Understanding Customer Opinions About State Provided Labor Market Services

Implications from Previously Conducted Survey and Focus Group Studies

December 1995

Danna L. Moore, Ph.D
Principal Investigator

Social and Economic Sciences Research Center
Washington State University
Pullman, WA 99164-4014
509-335-1511

For

One Stop Career Center System Planning Project
One Stop Career Center System Steering Committee

and

State of Washington, Employment Security Department

John Lederer, Project Director

Technical Report #95-76 (STP1)
of the Social and Economic Sciences Research Center


Executive Summary

Purpose of the Study

The State of Washington is a recipient of a One Stop Career Center System planning grant. Under the auspices of the U.S. Department of Labor, monies were made available to the states for funding the planning, development, and implementation of One-Stop Career Centers as envisioned in the proposed Reemployment Act of 1994. The One Stop Career System is described by the U.S. Department of Labor as the organizing vehicle for transforming the current fragmented array of employment and training programs into a coordinated information and service delivery system for individuals seeking first, new and better jobs and for employers seeking to hire new workers.

The purpose of this grant for Washington is developing a state plan to describe the design, governance, and implementation strategy the state would follow to make the delivery of employment and training and other workforce development services easier to access and more customer focused (One Stop Career Center Steering Committee, 1995). One of the planning process tasks designated under this grant was review of results from previously conducted customer surveys and focus groups. Most of these surveys were conducted by various state agencies such as the Employment Security Department (ES), Department of Social and Health Services, Private Industry Councils, the State Board for Community and Technical colleges, the Workforce Training and Education Coordinating Board and other groups to evaluate areas of improvement in job services. Employment Security and the One Stop Career Center System Steering Committee deemed this task as an important overview for determining the current level of customer satisfaction for various customer groups and to determine ways to further increase customer satisfaction in the context of planning for one stop career development and integrated service delivery.

What Was Learned About Employers

Use and Satisfaction. Businesses are able to evaluate and indicate their level of satisfaction with Employment Security's primary service of job assistance. More than three of five business (greater than 60%) are satisfied with this key labor service provided by Employment Security (ES). This is also the service area with the highest level of dissatisfaction. There also exists a high level of unawareness of other ES services among employers and this unawareness is greater than the level of dissatisfaction that was expressed. Services areas businesses report they are more unaware (as compared to dissatisfied) include: labor market information, assistance with employment regulation, job training information, targeted job tax credit eligibility, etc. Employers who were identified as users or customers through the ES database (Washington State University, 1995) were generally more satisfied with job assistance than businesses identified through a random sample of all businesses in Washington. Employment Security users and customers were also more often associated with specific industrial sectors. Employers who are ES customers are significantly different than non-customers, the EDC Seattle-King county survey found ES customers seek access to all types of employees whereas non-customers value verifies references and verifies training and education. The survey and focus group findings all suggest, ES provides labor services better to some types of businesses in some industries. The results suggest employers use ES services when seeking workers for occupations with lower skill requirements. Businesses in industries with a large demand for unskilled, lesser skilled, or many types of workers seem to be better served and more satisfied with ES services than businesses in industries which require workers with more and broader based skills.

Businesses from all industry sectors rely on many sources to locate job applicants. For occupations or job positions requiring higher level skills or there is perhaps a larger cost associated with choosing an unqualified applicant, businesses are more selective in their requirements for screening and testing of applicants. In these instances, they turn to resources that make a demonstrated effort to understand their business needs and have a thorough process of screening and testing of applicants. More businesses are using temporary employees. Using temporary employees is a one way to experience the qualifications and fit of an employee. Temporary employment agencies also further train temporary workers as well as work with these employees to help them be successful in the job. Both temporary agencies and private employment agencies train their employees and have incentive based systems for their employees to know their customers job requirements.

Increased demand for worker competency and personal qualification. Employers are telling us they have high expectations and need for workers with good personal qualities. The complexity and competitiveness of the work environment for industries is causing employers to critically evaluate the costs associated with poor employee qualifications and performance. Qualification and competency for a job goes beyond having basic skills, it requires demonstrating personal qualities, interpersonal skills, effective resource use, systems knowledge, effective information handling, and knowledge of technology and tools. The most serious problems faced by employers with new employees is poor work ethic and poor communication. Employers can train an employee in the areas of technology deficiencies, however, employers view remedying personal quality deficiencies as difficult. If these personal characteristics are very important for the job which they seek applicants, they use employment services and resources that have the demonstrated ability to surface the most qualified job candidates.

Opinions on Service Quality. Employers throughout the state and from all industry sectors rated specific aspects of service and opinions about the quality of services they experienced while utilizing Employment Security labor services. Survey results suggest service delivery is performed professionally, is responsive, and is considered to be a necessary service in Washington state by more than three fourths of the businesses (Washington State University, SESRC, 1995). However, ratings on specific opinions and aspects of service suggests employers expectations about service are not being met and there is room for improving the final outcome of service for employers. Aspects of service and opinions about quality were ranked and compared. The aspects of service identified as needing improvement were those which had the lowest positive responses by employers:


What Was Learned About Jobseekers

Use and Satisfaction. Jobseekers are more satisfied than dissatisfied with the job assistance received from Employment Security. More than half of all jobseekers have used a job service center to help themselves find a job in the last two years. JSC use was lowest for Unemployment Insurance recipients from the general and African American population samples. Assistance in finding jobs was the service area with the highest level of satisfaction when compared to other services asked about with over 64% satisfied for both the general and ethnic populations. This service area and qualitative aspects of service that are part of job assistance are the service aspects with the lowest customer ratings. There is a high level of unawareness about shared work programs, job search work shops and labor market information. For Hispanic jobseekers, information on career planning was also an area of low awareness. Through the use of an acceptable index of customer satisfaction (such as 70% to 75% favorable rating), some aspects and opinions demonstrate the need for improvement. One surprising finding in the statewide surveys was Hispanic jobseekers showing higher levels of satisfaction and favorable opinions about services when compared to either the African American and general statewide population respondents. The most significant difference between population subgroups was the level of education with a disparate difference for Hispanics.

What Was Learned About the Delivery System

Staff working in service delivery say they have experienced some changes that have resulted in improved service. Students in current training programs at colleges say services have improved and from their view point service by multiple providers seems coordinated. However, staff and others say changes are still needed. The vision and understanding of the attributes of a truly integrated service delivery system can be described. The barriers that effect service delivery are viewed also as impediments to effective customer service. These barriers are categorized as legislative barriers, organizational barriers, process barriers and support barriers.

Challenges for the Planning of a One Stop Career System

The knowledge gained from the studies reviewed presents evidence for change. The state's focus on reforming and improving the labor service delivery system is important to the future of many of the state's residents especially those who must transition from shrinking industries. Employers also have a vested interest in this change. Firms in industries with available jobs need an adequate supply of qualified skilled workers.

Challenge #1

Employment Security is facing some conflicting pressures in serving employers and job-seekers simultaneously. Employers seek qualified applicants at the lowest cost. Jobseekers want to be placed in the highest paying positions with their given set of skills. Failure to reconcile these two stakeholder ends will result in negative customer perceptions and wasted resources.

Challenge #2

Employment Security must engage staff and cultivate businesses to overcome negative perceptions held about job applicants referred from Employment Security. There exists a stigma with being unemployed, those with problems lose their jobs first. These problems are usually associated with poor work ethic, dishonesty, difficulties, poor communication, or lack of motivation. Even the unemployed from large industry layoffs, face these perceptions. Employers say applicants referred are often unqualified. Staff of Employment Security can help overcome these negative perceptions by knowing business requirements and finding ways to help jobseekers improve or effectively demonstrate their skills, education, work experience, and other qualities that make them desirable employees. Staff and counselors may also be one of the most important resources to business to help overcome the idea that accommodating persons with disabilities might be costly of difficult.

Challenge #3

Improved screening, testing, and assessment of workers skills may help some industries find the workers they need. The current system fosters use by some industries more that others. Those firms in industries that use ES offer occupational jobs that require less worker skills. Employers who are non-customers may have more risk associated with hiring unqualified or poor job applicants.

The demand side (available jobs) for ES-supplied job applicants can be expanded through better service and targeted service to businesses and industries currently not served. The good news is there is continuity between the improvements asked for by jobseekers and employers. Both desire a better job match through improved ways of knowing about them---service and assessment. Job applicants want to know what is needed to be hired in available jobs and how to get there---better career planning. ES staff say they need more training on how to use labor market information and what it means for customer groups. Better interpretation, customer friendly design, and improved dissemination can improve relations between stakeholder groups---staff, jobseekers, and businesses.

If you would like a full copy of this report, please contact the Project Director, John Lederer, by calling (360) 438-4621 or by Email at 102333.1316@compuserve.com at the Washington State Employment Security Department


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