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Generation Overview
MCKINSEY SOCIAL INITIATIVE 4
GENERATION OVERVIEW
2
Established in 2015, Generation seeks to close
the skills gap for young people.
Our mission is to empower young people to build
thriving, sustainable careers and provide
employers the highly skilled, motivated
talent they need.
Our vision is to enable a career-launching job for every young person, anywhere in the world
3
WHAT IS GENERATION?
Generation is built upon deep research into the
best ways to address youth unemployment
• McKinsey & Company study of
150 employment programs in
25 countries, and surveys of
over 15,000 employers,
educators, and young people
• Education to Employment:
Designing a System that
Works report summarizes
findings
• Independent nonprofit
McKinsey Social Initiative
(MSI) founded by McKinsey
& Company
• Youth unemployment chosen
as first issue for MSI:
Generation is born.
• Generation is live
across five countries
(India, Kenya, Mexico,
Spain, and US), with
rapid expansion on the
horizon
2013 TODAY2014
3
4
HOW WILL WE ACHIEVE OUR GOALS?
Generation addresses two areas of need for
the youth employment field
WHAT IS GENERATION?
What kind of jobs do we target for our
students?
• High growth industries and/or high
employer demand
• Medium skill level required, possible to
fully train in a 5-12 week program
• Provides a livable wage (i.e., above local
minimum wage) and viable career
• Interesting and attractive to young
people in our target population
• Marked by high scarcity or high churn,
so that employers are committed to
closing the existing skills gap
5
6MCKINSEY SOCIAL INITIATIVE
GENERATION OVERVIEW
Generation’s programs are designed to create
disruptive impact along the value chain
6
Gen
era
tio
n In
terv
en
tio
ns
Ind
us
try G
ap
s Business case
not established
Unresolved
student
pain points
Mismatch in
demand and
supply
Limited
screening for
learners
Low
relevance for
employers
Direct employer
engagement
right from the
start to pre-
commit job
slots in high-
demand/scarci
ty middle skill
professions
Detailed
activity and
skill mapping
at employers;
curriculum
designed that
weaves
together
technical,
behavioral and
mindset skills
Recruit
students based
on basics (e.g.
literacy,
numeracy),
intrinsics, and
motivation
Social support
services for
those in need,
mentorship
during and after
training, and
mapping
students to jobs
based on where
they live
Rapid delivery
through 4-12
week
bootcamps;
quality of
instruction
managed
through weekly
performance
checks, in-class
cameras, and
remote
coaching
Employer ROI
performance
(productivity,
quality,
retention)
tracked at place
of work, as well
as graduate
ROI (personal
and financial
well-being) via
Gallup
Inadequate
learning during
training
7
The Generation approach has seven
components
GENERATION OVERVIEW
A community that
follows graduates into
the workplace
5-12 weeks of
technical, behavioral,
mindset & professional
presence skill training
Social support services &
mentorship along the way
Jobs & direct employer
engagement from the start
Recruit students based
on intrinsics, effort, and
employment standards
for the profession
Return on investment
for employers, students,
and society
Data at
the center
1
3
4
5
26
7
8
Generation runs six programs across ten US
cities
GENERATION OVERVIEW
Current cities and programs
Current cities
Wilmington, DE
Atlanta, GA
Houston, TX Jacksonville, FL
San Francisco, CA
San Jose, CA Las Vegas, NV
Healthcare Customer serviceInformation
TechnologyCraft professions
▪ Certified nursing assistant ▪ Customer service rep
▪ Hotel front desk clerk
▪ Call center operator
▪ IT Help Desk technician ▪ Construction helper
Miami, FL
Washington DC
Birmingham, AL
Generation continues to develop new programs, and can launch an entirely new profession in 12-18 weeks
MCKINSEY SOCIAL INITIATIVE 99
85%81%307Employment rateGraduation rate
87%Retention rate at
three monthsEmployer partners
GENERATION OVERVIEW
Generation US has graduated over 81% of enrolled
students and placed 85% of those grads in jobs, with
87% retention at three months post-placement
241400 60 6Training sites Enrollments Cohorts Professional
programs
MCKINSEY SOCIAL INITIATIVE 10
Generation US works with disconnected youth who face
a range of barriers to employment and well-being
The typical Generation student Generation US student pool overall
Gender Female 58% female, 42% male
Race African-American 68% African-American, 17% Hispanic or Latino, 7%
Asian-American, and 7% Caucasian or other
Age 22 years old Range from 18 to 29 years old, with the average being
22 years old
Marital
status
Single 87% single, widowed, or divorced; 13% married or in a
relationship
Education High School diploma or GED, but no
higher education
4% have no high school diploma or GED; 62% have
completed high school or GED only; 22% have some
higher education; and 12% have completed some form
of higher education
Income Earning $746 per month and receiving
government assistance
Average income is ~$9k annually; 99% of single parents
are legally in poverty before the program
Family May have children 31% have children; that 31% on average has 1.74
children
6
GENERATION OVERVIEW
MCKINSEY SOCIAL INITIATIVE 11
ROI for graduates (data gathered by Gallup and Generation)
Generation delivers a positive ROI for US graduates
1 Comp TIA A+ Certification
Generation graduates report
higher well-being than their
peers
• Gallup’s well-being survey
of Generation graduates
and their non-Generation
peers shows that
Generation graduates are
twice as likely to report that
they are “thriving” in terms
of life purpose
Generation graduates
outperform peers in
certification exams
• For CNA, graduates have a
93% certification pass
rate compared to a 50%
national average
• For IT, graduates have a
75% certification pass
rate compared to a 33%
national average1
• For construction, graduates
have a 100% pass rate
Generation graduates’ income
increased by 2.5x after the
Generation program
• The average Generation US
student’s income increased
from $746/month before
Generation to $1,800/month
after Generation
• The majority of Generation
graduates earn above
average income relative to
the US national youth
population
Certifications Income Well-being
GENERATION US IMPACT TO DATE
12
ROI for employers (data gathered by Gallup and Generation)
Generation demonstrates ROI for employers
Generation graduates add value to employers’ bottom
line through several levers
• Hiring and onboarding: Employers save ~50% of
hiring and on-boarding costs
• Productivity and performance: The majority of our
graduates are rated as “good” or “best” performers
(85% in customer service, 76% in CNA)
• Retention: Generation graduates have higher
retention rates (59% retention after 6 months in
customer service, compared to 50% industry average)
• Tax Credits: 50% of graduates qualify for the Work
Opportunity Tax Credit, worth $2400 in year one and
an additional $9600 after year two
Financial ROI Supervisor satisfaction1
• 94% of supervisors would recommend their
employer hire Generation graduates again
• 83% of Generation graduates were ranked above
average relative to non-Generation employees
with similar levels of experience
• 93% of graduates were recognized for complying
with safety/regulatory practices
• 82% of customer service graduates were
significantly better at establishing a warm and
welcoming environment according to supervisors
For CNA, each Generation graduate yields ~$5,300 in value to the employer in the first year 2
For call centers, each Generation graduate yields ~$3,800 in value to the employer in the first year
GENERATION US IMPACT TO DATE
13
Our Customer Service program has run in eight
cities across the US with over 600 graduates
GENERATION US IMPACT TO DATE
Program
Description
5-week training for 25 students, delivered as General Customer Service or for specific
industries
Graduates placed in retail, hospitality, and call centers
Our
coalition
The Wal-Mart Foundation and multiple philanthropies have supported this program, for
entry-level and incumbent workers
Curriculum
details
Technical skills for customer service: Safety standards, cash handling, workplace oversight,
people leadership
Behavioral skills for customer service: Professionalism, adaptability, communication, and
teamwork
Mindsets for long-term success: Growth mindset, personal responsibility, future orientation,
persistence
Specific simulations in the program: Helping an upset customer, cross-selling and up-selling,
multi-tasking while engaging customers
Graduates to Date Graduation rate Placement Rate1
13
1 Includes graduates both employed and enrolled in higher education
686 78% 84%
14
Our IT Helpdesk program has run successfully
in Jacksonville, Miami, San Jose, and Birmingham
GENERATION US IMPACT TO DATE
Program
Description
10-12 week training for 25 students taught by a certified instructor
Graduates earn certification in CompTIA A+ and Network+
Our
coalition
Miami funded by TechHire grant in partnership with Miami Dade College
Birmingham funded by America’s Promise Grant in partnership with University of Alabama
Jacksonville program funded for three years by CareerSource of Northeast Florida
Curriculum
details
Hardware skills: Inside of a computer, motherboards, CPUs, RAM and memory, printers,
hard drives and peripherals, mobile devices, laptops
Software skills: Installing and configuring Windows, cloud computing, mobile operating
systems, configuring email, security settings
Behavioral skills: teamwork, adaptability, customer focus, communication
Mindsets for long-term success: Growth mindset, personal responsibility, future orientation,
persistence
Customer service skills: Tickets and ticketing systems, prioritizing and elevating tickets,
addressing a client, client-friendly communication, assisting an upset client
Graduates to Date Graduation rate Placement Rate
14
232 87% 90%
15
Our CNA program has run successfully in
Wilmington, Pittsburgh, and San Jose
GENERATION US IMPACT TO DATE
Program
Description
8-week training for 16 students taught by certified CNA instructors, including 80 hours
internship in a healthcare facility
Graduates earn certification to be nursing assistants
Our
coalition
Delaware WIB, local philanthropies, and local employers are funding programs for 120
graduates in the next 18 months
Curriculum
details
CNA Technical skills: Lab equipment and beds, fluids, oxygen needs, wounds,
emergencies, end of life care
Behavioral skills for CNA: Compassion, teamwork, adaptability, professionalism,
communication, emotional consistency
Mindsets for long-term success: Growth mindset, personal responsibility, future orientation,
persistence
CNA Fundamentals: Patients' rights, flow sheets, safety, hygiene
Graduates to Date Graduation rate Placement Rate
15
134 89% 89%
16
Our Craft Professions program has run
successfully in Houston
GENERATION US IMPACT TO DATE
Program
Description
4 week training for 18-25 students taught by a certified instructor
Graduates earn NCCER Core certification (and OSHA-10 certification if desired in region)
Our
coalition
The United Way, the Greater Houston Partnership, and the local WIB are supporting /
funding the program
8 employers are also supporting the program (committed to hiring and interviewing
graduates)
Curriculum
details
Technical skills: Construction math, Safety rules and protocols, Power tools, Material
handling, Hand tools, Construction drawing
Behavioral skills: communication, proactivity, teamwork
Mindsets for long-term success: Personal responsibility, future orientation, growth,
persistence
Graduates to Date Graduation rate Placement Rate
16
89%
1 The first cohort graduated in Winter 2016 and are being placed now
1 7 89%
17
Case study: Generation exclusively places CNAs with one
employer in Delaware
Hiring: Recruiting enough
CNAs required significant
time investment of
recruiters (e.g., hundreds
of applications, frequent
interview no-shows, 1:5
offer to interview ratio)
Performance: Frequent
customer complaints
resulting from CNAs with
under-developed soft
skills, low ownership, and
lacking teamwork
Turnover: 75% turnover,
with top-performing CNAs
leaving to work at other
employers for more pay
and a “better culture”
Employer context
Hiring: Recruiters save significant time
because they have predictable pipeline with
a 4:5 offer to interview ratio
Performance: 71% of Generation
graduates outperform their peers, and 96%
of shift supervisors recommend hiring from
Generation again. Generation graduates
particularly regarded for their soft skills and
teamwork
Turnover: 11% turnover of Generation
graduates at 90 days. Employer now offers
annual bonuses to retain Generation
graduates
Tax Credits: 50% of Generation graduates
qualify for Work Opportunity Tax Credits,
worth $2,400 in the year of hiring and
$9,600 after two years of retention
Impact of Generation partnership
LAUNCHING AND SUPPORTING GENERATION
Our employer partner
now pays 40% of the
cost of training per
hire
Employer engages
closely in helping to
select and prepare
students during the
program
Sustaining success
18
Case study: Generation builds recruitment, training, and retention
platform for national employer of direct support professionals
Hiring: Employer cannot
recruit enough direct
support professionals1
(DSP)
Performance: New DSPs
consistently felt under-
prepared by existing
training program,
threatening client
satisfaction and safety
Turnover: High turnover
drives 30% of labor cost
going to overtime pay
Employer need: Given the
breadth of needs
throughout the company,
this employer contacted
Generation to provide an
end-to-end solution
Employer context
Hiring: Generation is working with
employer’s staff to build a recruitment
model that can attract opportunity youth
to the company
Performance: Generation is designing a
custom curriculum to train for this role,
based on observations of best practices
and breakdown moments, as well as
interviews with top performers and their
managers. The curriculum will integrate
the technical skills, soft skills, and
mindsets students need to be top-
performers
Turnover: Generation training
employer’s staff to mentor employees to
help them overcome barriers to retention
Impact of Generation partnership
LAUNCHING AND SUPPORTING GENERATION
Via a 3-cohort pilot,
Generation will refine
the curriculum and
methodology to
deliver sufficient
financial impact to
cover the cost of
training
Following a successful
pilot, this program will
be scaled throughout
New Jersey, then to
Pennsylvania and
eventually nationwide
Sustaining success
1 Direct Support Professionals work with people who have cognitive disabilities. Tasks vary based on the client, but include helping with everyday tasks
like shopping, anticipating and navigating challenging situations for the client, and ensuring the safety and well-being of the client, including practicing
physical restraint if necessary
19
Our funders and employers nationwide
OUR PARTNERS
19
Funders
1 These employers have hired at least 3 Generation graduates
Employers1
MCKINSEY SOCIAL INITIATIVE
WILL YOU BE PART OF THE CHANGE?
Change lives.
Transform business.
Make Generation a movement.
Help us change a million lives,
and bring vibrant new talent into
our workforce for the long term.
20