10 posts categorized "Workforce Development"

Building the Community We'd Like to See

August 08, 2019

Logo_BCYFPresident Trump recently made disparaging remarks about Baltimore that made headlines across the country. His comments stoked anger and outrage. He tarred Baltimore with a broad and reckless brush without offering even a token gesture of support from his administration.

This president has learned it is easy to throw stones. He hasn't learned how to pick up stones and build. Instead of tearing us down, Baltimore needs leaders at the state and federal levels who are committed to building.

Like many American cities, Baltimore struggles with the long-term consequences of disinvestment and segregation: aging infrastructure, dwindling resources, and too few opportunities for young people.

And so our city celebrated the creation of the historic Baltimore Children and Youth Fund as a beacon of hope and possibility, and as a commitment to the city's most important resource for the future: our young people.

BCYF was launched in 2015 by Mayor Bernard C. "Jack" Young, who was then the president of the Baltimore City Council. The fund was approved by voters in November 2016 with more than 80 percent support. The non-lapsing fund is supported through an annual set aside of property tax revenue.

Baltimore is only the third city in the nation to create such a fund, and it is the only fund of its kind that has included a racial equity and community participatory lens in grant selections. You will not find this sort of program anywhere in the country.

Why does this matter?

When Freddie Gray died in 2015, many of us came to realize that our institutions, including public and private, weren't setting young people up for success. While a host of needed reforms were launched to address community and law enforcement relationships, a glaring question remained: How do we show our young people we are willing to invest in their future and provide entry points to help them find opportunity and long-term success?

BCYF is an important step forward in answering that question.

Community leaders agree. With less than $11 million available, the fund received $75 million in grant requests through nearly five hundred grant applications.

In its first year, BCYF granted $10.8 million in funding to eighty-four organizations. The grantees were a mix of small organizations and established nonprofits working on everything from mindfulness and mediation to financial literacy. Notably, 63 percent of the organizations funded in the first year were African American-led.

In what city does this happen? It's happening in our city. It's happening in Baltimore.

Too often when community leaders gather to outline solutions to various problems, they fail to include directly impacted people. Not this time. The fiscal steward Associated Black Charities and a team of professionals offered over three thousand hours of help to grantees who may have been new to the funder-grantee relationship or in need of added capacity to ensure maximum impact.

Before BCYF ever issued grants, they held community design sessions, technical assistance workshops, and trainings to ensure the community was prepared to complete the grant application and access resources. As a professional grantmaker with an extensive career in philanthropy, I know that this level of engagement between a funder and the community is rare.

For our president, spewing insults has become the standard response to criticism. He seems to want to drive us apart.

But in Baltimore, we know we can only succeed if we all move forward together. Just as a relay race involves multiple runners, sustained support for children, youth, and young adults requires multiple partners at the local, state, and federal levels.

Headshot_Patrick_McCarthyThe Baltimore Children and Youth Fund is a groundbreaking start. Let's build on it, and programs like it, to shape the future we'd like to see for our city.

Patrick McCarthy, PhD, retired in December as president and CEO of the Annie E. Casey Foundation, a position he held for nine years.

Collaboration Versus Competition: Funders Should Shift Their Giving Models to Better Support Families

June 25, 2019

Familia_adelantePicture this: In the New York City borough of the Bronx, Marlena and Jose Reyes had worked hard to provide for their family of four, often getting up before the sun rose to feed and get their children off to school before heading out to work. But their family hit hard times when Jose was injured on the job. The medical bills quickly added up, and, lacking disability coverage, he began to worry his family wouldn't be able to make ends meet. Soon, the family fell into financial crisis, and the threat of eviction became a very real and frightening possibility.

Fortunately, Marlena learned about a service provider collaborative in the community called Familia Adelante that could help.

Stories like those of the Reyeses are common inside the walls of Familia Adelante, which connects families with a range of services, from health care to educational support to job training, all in a single location.

Comprised of three organizations — Mercy Center, the Fiver Children's Foundation, and the Qualitas of Life Foundation —as well as Tanya Valle, a mindfulness practitioner, Familia Adelante helps low-income families access services based on goals they set with the help of a coach. Each of the three agencies focuses on its area of expertise, and together they meet regularly to evaluate families' progress. In the situation in which the Reyes family found itself, Familia Adelante was able to help the Reyeses prioritize their short-term needs, establish a plan to get out of debt, and, because the organization has access to a full range of basic-need services, keep their home and maintain family stability.

Unfortunately, for many families and service providers, the reality is much different. Rather than collaborating, many nonprofits compete fiercely with other nonprofits for resources. With a limited amount of charitable dollars available, nonprofits tend to view each other as competitors rather than as allies working toward a common goal. It's a model that hurts nonprofits — and the people they are trying to serve.

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Youth Apprenticeship: Accelerating a Path to College and Career Success 

June 13, 2019

MachineapprenticeWe seem to have reached a consensus that, in today's economy, it's nearly impossible to secure a quality job and get on the path to economic stability without postsecondary education. But the reality of student loan debt and surveys which show college graduates don’t feel prepared for their career of choice challenges the narrative that a successful future is intrinsically linked to a college degree.

Reality is also hitting employers' bottom lines as businesses of all sizes and in a variety of fields, including information technology, manufacturing, finance, and healthcare, struggle to fill good-paying positions. The pipeline that used to lead young people through high school and, ultimately, to the skills needed to secure those jobs is broken — and it might not have ever worked equitably, anyway.

It's clear our country needs additional, widely accessible postsecondary options that provide young people with the foundational skills, experiences, and credentials they need to thrive in a rapidly changing economy.

K-12 systems, institutions of higher education, and industries alike have been searching for solutions that reflect the current and future state of work, with little success. For decades, philanthropy has been investing to improve educational outcomes and college access, and it, too, recognizes that new approaches are needed, and fast.

That's why we funded the Partnership to Advance Youth Apprenticeship (PAYA), a multi-stakeholder New America-led initiative to promote more equitable and sustainable pathways to economic mobility. PAYA aims to do this by partnering with educators and employers to build more scalable long-term solutions that have been proven to help youth acquire the skills they need to navigate the rapidly changing world of work.

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A Conversation With Mark Zuckerman, President, The Century Foundation

May 29, 2019

For Massachusetts folks of a certain age, the name Filene's Basement evokes memories of a crowded emporium where the hunt for bargains, especially on weekends, often resembled competitive sport. The basement was the brainchild of Edward A. Filene, whose father, William, founded Filene's in 1908. It was Edward, however, who recognized that growing numbers of American factory workers represented a new market and persuaded his father to start selling surplus, overstock, and closeout merchandise in the basement of his flagship Downtown Crossing store.

The experiment was a huge success, and the Filenes soon joined the ranks of America’s wealthiest families. In 1919, Ed Filene, already recognized as a progressive business leader, founded the Co-operative League — later renamed the Twentieth Century Fund — one of the first public policy research institutes in the country.

Mark Zuckerman joined TCF — which changed its name to the Century Foundation in the early 2000s — as president in 2015. A veteran of the Obama administration, where he served as Deputy Director of the Domestic Policy Council, leading teams on initiatives to reduce student debt, increase accountability at for-profit educational institutions, reduce workplace discrimination, and expand access to job training, and Capitol Hill, where he served as staff director for the House Education and Labor Committee, Zuckerman has worked over the last four years to bring the organization’s research efforts and policy work into the twenty-first century.

PND spoke with Zuckerman recently about some of those changes, the meaning of the 2018 midterm elections, and TCF’s efforts to advance a progressive policy agenda.

Headshot_mark_zuckermanPhilanthropy News Digest: The Century Foundation is marking its hundredth anniversary in 2019. Tell us a bit about Edward Filene, the man who created it back in 1919.

Mark Zuckerman: Ed Filene was a prominent businessman but also somebody who was deeply engaged in public policy, a rare combination in those days. The era in which he was working was a time when there wasn't strong governmental involvement in the economy, and where it was involved, it was too weak to effectively address the economic chal­lenges of the day. Things like workers' wages and benefits, anti-trust enforcement, and a lack of transparency with respect to Wall Street, something that eventually led to passage of the Securities and Exchange Act.

Ed Filene very much believed in more robust engagement by local, state, and the federal government in people's lives. And he felt that research was a linchpin of good public policy. At the time, there were very few think tanks — the Carnegie Endowment for International Peace had been started a year earlier and Brookings had been started two years before that. 

So, the idea of a private entity taking on challenges that, in the past, only government had had sufficient resources to address was something new. Today, of course, there are think tanks all over the world focused on many different subjects, but Ed Filene really was in on the beginning of the think tank movement and on think tanks as places where social policy, progressive social policy in Mr. Filene's case, would be discussed and developed.

Like Henry Ford, he believed that paying a decent wage to your employees was good for the overall economy, and in his writings he expressed support for a mandatory minimum wage. He also gave speeches about the importance of supporting the Roosevelt admin­istration in its attempt to get Congress to pass something that looked a lot like Medicare and urged people to call in their support for initiatives Roosevelt and his brain trust were proposing.

One of the public policy innovations he was most interested in was the credit union movement, and for a specific reason. At the time, the nineteen-thirties, financial institutions mostly were there to lend and cater to businesses and wealthy individuals. There simply was no infra­structure in the United States to provide the middle class — never mind lower-income folks — with capital to buy their first home or even to invest in a small business. Ed Filene viewed credit unions as a critical tool for providing Americans with capital that could help them thrive and grow the middle class. And so he embarked on a major effort, not only at the national level but at the state level, including his own state, Massachusetts, to authorize the creation of credit unions, which sort of makes him the father of the credit union movement.

PND: Let's jump ahead a bit. How does the Century Foundation's work support a progressive policy agenda in 2019? And how has the organization's model evolved over the last hundred years to support that work?

MZ: Well, one of the big changes the Century Foundation went through — and I would say it was in keeping with changes in the way policy was made over the decades — is that it evolved over the years from being essentially a book publisher, which was what it was for decades. Back then, it would engage influential thinkers about specific social policy ideas they wanted to promote in book form. Many of those titles were, of course, written for policy elites, with the idea that these ideas would be circulated and eventually find their way into the halls of Con­gress or onto the floor of state legislatures. It was a common sort of model for academic institutions and emerging think tanks during the mid-twentieth century. But over time, and especially as the Internet became more widely used, the model changed. Today, having influence in or impact on public policy requires a lot more than just having a good idea, and too many of these books end up sitting on shelves, unread. Maybe they're filled with great ideas, but there are fewer and fewer people willing to pull those ideas out of those volumes and turn them into policy.

So, the Century Foundation today is very differ­ent than it was seventy or fifty or even twenty years ago, in that we are taking more responsibility — not only for coming up with creative solutions to today's challenges, but for figuring out how to use the resources we have beyond research and the development of policy ideas to create impact.

That's the big shift — the leveraging of intellectual and advocacy resources and institutional relationships to drive policy change. When I joined TCF as president four years ago, I hired a number of people who had recent experience in the White House or in federal agencies or on Capitol Hill, because I wanted people who understood how best to approach those institutions, and how they could have an impact on those institutions. They were also people with a high level of expertise in their particular subject matter. That's been my focus as president — finding people who know who the policy players in Washington are, who have deep expertise in their subject matter and the ability to do good research, and who have wide, influential networks in the advocacy, policy, and academic communities.

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Liberty Hill Foundation Pushes for Higher Social Justice Standards

December 05, 2018

Liberty Hill Foundation's approach over the last forty years has been to ask grassroots community organizing leaders, "How can we help?"

NCRP-2013logo-color-no-taglineStaff would do what communities asked of them, providing general operating support and multiyear funding, when possible, and stepping back so that community organizers could take the lead.

This is why Liberty Hill won an NCRP Impact Award in 2013; its grantee partners have won important policy and social victories, including passage of the California Domestic Workers Bill of Rights.

But, recently, the foundation has acknowledged the extent of its power and influence and made a conscious decision to leverage it more aggressively.

In the wake of the 2016 election, Liberty Hill staff observed that many of their allies were overwhelmed and feeling pressure to respond to the onslaught of policy and social threats to their communities. They knew that defending the gains made by progressive social movements was important, but they also knew that being in Los Angeles made it easier to secure gains that weren't possible in other parts of the country.

Liberty Hill staff engaged board members, donors, grantees, and other allies to discuss how, beyond, funding, it could strategically support the work of progressive nonprofits in Los Angeles.

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5 Questions for… David Egner, President/CEO, Ralph C. Wilson, Jr. Foundation

November 27, 2018

Established by the late owner of the NFL's Buffalo Bills with more than a billion dollars in assets, the Ralph C. Wilson Jr. Foundation plans to spend those assets down, with a focus on western New York state and southeastern Michigan, by 2035.

David Egner was appointed president and CEO of the foundation in 2015, having served prior to that as president and CEO of the Detroit-based Hudson Webber Foundation. A fixture in Michigan philanthropy for decades, first as an executive assistant to longtime W.K. Kellogg Foundation CEO Russ Mawby, then as director of the Michigan Nonprofit Association and executive director of the New Economy Initiative, Egner is using his extensive knowledge, experience, and connections to make the Detroit and Buffalo metro region better places to live and work.

PND recently spoke with Egner about Ralph Wilson and his vision for the foundation and the two regions he loved and called home.

Headshot_david_egnerPhilanthropy News Digest: Who was Ralph C. Wilson? And what was his connection to Buffalo and southeastern Michigan, the two regions on which the foundation focuses most of its giving?

David Egner: Ralph C. Wilson, Jr. was a tremendously successful businessman and the beloved founder and former owner of the National Football League's Buffalo Bills.

The four life trustees he appointed to lead the foundation decided to focus its giving in the Detroit and Buffalo regions — southeastern Michigan and western New York — where Mr. Wilson spent most of his life and was the most emotionally invested. He had called metro Detroit home since he was two, and Buffalo became a second home after 1959 through his ownership of the Bills.

But above all, he's remembered for being a lover of people and of everyday difference makers. We want the Ralph C. Wilson, Jr. Foundation to be a testament to his spirit, and that ethos helps guide who we are, what we do, and how we help shape communities.

PND: Why did Mr. Wilson, who lived to be 95, decide to structure the foundation as a limited lifespan foundation?

DE: It was a very personal decision. First and foremost, it was born out of his desire to have an impact on everything he touched. Doing so ensures that the foundation’s work will be completed within the lifetimes of the people who knew him best, our four life trustees, and that its impact will be immediate, substantial, and measurable.

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Strengthening Philanthropy’s Role in the Resistance

February 08, 2018

WPI-SAC-1An increase in the minimum wage. Criminal justice reforms that have led to a 25 percent drop in the number of people incarcerated in state prisons. A Domestic Worker Bill of Rights that extended labor protections and overtime pay to five hundred thousand low-wage workers. Climate change laws that are delivering real reductions in greenhouse gas emissions. Expanded rights for transgender people.

Even as the federal government has become openly hostile to policy priorities such as immigrant and worker rights, environmental protections, and expanded access to health care, California has forged its own path. Not only are local and state governments standing up to oppose federal overreach, they are shaping real policy solutions that can serve as a model for the rest of the nation. And, in many cases, the state's progressive victories have been achieved with the help of philanthropic support for advocacy efforts.

For a long time, funders were wary about getting involved in policy work. That reluctance is fading as a growing number of funders realize that policy and systems change are critical levers for achieving their equity and social justice goals. And at a time when the federal government is intent on turning back the clock on progress that has benefited so many vulnerable communities, philanthropy is coming to see the value of investing in local and state policy work aimed at protecting and advancing people's rights.

But what is the best way for funders to support policy advocacy? How can foundations and other donors be more strategic about investing in policy change as a means to achieving their broader missions? And what exactly are the rules around lobbying and advocacy for foundations and their nonprofit partners?

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[Review] 'The New Urban Crisis: How Our Cities Are Increasing Inequality, Deepening Segregation, and Failing the Middle Class — and What We Can Do About It'

August 10, 2017

In The New Urban Crisis: How Our Cities Are Increasing Inequality, Deepening Segregation, and Failing the Middle Class — and What We Can Do About It (Basic Books: 2017), urban studies theorist Richard Florida offers a mea culpa of sort for the back-to-the-city movement he has long championed. In books such as The Rise of the Creative Class, and How It's Transforming Work, Leisure and Everyday Life (Basic Books, 2002) and Cities and the Creative Class (Routledge, 2005), Florida argued that, if cities hoped to thrive in a competitive global economy, they needed to attract and retain talent — "[t]he knowledge workers, techies, and artists and other cultural creatives who [make] up the creative class.:

Book_the_new_urban_crisis (002)If nothing else, Florida's timing was impeccable. By 2000, the ranks of the creative class in the United States had grown to 40 million — a third of the U.S. workforce — and many of its members had left the suburban or rural communities of their childhood and headed to cities such as New York, Boston, Washington, D.C., San Francisco, Los Angeles, and Seattle, where they moved into neighborhoods that had been written off by the professional class and city officials. That story was repeated around the globe, as knowledge workers and creatives flocked to already vibrant cities such as London, Paris, and Tokyo; booming Asian metropolises such as Hong Kong, Shanghai, and Seoul; and sprawling, emerging mega-cities such as Lagos, Mexico City, and Mumbai.

Indeed, today — in a stunning illustration of the power of urban centers to transform societies through what Florida dubs the "3Ts of economic development" (technology, talent, and tolerance) — more than half the population of the globe lives in cities, and the United Nations estimates that by 2050 upwards of 70 percent of the global population will live in urban areas. Little wonder, then, that in recent decades urbanists have proclaimed "the triumph of the city" (the title of an excellent book by Harvard economist Edward Glaeser), or that the future of humanity is urban.

And yet this newfound appreciation for the richness, convenience, and stimulation provided by city living has not been without costs, as gentrification, rising rents, and real estate speculation have squeezed blue-collar and service workers out of neighborhoods and livelihoods, contributed to the re-segregation of public schools, and driven huge increases in wealth and income inequality. It is an economic failure that we should have seen but didn't, and from the Brexit vote in England, to the election of Donald Trump, to the growing popularity of far-right populist parties in Europe, we are living with the consequences of that failure. The New Urban Crisis is Florida's attempt to diagnose where things went wrong — and offer a prescription for how we can recover an urbanism that works for all people, not just elites and the creative class.

If that's too conceptual, allow me an anecdote by way of illustration: As I was finishing Florida's book in Washington Square Park in Manhattan earlier this summer, surrounded on all sides by buildings belonging to New York University (where Florida is a fellow), I could see, firsthand, his 3Ts at work. Across the way, diverse crowds of college students walked to their next class or appointment while sending photos to friends on the latest app; on the corner, a well-heeled couple waited impatiently for their Uber driver; and, a group of foreign tourists were listening to their guide about the history of the square. To the "urban optimist," it was a perfect illustration of "the stunning revival of cities and the power of urbanization to improve the human condition," while for the pessimist, it might suggest just how profoundly "modern cities [are] being carved into gilded and virtually gated areas for conspicuous consumption by the super-rich...."

And that's not the half of it. The juxtaposition of boundless opportunity and desperate poverty found in so many cities has led to mounting alienation and resentment. Indeed, Florida, who counted himself among the optimists "not too long ago," argues that to truly understand this new urban crisis (as opposed to the mid-twentieth-century urban crisis of deindustrialization and white flight), we need to recognize and come to grips with the fact that cities are both "the great engines of innovation, the models of economic and social progress," and "zones of gaping inequality and class division."

Florida identifies five key factors that have combined to create this crisis: 1) the growing economic gap between so-called superstar cities — where a disproportionate share of high-value industries, high-tech startups, and top talent are concentrated — and struggling industrial cities, or what he calls "winner-take-call urbanism"; 2) the steep rise in urban housing costs, which has resulted in the displacement of countless numbers of blue-collar and service workers, not to mention the poor and disadvantaged; 3) a rapid increase in inequality and segregation driven in part by "sorting" — a phenomenon in which creatives and the well-off congregate in neighborhoods formerly favored by the working middle class, creating a patchwork of relatively small areas of privilege surrounded by large tracts of poverty; 4) the growing crisis in the suburbs, where problems typically associated with urban areas — poverty, economic insecurity, crime, and segregation — are growing and becoming entrenched; and 5) the urbanization of the developing world, often without the improvements in standards of living that accompanied an earlier wave of urbanization in the U.S., Europe, Japan, and China.

At the core of these challenges, writes Florida, is an economic divide that shapes our built environment and determines where we live. "Simply put," he adds, "the rich live where they choose, and the poor where they can." This reality creates a host of related problems with both short- and long-term consequences (e.g., "people who live in far-flung suburbs and endure long commutes have higher rates of obesity, diabetes, stress, insomnia, and hypertension and are more likely to commit suicide or die in car crashes").

Florida illustrates each of these challenges using the latest demographic and economic data, much of it pulled from the Martin Prosperity Institute at the University of Toronto, which he leads. In fact, the book is filled with interesting graphs and charts, including one showing the number of houses one could buy in various U.S. cities for the price of a single apartment in Manhattan's chi-chi SoHo neighborhood (Memphis, Tennessee, tops the list with 38!). He also highlights his institute's New Urban Crisis Index, which reveals high levels of combined economic segregation, wage inequality, income inequality, and housing unaffordability not only in superstar cities such as Los Angeles, New York, and San Francisco, but in Chicago, Miami, and Memphis. (While interesting, many of the maps and charts could have benefited from better graphic design, and most of the data cited are for U.S. cities — a weakness in a book that purports to be about global trends.)

But what most readers will be looking for is a solution (or solutions) to this complex crisis of inequality. On that score, the glass is half full (or empty, depending on one's perspective). Florida points to the tension between the kind of "urban density and clustering that innovation and economic progress require" — and a "New Urban Luddism" — as the greatest impediment to the kind of equitable development and opportunity needed to overcome rising inequality. He has little sympathy for these twenty-first-century Luddites, who live in well-off communities and neighborhoods and are quick to say no to projects that may pose inconveniences but whose benefits in terms of the greater public good are indisputable. As he writes at one point, "If we are to...enjoy a widely shared and sustainable prosperity, we must become a more fully and fairly urbanized nation."

With that tension in mind, Florida sets out seven strategies designed to foster a "more productive urbanism for all": 1) make clustering work more efficiently by switching from a property tax to a land value tax; 2) invest in urban infrastructure to support greater density and growth; 3) build more affordable housing; 4) convert low-wage service jobs into living-wage work by raising the minimum wage; 5) address urban and suburban poverty by investing in people and places and providing a universal basic income; 6) shift development policies from nation-building to city-building and mobilize behind a global effort to build more resilient, prosperous cities; and 7) empower cities and communities by devolving political power from states and national governments to cities themselves.

As wide-ranging as these solutions are, the recommendations at the core of Florida’s books are fairly straightforward: governments and the private sector need to make investments in new and upgraded infrastructure and adopt tax and land-use policies that encourage increased density. Around the world, he writes, "strategic investments in basic infrastructure can help connect [poor people] to jobs; leverage their talent and productive capabilities and enable them to become more fully engaged; and, ultimately, turn the vicious cycle of urban isolation and poverty into a virtuous cycle of urban progress." In an American context, that means moving beyond the longstanding practice of encouraging suburban sprawl and expansion into rural areas and, instead, putting a new focus on the country’s neglected urban cores — a re-urbanization movement, if you will — that creates jobs and opportunities for all Americans.

While The New Urban Crisis may not be the twenty-first-century equivalent of Jane Jacobs' The Death and Life of Great American Cities or Lewis Mumford's The City in History, it is an interesting and highly readable update of Florida's creative class concept and an excellent introduction, for those not familiar with his earlier work, to how a new generation of knowledge workers and creative class types are shaping our economy, our cities, and, for better or worse, our future. The challenges posed by this development are profound, both in the U.S. and around the world, and The New Urban Crisis is a welcome contribution to the conversation around the best ways to address those challenges.

Michael Weston-Murphy is a writer and consultant based in New York City. For more great reviews, visit the Off the Shelf section in PND.

Most Popular PhilanTopic Posts (September 2016)

October 01, 2016

As we enter the homestretch of another year that has flown by, we have good news and bad news. First the bad: There are still thirty-seven days left in this election cycle. On the good-news front, you all dug into the PhilanTopic archive and surfaced a couple of wonderful items from the past, including a terrific post by Small Change author Michael Edwards (one of three in an excellent series Michael wrote for us) and a sharp review of Fareed Zakaria's In Defense of a Liberal Education by Michael Weston-Murphy. You also liked Stephen Pratt's sensible advice vis-à-vis metrics and measurement, Kris Putnam-Walkerly's exhortation to grantmakers, and Matt's Q&A with Markle Foundation president Zoë Baird. As for that pesky thing called time, I like (but don't always follow) the great Satchel Paige's advice: Don't look back. Something might be gaining on you....

What did you read/watch/listen to in September that made you pause, made you think, made you hopeful? Feel free to share with our readers in the comments section below. Or drop us a line at mfn@foundationcenter.org.

5 Questions for...Zoë Baird, CEO/President, Markle Foundation

September 12, 2016

We've all heard that necessity is the mother of invention. And like most clichés, there is plenty of truth to it. But for every other UpWork professional using Uber to a get to a client meeting, there's a CEO who would prefer to convert that freelancer into a full-time employee. Or so shows a recent survey conducted by the Markle Foundation, the Aspen Institute's Future of Work Initiative, Burson-Marsteller, and TIME magazine. While employers recognize the benefits of hiring "contingent workers" and embrace the principles of the "on-demand economy," the survey found, among other things, that 56 percent of employers believe full-time employees provide more long-term value to their businesses and are more invested in the company.

Recently, Philanthropy News Digest spoke with Zoë Baird, who has led the Markle Foundation since 1998, about the results of the survey, the foundation's Skillful initiative, and how the job market in the U.S. is changing.

Headshot_Zoe Baird_MarklePhilanthropy News Digest: Markle recently released the results of a Workforce of the Future Survey, which examined new employment models in what many people have taken to calling the "gig economy." What, if anything, surprised you about the findings?

Zoë Baird: What really surprised us was the extent to which employers preferred to have full-time employees. It's clear that employers are using independent contractors, but over 60 percent of them really prefer full-time employees, which we view as a very positive finding. The concern that twenty-first century employers have no loyalty to their employees did not come through in the survey. Employers want full-time employees, and the main reason they hire independent contractors seems to be that they need specific skills or have a surge in work and need to hire people faster than the people they already have can acquire new skills.

PND: Did respondents say why they prefer full-time employees to part-time or contract employees?

ZB: Loss of productivity and the cost of replacing a skilled employee are factors, but the main reason seems to be that full-time employees are more loyal and committed than part-time employees. And that fits well with the work we are doing with Skillful, which is designed to get people who have a high school diploma but no college degree on a path to attain the skills they need to thrive in the twenty-first century economy.

PND: You don't have to look far these days to find someone willing to talk about the lack of skilled employees in the marketplace. Have we made progress in closing the so-called skills gap?

ZB: What we’re finding, both in the work we’re doing and in the research, is that jobs and the nature of work are changing, but people aren't getting retrained fast enough to keep up with those changes. Increasingly, employers are eager and willing to re-train workers, whether or not those workers have a college degree. And what we're trying to do is to work with employers to define the skills they need and then help job seekers demonstrate to potential employers that they have those skills.

With Skillful, we've created a platform that lets everyone, employers and job candidates, see what they need to see. Individuals who are interested in a career path can see what a particular job pays and watch videos showing them what it looks like to do a particular job. We also have videos of people talking about what a job in, say, advanced manufacturing is all about. People often end up doing the same kind of job a parent did, in part because it's often the path of least resistance. Skillful enables you to see what different jobs look like and what they pay. Then you can sit with a career counselor at a workforce center, or at Goodwill, which is partner­ing with us on the initiative, and talk with them about how to get the training you need to get onto a career path that leads to a brighter future. It's designed to be a "begin-again" system and remove the mystery of how you go about switching gears.

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