Final_Assessment of State and Local Layoff Aversion Activities_ (003).docx

Rapid Response Early Warning Network: State and Local Readiness, Capacity, and Needs Assessment Statement of Work Background The Michigan Department of Labor and Economic Opportunity’s Office of Employment and Training (LEO-E&T) and the Community and Worker Economic Transition Office (CWETO) share a common mission of supporting workers, employers, and communities experiencing economic disruptions due to business contraction and/or closure and the associated worker dislocations. Research shows that early warnings of potential closures and worker dislocations allow for interventions that could help support business’ ability to diversify or take other steps to mitigate losses which can potentially avert layoffs and even closures. Federal guidance also recognizes the importance of layoff aversion by encouraging states to engage employers early, strengthen business intelligence, coordinate with workforce partners, and implement proactive strategies that help employers retain workers, minimize layoffs, and reduce the length of unemployment for affected individuals.

In 2024, LEO-E&T initiated efforts to realign Michigan’s Rapid Response system to better support the federal vision. This realignment will ultimately shift the state’s Rapid Response strategy from one that is primarily reactive to a proactive model through the establishment of a statewide Early Warning Network (EWN). An EWN is characterized by tools to identify at-risk businesses before layoffs occur coupled with strong employer relationships with community workforce and economic development partners. Once risks are identified, those partners rapidly and collaboratively implement proactive layoff aversion tactics and deploy services to both employers and impacted workers.

The next phase of this effort is assessment of the Michigan workforce system’s current state of early warning and layoff aversion practices in the Rapid Response program as well as other business engagement activities. To do this work, Michigan seeks a contracted partner, ideally with knowledge and experience with the public workforce system’s Rapid Response and business services programs, including early warning and layoff aversion strategies. This assessment will identify early warning and layoff aversion activities currently occurring in Michigan at the state and local levels, the gaps between Michigan’s current state and other best practices from around the country, and provide recommended actions to move from the current state to a desired future state.

Project Scope:

1) Contractor, LEO-E&T, and CWETO Project Kickoff Meeting

a. 60–90-minute virtual meeting to review project purpose, goals, and timing

b. Identify and share materials for contractor review to start discovery process of layoff aversion current state.

i. Policies/manual

ii. Tools and resources for MWAs

iii. Other information that may highlight current practices

c. Contractor shares a draft overall workplan prior to kickoff meeting, discuss during kickoff, and post-meeting contractor incorporates LEO feedback and finalizes.

Deliverable: Final workplan Timing: Within 14 business days of award

2) Conduct a Literature Review and Best Practices (from around the country) Scan of Early Warning and Layoff Aversion State and Local Activities that provides an understanding of the research-based evidence for this approach and clear descriptions of effective models in practice.

Deliverable: Literature Review and National Best Practice Scan Brief Timing: Brief is developed within 90 days of award

3) Develop LEO and MWA Engagement Plan to outline steps and timing for information gathering activities to identify the state and local “current state” and collect input on what is working well, where challenges persist, and ideas for a desired “future state”. Activities must include those listed below but contractor may also suggest other activities for LEO consideration.

a. LEO staff interviews: 30–60-minute virtual interviews with the following:

i. LEO E&T Director, CWETO Director, WD Deputy Director, RR Lead, and 4-5 key staff (9-10 total interviews)

b. Survey development and implementation

i. Develop approach and content for an online information gathering tool to be completed by each MWA (MWAs will be asked to coordinate with their staff to complete one collective response for the local area). Questions will gather:

1. input on the effectiveness of the current state of RR and Layoff Aversion including state and local roles and collaboration, activities, and resources (i.e. what works well and what has challenges)

2. Innovative RR and/or Layoff Aversion practices implemented by the MWA including what they are, what outcomes they achieve, any associated challenges and opportunities

3. MWAs’ ideas and input on the desired state/local collective “future state” for RR and layoff aversion going forward including what would be needed to implement those ideas.

c. MWA site visits with interview protocol and onsite activities. The purpose of these site visits is to gather additional insight from the MWAs, using their survey responses to tee up those conversations with the opportunity to delve deeper into their current practices and ideas for the future state, potentially observe RR and layoff aversion in person (if possible), and for the identified models, conduct deep discussion to gather information needed to develop case studies that explain the MWA’s innovative practice, steps to implementation, involvement of partners, and outcomes. (16, 1.5 – 2-day site visits; note that trips can be done on a regional basis rather than 16 individual trips)

i. Roundtable discussions: Using initial input gathered through discussion with LEO-E&T, CWETO, and the survey, the contractor will identify and suggest three to four MWAs with examples of successful layoff aversion. (Note - the contractor will ultimately highlight those examples including the structure, partners, practices, funding, etc. used to support the work, through three to four case studies as noted in the Deliverables section of Step 5.) A minimum of two of those examples will reflect a layoff aversion effort involving deep partnerships with industry and key stakeholders and community members. For these locations, the contractor will collaboratively plan with the MWA and then facilitate a roundtable discussion with the involved partners as part of their on-site visit. The purpose of the discussion is to gather perspectives on the work from all involved stakeholders and to gather sufficient information on the example to develop a detailed case study that supports replication by other regions. These discussions should be scheduled in conjunction with the other on-site work at the MWA and last no more than a half day.

Deliverable: Final LEO and MWA Engagement Plan Timing: Developed within 45 days of contract award

4) Implement Engagement Plan. Contractor implements the activities in the plan and provides updates to LEO through a monthly 60-minute virtual meeting. At this meeting, the contractor, through a prepared PPT (that is updated and shared with LEO following the meeting) covers, at a minimum, the following:

a. Progress on planned activities (completed and upcoming)

b. Any key learnings to date

c. Issues or decisions that require LEO input Deliverables:

· On-site agendas (provided to LEO for review 10 days prior to on-site visits)

· Interview protocol (or group discussion protocol) with discussion questions (provided to LEO to review 10 business days prior to on-site visits)

· Meeting PPT (updated monthly and provided to LEO three business days after monthly meetings (Note: following completion of all Engagement Plan activities, contractor will provide a summary of common themes and takeaways across all visits as well as a recommended format and structure for Assessment Report for discussion with LEO.)

Timing: Months 3-8 of contract

5) Develop Draft Assessment Report of Current State with Recommendations to Reach a Statewide Standard for Early Warning and Layoff Aversion. The Assessment Report should be polished and in an easy to digest format using visuals, call outs, etc. where helpful and include the following components:

a. Executive Summary providing a high-level overview of the purpose of the work, activities completed, key takeaways from the assessment, and recommendations for the future state.

b. A summary of what was conducted and learned from each of the engagement activities independently and the themes that run across the activities.

c. An appendix that provides a detailed picture of the current state for each MWA.

d. Gaps in the current state and recommendations to address those gaps to get to an effective statewide layoff aversion standard grounded in an early warning system. Each gap should include recommended light lift, medium lift, and stretch options to move the needle on closing the identified gaps.

e. Three to four case studies that explain MWAs’ innovative practices, steps to implementation, involvement of partners, resources, and outcomes (structure, key content, and packaging of case studies will be determined collaboratively by LEO-E&T, CWETO, and contractor.)

The contractor will also provide a companion PPT that provides the key content from the Assessment Report to support internal and potentially external briefings to leaders and stakeholders on the project.

Deliverables: Assessment Report and Companion PPT Timing: Months 9-10 of contract

6) LEO and MWAs Review and Provide Feedback. LEO will review and coordinate one set of feedback to the contractor who will update the Assessment report and PPT accordingly. Once LEO has reviewed and approved the updated version of the Assessment report, the contractor will implement a LEO-approved process for coordinating MWA review and feedback on the document.

Deliverable: Consolidated feedback (from LEO); Consolidated MWA feedback (via Michigan Works! Association) Timing: Month 11 of contract

7) Finalize Report and Provide Virtual Briefing for LEO and MWAs. Contractor will finalize the report as directed by LEO and plan and implement a 60-minute virtual briefing for LEO leadership and staff and MWAs. Contractor will develop and submit a run of show and PPT for the briefing to LEO for review and approval five business days before the scheduled briefing.

Deliverables:

· Final Assessment Report

· Run of Show, PPT, and Virtual Briefing for LEO and MWAs Timing: Month 12 of contract