JUNE 2015
Strategies for Implementing OJT
Simply and Effectively
An On-the-Job Training Brief and Resource Guide
U.S. Department of Labor, Employment and Training Administration
Prepared through a contract with Jobs for the Future
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Guidelines and tips
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community
Ask the community for help and clear up your study doubts
University Rankings
Discover the best universities in your country according to Docsity users
Free resources
Our save-the-student-ebooks!
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
On-the-Job Training (OJT) Resource Guide: Best Practices and Misconceptions, Study Guides, Projects, Research of Business Management and Analysis
An introduction and overview of On-the-Job Training (OJT), debunking common misconceptions and highlighting its benefits for businesses and trainees. It covers topics such as tailoring OJT plans, wage subsidies, cheap labor, business relocations, and performance measures. The guide also suggests ways to effectively promote OJT to businesses and streamline documentation and reporting.
What you will learn
- What are the common misconceptions about On-the-Job Training (OJT)?
- What are the documentation and reporting requirements for OJT?
- How can OJT be effectively promoted to businesses?
- How should OJT be tailored to the specific training needs of the trainee?
- What are the benefits of OJT for businesses and trainees?
Typology: Study Guides, Projects, Research
2021/2022
1 / 25
This page cannot be seen from the preview
Don't miss anything!
Related documents
Partial preview of the text
Download On-the-Job Training (OJT) Resource Guide: Best Practices and Misconceptions and more Study Guides, Projects, Research Business Management and Analysis in PDF only on Docsity!
JUNE 2015
Strategies for Implementing OJT
Simply and Effectively
An On-the-Job Training Brief and Resource Guide
U.S. Department of Labor, Employment and Training Administration Prepared through a contract with Jobs for the Future
OJT Brief and Resource Guide Jobs for the Future works with our partners to design and drive the adoption of education and career pathways leading from college readiness to career advancement for those struggling to succeed in today’s economy. www.jff.org This project has been funded with Federal funds from the U.S. Department of Labor, Employment and Training Administration under Contract Number DOLQ131A22098 DOL- ETA- 14 - U-00011. The contents of this publication do not necessarily reflect the views or policies of the Department of Labor, nor does mention of trade names, commercial products, or organizations imply endorsement of same by the U.S. Government. Acknowledgments Jobs for the Future (JFF) thanks Region VI of the U.S. Department of Labor’s Employment and Training Administration for their support and guidance on this project, with special thanks to Region VI’s Bryan Rogers for his leadership on this effort. JFF expresses appreciation to the principal author of this brief and resource guide, David Altstadt, Principal of David Altstadt Consulting, LLC. Maria Flynn, Thomas Hooper, and Geri Scott of Jobs for the Future provided direction and feedback on this guide. JFF also would like to thank the following workforce development professionals who informed research findings: Dean Jones, Greenville County Workforce Investment Board (South Carolina); Michael Gritton, Kentuckiana Works (Kentucky); Amanda Duncan, The Workforce Alliance of South Central Kansas (Kansas); Debra Crowder, South Central Workforce Investment Board (Virginia); Rick Beasley, CareerSource South Florida (Florida); Jovo Potkonjak, Milwaukee Area Workforce Investment Board (Wisconsin); Clyde McQueen, Full Employment Council (Missouri); Dawn Karber, Spokane Area Workforce Development Council (Washington); Robert Everett, WorkSource Spokane—WorkSource Affiliate (Washington); Brandon Miller, CFL Workers Assistance Committee (Illinois); Pilar Trejo, Chicago Cook Workforce Partnership (Illinois); William Thompson, Westmoreland-Fayette Workforce Investment Board (Pennsylvania); LeAnn Bergman and John Evans, Private Industry Council of Westmoreland/Fayette (Pennsylvania); Sue Thompson and Kristina Payne, Lane Workforce Partnership (Oregon); and June O’Dell and Linda Fitzgerald, Workforce Investment Board of Southeast Missouri (Missouri).
OJT Brief and Resource Guide INTRODUCTION AND OVERVIEW On-the-Job Training (OJT) can be an extremely effective strategy for helping businesses ensure that they have workers with the specific skills and competencies needed to meet their production and service needs. Simultaneously, OJT can assist a range of individuals—from the long-term unemployed to individuals recently dislocated from their jobs in high-skill occupations—secure and retain employment. OJT was an allowable activity in the Workforce Investment Act (WIA) and is also allowable in the recently enacted Workforce Innovation and Opportunity Act (WIOA). However, in many local areas, use of OJT has been very limited. One key factor that has contributed to low utilization of this training strategy is the concern by both businesses and the public workforce system that OJT is complex in both its administration and implementation. To help address this concern, the U.S. Department of Labor’s Employment and Training Administration (ETA) developed this Brief and Resource Guide to provide local Workforce Development Boards (Local WDBs), American Job Centers (AJCs), and affiliated service providers with specific strategies for implementing OJT simply and effectively. This guide includes specific tactics used in local workforce areas around the country to implement OJT, addresses key misconceptions about OJT, highlights the benefits of OJT for businesses, Local WDBs, and clients, and identifies critical aspects of OJT that are strongly aligned with key elements of WIOA. Finally, the appendix includes an array of tools used by Local WDBs to support the simple and effective implementation of OJT. These are strong examples of the kinds of tools that Local WDBs, AJCs, and affiliated service providers in other areas could develop to help support the effective implementation of OJT. Readers should be aware of the following key parameters as they review this report:
- This is a technical assistance resource and not formal guidance. The public workforce system and its partners can use this resource to help support the effective implementation of OJT.
- This resource is designed to supplement the wide range of existing resources that ETA has released on OJT, such as the OJT Toolkit (https://ojttoolkit.workforce3one.org), and does not replace those resources. Readers are encouraged to access those other existing resources as well.
- This document includes a summary of key parameters of the WIOA statute and Notice of Proposed Rule Making (NPRM). Please note that this is not a substitute for reviewing the statute and NPRM, and readers should consult these source documents for information on the rules and regulations related to OJT.
- This document focuses specifically on OJT, which was authorized and funded through WIA formula funds, and which will now be funded and authorized through WIOA. There
OJT Brief and Resource Guide are other Federal and state grants that fund OJT and have provisions similar to WIA and WIOA OJT. Although some of those other Federal and state grants are referenced here when leveraged by local workforce areas, this document focuses on OJT as funded through WIA and WIOA formula funds.
OJT Brief and Resource Guide
- A resource for defraying the extraordinary costs of training and supervising the trainee. OJT funds are disbursed to a business in the form of a wage reimbursement. Reimbursement rates differ by funding source, but generally go up to 50 percent of wages during the designated training period (under DW NEG grants, reimbursement can rise up to 90 percent of wages). New under WIOA, reimbursement may be increased up to 75 percent of wages under certain circumstances (see I.D Top Five Changes under WIOA ).
- Adaptable to a wide range of occupations and skill needs. OJT can support skill building in a whole host of occupations, from entry-level to highly skilled. Regardless of the position, there is almost always some skill that can be acquired or enhanced through OJT.
- An effective strategy for (re)employing a diverse array of WIOA clients. OJT can provide an entry point into a particular industry for a low-skilled adult or older youth lacking prior work experience, as well as a re-entry point for a dislocated worker who needs to close a specific skills gap in order to continue along his/her career path. OJT can support rapid re-employment of individuals affected by mass layoffs and can also help avert layoffs when technological or production enhancements change skill requirements. A recent study found that OJT participants were more likely to be re-employed than WIA clients who did not receive training or who received other forms of occupational training. 1 I.B Common Misperceptions of On-the-Job Training OJT is:
- NOT a “one-size-fits-all” training program: Just as no two people share the same skills, experiences, and career goals, and, generally, no two jobs are exactly alike even within the same occupational area, each On-the-Job Training plan must be unique and tailored to the specific training needs of the trainee and should not mirror the hours and skills of past training plans developed for the same business or for the same occupation.
- NOT a work experience program : On the first day of employment, an OJT trainee should be able to contribute productively at work while engaged in training to acquire or (^1) Park, Jooyoun. 2011 Does Occupational Training by the Trade Adjustment Assistance Program Really Help Reemployment? Success Measured as Matching. Washington, DC: U.S. Department of Labor, Employment and Training Administration.
OJT Brief and Resource Guide enhance his/her skills up to the business’s specifications for the job. OJT is not intended for individuals who are not ready to work and lack employability skills.
- NOT an incentive for agreeing to hire a wholly unqualified, unskilled individual: On the onset of employment, an OJT trainee should possess some amount and level of requisite skills, which will be enhanced/supplemented through training.
- NOT a wage subsidy : Service providers should not execute OJT contracts with businesses that would otherwise not be able to afford to hire the client. A business should have sufficient resources to cover all the payroll expenses of hiring an OJT trainee. Although OJT funds are disbursed to a business as a percentage of the trainee wage rate, the business, Local WDB, AJC Operator, and affiliated service provider must consider OJT as a form of reimbursement for additional expenses incurred in training and supervising the trainee (e.g., reduced productivity of supervisors during training or costs incurred by training staff).
- NOT a source of cheap labor: In agreeing to hire an OJT trainee, a business must agree to compensate the OJT trainee at the same wage rate (including periodic increases) and benefits (including health insurance and worker’s compensation) that it provides to other employees or trainees in similar occupations who have similar training, experience, and skills. A trainee must be paid an hourly wage (not a stipend) that equals or exceeds minimum wage.
- NOT a source of temporary labor: A business should demonstrate a commitment to retaining a trainee who successfully completes the OJT program and provide him/her with an appropriate/comparable wage and benefit levels. Local areas should not execute future OJT contracts with a business with a history of failing to retain OJT trainees.
- NOT allowed to be used to encourage or support business relocations resulting in layoffs at another U.S. locale: A relocated business must be in operation for at least 120 days before a service provider may offer WIOA funded business services, including customized training, skill training, OJT, or company specific assessment of job applicants. A State may develop a pre-award review protocol for relocating businesses. I.C Summary of Key On-the-Job Training Eligibility Requirements An individual may engage in OJT if he/she:
- Qualifies for and enrolls in WIOA services , including Adult, Dislocated Worker, or Youth services. A business may make a “reverse referral” in which it refers a job applicant to an AJC or affiliated service provider to determine eligibility for WIOA training services. A youth, up to the age of 24, may qualify for OJT if it is incorporated into an individual
OJT Brief and Resource Guide
- Has laid-off employees in the United States and is in the process of relocating to a new locale. A business may qualify for OJT assistance after a 120-day waiting period following relocation.
- Will displace/partially displace incumbent workers with OJT trainees. I.D Top Five Changes under WIOA The passage of WIOA provides a good opportunity for Local WDBs, AJC operators, and affiliated service providers to reconsider their use of On-the-Job Training. Some local areas have been hesitant to use OJT for a variety of reasons. However, a number of aspects of WIOA may now make OJT a more attractive training strategy: 1. No prescribed sequence of service for qualifying for or engaging in OJT: WIOA bundles core and intensive services into the new category of career services and eliminates the WIA requirement that clients receive at least one intensive service (now known as individualized career services) prior to enrolling in OJT or other forms of training. Moreover, under WIOA, service providers may approve training (including OJT) for an individual on the basis that he/she would otherwise be unlikely to achieve self-sufficiency—rather than having to demonstrate his/her inability to achieve self- sufficiency (e.g., through an exhaustive job search and after the receipt of career counseling). Furthermore, under WIOA, local areas must prioritize WIOA Adult-funded career and training services to public assistance recipients as well as other low-income individuals and individuals with deficiencies with basic skills. 2. WIOA authorizes a Governor or Local WDB to increase reimbursement up to 75 percent, upon consideration of the following circumstances—including the characteristics of the participant, the size of the business, the quality of business-provided training and advancement opportunities—or other factors, such as the number of employees participating in OJT, relation of the training to the competitiveness of a participant, and wage/benefit levels during and upon completion of training. Based on the criteria, above, enhanced reimbursement rates could be ideal for hard-to-serve clients, small businesses, and career pathway programs. 3. WIOA’s new performance measures align well with the outcomes of effective OJT contracts. WIOA establishes a new set of common measures for Title I, II, III, and IV programs: Retention of unsubsidized employment after second and fourth quarters, median earnings of participants in unsubsidized employment after the second quarter, effectiveness in serving businesses, and attainment of recognized secondary or postsecondary credential if, and only if, the participant enters or retains employment or
OJT Brief and Resource Guide continues education or training leading to a recognized credential within one year of exit. OJT is particularly well-positioned to help local areas satisfy the new measures on job retention and effective service to businesses, given its focus on placing individuals into employment, addressing the skilled workforce needs of businesses, and encouraging the retention of successful trainees. Moreover, utilizing OJT to re-employ experienced, skilled dislocated workers in high-skilled, high-wage jobs can help boost overall average earnings for local workforce areas. Finally, OJT could aid successful exits of participants engaged in secondary or postsecondary programs, if service providers couple an Individual Training Account (ITA) with an OJT to provide job placements to credential completers. Doing so would help individuals augment classroom-based learning with practical workplace skills and experiences.
4. WIOA encourages training that focuses on high-demand jobs and industries. Local WDBs and AJC Operators can target On-the-Job Training placements to high-demand fields. Furthermore, WIOA requires Local WDBs to develop career pathways to postsecondary credentials and employment in in-demand occupations. Placing those who successfully complete ITA-funded training into an OJT can help support client progression along these pathways. 5. WIOA promotes linkage to apprenticeship: WIOA clarifies that an OJT contract may be made with a Registered Apprenticeship sponsor to support the OJT portion of apprenticeship training for WIOA-eligible apprentices. WIOA also clarifies that local areas may use ITA funds to support the related technical instruction component of Registered Apprenticeships. Depending on the length of the Registered Apprenticeship and state/local OJT policies, these funds may cover some or all of apprenticeship training. Local areas interested in linking On-the-Job Training with apprenticeship should consider how the length of these programs align with performance measures, and take steps to help fully account for their progress. For example, Registered Apprenticeship programs often last longer than an OJT, and in those cases Local WDBs should work with the Registered Apprenticeship sponsor to explore opportunities to build interim apprenticeship credentials that align with the conclusion of the OJT training period and/or use of ITA funds for related technical instruction.
OJT Brief and Resource Guide
- Improve chances of employment after school completion. Clients who complete a classroom training program may still have difficulty obtaining a job in their desired field. On-the-Job Training can encourage a business to take a chance on a new graduate and help round out their academic learning through practical work-based training on job- related competencies. Some local areas pair ITAs and OJT to help ensure client success in their career field.
- Provide a game plan for resolving skill deficiencies. Rather than shy away or attempt to over-sell their skills during a job interview, clients can feel empowered to make the case of the value (such as employability skills and experiences) they would bring to the job, provide an honest assessment of their weaknesses, and speak to how OJT can resolve their skill gaps.
- Start a job with a business that has demonstrated a commitment to training.
- Obtain business-provided training that brings out-of-date skills up to current standards.
- Earn higher wages and receive better benefits than they may otherwise earn or receive, if they had narrowed job search only to positions in which they met all the skill requirements specified in job descriptions.
- Receive training to improve job performance and job security.
- Avert layoff and preserve long-term employability when skills mismatches emerge due to new technologies, changing job responsibilities, etc. II.C Benefits to Local WDBs, AJCs, and Affiliated Service Providers
- Provides resources to build or expand business services. Increasing the utilization of On-the-Job Training can help Local WDBs and AJCs to create a local workforce development system that serves businesses as well as jobseekers—a key priority under WIOA. As a crossover skills development/placement activity, OJT can be a great tool for helping expand business services and sector strategies.
- Build/enhance reputation with business community as a first source for recruitment, screening, and training of talent and increase (or retain) the number of businesses utilizing business services.
- Provide a tangible benefit to small businesses, which often lack human resources procedures and personnel to develop appropriate job descriptions, screen candidates, and onboard and train new hires.
- Address rapid re-employment needs of dislocated workers who are skilled and experienced and do not wish to return to school for retraining.
OJT Brief and Resource Guide
- Increase likelihood that training will produce successful outcomes and bolster local area performance: The On-the-Job Training model of immediate job placement can be an extremely effective approach to training because OJT aligns well with the WIOA performance measures on job retention, earnings, and effective service to businesses. Moreover, OJT also can support successful exits for individuals enrolled in secondary and postsecondary credential programs by providing an employment placement to credential completers. Linking OJT with Registered Apprenticeship offers one approach for working and attending school/training concurrently.
- Satisfy employment and training needs of a range of clients, including the hard-to- serve. The OJT model is uniquely positioned to provide an immediate job and job- specific training for a wide range of individuals, such as dislocated workers, unemployment insurance recipients, low-skilled adults, and older youth. AJCs recognized by the business community for building a strong talent pipeline through OJT should find less resistance when seeking OJT placements for hard-to-serve clients.
- Enable clients to make a strong interview pitch and land “stretch” jobs. When jobseekers apply for jobs in which they lack some qualifications, access to OJT funds can help them promote their employment value while proposing a game plan for addressing skill gaps. Clients who successfully obtain higher-wage jobs through OJT will help to raise the local area’s “average wage at placement” performance outcome.
- Connect to Registered Apprenticeship system for clients. As clearly stated in WIOA, OJT and ITA funds can be used to support Registered Apprenticeship, which should help open the door to Registered Apprenticeships for more AJC clients.
- Attract and diversify funding sources. Local workforce areas that build solid business relationships and report strong client outcomes through OJT should be well-positioned to compete for other Federal and state OJT grants.
OJT Brief and Resource Guide businesses have greater needs for recruiting and training assistance. AJCs can help them write job descriptions and also recruit and screen jobseekers to fill those positions. AJCs can then offer On-the-Job Training for WIOA-eligible job applicants with skill gaps. Lastly, OJT is a key resource for small businesses to defray the cost of training new hires.
- Consider establishing a policy that mandates that an employer utilize “first-tier” business services before undertaking OJT. First-tier business services may include posting job openings on a state job bank or conducting hiring events or candidate screening at the AJC. Sequencing business services is the best way to ensure businesses consider hiring clients who do not (or should not) need an OJT to qualify for a specified job opening.
- Actively promote OJT as a second-tier service to businesses already utilizing other business services. The benefit of this approach is the AJC has already proven its value to and conducted some preliminary vetting of the business. Moreover, the business is already accustomed to the paperwork requirements of public workforce system. Business perception that OJT is bureaucratic government program Simplify and streamline documentation and reporting for businesses:
- Take on as much of the paperwork as feasible —including the formulation of job descriptions as well as training plans that meet the specifications of businesses and skill/training requirements of individual participants.
- Use a short checklist to review OJT legal obligations with businesses.
- Reduce the length of the OJT contract to 2 - 5 pages, putting required assurances in fine print.
- Utilize a master training agreement and seek signatures annually, so Local WDBs, AJCs, and service providers can act quickly when new OJT opportunities arise. Then, all that is needed is to append new training plans to the existing training agreement, rather than initiating a new one for each new trainee. When approving a new agreement for the next program year, simply inquire if anything needs to be updated, rather than
OJT Brief and Resource Guide reviewing all contractual information all over again. A simple renewal process will increase the likelihood that businesses will remain active OJT “vendors” even when they do not foresee immediate OJT needs.
- Whenever possible, do not repeat the same legal assurances or requirements in multiple forms, thereby reducing length and duplication of paperwork for businesses.
- Reduce frequency of wage reimbursements , which require documentation of payroll expenses and training progress at each interval.
Challenges Potential Solutions
Business perception that OJT is a government effort to incentivize hiring under-qualified jobseekers
- Enhance job readiness and baseline skills of clients (e.g., through boot camps, initial classroom training) enrolled in WIOA services or partner programs, thereby mitigating widespread perception (or reality) of hard-to-serve clients.
- Feature the availability of well-educated and experienced dislocated workers who just need a “skills brush-up.”
- Be intentional in promoting OJT to a wide range of clients with differing skills and work experiences.
- Be transparent regarding the skill gaps of clients referred to businesses for consideration of OJT placements.
- Be clear that businesses have the final say on whom they hire for OJT placements.
- Utilize an enhanced reimbursement rate for clients who need increased training to retain full-time employment.
- Do not employ a “retention-based” reimbursement policy, as it does not make practical business sense for a business to retain a poor-performing employee they would otherwise terminate.
- Share return-on-investment case studies of a wide range of successful OJT trainees with businesses, from the long-term
OJT Brief and Resource Guide Amount and efficiency of time and effort involved in recruiting and assessing clients
- Train case managers, career counselors, business services representatives, and economic development partners on the purpose and value of OJT and ensure they share information on OJT with clients.
- Ensure that case managers give OJT proper consideration in the formation of individual employment plans.
- Discuss OJT when providing Rapid Response services to at-risk firms.
- Develop protocols for marketing OJT opportunities to clients when they arise (e.g., distribution list for email notification, personal calls made by case managers).
- Ensure staff capacity is available to enroll and assess eligibility of reverse referrals.
- Pre-screen or pre-qualify clients for OJT opportunities , utilizing assessments such as WorkKeys, Sage, TORQ, and Prove It! to demonstrate general job readiness and ability to learn specified skills.
- Maintain an updated list of clients eligible for training and interested/suitable for OJT placements in given industries and occupations. Amount of time, effort, and complexity involved in developing OJT training plans
- Employ dedicated staff responsible for developing, executing, and monitoring OJT training plans and contracts. Some Local WDBs have funded these positions with Federal and state grant money. These staff members also can be responsible for cross- training staff undertaking business outreach and client recruitment and assessment.
- Offer to help businesses write job descriptions , to ensure they accurately describe skill needs and align with occupational descriptions, job zones, and Specific Vocational Preparation (SVP) codes found on ONET OnLine—making it that much quicker and easier to assess the suitability of specific jobseekers and develop appropriate training plans ( _see box, “Using ONet to support On- the-Job Training”_ ).
- Maintain an archive of similar job descriptions that have been
OJT Brief and Resource Guide cross-referenced to O*NET Online, to provide a starting point when deciphering required skills for new jobs.
- Draw on prior assessments and business observations from applicant interviews to identify gaps in key job-related competencies—which forms the basis of the OJT training plan.
- Utilize ONET SVP codes* to estimate an appropriate number of overall training hours and training budget. Work with the business to parse out training hours and budget by core competency.
- Minimize the length and detail of the training plan to the essential elements and competencies to be attained. There is no need for detailed descriptions of the pedagogy that businesses/trainers will use to instruct trainees on key competencies. Focus on the skills and competencies to be attained rather than the manner in which skills will be developed.
- Conduct a site visit during the training period to gather feedback from the trainee and business on skills development progression. Modify the plan if needed to decrease or increase training hours for a particular competency, within the overall training budget. Note that OJT training funds may not cover all hours needed to complete training for a particular competency. Limited training resources to prioritize and invest in OJT
- Set a goal or mandate for a certain percentage of available training funds to be used for OJT (as opposed to ITAs)
- Actively pursue other state and Federal grants to help pay for OJT (e.g., NEG) and staff capacity to administer OJT. These additional resources can help supplement the impact of a local workforce area’s OJT funded through formula funds.
- If necessary, cap the amount of time/funds for individual OJT contracts to increase the number of clients and businesses impacted by OJT funds.
- In capping OJT, utilize it as a partial reimbursement for training rather than the equivalent of 50% of wages during the entire training period.