for inflation. An increase in real wages tells us that workers have more purchasing power
Does not address
Real wages can be driven by price or wage changes

11. Increase Employer Prosperity
Measure
Percent of Florida businesses that are expanding employment
Interpretation
Business environment is conducive to producing more goods or services, thus requiring more employees
Does not address
The scale of expansion or indication of future growth

12. Reduce Welfare Dependency
Measure
Welfare receipts as a percent of personal income
Interpretation
Personal income is comprised of salaries, wages, bonuses, investment earnings, and welfare
Decreasing welfare receipts as a percent of personal income indicates that personal income is increasingly driven by earnings
Does not address
The distribution of welfare or indicate declines in personal income

13. Increase Economic Self-Sufficiency
Measure
Percentage industries paying above a given threshold
(i.e. Poverty level, public benefits requirement)
Interpretation
More industries paying average salaries higher than a specified threshold indicates more workers are earning a self-sufficient wage
Does not address
Number of workers who qualify for public benefits or wage distributions

14. Meet Employer Needs Measure Supply – Demand Ratio Interpretation
The ability of Florida’s industry to employ the number of workers looking for work
Ratio of 1 means there are exactly enough workers to fill open jobs
Does not address
How workers align to job openings based on training, skills or occupation
Note: Think about how Skills Gap Survey could fit in

15. Enhance Worker Productivity
Measure
Per capita Gross Domestic Product (GDP)
Interpretation
GDP is an overall measure of economic productivity
Increases in this measure can, at least in part, be attributed to increases in worker productivity
Does not address
Population and non-labor related influences on GDP

16. Enhance Business Competitiveness
Measure
Industries that employ more workers than the national average
(location quotient above 1)
Interpretation
The relative strength of employment in Florida’s industries to the nation
Larger values indicate greater diversification
Does not address
Other measures used to compare industries to the nation

17. Next Steps Refine metrics based on feedback
Develop secondary metrics to address issues identified
Develop interactive tool to display dashboard
Continue to refine based on feedback

18. QUESTIONS

19. CONTACT
Thank You.
If you have questions or comments about this presentation or need to discuss a future project; please contact Adrienne Johnston
DEO Bureau of Labor Market Statistics
Adrienne Johnston: (850)

20. An Introduction to Workforce Program Data
Rob White, Ph.D.
Director of Research & Analytics

21. Introduction
When a job seeker comes into a CareerSource Florida career center for services, he/she is enrolled in a program and becomes a participant.
Usually he/she is enrolled in one of two programs:
Wagner-Peyser: the general job seeker services program.
Resume review, job readiness instruction, job searches on employflorida.com
WIOA (formerly WIA): the intensive training program.
GED coursework for OOS youth, vocational training

22. Introduction
Some job seekers come to the career centers because they must complete work requirements to receive benefits.
Such job seekers are said to be “mandatory.”
These job seekers are not necessarily enrolled in a program (are not necessarily participants).
Work requirements are usually job readiness instruction and job searching (depending on benefit program).
Benefit programs: SNAP, WTP, RESEA

23. Program Data For each participant, we collect:
Entry date: date the participant was enrolled
Demographic information: DOB, race, ethnicity
Population membership: veteran, homeless, formerly incarcerated, disabled
Other information about services received
Exit date: date the case is closed
Wagner-Peyser: after 90 days of inactivity
WIOA: at the discretion of the case manager

24. Wage Data
Businesses report wages paid to Florida DOR on a quarterly basis.
Amount paid to each employee during the quarter.
30 days post-quarter: partial wage data becomes available, is updated as businesses report wages.
5+ months post-quarter: certified wage data becomes available.

25. An Introduction to the Performance Funding Model
Rob White, Ph.D. Director of Research & Analytics

26. Purpose
To prepare the Strategic Policy Council to provide guidance to executive and professional staff on Performance Funding Model (PFM) policy.
Today: Introduction to the PFM structure and operations
February: Professional staff present policy recommendations, SPC provides specific guidance
May: SPC approves implementation of guidance or requests revision.

27. Introduction
The Performance Funding Model (PFM) incentivizes the performance of local boards.
The Strategic Policy Council provides guidance on the following questions:
What should we incentivize?
How are we going to measure it?
Does such have unintended consequences?

28. USDOL Performance Measures
The PFM is a supplement to, rather than a substitute for, USDOL performance measures.
WIA: Common Measures
WIOA: Performance Indicators
This works in our favor.
USDOL is going to track the big things.
We can focus on encouraging local boards to pursue our state goals and priorities.

29. Limitations We are limited to that which is measurable.
Primary data sources: Employ Florida Marketplace, quarterly wage data from Florida DOR, Salesforce.
PFM structure needs to remain relatively constant over time.
Big changes mean local boards must restructure their operations (costly).
Changes to the PFM mean retraining local boards on how the PFM works (costly) and will cause confusion.

30. Structure (to remain constant)
Performance Metrics
Performance Targets
Additional Credit
Performance Scores and Minimum Thresholds
Target, Improve, Excel (TIE) Model
Eligibility

31. Performance Metrics
Placement Metrics: focus on the long-term unemployed
No analog in USDOL performance measures
Exit Metrics: focus on outcomes post-exit
USDOL performance measures do not consider performance relative to expenditure.
Business Services Metrics: focus on relationships with businesses
USDOL performance measures use wage data to infer business satisfaction.

32. Placement Metrics
Focus on the long-term unemployed: those who go entire quarters without wage earnings.
Unemployed Placement Rate
The fraction of the long-term unemployed who transitioned to wage-earning.
Time to Earnings
How long the long-term unemployed have been without wages on average.

33. Exit Metrics Cost per Employed Exit Average Earnings
Total formula expenditures divided by the number of exiters employed in the quarter they exited.
Average Earnings
Average Earnings of all exiters in the two quarters following their exit.
Earnings per Dollar Spent
Total earned by exiters divided by total formula expenditures.

34. Business Services Metrics
Focus on relationships (rather than mere interactions) with businesses
Business Engagement
Number of customer satisfaction surveys sent to businesses.
Response rates affect targets year-over-year.
(Business) Customer Satisfaction
How satisfied the surveyed businesses are.
How likely they are to refer other businesses
Survey response rate.

35. Performance Targets
We set performance target for each of the seven performance metrics.
Performance is measured relative to target.
Statistical model for placement and exit metrics.
Our performance targets are designed to satisfy two conditions:
Reflect economic conditions outside the control of the local board.
Not penalize historically well performing boards with ambitious targets.

36. Historical Context
USDOL has used a statistical model to set performance targets for a long time.
The WIA “regression model” sets this year’s targets to be the performance from two years ago adjusted to account for changes in economic conditions.
The adjustment of past performance used a statistical model.
This is not how the PFM (or WIOA) sets targets.

37. Analogy: Two Golfers Compete
WIA: measures the skill of the golfer
Golfers assumed to play the same golf course, but with different skill levels.
The weaker golfer is given a several stroke advantage at the beginning of the round.
PFM: measures the difficulty of the golf course
Golfers assumed to play different courses and be of approximately the same skill level.
The golfer playing the more difficult course is given a several stroke advantage at the beginning of the round.

38. Additional Credit
Given for serving those with barriers to employment and individuals more at-risk of not connecting to the labor market:
the formerly incarcerated
the homeless
veterans
individuals with disabilities
Amounts of additional credit for each group are an annual policy decision.

39. Performance Scores
Local boards receive a performance score for each performance metric.
For all of the metrics except Customer Satisfaction this is performance as a percent of target.
Customer Satisfaction performance scores are determined by three factors rather than one.
Performance scores are summed to form the local board’s Global Performance Score.

40. Target, Improve, Excel (TIE) Model
Evaluation along three dimensions:
Meet a performance TARGET.
Show continuous IMPROVEMENT (top 8).
Perform at the top of the system – EXCEL (top 8).
$11.5 million split evenly between Target, Improve and Excel.
Possible for local boards to receive $1+ million.

41. Eligibility Common Measures Gateway Minimum Thresholds
If DEO deems a board to be out of compliance with USDOL performance measures, that board will not be eligible for incentive funds through the PFM.
Minimum Thresholds
Local boards must meet or exceed agreed upon minimum performance scores to be eligible for incentive funds through the PFM.

42. Minimum Threshold Negotiation
Minimum thresholds are specified in terms of performance scores.
To be eligible for funding, boards must meet their minimum threshold on each metric.
Boards may decrease some minimum thresholds at the expense of increasing others.
Minimum thresholds must total 525 (as they do in the 75, seven metric baseline).
Minimum thresholds must be at least 50.

43. Minimum Threshold Negotiation
Unemployed Placement Rate
Time to Earnings
Cost per Employed Exit
Business Engagement
Average Earnings
Earnings per Dollar Spent
Business Customer Satisfaction
Threshold Total
Baseline 75
525
Example 1 60 85 90 65
Example 2 50 70
490
Example 3 45 80

44. Next Steps
February: Professional staff present policy recommendations, SPC provides specific guidance.
We will make recommendations for changes to PFM policy and structure.
We will show you where the “dials” are and recommend the direction to spin them.
May: SPC approves implementation of guidance or requests revisions.

45. Thank You!