WEST PHILADELPHIA SKILLS INITIATIVE A MODEL FOR URBAN WORKFORCE DEVELOPMENT KATZ & HUMES 2 TABLE OF CONTENTS
4 About the Authors/Organizations
8 Executive Summary
16 Introduction
18 The WPSI Model: Key Enabling Features
20 The WPSI Model: Historical Background
26 The WPSI Model: How It Works
38 Impacts of WPSI Model on West Philadelphians
42 Three Emblematic Programs
52 Adapting the WPSI Model
56 Conclusion
58 Appendix A: Bibliography
60 Appendix B: Timeline
3 Drexel University Nowak Metro Finance Lab
The Nowak Metro Finance Lab was formed by Drexel University in July 2018. It is focused on helping cities find new ways to “finance the inclusive city” by making sustained investments in innovation, infrastructure, affordable housing, quality places, and the schooling and skilling of children and young adults. It is situated within the Drexel’s Lindy Institute of Urban Innovation.
Centre for Public Impact
The Centre for Public Impact is a not-for-profit founded by Boston Consulting Group. Believing that governments can and want to do better for people, we work side-by-side with governments—and all those who help them—to reimagine government, and turn ideas into action, to bring about better outcomes for everyone. We champion public servants and other changemakers who are leading this charge and develop the tools and resources they need, like our Public Impact Fundamentals, so we can build the future of government together.
University City District
University City District is a partnership of world-renowned anchor institutions, small businesses and residents that creates opportunity, and improves economic vitality and quality of life in the University City area of West Philadelphia. Our primary mission is community revitalization. We work within a place-based, data-driven framework to invest in world-class public spaces, address crime and public safety, bring life to commercial corridors, connect low-income residents to careers, and promote job growth and innovation.
Accelerator for America
Accelerator for America is a non-profit organization created by Los Angeles Mayor Eric Garcetti in November 2017. It seeks to provide strategic support to the best local initiatives to strengthen people’s economic security, specifically those initiatives that connect people with existing jobs, create new opportunities and foster infrastructure development.
© Drexel University 2019
4 About the Authors
Bruce Katz is the inaugural director of the Nowak Metro Finance Lab at Drexel University and the co-author (with Jeremy Nowak) of The New Localism: How Cities Can Thrive in the Age of Populism. Bruce also leads New Localism Advisors, whose mission is to help cities design, finance and deliver transformative initiatives that promote inclusive and sustainable growth, in addition to serving as a Partner in the Accelerator for America. In all these roles, he regularly advises global, national, state, regional and municipal leaders on public reforms and private innovations that advance the well-being of metropolitan areas and their countries.
For more information please visit www.drexel.edu/nowak-lab.
Megan Humes is a Senior Associate supporting the economic mobility program at the Centre for Public Impact. Her work focuses on helping all levels of the U.S. government understand and reimagine the public initiatives that enable, and inhibit, residents’ economic opportunity and usher in an era of inclusive growth. Previously, Megan helped a variety of federal government agencies improve the efficiency of their operations and strategic sourcing functions through rigorous data analysis with Censeo Consulting Group. Megan received a Bachelor of Science in Economics from the Wharton School at the University of Pennsylvania, concentrating in Business Economics & Public Policy and Social Impact & Responsibility.
For more information visit https://www.centreforpublicimpact.org/
Acknowledgements
Matt Bergheiser, Sarah Steltz, Caitlin Garozzo, Josh Park, Patrick Bayer, Shelia Ireland, Craig Carnaroli, John Fry, Jamie Gauthier, Madeline Bell, Fred Dedrick, Nick Frontino, Kim Delaney, Dan Amspacher, Jacob Aufschauer, Alan Garry, Jim Carter, John Grady, Chief Crystal Yates, Javon Davis, Brian English, Dan Vogel, Kevval Hanna, Ron Ivey, Ryan Goss, Elysa Neumann, Mary Tredway, Ryan Debold, Arty Altanzaya, Sarajane Bradley, Michael Greenle, and Emily Storz.
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This paper, in a series of Nowak Metro Finance Lab City Cases, aims to build on the existing research evaluating innovative local models for solving problems. Cities need a new generation of community institutions that can pursue development, enable creative financing, grow local entrepreneurs, unlock public assets, and upgrade the skills of local residents. The goal of this series is to distill enabling features, financial mechanisms, and governance structures, to encourage large-scale adoption and adaptation.
EXECUTIVE SUMMARY WPSI–A TIMELY, REPLICABLE hiring functions that struggle to reach new potential labor pools MODEL TO SOLVE URBAN and focus training resources on mid- to upper-level workers. As LABOR MARKET CHALLENGES a result, many low-wage workers The rise of cities is the defining are unable to find ways to train for dynamic of the world today. higher-paying, available jobs in Cities are natural magnets for their areas, furthering the cycle of the creative and highly-educated poverty and disenfranchisement. talent required by the growing digital economy. As an intermediary able to navigate the worlds of jobseekers This dynamic has created a complex and employers alike, the West challenge: urban economic growth Philadelphia Skills Initiative is uneven, concentrated in very few (WPSI) delivers a targeted neighborhoods with highly skilled program at a cost similar to the talent, often displacing less skilled public workforce system, around workers from neighborhoods that $4,500 per placement, with vastly have been redeveloped as a result better results. For example, WPSI of new investment. In fact, this connected 97% of graduates to type of economic inequality within employment in fiscal year 2019, cities has worsened since the while Philly’s public system placed recession.1 For example, in Atlanta 68% of completers in fiscal year and D.C., the top 5% of households 2015, the last year in which data now earn incomes 18 times greater was published.3 WPSI graduates than the bottom 20%.2 also earned an average of $1,500 a year more than their public system The mayors and civic leaders counterparts. who are seeking to address this challenge and create pathways WPSI provides a replicable model to good, stable jobs for all their for the collective action needed residents currently have limited to solve these urban labor market ability to test and develop challenges across the nation. effective workforce development models due to strict bureaucratic WHY WAS WPSI FORMED? requirements, such as a lengthy reporting process and prescribed In 1997, West Philly hit a crisis services mandated from upper point. Years of increasing poverty, levels. Rigid public systems are blight, and crime culminated in not designed for the new, rapidly the murder of a University of changing economy, and many Pennsylvania (Penn) grad student postsecondary education programs just off campus. To reduce crime are inaccessible to those that need and improve economic vitality and them most. At the same time, large quality of life in West Philly, the employer organizations have legacy leaders of local anchor institutions
9 and businesses created the development, and promoting As a critical intermediary, WPSI University City District (UCD), a University City to residents, reimagined the status quo of ‘one- nonprofit economic development tourists, and businesses alike. size-fits-all’ programs that were organization modeled like a not connected to specific or quality Business Improvement District However, in 2009, UCD and jobs and did not meet the needs (BID). UCD’s first mission was to its board determined that their of employers. Instead, it trains make the neighborhood “clean and successful economic development unemployed residents for in- safe” and focused on removing and placemaking initiatives were demand positions with the anchor trash and supporting public safety not addressing two big problems: employers that represent over half ambassadors, quickly improving too many unfilled or high of University City’s 80,000 jobs.4 the neighborhood’s look and turnover jobs at University City’s atmosphere. Programming soon largest employers, and too many expanded to creating public unemployed West Philadelphians. HOW DOES WSPI WORK? spaces, encouraging economic To fill this gap between employers WPSI follows a thorough, and residents, UCD decided to pilot established process high quality a workforce development initiative graduates for a variety of UCD is instrumental to that would enable all members of industries. economic development, the community to benefit equitably “ from economic growth, which led Engage the employer to creative placemaking, to the creation of WPSI in 2011 understand their unique needs and with WPSI, The WPSI model was designed WPSI works closely with workforce development. to solve three systemic problems employers to identify which Matt [Bergheiser] saw that plague existing workforce positions routinely experience development initiatives: retention and performance an opportunity to develop problems and would benefit from WPSI and leverage the Jobseekers rarely fully the WPSI model. By analyzing understood or utilized the personnel data and interviewing relationships with all of tools available to them frontline workers, WPSI staff the major employers for reveal the root causes of hiring and Traditional program graduates turnover problems, and identify the good of the community. lacked training in “soft skills” the skills necessary to excel in the like conflict management position. The employer chooses Jamie Gauthier, the size and graduation date Employers struggled to adapt of the cohort, and WPSI works Councilperson-Elect, “ their hiring and retention backwards to create a program Philadelphia City Council, processes for diverse that meets those criteria. candidate pools in a shifting 3rd District talent landscape
8 Number of Jobs in University City at WPSI partner Anchor Employers111 49,041 Total Jobs 7% [3,437] University of Pennsylvania 38% 23% [18,321] [11,435] Penn Medicine Drexel University Children’s Hospital of Philadelphia 32% [15,848]
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Design a bespoke program the employer or a third-party cohorts only accept applicants provider) and determine if federal from the 7 zip codes in West Philly, WPSI staff take time to design workforce funding can reimburse which contain 245,709 residents, a bespoke curriculum with the provider. 16,3665 of whom are unemployed. the employer. This includes WPSI also places citizens completing site visits to understand Recruit and select participants returning from incarceration in the day-to-day demands of the job that are a strong fit for the gainful employment at UCD’s and interviewing stakeholders, job profile landscaping company, Green City such as people currently in the Works. The program is promoted position. Employers noted that WPSI opens a program application to the community online and no other workforce partner had and co-hosts an information through the WPSI alumni worked as hard to understand session about the position with the network. By personally reviewing their needs. The employer employer. Applicants must have a each application, WPSI staff partners also identify who will high school diploma or GED, be identify the best-suited candidates teach the technical training (e.g., over 18, and be unemployed. Most for each program.
What makes WPSI uni uely successful
They provide staff with the They invest in rigorous, individuali ed They prioriti e fostering resources and freedom to program design and e ecution relationships with local continously improve services residents and employers
1. Staff with workforce development 4. Cohorts are only created when local 7. Acting as an intermediary experience understand the system employers are trying to fill vacancies connects a robust network and are committed to improving it of partners to new resources
2. Flexible funding encourages 5. Financial stipends, individual coaching, 8. Residents trust WPSI to act program innovation and attracts and high performance standards as an ambassador between them top talent and partnerships focus participants on personal and and large local institutions, building professional development social capital and credibility
3. Agile and entrepreneurial 6. Customized programs are built for 9. As an effective intermediary, governance lets the team take each employer, familiarizing candidates WPSI connects a robust network of risks and quickly iterate to solve with their culture and nuances stakeolders to untapped resources problems
11 West Philadelphia Skills Initiative Participants
Deliver the program Connect participants with excellence to employment The Skills Initiative has changed lives. The Every program begins by cultivating After completing mock interviews, “ the “foundational skills” needed participants are guaranteed an people who have gone to succeed in any professional interview with the employer through the program have job (e.g., workplace norms, self- partner. While employers have regulation, critical thinking, self- no obligation to hire graduates, a pathway to greater confidence), before moving into they have hired from all cohorts confidence in their technical training specific to the thus far; at the same time position. Experienced facilitators competitors are also able to make abilities to work and take and executive coaches lead group offers to candidates. As a result, care of their families. classes and individual sessions to an astounding 95% of graduates develop participants’ foundational are connected to employment. skills. WPSI collaborates with After placement, WPSI staff Craig Carnaroli, employers or a third-party hosts a formal debrief with the “ provider to teach technical skills, employer to determine how the Executive Vice President, sometimes in on-the-job training programming could be improved University of Pennsylvania that allows participants to earn for the next cohort, further wages to complement their building trust and understanding program stipend. of employer needs.
12 13 Provide post-program support. WPSI model is not immediately The West Philadelphia scalable to move large groups of WPSI offers continued personal people into good work. Instead, Skills Initiative has coaching and assistance, it creates long-lasting, positive “ changed my life. When I increasing new employees’ economic impact for a precisely chances of retention and success targeted group of residents. came here, I knew I had in their new position and helping the skills to land a job, those that did not receive an offer but working closely with find a job that utilizes their skills. WHAT HAS BEEN WSPI’S IMPACT? WPSI hosts multiple alumni In the last six years, WPSI has the staff, they brought out events annually to reconnect increased labor participation from my potential to build a graduates and expand their the local community, reduced personal networks. turnover costs for local employers, future career and to pull and increased disposable income out my best self. HOW IS THE WPSI and tax revenue. WPSI has placed nearly 5306 West Philadelphians MODEL DIFFERENT FROM into either full-time positions Tyler Wood, Landscape “ with benefits, or positions with TRADITIONAL WORKFORCE a direct promotion path to full- Technician, Brightview DEVELOPMENT? time employment. Importantly, WPSI hires were 36% more likely WPSI has linked employers than traditional hires to remain in Many traditional workforce to an underutilized labor pool the posit