Raise the Floor & Build Ladders: Workforce development that works for all

Raise the Floor, Build the Ladder: Good Jobs for New Mexico’s Workforce

April, 28 2015Maureen Conway

Why do we need Build Ladders and Raise the Floor Strategies?

1. Education and skills are important2. Education and training are not everything3. Different industry sectors present different

challenges and opportunities4. Tools beyond training are needed to address

the challenge of low-wage work

Education is important…

… and we’re making progress

Unemployment Rate for Blacks and Whites aged 25 and older, by Educational Attainment, 2011 Annual Average

Source: Bureau of Labor Statistics, Current Population Survey, http://www.dol.gov/_sec/media/reports/blacklaborforce/

But education isn’t everything …

Productivity growth and real hourly compensation growth, nonfarm business sector, selected periods, 1947–2009

Source: Fleck, Monthly Labor Review, 2011 (BLS data)

… and the return to skills is variable

Demand for Credentials is growing, even if they aren’t always needed…

% job holders with Bachelors

%job openings requiring Bachelors

Credential Gap

First-line supervisors of production and operating workers 17% 62% 45%

First-line supervisors of Mechanics, Installers, and Repairers 14% 48% 34%

First-line supervisors of construction trades and extraction workers 12% 33% 21%

First line supervisors of food workers 15% 36% 21%

Source: Moving the Goalposts: How Demand for a Bachelor’s Degree is Reshaping the Workforce www.burning-glass.com

Credential Gap in Front Line Management

• In 2013, 20.6% of adults (between 24 and 65) worked in jobs that paid $11.27/hr or less (threshold for 125% of poverty, family of 3) and 30.8% earned $13.53/hr or less (150% of poverty)

• 49% have at least 1 child under 18 in HH• 35.8% of women (v. 26.2% of men) are low-wage

workers• 49% of Hispanic, 41.5% of black and 24.1 of non-

Hispanic white workers are low-wage

… but demand for low-wage workers has not abated.

Distribution of low-wage work by industry, 2013

Only those industries which account for 3 percent or more of sub-standard employment are included

Manufacturin

g

Constructi

onRetail

Transp. &

Warehousin

g

Admin. & su

pport

Education Sv

cs

Health Care

Food Sv

cs & drin

king

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%

% of Low Wage Work% of workers within the industry who are low wage employees

• Company started in 2014 with backing from Coca-Cola

• Start a company that solves a biz problem• Offers businesses way to fill short-term

immediate need

• Founded in 2012 with $13 million in venture capital

• Platform for consumers to hire short term help

In both cases…• Unpredictable hours; unstable incomes• Competition keeps wages low; • No benefits

• Substantial proportion of f.t. jobs• Benefits—vacation, health, retirement• Ownership options• Predictable schedules• Cross-training

Satisfied customers:“I LOVE Quick Trips. They are clean and fast. The Cashiers are friendly. There is fresh window cleaner. The inside of the store is clean. it's CHEAP.”

Job Quality Wages

Benefits Safety

SupervisionScheduleRespect

Communication

TransportationJob DesignLegal

Economic Stability

CareerAdvancement

Skill Building

Job Experience

Raise the Floor and Build the Ladder

Raise the Floor StrategiesStrategy Approach ExamplesPersuade Appeal to biz self interest to

improve design of jobs• The SOURCE• Manufacturing Works

Regulate Change public policies to create a competitive playing field that encourages job quality

• IAF• ROC• School of Labor &

Emp. Relations; UI-Urbana

Create Develop model business that highlights job quality issues and shows viability of better jobs; use as platform to influence public and private decision making

• CHCA/PHI• Primavera Works

Example:

Coaching & consulting for eldercare and disability service providers

Training & support for direct-care workers and those they assist.

Promoting policies to strengthen the direct care workforce

Strong base of experience

Industrial AreasFoundation:

Faith Democracy Leadership ImpactRelationships

COPS/Metro

Economic development that includes Community

Final Thoughts• One organization doesn’t have to do everything– Partnerships / relationships essential

• No one model– Variety of factors influence strategy

• Leadership and innovation critical– Nascent field—experimentation needed

• Can’t make change unless we’re willing to change– Courage required to question conventional wisdom,

pose tough questions & try something new

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Maureen ConwayExecutive Director, Economic

Opportunities ProgramThe Aspen Institute

Maureen.conway@aspeninst.org@conway_maureen