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Plan: Arizona PYs 2024-2027
Unified Plan U

Section: Adult, Dislocated Worker, and Youth Activities

Narrative: b. 1.

Published
Located in:

b. 1. Work-Based Training Models

If the State is utilizing work-based training models (e.g. on-the-job training, incumbent worker training, transitional jobs, and customized training) as part of its training strategy and these strategies are not already discussed in other sections of the plan, describe the State’s strategies for how these models ensure high quality training for both the participant and the employer.

Current Narrative:

The State utilizes work-based training to effectively serve job seekers, workers, and employers. Arizona’s BST takes the lead in promoting the training model through its business outreach and engagement, wherein the reciprocal benefits of work-based training are highlighted: reduction in training costs, development or enhancement of workers’ requisite skills, improved job satisfaction and productivity, or layoff aversion. 

Specific information on work-based training is provided as follows:

  • On-the-job-training (OJT): Provides participants work experience and new transferable skills of the training program, which are ideal for individuals with barriers. LWDBs may reimburse employers up to 50 percent of the worker’s wages, and employers that provide OJT are required to hire participants that successfully complete training. LWDAs also have the flexibility to increase the reimbursement to 75 percent when factors, as described in TEGL 19-16, are met and documented.
  • Incumbent worker training: Averts layoffs by transitioning employees to other positions that will not be eliminated and create backfill opportunities for less-skilled employees. RR Coordinators work with employers who have notified the state and LWDBs of imminent layoffs. This program provides an option of training employees in new skills to transition the employee into other positions and avert layoffs. 20 percent of the LWDB’s total Adult and DW funds may be used for incumbent worker training. LWDBs may reimburse according to the following schedule: (1) employers with <50 employees: grant reimburses 90 percent and employer matches 10 percent; (2) employers with 51-100 employees: grant reimburses 75 percent and employer matches 25 percent; (3) employers with >101 employees: grant reimburses 50 percent and employer matches 50 percent.
  • Customized training: Assists employers in training current employees and participants referred to the employer for both pre-vocational and/or incumbent training. Customized training may cover topics such as the introduction of new technologies, new production or service procedures, as well as upgrading to new jobs that require additional skills. Customized training will also be used as an incentive to attract businesses to relocate to Arizona and required to pay for a significant portion of the training costs based on the number of employees participating, the wage, and other factors. Customized training requires a commitment from the employer to hire the participants after successful completion of the training program.

In addition to business outreach and engagement, the following strategies help ensure high-quality training for employers, workers, and job seekers:

  • Prioritization of work-based training that is related to in-demand occupations, aligned with career pathways and industry sectors, and results in a recognized postsecondary credential; 
  • Collection and analysis of performance data on work-based training programs; 
  • Policy that prohibits work-based training contracts with employers who fail to provide participants with long term employment opportunities, with wages, benefits, and working conditions comparable to other employees who have worked a similar amount of time and who are doing the same type of work;
  • Monitoring of onsite work-based training to ensure training, wages, hours, benefits, and working conditions are provided in accordance with the contract; and
  • Tracking and monitoring of training participants’ performance and progress to determine supportive service needs, the appropriateness of the training activity, whether placement in unsubsidized employment has occurred.