1. 1 Health Careers Collaborative of Greater Cincinnati Return on Investment Webinar December 6, 2011

2. 2 HCC Guiding Principles 1)Job creation & advancement for low income adults that meet employer needs 2)Mapping career pathways within sectors which are important to region’s economic growth 3)Commitment to systemic & sustainable change within and across institutions

3. 3 Over 3,000 Credentials for Incumbents and Jobseekers (since 2007) 1)200 + Associate Degree cohort students in Allied Health & Nursing. 2)HCC Associate degree grads average GPA = 3.25 3)27 Nursing Grads to date; first Allied Health grad in 2011; 98% continuing for Bachelor’s

4. 4 Career Literacy & Pathways to Employment Comprehensive system of intake, assessment, guidance and planning prior to formal academic work Innovative remediation and readiness supports Completion Advisors, Job Coaches, Retention Specialists Employer Engagement & Job Placement

5. 5 Pathway Advisors & Employer-based Job Coaches School At Work academic & career prep Pre-pathway assessments & readiness Key Train & Work Keys (Great Oaks & CBO’s) National Career Readiness Certificate & Profile Plus Assessment for “Fit” & “Talent” (Great Oaks, CSTCC, CBO’s) Pathway Expansion

6. 6 Funding SourceAmountDates USDOL ETA$4,935,132March 2010- February 2013 GCWN$400,0002009-2012 Employer partners $1,000,000annually

7. 7 Benefits: Employer Perspective Program Return on Investment Stewardship of employer tuition budgets Overall 15% ROI (tuition plus turnover, re- training, productivity costs) Enhancement of existing educational partnerships Dynamic support of current and projected workforce needs Recognition vehicle for high performers seeking career pathway opportunities Supports a culture of employee engagement

8. 8 Rationale for ROI Study Intuitively knew we were doing work beneficial to employers Our numbers were telling the story of individuals, but not employers Have an opportunity to make the case that serving frontline workers is beneficial to employers

9. 9 Why ROI and not Business Value? Easily recognizable term Even though there are many non-fiscal benefits, ROI drives business decisions There are many initiatives with non- fiscal benefits; we wanted to make ours stand out from other initiatives

10. Project Concept (Benefits – Costs) Investment Basic Formula = ROI Employers Individuals Institutions Public Analysis Outline HCC has two tiers of training Short-term certificate Long-term associate degree One large employer provided data Short-term participants N=525 Long-term participants N=90 Timeframe – 2005 through 2013, expected completion of currently enrolled cohorts Matched comparison group – participants relative to incumbents in similar occupations hired at similar times Annual calculation of costs and benefits based on number of individuals in each cohort and stage of progress

11. 11 Factors Used CostsBenefits Administrative costs borne by employers Reduction in turnover during training Tuition paymentsLower hiring costs or promoted workers compared to outside hires Increase in absences during training Cost of hiring replacements when participants complete and are promoted (backfill) Factors used were principally determined by the ability to collect data and ability to relate costs and benefits directly to the program.

12. 12 ROI Contributors – Long Term The two largest costs for employers are tuition (~$12,566 per completer) and the cost of filling the prior position following promotion (~$9,000 per completer) The two largest benefits for employers are reduced cost of filling new position (~$24,438 per completer) and reduced turnover while in program (~$2,214 per completer)

13. 13 ROI – Long Term

14. 14 ROI Contributors – Short Term Employers pay no tuition (WIA, scholarships or private pay) The program costs are due to a slightly higher rate of absenteeism and administrative costs The two largest benefits for employers are reduced recruitment cost of filling new positions and reduced turnover while in program

15. 15 Net Benefit– Short Term

16. Combined Net Benefit – Short Term and Long Term

17. 17 Non-monetized benefits Increasing diversity of staff Providing advancement opportunities for staff Improved staff morale Fulfillment of the community service mission of the hospital

18. 18 Questions Lawra Baumannlawra.baumann@cincinnatistate.edu Alan Jones jonesar@live.com Christopher Spence cspence@newgrowthplanners.com Joel Elveryj.elvery@csuohio.edu