Native American workforce credential pilot

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2013/TEGL_5_13_Acc.pdf

CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY                               ETA Credential -Section 166
                    SYSTEM                                                    CORRESPONDENCE SYMBOL
           U.S. DEPARTMENT OF LABOR                                           OWI/DINAP
              Washington, D.C. 20210
                                                                              DATE
                                                                              September 4, 2013

ADVISORY:             TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 5-13

TO:                    ALL SECTION 166 INDIAN AND NATIVE AMERICAN GRANTEES

FROM:                  GERRI FIALA /s/ for ERIC M. SELEZNOW
                       Acting Assistant Secretary

SUBJECT:              Pilot Study on Credential, Degree and Certificate Attainment by Participants
                      of the Native American, Section 166, Workforce Investment Act (WIA) Adult
                      Program

1. Purpose. To notify WIA Section 166 Indian and Native American (INA) grantees of a pilot
   study on credentials 1 received by participants of the Native American Employment and
   Training program and to provide guidance on how to define a credential. The pilot study will
   be for one year, from July 1, 2013, through June 30, 2014. All grantees will be included in
   the pilot study, however, no additional information will be required from grantees as the data
   will be obtained from the Standard Participant Information Record (SPIR) file that grantees
   already submit every quarter. Upon completion of the study, the Employment and Training
   Administration (ETA) – in consultation with the Secretary of Labor’s (Secretary) Native
   American Employment and Training Council (NAETC) – will establish a “credential goal”
   for the Native American, Section 166 program. The purpose of the credential goal will be to
   promote increases in training that lead to the attainment of industry recognized credentials
   and employment. The credential goal will be in addition to the existing three performance
   measures for the Native American program (entered employment, employment retention and
   average earnings).

2. References.

       •   Section 166 of WIA located at: http://www.doleta.gov/dinap/cfml/wiapage.cfm;
       •   Regulations implementing the WIA Section 166 Indian and Native American Program
           located at: http://www.doleta.gov/dinap/cfml/wiapage.cfm;
       •   TEGL 15-10, Increasing Credential, Degree, and Certificate Attainment by Participants of
           the Public Workforce System, located at:
           http://wdr.doleta.gov/directives/attach/TEGL15-10acc.pdf;

1
  For the purposes of this TEGL, “credential” is an umbrella term that encompasses educational certificates or
degrees, occupational licenses, Registered Apprenticeship, and industry-recognized certifications. A definition is
provided later in this document.


    RESCISSIONS                                                       EXPIRATION DATE
    None                                                              Continuing

            •   TEN 49-11, Reporting on Attainment of Industry Recognized Credentials, located at:
                http://wdr.doleta.gov/directives/attach/TEN/TEN_49_11.pdf; and
            •   Career Pathways Initiative: https://learnwork.workforce3one.org/.

3. Background. President Barack Obama has promoted a vision to have the United States lead
   the world in the percentage of Americans with postsecondary degrees and industry-
   recognized credentials. To help advance this goal, ETA has identified the attainment of
   credentials by participants of the public workforce system as a High Priority Performance
   Goal and affirmed this commitment in TEN 49-11.

      According to recent statistics, 23.4 percent of American Indians and Alaska Natives ages 25
      and over did not complete high school 2 compared to 14.9 percent of the general U.S.
      population. 3 Only 13.1 percent of American Indians and Alaska Natives have at least a
      bachelor’s degree, 4 which is less than half the rate of the general U.S. population. 5

      Educational attainment varies by place of residence, with particular subpopulations
      demonstrating even lower levels of educational attainment than the broader Native American
      population. For example, American Indians living in American Indian Areas 6 and Alaska
      Natives living in Alaska Native Statistical Village Areas were more likely to have dropped
      out of high school and less likely to have completed some college or additional education
      when compared to their counterparts living outside those areas. 7
      Native Hawaiians show fewer disparities in educational attainment than American Indians
      and Alaska Natives. They have a high school graduation rate of 85.9 percent, which is
      comparable to that of the total population. 8 However, their achievement levels lag behind
      that of the general U.S. population at higher education levels, with only 14.4 percent
      completing a bachelor’s degree, compared to 29.3 percent of whites. 9

      Given the well-known positive relationship between earnings and level of education, the
      economic value of obtaining a credential is clear. For example, recent government statistics
      show that those whose highest level of education is a high school diploma or GED, earned a

2
 Table DP02, Selected Social Characteristics in the United States, U.S. Census Bureau, 2006-2010 American
Community Survey American Indian and Alaska Native Tables.
3
    Table S1501, Educational Attainment, 2006 -2010 American Community Survey 5-Year Estimates.
4
 Table DP02, Selected Social Characteristics in the United States, U.S. Census Bureau, 2006-2010 American
Community Survey American Indian and Alaska Native Tables.
5
    Table S1501, Educational Attainment, 2006 -2010 American Community Survey 5-Year Estimates.
6
  Includes Federal reservations and/or off reservation trust lands, Oklahoma tribal statistic areas, tribal designated
statistical areas, state reservations, and state designated American Indian statistical areas.
7
 Table DP02, Selected Social Characteristics in the United States, U.S. Census Bureau, 2006-2010 American
Community Survey.
8
    Ibid.
9
 Table DP02, Selected Social Characteristics in the United States, U.S. Census Bureau, 2006-2010 American
Community Survey Selected Population Tables.

                                                           -2-

     median annual income of $35,035, in comparison to the $42,419 earned by those with an
     Associate’s Degree and $55,865 earned by those with a Bachelor’s Degree. 10 Even
     certificates that can be earned in less than two years can have strong payoffs in the labor
     market, with one study showing a 20 percent earnings increase after workers obtained an
     occupational certificate through one year of postsecondary study. 11 Another study showed
     that participants completing a Registered Apprenticeship program earned an average of
     $240,037 more over the course of their career than similar non-apprentices. 12 Moreover,
     projections are that nearly half of all new jobs created from 2008 to 2018 will require a
     postsecondary vocational award or degree, 13 and that the United States will not have enough
     credentialed workers to meet employers’ demands in the coming decade. 14

     In addition, the NAETC and Section 166 grantee community recommended to the former
     Secretary of Labor the need and importance of providing an enhanced mechanism for INA
     grantees to report on educational attainments, which the community asserts is a significant
     investment of its training dollars. The NAETC believes it is important for the workforce
     system and key stakeholders to acknowledge this investment. The credential goal will
     recognize grantees for the substantial amount of training services they provide, which is not
     reflected in the current employment related measures.

     The study will: (a) identify any challenges that grantees currently have in recording and
     reporting the attainment of credentials in the current Bear Tracks management information
     system; (b) recommend changes to Bear Tracks to allow more accurate recording and
     reporting of credentials; and (c) provide preliminary estimates of the number (and
     percentage) of individuals who attain a credential at both the grantee and national level. ETA
     will conduct webinars to provide training on how to improve such attainments.

4. Definition of a Credential. Within the context of workforce development generally, the term
   credential refers to an attestation of qualification or competence issued to an individual by a third
   party (such as an educational institution or an industry or occupational certifying organization)
   with the relevant authority or competence to issue such a credential. A credential is awarded in
   recognition of an individual’s attainment of measurable technical or occupational skills
   necessary to obtain employment or advance within an occupation. These technical or


10
  Source: U.S. Census Bureau, Current Population Survey, 2011 Annual Social and Economic Supplement, PINC-

03. Educational Attainment--People 25 Years Old and Over, by Total Money Earnings in 2010, Work Experience in
2010, Age, Race, Hispanic Origin, and Sex.
11
  Kazis, Richard. Community Colleges and Low Income Populations: A Background Paper. Jobs for the Future,
Boston, 2002, p. 15.
12
  Mathematica Policy Research. July 25, 2012, An Effectiveness Assessment and Cost-Benefit Analysis of
Registered Apprenticeship in 10 States.
13
  Lacey, T. Alan and Benjamin Wright. 2010. Employment Outlook, 2008-2018: Occupational Employment
Projections to 2018. Bureau of Labor Statistics. Available at: http://www.bls.gov/opub/mlr/2009/11/art5full.pdf.
14
   Prince, Heath and Vickie Choitz. 2012. The Credential Differential: The Public Return to Increasing
Postsecondary Credential Attainment. Center for Law and Social Policy. Available at:
http://www.clasp.org/admin/site/publications/files/Full-Paper-The-Credential-Differential.pdf

                                                        -3-

occupational skills are generally based on standards developed or endorsed by employers.
Certificates awarded by Native American grantees or by state and local workforce investment
boards are not included in this definition, nor are work readiness certificates because neither
of them document “measurable technical or occupational skills necessary to gain
employment or advance within an occupation.” See TEGL 15-10 (December 15, 2010),
page 6.
Examples of credentials include:
•   Educational Diplomas (such as high school diplomas or State recognized equivalent),
    GEDs, and Certificates (typically for one academic year or less of study);
•   Educational Degrees, such as an associate’s (2-year) or bachelor’s (4-year) degree or
    higher degree;
•   Registered Apprenticeship Certificate;
•   Occupational Licenses (typically, but not always, awarded by state government agencies;
    gaming licenses for occupations in tribal casinos would also fall in this category);
•   Industry-recognized or professional association certifications, also known as personnel
    certifications; and
•   Other certificates of skills completion.

A variety of different public and private entities issue credentials. Below is a list of types of
organizations and institutions that award industry-recognized credentials.

•   A state educational agency or a state agency responsible for administering vocational and
    technical education within a state.

•   An institution of higher education described in Section 102 of the Higher Education Act
    (20 USC 1002) that is qualified to participate in the student financial assistance programs
    authorized by Title IV of that Act. This includes community colleges, proprietary
    schools, and all other institutions of higher education that are eligible to participate in
    Federal student financial aid programs.

•   An institution of higher education which is formally controlled, or has been formally
    sanctioned or chartered, by the governing body of an Indian tribe or tribes - also known
    as tribal colleges.

•   A professional, industry, or employer organization (e.g., National Institute for
    Automotive Service Excellence certification, or a National Institute for Metalworking
    Skills, Inc., Machining Level I credential) or a product manufacturer or developer (e.g.,
    Microsoft Certified Database Administrator, Certified Novell Engineer, or a Sun
    Certified Java Programmer) using a valid and reliable assessment of an individual’s
    knowledge, skills and abilities.

•   ETA’s Office of Apprenticeship or a State Apprenticeship Agency.


                                               -4-

   •   A public regulatory agency, upon an individual’s fulfillment of educational, work
       experience, or skill requirements that are legally necessary for an individual to use an
       occupational or professional title or to practice an occupation or profession (e.g., Federal
       Aviation Administration aviation mechanic license, or a state licensed asbestos
       inspector).

   •   A program that has been approved by the Department of Veterans Affairs to offer
       education benefits to veterans and other eligible persons.

   •   Job Corps centers that issue certificates.

   For further information about the various types of credentials, consult TEGL 15-10.

5. Basic Criteria for Identifying a Credential. There are many types of credentials awarded
   by various organizations, educational institutions and employers, and most – if not all -
   industry sectors have accreditations that are specific to their industries. Therefore, it is not
   possible to provide a complete listing of all allowable credentials that a WIA participant may
   receive. However, for a participant to be deemed to have attained a credential, an attestation
   of the individual’s qualification or competence must be issued by a credentialing authority
   (such as an educational institution, state agency, or industry or occupational certifying
   organization) in recognition of an individual’s attainment of measurable technical or
   occupational skills developed or endorsed by employers.

6. Tools for Identifying Credentials. Listed below are useful on-line tools for identifying a
   credential.

   o The CareerOneStop Web site provides a “Certification Finder” tool that allows users to
     search for various certifications. The certification finder is located at:
     http://www.careeronestop.org/EducationTraining/Find/Certification.aspx. If a particular
     certification is not found on the certification finder it can still be counted as a certification
     as long as it meets the basic criteria indicated in four through five above.
   o Two-year colleges offer short-term training programs. These programs can be one
     semester long or up to two years in length. After completing a program, a certificate of
     completion generally is issued. The CareerOneStop Web site provides a “Short Term
     Training Finder” located at:
     http://www.careeronestop.org/EducationTraining/Find/Short-TermTraining.aspx.
   o The Department of Education provides a search tool to find accredited institutions. The
     Web site is located at: http://ope.ed.gov/accreditation/Search.aspx.

7. Calculating the Credential Rate. For purposes of the pilot, ETA will calculate the credential
   rate by dividing the number of exiters who attain a credential by all program exiters (see
   illustration below).


                                                 -5-

                       Illustration of the Credential Rate Calculation


                           Number of exiters that attained a credential

                                     Total number of exiters


Note that the base for this rate is different than the Secretary’s High Priority Performance
Goal for State workforce agencies. Whereas State workforce agencies only include exiters
who participated in a training activity in the base, the credential goal for the Native
American, 166 program will include all exiters. Calculating the rate in this way serves to
acknowledge the value of both increasing the number of individuals placed in training and
increasing the number of individuals who obtain a credential from among those who train.
Specifically, under this methodology a grantee could achieve exceptionally high performance
on the credential rate only if it advanced two goals, consistent with the ETA’s High Priority
Performance Goals:

    1. Place appreciable numbers of participants into training; and
    2. Work to ensure that high proportions of trainees attain a credential.
Using all exiters as the base of the rate ensures that a credential rate could be measured for all
or most INA grantees.

An alternative of using only trainees in the base of the measure was considered. However,
this alternative suffers from three deficiencies:

   •   It does not explicitly advance ETA’s goal of encouraging grantees to place
       appreciable numbers of participants into training.
   •   It would permit grantees to achieve high credential attainment rates even if very few
       of the grantee’s participants received a credential. If the base of the rate counted
       only trainees, a grantee could place very few of its participants into training and still
       achieve a high credential attainment rate; however, using the alternative
       methodology, the grantee’s credential rate could approach 100 percent, even if very
       few credentials were awarded.
   •   The alternative methodology would cause the credential rate to be volatile or
       undefined for many INA grantees that currently place very few participants into
       training. This is because small sample sizes are less reliable and subject to more
       volatility than large sample sizes. As an example, 38 percent of INA grantees placed
       five or fewer exiters into training based on data from the program’s SPIR on
       participants who exited the program from July 1, 2011, to June 30, 2012. For these
       grantees, the alternative specification of the credential attainment rate could be highly
       volatile, changing from year to year based on the experiences of just a few of the
       grantee’s trainees.

                                             -6-

     In light of the advantages of defining the credential rate using all exiters in the base, and the
     strong disadvantages of defining this rate using only trainees in the base, ETA will define the
     credential rate using all exiters in the base of the rate for this pilot.

8. Expected Outcomes of the Pilot. Using the most recent SPIR data, staff in ETA’s Division
   of Indian and Native American Programs (DINAP) calculated the credential rate for Program
   Year (PY) 2010 and PY 2011 as 6.2 percent and 6.4 percent, respectively. While these
   percentages seem low, it is important to remember that: (a) the rate is calculated based on all
   exiters, including those exiters that were not placed in an activity that would result in a
   credential (e.g. work experience participants) and had no interest in attaining a credential,
   and that (b) the eligibility requirements of the Native American employment and training
   program are designed for the “hard-to-serve” individuals and therefore, it is a significant
   achievement when participants of the program attain a credential. Furthermore, DINAP’s
   staff are concerned that the attainment of credentials as it is currently being reported in the
   SPIR may understate the true incidence of credential attainment. The pilot study is designed
   to identify if and why underreporting occurs and to recommend modifications to Bear Tracks
   that will promote more accurate reporting.

     Upon completion of the pilot study, the DINAP – in consultation with the Secretary’s
     NAETC– will state what the credential goal for the program will be. An example is provided
     below of figures showing an increase from a 6.4 percent credential attainment rate (which
     was the actual credential rate for PY 2011) to a hypothetical goal of 10 percent.


                                                 Entered 15 Attained          % Entered      % Attained
              GRANT_NUMBER            Exiters
                                                  Training Credential          Training      Credential
               PY 2011 Actual          8,299          3,126       531             37.7%            6.4%
                 10% Goal              8,299          3,500       830             42.2%           10.0%


9. Collecting Credential Information in the Bear Tracks Software. As indicated above, the
   credential rate would be calculated by dividing the number of exiters who attain a credential
   at the time of program exit by all program exiters. This information is calculated in Bear
   Tracks as follows:

            1.   Numerator: Of the exiters in Bear Tracks for the performance period, those
              individuals that have attained a credential as indicated in the “Attainment of
              Degree / Certificate” pull down menu on the “Outcomes / Follow-Up” tab.
            2.   Denominator: All exiters for the performance period in Bear Tracks.


15
  Individuals counted as Entered Training included training activities that typically do not lead to a credential
attainment such as on-the-job training and job readiness training. However when the credential rate is fully
implemented, the Bear Tracks software will be revised to only include training that will lead to a credential such as
occupational skills training or adult basic education training.

                                                         -7-

   The current version of the Bear Tracks software can calculate the credential rate as defined
   above. However, during the pilot period, the DINAP – in consultation with the Advisory
   Council’s Information Technology and Reporting workgroup – will be working to revise the
   Bear Tracks software to improve the accuracy of training-related data and allow grantees to
   add a training credential while participants are still active.

10. Action Required. WIA Section 166 INA grantees are encouraged to engage in the pilot
    study by participating in upcoming webinars on the credential attainment goal. The DINAP
    provided training on the credential goal at the 34th National Indian and Native American
    Employment and Training Conference in Acme, Michigan, April 28 – May 3, 2013, and will
    provide continuous training throughout PY 2013.

11. Inquiries. Please direct questions to your designated Federal Project Officer provided
    below.

   Andrea Brown (East)               (202) 693-3736        Duane Hall (Midwest) (972) 850-4637
   Craig Lewis (Midwest)             (202) 693-3384        Guy Suetopka (West) (415) 625-7988
   Dawn Anderson (Midwest)           (202) 693-3745


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