Building the High Road:
Workforce Development in
Rural America
Gary Paul Green
University of Wisconsin
Conference on Strengthening & Building Partnerships for Workforce Development,
Orlando, Florida, March 2-5, 2003.
Road Map
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What are the challenges facing
workforce development efforts in
rural areas?
How do employers, training
institutions and community-based
organizations (CBOs) collaborate
in rural areas?
What are the implications of
different models of collaboration?
Workforce Development
Challenges
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Demand for labor
Supply of labor—especially cost
and breath of training
Information—employer and worker
Spatial mismatch--housing and
discrimination
Childcare, transportation and other
support
Coordination and collaboration
Issues in Rural America

Supply

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Demand

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Low levels of human capital
Lower returns on human capital
investments
Brain drain
Firms late in profit/product cycle
Competition/costs
Institutional
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Lack of intermediaries
External versus internal labor markets
Workforce Development
Networks
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Workforce development -constellation of activities from
orientation to the work world,
recruiting, placement, and
mentoring to follow-up counseling
and crisis intervention.
Networks -- set of relations among
persons, organizations,
communities, or other social units.
Advantages of Networks
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Information
Transition from school to work
Cost
Job turnover
Paths of mobility
Economic development
FIGURE 5.1: Hub-Spoke Employment Training Networks With Focal CBO as
Branches of
Focal CBO
Large Regional
Employer
Community
College
Another
CBO
Focal
CBO
Large
Regional
R&D Partner
City
Government
State
Government
Some National
Demonstration
Program
FIGURE 5.2: Peer-to-Peer Employment Training Networks
CBO
CBO
CBO
Regio
Emplo
CBO
CBO
Community
College
State
Government
City
Government
FIGURE 5.3: Intermediary Employment Training Networks With Intermediarie
State
Government
Employer
Other
Intermediary
Local
Governments
Intermediary
(Community college, public-private authority,
development finance institutions, etc.)
CBO
CBO
Data Sources
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Employer Survey
Community College Survey
Case Studies of Community-Based
Organizations (CBOs)
Employer Survey
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Stratified by establishment size
and industry (mfg. and service)
Response rate=57.5
Total number of complete
interviews=1590
Establishments operating in
nonmetro areas.
Phone survey focusing on training
effort and relationships with
community colleges and CBOs.
Community College
Survey
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Sample drawn from respondents in
employer survey.
Combination mail and phone survey of
closest campus to employer.
246 completed surveys.
Response rate=74%.
Survey focused on training programs,
economic development activities, and
collaboration with employers and other
trainers.
Community/Regional
Organizations
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Six intensive case studies
Regional and functional variation
Focus on organizational structure,
types of training programs offered,
and collaborations with employers
and other trainers.
Community Colleges
Current Mix of On-Site and
Traditional Classroom
Instruction
Classroom
Instruction
57
39.9
On-site Instruction
2.6
Other
0
10
20
30
40
50
60
Percent
Source: National Survey of Rural Community Colleges (2002).
Programs with the Highest
Student Enrollment
30.9
Lib. arts/College transfer
Health care
19.3
18.4
Computer
Business
16.9
8.2
Specific manufacturing
3.4
Other
2.9
General manufacturing
0
5
10
15
20
25
30
35
Percentage
Source: National Survey of Rural Community Colleges (2002).
Custom Training Programs
to Employees
58
Entry-level Workers
Upgrading/Retaining
existing Workers
85
0
20
40
60
80
100
Average Number of Training Programs
Source: National Survey of Rural Community Colleges (2002).
Who Develops Customized
Courses?
Cooperatively
57.7
32.3
Solely by College
7.9
Solely by Employers
0
10
20
30
40
50
60
Percent
Source: National Survey of Rural Community Colleges (2002).
Who Initiates Employer
Consortiums?
We Did
58.6
37.3
Local Employers
18.8
Local Government
14.8
Other
0
10
20
30
40
50
60
Percentage
Source: National Survey of Rural Community Colleges (2002).
Chief Advantages of
Employer Consortiums
Ties and Connections to
Employers
55
47.1
Cost
Ties and Connections to
Workers
44.7
41.7
Expertise/Experience
30.3
Access to Equipment
15.9
Other
0
10
20
30
40
50
60
Percentage
Source: National Survey of Rural Community Colleges (2002).
Most Commonly Offered
Programs with Employer
Consortiums
23.3
Specific Manufacturing
20.9
General Work skills
17.4
Computer
12.2
General Manufacturing
Safety
7
5.8
Other
5.8
Health Care
4.7
HR/Mgmt. Related Training
2.9
Quality Control
0
5
10
15
20
25
Percentage
Source: National Survey of Rural Community Colleges (2002).
Who initiates collaboration with
CBOs?
We Did
68.6
Community Based
Organization
53
Local Employers
23.8
Local Government
23.4
9.8
Other
0
10
20
30
40
50
60
70
Percentage
Source: National Survey of Rural Community Colleges (2002).
Chief Advantages of
Collaboration with CBO
55.8
Ties to Employers
52.8
Ties to Workers
41.6
Expertise/Experience
38
Cost
32.8
Access to Equipment/Space
14.8
Other
0
10
20
30
40
50
60
Percent
Source: National Survey of Rural Community Colleges (2002).
Most Commonly Offered
Programs with CBOs
31.4
General Work Skills
20.2
Computer
11.7
10.1
10.1
7.4
HR and Mgmt. Related Training
Specific Manufacturing
Other
Health Care
3.7
3.2
2.1
General Manufacturing
Safety
Quality Control
0
5
10
15
20
25
30
35
Percentage
Source: National Survey of Rural Community Colleges (2002).
Businesses Participating in
Apprenticeships with Community
Colleges
7.7
100 or more
10.2
50 to 99
18
20 to 49
21.4
7 to 20
25.6
3 to 6
17.1
Less than 3
0
5
10
15
20
25
30
Percentage
Source: National Survey of Rural Community Colleges (2002).
Students Participating in
Apprenticeships with
Community Colleges
4.3
1000 or more
10.2
300 to 999
50 to 299
38.5
10 to 49
35
12
Less than 10
0
10
20
30
40
Percentage
Source: National Survey of Rural Community Colleges (2002).
Employers
Amount of Money Spent
on Job Training in Last 2
Years
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16.7
0-999
1,0009,999
29.5
10,00049,999
31.1
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22.7
50,000+
0
20
Percent
40
The mean
amount spent on
job training is
$50,000 and the
median is
$10,000.
11% of
companies did
not spend any
money on job
training.
Source: National Survey of Employer Training in Rural America (2001).
Firms Size and $ Spent on
Job Training (Last 2 years)
126,217
Large
29,536
Medium
10,764
Small
0
20,000 40,000 60,000 80,000 100,000 120,000 140,000
Average Amount Spent
Source: National Survey of Employer Training in Rural America (2001).
Firm Size and $ Spent on
Training Per Worker
463
Large
592
Medium
1,078
Small
0
200
400
600
800
1,000
1,200
Average Amount Spent Per Worker
Source: National Survey of Employer Training in Rural America (2001).
Types of In-House Formal
Training Available
55
Company Staff
30
Outside Source
17
CBO
1
Union
0
10
20
30
40
50
60
Percent
Source: National Survey of Employer Training in Rural America (2001).
Firm Size and Training by CBO
Large
32
Medium
32
23
Small
0
5
10
15
20
25
30
35
Percent
Source: National Survey of Employer Training in Rural America (2001).
Types of Off-site Training
Available
33
Outside Source
22
Company Staff
17
CBO
1
Union
0
5
10
15
20
25
30
35
Percent
Source: National Survey of Employer Training in Rural America (2001).
Employers Working with
Other Firms to Develop
Training Programs to
Improve Skills
Industry
40
35
Community
Supply/Marketing
Chain
29
0
5
10
15
20
25
30
35
40
Percent
Source: National Survey of Employer Training in Rural America (2001).
Employers Working with
Other Firms to Develop
Training Programs to
Improve Skills
Service
Manufacturing
30
Industry
51
30
Community
40
25
Supply/Marketing
Chain
33
0
10
20
30
40
50
60
Percent
Source: National Survey of Employer Training in Rural America (2001).
Work with CBO in Last 2 Years
Recruiting
Workers
21
Training
Programs
19
Pre-Employment
Training
11
0
5
10
15
20
25
Percent
Source: National Survey of Employer Training in Rural America (2001).
Work with CBO by Industry
Service
Manufacturing
16
Recruiting
Workers
27
14
Training
Programs
24
8
Pre-Employment
Training
14
0
5
10
15
20
25
30
Percent
Source: National Survey of Employer Training in Rural America (2001).
Firm Size and Work with CBO
Small
Medium
Large
32
Recruiting
Workers
18
12
28
Training
Programs
17
11
15
Pre-Employment
Training
11
7
0
5
10
15
20
25
30
35
Percent
Source: National Survey of Employer Training in Rural America (2001).
School-to-Work Programs
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Cooperative education
Youth apprenticeship
School-based enterprise
Tech prep
Career academies
School-to-work apprenticeship
Employer Involvement in
Work-Based Learning
42
School-To-Work
32
Apprenticeship
0
10
20
30
40
50
Percent
Source: National Survey of Employer Training in Rural America (2001).
Employer Involvement in
Work-Based Learning by
Industry
Service
Manufacturing
37
School-To-Work
47
28
Apprenticeship
37
0
10
20
30
40
50
Percent
Source: National Survey of Employer Training in Rural America (2001).
Firm Size and WorkBased Learning
Small
Medium
Large
55
School-ToWork
42
27
41
Apprenticeship
33
21
0
10
20
30
40
50
60
Percent
Source: National Survey of Employer Training in Rural America (2001).
Community-Based
Organizations
Rural Opportunities, Inc.
Mid-Delta Workforce Alliance
Portage County Business
Council
Findings
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Collaboration between community
colleges and CBOs increases the
breadth of training offered; collaboration
with employer consortiums narrows
training.
Cost and turnover limit employer
provided training effort; participation with
consortiums increases training effort by
employers.
Different workforce development models
in rural areas: sole providers; hub-spoke
networks, and employer-led/provided
programs.
Keys to Success

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Local labor market conditions
Stock of human capital
Employer involvement
Organizational capacity
Collaborative management
Local government commitment
Partnerships
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Partnerships take time to
develop—better to consider
existing programs;
Proximity and communication
matter (Advantages of one-stop job
centers).
Partnerships are fragile.
Partnerships inevitably involve
conflict, especially turf battles..