AN OPPORTUNITY TO FUND EMPLOYEE TRAINING AT LIMITED TO NO COST FOR BUSINESS

by | Mar 26, 2019

 

AN OPPORTUNITY TO FUND EMPLOYEE TRAINING AT LIMITED TO NO COST FOR BUSINESS

Every company and every business trains its employees. On and off the job, direct and indirect – training occurs every day of the week. Businesses hire consultants and advisors to offer guidance and resources and enhance the performance of their employees on a regular basis to attain business success. This training doesn’t come without a cost – however, there is a program that enables businesses to recoup some of the financial costs needed to train employees!

The Employment Training Panel (ETP) was established in 1982 and since its conception has been established as the California’s premier program for supporting job creation and retention through workforce training. Principally funded through the California Employment Training Tax, the ETP is a performance-based statewide workforce training and economic development program which supports California’s economy by providing financial assistance to California businesses in support of customized worker training for new and existing employees. Ongoing investment in employee training helps California businesses stay competitive, productive, and profitable while supporting the creation and retention of high-wage, high-skilled, secure jobs in industries that have the greatest positive impact on California’s economy.

Since many employers are limited in their capacity to allocate financial resources for training, the ETP program helps fill this gap. For W-2 employees, 0.1 percent of the first $7,000 of wages paid to each employee in a calendar year is collected in taxes for the Employment Training Fund (approximately $60 million to $100 million per year). This program is implemented by the State to fulfill the State Legislature’s intention to maintain a viable state-wide economic climate by encouraging businesses to adapt to a high-performance workplace.

The ETP is a significant economic development tool for employee attraction and business retention. ETP works in partnership with businesses and the government to provide funds for training California’s workforce in the skills needed for businesses to remain viable and successfully compete in the global economy, while providing workers with reasonable wages and secure employment. In general, ETP funds $22.00 to $26.00 per employee per hour, not to exceed 200 hours of training in a 21-month time period. As an example, a company of 50 employees could gain ETP funding as high as $260,000 to provide training, subject to some conditions.

So, training around culture, team development, interpersonal relationships, accountability, communication, consensus building, and other skills that improve the effectiveness of employees and elevate the success of businesses are opportunities that can be funded through ETP. Why not hire the best and use the funds of the State to pay the cost of training, thereby increasing the skills of your employees?

Levels of Reimbursement

The ETP funding is performance based. In general, the ETP has three levels of reimbursement:

  •      The ETP will reimburse your company per employee per hour for any classroom or laboratory training that is provided by an outsourced training provider (subcontracted vendor).
  •      The ETP will reimburse your company per employee per hour for any classroom or laboratory training that is provided internally, instructed by company personnel.
  •      The ETP will reimburse your company per employee per hour for certain kinds of computer-based training (CBT).

Why the ETP Funding Works

  •     Employers make the sole decision regarding the content of the training program.
  •     Training investments help companies become more profitable locally and globally.
  •     Employers and their consultants and advisors assume responsibility for training.
  •     Performance-based contracting helps to ensure success.
  •     ETP funding is a catalyst for future workforce training and is a benefit to offer new employees and to retain current employees.

Peer Executive Boards has formed an alliance with Training Funding Source to assist businesses in the processing of applications for ETP funding with the EDD. Because we are able to get through the paperwork of the bureaucracy of the Employment Development Department with a high past success rate, we have developed an easy, effective, and efficient way to capitalize on these funding resources.  Further information on the ETP program can be obtained at www.etp.ca.gov. Call us at Peer Executive Boards to find out how we can facilitate your employee training program: 714-624-4552.

0 Comments

Share This