For  example, virtually all of these collaborations grew out of efforts to address  critical workforce needs of multiple employers, typically in a specific  sector, rather than focusing on individual employers. Additionally, the  partners in these initiatives made extra effort to understand and work with  employers so they could tailor services such as jobseeker assessment,  screening, and training to address specific employer needs. Partners remained engaged in these  collaborative efforts because they continued to produce a range of results  for employers, jobseekers and workers, and the workforce system and  other partners. For example, in  Greensboro, North Carolina, the board staff provided expedited services  for an aircraft company by designing a web-based recruitment tool and  customized assessment process within 48 hours and quickly screening  over 2,400 initial applicants, according to a board official. In some cases,  employers cited an increased supply of skilled labor. In  Cincinnati, Ohio, according to an independent study, employers who  participated in the health care initiative realized about $4,900 in cost  savings per worker hired. Workforce Boards Overcame Some Challenges to Address Diverse Employer Needs and Developed Their Own Measures to Track Employer Engagement

Although all of the boards were successful in their collaborative efforts,  they identified some challenges they needed to overcome. Staff from most, but not all, of the  boards also said that WIA performance measures do not directly reflect  their efforts to work with and engage employers. However, we found that  many of the boards developed a number of their own performance  measures to assess their services to employers. Some Boards Were Challenged to Develop Comprehensive Strategies to Address Diverse Employer Needs with WIA Funds

Some boards identified challenges in using WIA funds to address  employers’ need for workers at various skill levels. In Chicago, staff track measures  such as the number of new employers served every year and the hiring  rate among jobseekers that they had referred to employers. Labor Has Taken Steps to Support Local Collaborative Efforts and Address Some Challenges but Has Not Made Information on Leveraging Resources Readily Available

To help boards form partnerships with employers, colleges, and other  partners, Labor has conducted webinars and shared information on the  uses of and opportunities for funding such collaborations. Conclusion

At a time when the nation continues to face high unemployment in the  wake of the recent recession, it is particularly important to consider ways  to better connect the workforce investment system with employers to  meet local labor market needs. However, while Labor  has also collected relevant information on effective strategies that local  boards and partners have used to leverage resources, it has not compiled  this information or made it readily accessible. Recommendation for Executive Action

To better support the capacity of the local workforce investment system to  collaborate with employers and other partners, the Secretary of Labor  should compile information on workforce boards that effectively leverage  WIA funds with other funding sources and disseminate this information in  a readily accessible manner. Labor agreed with our findings and recommendation. Appendix I: Objectives, Scope, and Methodology

Our review focused on (1) the factors that facilitated innovative  collaborations among workforce boards, employers, and others; (2) the  major challenges to collaboration; and (3) the actions Labor has taken to  support local workforce boards in their collaborative efforts. To identify these selected  sites, we asked officials from the five key federal agencies and national  experts representing 20 organizations to identify what they viewed as the  most promising and innovative local initiatives in which local workforce  boards collaborated effectively with employers and other partners to  achieve positive results. In each  profile, we provide an overview of the initiative and describe some of the  factors that facilitated collaboration.
Why GAO Did This Study

As the United States continues to face high unemployment in the wake of the recent recession, federally funded workforce programs can play an important role in bridging gaps between the skills present in the workforce and the skills needed for available jobs. The Workforce Investment Act of 1998 (WIA) sought to strengthen the connection between workforce programs and employers, but GAO's prior work has found that collaboration remains a challenge. With WIA currently awaiting reauthorization, GAO reviewed (1) factors that facilitated innovative collaborations among workforce boards, employers, and others; (2) major challenges to collaboration; and (3) actions the Department of Labor (Labor) has taken to support local collaborative efforts. GAO examined 14 local initiatives identified by experts as among the most promising or innovative efforts in which local workforce boards collaborated effectively with employers and other partners to achieve positive results. GAO interviewed representatives of the 14 initiatives and officials from five federal agencies. GAO also reviewed reports on the initiatives and relevant federal laws, regulations, and other documents.

What GAO Found

Workforce board officials and their partners in the 14 initiatives cited a range of factors that facilitated building innovative collaborations. Almost all of the collaborations grew out of efforts to address urgent workforce needs of multiple employers in a specific sector, such as health care, manufacturing, or agriculture, rather than focusing on individual employers. Additionally, the partners in these initiatives made extra effort to understand and work with employers so they could tailor services such as jobseeker assessment, screening, and training to address specific employer needs. For example, in Greensboro, North Carolina, board staff provided expedited services for an aircraft company that just moved to the area by designing a web-based recruitment tool and customized assessment process within 48 hours and screening over 2,400 initial applicants. In all the initiatives, partners remained engaged in these collaborative efforts because they continued to produce a wide range of reported results, such as an increased supply of skilled labor, job placements, reduced employer recruitment and turnover costs, and averted layoffs. For example, in Cincinnati, Ohio, employers who participated in the health care initiative realized almost $5,000 in estimated cost savings per worker hired, mainly due to lower turnover and recruitment costs, according to an independent study.
While these boards were successful in their efforts, they cited some challenges to collaboration that they needed to overcome. Some boards were challenged to develop comprehensive strategies to address diverse employer needs with WIA funds. For example, some boards' staff said that while their initiatives sought to meet employer needs for higher-skilled workers through skill upgrades, WIA funds can be used to train current workers only in limited circumstances, and the boards used other funding sources to do so. Staff from most, but not all, boards also said that WIA performance measures do not reflect their efforts to engage employers. Many of these boards used their own measures to assess their services to employers, such as the number of new employers served each year or the hiring rate for jobseekers they refer to employers.
Labor has taken various steps to support local collaborations, such as conducting webinars and issuing guidance on pertinent topics, and contributing to a new $37 million grant program to facilitate innovative regional collaborations. Many of the boards we reviewed cited leveraging resources as a key to facilitating collaboration. However, while Labor has collected information on effective practices for leveraging resources, it has not compiled this information and made it easy to access.

What GAO Recommends

To better support the capacity of the local workforce investment system to collaborate with employers and other partners, Labor should compile information on workforce boards that effectively leverage WIA funds with other funding sources and disseminate this information in a readily accessible manner. Labor agreed with our findings and recommendation.