Tag: InclusiveSD

Inclusive Growth Spotlight: Booz Allen Hamilton

By San Diego Regional EDC,

To celebrate and inspire the efforts of regional employers, EDC’s new Inclusive Growth blog series will highlight San Diego companies helping to drive progress on the 2030 Inclusive Growth goals.

Launched in 2018 and informed by a partnership with the Brookings Institution, the Inclusive Growth initiative sets 2030 goals for San Diego related to increasing: 1) the supply of talent, 2) quality small business jobs, and 3) newly thriving households. The goals inform San Diego’s economic priorities and make the business case for economic inclusion.

Regional talent demand remains high

To maintain economic competitiveness, the region needs 20,000 students per year completing post-secondary education within six years of graduating high school. These include certifications, career technical education, and college degrees. Progress toward the goal has increased incrementally since 2017 yet completions have shown signs of tapering; the region still falls short of the goal; and the local supply of talent continues to be a critical priority for San Diego employers.

Talent scarcity has become the new normal as hiring demand exceeds the supply of talent across industries. Compounding this challenge, student success is demographically uneven in the region. Despite making up 35 percent of the population, Hispanics and Latinos only account for 17 percent of residents over 25 years old with at least a bachelor’s degree. Critical to growing the local talent pool is creating more opportunities for Black and Latino students to succeed. Employer-led talent pipeline development efforts are critical to the future of San Diego’s economy and Booz Allen Hamilton is among those working toward a solution.

Employer-led solutions

Combining 110 years of strategic consulting expertise with the perspectives of diverse talent, Booz Allen leverages innovative solutions for its clients in defense, cybersecurity, healthcare, and energy. In the San Diego metro area, Booz Allen employs more than 1,200 people with a range of technical expertise contributing to the region’s reputation as a hub for innovation and a catalyst for groundbreaking ideas.

While San Diego has a highly educated workforce with a proportion of bachelor’s degree holders that is seven percent higher than the national average, Booz Allen is among many employers across San Diego still facing a talent scarcity challenge. A smaller talent pool makes competition for technical professionals more intense, especially as the presence of major tech companies has increased over time and local startups continue to flourish.

To help expand access and exposure to quality jobs in STEM, Booz Allen and the Booz Allen Foundation are deeply committed to supporting San Diego youth.

Here’s how the company is committing to Inclusive Growth:

  • For the past 10 years, Booz Allen has partnered with the USS Midway Museum to offer STEM education programming to elementary and middle school students in Southeast San Diego. This year, the Booz Allen Foundation is underwriting scholarships for 1,000 students, predominantly from Black and Latino communities.
  • Since 2023, the Booz Allen Foundation has provided resources to Southwest San Diego around Lincoln High School (LHS) and its surrounding community. Recognizing that schools are part of a larger ecosystem, the company supported not only LHS but also the elementary and middle schools that feed into it, along with local organizations like Girl Scouts of San Diego and MANA de San Diego with a focus on youth exposure to STEM. Last year, the Foundation supported LHS’s engineering program including its inaugural FIRST robotics team. With this support, the robotics team made the regional robotics competition, earning a spot at the FIRST international championship in Houston. For many participants, this was their first time flying, staying in a hotel, and dining at a sit-down restaurant—a truly life-changing experience. Additionally, LHS students attended the San Diego State University College of Engineering Expo, where they connected with first-generation college students thriving in STEM fields, helping them envision their own future in these careers.
  • The company is also a strong supporter of the Elementary Institute of Science (EIS), a Southeast San Diego-based organization that has provided equitable access to STEM since the 1960s. EIS has partnered with the Booz Allen Foundation to take its mission to new heights. Together, they are developing new AI programming and teacher training to stay ahead of rapidly changing technology, providing stipends for internships to help talented students earn money while advancing their education and careers, funding scholarships for students to attend EIS STEM camps, facilitating volunteer days to support the community, among other efforts.
  • Lastly, the Booz Allen Foundation is proud to support Rady Children’s Hospital’s Medical Academy, which provides high school students with valuable learning opportunities in healthcare. Through its Equity Grant, the hospital is connecting students with Booz Allen employees to explore the fundamentals of artificial intelligence (AI) and its emerging applications in healthcare. This initiative empowers students to gain exposure to cutting-edge technology, expanding their career possibilities in both healthcare and AI, and preparing them for success in these high-demand fields.

Join the movement

Progress on EDC’s 2030 Inclusive Growth goals is only achievable with and through the region’s employers who must be committed to scaling innovative and intentional solutions in San Diego. Companies like Booz Allen are helping to collectively pave the way toward a more inclusive regional economy.

To learn more and get involved in EDC’s work, contact:

Teddy Martinez
Teddy Martinez

Sr. Manager, Research

How Advancing San Diego funded internships help students and businesses

By Olivia Jones,

Advancing San Diego: Bridging education and industry

EDC’s Advancing San Diego (ASD) internship program, run in partnership with the Border Region Talent Pipeline K-16 Collaborative and Imperial Valley EDC, has transformed how students across San Diego gain early career experience, while helping local businesses address talent needs. In summer 2024, the ASD program placed 358 interns at 104 companies across San Diego and Imperial Counties, creating an invaluable bridge between education and industry in high-growth, high-wage fields like engineering, computing, and business. That’s up from 48 interns placed in summer 2023. This program plays a crucial role in addressing regional talent shortages, helping local companies access vetted, diverse talent and offering students paid, hands-on learning opportunities in high-demand industries.

Summer 2024 by the numbers

*Priority populations include low-income individuals, first-generation college students, current community college students or community college transfers, veterans and active-duty military students, and students with disabilities

Addressing the talent gap with community impact

At the heart of ASD’s mission is a commitment to reaching under-resourced communities, ensuring that students from diverse backgrounds gain valuable career experience while helping local businesses address critical talent needs. Companies apply each year by early spring to host students from Advancing San Diego Verified Programs to be interns. These Verified Programs are selected based on industry-determined criteria, including industry engagement, diversity, equity, and inclusion, as well as curriculum that teaches the most in-demand skills in computing, engineering, and business. This approach ensures that students’ skills align with evolving workforce demands, enhancing the overall impact of the internship experience.

Once companies are selected, students from Verified Programs apply for their top five preferred positions. There are not enough positions for every student, so those who identify with the program’s priority populations get preferred access to available positions, with 73 percent of the interns identifying with one or more of the priority populations this past summer. Importantly, ASD provides financial support through the K-16 Collaborative, covering competitive intern wages and saving local companies more than $2 million in payroll costs, ensuring businesses can prioritize mentorship and on-the-job training over recruitment logistics.

Real-world experience and career advancement

Every year the ASD internship program provides students with valuable work experience directly linked to their academic pursuits, equipping them with practical skills and career confidence. At the same time, EDC’s program enables companies to benefit from student contributions, with a 17 percent conversion rate of interns into full-time employees in 2024. For employers, this means reduced time spent on recruitment and a pipeline of highly motivated, well-prepared candidates who bring immediate value.

“I was drawn to this internship program because of my commitment to social mobility and reducing socioeconomic gaps. Companies have a pivotal role in building a more equitable future, especially by empowering the next generation of talent. My favorite part about working with the Advancing San Diego interns at ChakraTech has been their contagious enthusiasm and unwavering dedication to the work.”

—Ravi Chawla, founder and CEO of ChakraTech; ASD summer intern host

Is your company interested in hosting summer interns in 2025?

LET US KNOW BY FILLING OUT THIS FORM

Learn how employers can bolster the local talent pipeline

Read our op-ed

To learn more and get involved in EDC’s work, contact:

Olivia Jones
Olivia Jones

Coordinator, Talent Initiatives

Op-ed: Employers can bolster the local talent pipeline. Here’s how.

By Sidd Vivek, Mark Cafferty, and Dr. Sunita Cooke,

Op-ed originally published by the San Diego Union-Tribune

Authored by Sidd Vivek, President and CEO at Junior Achievement of San Diego and Imperial Counties; Mark Cafferty, President and CEO at San Diego Regional EDC; and Dr. Sunita Cooke, President and Superintendent at MiraCosta College

The success of our regional economy hinges on more than the businesses that power it; it thrives when our community, education systems, and industry come together to create opportunities that benefit all San Diegans. Internships and career-connected learning are key to aligning local students with regional jobs and overcoming the talent shortages threatening our economic competitiveness.

Demand for workers in the innovation economy is set to double over the next few years, making it imperative to connect young people to career pathways and professional networks in San Diego’s leading industries. Talent from historically underserved communities remains heavily underrepresented in the local innovation economy; in fact, Black and Hispanic people comprise 50 percent of the region’s K-12 population but only 24 percent of innovation cluster workers. Supporting these youth in accessing high-growth, sustainable careers is key to addressing San Diego’s socioeconomic disparities and creating a talent surplus.

That’s why, together with key local partners, San Diego Regional EDC is focused on placing students in paid work-based experiences and/or internships across the region. In collaboration with the Border Region Talent Pipeline K-16 Collaborative, Imperial Valley EDC, Junior Achievement of San Diego and Imperial Counties, and the County of San Diego led by Chair Nora Vargas, 443 local youth were placed in paid summer internships and/or work-based learning experiences at more than 125 businesses across San Diego and Imperial Counties including Illumina, Deloitte, Booz Allen Hamilton and Cox Communications and many small businesses. Through local industry partners—and supplemented by philanthropy—students were paid more than $2.7 million in collective wages and employer support services, and many are already being hired on for full-time opportunities. This work goes beyond offering students a paycheck—transforming futures and driving long-term economic growth for San Diego.

When employers invest in career-connected learning experiences, they address both immediate staffing needs and strategically build a future workforce pipeline tailored to their skills demands. According to the National Association of Colleges and Employers, approximately 72 percent of US companies will offer their interns full-time positions, and 80 percent of employers cited their internship programs as the talent acquisition technique with the best return on investment.

It is not just businesses that benefit. Forbes reported that students who completed paid internships receive twice as many job offers and secure a higher first-year salary than students with no internship experience, even when controlling for industry and demographic data.

Work-based learning equips students with industry tools and professional skills while helping them identify career paths aligned with their strengths and build a network of support for the future. Young people’s creativity and diverse perspectives can spark fresh ideas that drive businesses forward. As more students transition from interns to full-time roles, they mentor the next generation, creating a self-sustaining growth cycle that fuels innovation and economic mobility across San Diego and Imperial Counties.

This complex work requires cross-sector collaboration, from K-12 school districts and nonprofits to community colleges, universities, and employers who need the talent to fill critical functions. For our region—we must keep our sights set on fostering innovation, connecting youth to in-demand, sustainable wage career pathways, and building a talent pool that reflects our people.

With students back in school for the fall, we invite our regional businesses to join us in this vital work. From participation in career panels to hosting work-based learning for high school students or post-secondary apprentices and interns, a commitment by San Diego’s companies will be the difference-maker for this region and our youth.

It is only with and through San Diego’s employers that we can meet our Inclusive Growth goals, and ensure our economy remains competitive, innovative, and resilient for years to come. The benefits are clear: stronger businesses empowered students, and a vibrant, accessible economy that works for everyone.

What’s next?

To learn more and get involved in EDC’s work, contact:

Bridgette Coleman
Bridgette Coleman

Manager, Talent Initiatives

Small, localized commitments mean huge economic impacts in San Diego

By Eduardo Velasquez and Jennie Brooks,

Op-ed originally published by San Diego Business Journal

Authored by Eduardo Velasquez, Sr. Research & Economic Development Director at San Diego Regional EDC, and Jennie Brooks, EDC Board Chair and Executive Vice President at Booz Allen Hamilton

Hosted in San Diego last month, the Department of the Navy Gold Coast Small Business Exposition brings together hundreds of government and defense contracting leaders to talk all things DOD procurement. Self-proclaimed as the big business event for small businesses, Navy Gold Coast serves to ‘leverage small business capabilities to seize opportunities for strengthening national security.’

Boasting the largest concentration of military assets in the world, San Diego has an incredible and important opportunity to tap our region’s small businesses not only to support military interests, but also to drive inclusive economic growth across the region.

As we track toward our region’s 2030 Inclusive Growth goals, it is imperative that our economic development strategies prioritize small businesses, which represent more than 98 percent of all local businesses and employ 59 percent of San Diego’s workforce. They are not just contributors to the local economy; they support jobs for 807,540 San Diegans across industries. But they are challenged to remain competitive. Small businesses pay on average 38 percent less than their large business counterparts, and in 2023, under one-third (or 244,794) of small business jobs were considered quality jobs—those paying $46,846 plus healthcare benefits. Not to mention the challenge small businesses face in succession planning, accessing capital, and generally staying afloat in one of the most costly regions in the country.

Together, San Diego’s large employers can have enormous impacts on our region’s small business community. In fact, a 2021 EDC study found that anchor institutions—such as universities and hospitals, as well as utilities, local government, and even sports teams—that are physically bound to the region collectively purchase tens of billions of dollars in goods and services every year. Yet, it is estimated that local anchors spend about one-quarter of all procurement dollars on suppliers from outside the region, with a fraction going to small and minority-owned businesses. EDC found that if anchors shifted just one percent to local, small, or diverse suppliers, San Diego would see millions of dollars in economic impact and thousands of jobs.

Booz Allen Hamilton has been committed to partnering with small and diverse suppliers across the San Diego region. In 2023, the firm’s local spend in the San Diego area with small businesses was more than $50 million, a 24 percent increase from 2022. We’re also inspired by San Diego Gas & Electric, the County of San Diego, and others making measured and meaningful commitments to support our region’s small and diverse businesses.

So, what can you do? To maximize their collective economic development impact, we need three key things from the region’s anchors.

First, we need consistency and coordination, both in terms of definitions and processes, to increase accessibility. Every institution tracks its spending differently, and each has its own requirements and processes for bidding out contracts. A consistent set of definitions and even some coordination in bidding processes will not only facilitate tracking and collective goal setting, but also increase access to a new pool of potential vendors and suppliers.

Second, leadership and resourcing are needed to establish and meet procurement goals. It is important that both organizational leadership and procurement staff agree on the value of these goals, thus creating accountability, aligning incentives, and implementing change.

Last, anchors leverage their large prime contractors to meet procurement goals. Take construction for example: large projects are often sub-contracted out by prime contractors to smaller suppliers and vendors, and many anchors lack visibility into these sub-contractors. Engaging primes in anchors’ goal setting increases visibility and opportunity for smaller suppliers while also ensuring that prime contractors have the capacity to fulfill project deliverables.

With intentional and localized commitments, we can create an economy that benefits more San Diegans, grows more jobs, and helps small businesses become the Qualcomms, Dexcoms, and Booz Allen Hamiltons of the future.

Let Navy Gold Coast serve as a potent and timely reminder to prioritize small businesses and inclusion for the betterment of our economy.

To learn more and get involved, contact:

Eduardo Velasquez
Eduardo Velasquez

Sr. Director, Research & Economic Development

San Diego nearly surpasses Inclusive Growth goal for quality jobs, and why the work isn’t over yet

By Teddy Martinez,

On August 14, EDC hosted its second Inclusive Growth Roundtable of the year, convening 40 regional stakeholders, service providers, and small business leaders to share the latest data on quality small business jobs and ground-truth our findings.

The 2030 Inclusive Growth goals focus on three key pillars core to any strong regional economy: quality small business jobs, a skilled talent pipeline, and thriving households. EDC analyzes the region’s progress to each goal annually. During the August gathering, we focused specifically on the region’s progress toward adding 50,000 new quality small businesses jobs by 2030. EDC currently defines a quality job as a business with fewer than 100 employees that offers at least $23 per hour and provides health insurance.

EDC’s Vice Chair of Inclusive Growth Lisette Islas kicked off the dialogue reminding us why this work matters, and celebrating the intentional and collaborative journey we have been on as a region since 2017. We’ve seen significant progress in San Diego becoming a more inclusive economy, but there is more work to be done. Below is a recap of the data shared, insights gathered, and issues we see on the horizon.

The backbone of San Diego’s economy

In San Diego, small businesses represent 98 percent of all firms and account for 59 percent of total employment. The impact that small business owners have on local jobs cannot be overstated. Despite significant contributions, small businesses struggle to keep up in an increasingly expensive market.

The smaller the business, the larger the challenge for providing a competitive wage. In fact, small businesses offer 38 percent lower average wages compared to companies with more than 100 employees. Microbusiness (<4 employees) face the largest challenge when it comes to relative compensation. This trend has worsened since EDC began tracking quality jobs data in 2017, with the relative wage gap widening even more last year.

Quality small business jobs surge

The latest data shows that small businesses have steadily increased the proportion of quality jobs, with 28.8 percent of all small business jobs now meeting the wage threshold including health benefits. The latest data refresh shows that quality small business jobs surged last year. So much so, the region has nearly surpassed the 2030 Inclusive Growth goal, adding 48,481 new quality jobs.**

The data is gratifying and certainly reflects the importance and impact of efforts to increase opportunities for more small business owners, but there is more than this metric to unpack.

Inclusive Growth remains paramount

The world has changed dramatically in the last seven years since EDC launched the Inclusive Growth Initiative. In that time, the region experienced tremendous economic growth followed by a global pandemic that curtailed progress. Those hit the hardest were women and people of color in San Diego. Since then, we’ve seen a strong economic recovery, yet rising tides have not lifted all boats.

San Diego’s lowest paying occupations are disproportionately held by marginalized and under-invested-in populations. While the surge in quality jobs is reassuring, the reality is that more than two-thirds of small business jobs still fall below the wage threshold and larger businesses still have the advantage when it comes to paying competitive wages.

Also important to note, lower paying jobs are disproportionately held by people of color who are noticeably underrepresented in the highest paying occupations in town. For example, more than half of Healthcare Support occupations in San Diego, which include nursing, medical, and dental assistants, are held by Black or Latino people, but the average total wage is below $20 per hour. Conversely, less than 20 percent of Computer and Mathematics occupations, which include statisticians, programmers, and software developers, are held by Black and Latino people but pay more than $50 per hour on average.

During the event, we also shared recently conducted survey results of 603 local small business owners which found that people of color have contrasting challenges when it comes to owning a business. Done together with SBDC, the survey results revealed that securing necessary funding is a major challenge for nearly two-thirds of minority small business owners. This highlights the importance of programs that tailor outreach, education, and funding resources for minority business owners to stay competitive in San Diego.

EDC’s commitment to increasing quality small business jobs with an inclusive lens is embedded into our programmatic work, yet we recognize that the road ahead will require sustained regional collaboration. We invite you and your organizations to join this movement so that San Diego remains competitive, and that all businesses and their employees continue to benefit from the region’s economic success.

Teddy Martinez
Teddy Martinez

Sr. Manager, Research

** A previous version of this blog incorrectly stated 30.3 percent of all small business jobs now meet the wage threshold including health benefits, and that small businesses added 60,234 new quality jobs to the region, surpassing our Inclusive Growth goal. The data has been corrected and updated in line above as of September 5, 2024.

Reflections on San Jose: EDC Leadership Trip

By Mark Cafferty,

As I was sitting on my Southwest Airlines flight back from San Jose, I looked into the rows ahead of me to see a scene that has become synonymous with our EDC Leadership Trips: Our former chair and the National Head of Commercial and Industrial Banking at Western Alliance Bank Julian Parra leaning into the aisle to have a discussion with our current vice chair for inclusion and the CEO of Lifeline Community Services Lisette Islas. Also leaning into the conversation were Neighborhood House Association President and CEO Rudy Johnson, and the COO of Connect Christie Marcella. Meanwhile, a row behind them, ResMed’s Head of Global Inclusion and Diversity Sarah Hassaine was in a deep and enthusiastic conversation with Chief Innovation Officer for the City of Carlsbad David Graham. All smiling and laughing. All heading home after two and a half days of deep thinking, work, and reflection in another California city and region dealing with many of the same challenges and opportunities we have back home. All recommitted to an inclusive economic development agenda they helped to create.

Getting 35 local business, higher education, nonprofit, and civic leaders to set aside time to travel, learn, and grow together is difficult. Finding the kind of leaders who can carry all of their knowledge and expertise into every conversation while checking their egos at the door might even sound impossible. But here we are once again, returning home with even more energy, enthusiasm, and focus than we had when we left.

Our time in San Jose reminded us of just how far we have come since we took our first leadership trip to Nashville almost nine years ago. Hearing the stories of employer engagement and commitment to inclusion, learning about deep and meaningful public-private partnerships, sitting in on an hour-long conversation between San Jose Mayor Matt Mahan and San Diego City Councilmember Raul Campillo, and enjoying our time together at Mexican Heritage Plaza and the Google HQ Campus all made for meaningful and inspirational moments. Sharing it all with such a special and committed group of San Diego leaders and friends makes it almost magical.

But it isn’t magic that that will move the needle to ensure that we train enough skilled workers, support the development of enough quality jobs within our small businesses, and create the conditions that will ensure more resilient and thriving households throughout our region. It is hard, focused, intentional, and purposeful work. It requires an unwavering commitment to the belief that inclusion is a true economic imperative. And it only happens when we continuously find, leverage, and support this group of thoughtful, committed citizens who together can help our region meet our 2030 goals.

For those of you who have been a part of this journey with us over the last several years, thank you for your investment, leadership, and support. And for those of you who would like to be a part of the most meaningful, intentional, and inclusive economic development work in the nation, reach out, lean in, and join us in endorsing and advancing these goals. You will absolutely gain more than you give. I guarantee it.

Returning home with clearer eyes and a fuller heart—Mark

Mark Cafferty
Mark Cafferty

President & CEO

Endorse the 2030 goals

See our progress

EDC report: 2023 Inclusive Growth Progress

By San Diego Regional EDC,

Report: San Diego affordability crisis threatens latest jobs and talent gains

Today, San Diego Regional EDC released its 2023 Inclusive Growth Progress Report. With updated data and bold objectives set around increasing the number of quality jobs, skilled talent, and thriving households critical to the region’s competitiveness, the report measures San Diego’s growth and recovery, and spotlights the greatest threats to prosperity.

2023.inclusivesd.org

Making the business case for inclusion, EDC releases this annual report to track progress toward the region’s 2030 goals: 50,000 new quality jobs* in small businesses; 20,000 skilled workers per year; and 75,000 newly thriving households**. Since its launch in 2017, the initiative has rallied public commitments from County, City, academic, and private sector leaders who are leveraging the Inclusive Growth framework to inform their priorities, tactics, and resource allocation. While much about the economy remains uncertain, intentional and consistent efforts by a diverse set of regional stakeholders will be key to achieving these goals.

“Large and small businesses, nonprofits, and government all play important roles in building a strong local economy and expanding economic inclusion,” said Jennie Brooks, Executive Vice President at Booz Allen Hamilton and EDC Board Chair. “Booz Allen is empowering its employees with training in technologies such as Artificial Intelligence and is committed to helping prepare local, diverse San Diegans for tech careers of the future. We are proud to partner with local nonprofits and small businesses to make advanced technology broadly accessible to students and create a supportive ecosystem in San Diego to drive inclusive economic growth.”

THE STORY BEHIND THE DATA

Over the past decade, the San Diego region has experienced a notable upswing in general prosperity, standard of living, average wages, and productivity, including a full recovery from the pandemic across virtually every sector. Yet, these gains have not been evenly distributed.

In terms of racial, geographic, and overall inclusion, San Diego has slipped; the pandemic has hit lower-income households and minority communities hardest. The relative poverty rate has increased while median earnings and the household wage gap between white and non-white populations has widened. Record-level inflation has hit struggling San Diego households hard, and high operating costs have degraded the ability of businesses to attract and retain talent.

Despite these obstacles, San Diego is once again making headway on the quality jobs and skilled worker goals; see charts below. 2021 saw an uptick in small business jobs as well as the highest increase in post-secondary education (PSE) completions in more than a decade.

However, decreasing affordability coupled with uneven economic prosperity not only threatens that progress but indeed may mean that San Diego falls even further behind its peer metros on overall prosperity. The region now needs to add 125,000 newly thriving households by the end of the decade to meet the goal.

The region’s expensive and limited housing market has exacerbated inflation across all categories, with fewer than 44 percent of San Diego households considered thriving. The affordability crisis will primarily impact Black and Latino households, of which more than half are low-income, and continue to challenge employers’ ability to attract and retain talent—posing the single greatest threat to the region’s economic growth.

“While EDC’s report demonstrates San Diego’s remarkable resilience in the face of the pandemic, our jobs and talent gains are being diminished by the region’s affordability crisis. Unless we get this right, San Diego will always be catching up,” said Lisette Islas, Executive VP and Chief Impact Officer at MAAC, and EDC Vice Chair of Inclusive Growth.

Join the movement

Using a demand-driven, employer-led, and outcomes-based approach, San Diego private, public, and community leaders must deploy creative solutions to achieve these 2030 goals. EDC invites the community to join us at one of two upcoming webinars to learn more about the data and how to get involved:

“We’re seeing HR departments dissolve degree requirements, big buyers redirecting procurement spend, governments streamlining permitting processes, and developers prioritizing on-site childcare. This is the level of regional adoption required to move the needle on inclusion, and EDC is committed to continuing to tell a data-driven story to make the business imperative clear. San Diego’s future depends on it,” said Teddy Martinez, Senior Manager, Research, San Diego Regional EDC.

Read the full report at 2023.inclusivesd.org, and all previous updates at progress.inclusiveSD.org. 

The initiative is sponsored by Bank of America, City of San Diego, County of San Diego, JPMorgan Chase & Co., San Diego Gas & Electric, Seaport San Diego, Southwest Airlines, and University of San Diego Knauss School of Business.

more at inclusiveSD.org

*Quality job = $45K wages + healthcare benefits.

**Thriving household = total income covers cost of living for renter- or owner-occupied households, at $79K and $122K respectively.

Seattle Leadership Trip: An exercise in authenticity

By Lisette Islas,

Authored by Lisette Islas, Executive VP and Chief Impact Officer at MAAC, and EDC Vice Chair of Inclusive Growth

“Clear eyes, full hearts, can’t lose.”

Most every year, EDC hosts a Leadership Trip to a strategic metro. Guided by our Inclusive Growth strategy, the trips help expose dozens of San Diego’s private sector, nonprofit, academic, and government leaders to other regions engaged in similar work. After all, it sometimes takes stepping outside of our region to get the best look at who we are and who we want to be. This year: Seattle, Washington.

With more than 30 of San Diego’s most committed leaders in tow, we arrived in Seattle this July ready to learn about what makes the Pacific Northwest region so successful and what challenges have stymied it most. EDC’s President and CEO Mark Cafferty kicked off the three-day trip with the above Friday Night Lights quote to help frame the goals of the trip, plus the mindset needed to act once back home.

Clear eyes

Seattle is a true peer metro to San Diego, home to a globally competitive innovation cluster with audacious goals for its growth. While Seattle’s cost of living is lower than San Diego’s, it is the fastest-growing city in the country and rising home prices have led to gentrification and displacement. The state of Washington needs another Seattle’s-worth of housing units to address its housing supply shortage. The clarity of their direction and of their challenges comes from an impeccable degree of detail and data, both on their goals and on where they are falling short in meeting them. For example:

  • Jobs: Eighty of Seattle’s CEOs made commitments to increase supplier diversity, yet only 0.1 percent of procurement can be tracked back to Black-owned businesses. (There was no mention of metrics on Latino-owned businesses.) These companies don’t always have consistent vendor data tracking—and you can’t improve what you can’t measure.
  • Talent: Nationwide, more than 375,000 tech jobs remain unfilled. Given that each year as a country we graduate 75,000 computer science degrees and distribute 65,000 H1B visas in tech, that still leaves 235,000 jobs that must be filled in other ways. As home to some of the largest tech companies in the world including Amazon and Microsoft, Seattle has recognized the imperative for sourcing talent in new ways. Notably, through tech apprenticeship model Apprenti, companies can recruit people from non-tech backgrounds using an anonymized, skills-based application process to remove all the bias you don’t want and focus on all the talent you do. Eighty-six percent of these apprenticeships convert into full-time jobs after one year.
  • Households: Through Challenge Seattle and their partners at Boston Consulting Group, the region has identified the root of a housing shortage challenge that looks very familiar to San Diego’s. Challenge Seattle identified the housing size, price, and place needed to make a dent in the lack of supply facing the region. Additionally, the group put out 15 long-term and four short-term recommendations for policy change ranging from zoning reform to below-market financing, and more.

Full hearts

One inspiring moment was when our group heard from Alesha Washington, CEO of the Seattle Foundation, on the region’s continued struggles, which she says are often masked by its rapid growth and prominent tech companies. The region is majority white, and the economic hardships are most felt by people of color. Simply calling past policies what they were—racist—provides a sense of freedom to manage them directly and without ambiguity.

Another point of encouragement came in the context that while the Seattle metro accounts for more than half of the state’s population, it cannot succeed alone. Many of the challenges it faces are felt across the rest of Washington, so statewide cooperation is needed to solve them. Framing Seattle’s housing crisis as urgent to the state’s overall economic prosperity is one way Challenge Seattle has done just that.

Can’t lose

Perhaps the most galvanizing moment was during our closing session as the group took stock of all they had heard, shared what stood out the most, and reflected on our region’s own inclusive growth journey. What resonated most was the sense that, like our peer, San Diego has come a long way. When the economic case for inclusion was first developed in 2017, the road seemed long and the goals unreachable. However, despite the setbacks brought on by the pandemic, progress is being made – with EDC’s latest progress report launching next month. With an inclusive economic development agenda acting as a compass, many local organizations have shifted their focus or direction—and even small changes can have big impacts. As Halé Richardson of HomeFed Corporation put it, “Fueled by this ongoing dialogue, we’re now prioritizing childcare centers over swimming pools.”

For decades, the inclusion challenge was left only to the social services and philanthropic community to solve. Now, the business case has been made and it is clear inclusive growth is imperative to the region’s competitiveness. Without it, industry too will cease to thrive.

Economic development is an exercise in authenticity.

In San Diego, we know our data story well too. The challenges facing our region require all of us to adapt in order to create more quality jobs, skilled talent, and thriving households. If we are to remain competitive and attractive to both businesses and talent, we must embrace the challenges head-on, with each sector—public, private, non-profit—doing its part to promote a more inclusive San Diego. In the months ahead, EDC will convene select groups to make that clear and build on this momentum.

I remain committed to exploring different avenues for how we broaden and deepen our work across our three goals—through my role at EDC, my work at MAAC, and my engagement with our region at large—as a member of the community that cares deeply about San Diego’s future.

We may not reach all our stated goals by 2030, but the mere fact that we are striving toward them guarantees that we will be better off than than we are today.

Learn more about EDC’s Inclusive Growth work

See the San Diego-Seattle regional comparison

See past leadership trip recaps

Talent Pipeline Management: EDC’s talent framework

By Taylor Dunne,

As total student debt continues to climb in the United States, and the hope that some would see relief fades, the need for new and more affordable approaches to training and education grows. In San Diego, it is projected that 84 percent of new jobs created by 2030 will require some sort of post-secondary education. However, restricted access to formal higher education means there will not be enough people to meet employer demand. This is compounded by San Diego’s increasing reliance on (and leadership in) intellectual property and technology that changes faster than curriculum can keep pace with.

It’s clear the days of leaning entirely on traditional education systems to prepare the entire economy’s workforce are behind us, and yet the demand for talent with the skills and educational training necessary to perform complex tasks such as research and development still very much exists. Jobs in the innovation economy are high-paying, resilient, and each one supports two jobs elsewhere in the economy. These jobs are critical to San Diego’s story, so companies must be creative about what this new age of recruitment and workforce preparation looks like.

There is a science to knowing how many skills and competencies a new hire should have learned from a training program, and how much training a company should expect to build into onboarding. The equation to find out exactly where that line is being drawn is called Talent Pipeline Management® (TPM).

An employer-led, data-driven approach.

San Diego Regional EDC’s alignment with the TPM framework is rooted in shared values around being authentically employer-led and data-driven. With between 75,000 and 85,000 monthly job postings and an average of just 59,000 unemployed San Diegans each month to fill them, San Diego (along with the rest of the nation) faces a talent shortage. This is the business case for changing the way we develop talent in the region.

“TPM leverages lessons learned from supply chain management, strategies, and tools to help employers and employer associations play the role of an end-customer in a talent supply chain.”

–U.S. Chamber of Commerce Foundation

September, 26, 2022 - Washington, DC, USA: The U.S. Chamber of Commerce Foundation hosts TPM National Learning Network Summit reception. Photo by Joshua Roberts / © U.S. Chamber of Commerce
From left to right: EDC Sr. Manager Taylor Dunne with other California TPM users Annie Sterling, Loren Kaye, and Lex Carlsson.

How EDC uses the framework.

Since 2019, EDC and its partners have worked together to convene multiple Employer Working Groups (EWG), made up of more than 70 companies from across industries, to lead in the reshaping and development of talent pipelines in our region.

The TPM framework is broken down into the following six strategies. This is how EDC leverages each one to build talent in our region:

  1. Organize for employer leadership and collaboration: Create a collaborative that organizes employers to identify the most promising opportunities for engagement around similar workforce needs.
    Leveraging EDC and partner networks, we convene five to 10 companies to discuss talent needs that persist across industry. Company representatives including hiring managers, recruiters, or talent acquisition specialists are invited to attend meetings focused on occupations in their industries.
  1. Project critical job demand: Develop projections for job openings to determine with accuracy the type of talent and how much of it employers need.
    Using labor market information and existing job postings, EDC builds an outline of predicted needs, then shares those predictions with the EWG to see how it resonates with current industry trends. Predicting labor market trends is a useful tool, however it lacks the day-to-day insight of industry knowledge and growth potential. Labor market information also fails to highlight correlating factors that might be contributing to a weak talent pipeline such as retention challenges in a potential feeder role, or misaligned incentives between training programs and employers. Talent needs are better understood when all of this information comes together. Each EWG member is asked to respond to a survey to quantify hiring expectations in a few key roles over the next three to five years.
  1. Align and communicate job requirements: Create a shared language to better communicate competency, credentialing, and other hiring requirements of critical jobs in ways that allow employers to signal similarities and differences.
    As decisions are made for occupations that are most in need of an improved talent pipeline, EDC use current job postings and existing skill frameworks to start building a list of the necessary skills. Employers help to create a shared definition of skills and determine which should be taught in a classroom and which are best suited to learn on the job. This often serves as an opportunity for companies to better understand their own skill requirements and broaden the pool of talent they recruit from. Using this data, EDC produces a Talent Demand Report outlining critical findings and providing guidance for how training providers can improve curriculum to meet industry needs.
  1. Analyze the talent supply: Identify where employers historically source their most qualified talent and analyze the capacity of those sources—as well as untapped talent sources—to meet projected demand.
    EDC provides a platform for local education partners to showcase how they are training to the skills needed, as well as how they are reaching and serving a diverse student population. This approach allows for a fresh look at all training providers in the region, setting aside rankings and accolades to focus on how students are being prepared for quality jobs. In the past, this exercise has led employers to recognize occupations that don’t need a bachelor’s degree, because more accessible associate’s degree or even certificate programs proved to be adequately teaching the skills needed.
  1. Build talent supply chains: Manage the performance of talent supply chains to create a positive return on investment for all partners.
    EDC and core partners continue to work hard to build a workforce and talent pipeline with a stable network of private companies, educational institutions, and community organizations. Identifying the major barriers that limit growth and how this network is equipped to assist in lessening those hurdles remains key in shaping a San Diego for all.
  1. Apply continuous improvement: Use data from the talent supply chain to identify the most promising improvement opportunities to generate a better return on investment in the future.
    Continuous improvement is applied on multiple levels as the programs that use TPM continue to iterate and scale. Whether uncovering a need to improve student preparation for entry-level certification exams, adjust work-based learning opportunities, or any of the other lessons learned over the last four years, EDC and its partners are committed to continuously improving talent pipelines and moving the region closer to its skilled talent goal.

By assessing training providers based on pre-determined employer-set standards, the reliance on historically inaccessible sources of talent is eliminated, opening the aperture for both companies looking to find more diverse, qualified candidates, and for San Diegans preparing for quality jobs in the region.

A TPM case study

In 2020, EDC and Talent Forward, a U.S. Chamber Foundation initiative, released a case study on how the region had been using TPM to reach its goal of doubling the number of skilled workers each year.

READ THE CASE STUDY HERE

“The U.S. Chamber of Commerce Foundation is grateful to learn alongside partners like San Diego Regional EDC as it implements the TPM framework. For the past several years, EDC has demonstrated that employers can lead change management to build high-performing talent pipelines. These efforts have positively impacted so many in the San Diego region: companies, education and training partners, and most importantly, students and workers. We will continue to tout these tremendous achievements and are excited for all that is in store.”

– Jaimie Francis, Vice President of Policy & Programs for the Center for Education and Workforce at the U.S. Chamber of Commerce Foundation

Leading partnerships for the region.

Today, TPM continues to play an important role in San Diego’s talent development strategies. As the original Advancing Cities funding sunsets, public, private, and philanthropic investments allow the work to continue. EDC partnered with the San Diego Workforce Partnership and CCOE to use TPM to guide CyberHire and other future programs.

Thanks to the leadership of the Grossmont-Cuyamaca Foundation and the San Diego and Imperial Valley Community College Consortium, TPM is a leading feature of the Border Region K-16 Talent Pipeline Collaborative where the impacts of the framework will continue to expand.

LEARN MORE AT ADVANCINGSD.ORG

If you are an employer, education provider, or convening organization interested in learning more about TPM, contact:

Taylor Dunne
Taylor Dunne

Director, Talent Initiatives

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A tool for inclusive growth: The San Diego Investment Map

By San Diego Regional EDC,

New digital tool to help inform inclusive growth in housing, childcare, industry

Today, EDC launched the San Diego Investment Map, a new digital tool to inform strategic, inclusive growth across the region. As part of EDC’s Inclusive Growth Initiative, the Investment Map provides a first-of-its-kind interactive data tool to support decision making across core facets of the local economy: childcare, middle-income housing, and corporate site selection.

Pulling a variety of datasets into an easy-to-use dashboard, the San Diego Investment Map allows users to explore San Diego County through a different lens. The interactive dashboards include data and analyses, and serve to shine a light on the region’s greatest threats to economic competitiveness: a jobs and housing imbalance, among other affordability challenges.

Key takeaways:

  • CHILDCARE: San Diego has 327 childcare ‘deserts’ spread throughout the region, making up nearly half of all census tracts. The Investment Map can pinpoint gaps in childcare supply and help narrow sites for prioritization.
  • HOUSING: Seventy-four percent of San Diego’s population is middle- to low-income, yet only 2.5 percent of permitted housing development needed in the region accommodates these groups. The Investment Map can identify zones with existing building incentives, community plan updates, as well as new commercial development where workforce housing may be needed.
  • INDUSTRY: There are 15.6 million rentable square feet of commercial space being developed across the region, predominately concentrated in northern San Diego. While this includes enough office space for more than 42,000 employees, most workers live instead in the southern and eastern parts of the region. The Investment Map can assist companies in site selection based on occupation hubs, commute trends, and other infrastructure assets that meet their operational needs.

“The San Diego Investment Map serves as a tool for local policy makers, developers, and employers to make informed and deliberate decisions to prioritize the region’s inclusive growth. Using geographic storytelling, the map makes obvious the gaps in our economy—limited childcare; disjointed development both in terms of location and income-level; rising costs with no end in sight. Data-driven solutions to alleviate these challenges will safeguard San Diego’s competitiveness,” said Teddy Martinez, Sr. Research Manager, San Diego Regional EDC.

Explore the Map

About the Inclusive Growth Initiative

The innovation economy will continue to make San Diego more prosperous than many of its peers, but it is not accessible to the fastest-growing segment of the region’s population. This mismatch between our regional assets and our economy’s future needs will consistently erode the region’s competitiveness.

Launched in 2018, EDC’s Inclusive Growth Initiative serves to communicate these challenges, making the business case for economic inclusion across San Diego. By 2030, County, City, private sector and academic leaders have pledged their commitments to the initiative’s goals: 50,000 new quality jobs in small businesses, 20,000 new skilled workers annually, and 75,000 newly thriving households. See how we’re tracking here.

The San Diego Investment Map marks a new tool for employers and stakeholders to engage in this work, specifically tackling the thriving households goal.

“Inclusion is an economic and business imperative. It’s more than DE&I in the workplace—it’s about ensuring all San Diegans have the resources and infrastructure needed to thrive in this region. The Investment Map highlights all the work we still have to do to make that possible,” said Lisette Islas, EDC vice chair of Inclusive Growth, and EVP and Chief Impact Officer of MAAC.

The San Diego Investment Map was authored by San Diego Regional EDC, with support and counsel provided by Buzz Woolley and Mary Walshok.

Learn more about inclusive growth

Explore the Map

Interested in a demo, or getting involved? Contact EDC:

Teddy Martinez
Teddy Martinez

Sr. Manager, Research