® Michigan WorkKeys Conference Dick Ferguson CEO and Chair – ACT, Inc. ® Michigan WorkKeys Conference Nov. 6, 2007

Michigan WorkKeys Conference®

Dick FergusonCEO and Chair – ACT, Inc.

®

Michigan WorkKeys ConferenceNov. 6, 2007


Some Background on ACT

Founded in 1959

Education in the ’50s

A not-for-profit 501(c)(3) public trust

Initial service: The ACT®

ACT’s philosophy


ACT’s Evolution Belief: College readiness begins early

Linking the ACT to college AND career planning

Testing to inform decision-making Students, Parents, Counselors, etc.

Creating a college readiness SYSTEM EXPLORE®, PLAN®, and the ACT


ACT’s Evolution

Development of College Readiness StandardsTM, benchmarks

Advocacy for rigor and partnerships with states, districts, etc.

Professional/occupational assessments Expanding from college readiness to

work readiness


ACT’s Evolution

Developed in the late 1980s

Early warnings: Impending crises in the workforce

Workforce readiness issues similar to college readiness

ACT’s Workforce Development Division


The Perfect Storm


The Perfect Storm

Circumstances: Educational pipeline

Increased reliance on immigrant labor

Retirement of baby boomers

Global competition for natural resources

Outsourcing


Jobs require higher skills DOL: 80 percent of jobs will require

some postsecondary education

DOL: 75 percent of employees must be retrained to keep the jobs they have

Meanwhile, HR professionals report difficulties in hiring workers with essential skills

Threats to the Workforce

The Perfect Storm


Shifting demographics: BLS: More than 25 percent of the working

population will reach retirement age by 2010 By 2012:

U.S. workers aged 55-64 will grow 51 percent

U.S. workers aged 35-44 will decline 7 percent

Hispanics: Fastest-growing segment of the workforce

However, one-third don’t have a diploma

The Perfect StormThreats to the Workforce


Inadequate skills held by workers BLS: Employers estimate that skill

deficiencies are held by 39 percent of incumbents and 26 percent of new hires

Adult Literacy Survey: 50 percent of the U.S. population is

functionally illiterate 52 percent of high school graduates lack

basic skills required to do jobs adequately

The Perfect StormThreats to the Workforce


The Perfect Storm

ACT studies: Rigor at Risk (2007)

In 2006, only one-fourth of ACT-tested students met ALL college-readiness benchmarks

1 in 5 met no benchmarks at all

ACT Curriculum Survey (2007) 65 percent of college instructors

say state standards prepare students “poorly”

Education Pipeline – Are we preparing students?


The Perfect StormSkilled Labor Gaps – ACT WorkKeys® Data

7Below 3

6

5

4

3

Level

18%

5%

32%

32%

7%

6%

All Examinees 9/06–8/07

Job Profiles 9/02–8/07

0%

4%

20%

43%

34%

0%

N4,164 423,739

Reading for Information

7

Below 3

6

5

4

3

Level

17%

6%

28%

25%

16%

8%

All Examinees 9/06–8/07

Job Profiles 9/02–8/07

1%

5%

14%

36%

44%

0%

N3,890 421,582

Applied Mathematics


The writing on the wall: A Nation at Risk (1983)

Countries matching/surpassing U.S. educational achievements

Educators losing sight of basic schooling principles

Foreign products gaining edge

Other reports: Insufficient number of skilled workers to fill jobs


Multiple components: Job profiling Skills assessment Skill training

Foundational Skills – applicable to whole workforce 2007 – Personal Skills added

Helps employers avoid a ‘shotgun’ approach to training

The WorkKeys SYSTEM


A ‘ruler’ for skills


A career skills credential to be used with diplomas, resumes, etc.

Powered by WorkKeys®

WorkKeys – 14,000 jobs profiled

TM


Bronze Silver Gold

Automotive Body Repairers

Butchers & Meat Cutters

Cooks, Cafeteria Workers

Furniture Finishers

Home Health Aides Housekeeping Supervisors

Janitorial Supervisors

Machine Set-up Operators

Painting & Coating Workers

Refuse Material Collectors

Accounting Clerks

Auto Master Mechanics

Billing Clerks

Licensed Practical Nurses

Machine Operators

Machinists

Medical Laboratory Technicians

Payroll Clerks

Pipe Fitters

Production Inspectors

Computer Programmers

Electricians

Environmental Engineering Technicians

Executives

Instrumentation Technicians

Librarians

Semiconductor Processors

Training & Development Specialists

Vocational Education Teachers

Wholesale & Retail Buyers

TM


TM


TM


WHY? ONE credential, nationally

recognized Survives changes in government Has MEANING for employers

TM


Michigan – Leading the Way


Grand Rapids, Mich. – WIRED project

Goal: 50,000 NCRCs issued by 2012

Buy-in from more than 100 regional employers

Michigan Merit Exam – Making the NCRC available to ALL Michigan students

TM


Surviving ‘The Perfect Storm’


Adopt solutions that work

Work together

Embrace a common language – related to skills

Get business leaders to get behind a skills-based message

Surviving ‘The Perfect Storm’

Michigan WorkKeys Conference®®

Michigan WorkKeys Conference

Questions/Comments?

www.act.org

Documents

® Michigan WorkKeys Conference Dick Ferguson CEO and Chair – ACT, Inc. ® Michigan WorkKeys Conference Nov. 6, 2007