Applicant Tracking System (ATS): A software application that manages employee recruitment activities, including job postings, resume application screening and warehousing, interview management, and hiring decisions.
Back Mapping: A TPM process that helps employer collaboratives identify the major sources of qualified talent by analyzing performance and applicant tracking data and identifying direct (Tier 1) and indirect (Tiers 2 and higher) sources that provided the education and training for the most critical competencies and credentials for target positions.
Baseline Cost: The total cost incurred by employers measured in dollars relative to their starting position prior to taking any kind of action. An example of a baseline cost is the cost of a hire prior to engaging in a talent supply chain solution.
Benefits Achieved: The value derived by employers over and above the cost of implementing a solution, which can be measured, for example, in dollars, such as reduced cost in filling a position, or in time, such as a shorter onboarding process.
Bottom-Line Performance: The talent-related performance measures that have the most direct and highest impact on the overall profitability and productivity of the business.
Business Function: The type of business or economic activity that is critical in making products and/or providing services at one or more establishments. It may or may not be defined as a primary activity for purposes of North American Industry Classification System (NAICS) coding of business establishments, and it may be carried out by one or more occupations. Examples include logistics planning, warehousing, precision machining, engineering, and nursing.
Capture Rate: The percentage of talent coming from the talent pipeline (identified providers) that is hired and retained by employers from the employer collaborative or employers within the same industry or geographic area over a designated time period.
Competency: What someone should know or be able to do as communicated through tasks performed, tools and technologies used, and knowledge, skills, and abilities, including workplace or essential skills.
Continuous Improvement: A structured process to improve a process over time. Continuous improvement processes in the business world include Lean Six Sigma and the five-step DMAIC (define, measure, analyze, improve, and control) process, which are used to optimize performance and eliminate waste.
Continuous Improvement Team: A team established by the employer collaborative to carry out an improvement project and report results for a specific period of time based on the agreed focus and goals.
Cost of Engaging in a Collaborative: The total cost in terms of time spent and resources committed when working as a member of an employer collaborative. This calculation is needed to compare total cost versus total benefit to calculate an employer’s return on investment (ROI).
Credentials: Documents attesting to qualifications and assuring the attainment of competencies, usually in the form of education degrees and certificates, industry and professional certifications, badges, and licenses.
Demand Driven: A focus on skilled jobs that are in demand, based on labor market information.
Demand Planning: The process of developing annual or short-term projections of job openings based on a set of assumptions and time period chosen by an employer collaborative.
DMAIC: A widely accepted data-driven business improvement process that includes five major steps: (1) define, (2) measure, (3) analyze, (4) improve, and (5) control.
Employability Skills: Essential workplace skills needed to be successful in any job, including what are commonly referred to as “soft skills,” such as problem-solving, critical thinking, communication, and teamwork.
Employer Collaborative: A partnership organized by employers, for employers to collectively address shared workforce needs. The collaborative is bolstered by management support provided through a new or existing employer-led organization of the collaborative members’ choice. Employer collaboratives are different from most public-private partnerships in that they are organized and managed to maximize responsiveness to employers as end-customers and to deliver an employer return on investment.
Employer Return on Investment: A measure that calculates the returns that employers receive from investments, usually expressed as a ratio of total dollar benefits compared with total dollar costs.
End-Customer: The leadership role an employer plays in a talent supply chain. As the end-use customer of talent, the employer determines the hiring requirements and makes the decision on whether to hire talent based on these requirements.
Establishment: A single physical location, though administratively distinct operations at a single location may be treated as distinct establishments. Examples include industrial machinery manufacturing, computer systems design and related services, and general medical and surgical hospitals.
Feeder Schools: Education or workforce providers that are known to transition individuals receiving education or services to another provider. For example, in TPM, Tier 2 providers transition students to Tier 1 providers.
Full Productivity: The point at which an individual has reached expected levels of productivity in a destination job. In TPM, time to full productivity can be tracked as a performance measure to ensure individuals are managing transitions and being effectively onboarded into employment with minimal time lost.
Hiring Requirements: The competencies, credentials, experience, and other characteristics (e.g., ability to pass a drug test) associated with one or more jobs related to a business function wanted by employers. Can be preferred or required.
Host Organization: The entity that “houses” and provides the staff and management support for one or more employer collaboratives. Host organizations are different from traditional intermediaries in that they are business member organizations (e.g., chambers of commerce, industry sector-based associations) or economic development organizations dedicated to business growth and competitiveness and are chosen by the employer members to manage and staff employer collaboratives.
Human Resource Information System (HRIS): An IT system that captures all aspects of human resources data in a centralized place and supports employee recruitment, hiring, performance, and benefits management.
Incentives: Financial and nonfinancial rewards provided to recognize results and to support continuous improvement. Financial incentives include anything that has a monetary value, including equipment donations, work-based learning opportunities, and access to staff. Nonfinancial incentives include designations such as “preferred” provider status that can be marketed by a program or institution for recruitment purposes.
Industry: The type of “primary” business or economic activity carried out in a business establishment as typically defined under the North American Industry Classification System (NAICS). Examples include manufacturing, health care, and information technology.
Knowledge: What a person should understand in terms of facts, theories, principles, concepts, and procedures related to general or specific domains, including disciplines and professions.
Labor Market Information (LMI): Quantitative or qualitative data related to employment and workforce trends in national, state, and regional/local labor markets.
Leading and Lagging Measures: Leading measures are short-term, intermediate measures that address actions that are major determinants and predictors of longer-term, bottom-line measures, otherwise known as lagging measures.
Leakage Rate: The percentage of talent coming from the talent pipeline (identified providers) that is not hired by employers from the employer collaborative or employers within the same industry or geographic area over a designated time period.
Lean Six Sigma: A business methodology used to identify and eliminate waste and optimize performance.
Occupation: The type of job or job family that is typically used to classify workers into occupational categories based on the Standard Occupational Classification system. Employers use a variety of job titles that can be linked to one or more occupations. Examples include registered nurse, machinist, and engineer.
Performance Measures: Quantitative indicators of outcomes that are expressed in terms of rates, ratios, or percentages addressing one or more critical variables, all of which contribute to improved business performance and competitiveness:
- Quality refers to whether individuals have the right mix of competencies to successfully perform work for critical business functions and positions.
- Time addresses maximizing efficiency in value-adding activities as well as reducing time spent in non-value-adding activities and wait time between activities (e.g., employee trainings).
- Cost refers to the balancing of dollars spent in producing quality outcomes, including the reduction of opportunity costs (e.g., reducing forgone earnings).
Performance Dashboard: A visualization tool used to communicate the major performance indicators that have been prioritized to tell employers and their stakeholders how effective partnerships have been in managing key transition points and achieving intended outcomes.
Performance Scorecard: A set of metrics used to identify and improve performance within and across a talent supply chain and to manage effective transitions.
Predictive Analytics: The process of analyzing current data to make predictions about the future.
Preferred Providers: Providers of talent sourcing and development services—including education and training providers and staffing organizations—that are recognized by an employer collaborative based on their ability to meet employer requirements, such as ability and proven track record for supplying qualified talent for jobs.
Primary Labor Market Information (Primary LMI): Labor market information provided directly by employers and other participants in labor markets (e.g., workers). TPM uses primary labor market information from employers in a collaborative regarding their level of workforce demand by establishment.
Provider: The role education and workforce partners play in providing education and training services designed to deliver talent for employer end-customers in a talent supply chain.
Provider Roles: The types of services provided by talent providers within the employer collaborative value stream, from career awareness and exploration to employee advancement and retention. Partners can play one or more roles in one or more tiers, although most play a predominate role in a single tier.
Provider Tiers: The position of partners within talent pipelines in relationship to the employer end-customer. Tier 1 partners provide talent directly to employers (e.g., colleges, staffing agencies), and Tier 2 and higher provide talent to lower-tier partners (e.g., high schools, vocational schools).
Real-Time Labor Market Information (Real-Time LMI): Aggregated job openings and skills data generated by using web technologies to capture and analyze job postings from job boards and websites. Real-time LMI also includes “supply side” analysis using resumes and job board worker profiles.
Root Cause: Those conditions or factors that directly cause a performance problem.
Root Cause Analysis: A process to identify factors that directly cause a performance problem and can be addressed in a continuous improvement process.
Secondary Labor Market Information (Secondary LMI): Information and analysis about the level of workforce demand by industry generated through reviewing labor market information reports (e.g., state occupational projections) or through aggregating job posting data (e.g., real-time LMI).
Shared Pain Point: One or more business functions and occupations within an industry that represent a common area of need across employers that have come together to form an employer collaborative; shared pain point should provide the starting point in defining the focus of an employer collaborative.
Shared Value: The value that is created for education and workforce systems and the students and workers they serve—along with society in general—when employers play an expanded leadership role as end-customers of talent supply chains.
Skills: Ability to apply knowledge and perform work tasks.
State Occupational Projections: State government projections of short-term (two-year) and long-term (10-year) job openings resulting from new jobs and replacement of existing jobs. State occupational projections are based on government-defined occupational classifications and are produced at the state and sub-state levels.
Survey: Employer collaboratives conduct two types of surveys:
1) Needs Assessment Surveys address employer projections of job openings through demand planning (as presented here in Strategy 2) and competency, credentialing, and other hiring requirements (Strategy 3).
2) Talent Flow Analysis Surveys back-map the sources of talent from providers and provide the basis for linkages with other data for more comprehensive talent flow analysis (Strategy 4).
Talent: Individuals who have the skills and credentials that drive competitive advantage within a company and industry.
Talent Flow Analysis: A TPM process for helping employer collaboratives work with government agencies and other data providers to analyze talent in-flows and out-flows (includes all existing and potential sources of talent where data are available) to use to improve their hiring practices.
Talent In-Flows: The number and characteristics of people hired by an employer, an employer collaborative, employers within the same industry or industry sector of the collaborative, and/or within the major geographic area defined by the employer collaborative for recruiting talent.
Talent Out-Flows: The number and characteristics of people previously hired but no longer working for an employer, an employer collaborative, employers within the same industry or industry sector of the collaborative, and/or within the major geographic area defined by the employer collaborative for recruiting talent.
Talent Supply Chain: An end-to-end talent management process made up of employers as “end-customers” and education and workforce partners as “providers,” with each handoff adding value in the development of talent.
Transition Point: The moment when an individual moves from one program or service to the next, which can occur within or between providers. For example, in TPM, transition points occur when someone moves from a Tier 2 provider to a Tier 1 provider.
Value Proposition: The unique value that is created by employers working together through a collaborative to advance their interest and accomplish their goals, including achieving a return on investment.
Value Stream: The process that a product or service goes through from beginning to end, with each step adding incremental value until it reaches the end-customer.
Value Stream Map: A visual tool used to show the major activities and roles in sequence that make up a value stream.
Work Tasks: Work performed in carrying out job roles, functions, and responsibilities.