Skills and Credentials for Business and Job Growth
An Industry Sector Strategy Report
October 2014
LWIA 15
Crater Regional Workforce Investment Group
114 N. Union Street
Petersburg, VA 23805
1
Table of Contents
Executive Summary
3
Introduction
4
CRWIG
4
Business Engagement Process
4
Sector Spotlight
5
Workforce Skills and Credentials
6
Essential Skills for the Region’s Workforce
6
Priority Credentials
7
2013 Credential Attainment
8
Credential Attainment Goals for 2014-16
8
Increased Funding for Credentials and Essential Skills: A 3-Year Plan
9
Workforce 2017: Trained, Ready to Work, Credentialed
9
Incorporating Essential Skills
10
Prioritizing In-demand Credentials
10
Leveraging Philanthropic Partners
11
Reducing Operations Costs
11
Plan Summary
11
Conclusion
12
References
13
Appendices:
A – Secretary of Commerce and Trade Memorandum
B – Governor’s Executive Order 23: Establishing the New Virginia Economy
Workforce Initiative
C – Healthcare Industry Sector Report
D – Local Area Labor Market Information Profile (July 2014)
E – Overall Credential Attainment and Goals for PY 2013 – PY 2016
F – National Work Readiness Credential Profile
2
Executive Summary
As the nation continues its recession rebound, the projections for career opportunities in
high-growth industries such as Advanced Manufacturing, Logistics, and Healthcare are very
positive in the Crater Region. For example, due to demographic shifts and a variety of
changes and advances in the nation’s healthcare system, the healthcare industry in the
Crater Region is expected to experience a 30.8% increase in employment over the next five
years. However, the benefits from the Region’s positive job growth will be out of reach for
many jobseekers if they don’t have the essential skills and required credentials to
meet the demand of businesses in these high-growth sectors.
This report outlines the top occupational credentials needed by local businesses in highgrowth industry sectors in the Crater Region. In addition to credentials that count, this
report discusses the equally important matter of essential skills. The report also identifies a
plan to achieve the workforce of 2017: trained, ready to work, and
credentialed. This plan consists of 4 primary strategies: incorporating essential skills
training, prioritizing in-demand occupational credentials, leveraging philanthropic
partnerships, and reducing operations costs. As the Workforce Investment Board (WIB) for
the Crater Region, CRWIG prepared this report as a part of its ongoing business
engagement strategy, as well as in response to a request from the Commonwealth of
Virginia, Office of the Secretary of Commerce and Trade.
3
Introduction
Crater Regional Workforce Investment Group
The Crater Regional Workforce Investment
Group (CRWIG) was established in July 2000
as the local Workforce Investment Board
1
(WIB) for the Crater Region . The mission of this business-led organization is to align
workforce services to meet the needs of local employers for skilled and motivated workers.
CRWIG accomplishes this mission by focusing on expanding the pipeline of workers
through improved collaboration with partners, alignment of training capacity to meet
economic development targeted industry needs, and managing the expectations of skills
and credentials for jobseekers.2 CRWIG prepared this report as a part of its ongoing
business engagement strategy, as well as in response to a request from the Office of the
Secretary of Commerce and Trade (OSCT Memo, Appendix A). The Secretary intends to
drive increased attainment of workforce credentials in Virginia, and seeks input from local
Workforce Investment Boards regarding the priority credentials and projected levels of
attainment to meet regional industry needs.
Business Engagement & Data Collection Process
The CRWIG engages businesses across the region in order to examine their current and
future workforce development needs, as well as foster communication and collaboration
between workforce investment partners and representatives of high-growth industries. As
a part of this ongoing effort, CRWIG convened three roundtable discussions for businesses
in Healthcare, Manufacturing, and Logistics/Distribution/Warehousing/Transportation
(LDWT) during the summer of 2014. These three-hour sessions included presentations by
industry representatives and other workforce system stakeholders. The sessions also
included focus group discussions on forecasts for growth in the local industry, projected
workforce development needs, and gaps in worker skills and credentials.
A total of 80 representatives of small and large businesses, K-12 leaders, and nonprofit
organizations participated in the roundtables. CRWIG used information gathered during
the roundtables to design an online business needs survey to triangulate statewide data3
on hiring projections and identify specific credentials and skills required to meet current
and projected workforce needs for businesses in the high-growth industry sectors. The
1
Serves the cities of Colonial Heights, Emporia, Hopewell and Petersburg, as well as the counties of Dinwiddie,
Greensville, Prince George, Surry and Sussex. This area is referred to as the Crater Region, or Local Workforce
Investment Area 15.
2
CRWIG/Learn To Earn 2013-2017 Strategic Plan
3
Statewide data from the Virginia Employment Commission (VEC) Labor Market Information (LMI) department and
statewide data from the Virginia Health Workforce Development Authority (VHWDA) pertaining to industry
projections.
4
survey was also used to increase awareness of the CRWIG as a workforce intermediary
involved in developing the local workforce, and identify a group of business
representatives to participate workforce planning efforts.
The survey respondents were asked to identify specific credentials needed for their current
and potential workforce. Respondents were also asked to select the top five skills needed
by their workforce, and to rate the relative importance of each skill. The survey also
presented the opportunity to obtain a sense of the level of awareness about the CRWIG
among businesses in high-growth sectors, and to estimate the willingness of business
representatives to serve on an industry-specific workgroup for workforce development in
the Crater Region. The online survey was deployed to a total of 243 business contacts;
reminders were made by phone and via email during the three-week response period. A
total of 27 contacts completed to the survey, for an 11% overall response rate.
Sector Spotlight: Healthcare
The healthcare industry is one of three sectors identified in the CRWIG five-year strategic
plan for targeted alignment activities. A 30.8% rise in employment is expected in the
region’s healthcare industry over the next five years4. For example, in July 2014, the
industry has the highest number of advertised job openings in the region among all other
occupation groups (515 openings compared to the next highest occupation, sales, with 350
openings). This growth is due to increases in the elderly population and other demographic
shifts, as well as a variety of changes and advances in the nation’s healthcare system.
However, the positive job growth projections
Job Openings in
must be considered in context; there is a stark
220
the Crater Region
196
mismatch between the available supply of labor
Available
and demand in several occupations in the
48
41
Candidates in the
Crater Region
healthcare industry. For example in July 2014 a
Nursing
Registered
total of 41 job openings in the region were posted
Assistant
Nurse
for nursing assistants, compared to a total of 196
candidates currently available in the region; for
Supply & Demand Mismatch
the same time period, a total of 220 registered
nurse job openings were posted, compared to a
total of 48 available candidates. As a part of its alignment activities, CRWIG will focus on
strategies to reduce and eliminate workforce supply and demand mismatch in the region’s
healthcare industry. The full report on the Region’s healthcare sector (Aligning the
Healthcare Workforce Pipeline) can be found in Appendix C.
4
Virginia Employment Commission – Labor Market Information report, May 2014
5
Workforce Skills and Credentials
Essential Skills for the Region’s Workforce
Occupational credentials are only a part of the workforce
development needs for businesses in the Region’s high-growth
industry sectors. CRWIG’s ongoing business engagement process
revealed a critical need for essential skills for the current and
emerging workforce. Business representatives have indicated that
some current employees and a substantial amount of potential
employees are significantly lacking in the “soft skills” or “work
readiness skills” department – skills such as teamwork, decisionmaking, and communication. CRWIG refers to these skills as
essential skills due to the overall importance of these skills in the
hiring and employment retention process. Research suggests these
skills are important for first-time employees and are critical to
developing and maintaining a strong, vibrant workforce (US
Department of Labor, 2014).
“Other skills are
needed – reliability,
flexibility, working
with others. Soft
skills are essential
skills – there is
nothing soft about
it.” – Business
Roundtable Participant
CRWIG analyzed the top essential skills required by businesses in the Region’s high-growth
industry sectors using data from the focus groups and business workforce needs surveys.
As Chart 2 illustrates, communication was the essential skill most commonly cited as
missing or limited in the workforce by survey respondents, followed by problem
solving/critical thinking and work ethics tied for second on the list of essential skills noted
by businesses. Teamwork and customer service skills were listed as the top fourth and fifth
essential skill. In addition to being the among most cited essential skill, work ethics was the
skill most commonly cited by businesses as ‘very important’ (1), followed by customer
service, communication, problem solving/critical thinking, and teamwork.
Chart 2: Essential Skills for the Workforce (in rank order from 1-5)
1
2
3
4
5
Response Count
30
25
20
15
10
5
0
6
Priority Credentials
One of the primary strategies CRIWG uses in order to achieve its mission is providing
resources to support occupational skills training for current and emerging members of the
local workforce. CRWIG has heard the clarion call from Governor McAuliffe (Executive
Order 23, Appendix B) and is sharpening its focus on the workforce credentials that count
for business growth and increased employment opportunities in the Crater Region.
It is important to note that as a workforce intermediary, the CRWIG can have an indirect
impact on the credentials of a significant portion of the local workforce, through
partnerships with education, community, and business partners. In terms of direct impact
however, the CRWIG is responsible for a much smaller percentage of the overall number of
occupational credentials awarded in the Region. Due to the limited amount of funds
available through the organization’s primary funding source for training (WIA/WIOA), it is
necessary to limit the overall scope of planning for specific credential goals.
Through its recent local plan development process, the CRWIG identified three sectors that
are high growth industries in the Region: Healthcare, Manufacturing, and LTWD (Logistics,
Transportation, Warehousing and Distribution). The workforce skills and credentials plan
will focus on these priority areas, with the understanding that business sectors and
corresponding credentials in demand will be modified as a part of the ongoing engagement
process with the Region’s business community. In the table below, the top five credentials
are listed in priority order, based on primary and secondary data analysis.
Table 1
Healthcare
1. Licensed Practical Nurse
(LPN)
2. Registered Nurse (RN)
3. Certified Nurse Assistant
(CNA)
4. Administrative Assistant*
Manufacturing
1. High School Diploma/GED
2. Forklift Certification
3. Associate Degree
LTWD
1. Commercial Driver’s License
(CDL)
2. High School Diploma/GED
3. Forklift Certification
4. Career Readiness Certificate
4. Associate Degree
(CRC)
5. Certified Dental Assistant
5. American Welding Society
5. Security+ Certification
(CDA)
Certification (AWS)
*multiple credential options are available to meet the administrative assistant occupation requirements, such as
Associate of Applied Science Degree and Career Studies Certificates.
CRIWG analyzed data regarding credential attainment for the past two years, and identified
the number of credentials that match demand for high-growth sectors in the region. While
progress is being made on some of the demand credentials, a plan is needed that will result
in a significantly higher number of in-demand occupational credentials and essential skills
available in the Region’s current and emerging workforce by 2017.
7
2013 Credential Attainment
This section illustrates the number of credentials that were achieved directly through
CRWIG’s resources in the local workforce system during the period July 1, 2013 through
June 30, 2014 (PY14). The figures refer to the top five credentials in demand by businesses
in the high-growth sectors; refer to Appendix E for overall credential attainment for PY14.
Table 2
Credentials
# Customers Trained
# Credentials Obtained
American Welding Society Certification (AWS)
3
2
Associate Degree
2
2
Career Readiness Certificate (CRC)^
143
143
Certified Dental Assistant (CDA)
1
0
Certified Nurse Assistant (CNA)
35
10 (+2 in progress)
Commercial Driver’s License (CDL)
3
3
Forklift Certification
0
0
High School Diploma/GED
39
39
Licensed Practical Nurse (LPN)
7
4 (+2 in progress)
Registered Nurse (RN)
2
0 (+2 in progress)
Security+ Certification
0
0
TOTALS
235
203
^The CRC is a Virginia Workforce Board credential; CRWIG will meet or exceed state level goals
2014-16 Credential Attainment Goals
The table below outlines goals CRWIG has established for attainment of the top five
credentials in the Region’s high-growth industries. Please refer to Appendix E for overall
credential attainment goals for Program Years 2014-2016. CRWIG projects a minimum
credential attainment increase of 10% during year 2015 and 10% percent during year
2016.
Table 3
Credentials
# Customers Trained
# Credentials Obtained
American Welding Society Certification (AWS)
5
4
Associate Degree
3
2
Career Readiness Certificate (CRC)^
143
143
Certified Dental Assistant (CDA)
3
2
Certified Nurse Assistant (CNA)
10
8
Commercial Driver’s License (CDL)
6
5
Forklift Certification
3
2
High School Diploma/GED
40
40
Licensed Practical Nurse (LPN)
8
6
Registered Nurse (RN)
5
2
Security+ Certification
3
2
TOTALS
237
222
^The CRC is a Virginia Workforce Board credential; CRWIG will meet or exceed state level goals
8
Increased Funding for Essential Skills and Credentials: A 3-Year Plan
Workforce 2017: Trained, Ready to Work, and Credentialed
When combined with Labor Market Information (LMI), the
data collected through the business sector roundtables and
workforce needs surveys provides useful insight regarding
the next steps CRWIG should take to meet the needs of local
businesses for skilled and motivated workers. A clear plan is
needed that will result in a significantly higher number of indemand occupational credentials and essential skills
available in the Region’s current and emerging workforce by
2017. The Secretary of Commerce and Trade for the
Commonwealth of Virginia notes the importance of such a
plan in his memorandum to the leadership of Virginia’s
Workforce Investment Boards and other agencies that
operate workforce development programs across the state.
The Secretary pointed out that career opportunities in fields
such as Advanced Manufacturing, Information Technology,
Energy, Logistics and Health Care offer the prospect of good
jobs in high growth industries and are readily accessible to
those who are trained, credentialed and ready to work.
“Career opportunities
in fields such as
Advanced
Manufacturing,
Logistics, and Health
Care offer the prospect
of good jobs in high
growth industries and
are readily accessible
to those who are
trained, credentialed,
and ready to work.”
-Maurice Jones, Secretary of
Commerce and Trade
A number of administrative efforts can support the essential skills and credential
development for the workforce of 2017. CRWIG will coordinate Workforce Center
management in milestone tracking such as the number of customers enrolled in highdemand training and specific program retention rates. The CRWIG’s business solutions
team will conduct quarterly reviews of goal progress with workgroups for the healthcare,
manufacturing and LDWT industry sectors. These and similar efforts will result in datadriven decision making and real-time adjustments in strategies to improve essential skills
and in-demand credential attainment.
However, administrative and program management efforts must be supported by an
overall increase in funding for occupational skills training in the region. CRWIG will
implement an aggressive plan to increase the percentage of WIA funds expended on
training that leads to essential skills and occupational credentials in demand by highgrowth sectors in the region. This plan consists of 4 primary strategies: incorporating
essential skills training, prioritizing in-demand occupational credentials, leveraging
philanthropic partnerships, and reducing operations costs. The specific details and
objectives for each strategy are discussed in the following sections. A summary of the
strategies, objectives, evaluation methods, and projected timeframes is available in Table 4.
9
Incorporating Essential Skills
The first strategy in CRWIG’s plan for a trained, credentialed
and ready workforce in 2017 focuses on essential skills. As
noted previously, communication, problem solving/critical
thinking, work ethics, teamwork and customer service are the
skills most commonly cited as missing or limited in the
workforce by businesses in the region. In order to ensure
current and potential employees receive necessary training
in these essential skill areas, CRWIG will enhance partnerships with organizations that
specialize in work ready skill training. This will include seeking additional non-government
funds to support essential skills training for all individuals enrolled in WIA/WIOA funded
occupational skills training. CRWIG will adopt a policy to require integration of essential
skills training in the individual service strategies for all Workforce Center and youth
program contractor customers.
CRWIG will also explore options for credentials related to essential skills. An example is the
National Work Readiness Credential (Appendix F), which has been developed to provide a
national, portable assessment-based certification that affirms individual jobseekers have
demonstrated the foundation knowledge and skills that are needed for successful
performance as entry-level workers. CRWIG will identify at least one essential skills
credential option for the local workforce as a part of its plan for developing a trained,
credentialed, and ready workforce for 2017.
Prioritizing In-demand Credentials
As noted in previous sections of this report, CRWIG
has clearly identified the top 5 occupational
credentials in-demand by businesses in the Region’s
high-growth industry sectors. This information will
be disseminated to all Virginia Workforce Centers,
youth program contract agencies, and other
workforce partner agencies in the Region. CRWIG
will ensure that program operators and contractors
redouble efforts to carefully assess and evaluate candidates for occupational skills training,
in order to maximize the success rate for in-demand credential obtainment.
CRWIG will adopt a policy requiring contractors serving adults, dislocated workers, and
youth to expend a minimum of 50% of all WIA training funds on training that leads to at
least one of the top 5 occupational credentials in-demand by businesses in the healthcare,
manufacturing, and LDWT industries (see Table 1). This 50% expenditure requirement will
remain effective each year, until the Region has met the annual occupational credential
10
goals established for each in-demand sector, as outlined in Table 3. CRWIG’s policy will
require a focus on credentials that are in demand, with the understanding that high-growth
business sectors and corresponding in-demand credentials may need to be modified as a
part of the ongoing engagement process with the Region’s business community.
Leveraging Philanthropic Partnerships
CRWIG will increase the development efforts of its 501(c) 3 nonprofit organization (Learn
To Earn, Inc.) in order to secure foundation and private resources to supplement the
workforce training budget. In the past, Learn To Earn, Inc. has received support from
business partners as well as private foundations in the region. In order to obtain flexible
resources that can be targeted to credential and essential skill training activities, CRWIG
will partner with Learn To Earn, Inc. to submit a minimum of two grant proposals each
year. Additionally, Learn To Earn, Inc. will partner with other nonprofit organizations such
as AmeriCorps to leverage in-kind staffing, which will allow for reallocation of funds to the
WIA training budget.
Reducing Operations Costs
The final strategy in CRWIG’s plan for a trained, credentialed and ready workforce in 2017
involves reducing overall operations costs. CRWIG will review and renegotiate its existing
cost allocation plans for all physical One Stop Center locations. Workforce Centers which
are operated by state agencies (such as the Virginia Employment Commission) should
require cost sharing for staff and specific staff related costs. However, in instances where
WIA/WIOA funds are being used to pay for items such as utilities and rent, CRWIG will
request an elimination of that line item. This strategy will allow for reallocation of a
significant amount of WIA/WIOA funds currently used for operations to be redirected to
the training budget. As a part of the operations review, CRWIG will explore reorganization
and restructuring of its two Workforce Centers in the Tri-Cities area.
Plan Summary
Strategy
Incorporating
Essential Skills
Table 4
Prioritizing indemand occupational
credentials
Leveraging
philanthropic
partnerships
Reducing Operations
Costs
Objective
 Identify essential skills
partners
 Identify essential skills
credential
 WIB policy adopted
 Policy implemented
 Increase in credentials
 Submit 2 grant proposals
 Obtain in-kind staffing
 Eliminate duplicate costs
 Reduction in overall
operations costs
Evaluation
 Partnership
agreements/MOUs
 Essential Skills
Credential policy
 Meeting minutes
 Monitoring reviews
 Performance measures
 Administrative records
 Partnership
agreements/MOUs
 Cost allocation plan
review notes
 Administrative records
Due Date
 June 2015
 December 2015




December 2014
June 2015
July 2016
Annually as of
January 2015
 June 2015
 Annually
11
Conclusion
Essential skills and occupational credentials are critical workforce development needs for
businesses in the Region’s high-growth industry sectors. The urgency for action cannot be
overstated. A few localities in the Crater Region have some of the highest unemployment
rates in Virginia5 yet businesses are struggling to fill vacancies, and many are required to
seek qualified candidates from localities outside of the region. This trend is certainly
reversible. The plan outlined in this report will increase the availability of resources to
produce essentials skills and in-demand credentials among members of the local
workforce. If implemented as planned, the workforce of 2017 will be trained, credentialed,
and ready to work in some of the most promising career fields available in the Crater
Region, and the Commonwealth of Virginia.
5
As of July 2014, Virginia’s unemployment rate is 5.3%; the cities of Petersburg (10.3%), Emporia (8.6%), and
Hopewell (7.7%) are among the top five localities in the state for unemployment rates.
12
References
An Alignment Strategy: Strategic Plan 2013-2017. Crater Regional Workforce Investment
Group.
Davenport, Tom. The Future of the Manufacturing Workforce. Manpower Report. Retrieved
on September 10, 2014 from
http://www.manpowergroup.com/wps/wcm/connect/01f826c0-1678-4424-a644384795186d55/Man_Manufacturing-Overview_021913.pdf?MOD=AJPERES.
Health Resources and Services Administration (HRSA) Bureau of Health Professions. The
U.S. Nursing Workforce: Trends in Supply and Education. April 2013
Ready to Work: Job Driven Training and American Opportunity. July 2014. White House
Report. Retrieved September 2014 from
http://www.whitehouse.gov/sites/default/files/docs/skills_report.pdf.
Skilled Trades Gap Analysis Report: Final Report. A Study Commissioned by the Virginia
Manufacturers Association, Virginia Workforce Council, and Virginia Manufacturing
Advisory Council. October 2007.
Skills to Pay the Bills: Mastering Soft Skills for Workplace Success. United States Department
of Labor, Office of Disability Employment Policy. Retrieved October 2014 from
http://www.dol.gov/odep/topics/youth/softskills/
Virginia Labor Market Services. Local Area Profile retrieved on July 21, 2014 from
www.VirginiaLMI.com
Virginia Logistics Research Center Feasibility Study. Crater Planning District Commission.
2009. Retrieved on September 3, 2014 from http://www.craterpdc.org/pdf/20095-27-VLRC_Feasibility_Report_vers._2.1.pdf.
Where the Jobs Are: The New Blue Collar. Retrieved on October 13, 2014 from
http://www.usatoday.com/longform/news/nation/2014/09/30/job-economymiddle-skill-growth-wage-blue-collar/14797413/
13
Appendices:
A – Secretary of Commerce and Trade Memorandum
B – Governor’s Executive Order 23: Establishing the New Virginia Economy
Workforce Initiative
C – Healthcare Industry Sector Report
D – Local Area Labor Market Information Profile (July 2014)
E – Overall Credential Attainment and Goals for PY 2013 – PY 2016
F – National Work Readiness Credential Profile
14