01 – In practice

What an industry-led talent system can look like in practice

The vision describes two moves – employer-led organizations with the capacity to speak with one voice, and a system adapted to listen and act. What that looks like in practice will differ from state to state: each state has its own agencies, institutions, funding streams, and existing employer organizations to build from. The example below shows one way the pieces can fit together – a recognized sector intermediary at the center, one demand picture per sector, and every part of the ecosystem working from the same signal.

How the pieces fit together: one example

The state

Recognizes one statewide, employer-led intermediary per priority sector through a formal selection process, funds the capacity the role requires beyond a single grant cycle, and supplies the employment and education data every demand picture builds on.

What could enable this →

The sector’s employers

Share the knowledge only employers hold – the occupations they are hiring for, the skills and credentials that matter, where the pipeline is stuck – once, through their sector intermediary directly, or through the regional sector partnerships that already organize them.

What could enable this →

The statewide sector intermediary

A statewide, employer-led organization, recognized and funded by the state – uniquely positioned to gather employer input efficiently, ensure it is representative of the whole sector, and translate it into a form every part of the system can act on. Its four roles each feed the part of the system directly below it.
What could enable this →
Demand pictureBuilds and publishes one picture of the sector’s in-demand occupations, the skills and credentials that matter in hiring, and strategies – refreshed on a regular cycle (see the sample). StrategiesIdentifies the solutions that would clear the sector’s hiring and training barriers, and brings them to the state as one set of priorities through one coordinated channel. MobilizationRecruits its employers into the work the sector prioritized – hiring from aligned programs, training on the job, and providing work-based learning. NavigationServes as the sector’s front door – connecting employers to the right programs and entry points, and endorsing programs that teach to the picture.

Education & training institutions

Build programs against the sector’s actual hiring – pointing to the picture to demonstrate demand for new programs, teaching the skills employers rate most important, and localizing the picture through their advisory committees.

What could enable this →

State agencies

Receive the sector’s priorities through one coordinated channel, enable the alignment of program approval, funding, and renewal with the programs the sector endorses, and fund the strategies its employers prioritized.

What could enable this →

Employers training through the system

Participate in the work the sector prioritized – training people on the job with the sector’s shared training plans, providing internships and work-based learning, and co-investing alongside public dollars in the sector’s pipelines.

What could enable this →

Employers hiring from the system

Engage with the sector intermediary to get matched to programs seeking hiring partners, and hire from the programs the sector endorses, with job postings written in the picture’s skill and credential terms.

What could enable this →

Published program and workforce outcomes

Placement, wages, retention, and credential value, published in one public place – so students and families can compare programs before enrolling, employers can see which programs to hire from, and the state can weigh the results when a program comes up for renewal.

What could enable this →
02 – Key roles

Who does what in building an industry-led talent system

Building the kind of system described above takes six roles – and none of them requires creating a new entity: each can be held by an organization that exists today.

01 A workforce innovator

The workforce innovator convenes the effort and aligns all parties around a shared vision for an industry-led talent system in their state. There is more than one way to play this role – the innovator might be a business-led civic coalition, an education nonprofit with deep employer ties, or a statewide roundtable – what matters is that all parties trust the organization and it has no stake in any one system. It can take on several responsibilities.

  • Brings business, education, and government leaders to one table.
  • Builds a shared picture of how employers engage the state’s systems today.
  • Aligns everyone on a vision for what an industry-led talent system looks like in their state.
  • Keeps the group convened and the work moving until the state or an implementation partner takes it on.

In Washington, Partnership for Learning is one example of an organization playing this role: documenting every place the state’s public systems ask something of employers (more than 75 distinct asks, from advisory committees to surveys to sign-offs), interviewing leaders across education and workforce, and convening a working group to shape a vision for how employers can play a more meaningful role in Washington’s workforce development ecosystem.

02 Sector intermediaries

The industry associations, employer coalitions, and chambers of commerce that step into the role take on several responsibilities while the system is being built.

  • Show their member employers why shared workforce efforts are worth their time – and how this approach differs from past public-system asks. The case studies can support that conversation.
  • Build their own capacity to combine what individual employers say about hiring into one clear picture of what the sector needs – and identify the particular approach that works for their sector. The sample demand picture shows what the finished product can look like, and the U.S. Chamber of Commerce Foundation’s TPM Academy is where many organizations learn the method.
  • Get to know the public systems that shape their sector’s talent supply – which agencies and institutions decide what gets taught, approved, and funded, and where the sector’s needs can influence those decisions. The system navigator maps those systems, one by one.
03 The governor’s office

The governor’s office is the one office that can convene every agency whose processes have to change – K-12, higher education, workforce, apprenticeship, economic development. Sample roles the office could consider playing:

  • Make this work a stated priority for the agencies involved. Agencies act faster on a direct signal from the governor than on a request from a peer agency.
  • Coordinate timing and design across agencies, so the pieces – the channel for employer priorities, the funding incentives, the published outcomes – are built together rather than as separate projects.
  • Create a small team to pull together the employment and education data each sector’s demand picture starts from – data the state already collects, brought into one place.
04 Philanthropy

Philanthropy can provide the early money and the patient capital, and it can play several important roles while the system is being built.

  • Fund the organizations themselves before state dollars arrive – the staff, data tools, and facilitation an industry association or employer coalition needs to do this work.
  • Pay for the first state pilots – a state designates intermediaries in a few sectors and tests what it takes to make the partnership work, and to keep it working when administrations change.
  • Invest across several states at once, paired with shared research and technical assistance – so lessons that would otherwise stay siloed inside one organization or state become evidence about what works in which contexts, and guidance the whole field can use.
05 An implementation partner

Once the vision is in place, the work needs a clear leader responsible for implementation. That leader could be the workforce innovator, a team within the governor’s office, or an outside entity brought in for the purpose. Whoever leads it takes on several roles while the system is being built.

  • Manages the workplan across sectors and agencies – tracking who owes what by when, and unblocking decisions when they stall.
  • Builds the shared templates and tools everyone uses – the demand picture format, the employer surveys, the endorsement process.
  • Works with the state’s data team so every sector’s demand picture is built on the same data and follows the same format.
06 An evaluation partner

The work needs an independent assessment of whether it produced different outcomes for students and employers, and the evaluation partner plays several roles.

  • Names the success measures up front, before the building starts.
  • Tracks the work against those measures as the system comes together.
  • Publishes what it finds, so the state can adjust and other states can learn from what happened.
04 – Challenges and risks

The strongest objections to this approach – and how we think about each

An industry-led talent system will not resolve every workforce problem, and building one encounters real challenges along the way. The objections below are the ones we take most seriously – each is reasonable, and each has an approach that reduces the risk.

“Choosing the sector intermediary will be politically hard.”

It will be. In most sectors more than one organization can claim the role, and naming one means not naming others. That is why selection needs a formal process with published criteria, run with transparency and ideally with employers themselves involved in the selection – and why a state can start in the two or three sectors where employers already agree on who speaks for them. Selection criteria should weigh an established employer network, accountability to employers, and a track record with the sector over a polished application. How states can select sector intermediaries works through the scenarios, including what to do when a sector has too many candidates – or none.

Every piece of this system exists today. The organizations that can hold each role are already at work, the levers already sit in state hands, and states across the country have built the pieces one at a time. What remains is to bring them together – a state, a few priority sectors, and the political will to start.
NextResources to put these ideas to work →

Practical resources for building an industry-led talent system – from selecting sector intermediaries, to the sample demand picture, to the case studies.