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Testimony of Major General Matthew P. Caulfield USMC (Ret)

CEO Hire Quality and

Daniel Caulfield, President Hire Quality, Inc

at the Subcommittee on Benefits

Oversight Hearing on Veterans’ Employment: Credentialing (Licensure, Certification, Accreditation, and Apprenticeship) Requirements

September 9, 1999

Major General Caulfield’s Statement

Congressman Quinn, members and staff of the Subcommittee on Benefits, thank you for the opportunity to appear before you to express our views on Veterans Employment and specifically Credentialing Requirements.

We have prepared written testimony for insertion into the record. It includes our curriculum vitae. In the next five minutes we would like to outline briefly our perspectives which we believe offer a unique view on an issue which has important ramifications for the armed forces.  I will make a short statement and will be followed by Dan Caulfield, who in addition to being the President is also the founder of Hire Quality, Inc.

Since my retirement in 1992 I have gained a unique perspective into the importance of skill certification in today’s environment. My perspective is derived from starting two subsidiaries of a large corporation which hired transitioning Servicemembers to more recently leading, for almost five years, a company which recruits for some of America’s largest corporations.  We register, and talk to over 60,000 transitioning Servicemembers annually (about thirty percent of the transitioning population) and I personally have visited over 200 corporations is search of jobs for former members of the armed forces.  We handle all ranks but our core business is helping the lower ranks across all skill-sets find good jobs. I am particularly proud that we help more combat arms personnel than any company or group of companies in the country. We are completely private, do not receive government funding and provide our services totally free to members of our armed forces.

The issue of the problems former military personnel have in transitioning to the civilian sector has implications for recruiting due to the increasing negative view held by former military personnel on the value of military service. Certification of military training is only one but perhaps the most remedial problems within a larger context that has implications for our national security.

The absence of any meaningful credentialing program for military service on part of the government is and extraordinary waste.  What has been frustrating is the government agencies appear to operate in a vacume without any understanding of what is required in the real world.

There are organizations that could help. The American Legion does more today for veterans in the workplace than any other organization in or out of government. We are extraordinarily proud of our close relationship with the Legion and operate as true partners with a single goal. The Legion’s study on credentialing is the only innovative program I have witnessed in the transitioning arena in five years.  The Clayton State project reflects truly innovative program of granting certifications designed in partnership with college and private officials  who deeply care.  The project has not been launched in spite of the support and pleas of Senators Cloverdale and Cleland. I will provide a description of the project for the record.  Hire Quality has offered programs to the government which have been rejected outright. There are numerous private corporations who want to help but have way of doing so.  Key positions in corporate America are full of former men and women in the Armed Forces who want to help. Our company would not be in existence without their help. Labor Unions want to help. The Seafarers International Union and particularly its president, Michael Sacco wants to help and has extraordinary training facilities involved in certification. The congress wants to help or you wouldn’t be conducting these hearings.  In this regard I have been particularly impressed with your staff members, willingness to listen and commitment to doing the right thing for the men and women in our armed forces. What we need sir, is not more money.  What we need is a single goal: Keeping the Promise made to the men and women at the time they entered the military.  A promise, which is that military service, does have value in the civilian sector.

As for the certifications for the  good jobs in the future, it never ceases to amaze me that Silicone Valley lobbies for more immigrant quotas, at a time when the most trainable group of Americans, the men and women of our armed forces are more than ready to learn and to be certified in these skills.

Daniel Caulfield’s Statement

Congressman Quinn, members and staff of the Subcommittee on Benefits.  I would first like to say that it is an honor for me to be here today. First to be privileged to appear in this chamber and also to meet you Congressman Quinn. I would also like you to know that it is a big day for me for another reason.  Since beginning business with my father, five years ago I often expressed frustration with the unwillingness of government agencies involved in transition to cope with some real issues.   There seems to be so many opportunities missed because every agency seems to be going in different directions with any real understanding of what is needed in the real workplace.

I don’t know if I could ever have faced my Marine platoon knowing what I know today: how good they were and how badly they would be treated in the workplace.  My Dad keeps saying they are the most discriminated group of people in the workforce today, he is understating the problem. I would like to focus of some of the operational reasons.

Former military personnel are difficult to place.  The reason why we refer and place more former military personnel that any other placement company or combined group of companies is simple.

We developed a way to translate military occupational specialties to occupational requirements in a way, which makes sense to hiring manager.   It is difficult to work with military backgrounds, and to translate into civilian requirements.  The Military Operational Structure is confusing and complex compared to civilian occupational codes; I know of no existing “key word” search software for military personnel similar to what is used universally today in the placement business and probably most importantly, there is no civilian certifications for training and experience gained in the military.  This is especially true for combat arms personnel. And is the reason I am so proud that are core business are in these Military Occupational Specialties.  The certification process is essential to successfully utilize military training in the civilian sector. It should be done at the time the Servicemember receives military training, and it should be listed in “civilianese’ on a DD 214.  For those in the combat arms and we should redirect resources from the transition program to provide ways to obtain other certifications for the intended job through interactive training for a persons new job.  Believe me, it is a lot more important for a truck driver to have a commercial drivers license than a resume.  Why then does the transition program focus on assisting  Servicemembers prepare a resume but does noting to help with gaining certifications for military training?

We are prepared to answer your questions sir.

Background

Dan Caulfield was an U.S. Marine lieutenant in 1994.  During that year four of his best Marines, all scheduled for discharge came to him for help in finding a civilian job.  All were enlisted men.  All were married and had children.  All were planning to move “back home.”  In trying to assist these young Marines, Dan discovered that there was no effective formalized network to assist these outstanding men find a job or get established in their community.  It was difficult to believe that the military community, one of America’s strongest affinity groups, had so little to offer in bridging the span between military and civilian life.

Six months prior to leaving the Marine Corps Dan designed, won approval for, and launched the Marine Corps’ first Preparation for Transition Unit.  The Unit’s purpose was to help departing service members gain valuable skills by placing them in resume-enhancing positions prior to their transition from the military.  Through this experience he realized both the value military experience brings to the civilian workforce, and the barriers businesses face in effectively reaching out to people leaving the armed forces. After serving for four years in the US Marine Corps, Dan founded Hire Quality in August of 1994, to provide free employment services to transitioning Servicemembers.  His long term vision was to build a company capable of making a difference in the military community by offering an extended group of truly valuable and needed services, and bridging the divide between the military community and civilian businesses.

Dan’s father, Major General Matt Caulfield, USMC (Ret), was intimately involved in Department of Defense studies on the downsizing of the U.S. military immediately preceding his retirement from the Marine’s in July, 1992.  A few months after retiring, he joined First Winthrop Corporation in Boston.  General Caulfield founded and became the first President and CEO of a wholly owned subsidiary, which recruited employees exclusively from the pool of highly qualified personnel departing the armed forces. General Caulfield joined Hire Quality in early 1995 as its Chairman and CEO to focus primarily on sales, marketing, and public relations.  Dan’s entrepreneurial spirit, technical expertise, and experience with transitioning Servicemembers combined with General Caulfield’s first hand experience in building a company with former military personnel was a winning formula.

The Company started in Dan’s back bedroom (which also served as home for many early employees, almost all of whom were former Marines)  and has grown at over 100% per year.  The company would not be in existence today without the assistance of numerous former members of the armed forces in the private sector. Public Relations successes have followed one after another.  The Company has been featured in a cover story for Inc. Magazine, a front-page announcement in the Wall Street Journal, and a series of TV news stories airing on CNN, CNBC, ABC News, and CLTV.

The paradigm the Company was built on was contrary to almost everything held sacred in the staffing industry.  Rather than starting with jobs and then searching for appropriate candidates to fill those jobs, Hire Quality started with Servicemember candidates and looked for jobs that matched their skills.  Dan’s devotion to systems and technology allowed the company to recruit Servicemember candidates and to service corporate clients in high volume from a centralized location.  Hire Quality was breaking the rules by putting a non-paying customer, the military Servicemember, at the top of its customer priority list, and succeeding in the industry.  Thousands of former Servicemembers own their civilian careers to Hire Quality.

Hire Quality has developed several proprietary software products and workflow systems that have dramatically increased the operational productivity of the Company.  Foremost among these were tools that were ported to the Internet.  Using the Web, Hire Quality was able to empower the candidates and employers the use the tools they needed, without having to deal with Hire Quality staff members for every activity. In essence the software mapped Military Occupational Specialties to civilian occupation skills.  The high volume recruiting system evolved from one dominated by call center activity to one dominated by Web based activity.

The military community, through word of mouth, started to view Hire Quality as a powerful online employment resource and Web activities increased sharply.  Recognizing this trend, management added more tools to help Servicemembers control their entire job search from the Web, including: an online “Career Management Center,” free e-mail, chat rooms, personal Web hotlinks, and links to other recommended military Web sites.  The term “Candidates” was scrapped and replaced by the term “Member.”  Hire Quality’s Web impressions have dramatically increased every month without any focused Web marketing effort. 

Military Community Online is the fulfillment of the founder’s original vision: to become a member services company offering an extended group of truly valuable and needed services, and bridging the divide between the military community and civilian businesses. The Military Community needs more services than just career assistance and the web is enabling these services to be delivered accurately and cost effectively.

We are currently building the necessary systems for the military community without any government funds.  The Goal is to raise awareness in the Boardrooms across America and carry the message to the gatekeepers that Military people have value.  It will attempt to raise the nation’s conscience and bring Government, Business and Military leaders together to work on the problem comprehensively.  Although we have offered our services to assist the various government agencies serving the military we have met with unexplainable resistance.  The common thought is that government can not work with a for profit business.  It is time to usher in a new era of cooperation between private business and government. 

Lessons Learned

Today the employment problem faced by veterans in the workplace lies in an environment in which Americans with military experience or direct knowledge of the military are becoming increasingly rare with corresponding decline in interest on the part of youths for military service. We have learned first-hand that The All-Volunteer Force has created a severe isolation of the armed forces from the civilian community. The effect in the workplace, where the “rubber hits the road” is so severe that former members of the armed forces, due to ignorance of the military, are actually victims of what can accurately be described as discrimination.  Very few senior managers have had military experience or any knowledge of the value of military training and experience. At the hiring level, I have never met one hiring manager with military experience.  The hiring managers are almost without exception, in the 26 to 32 year age group and college graduates.  Almost none have family members in the armed forces and few even know anyone who serves in the armed forces.  Military training is at best ignored and at worst denigrated.  At the hiring site, Servicemembers unintentionally or not, suffer the demoralizing effects of discrimination, not the least of which is a devaluation of their own views on the value of serving in the armed forces.

In an age of historic low employment and in which business leaders are crying out for quality workers, Bureau of Labor Statistics employment survey data show that male veterans aged 20-24 and 35-39 (the ages at which veterans are most likely to separate or retire) have higher unemployment rates than non-veteran males in the same age group.

In addition to the waste of government provided training, there are other inimical effects.  To cite one example the effect on recruiting is devastating. We all know that a youth’s propensity to enlist is greatly effected by conversations with veterans.  DOD Youth Attitude Tracking Surveys (YATS) indicate that conversations with military members and veterans were more frequently mentioned by youth as more of an influence on joining the armed forces than recruiter contact and recruiting advertising combined.  In 1998, the YATS indicate that contacts with military members and veterans are having an adverse effect. Put another way, among the Army’s most influential recruiter, a satisfied former soldier is no longer assisting the recruiter.

Government Transition Programs

If anyone doubts that the transition assistance in the military is flawed, a reading of the recent Report of the Congressional Commission on Servicemembers and Veterans Transition Assistance should put those doubts to rest. The major problem is that no one is in charge.  The program consists of the Department of Defense, Department of Labor and the Department of Veterans Affairs all having a piece of the action which is jealously guarded by each agency.  In none of these departments is the veteran’s employment given adequate priority.  It is so confusing and so much of a turf issues that there is no place to go to even find out how much is expended on the transition program. Many current programs the government provides are redundant and could be made more effective if they were combined and delivered via the web. For example a program does exist to provide interactive training leading to skill certifications which would be recognized by several leading corporations.  In essence, successful completion of the training over the internet would be a guarantee of a job.

Certifications

It is one of the great national wastes that little military training is certifiable in the civilian community. Certifications include the entire gamut from commercial driving licenses to FAA certifications. I stretch credulity but is true that the young Servicemember certified by the federal government to drive on a state highway while in uniform is no longer permitted to do so after discharge.  No state reciprocates a commercial driving license.  No mechanic no matter how well qualified can leave service and work for an airline unless he is in possession of a P&A certification.  Many certifications include taking the same courses in a civilian institution as successfully completed in the armed forces It just doesn’t matter that the training is often superior to anything offered in the civilian sector.  The person without the certification just doesn’t even get the job interview.   As a junior college president once described former Navy medical technicians, “…they come here like homeless people…all of the military support is terminated…usually married with children…and it is so heartbreaking to tell them that they have to spend eighteen months getting a certification for which their Navy training was superior…all just go off and try to find a job…any job …as long as it has health benefits.  And to eat, many just take the first job offered…or go on unemployment”.

To be successful the military will have to simply translate its current training to meet the standards set by the marketplace.

Solutions

We believe that the solution is not another government program or to throw money at the problem.  There are probable sufficient funds in the transition programs. Funds could also be transferred from existing agencies. What is required is to work smarter with the existing funds, and accept help from private businesses with shared goals.  The smartest thing could be done is to provide certifications to every former member of the armed forces.

Certifications could be given at the time training is completed, and during the transition process.  Too much time is spent on preparing resumes for many jobs, which do not require a resume than on programs to provide civilian certifications.  No separating Servicemember should depart the armed forces without meaningful certifications, which are recognized by the civilian community.  In this regard, the so-called certification process in the armed forces is meaningless and a waste of time unless recognized by appropriate civilian agencies.

The individual States should be required to reciprocate licensing and certifications provided in the military.

Companies involved in computer and similar certifications would provide equipment assistance to after duty armed forces educational facilities in a manner similar to providing equipment to high schools.  These companies should be encouraged to locate training facilities in close proximity to military facilities.

A project team made up of Business, Military and Government leaders should be given oversight of the certification and transition issue with free reign to combine, cut, or create services that work.  The measurement of the success, should be:

1.       How many people leaving the military with skills that require civilian certifications in fact have those certifications. 

 If the answer is not 100% we are not “Keeping The Promise”

2.       How long are people in transition from the military on unemployment and what part of that time is spent in obtaining civilian certifications by “retraining” in skills acquired in the military.

Implement the recommendations contained in the Report of the Congressional Commission on Servicemembers and Veterans Assistance.

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