Ticket to Work Strategy for Demand-Driven Employment Network April 2015

Prepared for: Governors Committee on Disability Issues and Employment Grant Number: K-3671

Prepared by: Washington Business Alliance Project Team: Egils Milbergs Mike Hudson Caroline Halter Jim Kastama Erin Williams

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Contents EXECUTIVE SUMMARY ................................................................................................................................. 3 1.

Introduction ...................................................................................................................................... 9

2.

Employment Situation for PWDs ................................................................................................... 10 Profiles of PWDs.................................................................................................................................. 10

3.

Demand-Driven Case Studies for Workforce Development ......................................................... 14 Employer Hiring Concerns................................................................................................................... 15 Employer-Driven Models—Observations and Success Factors .......................................................... 16

4.

Balanced Scorecard for the EN....................................................................................................... 21 The Agenda and Planning Process ...................................................................................................... 21

5.

Implementation Scenario............................................................................................................... 25 Design Features................................................................................................................................... 25

6.

Recommendations for Next Steps ................................................................................................. 28 Steering Committee ............................................................................................................................ 28 Public Relations and Outreach ............................................................................................................ 29 Financial Plan ...................................................................................................................................... 29 Competency Marketplace ................................................................................................................... 29

ACKNOWLEDGEMENTS .............................................................................................................................. 31 APPENDICES

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EXECUTIVE SUMMARY Overview The Washington Business Alliance (WaBA) has partnered with the Governors Committee on Disability Issues and Employment (GCDE), a division of the Washington State Employment Security Department, to develop a demand-side strategy for improving the employment levels of people with disabilities (PWDs). The project aims to transform the Social Security Administration (SSA) Ticket to Work (TTW) program to incentivize employers to recruit, hire, train, and retain employees currently receiving disability benefits. This project will benefit PWDs by helping them enter or re-enter competitive employment under self-sufficiency and provide employers with a new pool of skilled, eager, and available employees. The project results to date call for the establishment of a business-driven Employment Network Partnership (ENP) and the creation of a steering committee to organize and manage the ENPs further development and operation.

The Need To determine the needs and existing efforts to successfully employ PWDs within Washington State, a literature review and a case study of existing programs aiming to assist PWDs in obtaining employment within the private, public, and non-profit sectors were conducted. Through our literature review, we discovered the following key issues: In Washington State, there is high demand for a skilled workforce but an inadequate pool of individuals with the required skills to perform these tasks, leading to a “skills gap.” Employers often shy away from or do not explore the available pool of PWD candidates; however, studies have shown that PWDs are highly likely to become great employees with higher-than-average retention rates and the problem-solving skills that employers covet. The TTW program, a program designed to help PWDs obtain public, private, or non-profit sector jobs, was established in 1999. The program has not been very successful to date. According to the Government Accountability Office, less than 1% of PWDs sought employment through the 3

program, and only 2% of the ENs established to help such people had helped the majority of their assigned ticketholders. This failure can be attributed to program designs and lack of simplicity that plague the official processes governing disabilities and the TTW program.

Employer-driven Case Studies Demand-drive case studies of 19 programs for workforce development and employing PWDs throughout the United States revealed a number of attributes for developing successful programs. Common elements to the programs were: 1. Scaling of successful pilot programs or copying and modifying successful programs at other companies. 2. The use of assistive technologies to make work easier and more adaptable. 3. Partnerships with local service providers to create a pipeline of candidates and offer complementary services to the talent pool. 4. Paid and on-the-job training for candidates. 5. Holding PWD candidates to the same standards as their non-disabled counterparts 6. A narrow hiring focus on a specific group of people with needs to tailor the program, provide better training to management and staff, and use the correct assistive technologies. Among the business leaders involved in these programs, the overwhelming sentiment was that hiring PWDs was a prudent business decision that improved productivity, retention, and savings on items such as safety costs.

Balanced Scorecard for an Employment Network (EN) On March 31st, 2015, a meeting of business, non-profit, and government organizations was convened in Seattle by WaBA and the Governors Committee on Disability Issues and Employment to address the major issues involved and formulate a strategy with specific initiatives for implementing an EN for the TTW program in Washington State.

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A Balanced Scorecard approach was developed to rank and align the project outcomes and recommendations to the vision, mission, and values developed for the program. The meeting began with talks by several key stakeholders in PWD support organizations as well as “lightning talks” on major challenges by select participants. Attendees were then divided into groups to formulate the tasks and initiatives for collective action within six key performance goal categories: Customer, Public Value & Benefit, Internal Process, Learning & Growth, and Financial.

Priority Initiatives Through the meeting, key recommendations and initiatives were highlighted as critical to a successful EN. Highly rated initiatives include the development of case studies to show the ROI in hiring PWDs, ensuring effective outreach and public awareness, establishing a coordinating mechanisms for implementation and review of joint accountability and setting up a digital platform for efficiently connecting employers, workforce intermediaries and PWD candidates (Competency Marketplace). The EN will resolve four well-documented needs for the workforce development system: 

Provide timely industry information on current and future job demands and competency requirements.



Increase participation rates of employers in the development of PWD worker competencies and qualifications.



Improve PWD access to and alignment of the workforce development system.

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Provide market-like incentives to employers, intermediaries, and service providers for placing and retaining qualified PWDs in long term career pathways.

Recommendations A new kind of Employment Network Partnership should be organized on behalf of privatesector employers to promote the TTW program. WaBA is well positioned to undertake the development of such a partnership and secure the involvement of employers in the TTW program. To oversee the evolution of the ENP, a steering committee should be formed. The 5

steering committee will meet quarterly to review Balanced Scorecard initiatives and outcomes, hold stakeholders accountable, communicate regularly with the network, and establish a TTW performance dashboard. Additional key steps to success include the creation of a public relations program and marketing campaign featuring positive work characteristics of PWDs, the development of a financial plan complete with revenue models, public sector resources, and funding to operate the ENP for 18 months or until self-sufficiency, and the creation of a digital Competency Marketplace aiming to connect employers with job seekers based on WaBA’s initial design. The implementation of this plan will drive Washington’s business competitiveness and improve the lives and opportunities for our PWD population across the state. It will also serve as a model and template for expanding the plan to other disadvantaged populations and improving our state’s performance toward establishing Washington as a national leader in economic competitiveness, diversity and workforce development.

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Employment Network Balanced Scorecard Summary Vision:

Mission:

“Opening pathways to meaningful careers by installing a culture of universal inclusion and respect within every employer in Washington.”

“Washington Business Alliance Employment Network expands employer awareness of the talent of people with disabilities; aggregates employer job openings and competency requirements and communicates such requirements to the appropriate training, counseling, assessment and pre-hiring services to provide meaningful, integrated employment resulting in financial self-sufficiency for Washington SSI/SSDI recipients.”

Long Term Goals

Long Term Performance Measures

Customer Our customers see us as professional, knowledgeable, fast, responsible and a path to self-sufficiency and refer other customers. Companies see as a deliverer of competent, motivated, loyal employees and refer other businesses.

Public Value & Benefit We lower the poverty rate; lower the long-term unemployment rate; enhance economic growth and productivity; and reduce the overall cost to the social security system making it more viable for future generations.

 Increase in customer satisfaction rate  Increase in employer satisfaction rate  Increase ratings in Social Security “Timely Progress” review survey  Timeliness of job placement  Number of employer referrals

 Number of participating employers  Number of persons with disabilities elected for program  Number of interviewed potential customers  Number customers hired  Retention rate once hired  Income progression  Savings to Social Security Administration

Values: Diversity Ethical

Passion Customer Service

Respect Teamwork

Fairness Competence

Initiatives

Lead

 Create program assisting employers’ and employees when they encounter problems with placement, fit or 1. performance. Include ongoing mentor/affinity program.  Develop a system to accurately assess employers’ present and future needs,  Identify industries to work with: connect with key employers who are currently hiring PWDs.  Create a system to allow employers easy access to potential employees utilizing technology.  Design an employer outreach program that encourages PWDs to request accommodations in hiring process.  Develop case studies matching employer needs and interest showing value-add from initial meeting  Create public relations program/marketing campaign featuring positive work characteristics of workers, including leadership, time mgmt., creative problem solving, and dedication. Launch small to medium size supplier initiative to hire PWDs.  Identify and implement a public space for sharing key testimonials by leveraging technology and social media.

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Internal Process We are experts at the assessment of employee skills and employer demands. We are expert matchmakers.

Learning & Growth We are consistent, deliberate (using evidence-based practices) and communicate continuously. We have a system of shared accountability and shared value creation.

Financial We are a self-sustaining, free service to employers

 Placement rate  Employer feedback on value of hire (e.g. productively, increased revenues, enhanced efficiencies, etc.)  Employee fulfillment  Number of employers and providers involved in review process  Number of completed Initiatives  Successful completion of Initiatives  Employer/provider/customer involvement rate  Level of trust in employee/employer/provider surveys (methodology TBD)

 Increase ticket assignments (5 per month)  Increase placements (4 per month)  Achieve an 80% continuous employment rate over 5 years

 Create a validated competency model based digital platform to connect employers’ and job seekers  Identify and report on best practices, employer engagement and social media plan.  Create a system identifying 3 to 5 employee classifications.  Identify key stakeholders and establish steering committee to design performance Ticket to Work Dashboard; review initiatives and outcomes; hold stakeholders accountable; and communicate with network.  Create awards system to recognize outstanding companies and partners.  Create a social media plan for success stories and metrics.  Assess and report on current participants TTW to reveal why they are pleased with services provided.  Create a system for leveraging existing Certified Rehabilitation Providers (CRPs) to solicit grants and other funding, including crowd sourcing.  Create a financial plan, complete with revenue models, possible public sector resources and funds for 18 months of operations.  Investigate and report on potential steps that will mitigate employer liability.  Create a system for regularly monitoring performance measures and targets, to include a tracking system for leveraging resources.

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1. Introduction This report presents a strategy for implementing a “Ticket to Work” (TTW) program in Washington State to expand competitive employment opportunities for persons with disabilities (PWDs). Such opportunities will allow PWDs to reduce their reliance on disability cash payments and Medicare toward reducing unemployment, increasing incomes, and lowering poverty (i.e., toward financial self-sufficiency) while meeting employer competency requirements. To do so, key factors in our workforce development system should be addressed: 

Increasing employer awareness and recognition of available talent among PWDs.



Aligning the rehabilitation and workforce development system to employer needs and industry-recognized competencies.



Streamlining the TTW administrative process for employers, intermediaries, and job candidates.

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Ensuring that pre-employment training, counselling services, and the job search process do not adversely impact benefits for PWDs.



Eliminating employer misperceptions, such as accommodation costs, safety risks, productivity losses, increased insurance costs, and legal liabilities.

This project reflects a large body of information supporting the business case for developing a diverse workforce by hiring PWDs. This strategic plan was developed by the Washington Business Alliance (WaBA) in collaboration with business, nonprofit, and government organizations and is intended to serve as a guide for future development of an employer-driven Employment Network (EN) and an outcome-based TTW program.

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2. Employment Situation for PWDs Washington State currently faces new realities in its economy and workforce: 

The state’s economy is growing and average unemployment rates are dropping. However, a serious recovery lag has been seen in counties outside of King County. Of the 39 counties in Washington State, 36 have unemployment rates above the national average and 12 show double-digit unemployment rates.



For PWDs, the situation has improved little since the recession. There are over 400,000 PWDs in Washington State, and the unemployment rate for this group hovers around 11.7%.



A number of industry sectors have high demand for a skilled workforce; however, the pool of individuals with proper skills is inadequate, which has resulted in the oft-noted “skills gap.”



An insufficient number of employers have recognized or sought available talent in the population of PWDs.

Profiles of PWDs The word “disability” carries few positive connotations for most employers. Negative attitudes by employers toward potential employees with disabilities may lead to misunderstanding and discrimination, and employment statistics seem to confirm this. As of March 2015, the percentage of PWDs who participate in the workforce is 17.5% nationally, whereas that of people without disabilities is 64.7%. Although the “official” unemployment rate for the nation has dropped to 5.3%, the unemployment rate for PWDs is 11.7%1 (statistics for Washington state are available in the 2012 Disability Statistics Report). As a result of poor employment participation, PWDs are three times more likely to live in poverty than those without disabilities regardless of their geographic location. The current Federal Benefits Rate for 2015 is set at $733 per month for an individual and $1,100 per month

1

US Bureau of Labor Statistics Table A-6: Employment status of the civilian population by sex, age, and disability status, not seasonally adjusted.

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for an eligible couple; thus, people who currently receive these benefits who have no other income live in poverty.2 For many of these people, their only means of overcoming poverty is to obtain a living-wage job with benefits. Studies have shown that the vast majority of PWDs want to work, and others have indicated they can become great employees with higher-than-average retention rates and a rate of absenteeism that is the same as that for employees without disabilities. PWDs are innate problem-solvers (as they have to function in a world where a minor inconvenience for those without a disability becomes a major barrier for them), which is a skill set that employers insist is critical to success. TTW Program The national TTW program was signed into law in 1999 as an outgrowth of Social Security Disability Insurance (SSDI) that was intended to funnel the nation’s growing ranks of injured workers back into the workforce. At that time, there was a great deal of optimism about its contribution toward disabled individuals. Advocates for PWDs testified, “Having a job is so much better than being paid to stay at home,” and, “The role of government should be to assist and encourage PWDs towards employment.”

Ticket to Work Program3 Social Security’s TTW program supports career development for Social Security disability beneficiaries age 18 through 64 who want to work. The TTW program is free and voluntary, and it helps PWDs progress toward financial independence. Under this program, most beneficiaries become eligible for the TTW program when they start to receive Social Security Disability Benefits (SSDI) or SSI benefits based on disability. Beneficiaries may choose to assign their tickets to an EN of their choice to obtain employment services, vocational rehabilitation services, or other support services necessary to achieve a vocational (work) goal. The EN, if they accept the ticket, will coordinate and provide appropriate services to help the beneficiary find and maintain employment. The ultimate goal is to assist recipients of Social Security disability benefits reduce their reliance on these funds. The TTW program also seeks to promote increased self-sufficiency and greater independence for people receiving Social Security disability benefits through work. PWDs receiving benefits from the Social Security Administration (SSA) can use the Ticket issued to them by the SSA to obtain services that assist them in preparing for work, finding and maintaining employment. SSA pays approved service providers, referred to as ENs, when the ticketholders they serve go to work and achieve designated levels of work and earnings. Rather than being a fee for services,

2 3

Social Security Administration, 2015 Red Book, pg. 2. Ticket to Work Website: http://www.chooseworkttw.net/about/index.html

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these payments are compensation for assisting beneficiaries to achieve employment-related milestones and outcomes as they move towards self-supporting employment. Work Incentives are disability program rules that allow beneficiaries to reduce countable income so they can continue to receive cash benefits while exploring work options. Examples of such Work Incentives include the extension of Medicare and Medicaid coverage while working, Impairment-Related Work Expenses, and Plans for Achieving Self-Support. In addition, if work is unsuccessfully obtained, Social Security makes it easy to get back on benefits when needed.

Under the program, most disability beneficiaries are sent “tickets,” which they can take to local ENs—businesses or organizations that help ticketholders with their job searches without collecting fees upfront. If the person finds and keeps a job, the EN is paid for their services by the SSA. Ticketholders keep their disability benefits and health insurance while seeking work. Participation in the program is completely voluntary. “This is about more than jobs or paychecks,” President Bill Clinton said at the signing. “It's fundamentally about the dignity of each human being … about recognizing that work is at the heart of the American dream.” Unfortunately, the program has struggled, and it has done little to address how best to help the millions of people who collect disability benefits. A flawed incentive structure for both disability recipients and the ENs has limited the reach of the TTW program. An audit by the Government Accountability Office in 2011 revealed that less than 1% of all ticketholders had assigned their tickets to ENs and that just 2% of all ENs participating in the program had helped the majority of their assigned ticketholders. According to the latest figures from the SSA, 2.4% of the people eligible for the TTW program are currently using their tickets. In other words, most people who are eligible for free help to leave government benefit plans and enter jobs are not taking advantage of the program. One factor for the low working rates among disability recipients is the daunting nature of enrolling initially for disability benefits. Signing up for benefits requires, first, an in-depth review of medical records by state officials and sometimes doctors. Only 33% of applicants are accepted at this step. From there, applicants can submit an appeal, and an additional 11% pass the review at this point. Everyone else must endure a tense hearing before a judge. The reality is that years may pass between the moment the person is injured and that when they receive 12

their first financial assistance. Many beneficiaries endure extreme financial hardships while they wind their way through the process. Furthermore, disability recipients who return to work and make more than $1,780 per month in 2015 risk losing their benefits and incorrectly believe that they are required to undergo the enrollment process again. Another flaw in the design of the TTW program is that it is 100% supply-side driven. The ENs focus exclusively on recruiting beneficiaries for their ticket assignments, and employer participation is not incentivized or encouraged. Currently, no ENs are being operated by private employers to hire PWDs for their companies. The requirements for establishing an EN and the administrative burden of operating an EN make it cost-prohibitive. Some large employers (e.g., Walgreens) attempted to operate an internal EN in the past but ceased operations because the reimbursement amount from the TTW program did not offset the total expense of running the EN. The WaBA has a vision of how the TTW program can be included in a demand-side approach to improving employment rates for PWDs. See Section 5 for a complete discussion of the WaBA EN model.

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3. Demand-Driven Case Studies for Workforce Development The project team surveyed a number of business-led efforts across the nation to expand hiring for PWDs and to improve the workforce development system in general. We found numerous examples of businesses powering new frameworks for the workforce development system. The new framework addresses real-time competency demands for industry without bias or discrimination by gender, race, sexual orientation, age, or disability. Today’s workforce development system is supply-driven and operates primarily from the perspective of job seekers and training service providers. In contrast, business-led initiatives and the recently passed Workforce Innovation and Opportunity Act4 focus on the demand or employer side, which controls job openings, competency requirement definitions, hiring decisions, apprenticeships, and career pathways. See the following table.

Workforce System Attributes Focus Resource Strategy Credential Leadership Labor Market Time Horizon Measurement

FROM

TOWARD

Supply-Driven Workforce Development Job Seeker Grant/Subsidy-Driven Skills Provider-Determined Public Sector Emphasis Local/Regional Short-Term Job Placement Job Seeker Outcomes

Demand-Driven Workforce Development Employer Incentive-Driven Competencies Industry-Determined Private Sector Emphasis Statewide/National Career Pathway Employer Outcomes

This new framework recognizes that the rate-limiting function for growing the economy is largely related to the available talent pool and its competencies, motivation, and adaptability. Washington has considerable strengths in its science, technology, and innovation capacity.

4

President Barack Obama signed the Workforce Innovation and Opportunity Act (WIOA) into law on July 22, 2014. Congress passed the Act by a wide bipartisan majority, and it was the first legislative reform of the public workforce system in 15 years. WIOA emphasizes engaging employers across the workforce system to align training with needed skills and to match employers with qualified workers. The law also emphasizes training that leads to industry-recognized post-secondary credentials.

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However, the state also needs to scale innovative capacity in the form of manufacturing, distribution, marketing, and support activities. This suggests that we need a workforce strategy that is diverse, inclusive, and seeks to draw on the entire talent pool of the state. The development of talent and the ability to become more innovative are areas in which the state could achieve leading competitive advantages of its choosing.

Employer Hiring Concerns Focus-group interviews and a literature review have identified a number of perceived barriers prospective employers face in hiring PWDs: 

Perception of a lack of qualified candidates from the pool of individuals with disabilities.



Concerns with the cost of accommodations and reluctance to allow flexible work schedules and remote work.



Administrative burden in working with the TTW system.



Unease or discomfort in working with people with disabilities.



A tendency of interviewers to focus on disabilities instead of on candidate competencies.



Lack of knowledge or concern about legal liabilities, re-injury, workman’s compensation, reasonable accommodations, and termination lawsuits.

Rehabilitation Act of 1973, as amended “The Federal government shall become a model employer of individuals with disabilities. Agencies shall give full consideration to the hiring, placement, and advancement of qualified individuals with mental and physical disabilities.” Americans with Disabilities Act Requires employers to provide qualified individuals with disabilities an equal opportunity to benefit from the full range of employment-related opportunities available to others.

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Employer-Driven Models—Observations and Success Factors One component of the project was finding examples of where businesses take a strong leadership role in workforce development and in hiring PWDs. The project team completed 19 case studies of business-led workforce development models. The case studies are neither comprehensive of all business-driven activities conducted nor an independent analysis of the effectiveness of each program. Information gathered for each case study followed the same structure and include: 

Program description



Value proposition and goals



Operational strategy



Outcomes



Partners and program structure

A high-level description of each case study is presented in the following table. Detailed descriptions of each program are provided in the separate Volume II report.

Aerospace Joint Apprenticeship Committee (AJAC)

A statewide nonprofit that meets the demand for a skilled workforce for Washington’s aerospace and advanced manufacturing industries through registered apprenticeship programs.

Partners for a Competitive Workforce A partnership in the Ohio, Kentucky, and Indiana tri-state region focused on meeting employer demand through a training program and database titled the “Employers First Regional Workforce Network.” UpSkill Houston/JPMorgan Chase

JPMorgan Chase is investing $250 million over 5 years to build a demand-driven system through cross-sector gatherings and investments in the most effective workforce training programs.

New Skills at Work/JPMorgan Chase

Provides targeted investments to strengthen and scale the most effective workforce training programs.

Governor’s Office of Workforce Transformation

Ensures that business needs are at the forefront of improvements made to the workforce system through its performance dashboard.

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Port Jobs (Seattle)

Port Jobs connects King County residents to jobs and training opportunities within the airport, trade, logistics, construction, and maritime sectors.

Seattle Jobs Initiative

Offers low-income individuals training that leads to college credentials in growing local industry sectors.

Skills USA

Instills skills and personal achievement in students through competitions in a variety of occupational skill and leadership areas.

Skills for Chicagoland's Future

Serves as a middle man between employers and unemployed, underemployed, and veterans.

Bridges from School to Work/Marriott Foundation

Helps young people—most of whom are transitioning out of high school special education—prepare for the workplace and find a job with an employer in need of qualified, entry-level applicants.

Emerging Leaders/Booz Allen Hamilton

Places college students with disabilities into competitive internships within corporations.

Retail Employees with Disabilities Initiative/Walgreens

Walgreens’ program to hire people with intellectual disabilities as one-third of its workforce at a new high-tech distribution center.

Business Organization & Occupation Service Training (BOOST)/Discover Card

Provides high school graduates and GED holders with physical disabilities training on applying for and obtaining jobs.

Supported Employee Program/Microsoft

Creates opportunities for employing workers with developmental disabilities by Microsoft Real Estate and Facilities vendors.

Bridges to Business/Lowe’s

Established by the National Organization on Disability (NOD) to place disabled workers in Lowe’s distribution centers.

Maxing Out Diversity/OfficeMax

Trains PWDs for careers within OfficeMax’s distribution and retail centers.

Entry Point

A competitive summer internship program that provides experiential learning for students with disabilities.

Project Search/Walmart

Provides training and job opportunities for students with disabilities on site at Walmart distribution centers.

LightHouse for the Blind

Trains and hires blind people for jobs in high-tech manufacturing.

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We were able to identify shared factors among the programs that contributed to their success.

Scaling of successful pilot programs. Companies have used a “scale what works” approach to training and hiring PWDs. That is, many of the programs use a model first implemented in a pilot program before scaling it within the company. Many of the programs also expanded to other companies on a national and sometimes international scale. In addition, some of the companies surveyed created their own models after witnessing the success of others. For instance, many of the programs at distribution centers (e.g., Lowe’s project with the NOD) were modeled after that of Walgreens.

Assistive Technologies. All programs specific to PWDs used assistive technology to make work easier for employees. In some cases (e.g., Walgreens), the technology was helpful for employees without disabilities as well. In addition to helping individuals with disabilities perform their jobs, the technology also helps managers make decisions based on skill requirements without worrying about additional costs for employees needing assistive technology/services. For example, IBM designed their own assistive technologies (e.g., screen readers) to allow people with physical disabilities to participate in their workforce. The company turned this into a market opportunity and now sells various assistive technologies for the workplace.

Partnerships with local service organizations. Companies surveyed relied on local service providers (either public or private) to develop a pipeline of trainees and to provide complementary services such as transportation and counseling. Relying on partner agencies to conduct outreach and screening seemed particularly effective, as it allowed companies to maintain their productivity and take advantage of the expertise offered by community organizations. A great example of such a partnership is the Microsoft Supported Employee Program, which partners with local employment agencies (e.g., AtWork!) to place PWDs at Microsoft Real Estate and Facilities vendors. Outside organizations sometimes provided additional support, such as supplying the necessary assistive technologies and paying for 18

training; furthermore, such organizations often provided disability awareness training to managers. Finally, company managers were ultimately responsible for hiring and training of the workers.

Paid and on-the-job training. Paid training was another critical common element among the programs reviewed. Almost all training programs were paid and on-the-job. No companies promised employment, but those that provided outcome data reported hiring a high percentage of their trainees. Not only was the training mostly paid for but the compensation for training was equal to that of other employees. Furthermore, some programs reported that partner agencies provided counseling to clients about the effects of employment on social benefits, but this crucial component was not mentioned in many of the programs surveyed.

Equivalent standards. In all cases, companies held their trainees with disabilities to the same standards as other employees and rewarded them with the same compensation and benefits. This aided in the normalization of disability and clarified that hiring disabled people was a smart business decision. Critically, many employers reported that their disabled employees outperformed their non-disabled coworkers.

Tailored programs. Programs usually narrowed their focus in terms of the type of disability. Although sometimes offering a simple distinction between intellectual and physical disabilities, the company may have focused on specific disabilities, such as autism. This enabled companies to tailor their program to a specific group of needs, improve manager training, and implement the right types of assistive technologies. For instance, programs at Walgreens, Lowe’s, Microsoft, and Walmart focused on hiring people with intellectual disabilities, whereas IBM focused exclusively on people with physical disabilities who were able to perform as software programmers.

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The overwhelming sentiment expressed by the business leaders involved in these programs was that hiring PWDs was not for charity. Instead, this is a business decision that has helped companies become more productive. Walgreens, for instance, found that the distribution center where the

“Hiring qualified men and women with disabilities is a good business decision and good citizenship.” Ralph Shrader, CEO, Booz Allen Hamilton

REDI program started was 20% more productive than before its implementation. Other companies reported that they saved money on items like safety costs and had lower rates of attrition.

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4. Balanced Scorecard for the EN On March 31st, 2015, business, non-profit, and government organizations convened in Seattle at a meeting organized by WaBA and the Governors

What is a Balanced Scorecard?

Committee on Disability Issues and Employment.

The Balanced Scorecard is a strategic planning and management system used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to provide managers and executives with a “balanced” view of organizational performance. In the case of the Ticket to Work project, performance goal categories were modified and the workshop was an open process in that multiple organizations and stakeholders contributed to the design of the strategic plan.

The purpose of the meeting was to address the major challenges involved with increasing employer commitment to hiring PWDs, and the goal was to formulate a strategy and proposes initiatives for implementing demand-driven EN for the TTW program. The planning process used in the meeting was propelled using a modified Balanced Scorecard approach developed in collaboration with Jim Kastama & Associates.5 See Appendix A for the EMPLOY Washington Agenda.

The Agenda and Planning Process The purpose of the meeting was introduced by David Giuliani (WaBA) and Toby Olsen (GCDE) and was followed by a keynote address by Kirk Adams, president and CEO of the Lighthouse for the Blind. Egils Milbergs and Mike Hudson of the project

team initiated the strategic planning process by presenting a proposed vision, mission, and value statement.

VISION Opening pathways to meaningful careers by installing a culture of universal inclusion and respect within every employer in Washington.

5

The agenda, participants, and background materials for the meeting can be found in Volume II of this report.

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MISSION The proposed Employment Network expands employer awareness of the talent of PWDs, aggregates employer job openings and competency requirements, and communicates such requirements to the appropriate training, counseling, assessment, and pre-hiring services to provide meaningful, integrated employment that results in financial self-sufficiency for Washington SSI/SSDI recipients.

VALUES Diversity Passion Ethical Customer Service

Respect Fairness Teamwork Competence

To provide additional background and context, select participants gave 3-minute “lightning talks” to define critical issues and propose major challenges to the group.

MAJOR CHALLENGES       

Presented at the lightning talk panels How do you market the value of TTW and hiring PWDs to employers? How do we disseminate success stories to a wider audience? How can we teach businesses to speak the language of prospective employees (e.g., veterans)? How can we simplify the process of hiring PWDs for employers? What technologies can help? How can the state play a role? Contribute to public awareness? Assist in financing? Who should employers reach out to in order to find candidates? Who are the main points of contact for hiring PWDs?

With these challenges in mind, participants were organized into four-person working groups and tasked with formulating high-impact initiatives for implementing a demand-driven EN. Initiatives were structured to fit into five performance goals areas and metrics: 1. 2. 3. 4. 5.

Customer Public Value & Benefit Internal Process Learning & Growth Financial

The following table presents the resulting initiatives by performance goal and in order of priority (determined by votes received). See Appendix B for detailed initiative information.

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PERFORMANCE GOALS

Customer

PERFORMANCE MEASURES



Our customers see us as a professional,  knowledgeable, fast, and responsible company  and as a path to self-sufficiency, and thus, they will refer other customers. Companies see us as a  deliverer of competent, motivated, and loyal  employees and refer other businesses.

Public Value & Benefit We lower the poverty rate and the long-term unemployment rate, enhance economic growth and productivity, and reduce overall cost to the Social Security system, making it more viable for future generations.

Internal Process We are expert matchmakers and assessors of employee skills and employer demands.

         

INITIATIVES

 Create a program to assist employers and employees when they encounter problems with placement, fit, or performance. Include an ongoing mentor/affinity program. Increase in customer satisfaction rate  Develop a system to accurately assess employers’ Increase in employer satisfaction rate present and future needs. Increase in survey ratings in the Social  Identify compatible industries by establishing Security “Timely Progress” review connections with key employers who are currently Timeliness of job placement hiring PWDs. Number of employer referrals  Create a system to allow employers easy access to potential employees utilizing technology.  Design an employer outreach program that encourages PWDs to request accommodations in hiring process.  Develop case studies that match employer needs Number of participating employers and interest to show value-added from initial Number of PWDS elected for the meeting. program  Create public relations program/marketing campaign Number of potential customers featuring positive employee work characteristics, interviewed including leadership, time management, creative Number customers hired problem solving, and dedication. Launch small- and Retention rate once hired medium enterprise supplier initiative to hire PWDs. Income progression  Identify and implement a public space to share key Savings to the Social Security testimonials by leveraging technology and social Administration media.  Create a validated competency model-based digital Placement rate platform to connect employers and job seekers Employer feedback on value of hire  Identify and report on best practices, employer (e.g., productivity, increased revenues, engagement, and social media plan. and enhanced efficiency)  Create system identifying 3–5 employee Employee fulfillment classifications.

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  We are consistent and deliberate (using evidence-  based practices) and communicate continuously. We  have a system of shared accountability and shared  value creation.

Learning & Growth



Financial We are a self-sustaining and free service for employers.

 

Number of employers and providers involved in the review process Number of completed initiatives Successful completion of initiatives Employer/provider/customer involvement Surveys on level of trust in employee, employer, and service provider (methodology TBD)

Increase ticket assignments (5 per month) Increase placements (4 per month) Achieve an 80% continuous employment rate over 5 years

 Identify key stakeholders and establish steering committee to design TTW performance Dashboard, review initiatives and outcomes, hold stakeholders accountable, and communicate with network.  Create awards for outstanding companies and partners.  Create social media plan for success stories and metrics.  Assess and report on current participants in TTW to reveal why they are pleased with the service.  Create system for leveraging Certified Rehabilitation Providers (CRDs) to solicit grants and other funding, including crowdsourced funding.  Create a financial plan complete with revenue models, possible public sector resources, and funds for 18 months of operations.  Investigate and report on potential steps that mitigate employer liability.  Create a system for regularly monitoring performance measures and targets, including a tracking system for leveraging resources.

6.6

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5. Implementation Scenario The proposed EN will service a multi-regional area, starting with a pilot phase with selected employers. It will focus on a targeted pool of PWDs and prepare them for work across a spectrum of entry-level, mid-career, and highly-skilled positions in four industry sectors: 1) Federal government contractors 2) Information technology and software 3) Manufacturing 4) Retail With a successful pilot phase, the EN will become a scalable and extensible system across all regions of the state and be capable of accommodating other target population groups.

Design Features The proposed EN will help resolve four needs for the workforce development system:6 

Timely information on current and future job demands and competency requirements.



Greater employer participation rates in the development of disabled worker competencies and qualifications.



Improved access to and alignment of the workforce development system.



The provision of market-like incentives to employers, intermediaries, and service providers for successfully placing qualified workers in jobs.

A key feature of the model is the leveraging of Certified Rehabilitation Providers (CRPs) or Competency Brokers—trained HR experts working within a government, industry, or non-profit organization or association—who aggregate member employer job demands and skill requirements into “Competency Request Orders” (CROs). These CROs become the basis for recruiting candidates and initiating a bidding process among providers to offer training and counseling to satisfy CROs. Significant incentives can be realized by employers, intermediaries, and providers for successful job placements. As an employer-operated model, the EN offers inherent advantages.

6

Workforce Training and Education Coordinating Board, Washington Employer Survey January 2013. Boston Consulting Group and Washington Roundtable. “Great Jobs Within Our Reach” March 2013. WA Student Achievement Council, State Board for Community & Tech. Colleges, and Workforce Training & Education Coordinating Board. “A Skilled and Educated Workforce: 2013 Update” October 2013.

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Unlike the supply-driven workforce development system, employers have a primary role in defining job demand and career opportunities and driving alignment of training and support services for job candidates. Furthermore, industry sets standards by which to judge the value of service providers and ultimately the value that candidates bring to the job. The proposed EN encourages competition among alternative training solutions and makes transactions between employers (demand) and providers (supply) more efficient.

Step 1: Employers Identify Needs. Firms elect to participate in the EN and the WaBA Competency Marketplace to effectively communicate their need (demand) for jobs and skills. The EN will work with designated intermediaries, Certified Rehabilitation Providers (CRDs), or Competency Brokers to i) prioritize suitable job openings; ii) define current and future job openings and related skills utilizing industry competency models; iii) commit to providing onthe-job (OJT) paid work experience, such as apprenticeships or paid internships. Step 2: CROs. Brokers consolidate employer needs into CROs, which are aggregated and entered into a platform (eventually digital) to explore competitive offers from training providers for assessing, training, and delivering qualified individuals from the pool of PWDs and other targeted categories. Step 3: Labor Pool Assessment. Working through its partners, the EN will i) identify suitable individuals from the labor pool; ii) conduct capability assessments; iii) prepare plans for upgrading those capabilities; iv) arrange specialized interventions and counseling (e.g., financial, health, and assistive technology).

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Step 4: Provider Offers. Providers who are interested, qualified, and confident in their training and support services present offers to satisfy employer CROs. Step 5: Employer Review and Agreement. The EN represents employers to i) review training provider offers; ii) apply value criteria such as appropriateness, curriculum, timing, training strategy, and business fit to select providers; iii) agree to the employer commitment for accommodations, OJT, and pre-employment training opportunities; iv) establish industryacceptable credentials or badges; v) negotiate final agreements on services and incentive payments. Step 6: Training. Beneficiaries are enrolled for the appropriate level of counseling, training, coursework, and support services. Based on a pre-arranged formula and depending on resources leveraged, training providers are compensated for each enrolled participant. Depending on their needs, beneficiaries may also be eligible for additional subsidies, credits, and assistance. Step 7: Employer On-site Training. An employer working in collaboration with service providers will integrate and fulfill its pre-hire activities in combination with coursework and counseling. Step 8: Certification. Upon successful completion of the coursework, counseling, and on-site training, beneficiaries receive an industry-recognized credential in addition to provider credentials. Step 9: Interviewing and Hiring. At this stage, employers provide consideration to interviewing and hiring of a credentialed beneficiary into a full-time job. Step 10: Job Placement and Final Incentive Payment. Hiring decisions contribute to the ultimate goal: an individual is granted skills and competencies to start an unsubsidized and meaningful career and/or occupation. Step 11: Final Incentive Payment. The EN receives a TTW payment(s) for each year a beneficiary is hired with such revenues shared on a pre-determined basis with employers, intermediaries, and providers. In summary, the proposed EN design: 

Connects TTW beneficiaries and training providers with employer needs statewide.



Engages industry more effectively to define job demands and requirements and is committed to the hiring of PWDs.



Enhances the competencies and earnings prospects of PWDs.



Invites competition and innovation among training providers.



Ensures substantially higher interview and job placement rates for PWDs.



Promotes the alignment of providers with employer requirements.

 Builds a scalable model for servicing other labor pool categories across larger geographies.

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6. Recommendations for Next Steps Demand-Driven EN Partnership Organize a demand-driven EN Partnership (ENP) on behalf of private-sector employers to promote the TTW program as an incentive for hiring PWDs that acts as a resource for reasonable accommodation, training, and job coaching, helps meet the disability hiring requirements of Section 503 of the Federal Rehabilitation Act, and provides other support. The initial partnership should be formed with key employers who are currently hiring PWDs. The ENP will develop a system to accurately assess present and future needs of employers. When a business is ready to hire an individual with an assignable ticket, the ENP will accept the ticket assignment and provide all mandatory services of an EN, assist employers and employees when they encounter problems with placement, fit, or performance, and share Ticket revenue with the employer. The WaBA will encourage those businesses to use the proceeds from the TTW program to establish an internal fund for financing the costs of providing reasonable accommodations and recruiting, training, promoting, and maintaining PWDs. The sharing of Ticket revenue will be available to all employers in the state (including local governments) as they increase their efforts to recruit and hire PWDs. WaBA is well-positioned to develop such a partnership and secure the involvement of employers in the Ticket program and offer ticketholders more and better employment opportunities.

Steering Committee Identify key stakeholders and form a steering committee to oversee the evolution of the ENP. The steering committee would meet quarterly to review the Balanced Scorecard initiatives and outcomes, hold stakeholders accountable, and communicate regularly with the network. A TTW performance dashboard should be designed to facilitate an effective quarterly review. An annual review should also be conducted with an independent party to ensure objectivity in performance measures and to help guide adjustments to the strategic plan and new initiatives as required.

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Public Relations and Outreach Create a public relations program and marketing campaign featuring positive work characteristics of PWDs including leadership, time management, creative problem-solving, dedication, and other attributes. Launch a special focus on SME supply chain companies to consider hiring PWDs.

Financial Plan Create a financial plan complete with revenue models, possible public sector resources, and sufficient funds to operate the ENP for 18 months or until it is financially self-sufficient. The ENP should leverage existing CRPs to solicit grants and other funding, including crowdsourcing.

Competency Marketplace Create a validated competency-based digital platform to connect employers and job seekers. Leverage existing industry-developed competency models and develop data capture methodologies that link competencies to relevant factors such as employer hiring needs, industry-recognized skill standards, available training resources, training costs, certified individuals, location, and pay scales. WaBA’s preliminary design for a digital Competency Marketplace should be integral to the implementation of the ENP. The design should be progressive and evolve over time as it draws on the expertise of partner organizations with operational knowledge of diversity strategies, employer hiring/training practices, competency certifications, assessment tools, and best practices in demand-driven workforce models. The Competency Marketplace should operate to maximize three interrelated performance outcomes: one focused on employer satisfaction, a second measuring the performance of providers, and a third focused on the outcomes for beneficiaries. Examples of beneficiary outcomes include: 

Beneficiaries served



Beneficiaries enrolled in education/training activities



Beneficiaries completing education/training activities



Beneficiaries receiving industry-recognized credentials



Beneficiaries obtaining interviews for full-time positions 29



Beneficiaries obtaining full- and part-time unsubsidized employment

 Average wage earned in placement into unsubsidized employment Examples of employer outcomes include: 

Number of Competency Request Orders (CROs)



Train to hire programs initiated for PWDs



# of beneficiaries placed



Submittal to hire ratio



Time to fill



Cost per placement



Retention rate



Average wages paid



Total wages paid



Employer satisfaction

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ACKNOWLEDGEMENTS We wish to acknowledge those involved in this project, including project leader Egils Milbergs and project coordinator Mike Hudson, who were responsible for the overall project direction and the development of this report, Caroline Halter for conducting the research on employerdriven case studies, Erin Williams for coordinating the logistics for the strategic planning workshop with stakeholders held March 31st, 2015, and Jim Kastama & Associates for providing the Balanced Scorecard methodology for the strategic planning working groups. The funding for this project was provided by the Governor’s Committee on Disability Issues and Employment.

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Appendix A: EMPLOY Washington Meeting Agenda

EMPLOY Washington 8:00 AM–2:45 PM, March 31, 2015 K&L Gates, 925 4th Ave, Seattle, WA 98104

Meeting Agenda 8:00– 8:30 8:30– 8:45

REGISTRATION and NETWORKING

8:45– 9:15

OPENING KEYNOTE  Kirk Adams, President and CEO, Lighthouse for the Blind

9:15– 10:00

FRAMEWORK FOR EMPLOYING PWDS  How the Ticket to Work program works  Partnership models and lessons from around the United States  Balanced Scorecard and performance measures for the Employer Network

10:00– 10:30

LIGHTNING TALKS 3-minute lightning talks from Washington employers, public agencies, workforce intermediaries, and philanthropies to share their workforce development strategies, practices, and outcomes. This serves as context and deeper background for the creation of strategic initiatives. Moderator: Egils Milbergs, Washington Business Alliance NETWORKING INTERMISSION

10:30– 10:45 10:45– 11:30 11:30– 12:00

12:00– 1:00 1:00– 1:45 1:45– 2:15 2:15– 2:45

WELCOME  David Giuliani, Founder and Board Chair, Washington Business Alliance  Toby Olson, Governor’s Committee on Disability Issues and Employment

LIGHTNING TALKS (continued) Moderator: Mike Hudson, Washington Business Alliance WORKING GROUP ASSIGNMENTS Attendees break into groups of 4–6 people to solve challenges posed by speakers and create initiatives that address the performance measures identified in the Balanced Scorecard. LUNCH WITH ASSIGNED WORKING GROUPS WORKING GROUPS Working groups continue to interact and prepare solutions and initiatives for the Employer Network. WORKING GROUP REPORT-OUTS Initiatives are posted on the wall and participants have the opportunity to prioritize initiatives. REVIEW RESULTS AND DISCUSS NEXT STEPS

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Appendix B: Balanced Scorecard Strategic Initiatives

CUSTOMER GOAL INITIATIVES  

       

Create program to assist employers and employees when they encounter problems with placement, fit, or performance. Include an ongoing mentor through an affinity program. Engage with employers in ways they need to engage—prove value before meeting with them. Then, understand their current and future needs to determine fit. Then, match their needs. Don’t say “this is what we have” and expect them to figure it out. Clarify the difference between a referral and an inquiry using accurate and documented data. Identify industries to work with by establishing connections with key employers currently hiring PWDs, such as federal contractors. Develop profiles of beneficiaries most likely to succeed. Develop relationships with companies that have existing programs that are hiring PWDs. Create an easy access point for both employers and customers. Utilize technology: live chat, smartphone apps, and 24-hour access. Employer or Customer host live chat (e.g., for FAQs). Design an employer outreach program that encourages PWDs to request accommodations in the hiring process.

PUBLIC VALUE & BENEFIT INITIATIVES  



Develop case studies that match employer needs and interest to show value added from initial meet. Employers will not willingly engage if the ROI is not presented upfront. Benchmark this data using commonly understood definitions:  Utilized  Called to inquire  100% success  17 out of 50 completed training and were hired Create public relations program/marketing campaign featuring all work veterans completed in the military. For example, logistics implies leadership, time management, creative problem solving, and dedication.

Priority Rank (participant votes)

6.5

4.5

4.0 1.0

0.0

Priority Rank (participant votes)

9

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

   

 

Investigate and create a public awareness campaign  Media campaign  Employer outreach  Redefining normal  Creating an onboarding culture Periodic checks to determine whether this is still the right fit Recruit employers to tell their success stories and include savings and benefits to society High-visibility private sector Award program based on solid business metrics Launch supplier diversity initiative and encourage SMEs to hire people such as PWDs and veterans. Identify and implement a public space for sharing key testimonials by leveraging technology and social media.

INTERNAL PROCESS INITIATIVES  

 

  



Validate competency model-based digital platform to connect employers and job seekers Organize platform around competency/skills and tag the following:  Employers with need  Salary for union and non-union  Training courses  Cost of training  Locations  Candidates with certified skills Engage existing rehabilitation workforce development system regarding the following:  Best practices Who to engage at the employer level Develop social media plan for reaching employers and beneficiaries Create a system that identifies 3 to 5 classifications of employees Develop relationships with organizations doing this work above and leverage their programs Provide opportunities to “try out” different careers and jobs:  Job shadowing  Working interviews  Pre-employment investigations Establish key relationships with like-minded employment agencies

5

2

1 1

Priority Rank (participant votes)

5

5

2

0

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LEARNING AND GROWTH INITIATIVES 

           

Identify key stakeholders and establish steering committee to accomplish the following:  Design performance dashboard for Ticket to Work  Review initiatives and outcomes  Hold stakeholders accountable  Communicate regularly with the entire network Solicit nomination of successful business cases and value propositions, and recognize the best among their peer firms with tangible awards Celebrate successes with public acclaim, such as the Governor’s Award and WaBA Honor Roll Solicit in-kind contributions from employers who provide hiring success stories Create marketing campaigns from agencies that are model employers to retain/develop candidates Make the government work to redefine the program to streamline the process and reduce bureaucracy, and create programs that work effectively and are easy to employ Audit all agencies and organizations that do or engage in this work to determine who performs best—work with those best performers, leverage what they do, and report to the public Engage the media for public service announcements to raise community awareness Identify success stories (company and practitioners) and promote them among similar employers to increase adoption Develop social media plan to tell and solicit success stories Create and publish significant metrics “Transparency is the twin sister of accountability” Assess current participation (both employers and customers) and discover “why they drank the Kool Aid”:  Focus groups  Best practices  Surveys  Follow-up phone calls

FINANCIAL INITIATIVES    

Leverage existing CRDs to prime the model and reach financial selfsufficiency Solicit grant program Crowdsourcing Prepare financials

Priority Rank (participant votes)

7

4

3 3

Priority Rank (participant votes)

6

3 35

       

Consider revenue models Leverage public sector resources Raise sufficient funds for 18 months of operations Prepare data book to accompany anecdotes Protect Employers from American Disability Act and Equal Employment Opportunity claims if hire goes bad through limited liability Ensure that Labor & Industry worker’s compensation liability is not imposed on new ER owing to re-injury or a repetitive motion condition Closely monitor the other performance measurement targets and make changes as needed Create tracking system in order to leverage resources

1

0

ADDITIONAL IDEAS (not prioritized)       

Solicit nomination of successful business cases and value propositions. Recognize the best with tangible awards among peer firms Celebrate successes with public acclaim, such as Governor’s Award and WaBA Honor Roll. Solicit in kind contributions from employers’ who have success stories in hiring, retaining, and developing candidates (e.g., marketing campaign from a model employer agency). Redefine program to streamline, reduce bureaucracy, and create program that works effectively and is easy for employers’ to work with. Make government work. Audit all agencies and organization that conduct or engage in this work to determine who performs best—work with those best performers and leverage what they do. Report to the public. Engage the media for public service announcements to raise community awareness. Identify success stories (company and practitioners) and promote them among similar employers’ for adoption.

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APPENDIX C Participants in EN Partnership Design

Aerospace Joint Apprenticeship Committee (AJAC) Alaska Air Bellevue College Center for Advanced Manufacturing Puget Sound (CAMPS) Cashmere Molding Clover Park Technical College Codefellows Consolidar Governors Committee for Disability Issues and Employment Edmonds Community College Employment Security Department Center for Excellence Aerospace and Advanced Manufacturing CH2M Hill Hire America's Heroes Impact Washington Keiretsu Forum Lake Washington Technology Institute LeadersUp Millionaire Charity Club Orion Industries

Pacific NW Center for Excellence for Clean Energy Pacific Science Center Port of Seattle Red Dot Renton Technical College Seattle Lighthouse for the Blind Tacoma Chamber of Commerce The MacKey Group LLC True Blue University of Washington Unleesh WA State Rehabilitation Council Washington Business Alliance (WaBA) Washington Access Fund Washington State Board for Community and Technical Colleges Washington State University Women in Innovation Workforce Snohomish Washington Technology Industry Association (WTIA)

37