GOING TO SCALE
GOING TO SCALE NATIONAL IMPACT THROUGH PARTNERSHIPS SUMMARY
P
New York’s Robin Hood Foundation calls Per Scholas “indisputable proof that the American Dream still lives.” The Social Impact Exchange recently named us to the S&I100, its national index of the top 100 proven, high-impact nonprofits that are poised to grow.
er Scholas is a growing national nonprofit organization that offers free, high quality technology job training, certification, job referral and career development Moreover, randomized and controlled scientific services to people who are unemployed and research by credible third parties offers underemployed. In New York City and in two powerful evidence that our work transforms new partnership sites in Ohio, we enroll more lives and builds better futures. New research than 500 adults (18+) in our ITabout our outcomes today is being Ready multi-week job training conducted under the auspices of each year. “Indisputable the Corporation for National and The Per Scholas philosophy is Community Service and its Social proof that the simple. We believe that one of Innovation Fund. American Dream the most effective antidotes Now, after years of painstaking to poverty and long-term still lives.” development and planning, Per unemployment is access to Scholas has partnered with the — Robin Hood good jobs, along with the ability Creating IT Futures Foundation to succeed in them. We know Foundation, NYC (CITFF) — the charitable arm of the that many of today’s most IT industry association CompTIA — to promising career opportunities begin bringing its proven approach are in the technology sector. So to several additional cities and regions in the we partner with leading IT employers and learn US: Columbus (launched 10/2012), Cincinnati everything we can about the jobs they need to (launched 9/2013), Greater Washington DC fill. (launching early 2014) and, by 2015, three Then we invest in talented, un- and more locations, still to be selected. The shortlist underemployed adults of all ages who can use includes Atlanta, Dallas, Detroit, Indianapolis, our free training and other services to get those and Newark, NJ. good jobs — and begin creating better lives for The result will be the largest IT sector-based themselves and their families. workforce development program expansion in On average, 85% of Per Scholas students US history, carefully managed to sustain and graduate. 85% of the graduates earn IT enhance program relevance, quality and impact. certifications and nearly 80% gain employment, This document offers an overview of our earning starting wages that are currently planning, rationale and partnership needs. We almost four times their average pre-training welcome interest and participation by nonprofit, income. With the opening of new locations and philanthropic, business and government the expansion of employer partnerships, the organizations. Please contact Per Scholas for latter figure is projected to increase steadily for more information. current year graduates, if not higher.
w w w. p e r s ch o l a s. o r g
1. THE NEW ECONOMY: BRACING FOR IMPACT
the jobs that it took were held by people with a high school education or less.1 Further, it is doubtful that many of these older jobs will return, despite an emphasis now on “reshoring” many thousands of formerly US jobs that bled overseas.
IT’S NOT JUST THE RECESSION
For example, while US manufacturing is Today’s continued high US unemployment is experiencing a resurgence, it is also automating, not solely rooted in the most recent recession. greatly reducing the need for marginally skilled One longer-term trend that has also contributed factory workers to fuel its growth.2 A fresh to widespread joblessness has been the housing boom could still boost construction evolution of the American and many related jobs, but workplace from an enterprise few experts expect one soon. that deals mainly in goods Revitalizing the While new housing starts have and materials into one that grown considerably since their middle class depends is increasingly focused on 2008 lows, they are still much providing information and less than half their 2004in part on helping (skilled) services — often using 05 peaks.3 Non-residential information technology. more Americans construction has fared somewhat better, but is also As a result, the success of master the technical still well below its most recent efforts to preserve and expand and other job skills (2007) highs.4 America’s middle class, and especially to reduce longneeded to succeed in Finally, the discharge of many term joblessness among modern work settings. thousands of US veterans in those able and willing to work, the wake of the Afghanistan depends in part on helping and Iraq conflicts has added more Americans master the fuel to the economic fires. technical and other job skills that qualify them The work skills learned by many US veterans to succeed in these newer work settings. are primarily applicable only in the same heavy industries (such as construction) that suffered This long-term trend, stretching back at least the most in the recession. While resulting to the 1970s, has already had enormous joblessness among Gulf War II era veterans has consequences. It was not so very long ago in improved over the past few years, many former the US that middle-class career pathways were soldiers, especially younger ones, have not plentiful for people whose highest educational worked since.5 achievement was a high school diploma. One could find these pathways in manufacturing, construction and other heavy industries, as well as in lower echelons of the commercial and government sectors.
Finally, it is important to note that the skills required for the new economy are not solely technical or knowledge-oriented, however broadly defined. Just as formidable a barrier to employment for millions of Americans is that they lack so-called soft skills: the general learned traits and behaviors that characterize effective agency in the modern workplace. This
For many, the post-World War II American Dream was built on such jobs: anyone willing to work hard and play by the rules would be rewarded with a living wage, benefits and even a pension.
1 US Census Bureau, Current Population Survey, and US Department of Labor, Bureau of Labor Statistics 2 Tseng, Nin-Hai.. “A U.S. manufacturing comeback won’t rebuild the middle class,” Fortune Magazine, 8/21/2013 3 Federal Reserve Bank of St. Louis 4 US Census Bureau 5 US Census Bureau (CPS) and US DOL (BLS)
By the beginning of the Great Recession, many jobs in these traditional occupations had already disappeared. But the downturn had an especially vicious effect: 4 out of 5 of 2
topic will recur frequently throughout this paper.
COLLEGE NOT THE ONLY (OR BEST) ANSWER
IT’S NOT JUST JOBLESSNESS, EITHER
For the reasons just summarized, large numbers of un- and underemployed Americans have enrolled in college, especially two-year schools. But this is not the only or even the best solution for many.
At the same time as the broader trends just summarized have created an oversupply of workers without post-high school education or It is not just that relatively few underemployed training, numerous other economic, political and jobless individuals can afford the and social factors have eroded compensation investment required to attend an academic (in real terms) for most, to the point that many institution, or that so many have other life of the jobs they do hold no longer pay a living challenges that make such schools poorly wage. One of the most striking suited for them. It is also not illustrations of this phenomenon that most higher education is offered by the Supplemental In a world of institutions do not effectively Nutrition Assistance Program teach the soft skills that also “lousy” and (SNAP), which nearly one in five matter vitally for employment, Americans have now used at some “lovely” jobs, or aggressively support ongoing point in their lives. In 2010, 41% career development for students information of all SNAP participants lived in a after they graduate. household with earnings.6
workers get the lovely ones.
Much more concerning is that the overall returns on investment are so very poor: According to the College Board, just 22% of Americans who enroll in nonprofit two-year colleges (the vast majority of these institutions nationally) ever complete their studies.
In their analysis of comparable long-term dynamics in the UK, economists Maarten Goos and Alan Manning hit upon two striking labels to describe the kinds of jobs that remained in their own country: they were either “lousy” or “lovely.”7 Here in the US, the lousy jobs can be said to involve poorly compensated, unskilled labor with little hope for advancement (home health care aides, fast food workers). These represent by far the greatest share of job opportunities for those with low education and skills.
Further, while the College Board also reports that graduation rates at for-profit two-year colleges are much higher at 60%, this fact alone may not be significant. Not only do large numbers of these graduates also fail to find jobs, but nearly all for-profit colleges (along with many nonprofit ones) have been criticized for freighting their students with debt. Today, for-profit students account for 47% of all loan defaults. Studies have shown low-income students enroll in for-profits at four times the rate of other students.8
Many of the lovely jobs, by contrast, can only be filled by those with some measure of posthigh school education and/or concrete skills attainment. The largest number of these jobs in the US today are for information workers, broadly defined — those qualified, at a minimum, to perform structured tasks involving data as much as any physical good, generally in the context of fast-evolving, IT-dependent workflows and tools. 6 US Food and Drug Administration, Food and Nutrition Service 7 Maarten Goos & Alan Manning, 2003. “Lousy and Lovely Jobs: the Rising Polarization of Work in Britain,” CEP Discussion Papers dp0604, Centre for Economic Performance, LSE 8 Webley, Kayla “Are For Profit Colleges Targeting Low-Income Students?” TIME Magazine, 6/15/2011
THE CERTIFICATION REVOLUTION: IT JOBS IN FOCUS But the main reason to eschew traditional higher education as a sole or even primary strategy for helping underskilled individuals is not its cost nor its outcomes. It is that for large numbers, it is not even necessary. 3
High school diplomas are no longer enough, but that does not mean the only alternative is a two-year or four-year degree. Earning certificates of competency in particular skills areas, generally awarded upon passing comprehensive, industry-recognized exams, has in recent years emerged as a viable — and much more affordable and achievable — career preparation option, especially for those suffering the worst Industry economic dislocation today.
Already, current and projected US IT job openings exceed the number of qualified domestic candidates, and this shortage is widely acknowledged as a serious business problem. In related CompTIA research, 9 in 10 companies reported that their workforces needed better IT skills, and 8 in 10 said the gap affected their bottom lines.
Further, the greatest unmet IT staffing needs are no longer restricted, as often research shows IT jobs — at the very center assumed, to higher-level titles of the information worker like programmer or engineer. that 80% of IT revolution — are perhaps the On the contrary, according employers expect strongest examples. For a large to the ManpowerGroup’s number of the IT jobs available 2013 annual Talent Shortage certifications to today, the only post-high school Survey, the number one role grow in “usefulness that businesses have the credentials needed are one or more professional certifications most difficulty filling today and importance.” from a recognized industry are “technicians” — the very authority. By the same token, category of workers for whom in many enterprise-based IT professional certifications are settings, while experience and education always becoming the most important post-high school matter, employers will hire less educated or credentials. less experienced candidates (especially for In short, meeting our national commitment to entry-level positions) who can demonstrate a putting America back to work, and achieving strong potential to learn, cooperate and grow the longer term goal of revitalizing our (soft skills, again). country’s middle class, are goals likely to Underscoring this point, CompTIA, the IT require both traditional and nontraditional industry association that is also one of strategies. The purpose of this concept paper the largest providers of IT professional is to share Per Scholas’ proven experience certifications globally, studied their perceived with one of the most promising nontraditional value among hiring managers as recently approaches, and the strong opportunity as 2011. It found that IT certifications today — thanks to a new partnership with the were already being accepted as “high-value Creating IT Futures Foundation — to replicate validation” of job candidate skills. Moreover, that achievement nationally. 80% of the respondents in CompTIA’s research said they expected IT certifications to “grow in usefulness and importance.”
A SUBSTANTIVE BUSINESS CHALLENGE The truth is that IT employers in particular cannot afford to be picky. The U.S. Department of Labor projects the creation of at least 750,000 new IT jobs between 2012 and 2018, making it both one of the largest and fastest-growing employment sectors nationally. 4
2. THE IT-READY SOLUTION
skills certification. (This year, Per Scholas in New York will enroll 360 IT-Ready students, as well as scores of others in more specialized and experimental programs).
The Per Scholas/Creating IT Futures Foundation IT-Ready partnership encompasses an integrated range of free IT training, job referral and career development services, employer partnerships and other substantive support for economically displaced individuals who have the drive and aptitude to succeed in IT, but not the skills or experience. By the end of 2015, the partnership will be active in at least five cities outside New York.
Very soon, the Per Scholas training initiative was the largest of its kind in New York City, and began inspiring imitations both locally and nationally. It also caught the attention of CompTIA and its new Creating IT Futures Foundation (CITFF), which began sharing free vouchers for certification exams, instructional materials and many other helpful resources. This early contact was fortuitous. At the time, both organizations were considering how they could accomplish much more. For its part, Per Scholas launched a small, temporary training location in Miami, FL, to gain meaningful experience operating in a different city. CITFF began a planning process to assess how its growing philanthropy budget should be applied to achieve the faster growth of skilled IT workers in the US. It ultimately decided to open a small number of pilot, free IT training sites of its own, mostly in the Midwest.
One of the hallmarks of the IT-Ready approach is that it is employer-driven, and we anticipate that in each new location, more employers will partner with us. Over the years Per Scholas has developed an impressive list of employer partners who play an integral role in our program and in our graduates’ success. They include Ascendum, Barclays, Bloomberg, Cablevision, JPMorgan Chase, Neuberger Berman, NYSE Euronext, Pomeroy, Tata, Time Warner and many others.
In 2011-12, both Per Scholas and CITFF made additional critical decisions about their futures. Per Scholas decided to sunset its legacy “digital divide” programs that were still operating but no longer supported its evolved IT workforce development mission. Per Scholas also made a firm commitment to open a permanent new training location in Columbus, OH, with leadership support from JPMorgan Chase, after extensive research into the likelihood of its success in that city (which, like many others, has recently become an important center for corporate “back office” IT operations).
HISTORY Per Scholas began its own IT workforce development programming in 1998, at a time when the Internet was a handful of connections between academic and government institutions, and today’s iPad would outclass the world’s fastest supercomputer. Our modest goal was to staff a Bronx neighborhood computer recycling center, where we reconditioned and distributed tens of thousands of used desktop computers to low-income families.
CITFF, for its part, decided that it wanted to redouble its efforts to promote universal IT training accessibility — but not administer any new training sites itself. Noting the Per Scholas expansion into Columbus, it opened discussions with us about the possibility of combining our two models into a joint national initiative. As part of the expansion, Per Scholas would open new sites with seed funding from CITFF, as well as expand and assume management of some of the existing pilot sites. It would also expand
Crashing prices for new computer hardware along with a changing regulatory and business environment led us to end our direct computer recycling effort in the mid-2000s. But the IT training program continued to grow, placing graduates with other employers — including former institutional recycling clients. Before long, the program was enrolling more than 100 students per year, and helping them obtain the (then equally new) CompTIA A+ computer 5
IT-READY AT A GLANCE Unmatched technical skills training • Systems installation, configuration, maintenance and troubleshooting
• Mobile devices and wireless
• Virtualization
• Imaging, rollover and deployment
• Server 2008 (User Groups and Active Directory)
• OS (Windows XP/Vista/7) administration
• Network administration
• Software testing (select locations)
• Cloud-based applications
Preparation for today’s workplace • Communication and customer service
• Workplace norms, ethics and professional behavior
• Teamwork and collaboration
• Career planning and advancement
• Presentation and public speaking
Post-graduate employment services, training and support • Quality job referrals to committed employer partners
• Training converts into college credits (select locations)
• Higher-level training to earn additional professional certifications
• Career development and coaching
• Financial planning
• College application assistance
the existing CITFF training curriculum (already largely indistinguishable from our technical skills training) with comprehensive soft skills instruction, and provide a much larger set of continuing job placement and career development support for graduates.
they need to pass one or more industryrecognized credentialing exams: CompTIA’s A+ for all students and Network+ and/or Security+ for a smaller number. As has long been our experience in New York, 85% of those served so far in the new partnership sites are completing the training and at least 85% of the graduates are earning at least one professional certification.
The program as a whole would be known as IT-Ready, the name CompTIA initially chose and one that we have since adopted for our original training effort in New York City.
Per Scholas is proud of its role in developing the combined IT-Ready curriculum, and not just because of its previously demonstrated success. We have worked very hard, for example, to ensure that students don’t just receive training in subjects they need to learn to pass their certification exams. On the contrary, we constantly tailor the technical skills curriculum to include topics too new to appear on any general exam, but critical to modern
TRAINING COMPONENTS The chart above summarizes the total IT-Ready curriculum and core program components currently shared by Per Scholas in New York and the new CITFF partnership sites. Over 8-15 weeks, depending on location and previous skill level, students learn everything 6
employers nonetheless: mobile and cloud computing, virtualization, online ticketing, and cloud-based applications to name just a few.
are critical to our core sectoral workforce development model, not only result in more graduate job placements, but also help ensure that IT-Ready instruction is always tailored to fill the well-paying, skilled IT roles that actually exist in a given city or region.
Our soft skills training, too — always a strong part of our original New York programming — was recently modified by our partners at Accenture to be the best in its class. The revised career development curriculum promotes proficiency in six separate domains: Ambition, Integrity, Professionalism, Resourcefulness, Perseverance and Commitment to Service. It is our best answer, and a powerful one, to increasing concern about poor workplace preparation. This concern was summed up in the subhead of a recent Wall Street Journal op-ed article by Nick Schultz: “Finding qualified applicants for high-tech jobs would be great. So would finding someone who can answer the phone.”
THE IMPACTS Per Scholas and CITFF are currently operating their first sites together in Columbus and Cincinnati. The section following this one describes our plans to open at least four additional, brand new sites over the coming two years. This section, by contrast, highlights the impacts we believe are already attributable to IT-Ready today. While it is too soon to evaluate outcomes from the new, combined sites (the Cincinnati site just opened its doors under the Per Scholas banner in Fall 2013), we know that we are making a powerful difference. Already in Columbus, where we have been open for one year, graduation, certification and placement outcomes from an initial cohort of 59 enrolled students have exceeded even our hopes. To date, 53 of those students have graduated (for an overall graduation rate of 90%). Of these, 72% have already tested for and earned their CompTIA A+ IT certifications, with more graduates scheduled to test and
In fact, our experience helping students build a comprehensive range of career skills, and then directly supporting their success for at least two years afterward, were the primary reasons CITFF asked Per Scholas for help in realizing the vision we both share. CITFF is not only offering millions of dollars in national replication seed funding, it is also helping Per Scholas forge more strategic, collaborative partnerships with leading IT employers. These partnerships, which
PER SCHOLAS IT-READY OUTCOMES INCLUDING NYC (2009 - 2013) AND COLUMBUS (2012-13) Overall Outcomes
2009
%
2010
%
2011
%
2012
%
2013
%
TOTAL
Enrolled
321
100%
390
100%
359
100%
311
100%
419*
100%
1,800
Graduated
286
89%
316
81%
302
84%
266
86%
359*
86%
1,529
Certified
210
73%
264
84%
243
80%
238
89%
283*
79%
1,238
Placed
209
73%
242
77%
229*
76%
218*
82%
292*
81%
1,190
Average Wage
$12.87
$12.81
$13.50
*Projected at conclusion of respective performance periods for 2011, 2012, 2013. Percentages in “Certified” and “Placed” are of graduates, not all students.
7
$13.41
$14.97
$13.51
certify later this year. 79% have already begun employment. The location expects to achieve, at minimum, 80% certification and placement of graduates by the end of the year, an impressive rate for the pilot year.
program participants fared particularly well. Today, Per Scholas is supporting even more in-depth, multi-year scientific research to characterize longer-term outcomes as well as the particular factors associated with student success. This new research is being sponsored by the White House Social Innovation Fund grant to the New York City Mayor’s Center for Economic Opportunity (CEO)’s WorkAdvance initiative.
We know a great deal about our impact in New York, where since 1998, IT-Ready has enrolled more than 4,000 students. In 2012, their average pre-training income was just $7,000/ year. Among the graduates who are getting jobs today, average starting wages are $27,000/ year, with an additional 30% wage gain after working Per Scholas graduates for one year. Continued experience, education and were “more likely to skills development, especially leading to additional work, and in jobs with certifications, vaults many higher wages” than those into true mid-wage jobs after just a few years. in a control group offered
In June 2013, Per Scholas concluded the two-year enrollment period for the new study, which is being conducted by MDRC. The study is now tracking 700 low-income, un- and underemployed individuals who fulfilled all WorkAdvance/IT-Ready Buttressing all of the above, only generic employment admissions requirements, Per Scholas’ IT-Ready NYC assistance. and were subsequently training is also among just a randomized into treatment few workforce development (admitted) and control initiatives nationally that has — Public/Private Ventures cohorts (not admitted) been evaluated and proven -- 350 each. As of in credible, third-party, September 2013, 298 of scientific research. the admitted cohort had In a multi-year, randomized completed their classes and controlled study conducted by Public/ and graduated, and 89% had earned at least Private Ventures for the Charles Stewart Mott one IT certification. Already, more than half Foundation and published in 2010, researchers have begun unemployment. found that Per Scholas graduates were “more likely to work, and in jobs with higher wages” than those in a control group offered only generic employment assistance.
3. A POWERFUL VISION
The study further concluded that:
In uniting their efforts to address the problems and needs described in Part 1, and to leverage all our existing IT training experience and achievements, Per Scholas and CITFF are expressing a powerful, shared vision.
Program participants also earned the A+ certification at higher rates than non-participants, which may be a critical part of the value contributed by Per Scholas. Latino, immigrant, and formerly incarcerated program participants earned significantly more than their control group counterparts; immigrant and formerly incarcerated
We have noted already Per Scholas’ previous work to close the digital divide by recycling used computers and redistributing them to low-income families in New York City. The digital divide actually still exists. Certainly, it is much 8
NEW YORK 1994 COLUMBUS CINCINNATI
2012
2013
WASHINGTON, DC 2014
ATLANTA 2015 DALLAS SITE 7: TBA
2014
NEW SITE SELECTION CRITERIA • Strong IT job market
>3:1 projected ratio of new IT jobs to
available workers
• Large population of under-skilled adults
different than when we started, but for both Per Scholas and CITFF, it is no less potent.
>40% with no post-HS credential
• Alignment with local workforce and economic development goals
The digital divide today is not as much about gaining access to hardware. Instead, it is about fostering equal opportunities to acquire skills to use information technology in a meaningful and productive way. The shared vision of Per Scholas and CITFF, put simply, is a society where substantive, economically valuable IT skills are as easy and affordable to obtain as any modern computing device.
• Local champion
collaboration began. All the sites together will collaborate in a new IT-Ready Network. By the end of 2015, we will open at least four additional locations.
REPLICATION GOALS: 2015 AND BEYOND
The first will be in Greater Washington, DC. Per Scholas has already completed final logistics to open a new IT-Ready training site in Silver Spring, MD, just outside Washington, DC, at the beginning of 2014. We are also exploring the possibility of a satellite site within the District, in Anacostia. The new Silver Spring location will serve at least 80 individuals in its first year. In addition to District residents, we expect
As summarized in Part 1, Per Scholas and CITFF have already opened two new sites together, in Columbus last year and in Cincinnati last month. Per Scholas continues to manage its flagship site in New York City, while CITFF is retaining its first IT-Ready pilot location in Minneapolis, which it launched before our 9
SUSTAINABILITY THROUGH PARTNERSHIPS
many students to enroll from surrounding Montgomery County, where the new trend of suburban poverty has witnessed explosive growth.
Per Scholas and CITFF have chosen their existing IT-Ready locations, and will continue to choose new ones, only after exercising exceptional due diligence.
Feasibility studies are underway in Dallas and Atlanta to launch IT-Ready locations in mid-2014 and early 2015, respectively. In Dallas, early interest and support has come from Capital One, Prudential, Barclays, IT staffing firms TEKSystems and KForce, Texas Instruments and the Dallas Regional Chamber of Commerce. In Atlanta, similar encouragement and commitments have come from software testing firm QA Symphony, KForce, Home Depot, the United Way, Metro Atlanta Chamber and US Small Business Administration Region IV.
We have carefully examined factors including local IT job markets, long-term employment trends, number of adults without post-high school credentials, and possible synergies with local and regional economic and workforce development policies and funding. Hence our selection of each new location has also been preceded by extensive research, site visits, and meetings with local stakeholders. As all the new sites develop, more important than any extrinsic factor will be the ability of each new location to sustain itself over the long term through local partnerships with funders, employers and other key stakeholders. In fact, the entire replication effort is conceived as a partnership model not just nationally with CITFF and other major funders, but also by aligning with one or several local champions in each new location to support long-term growth.
We expect to choose a third site from among Detroit, Indianapolis, Newark or Charlotte. At the end of 2015, Per Scholas and CITFF will assess the progress of all sites and develop further plans to establish IT-Ready in new cities and regions. For consideration beyond our initial phase of expansion through 2015, additional metropolitan areas on our shortlist include Indianapolis, Detroit, Charlotte and Newark. We also expect that the existing sites will not only develop sound local partnerships and support (see next section), but will all begin scaling and diversifying their own programming. Already, Columbus will expand enrollment in 2013-2014 relative to its first year.
The reasons for this prerequisite are simple. The IT-Ready sectoral workforce development model depends on partnerships for its success: with the communities we serve, with the employers who hire our graduates and with the philanthropic community leaders who fund our work. The measure of any new IT-Ready’s partner development after 2-3 years is in our view a measure of its future sustainability and success.
The following table illustrates enrollment projections through the end of 2015. CITY New York
2013
2014
2015
TOTAL
360
420
460
1240
Columbus
80
80
100
260
Cincinnati
40
80
95
215
120
160
280
40
80
120
80
80
Greater DC* Dallas** Atlanta** City TBD TOTAL
480
780
40
40
1035
2295
But there are more immediate rationales for focusing so much of our energy on developing local partners. Not every city is the same, and neither is every population that could benefit from IT-Ready. Local partners are the trusted guides we need to adapt and tailor our offerings so that they can best meet local needs. In Columbus, beginning with our very first class, we worked with JPMorgan Chase, a major employer and our local champion in the city, to offer a one-week training extension for students
* Figures assume a Silver Spring main training site and an Anacostia satellite. **Subject to the conclusions of due diligence.
10
SAMPLE 4-YEAR BUDGET FOR NEW IT-READY LOCATION ENROLLING AT LEAST 80 STUDENTS IN FIRST YEAR, MORE IN SUBSEQUENT YEARS Expenses
I. Personnel Managing Director Associate Director of Business Solutions Associate Director of Career Development Associate Director, Technology Fund Development Officer Replication Staff Fiscal Officer Fringe Total Personnel
Year 1
Year 2
Year 3
Year 4
$70,000 $52,000 $42,000 $50,000 $20,000 $25,000 $10,000 $45,730 $314,730
$71,050 $53,560 $43,260 $51,500 $20,600 $10,000 $10,300 $44,246 $304,516
$72,116 $55,167 $44,558 $53,045 $21,218 $5,000 $10,609 $44,491 $306,203
$73,197 $56,822 $45,895 $54,636 $21,855 $5,000 $10,927 $45,616 $313,948
$286,363 $217,549 $175,712 $209,181 $83,673 $45,000 $41,836 $180,083 $1,239,398
II. OTPS Rent Utilities, Building Operations, Cleaning Costs Insurance Communications, Telephones Travel, meals and lodgings Recruitment/Marketing Student Materials Graduation Expenses Database, Web Site Fees Consultant/Professional Fees Employee Development/Training Office Supplies Equipment/Other Administration expenses Per Scholas Academy Total OTPS
$36,000 $12,600 $2,000 $6,000 $7,500 $8,000 $24,000 $2,000 $5,000 $5,000 $6,000 $10,000 $5,000 $31,473 $15,000 $175,573
$36,000 $12,600 $2,000 $6,000 $7,500 $8,000 $24,000 $2,000 $5,000 $5,000 $6,000 $10,000 $5,000 $30,452 $7,500 $167,052
$37,080 $13,230 $2,000 $6,000 $9,000 $8,000 $24,000 $2,000 $5,000 $5,000 $6,000 $10,000 $5,000 $30,620 $3,500 $166,430
$38,192 $13,892 $2,000 $6,000 $9,000 $8,000 $30,000 $2,000 $5,000 $5,000 $6,000 $10,000 $5,000 $31,395 $3,500 $174,979
$147,272 $38,430 $8,000 $24,000 $33,000 $32,000 $102,000 $8,000 $20,000 $20,000 $24,000 $40,000 $20,000 $123,940 $29,500 $684,034
$90,000
$0
$0
$0
$90,000
$580,303
$471,567
$472,634
$488,927
$2,013,431
80 $6,129
80 $5,895
80 $5,908
100 $4,889
III. Start-up Capital Total Start-up Capital Total Expenses (I+II+III) Individuals Enrolled Cost Per Enrollee*
Total
340 $5,922
*Excluding start-up
interested in customer service roles, since that was a primary market need. The graduates who took advantage of this training have found it easier to find jobs, not just at JPMorgan Chase but other companies as well.
funders and student recruitment and wraparound service provision services. Local service organizations in other cities are being considered for similar roles. The table above presents a sample first-year budget for a new training site serving at least 80 individuals.
In the new Greater Washington DC location that will open in early 2014, our champion will be the local branch of Catholic Charities, which is providing discounted space, introductions to other local stakeholders, endorsements to 11
4. CALLS TO ACTION
unemployed and underemployed Americans in the coming months.
OPPORTUNITIES AND NEEDS
FOR MORE INFORMATION Per Scholas welcomes queries from any interested party about its national replication plans and progress. To learn more, please contact Miriam Ackerman, Vice President of National Strategic Growth & Development, at (718) 772-0634 or by emailing [email protected].
As Per Scholas and CITFF prepare to bring IT-Ready to several more cities and regions throughout the US, we eagerly seek new partners who can:
• Introduce us to key business, community, philanthropic, political and other local stakeholders. • Help us find low-cost training and office space. • Help us identify and recruit allied nonprofits and public agencies for co-referral and case management. • Offer or help find apprenticeships, internships, or jobs for graduates. • Volunteer as guest presenters, host site visits to IT workplaces and mentor students. • Secure local philanthropic and other funding support. • Join and promote local advisory boards and working groups. We also seek ways to expand our partnerships and impact with all levels of government. In particular, we hope that our example will foster more federal, state and local efforts to support innovative sectoral workforce development approaches like IT-Ready which were not fully contemplated in the Workforce Investment Act and other enabling legislation. In fact, one of the greatest obstacles we have identified to our replication is the lack of a clear federal funding title that might support its success. Finally, we want very much for our partnership to educate and inform the sector, at all levels. We are particularly grateful for this opportunity to share our rationales, experience and new plans with the National Economic Council, and look forward to supporting a new and urgent national conversation about the needs of 12
BOARD OF DIRECTORS Lewis E. Miller Chairman, Per Scholas President Qvidian Plinio Ayala President and CEO Per Scholas Ami Ariel President G-Way Management, LLC Manuel Barbero Consultant James Bonham Chair, Federal Government Affairs and Public Policy Manatt, Phelps & Phillips LLC Derek Braddock Partner BraddockMatthews LLC Charles Eaton Executive Director Creating IT Futures Foundation
Sara Lander Director, Corporate Tax JPMorgan Chase Carolyn P. Landis Former President, Per Scholas Jan Lodal President Lodal and Company Manny Cancel Vice President & Chief Information Officer Con Edison Gregory W. Sills Executive Vice President Direct Brands Joe Squeri Former Chief Information Officer Barclays Ian Shrank Partner Allen & Overy
Daryan Dehghanpisheh Vice President & Managing Director NYSE-Technologies
John Hoyt Stookey Chairman Emeritus, Per Scholas Board of Supervisors Suburban Propane
Jean Hill Managing Director Alvarez & Marsal
Greg Tusar Former Managing Director Goldman Sachs
Joshua Jarrett Deputy Director, Education and Post Secondary Success Bill & Melinda Gates Foundation
MAJOR PARTNERS AND SUPPORTERS ACE • ACCENTURE • ACHELIS & BODMAN FOUNDATIONS • BARCLAYS • BLOOMBERG • CAPITAL ONE • CLARK FOUNDATION • COLUMBUS CITY COUNCIL • CON EDISON • CREATING IT FUTURES FOUNDATION • IRA W. DECAMP FOUNDATION • EDUCATIONAL FOUNDATION OF AMERICA • FIFTH & PACIFIC FOUNDATION • BERNARD F. AND ALVA B. GIMBEL FOUNDATION • JPMORGAN CHASE • NYC CENTER FOR ECONOMIC OPPORTUNITY/ SOCIAL INNOVATION FUND • NYC COUNCIL • NYC DEPARTMENT OF SMALL BUSINESS SERVICES • NYC WORKFORCE FUNDERS • NEW YORK STATE • NEW YORK WOMEN’S FOUNDATION • PIMCO • PINKERTON FOUNDATION • PRUDENTIAL • ROBIN HOOD FOUNDATION • ROCKEFELLER FOUNDATION • TIGER FOUNDATION • HARRY AND JEANETTE WEINBERG FOUNDATION
P
New York’s Robin Hood Foundation calls Per Scholas “indisputable proof that the American Dream still lives.” The Social Impact Exchange recently named us to the S&I100, its national index of the top 100 proven, high-impact nonprofits that are poised to grow.
er Scholas is a growing national nonprofit organization that offers free, high quality technology job training, certification, job referral and career development Moreover, randomized and controlled scientific services to people who are unemployed and research by credible third parties offers underemployed. In New York City and in two powerful evidence that our work transforms new partnership sites in Ohio, we enroll more lives and builds better futures. New research than 500 adults (18+) in our ITabout our outcomes today is being Ready multi-week job training conducted under the auspices of each year. “Indisputable the Corporation for National and The Per Scholas philosophy is Community Service and its Social proof that the simple. We believe that one of Innovation Fund. American Dream the most effective antidotes Now, after years of painstaking to poverty and long-term still lives.” development and planning, Per unemployment is access to Scholas has partnered with the — Robin Hood good jobs, along with the ability Creating IT Futures Foundation to succeed in them. We know Foundation, NYC (CITFF) — the charitable arm of the that many of today’s most IT industry association CompTIA — to promising career opportunities begin bringing its proven approach are in the technology sector. So to several additional cities and regions in the we partner with leading IT employers and learn US: Columbus (launched 10/2012), Cincinnati everything we can about the jobs they need to (launched 9/2013), Greater Washington DC fill. (launching early 2014) and, by 2015, three Then we invest in talented, un- and more locations, still to be selected. The shortlist underemployed adults of all ages who can use includes Atlanta, Dallas, Detroit, Indianapolis, our free training and other services to get those and Newark, NJ. good jobs — and begin creating better lives for The result will be the largest IT sector-based themselves and their families. workforce development program expansion in On average, 85% of Per Scholas students US history, carefully managed to sustain and graduate. 85% of the graduates earn IT enhance program relevance, quality and impact. certifications and nearly 80% gain employment, This document offers an overview of our earning starting wages that are currently planning, rationale and partnership needs. We almost four times their average pre-training welcome interest and participation by nonprofit, income. With the opening of new locations and philanthropic, business and government the expansion of employer partnerships, the organizations. Please contact Per Scholas for latter figure is projected to increase steadily for more information. current year graduates, if not higher.
w w w. p e r s ch o l a s. o r g
1. THE NEW ECONOMY: BRACING FOR IMPACT
the jobs that it took were held by people with a high school education or less.1 Further, it is doubtful that many of these older jobs will return, despite an emphasis now on “reshoring” many thousands of formerly US jobs that bled overseas.
IT’S NOT JUST THE RECESSION
For example, while US manufacturing is Today’s continued high US unemployment is experiencing a resurgence, it is also automating, not solely rooted in the most recent recession. greatly reducing the need for marginally skilled One longer-term trend that has also contributed factory workers to fuel its growth.2 A fresh to widespread joblessness has been the housing boom could still boost construction evolution of the American and many related jobs, but workplace from an enterprise few experts expect one soon. that deals mainly in goods Revitalizing the While new housing starts have and materials into one that grown considerably since their middle class depends is increasingly focused on 2008 lows, they are still much providing information and less than half their 2004in part on helping (skilled) services — often using 05 peaks.3 Non-residential information technology. more Americans construction has fared somewhat better, but is also As a result, the success of master the technical still well below its most recent efforts to preserve and expand and other job skills (2007) highs.4 America’s middle class, and especially to reduce longneeded to succeed in Finally, the discharge of many term joblessness among modern work settings. thousands of US veterans in those able and willing to work, the wake of the Afghanistan depends in part on helping and Iraq conflicts has added more Americans master the fuel to the economic fires. technical and other job skills that qualify them The work skills learned by many US veterans to succeed in these newer work settings. are primarily applicable only in the same heavy industries (such as construction) that suffered This long-term trend, stretching back at least the most in the recession. While resulting to the 1970s, has already had enormous joblessness among Gulf War II era veterans has consequences. It was not so very long ago in improved over the past few years, many former the US that middle-class career pathways were soldiers, especially younger ones, have not plentiful for people whose highest educational worked since.5 achievement was a high school diploma. One could find these pathways in manufacturing, construction and other heavy industries, as well as in lower echelons of the commercial and government sectors.
Finally, it is important to note that the skills required for the new economy are not solely technical or knowledge-oriented, however broadly defined. Just as formidable a barrier to employment for millions of Americans is that they lack so-called soft skills: the general learned traits and behaviors that characterize effective agency in the modern workplace. This
For many, the post-World War II American Dream was built on such jobs: anyone willing to work hard and play by the rules would be rewarded with a living wage, benefits and even a pension.
1 US Census Bureau, Current Population Survey, and US Department of Labor, Bureau of Labor Statistics 2 Tseng, Nin-Hai.. “A U.S. manufacturing comeback won’t rebuild the middle class,” Fortune Magazine, 8/21/2013 3 Federal Reserve Bank of St. Louis 4 US Census Bureau 5 US Census Bureau (CPS) and US DOL (BLS)
By the beginning of the Great Recession, many jobs in these traditional occupations had already disappeared. But the downturn had an especially vicious effect: 4 out of 5 of 2
topic will recur frequently throughout this paper.
COLLEGE NOT THE ONLY (OR BEST) ANSWER
IT’S NOT JUST JOBLESSNESS, EITHER
For the reasons just summarized, large numbers of un- and underemployed Americans have enrolled in college, especially two-year schools. But this is not the only or even the best solution for many.
At the same time as the broader trends just summarized have created an oversupply of workers without post-high school education or It is not just that relatively few underemployed training, numerous other economic, political and jobless individuals can afford the and social factors have eroded compensation investment required to attend an academic (in real terms) for most, to the point that many institution, or that so many have other life of the jobs they do hold no longer pay a living challenges that make such schools poorly wage. One of the most striking suited for them. It is also not illustrations of this phenomenon that most higher education is offered by the Supplemental In a world of institutions do not effectively Nutrition Assistance Program teach the soft skills that also “lousy” and (SNAP), which nearly one in five matter vitally for employment, Americans have now used at some “lovely” jobs, or aggressively support ongoing point in their lives. In 2010, 41% career development for students information of all SNAP participants lived in a after they graduate. household with earnings.6
workers get the lovely ones.
Much more concerning is that the overall returns on investment are so very poor: According to the College Board, just 22% of Americans who enroll in nonprofit two-year colleges (the vast majority of these institutions nationally) ever complete their studies.
In their analysis of comparable long-term dynamics in the UK, economists Maarten Goos and Alan Manning hit upon two striking labels to describe the kinds of jobs that remained in their own country: they were either “lousy” or “lovely.”7 Here in the US, the lousy jobs can be said to involve poorly compensated, unskilled labor with little hope for advancement (home health care aides, fast food workers). These represent by far the greatest share of job opportunities for those with low education and skills.
Further, while the College Board also reports that graduation rates at for-profit two-year colleges are much higher at 60%, this fact alone may not be significant. Not only do large numbers of these graduates also fail to find jobs, but nearly all for-profit colleges (along with many nonprofit ones) have been criticized for freighting their students with debt. Today, for-profit students account for 47% of all loan defaults. Studies have shown low-income students enroll in for-profits at four times the rate of other students.8
Many of the lovely jobs, by contrast, can only be filled by those with some measure of posthigh school education and/or concrete skills attainment. The largest number of these jobs in the US today are for information workers, broadly defined — those qualified, at a minimum, to perform structured tasks involving data as much as any physical good, generally in the context of fast-evolving, IT-dependent workflows and tools. 6 US Food and Drug Administration, Food and Nutrition Service 7 Maarten Goos & Alan Manning, 2003. “Lousy and Lovely Jobs: the Rising Polarization of Work in Britain,” CEP Discussion Papers dp0604, Centre for Economic Performance, LSE 8 Webley, Kayla “Are For Profit Colleges Targeting Low-Income Students?” TIME Magazine, 6/15/2011
THE CERTIFICATION REVOLUTION: IT JOBS IN FOCUS But the main reason to eschew traditional higher education as a sole or even primary strategy for helping underskilled individuals is not its cost nor its outcomes. It is that for large numbers, it is not even necessary. 3
High school diplomas are no longer enough, but that does not mean the only alternative is a two-year or four-year degree. Earning certificates of competency in particular skills areas, generally awarded upon passing comprehensive, industry-recognized exams, has in recent years emerged as a viable — and much more affordable and achievable — career preparation option, especially for those suffering the worst Industry economic dislocation today.
Already, current and projected US IT job openings exceed the number of qualified domestic candidates, and this shortage is widely acknowledged as a serious business problem. In related CompTIA research, 9 in 10 companies reported that their workforces needed better IT skills, and 8 in 10 said the gap affected their bottom lines.
Further, the greatest unmet IT staffing needs are no longer restricted, as often research shows IT jobs — at the very center assumed, to higher-level titles of the information worker like programmer or engineer. that 80% of IT revolution — are perhaps the On the contrary, according employers expect strongest examples. For a large to the ManpowerGroup’s number of the IT jobs available 2013 annual Talent Shortage certifications to today, the only post-high school Survey, the number one role grow in “usefulness that businesses have the credentials needed are one or more professional certifications most difficulty filling today and importance.” from a recognized industry are “technicians” — the very authority. By the same token, category of workers for whom in many enterprise-based IT professional certifications are settings, while experience and education always becoming the most important post-high school matter, employers will hire less educated or credentials. less experienced candidates (especially for In short, meeting our national commitment to entry-level positions) who can demonstrate a putting America back to work, and achieving strong potential to learn, cooperate and grow the longer term goal of revitalizing our (soft skills, again). country’s middle class, are goals likely to Underscoring this point, CompTIA, the IT require both traditional and nontraditional industry association that is also one of strategies. The purpose of this concept paper the largest providers of IT professional is to share Per Scholas’ proven experience certifications globally, studied their perceived with one of the most promising nontraditional value among hiring managers as recently approaches, and the strong opportunity as 2011. It found that IT certifications today — thanks to a new partnership with the were already being accepted as “high-value Creating IT Futures Foundation — to replicate validation” of job candidate skills. Moreover, that achievement nationally. 80% of the respondents in CompTIA’s research said they expected IT certifications to “grow in usefulness and importance.”
A SUBSTANTIVE BUSINESS CHALLENGE The truth is that IT employers in particular cannot afford to be picky. The U.S. Department of Labor projects the creation of at least 750,000 new IT jobs between 2012 and 2018, making it both one of the largest and fastest-growing employment sectors nationally. 4
2. THE IT-READY SOLUTION
skills certification. (This year, Per Scholas in New York will enroll 360 IT-Ready students, as well as scores of others in more specialized and experimental programs).
The Per Scholas/Creating IT Futures Foundation IT-Ready partnership encompasses an integrated range of free IT training, job referral and career development services, employer partnerships and other substantive support for economically displaced individuals who have the drive and aptitude to succeed in IT, but not the skills or experience. By the end of 2015, the partnership will be active in at least five cities outside New York.
Very soon, the Per Scholas training initiative was the largest of its kind in New York City, and began inspiring imitations both locally and nationally. It also caught the attention of CompTIA and its new Creating IT Futures Foundation (CITFF), which began sharing free vouchers for certification exams, instructional materials and many other helpful resources. This early contact was fortuitous. At the time, both organizations were considering how they could accomplish much more. For its part, Per Scholas launched a small, temporary training location in Miami, FL, to gain meaningful experience operating in a different city. CITFF began a planning process to assess how its growing philanthropy budget should be applied to achieve the faster growth of skilled IT workers in the US. It ultimately decided to open a small number of pilot, free IT training sites of its own, mostly in the Midwest.
One of the hallmarks of the IT-Ready approach is that it is employer-driven, and we anticipate that in each new location, more employers will partner with us. Over the years Per Scholas has developed an impressive list of employer partners who play an integral role in our program and in our graduates’ success. They include Ascendum, Barclays, Bloomberg, Cablevision, JPMorgan Chase, Neuberger Berman, NYSE Euronext, Pomeroy, Tata, Time Warner and many others.
In 2011-12, both Per Scholas and CITFF made additional critical decisions about their futures. Per Scholas decided to sunset its legacy “digital divide” programs that were still operating but no longer supported its evolved IT workforce development mission. Per Scholas also made a firm commitment to open a permanent new training location in Columbus, OH, with leadership support from JPMorgan Chase, after extensive research into the likelihood of its success in that city (which, like many others, has recently become an important center for corporate “back office” IT operations).
HISTORY Per Scholas began its own IT workforce development programming in 1998, at a time when the Internet was a handful of connections between academic and government institutions, and today’s iPad would outclass the world’s fastest supercomputer. Our modest goal was to staff a Bronx neighborhood computer recycling center, where we reconditioned and distributed tens of thousands of used desktop computers to low-income families.
CITFF, for its part, decided that it wanted to redouble its efforts to promote universal IT training accessibility — but not administer any new training sites itself. Noting the Per Scholas expansion into Columbus, it opened discussions with us about the possibility of combining our two models into a joint national initiative. As part of the expansion, Per Scholas would open new sites with seed funding from CITFF, as well as expand and assume management of some of the existing pilot sites. It would also expand
Crashing prices for new computer hardware along with a changing regulatory and business environment led us to end our direct computer recycling effort in the mid-2000s. But the IT training program continued to grow, placing graduates with other employers — including former institutional recycling clients. Before long, the program was enrolling more than 100 students per year, and helping them obtain the (then equally new) CompTIA A+ computer 5
IT-READY AT A GLANCE Unmatched technical skills training • Systems installation, configuration, maintenance and troubleshooting
• Mobile devices and wireless
• Virtualization
• Imaging, rollover and deployment
• Server 2008 (User Groups and Active Directory)
• OS (Windows XP/Vista/7) administration
• Network administration
• Software testing (select locations)
• Cloud-based applications
Preparation for today’s workplace • Communication and customer service
• Workplace norms, ethics and professional behavior
• Teamwork and collaboration
• Career planning and advancement
• Presentation and public speaking
Post-graduate employment services, training and support • Quality job referrals to committed employer partners
• Training converts into college credits (select locations)
• Higher-level training to earn additional professional certifications
• Career development and coaching
• Financial planning
• College application assistance
the existing CITFF training curriculum (already largely indistinguishable from our technical skills training) with comprehensive soft skills instruction, and provide a much larger set of continuing job placement and career development support for graduates.
they need to pass one or more industryrecognized credentialing exams: CompTIA’s A+ for all students and Network+ and/or Security+ for a smaller number. As has long been our experience in New York, 85% of those served so far in the new partnership sites are completing the training and at least 85% of the graduates are earning at least one professional certification.
The program as a whole would be known as IT-Ready, the name CompTIA initially chose and one that we have since adopted for our original training effort in New York City.
Per Scholas is proud of its role in developing the combined IT-Ready curriculum, and not just because of its previously demonstrated success. We have worked very hard, for example, to ensure that students don’t just receive training in subjects they need to learn to pass their certification exams. On the contrary, we constantly tailor the technical skills curriculum to include topics too new to appear on any general exam, but critical to modern
TRAINING COMPONENTS The chart above summarizes the total IT-Ready curriculum and core program components currently shared by Per Scholas in New York and the new CITFF partnership sites. Over 8-15 weeks, depending on location and previous skill level, students learn everything 6
employers nonetheless: mobile and cloud computing, virtualization, online ticketing, and cloud-based applications to name just a few.
are critical to our core sectoral workforce development model, not only result in more graduate job placements, but also help ensure that IT-Ready instruction is always tailored to fill the well-paying, skilled IT roles that actually exist in a given city or region.
Our soft skills training, too — always a strong part of our original New York programming — was recently modified by our partners at Accenture to be the best in its class. The revised career development curriculum promotes proficiency in six separate domains: Ambition, Integrity, Professionalism, Resourcefulness, Perseverance and Commitment to Service. It is our best answer, and a powerful one, to increasing concern about poor workplace preparation. This concern was summed up in the subhead of a recent Wall Street Journal op-ed article by Nick Schultz: “Finding qualified applicants for high-tech jobs would be great. So would finding someone who can answer the phone.”
THE IMPACTS Per Scholas and CITFF are currently operating their first sites together in Columbus and Cincinnati. The section following this one describes our plans to open at least four additional, brand new sites over the coming two years. This section, by contrast, highlights the impacts we believe are already attributable to IT-Ready today. While it is too soon to evaluate outcomes from the new, combined sites (the Cincinnati site just opened its doors under the Per Scholas banner in Fall 2013), we know that we are making a powerful difference. Already in Columbus, where we have been open for one year, graduation, certification and placement outcomes from an initial cohort of 59 enrolled students have exceeded even our hopes. To date, 53 of those students have graduated (for an overall graduation rate of 90%). Of these, 72% have already tested for and earned their CompTIA A+ IT certifications, with more graduates scheduled to test and
In fact, our experience helping students build a comprehensive range of career skills, and then directly supporting their success for at least two years afterward, were the primary reasons CITFF asked Per Scholas for help in realizing the vision we both share. CITFF is not only offering millions of dollars in national replication seed funding, it is also helping Per Scholas forge more strategic, collaborative partnerships with leading IT employers. These partnerships, which
PER SCHOLAS IT-READY OUTCOMES INCLUDING NYC (2009 - 2013) AND COLUMBUS (2012-13) Overall Outcomes
2009
%
2010
%
2011
%
2012
%
2013
%
TOTAL
Enrolled
321
100%
390
100%
359
100%
311
100%
419*
100%
1,800
Graduated
286
89%
316
81%
302
84%
266
86%
359*
86%
1,529
Certified
210
73%
264
84%
243
80%
238
89%
283*
79%
1,238
Placed
209
73%
242
77%
229*
76%
218*
82%
292*
81%
1,190
Average Wage
$12.87
$12.81
$13.50
*Projected at conclusion of respective performance periods for 2011, 2012, 2013. Percentages in “Certified” and “Placed” are of graduates, not all students.
7
$13.41
$14.97
$13.51
certify later this year. 79% have already begun employment. The location expects to achieve, at minimum, 80% certification and placement of graduates by the end of the year, an impressive rate for the pilot year.
program participants fared particularly well. Today, Per Scholas is supporting even more in-depth, multi-year scientific research to characterize longer-term outcomes as well as the particular factors associated with student success. This new research is being sponsored by the White House Social Innovation Fund grant to the New York City Mayor’s Center for Economic Opportunity (CEO)’s WorkAdvance initiative.
We know a great deal about our impact in New York, where since 1998, IT-Ready has enrolled more than 4,000 students. In 2012, their average pre-training income was just $7,000/ year. Among the graduates who are getting jobs today, average starting wages are $27,000/ year, with an additional 30% wage gain after working Per Scholas graduates for one year. Continued experience, education and were “more likely to skills development, especially leading to additional work, and in jobs with certifications, vaults many higher wages” than those into true mid-wage jobs after just a few years. in a control group offered
In June 2013, Per Scholas concluded the two-year enrollment period for the new study, which is being conducted by MDRC. The study is now tracking 700 low-income, un- and underemployed individuals who fulfilled all WorkAdvance/IT-Ready Buttressing all of the above, only generic employment admissions requirements, Per Scholas’ IT-Ready NYC assistance. and were subsequently training is also among just a randomized into treatment few workforce development (admitted) and control initiatives nationally that has — Public/Private Ventures cohorts (not admitted) been evaluated and proven -- 350 each. As of in credible, third-party, September 2013, 298 of scientific research. the admitted cohort had In a multi-year, randomized completed their classes and controlled study conducted by Public/ and graduated, and 89% had earned at least Private Ventures for the Charles Stewart Mott one IT certification. Already, more than half Foundation and published in 2010, researchers have begun unemployment. found that Per Scholas graduates were “more likely to work, and in jobs with higher wages” than those in a control group offered only generic employment assistance.
3. A POWERFUL VISION
The study further concluded that:
In uniting their efforts to address the problems and needs described in Part 1, and to leverage all our existing IT training experience and achievements, Per Scholas and CITFF are expressing a powerful, shared vision.
Program participants also earned the A+ certification at higher rates than non-participants, which may be a critical part of the value contributed by Per Scholas. Latino, immigrant, and formerly incarcerated program participants earned significantly more than their control group counterparts; immigrant and formerly incarcerated
We have noted already Per Scholas’ previous work to close the digital divide by recycling used computers and redistributing them to low-income families in New York City. The digital divide actually still exists. Certainly, it is much 8
NEW YORK 1994 COLUMBUS CINCINNATI
2012
2013
WASHINGTON, DC 2014
ATLANTA 2015 DALLAS SITE 7: TBA
2014
NEW SITE SELECTION CRITERIA • Strong IT job market
>3:1 projected ratio of new IT jobs to
available workers
• Large population of under-skilled adults
different than when we started, but for both Per Scholas and CITFF, it is no less potent.
>40% with no post-HS credential
• Alignment with local workforce and economic development goals
The digital divide today is not as much about gaining access to hardware. Instead, it is about fostering equal opportunities to acquire skills to use information technology in a meaningful and productive way. The shared vision of Per Scholas and CITFF, put simply, is a society where substantive, economically valuable IT skills are as easy and affordable to obtain as any modern computing device.
• Local champion
collaboration began. All the sites together will collaborate in a new IT-Ready Network. By the end of 2015, we will open at least four additional locations.
REPLICATION GOALS: 2015 AND BEYOND
The first will be in Greater Washington, DC. Per Scholas has already completed final logistics to open a new IT-Ready training site in Silver Spring, MD, just outside Washington, DC, at the beginning of 2014. We are also exploring the possibility of a satellite site within the District, in Anacostia. The new Silver Spring location will serve at least 80 individuals in its first year. In addition to District residents, we expect
As summarized in Part 1, Per Scholas and CITFF have already opened two new sites together, in Columbus last year and in Cincinnati last month. Per Scholas continues to manage its flagship site in New York City, while CITFF is retaining its first IT-Ready pilot location in Minneapolis, which it launched before our 9
SUSTAINABILITY THROUGH PARTNERSHIPS
many students to enroll from surrounding Montgomery County, where the new trend of suburban poverty has witnessed explosive growth.
Per Scholas and CITFF have chosen their existing IT-Ready locations, and will continue to choose new ones, only after exercising exceptional due diligence.
Feasibility studies are underway in Dallas and Atlanta to launch IT-Ready locations in mid-2014 and early 2015, respectively. In Dallas, early interest and support has come from Capital One, Prudential, Barclays, IT staffing firms TEKSystems and KForce, Texas Instruments and the Dallas Regional Chamber of Commerce. In Atlanta, similar encouragement and commitments have come from software testing firm QA Symphony, KForce, Home Depot, the United Way, Metro Atlanta Chamber and US Small Business Administration Region IV.
We have carefully examined factors including local IT job markets, long-term employment trends, number of adults without post-high school credentials, and possible synergies with local and regional economic and workforce development policies and funding. Hence our selection of each new location has also been preceded by extensive research, site visits, and meetings with local stakeholders. As all the new sites develop, more important than any extrinsic factor will be the ability of each new location to sustain itself over the long term through local partnerships with funders, employers and other key stakeholders. In fact, the entire replication effort is conceived as a partnership model not just nationally with CITFF and other major funders, but also by aligning with one or several local champions in each new location to support long-term growth.
We expect to choose a third site from among Detroit, Indianapolis, Newark or Charlotte. At the end of 2015, Per Scholas and CITFF will assess the progress of all sites and develop further plans to establish IT-Ready in new cities and regions. For consideration beyond our initial phase of expansion through 2015, additional metropolitan areas on our shortlist include Indianapolis, Detroit, Charlotte and Newark. We also expect that the existing sites will not only develop sound local partnerships and support (see next section), but will all begin scaling and diversifying their own programming. Already, Columbus will expand enrollment in 2013-2014 relative to its first year.
The reasons for this prerequisite are simple. The IT-Ready sectoral workforce development model depends on partnerships for its success: with the communities we serve, with the employers who hire our graduates and with the philanthropic community leaders who fund our work. The measure of any new IT-Ready’s partner development after 2-3 years is in our view a measure of its future sustainability and success.
The following table illustrates enrollment projections through the end of 2015. CITY New York
2013
2014
2015
TOTAL
360
420
460
1240
Columbus
80
80
100
260
Cincinnati
40
80
95
215
120
160
280
40
80
120
80
80
Greater DC* Dallas** Atlanta** City TBD TOTAL
480
780
40
40
1035
2295
But there are more immediate rationales for focusing so much of our energy on developing local partners. Not every city is the same, and neither is every population that could benefit from IT-Ready. Local partners are the trusted guides we need to adapt and tailor our offerings so that they can best meet local needs. In Columbus, beginning with our very first class, we worked with JPMorgan Chase, a major employer and our local champion in the city, to offer a one-week training extension for students
* Figures assume a Silver Spring main training site and an Anacostia satellite. **Subject to the conclusions of due diligence.
10
SAMPLE 4-YEAR BUDGET FOR NEW IT-READY LOCATION ENROLLING AT LEAST 80 STUDENTS IN FIRST YEAR, MORE IN SUBSEQUENT YEARS Expenses
I. Personnel Managing Director Associate Director of Business Solutions Associate Director of Career Development Associate Director, Technology Fund Development Officer Replication Staff Fiscal Officer Fringe Total Personnel
Year 1
Year 2
Year 3
Year 4
$70,000 $52,000 $42,000 $50,000 $20,000 $25,000 $10,000 $45,730 $314,730
$71,050 $53,560 $43,260 $51,500 $20,600 $10,000 $10,300 $44,246 $304,516
$72,116 $55,167 $44,558 $53,045 $21,218 $5,000 $10,609 $44,491 $306,203
$73,197 $56,822 $45,895 $54,636 $21,855 $5,000 $10,927 $45,616 $313,948
$286,363 $217,549 $175,712 $209,181 $83,673 $45,000 $41,836 $180,083 $1,239,398
II. OTPS Rent Utilities, Building Operations, Cleaning Costs Insurance Communications, Telephones Travel, meals and lodgings Recruitment/Marketing Student Materials Graduation Expenses Database, Web Site Fees Consultant/Professional Fees Employee Development/Training Office Supplies Equipment/Other Administration expenses Per Scholas Academy Total OTPS
$36,000 $12,600 $2,000 $6,000 $7,500 $8,000 $24,000 $2,000 $5,000 $5,000 $6,000 $10,000 $5,000 $31,473 $15,000 $175,573
$36,000 $12,600 $2,000 $6,000 $7,500 $8,000 $24,000 $2,000 $5,000 $5,000 $6,000 $10,000 $5,000 $30,452 $7,500 $167,052
$37,080 $13,230 $2,000 $6,000 $9,000 $8,000 $24,000 $2,000 $5,000 $5,000 $6,000 $10,000 $5,000 $30,620 $3,500 $166,430
$38,192 $13,892 $2,000 $6,000 $9,000 $8,000 $30,000 $2,000 $5,000 $5,000 $6,000 $10,000 $5,000 $31,395 $3,500 $174,979
$147,272 $38,430 $8,000 $24,000 $33,000 $32,000 $102,000 $8,000 $20,000 $20,000 $24,000 $40,000 $20,000 $123,940 $29,500 $684,034
$90,000
$0
$0
$0
$90,000
$580,303
$471,567
$472,634
$488,927
$2,013,431
80 $6,129
80 $5,895
80 $5,908
100 $4,889
III. Start-up Capital Total Start-up Capital Total Expenses (I+II+III) Individuals Enrolled Cost Per Enrollee*
Total
340 $5,922
*Excluding start-up
interested in customer service roles, since that was a primary market need. The graduates who took advantage of this training have found it easier to find jobs, not just at JPMorgan Chase but other companies as well.
funders and student recruitment and wraparound service provision services. Local service organizations in other cities are being considered for similar roles. The table above presents a sample first-year budget for a new training site serving at least 80 individuals.
In the new Greater Washington DC location that will open in early 2014, our champion will be the local branch of Catholic Charities, which is providing discounted space, introductions to other local stakeholders, endorsements to 11
4. CALLS TO ACTION
unemployed and underemployed Americans in the coming months.
OPPORTUNITIES AND NEEDS
FOR MORE INFORMATION Per Scholas welcomes queries from any interested party about its national replication plans and progress. To learn more, please contact Miriam Ackerman, Vice President of National Strategic Growth & Development, at (718) 772-0634 or by emailing [email protected].
As Per Scholas and CITFF prepare to bring IT-Ready to several more cities and regions throughout the US, we eagerly seek new partners who can:
• Introduce us to key business, community, philanthropic, political and other local stakeholders. • Help us find low-cost training and office space. • Help us identify and recruit allied nonprofits and public agencies for co-referral and case management. • Offer or help find apprenticeships, internships, or jobs for graduates. • Volunteer as guest presenters, host site visits to IT workplaces and mentor students. • Secure local philanthropic and other funding support. • Join and promote local advisory boards and working groups. We also seek ways to expand our partnerships and impact with all levels of government. In particular, we hope that our example will foster more federal, state and local efforts to support innovative sectoral workforce development approaches like IT-Ready which were not fully contemplated in the Workforce Investment Act and other enabling legislation. In fact, one of the greatest obstacles we have identified to our replication is the lack of a clear federal funding title that might support its success. Finally, we want very much for our partnership to educate and inform the sector, at all levels. We are particularly grateful for this opportunity to share our rationales, experience and new plans with the National Economic Council, and look forward to supporting a new and urgent national conversation about the needs of 12
BOARD OF DIRECTORS Lewis E. Miller Chairman, Per Scholas President Qvidian Plinio Ayala President and CEO Per Scholas Ami Ariel President G-Way Management, LLC Manuel Barbero Consultant James Bonham Chair, Federal Government Affairs and Public Policy Manatt, Phelps & Phillips LLC Derek Braddock Partner BraddockMatthews LLC Charles Eaton Executive Director Creating IT Futures Foundation
Sara Lander Director, Corporate Tax JPMorgan Chase Carolyn P. Landis Former President, Per Scholas Jan Lodal President Lodal and Company Manny Cancel Vice President & Chief Information Officer Con Edison Gregory W. Sills Executive Vice President Direct Brands Joe Squeri Former Chief Information Officer Barclays Ian Shrank Partner Allen & Overy
Daryan Dehghanpisheh Vice President & Managing Director NYSE-Technologies
John Hoyt Stookey Chairman Emeritus, Per Scholas Board of Supervisors Suburban Propane
Jean Hill Managing Director Alvarez & Marsal
Greg Tusar Former Managing Director Goldman Sachs
Joshua Jarrett Deputy Director, Education and Post Secondary Success Bill & Melinda Gates Foundation
MAJOR PARTNERS AND SUPPORTERS ACE • ACCENTURE • ACHELIS & BODMAN FOUNDATIONS • BARCLAYS • BLOOMBERG • CAPITAL ONE • CLARK FOUNDATION • COLUMBUS CITY COUNCIL • CON EDISON • CREATING IT FUTURES FOUNDATION • IRA W. DECAMP FOUNDATION • EDUCATIONAL FOUNDATION OF AMERICA • FIFTH & PACIFIC FOUNDATION • BERNARD F. AND ALVA B. GIMBEL FOUNDATION • JPMORGAN CHASE • NYC CENTER FOR ECONOMIC OPPORTUNITY/ SOCIAL INNOVATION FUND • NYC COUNCIL • NYC DEPARTMENT OF SMALL BUSINESS SERVICES • NYC WORKFORCE FUNDERS • NEW YORK STATE • NEW YORK WOMEN’S FOUNDATION • PIMCO • PINKERTON FOUNDATION • PRUDENTIAL • ROBIN HOOD FOUNDATION • ROCKEFELLER FOUNDATION • TIGER FOUNDATION • HARRY AND JEANETTE WEINBERG FOUNDATION
