Behind The Sound Bite: Workforce Training
Small businesses compete with each other, but when it comes to training, some of them have similar needs. Now, the state is going to allow small businesses to partner with other businesses or colleges to apply for employee training grants, according to Joanne Goldstein, the state secretary of labor and workforce development.Goldstein said during a recent visit to Worcester that the move is meant to encourage more small businesses to apply for the grants, which come from the state’s Workforce Training Fund. Since the fund was created, small businesses have had to apply separately for the grants, which can be as large as $250,000.
What is the reason for allowing businesses to partner?
The purpose of the rule change is to encourage smaller businesses to seek training. Some of those businesses may not have HR personnel to fill out the grant applications and implement training programs. Under the new rule, a third party, such as a community college, workforce board or an industry association could play that role.
Why were these partnerships not allowed before?
Small businesses partnerships were never explicitly forbidden in applying for training grants. Partnerships could apply, but there was no clarity on how the group would operate and whether grant funding could be used for bringing various businesses together. Under the rule change, 10 percent of grants can be used for that purpose.
When will the change take effect?
The so-called “small business consortium applications” will be accepted for the fall round of Workforce Training Fund grants.
How is the Workforce Training Fund replenished?
The fund was created 13 years ago by a state law and is funded entirely by unemployment taxes paid by employers. Since then, the state has spent $44.3 million to train more than 61,000 workers across the state.
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