The new economy competes on talent, yet the current approach to financing talent development was built for a different era and economy. In this dynamic economy, jobs — and the skills required to fill those jobs — are constantly evolving. We need an approach that can evolve with the economy, and the changing needs of employers. This groundbreaking new initiative, Talent Finance, explores private sector-led solutions and innovations in finance to better invest in people.
Consider that American students have been saddled with more than $1.5 trillion of debt, and in 2019, businesses spent more than $80 billion on training in an ever-changing workforce, yet these efforts have not produced the desired outcomes for workers or employers. To fully address employer needs and emerging risks of the labor market, like changes in employment and frequent fluctuations in income, we need an approach that accounts for student preparation for those entering the workforce and re-entry of the unemployed.
To successfully build the workforce of the future, we must constantly innovate and invest in the economy's most important resource — human capital. Talent Finance will develop new ways for employers and the financial services community to collaborate and identify new private sector tools for financing talent, develop new strategies for managing risk in the labor market, and manage how to pay for workers to get and constantly refine the skills they need. This initiative seeks to do more than simply advance a set of recommendations, it seeks to build a new consensus, and further — build a movement.
Talent Finance is made possible by funding from JPMorgan Chase, MSFT Philanthropies, Google.org, Cognizant U.S. Foundation, and Schmidt Futures.
Talent Finance: A New Consensus and Return-to-Investment
In the 21st century economy, jobs and necessary skills are constantly shifting, but the preparation of students and workers is based on a different era and economy. The Chamber Foundation has launched this initiative to reshape how we invest in talent and fill the skills gap.
The Talent Finance framework is outlined in a landmark white paper, developed in partnership with the Federal Reserve Bank of Atlanta, Society for Human Resource Management (SHRM), Greater Houston Partnership, and WorkingNation, which includes recommendations for how to design and implement real-world solutions to the current workforce challenges.
The Talent Finance Innovation Network (TFIN) is a community group dedicated to putting the Talent Finance guiding principles and framework into practice.