A key barrier to Workforce Investment Act (WIA) reauthorization has been the workforce system's lack of ability to report a collective cost-benefit analysis of its programs and services. The National Association of Workforce Boards (NAWB) conducted a 2011 survey in which the top challenge reported by WIBs across the country was demonstrating cost-benefit metrics to funders and elected officials (55%). Only 58 percent of Workforce Investment Boards (WIBs) actually perform cost-benefit analyses on WIA and/or non-WIA funded activities. In order to position the workforce system for continued funding, WIBs need to produce a collective, replicable analysis on what WIA activities generate economic benefits, and the costs of delivering these services, so that legislators can make informed funding decisions. This type of model moves beyond just reporting WIA metrics.
In March 2012, the NAWB, Full Capacity Marketing, Inc. (FCM) and Economic Modeling Specialists designed a national workforce scorecard model that reports the benefits and costs of WIA programs, along with the unique economic impacts of WIB operations on regional income and jobs. The development of the WIA Scorecard was piloted with the South Central Michigan Works! WIB (SCMW) with several goals in mind:
- an understanding of the types of data local workforce boards need to collect, or are willing to collect; and
- a WIA Scorecard that contains the benefits and costs of WIA programs that was vetted by NAWB’s chosen team of respected economists.
Part II of the project has just been released - a Business Services Scorecard assessing the regional economic impacts of the WIB's services to employers. FCM's President/CEO, Celina Shands Gradijan said, "Demand-side data elements pertaining to employer outcomes are more difficult to collect within a typical workforce investment system structure. Obtaining this data requires a business services approach that is highly organized and integrated among the WIB, its One-stop partners, economic development, education and business partners."
FCM evaluated SCMW's business services model to examine core elements of data collection and the ability to build relationships with employers. "In this model, the business services team literally has to engage businesses in the data collection process," said Gradijan. "This means that teams have to have a broad-based approach to serving businesses that moves beyond just placing a job order."
Based on the Business Services Analysis, FCM provided and implemented a set of recommendations to fine-tune the SCMW's business services model to support demand-side data collection, and developed a communications framework to showcase the results to customers, funders and partners of the system. This framework includes a two-page fact sheet about "why workforce investment works", along with tailored communication strategies to deploy the data through websites, social media tools and eMarketing contacts.
To download the reports and model, click here. For more information on developing a broad-based business services model, contact Celina Shands Gradijan at celina@fullcapacitymarketing.com
For information on Scorecard development, contact EMSI at www.economicmodeling.com.

