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Massachusetts Workforce Training Fund Program – Improving Employee Productivity


If you haven't heard of the Workforce Training Fund you're not alone. This is one of the best kept open secrets in Massachusetts. Part of the unemployment compensation tax every employer in Massachusetts pays goes directly into the Workforce Training Fund programs (with the unfortunate acronym:  the WTF Program). The money in this fund - averaging about $21 million per year - is not available to legislators for other civic uses and often runs a surplus. The program provides matching money to employers for employee training. If your business is committed to continuing education and workplace skills development this fund will reimburse you for half your expenses. It's a great way to enhance employee productivity, and is about as close to free money for Massachusetts employers as you'll see anywhere.

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There are several versions, but if you're reading about this for the first time consider the simplest to be The Express Program. The Express Program is for employers with less than 100 employees and there are over 2,000 training programs to choose from. The overview page is linked here. To see if you qualify click the qualifications page located here; most small business employers do qualify. Next, select a course that's appropriate for your business needs.  All courses listed have been approved by the state so they already meet due diligence requirements. The training course search also allows you to delineate location, industry, cost, and other useful criteria.

The Express Program took us about a month of fairly tedious form submissions and follow ups, but proved well worth the effort. For example, one step asks for your DUA number as though it's your Social Security number or Federal Tax ID number (it's your unemployment insurance number as it appears on your unemployment insurance notices). The second time around obviously goes more smoothly because you know what to expect. 

Once a course is selected you then apply for official acceptance...the fun part referenced above. You will schedule and pay for the program in full per the terms of the training sponsor selected, then the WTF Program will reimburse you its half upon completion of the course. This ensures that you have some skin in the game and are committed to the course’s completion. In our office we have enrolled more than half our staff, including five customer service reps and our manager, in a client development training program. This program focuses on listening skills, understanding personality styles, and offers other tips useful for any front line service staff. Dedicated sales people are continuing with a follow up program which focuses on the later stages of the sales process. We are committed to engaging more staff in additional programs later in the year. The returns in productivity and customer satisfaction from the first program, at this writing only half completed, are already noticeable.

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Other employers we network or do business with have successfully taken courses in time management, customer service, team building, and other areas that small businesses generally don’t have the resources to create, plan and execute internally. Consider it outsourcing non-core, but useful, business skills....with your unemployment tax paying for half. It's a pretty good deal!

The General Program is for the big dogs:  larger companies that can dedicate resources toward completing the more lengthy and complicated grant approval process, and that are looking for much larger payoffs. While the General Program provides full reimbursement for the training costs, companies must demonstrate that they are kicking in 50% of the overall cost, which may include labor and fringe benefits.

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The staff at the Department of Workforce Development tells you that this process takes about 60 days, but given the complexity of what's required, plan for more time or engage a professional. The General Program requires that you calculate and show the return on investment, and document how the company's own resources match the grant amount. You may include wages of all participants plus 20% for fringe benefits while participating in training, the time cost of writing the grant, and so forth. But even though it is not as easy as the program folks may tell you, many companies are awarded high 5- and 6-figure grants.  If the training program is a good match for your company's needs, showing a return on investment of other people’s money should be attractive.

Finally there is a Hiring Incentive grant: hire someone who was unemployed and receive up to $5,000. We have not used this program yet, so will not comment further here.

Overall, this is state assistance, paid for already through your unemployment taxes.  It offers a broad range of training programs to enhance your company's human capital, which is often the greatest asset of a business. Reduce the risk to this valuable asset (such as with turnover or stagnation) by investing in its improvement. Why would you NOT take advantage of developing it for shared employer/employee success?

If you wish to discuss further with an insurance professional at Gordon Atlantic Insurance, please call us toll free at (800) 649-3252. Prefer to type versus talk?  Click below!

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