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Job Path Capacity Building &
Networking Event
Gold Hall,
Chartered Accountants House
47-49 Pearse St. Dublin 2
7 November 2013
Brendan Friel
Department of Social Protection 7 November 2013
Presentation at Enterprise Ireland‟s Capacity Building and Networking
Event
JobPath Contracting Third Party
Providers of Employment
Services
2
• Information provided in this presentation is
for information purposes only and is
provided on a „without prejudice‟ basis
• Nothing is cast in stone
• Content may be changed/updated
Please Note
3
•Refresh the JobPath picture
•Set the context for the next
presentations and the networking
event
Purpose of Presentation
4
• JobPath is a proposed new programme of activation
aimed specifically at the long-term unemployed
(over 12 months) and those most distant from the
labour market
• JobPath will be delivered by third party providers of
employment services under contract to the
Department
• JobPath will supplement and complement existing
DSP/Intreo, Local Employment Service (LES) and
Job Clubs capacity
Reminder - what is JobPath?
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• Critical Success factors
increase in the number of JobPath clients
moving from the Live Register into employment
(more people getting jobs)
increase in the duration of sustained periods of
employment (fewer people moving back onto the
Live Register)
reduction in the average time on the Live Register
for JobPath clients
What do we want JobPath to achieve?
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Based on DSP Divisional Structure
Area determined by reference to DSP
Local Office (not client‟s address)
One Provider per area
Four Contract Areas
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Contract Area 1 - BorderMidlandsWest
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Area Division DSP Local & Branch Offices by Division Aug2013
Area 1 WEST Achill Loughrea
Ballina Clifden
Ballinrobe Galway
Belmullet Swinford
Castlebar Tuam
Claremorris Westport
MIDLANDS NORTH Athlone Kells
Ballinasloe Longford
Birr Mullingar
Boyle Navan
Castlepollard Roscommon
Castlerea Trim
Edenderry
NORTH EAST Ardee Clones
Ballyconnell Drogheda
Cavan Dundalk
Carrickmacross Monaghan
Castleblayney
NORTH WEST
Ballybofey Dunfanaghy
Ballyshannon Killybegs
Buncrana Letterkenny
Carrick-on-Shannon Manorhamilton
Donegal Sligo
Dungloe Tubbercurry
Contract Area 2 – Cork Central, S East & Mid Leinster
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Area Division DSP Local & Branch Offices by Division
Aug2013
Area 2
CORK CENTRAL Bandon Cork
Carraigaline Kinsale
Clonakilty Midleton
Cobh Youghal
SOUTH EAST
Carrick-On-Suir New Ross
Dungarvan Thomastown
Enniscorthy Waterford
Gorey Wexford
MID LEINSTER Arklow Muine Bheag
Athy Newbridge
Baltinglass Tullow
Bray Wicklow
Carlow
Contract Area 3 –
South & South West
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Area Division DSP Local & Branch Offices by Division
Aug2013
Area 3
MID- WEST Ennis Kilrush
Ennistymon Limerick
Gort Newcastlewest
Kilmallock Tulla
SOUTH WEST Bantry Listowel
Cahirciveen Macroom
Dingle Mallow
Fermoy Newmarket
Kenmare Skibbereen
Killarney Tralee
Killorglin
MIDLANDS SOUTH Cashel Portlaoise
Cahir Rathdowney
Clonmel
Roscrea
Kilkenny Thurles
Nenagh Tipperary
Portarlington Tullamore
Contract Area 4 - Dublin
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Area Division DSP Local & Branch Offices by Division
Aug2013
Area 4
DUBLIN CENTRAL Apollo House Navan Road
Bishop Square Nutgrove
Blanchardstown Thomas Street
King’s Inns Street
DUBLIN NORTH Ballbriggan Finglas
Ballymun Kilbarrack
Coolock Swords
DUBLIN SOUTH Ballyfermot Maynooth
Clondalkin Tallaght
Dun Laoghaire
Live Register at end Oct 13 Caution – includes non JobPath cases e.g.
Short Term Unemployed and Credits
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Contract Package Area - CPA 1 119,498 Midlands North 34,863
North East 28,519 North West 27,618
West 28,498 Contract Package Area - CPA 2 91,205
Cork 27,988 Mid Leinster 29,807
South East 33,410 Contract Package Area - CPA 3 83,834
Mid West 28,050 Midlands South 31,859
South West 23,925 Contract Package Area - CPA 4 101,975
Dublin Central 40,800 Dublin North 26,701
Dublin South 34,474 Grand Total 396,512
* Includes all payments and credits– Source CSO
• Priority is the long-term unemployed
• Also those moving from short-term to long term
• And new entrants at greatest risk of LTU
(5%PEX)
JobPath Target Groups
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DSP will specify minimum basic requirements e.g.
personal action plan, regular face-to-face meetings,
minimum level of „in-work‟ follow-up
Providers to specify other SG elements and how they will
deliver on SG
Providers free to provide other services above SG which in
their view will result in sustained employment outcomes
The JobPath Service Guarantee -
“Grey Box”
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• A Referral Fee
• Paid on verified production of a personal action plan for each client
• Outcome (Job Sustainment) Fees
• Fees based on client categorisation
Higher fees for harder to place categories
Lower fees for easier to place categories
• Fees paid periodically in arrears e.g. after 3,6,9,12 months in
employment
• Outcome fees paid over 12 months of sustained employment which can
extend beyond engagement period e.g. a client finding employment in
month 12 of the engagement may attract fee payments for the
subsequent 12 months
JobPath Fees – 2 elements.
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Intreo refers eligible clients
ClientAssessment
Service payment paid
Starts in a job
Personal Action Plan signed
Remains in job or builds up 12 weeks of
employment
12 weeks trigger for outcome
payments
3 month job outcome payment
6 month job outcome payment
9 month job outcome payment
12 month job
outcome
• Fees will be bid by providers as part of RFT process
• For any individual client we anticipate
• Referral fee ~ 10% of total maximum payment
• Outcome fees ~ 90% of total maximum payment
• Aggregated across all clients
• Referral fees ~ 30 – 50% of total provider income
• Outcome fees ~ 50 – 70% of total provider income
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• Complete a spread-sheet template
• Outline their service model indicating key components of price calculations
including:
• Number of offices/outlets
• Number and salaries of staff
• Target placement rates (High, medium and low)
• Service offer in excess of the base level SG
• Set-up and operational costs
• Projected cash flow statements and P&L
• Projections of successful bidders may be compared to actual performance
on an „open-book‟ accounting basis.
• Based on other countries we anticipate providers will set the „low‟ scenario
at c 50% performance above counter-factual
Providers will be asked to substantiate
price bids
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• Clients to be referred for 12 month engagement with provider
• Mandatory for those selected
• Risk of penalties for non-engagement
• Providers may refer clients to recognised training/skills courses and
employment programmes
• Engagement paused for duration of course/programme but time
added back to ensure a full 12 month engagement.
• There will be no outcome fees paid for referral to such
courses/programmes.
• Common DSP owned IT system to manage referrals, updates and
payments
Programme: Referral Process
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• Government has agreed that DSP should initiate the
procurement process at end of November
• Final design of JobPath model is taking shape
• Final design is subject to agreement by Department of
Public Expenditure and Reform
• Timelines are challenging but we are moving ahead
We are moving ahead
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• End Nov 13 – Publish Contract Notice
• Feb/Mar 14 – Evaluation of Tenders
• Mar/Apr 14 – Award contract
• 5/6 month set-up phase
• Sept 14 – Go Live
Indicative Timelines
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No questions being taken on this presentation
Email comments to
Information will be published on
www.welfare.ie
Thank You
22
Delivering an effective programme for
the long-term unemployed
Tony Wilson
Centre for Economic & Social Inclusion
Five factors (in fifteen minutes)
• Activation – the evidence and what works
• Identifying needs
• Working with employers
• Improving skills
• Meeting complex needs
... There are more!
Working with
partners
What are we trying to achieve?
• Ensure that people are able to actively look for work;
find the right work; get into work and then stay there
• For long-term unemployed in particular, trying to
address four key issues:
• Loss of confidence and motivation
• Loss of skills
• The „signal‟ that LTU sends to employers
• Loss of networks and access to jobs
It’s not always easy to understand
what works
• We tend to look at overall impact – how many got a job...
Not additional impact – how many extra got a job
• We don‟t usually look at how long it takes to get a job
• Some interventions can take people away from
jobseeking for a while
• We usually mix up voluntary and mandatory programmes
• Volunteers always make programmes look better
• So understanding what works is complicated! But with
that caveat...
1. Activation
• What do we mean?
• Action planning
• Regular and frequent adviser support
• Right support to find and then get jobs
• Responsibilities and rights, with consequences
• Plan – Do – Review
• Impacts in order of 20-25%...
• Jobseeker‟s Allowance (GB, 1996) – action plan,
fortnightly review, increased requirements
• Projet d‟action personnalisé (France, 2001) – jobsearch
support mainly targeted at long-term unemployed
• Hartz reforms (Germany, 2005) – „contract‟, integrated
case management, tighter conditions
What works?
Initial engagement
• Immediate, in-depth, personalised
• Joined up – „warm‟ handover
• Assessing strengths as well as barriers
Action plan
• Forward looking – goals, strengths, actions
• In own words – personal statements, commitments
• „Contractual‟ – two ways
• Success measures – how know it has been met
Support
• Self-directed versus directed jobsearch
• Distinction between job matching and job brokering
• Access to resources – with right support
• Group and individual support – with CV, interviews, preparation, presentation...
• „Better off In Work‟ calculations and financial planning
Review
• Regular (and frequent?)
• Face to face (but not only this)
• Forward looking, supportive – what will you do next, with what support
• Right hand-offs
• Fundamental review – every three months?
2. Identifying needs
• Many countries use tools to measure distance from work – Ireland, Australia, US, Denmark, Germany...
• But difficulties in using them to target support
• What would have happened anyway?
• False positives and false negatives
• Opportunity costs
Extensive research in Ireland: http://tinyurl.com/jobpath [pdf]
What do we know about factors
affecting unemployment in Ireland?
Not that different to other countries... risk higher with:
• Length of time unemployed
• Older age
• Children
• Low education/ qualifications
• Low literacy and numeracy
• Poor transport
• Poor jobs history
• Geography (particularly urban areas)
Using this in practice
• Objective barriers to work are usually well known
• Subjective barriers matter too
• Confidence, motivation, outlook, wellbeing
• But harder to measure!
• Need to be clear on why doing this – for extra support,
or core regime?
• Monitor effectiveness, understand limitations
• Think about methods – questionnaires, assessment
centres, observation, data mining...
• And the skills advisers need to make judgements
• Ultimately, actions matter more than intentions
3. Working with employers
Employers want...
• To get the right people for the job in the most efficient way possible (can‟t always do both)
• To know about ways they can save money
• Organised approaches – not silos
• Responsive, professional services
• Up to date, accurate information
We need...
• Their jobs, their support, their commitment
“Joined Up For Business” (Edinburgh)
• Recruitment Support
• Single point of contact – account managers
• Vacancy handling, sifting, matching
• Pre-recruitment Training
• Way through to range of services from partners
• Access to wage subsidies
• From Scottish Govt and UK Govt
• Business Growth support
• Wider recruitment, HR support for small traders
In practice, this means
• Single dedicated Employer Engagement Team
• Dedicated resource to co-ordinate
• Senior buy-in and commitment
• Single Business Gateway
• Partnership of local authority, employment services,
business groups, voluntary sector
• Clear understanding of products and services across
organisations
• „No wrong door‟ approach
• Continuous improvement – knowledge building,
comms,, sectoral developments
4. Improving skills
• Clear correlation between skills and likelihood of being
in work
• And gets worse the longer you are unemployed
• But training for the unemployed has had disappointing
results – “lock-in” risks often outweigh benefits
• True in UK, US, France, OECD...
• May be higher returns from „employability‟ skills and
basic skills than vocational training...
• But evidence suggests that on-the-job training with work
experience can be effective
What works?
• Highly targeted
• Lowest qualified, longest out of work, least work
experience
• Small scale – large scale programmes have always
done badly
• Focus on work experience and transitions
• In workplace, linked to labour market needs,
involving employers, building in support to find work
• Addressing wider barriers – travel, childcare, health,
attitudes
How do it?
• Build on segmentation approach
• Understand what doing it for – specific vacancies,
general employability?
• Work locally and with partners
• Extensive support available – in particular
Momentum; and other vocational, short courses,
internships, work placements...
• Work together, engage employers, design and re-design
5. Meeting complex needs
• Extensive research on barriers
• Health, esteem, skills all come up again and again
• Childcare and transport matter
• As does number, type and location of jobs
• Examples too many to mention!
• Some thoughts:
• Work locally, and through specialists
• Join up with other provision
• Do not try to solve everything – focus on transitions
and ongoing support
Delivering an effective programme for
the long-term unemployed
Tony Wilson
Centre for Economic & Social Inclusion
Shaw Trust / CDG
Merger Plan Support P
Challenges and opportunities in preparing a bid Chris Melvin 7th November 2013
41
What might influence the programme requirements?
© 2013 PublicCo Limited. All rights reserved.
As a major national employment programme for the Republic of Ireland there are a number of features that we could see in the JobPath programme These are likely to come from a number of sources: • What are the key policy objectives to be met in delivering a programme such as
JobPath • What has worked and importantly, not worked in other labour markets, with
similar characteristics
• What are the particular characteristics of the Irish labour market that might influence the design of the programme
Consideration of these factors, should give potential providers, an indication of what they might need to demonstrate in order to be successful in winning a contract.
42
What to consider when preparing a bid
© 2013 PublicCo Limited. All rights reserved.
‘Quality’ matters: • What type of support and quality of support will you deliver
• How will you assess the needs of customers • What is the minimum level of service that you will guarantee • Is this likely to be different for different customer groups
• What processes and systems will provide reassurance to the
Department that you can ensure this level of service • How will you ensure the best use of public funds • What systems do you have in place to ensure minimum performance
is met • How will you support your supply chain in delivering their
performance
43
What to consider when preparing a bid
© 2013 PublicCo Limited. All rights reserved.
Delivery matters: • How will you mitigate the risks of setting up a programme from scratch, in a
labour market that hasn’t got a history of large-scale active employment programmes:
• How will you apply a performance management system to this market • What is the strategy for developing professional advisors • How will you ensure that they engage with this customer group
• Understanding the labour market, the capabilities and capacity of partners and the likely challenges a provider will face in delivering JobPath:
• How will the ‘handover’ work • What are the key requirements of specific labour markets and how will you
meet these • How will you ensure that local and national employers are supportive
44
What might the programme requirements be?
© 2013 PublicCo Limited. All rights reserved.
Value for money matters: • What are the lessons from the Work Programme
• What are lessons from International employment programmes
• What might be the characteristics of value for money in the context of
JobPath
Shaw Trust / CDG
Merger Plan Support P
Challenges and opportunities in preparing a bid Chris Melvin 7th November 2013
Job Path Capacity Building &
Networking Event
Gold Hall,
Chartered Accountants House
47-49 Pearse St. Dublin 2
7 November 2013
