WPI May Convening Meeting Materials

1 WPI Virtual Cross-Site Convening Series Acquiring Internal Buy-In: Helping Companies Define their own ROI for Innovative Programs or Credentials May 26, 2021 Michael Chiappetta Director, North America and Chicago Development Accenture WPI Site: Chicago Email: [email protected] Ernie DuPont Senior Director Workforce Initiatives CVS Health Email: [email protected] Christina Curnow Managing Director, Human Capital Solutions American Institutes for Research Email: [email protected] Speakers 2 Findings and Considerations for Measuring ROI 3 ▪Commonly used formula: ROI = (benefit of training -cost of training) / (cost of training) Influenced by Practical Considerations and Organizational Values and Context Investment/Cost Examples •Cash investments e.g., Tuition, testing/certification fees (Lumina et al., 2016) •Employee time for participation (e.g., time away from productivity, additional resources needed o backfill) (Abner et al., 2020) •Program development and implementation costs (e.g., L&D employee salaries and benefits, technology costs, facility costs) (Bukhari et al., 2017; Harper-Anderson, 2019) •Program administration costs (e.g., personnel, infrastructure) (Devarakonda, 2019) Return/Benefit Examples •Promotions (Lumina et al., 2016) •Pay Increases (Androitis, 2017; Illanes et al., 2018) •Turnover (ETF@JFFLab, n.d.) •Retention (Illanes et al., 2018; Payne, 2020) •Engagement/Job Satisfaction (Bukhari et al., 2017; Schueler et al., 2017) •Productivity increases (Abner et al., 2020) •Lateral Transfers (Lumina et al., 2016) •Absenteeism (Schueler et al., 2017) •# of badges or certificates (ETF@JFFLab, n.d.) •Improved DE&I (McLennon et al., 2019) Challenges •Quantifying/monetizing some variables •Tracking people and associated metrics •Intervening variables •Needs to be planned in advance References Abner, G.., Valdez, B., & Perry, J. (2020). Elevating the case for leadership development programs: Return on investment evaluations. Public Administration Review, 81(2), 291-294. https://doi.org/10.1111/puar.13284 Androitis, N. (2017, November 20). Returning on training investment and how to measure it. eLearning Industry. https://elearningindustry.com/how-measure-return-on-training-investment Bukhari, H., Andreatta, P., Goldez, B., & Rabelo, L. (2017). A framework for determining the return on investment of simulation-based training in health care. The Journal of Health Care Organization, Provision, and Financing, 54(1). https://doi.org/10.1177%2F0046958016687176 Devarakonda, S. (2019). Calculating the economic viability of corporate trainings (traditional & eLearning) using Benefit-Cost Ratio (BCR) and Return on Investment (ROI). International Journal of Advanced Corporate Learning, 12(1). https://doi.org/10.3991/ijac.v12i1.9735 ETF@JFF Labs impact report: Building a diverse portfolio of technologies to close the employment opportunity gap. Retrieved February 21, 2020from https://jfforg-prod-prime.s3.amazonaws.com/media/documents/ETFJFFLabs_Impact-Report-Final.pdf Harper-Anderson, E. (2019). What is the return on investment for public workforce programs? An analysis of WIA and TAA in Virginia. State and Local Government Review, 50(4), 244-258. https://doi.org/10.1177%2F0160323X18823878 Hernandez-Lepe & Marotta (2021, February 1). Three ways to improve inclusion and equity in tech through apprenticeship. Urban Institute. https://www.urban.org/urban-wire/three-ways-improve-inclusion-and-equity-tech-through-apprenticeship Illanes, P., Lund, S., Mourshed, M., Rutherford, S., & Tyreman, M. (2018). Retraining and reskilling workers in the age of automation. McKinsey Global Institute. https://www.mckinsey.com/featured-insights/future-of-work/retraining-and-reskilling-workers-in-the-age- of-automation Lumina Foundation, Cigna, & Accenture. (2016, April 22). Talent investments pay off (Cigna). https://www.luminafoundation.org/resource/talent-investments-pay-off/ McLennon, S., Rogers, T., & Altheria, D. (2019). Predictors of hospital nurses’ cultural competence: The value of diversity training. The Journal of Continuing Education in Nursing, 50(10), 469-474. https://doi.org/10.3928/00220124-20190917-09 Payne, J. (2020, July). The Next-Gen IMT Apprenticeship: A return on investment study. Center for Apprenticeship and Work-Based Learning. https://files.eric.ed.gov/fulltext/ED607764.pdf Ross, M., Kazis, R., Bateman, N., & Stateler, L. (2020, November 20). Work-based learning can advance equity and opportunity for America’s young people. Brookings Institute. https://www.brookings.edu/research/work-based-learning-can-advance-equity-and- opportunity-for-americas-young-people/ Schueler, J., Stanwick, J., & Loveder, P. (2017). A framework to better measure the return on investment from TVET. National Centre for Vocational Education Research. https://files.eric.ed.gov/fulltext/ED575988.pdf 4 Chicago Apprentice Network 5 The Story Since 2017, the Chicago Apprentice Network has grown from three founding companies –Accenture, Aon and Zurich North America –to more than 50 companies across multiple industries. Expanding Coast to Coast With Aon’s announcement in November 2020 (link) that they will be expanding their Apprentice program into 7 new markets (DC, Northern California, Philadelphia, Minneapolis, Houston, Detroit and NY), 2021 will bring Apprentice Networks into these markets with the hope of creating more opportunities to more people in every community. Want to learn more? https://chicagoapprenticenetwork.org/#/ Additional Resources 6 ▪Harvard Business School study led by Prof. Joseph Fuller on “Dismissed by Degrees”: https://www.hbs.edu/managing-the-future-of-work/Documents/dismissed-by-degrees.pdf ▪American Institutes for Research report on “The Relative Returns to Credit-and Non-Credit-Bearing Credentials”: https://www.air.org/resource/relative-returns-credit-and-non-credit-bearing-credentials ▪Workforce Partnership Initiative website:https://www.businessroundtable.org/wpi ▪Workforce Partnership Initiative case studies: https://www.bhef.com/publications/workforce- partnership-initiative-case-studies For more information on the WPI cross-site convening series, please visit: https://www.bhef.com/wpi-virtual-cross-site-convening-series Contact Information 7 Jennifer Thornton Vice President of Programs Business-Higher Education Forum Email: [email protected] Dane Linn Vice President Business Roundtable Email: [email protected]