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Modernizing workforce support: challenges and innovations

States face challenges relating to structure, data, employer alignment and skills development that must be overcome to thrive in the future.


In brief
  • Lessons were learned and many states are either in a better place than pre-2020 or are actively working on making substantial changes for the better.
  • State and local governments played a larger role in connecting residents, employers, community education and local economic development organizations.
  • Our career centers connected residents to reskilling and job opportunities, both online and in person, after assessing their needs.

Some state and local workforce development agencies reframed their strategies and played a vital role in getting people back to work by transforming their reemployment experience. Others are still working on optimizing that experience to meet the needs of their constituents. Today, workforce challenges continue to be dauting to both job seekers and employers. Many workforce development agencies still face challenges in fulfilling their mission of providing reskilling, upskilling and new employment opportunities for out-of-work residents.

Constituents usually first become introduced to workforce service programs when they file for unemployment. Today, the number of programs and the way they are organized can seem overwhelming and hard to navigate to some constituents, presenting barriers to accessing relevant services.

 

There is often little connectivity between application processes for unemployment and reemployment, leading to redundancy in the application processes where data could be shared to maximize efficiencies and personalize services. During the pandemic, the in-person appointments and manual application and case management processes that are typical in many states became a significant impediment to constituents’ ability to swiftly access and enroll in needed reskilling and job placement programs. These challenges accelerated modernization and constituent centered solutions for several states, but many states continue to struggle.

 

One of the lessons we learned during the pandemic was that we need to engage constituents at an earlier stage in their career journey rather than being the resource of last resort. Seeking employment and training for new skills and certifications has moved increasingly online in the last two decades, a trend that is only likely to continue to accelerate as AI begins playing a bigger role in the unemployment to reemployment journey. With commercial digital platforms growing increasingly dominant in this space, state and local workforce services will face declining usage unless they can evolve to match the experience and utility of private enterprise.

 

We see four key challenges facing workforce development agencies that must be overcome for them to increase their relevance to constituents today and to position themselves as long-term career partners of constituents in the future of work.

How can workforce agencies overcome these challenges?

Some of the key changes will include becoming more stakeholder-focused, stripping out complexity to make processes simple and efficient, developing best-of-breed curricula that meet the needs of tomorrow’s workforce and creating a unified experience for residents to find various types of support along their career journeys.

The future of workforce services puts people first

To better meet constituent needs, workforce agencies should pivot from being a safety net to a sought-after resource for career development, reskilling and new employment opportunities.

States have a vested interest in supporting their constituents, a healthy workforce also means increased tax revenue, economic growth and a boost to attracting the best employers and workforce to the state. By focusing on modernizing workforce development services, states can also realize performance gains through process efficiencies, cost savings and interagency collaboration.

States will need to adapt their services to meet the needs of today’s workforce. They will need to help close the technical skills gap, starting with less-educated workers who are at risk of sinking below the poverty line, and moving upstream to serve a broader range of constituents who are looking to reskill to stay relevant in a rapidly changing job market.

Employers will continue to value employees with relevant training and certifications as more employers reexamine their historic mandate for four-year degrees in a world where workers need to focus on lifelong learning to stay relevant.

Shifting from being a resource of last resort to a connected employment journey

Today, a constituent’s engagement with unemployment and workforce development services begins when they lose their job. Services are siloed, with constituents at first filing an unemployment insurance claim. At the same time, in some states, they might be asked to complete an application for workforce development services as a prerequisite to accessing unemployment relief. In the current state journey, access to employment and reskilling services becomes just another barrier to receiving funds rather than an integrated, supportive experience.

The ideal future state we envision for states is one in which they play a much larger and connected role in the lives of their constituents. States need to consider the full career journey of a citizen and seek to play a supportive role in as many phases as possible, to be viewed as a trusted partner rather than an outpost to be visited at the lowest point of their career path.

States can start to engage young learners as early as middle school by exposing them to career options through services such as guidance counseling and engaging in the myriad of web-based learning tools available. By secondary school, students benefit from sessions on financial literacy, including budgeting access to state financial aid, school housing and job search assistance. Many states have even located their “One-Stop Centers” or career centers in high schools for direct career counseling, classes on building resumes, effective interviews and salary negotiations. By establishing a bond with students from a young age, workforce agencies will be more likely to be viewed as a partner of choice and a familiar resource as they continue to progress in their careers.

Modernizing the reemployment experience through workforce support

Playing a more connected role in constituents’ lives will require a technological leap forward for most workforce development agencies. Constituents have been conditioned through years of interactions with commercial e-commerce platforms and digital consumer services to expect seamless, pain-free interactions and transactions. Today’s enrollment and case management processes at states tend to be paper based, in person and manual, creating numerous pain points for constituents.

These include confusion about the enrollment process and eligibility requirements, advocacy that is program-oriented rather than citizen-oriented, and time-consuming processes requiring multiple, in-person visits to agency offices. While some degree of in-person and paper-based services is required today to support low-income workers with limited access to technology, as the digital divide is bridged, consumer-grade digital services will be increasingly expected.

Workforce agencies should look to accelerate the modernization of their systems to meet citizen expectations and improve their service levels. This means both designing user experiences for onboarding and case management that are simple and intuitive, while also building a flexible and scalable back-end architecture to reduce long-term costs and accelerate future enhancements.

Architectures that leverage contemporary design standards, such as the use of microservices and select best-of-breed vendors to support modules such as data management, identity management, learning management and content management, will stand a better chance of being able to pivot quickly to match the speed of change in the jobs market. Advantages of this style of architecture include enhanced integration with third parties that allows for faster deployment of new services, data interoperability and functional modules that can be repurposed and extended rather than rebuilt (reducing the cost of maintenance), and the ability to offer data-driven recommendations that are smart and personalized.

The future: a connected employment journey

Interactions begin with positive support across a lifetime and provide an integrated reemployment experience to intelligently map skills and accelerate re-entry into the workforce.

Reskilling is a team sport

The third element that complements a citizen-first consumer lens and modernizing systems to position states for success in the future of workforce development is building the right ecosystem of partners. The landscape of training and learning looks radically different than it did just 10 years ago, with a blooming of new entrants into specialized fields such as digital academies, content delivery channels, talent marketplaces, learning management systems and talent assessments. States will need to take a strategic approach to how they leverage such organizations and how they can strengthen relationships with more traditional partners such as universities, employers and job boards.

As different stakeholders in the ecosystem have different needs, states should look to develop mutually beneficial alliances. For example, employers want better data about the talent pools of the areas in which they invest in campuses and office space. States want better data about the types of skills that are in demand in the marketplace so they can adjust their training programs accordingly. Effective partnerships and programs are now being developed that allow for these kinds of exchanges to take place.

Data becomes the fuel that makes these alliances run. State agencies need to improve their ability to collect, manage and use data effectively for decision-making and providing added value to constituents and partner organizations. At a fundamental level, states should be trying to crack the code on using available data to help residents and education partners make better decisions about program content and training plans, as well as matching applicants with the services and reskilling classes that will provide them the best opportunities to improve their career outlook.

Three steps to visualize and design a blueprint for the workforce journey

1. Define your future
  • Detail agency vision, goals and outcomes
  • Map out citizen pain points and determine what changes are required to transform their engagement with your agency
  • Analyze current-state infrastructure (e.g., technology, process, data, partnerships)
  • Set quantifiable benchmarks and goals to measure success
2. Build the roadmap
  • Assemble a team to deliver on transformation
  • Socialize with internal stakeholders to ensure buy-in of new initiatives
  • Confirm monitoring, governance and oversight to ensure compliance and reduce risk
  • Produce tangible “wins” on a regular basis to maintain stakeholder support
3. Execute transformation
  • Assemble a team to deliver on transformation
  • Socialize with internal stakeholders to ensure buy-in of new initiatives
  • Confirm monitoring, governance and oversight to ensure compliance and reduce risk
  • Produce tangible “wins” on a regular basis to maintain stakeholder support

The views reflected in this article are those of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.

Summary 

States face challenges relating to structure, data, employer alignment and skills development that must be overcome for them to stay relevant and thrive in the future. By focusing on the constituent’s lifetime career journey and systems modernization and building a data-driven ecosystem of complementary partners, states can enhance the value they provide to constituents in the arena of workforce development and become trusted partners that are more than just the last resort in the time of greatest need.

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