Outcomes-Driven Funding

& the Future of Employment Data

Sharing the status and direction of C4EO & SkillsEngine.

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INTRODUCTION

Michael Bettersworth

michael@skillsengine.com

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Vice Chancellor & Chief Innovation Officer, �Texas State Technical College�

Executive Director, C4EO

�Founder, SkillsEngine

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TODAY’S TOPICS

INTRODUCTION

• Introductions
• About TSTC, C4EO, & SkillsEngine

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VALUE-ADD FUNDING FORMULA

• Contact Hour Model vs. Value-Add Model
• How We Got There
• Results & Insights

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ENHANCED UI WAGE RECORD LINKAGE

• Basic Mechanics
• Enhanced UI Wage Data
• The Indiana Example

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THE FUTURE OF SKILLS OPTIMIZATION

• The Burden on Employers
• Proposed Solution
• What We’re Doing

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DISCUSSION / Q&A

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About TSTC

Helping Texas meet the high-tech challenges of today’s global economy in partnership with business and industry, government agencies and other educational institutions.

• The technical college system of Texas
• 10 campuses
• 12,000 students
• 115 awards across 48 programs
• Founded 1965

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The nation’s only

higher education institution �funded 100% on student

earnings outcomes

UNIQUE PERSPECTIVE

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Outcomes-Driven Funding

A formula for value-add

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OLD METHOD

Contact Hour Model

NEW METHOD

Value-Add Model

A “headcount” system of cost reimbursement.

An “outcomes-driven” system based on student job placement & salary rates.

[Number of Contact hours] x [Funding rate] = State Funding

[Student Job Earnings*] x [Funding Rate] = State Funding

• Rewards activity, enrollment, and retention
• Aligns with academic traditions
• Encourages prolonged seat-time
• Neutral to quality of outcome

• Rewards outcomes and workforce alignment
• Aligns with student and industry needs
• Encourages efficiency
• Rewards quality of outcome

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VS

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We get paid only if students

get a job. More placements with�higher wages equals more funding.

WHAT IT MEANS

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How We Got There

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2007

2008

2009

2011

2013

2010

2012

80th Session

TSTC asked to do outcomes funding.

81st Session

THECB, Comptroller, TWC conduct feasibility study.

82nd Session

THECB, Comptroller, TWC, TSTC, UT-Austin RMC help develop the Value-Add Model.

83rd Session

THECB & LBB use Value-Add Model.

Independent Study

and preliminary Value-Add model designed.

THECB concludes model is feasible and “has great merit.”

TSTC Board approves

new Value-Add funding model for TSTC.

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The Results

Since implementing the Value-Add funding model, TSTC has delivered increasing value to students and industry partners, including:

• Increased student salaries
• Increased job placements
• Enhanced industry partnerships
• Reduced inefficient curricula
• Increased state funding
• Record graduation counts

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Key Learnings �& Insights

• Incentives are everything�The best interests of students become the best interests �of the college and state.
• Faster to market wins�Flexible entry and shorter duration training programs �generate higher outputs.
• Competency is currency�Quality outcomes require quality programs responsive �to industry needs.
• Better data = better outcomes�Placement and earnings outcomes drive accountability �and transparency.

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UI Wage Record Linkage

The enabling mechanism

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Using UI Wage Records to Drive Insights, Funding, & Innovation

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Intent/Objective

Learning

Assessment

Career

Education

Agency

Workforce Agency

UI Wage Record Linkages

People

Training

Issuers

Employers

FICE

CIP

Award Level

SSN

Employer

NAICS

SSN

$ Wage

Reports

Applications

Funding Model

De-identified/FERPA Compliance

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What are “Enhanced” �UI Wage Records?

Enhancing UI Wage Records include additional employment data points which enable:

• Alignment by optimizing educational pathways with business and industry needs
• Transparency by informing students/parents on returns for their investment
• Accountability by benchmarking the economic returns of training programs

Basic UI Wage Records Linkages

• Job Title - Worker job title
• Hours Worked - Informs hourly rate
• Start Date - Corrects partial quarters
• End Date - Corrects partial quarters
• Zip/County - Actual worker location
• Full time / Part time - Informs salary
• SOC - Dept of Labor Occupation

ENHANCED UI Wage Records

• SSN - Informs record linkage
• FICE - Educational institution
• CIP - Educational program
• Award Level - Cert, AAS, BA, etc.
• $ Wages - Quarterly wages paid
• Employer - Business name
• NAICS - Industry classification
• Gender, ESL status, Eco Disadvantaged, CTE Status...

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States leading UI wage record enhancement

States leveraging UI wage record enhancements gain a major advantage in understanding labor market supply and demand.

• Washington D.C.
• Alaska
• Louisiana
• Nebraska
• Indiana*

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IN ACTION: Indiana Dept. of Workforce Development

The enhancements implemented by Indiana consist of:

• Hire date
• SOC code
• Part-time/full-time status
• Zip code where work services are primarily performed

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• Voluntary participation�New fields available but not required.
• Simplified entry�Data automatically carries over from one quarter to the next.
• Reduced burden�Eliminated an additional reporting form.
• Reduced Fines �Halved the non-filing penalty from $50 to $25.
• Early Results�40% of employers reported SOC codes in Q1 2020.

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WHY ENHANCED UI WAGE RECORDS?

SUPPLY DEMAND OPTIMIZATION

• Longitudinal modeling of labor market movements
• Source of new, emerging occupational titles
• Coverage for rural areas not addressed under the OES

BENEFITS TO PUBLIC

• Better aligned talent pipelines for employers
• More informed choices for consumers (i.e., value)
• Career-relatedness associated with training

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What’s Next?

Optimizing Skills

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JOB PROFILE VALIDATIONS

Getting Input From Industry

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Improving workforce outcomes for state �& federal agencies

Formal recognition by the THECB (GIPWE) for use in Texas by all Community Colleges

Adopted by TEA for update �of entire state CTE standards

US Gov. HR office uses our services (largest employer in the world)

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Growing Skills Library focused on industry validation

3,000+ �Industry experts (SMEs) engaged in skill reviews

1,500+�Organizations engaged in Calibrate reviews

160,000+�Skill validations conducted by industry experts

1,800+�Unique occupational skill profiles created

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Disparate data systems burden employers

Employers face an impossible landscape of data demand from an array of partners, collaborators, suppliers, and supporters.

Problematic results:

• Duplication of efforts/data
• Inaccurate insights & information
• Employers exit rather than adjust

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Certification Standards

Employers

Workforce Boards

Training Providers

Agencies

Partners & Suppliers

Policy Makers

HR & Hiring Managers

ONET

Students

Advisors

Faculty

Job Seekers

Coaches

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Evolving the Strategy for Shared Skills Data

CURRENT REALITY:

• Siloed and locally focused
• Duplicative and redundant
• Inefficient sharing of insights/data

FUTURE VISION:

• Connected and unified
• Streamlined and interoperable
• Efficient sharing of insights/data

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Efficient for industry �is efficient for everyone

Removing the burden on employers through more efficient data sharing enables everyone to benefit from greater insights and ability to respond to labor market demands.

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EMPLOYERS

Skills Library

JOB SEEKERS

AGENCIES & POLICY MAKERS

TRAINING PROVIDERS

CERTIFICATION STANDARDS

WORKFORCE BOARDS

CERTIFICATION STANDARDS

Data & insights

Data & insights

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Build the world’s�wikipedia of skills

A single source of truth to unify the employment ecosystem through our common skills language.

OUR VISION

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NOTE: Formal Name Not Announced

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NOT another way to build resumés, job postings, explore careers, select majors, etc.

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A way to make them ALL smarter and more effective, with skills.

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Questions & Discussion

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Thank You

Michael Bettersworth

michael@skillsengine.com

​

Vice Chancellor & Chief Innovation Officer, �Texas State Technical College�

Executive Director, C4EO

�Founder, SkillsEngine

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APPENDIX

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Background

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How we �got here

Created to improve student employability outcomes �by aligning curriculum �to market needs.

Generated revenue for operations �and profit for TSTC.

• Ensuring value for stakeholders
• Maintaining market relevance
• Listening to customer signals

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Created to address the Chapter 135 Forecasting Mandate (formerly TSTC Forecasting).

Activities: �Research, publications, speeches, testimony, public policy, outreach, data modeling.

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Better employment outcomes for everyone, through skills

We are on a mission to connect educators, employers, agencies, �and individuals through a common skills language.

INNOVATION

Fuel industry & community progress with innovative tech & data solutions.

IMPACT

Drive social impact at scale with a focus on better employment outcomes for all.

VALUE

Create lasting value for TSTC and everyone in the employment ecosystem.

OUR MISSION

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Actively contributing to national discussions on skills and outcomes

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JOB PROFILES

Start With �The End In Mind

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User-facing tools utilizing a common skills language

• Calibrate software platform �for skills-based curriculum alignment
• Skills-based API data services
• Professional Services offerings

Teach what matters

Aligning educators with industry demand

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CALIBRATE Teach What Matters

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Identify the occupations that your curriculum targets and the skills students need to succeed

Collect feedback from Industry SMEs about which skills are most critical

Calibrate Job Profiles

Engage Industry

As skill requirements change and occupations evolve, revise and refine Job Profiles to update and keep curriculum relevant

Leverage Validated Job Profiles to identify skill gaps and align curriculum with Industry needs

Stay Updated

Align Curricula

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JOB PROFILES What is a Job Profile?

A collection of demonstrable, observable, and measurable skills and characteristics.

• Describe the skills required by employers for a specific job or occupation
• Include of four types of skills

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JOB PROFILES What is a Skill?

Job Profiles are living documents that represent the most up-to-date and relevant industry validated skill requirements for a specific occupation.

Comprised of four (4) skill types:

Work Activities�How units of time are organized on the job - what you actually do on the job.

Knowledge Domains�Areas of knowledge that someone needs to know in order to do the job.

Employability Skills�Behaviors, interpersonal skills, character or personality traits, attitudes, social and emotional intelligence – what make you effective at the job.

Tools & Technologies�Categories and specific examples of machines, equipment, software, and technologies used on the job.

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JOB PROFILES Process Overview

Create or Revise�Edit the Job Profile details. Review and rate skills. �Make edits based on Industry feedback.

Validate�Create a Job Profile Validation to collect feedback �and input from your Industry partners.

Publish�Use your validated Job Profiles to identify skill gaps �in curriculum and more.

Deactivate�Archive unused and irrelevant Job Profiles.

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CREATE

/REVISE

VALIDATE

PUBLISH

Create a Validation

Create a �New Version

DEACTIVATE PROFILE

Revise based on feedback

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JOB PROFILES Criticality Ratings

Critical�Highly relevant, required, and central to this job. Candidates are disqualified if these skills are missing or deficient.

Important�Important, complementary, and frequently performed within this job, but not required. Candidates can acquire or become proficient in these skills while on the job.

Beneficial�Supplementary and helpful, but not necessary for the job. Candidates will benefit �from having these skills but are qualified without them.

Irrelevant�Not relevant to this job. Candidates gain no benefit or advantage in this job �from having these skills.

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VALIDATIONS What is a Job Profile Validation?

A collection of Reviewers and their review of a Job Profile

Reviewers can be Industry experts or advisors, faculty and alumni, or anyone else invited to review the Job Profile.

• The revision being reviewed may not always be the most current revision of the Job Profile
• When a Validation is updated Reviewer feedback �is kept and updated with each new revision �of the Job Profile
• Closing a Validation will archive all feedback �and assigned Reviewers.

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Deeply integrated in TSTC core operations �to validate curriculum

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Where to next?

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Utilize a common skills language to unify the employment ecosystem

Build the foundation for a dynamic �and self-sustaining skills-based employment ecosystem.

Employers

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Individuals

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Educators

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Employers

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“Open Skills Platform“

+ Profile Manager

Give everyone the power to benefit from, �and build with, our common skills language.

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Publicly accessible. Community sourced. Expertly curated.

COMING SOON

Note: Not Formal Name

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Putting the world of skills to work�for everyone

Our ambition is to create a platform to enrich the existing employment ecosystem with our common skills language and make the resulting insights available to everyone.

Community sourced skills & insights

integrated with the employment ecosystem

Skill Profiles

CREDENTIALS

RESUMÉS

JOB POSTS

RECRUITING TOOLS

TALENT DEVELOPMENT

�Public Skill Library

CURRICULUM

Builder

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WHO THIS HELPS

EMPLOYERS

• Greater access to qualified talent
• More efficient signaling of workforce needs to training providers
• Enhanced talent acquisition, retention, development, and planning

JOB SEEKERS

• Greater access to relevant career opportunities
• Improved tools for skills communication and job acquisition
• Enhanced data for career development and planning

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EDUCATORS & AGENCIES

• Objective data to align program offerings with employer needs
• Direct regional engagement with employers
• Improved responsiveness to changing industry need

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Use Cases

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Use Case: Coaches Helping Job Seekers

Career coaches through the Markle network will use the Builder tool directly with job seekers to help them achieve their career goals.

Partner: Rework America Alliance (Markle)

EXAMPLE USE CASES

• Enhance a job seeker’s resumé with career-relevant skills
• Provide an understanding of the skills required for a targeted job
• Explore related skills and careers based on an individual’s skills
• Assess the baseline skills of an individual to inform coaching direction

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Use Case: Individuals Seeking a New Job

Job Seekers and students will use the new Skill Builder and Public Library tools to explore and discover career-relevant skills and enhance their job seeking efforts better skills data.

Partner: TSTC, Markle, Texas Workforce Boards

EXAMPLE USE CASES

• Capturing and validating personal skill sets to enrich job seeking activities
• Explore careers/skills related to an individual’s existing skill sets
• Explore skills required for a target career or job progression

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Use Case: Industry Certification Standards

Industry certification and standards groups will use the Builder to author and validate skill profiles to feed microcredentials and share with their national network of partners and SME’s.

Partner: ASE

EXAMPLE USE CASES

• Create and validate skill profiles for specific micro-credentials
• Make skill standards publicly accessible through the Public Skill Library
• Exchange skill profiles with partner organizations and network members

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Use Case: Employment Ecosystem Integrations

Credly and other partners will integrate the Skill Builder capabilities and Public Library data directly into their existing workflows to help their customers enhance the work they’re already doing.

Partners: Credly, Pairin, CourseTune, etc.

EXAMPLE USE CASES

• Embed skill profiles within shareable Credly credentials
• Enrich Badgr pathway mappings �with skill profile data
• Enhance CourseTune workflows with skill profile data

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Future State

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Future State:�Unified skills ecosystem

We will continue to open our core capabilities to the public with the goal of simplifying and improving the experience and value for everyone.

Validate

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Public Skills �Library

Skill�Profiles

Build

Align

API’s

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VALIDATIONS Process Overview

Create or Update a Validation�Automatically created or updated when a Job Profile revision transitions into the "Review" state.

Invite Reviewers using the Shareable Link�Reviewers get notified when an update happens.

Revise the Job Profile�Start a new revision of the Job Profile that includes the feedback from your Reviewers.

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CREATE

/UPDATE

INVITE REVIEWERS

REVISE

Activate the Validation

Send updated Job Profile out for further review

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 Collect  feedback from Reviewers

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