Board aims to inform businesses of services, resources

One of the priorities of the State Workforce Development Board (SWDB) is to make sure businesses understand the workforce services and resources available throughout the state. In particular, the role of the SC Works centers as well as that of DEW have been known for unemployment benefits when individuals are out of work; however, there is a significant investment by these agencies to leverage skills training, soft skills, career pathways and more, all in an effort to support the needs of South Carolina industry.

In order to educate businesses and encourage them to take full advantage of the programs available, a business engagement group was created with the collaboration of the Local Workforce Development Boards. Last year, the group exceeded their goal of reaching 10,000 businesses. This year the group is focusing on continuing outreach while digging deeper with current relationships to elaborate on services specific to a company’s needs.

Some examples of programs created to connect individuals with quality employment as well as establish a talent pipeline where businesses can find a workforce with skills specific to their industry, include:

On the Job Training

Incumbent Worker Training

WorkKeys® Assessments

Apprenticeships

Rapid Response

Employee Search Assistance

Connecting businesses with other agencies based on an assessment of workforce needs

One program that is particularly helpful to businesses and that the board is funding this year is job profiling. Job profiles are available through the S.C. Work Ready Communities initiative. This customized measurement tool identifies skills and skill levels needed to perform a job in your company. The skill level is then matched with a WorkKeys® test score. By profiling your jobs, you can feel confident using WorkKeys® tests to make your selection, training and advancement decisions.

To meet with a member of the business engagement group and learn more about the resources available, visit our website at https://dew.sc.gov/about-dew/locations to call your local SC Works center and ask to speak with a business consultant.

 

 

Save the date for the Workforce Development Symposium

Mark your calendar to attend the 2017 Workforce Development Symposium on February 18-19 at the Columbia Metropolitan Convention Center.

The event is hosted by the State Workforce Development Board, S.C. Chamber of Commerce and the S.C. Department of Employment and Workforce.

Learn from other businesses about successful apprenticeships, hiring practices in a tight labor market and about other programs available through the Department of Employment and Workforce that will help fill key positions.

More information will be available soon.

SWDB delivers workforce solutions

Welcome to the inaugural issue of the State Workforce Development Board (SWDB) newsletter. This monthly publication will provide you with information regarding the work being done to create and promote a ready and skilled workforce. The board, chaired by Mikee Johnson CEO of Cox Industries, provides direction to the state’s workforce system on issues pertaining to labor force development, particularly those concerning the Workforce Innovation and Opportunity Act (WIOA).

The mission of SWDB is to create a competitive workforce advantage for South Carolina by ensuring that a quality and effective workforce system exists in order to improve the prosperity of businesses and the lives of South Carolinians.

The board is comprised of a majority of business leaders. Other members include legislators of the South Carolina Senate and House, local elected officials, workforce partners and representatives of community-based organizations. Members of the board are appointed by and serve at the pleasure of Gov. Nikki Haley.

Two issues the board has initiated are the S.C. Talent Pipeline and SC Work Ready Communities project.

S.C. Talent Pipeline is the newest initiative where the state workforce system has partnered with the S.C. Department of Commerce, S.C. Department of Education and the S.C. Technical College System to provide a workforce supply chain for the state’s growing industries.

S.C. Talent Pipeline strategies take a comprehensive, broad-based approach to identifying and addressing skill needs across key industries within a region rather than focusing on the workforce needs of individual businesses on a case-by-case, transactional basis.

The local groups will be relying on businesses to provide input on job skills needed now and in the future.

The Work Ready Communities project has grown substantially as South Carolina has become the first state in the nation to have all of its counties certified as Work Ready. Under this program and the use of WorkKeys testing, employers can match jobseekers wit jobs based on their skill sets and individuals can identify careers that align with their results.

The certification allows the county to demonstrate to potential businesses that they can provide them with a skilled workforce.

The board is working on many other projects from apprenticeships to incumbent workers training all to support South Carolina businesses.

Unemployment Trust Fund to Reach Solvency in 2015; S.C. Businesses to Pay Less in Federal Unemployment Taxes

DEW is on track to have the state’s loan to the federal government for the unemployment trust fund paid off in summer 2015 thanks in part to making a record three payments last year.

In December, the agency paid $75 million bringing South Carolina’s loan balance to $195 million and saving the state potentially $1.7 million in interest.

“Making three early loan repayments in a single year is a great sign for our state and is another example of the kind of fiscally responsible government that our administration is committed to delivering,” Gov. Nikki Haley said when the payment was announced. “Ultimately, these payments are saving our businesses and taxpayers millions in interest, and are the direct result of the record breaking employment South Carolina continues to experience.”

When the 2014 unemployment tax rate was set, the federal government estimated 1,968,209 South Carolinians were employed. As of October 2014, 2,045,499 people were employed in the state, leading to additional tax collections.

In addition, South Carolina paid approximately $70.3 million less in unemployment benefits between November 2013 and October 2014 compared to the same time frame during the previous year.

“I am excited about this extra payment because it is an outcome of our state experiencing record highs in employment during the past year,” DEW Executive Director Cheryl M. Stanton said in December. “At the same time, we have seen a dramatic decrease in benefit payments, which shows our economy is continuing to improve.”

To date, South Carolina has repaid more than $780 million of the $977 million borrowed from the federal government.

For the fourth consecutive year, S.C. businesses will only pay the minimum 0.6 percent per employee for federal unemployment taxes because the Palmetto State once again met the requirements—including making voluntary loan payments— to obtain the maximum credit. Receiving this credit means S.C. businesses will save up to $140 per worker.

South Carolina is the only borrowing state to receive the full 5.4 percent credit.

 

 

South Carolina Outpaces Nation in Work Ready Certification Efforts

Nearly half of South Carolina’s counties are now certified as work ready, outpacing the nation in an initiative that showcases the highly skilled workforce that businesses require in a competitive economy.

Eighteen counties were recently recognized for achieving certification through the South Carolina Work Ready Communities (SCWRC) initiative. The counties are: Abbeville, Allendale, Anderson, Bamberg, Beaufort, Berkeley, Cherokee, Dorchester, Edgefield, Fairfield, Florence, Greenwood, Laurens, Marlboro, Newberry, Pickens, Sumter and Williamsburg.

Certified communitiesmapThe 18 newly certified counties have all met specified workforce and education goals, demonstrating to businesses a strong workforce and commitment to economic growth. The Palmetto State now has 22 counties with this designation, which is more than any other state in the nation.

“With almost half of our counties now certified, we are well on our way to becoming the first certified work ready state in the nation,” Lt. Gov. Henry McMaster said during a December ceremony recognized the newest Work Ready communities. “The next four years will be critical, focusing on economic development and these initiatives will help bring prosperity and growth to our state. This will show the rest of the country and world that South Carolina is ready and open for business.”

SCWRC provides a framework to strengthen economic development using a community-based approach grounded in certifying counties as work ready. To become a South Carolina Work Ready Community, each county has to reach or exceed goals in the following categories: National Career Readiness Certificates (WorkKeys® testing), graduation rates, soft-skills and business support.

“Counties of all sizes are catching on to the effectiveness of the Work Ready program and realizing that certification allows each area to market itself to new and existing businesses and ultimately results in more jobs for South Carolinians,” said Cheryl M. Stanton, executive director of the SC Department of Employment and Workforce.

McMasterCWRC

Lt. Gov. Henry McMaster talks about the importance of Certified Work Ready Communities during an event in December at the State House.

The latest work ready counties join the ranks of Clarendon, McCormick, Colleton and Saluda, which previously received the South Carolina Work Ready Community designation.

South Carolina was one of four pilot states selected to participate in the ACT Certified Work Ready Community program.

Find out how your business can take part in the initiative at scworkready.org.

 

 

 

DEW Proposes Regulations to Rebuild the UI Trust Fund and Clarify Suitable Work

DEW has submitted proposed regulations that will be reviewed by the General Assembly this session. One regulation relates to rebuilding the Unemployment Insurance (UI) Trust Fund while the other relates to amending the definition of suitable work for UI claimants.

Trust Fund Rebuild

South Carolina is on track  to repay $977 million that was borrowed from the federal government for the UI Trust Fund before the end of 2015. The current outstanding balance on the loan is $195 million.

State law [South Carolina Code Section 41-31-45 (C)] states that “after the fund returns to solvency, the department must promulgate regulations concerning the income needed to pay benefits in each year and return the trust fund to an adequate level…”

Knowing that the Trust Fund is expected to be paid this year, DEW submitted a proposed regulation last year to rebuild the Trust Fund under the principle that South Carolina should never have to borrow money from the federal government again and that S.C. businesses want as much certainty and stability as possible when it comes to their unemployment taxes.

Proposed Rebuild regulation:

  • Uses a four-year rebuilding period based on the theory of a seven-year economic cycle and the desire to rebuild the fund during the good economic years.
  • Provides triggers to maintain stability for businesses in the event of an economic downturn and to avoid having to borrow money from the federal government again.
  • States that in the event that the balance of the UI Trust Fund at the end of the most recently completed fiscal year is greater than the fund adequacy target, DEW may use the surplus amount to reduce taxes in the following year.

The regulation was structured based on the current statute that was implemented to repay the loan. If the regulation is passed as written, no statutory changes would need to be made to rebuild the Trust Fund. View the regulation here.

Suitable Work

DEW is proposing to amend the suitable work regulation as a best practice recommendation from a third-party business process review. The proposed regulation is modeled after Georgia’s suitable work policy.

The regulation will provide guidance to UI claimants and the public on what DEW considers available suitable work in consideration of the claimant’s prior earnings and the length of unemployment.

Currently, claimants do not have a regulation or a statute to guide them in determining how the wage in an offer of work would be considered when determining whether the position is available suitable work and if their refusal to accept such work would be considered a disqualification. View the regulation here.

What’s  Next?

Both regulations were printed in the State Register on September 26, 2014 which opened up a public comment period on the regulations through November 12, 2014. There were not enough comments received to warrant a public hearing through the Administrative Law Court.

The regulations have been submitted to the General Assembly for review, and the General Assembly has 120 calendar days (during session) to review the regulations.

 

Unemployment Insurance Tax Update: Taxable Wage Base Changes in 2015

Unemployment Insurance taxes are charged on a certain amount of wages earned by each employee, and this is called the taxable wage base.

Per SC Code Ann. § 41-27-380, the taxable wage base increased to $14,000 in January 2015.

It had previously been $12,000. Once you have paid taxes on the first $14,000 of an individual’s wages, you do not owe any additional taxes for the remainder of the calendar year. However, you must continue to report wages earned by each individual. This is referred to as excess wages reported.

The $14,000 taxable wage base takes effect for taxes starting first quarter of 2015.

Remember, fourth quarter 2014 wage and contribution reports are due on January 31. You will use the $12,000 taxable wage base for this period.

If you have questions, please contact DEW’s Employer Tax Services Division at 803.737.3080 or uitax@dew.sc.gov.

Register Now: Workforce Development Partnership Symposium

Don’t let workforce development puzzle you.

If you’re interested in advancing our state’s workforce, mark your calendar for this year’s South Carolina Workforce Development Partnership Symposium February 25-27 at the Columbia Marriott Hotel.

registertoday

This annual event is a great opportunity to hear best practices, collaborate on future endeavors, and learn about workforce innovations to help your business prosper and improve the lives of South Carolinians .

Nearly 300 individuals from every level of South Carolina’s workforce system attend each year including: businesses, State and Local Workforce Investment Board members, elected officials, workforce professionals, staff from partner agencies, economic development, and community-based organizations.

With your business’ participation and support, South Carolina can solve the workforce development puzzle.

We hope to see you there!

Click here for Conference Registration:

Early Bird Registration:  $150 After February 16, 2015  $175

On-Site Registration: $200

Click Here for Hotel Reservations

The Columbia Marriott (800) 593-6465 or (803) 771-7000

Government Rate:  $94* *Plus Applicable Taxes *

February 5 Deadline for Government Rate

Let SC Works Find the Right Candidates to Fill Your Jobs

SC Works Online Services (SCWOS), at scworks.org, is South Carolina’s most comprehensive job-search tool, fueled by the state’s largest workforce development database.

If you’re not posting your jobs on SCWOS, you’re missing out on a pool of more than 200,000 active jobseekers who are skilled and looking for employers just like you. Last year alone, more than 5,300 employers used SCWOS to post and fill more than 148,000 jobs.

SCworks employersGain your competitive edge by using SCWOS to post your positions, pre-screen applicants and review job market trends. It’s completely free. Visit scworks.org to register your business and get started today.

 

Everyone Plays a Role in Reemployment

With the steepest declining unemployment rate nationwide, South Carolina’s economy has bolstered in 2014. In fact, more South Carolinians are working than ever before, peaking most recently at 2,050,975 in May.

The successes of the state’s economy can be largely attributed to the businesses that call the Palmetto State home. Without the commitment to hire, thousands of South Carolinians would be unemployed and unable to support their families and themselves.

But did you know that in July alone, there were still 124,670 individuals unemployed in our state? Many of these are considered long-term unemployed or without a job for 27 weeks or more. The long-term unemployed comprise 82,000 jobseekers in South Carolina alone and 3.2 million jobseekers nationwide.

Untitled-2The South Carolina Department of Employment and Workforce (DEW) offers a variety of job placement services. In SC Works centers across the state, the agency provides free skills development workshops and training opportunities to those who are eligible. Last year, DEW sent 5,643 jobseekers through training to upgrade existing skills or learn a completely new trade.

If you’re looking for that next great hire, DEW has a portfolio of interested candidates. In 2014, more than 200,000 jobseekers have searched for work using SC Works Online Services.

Let DEW play matchmaker and save you money by putting an unemployed person back to work. Here are a few of the programs DEW offers to businesses interested in hiring unemployed jobseekers with barriers to employment.

  • On-the-Job Training (OJT) – This incentive compensates you for time spent training individuals for customized skill sets. The reimbursement period varies by the specific skill set you are training for. OJT will pay up to 90 percent of your new hire’s wages for up to 26 weeks.
  • Federal Bonding – Provides six months of free insurance protection against concerns you have about an applicant’s background. This program is valued at an average of $5,000 per individual.
  • Work Opportunity Tax Credit (WOTC) – Hire an individual from a targeted population and save on federal taxes. You must submit your tax credit request within 28 days of the worker’s start date. Employees must work at least 400 days before the tax credit can be claimed. WOTC can reduce your taxes anywhere between $2,400 and $9,600.
  • Apprenticeship Credit – State tax credits can be claimed annually for up to four years on a registered apprenticeship. This incentive averages about $1,000 per apprenticeship per year.

Visit dew.sc.gov to learn more about how DEW can match you with your new hire and connect you to the right cost-savings resources. Together, we can reduce unemployment and improve the quality of life for thousands of South Carolinians.