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Empowering Growth: How State Assistance Programs Support Employee Training and Development

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Pennsylvania has a labor supply problem. Employers throughout the Commonwealth have job openings, but cannot find willing and able applicants to fill those positions. According to the U.S. Chamber of Commerce, at the end of 2023, 61.9 percent of Pennsylvania population was working or actively looking for work — a decrease from pre-pandemic statistics, and Pennsylvania had only 66 available workers
for every 100 open jobs. Attracting applicants is a challenge, but so is retaining them when competitors are seeking out the same scarce resource — employees.

In today’s challenging labor market, where recruitment and retention issues persist, investing in the development of existing employees may offer the most effective solution. By equipping employees to grow into new or expanded roles, organizations can enhance productivity while fostering loyalty and improving retention. The Commonwealth has created a number of programs to boost employment in the face of continuing labor market struggles, many of which can be utilized by individual businesses. Two such programs are discussed here.

Workforce & Economic Development Grant (WEDnetPA)

WEDnetPA is a program funded by the Department of Community and Economic Development (DCED) that provides grants to Pennsylvania businesses for the purpose of training new and existing employees in order to allow a company to stay competitive and to keep an employee’s skillset current and relevant. Employers must be in an eligible industry to apply, but most manufacturing, technology and production industries are eligible. Both small and large companies may apply.

Training grants are awarded to reimburse employers to reasonable eligible training costs up to $2,000 per employee and up to $100,000 total per fiscal year per company. Companies are limited to receive funding to only two years in a row or three out of any five-year period.

WEDnetPA funding is available to reimburse a wide range of training opportunities for employees, but the training must be for full-time employees and focus on skill building for a current job, advancement or promotion. On- the-job training and orientation are not eligible expenses. Funding is available to reimburse for training on a wide variety of topics — too many to list here. Training also may be provided by a variety of WEDnetPA partners throughout the Commonwealth. This aspect of the WEDnetPA program — flexibility for employers to focus on improving the skills of their employees most relevant to their business — is one of the major positive aspects of the program.

Foundations in Industry Training Grant Program (FIT)

The FIT program is a grant program designed to provide financial support for registered apprenticeship programs. Apprenticeships provide an opportunity for employers to provide customized training to address their needs, while providing a career pathway for an individual allowing them to earn money while learning on the job. FIT is administered by DCED, and individual businesses are eligible to apply for funding up to $3,000 per apprentice per year for up to three years. Funding is eligible to be used to pay for expenses related to instruction that complements on-the-job training. For example, funding could be used for the costs of books and training materials, to pay the salary of an in-house instructor, to pay for contracted professional training services, or general education requirements towards completion of degree work directly related to the apprenticeship.

Conclusion

Unfortunately, there is no quick fix to Pennsylvania’s labor shortage. The lack of replacement labor makes retaining the employees a company has even more important. Investing in existing training employees may be a solution both in filling higher-level positions requiring advanced knowledge and skills, while also providing opportunities for advancement in the organization in lieu of looking elsewhere for those opportunities. Training, however, takes time and can be costly. Utilizing programs advanced by the Commonwealth to address the labor shortage may make the cost-proposition of training workable where it may not be otherwise feasible.

For more information about MacDonald Illig Attorneys, visit macdonaldillig.com or call 814/870-7600.

Brian Cressman is a partner at MacDonald Illig Attorneys and a member of the firm’s Business Transactions, Trusts & Estates, Real Estate, and Education Law Practice Groups