Re s p o n s e to D W P c a l l f o r i dea s : Labour market interventions to in-work claimants

A system for top-up hours.March 2013

SUMMARY

The most effective intervention for in-work claimants would help them to do extra hours that fitted around their existing commitments. Those commitments might be unpredictable for example: uncertain hours of existing employment, childcare, medical issues, caring, or job-seeking activity.

Independent research strongly suggests there is untapped demand for pools of local top-up workers which could be hired on an ad hoc basis. Key employers of very flexible labour include: caterers, distribution companies, retailers, care providers, inbound call centres, market researchers, cyclical manufacturers and local authorities.

This proposal would create a DWP sponsored website that turned claimants into a pool of local top- up workers available to any employer. Named individuals could be booked instantly, possibly at short notice and/or for short periods. The site could be part of Universal Jobmatch or stand alone.

This level of control and flexibility can only realistically be enabled through technology. Each claimant can be given a personal online diary in which they enter available hours; today, tomorrow or weeks ahead. They can also define the terms on which they will accept bookings of their time: how far will they travel from home? How much notice do they need? Minimum shift length?

An employer needing, perhaps, 5 extra workers this afternoon can instantly see local workers who are: (a) qualified for the task, possibly having already been inducted already by the specific employer(b) genuinely available for those specific hours and willing to do a booking with all these parameters(c) contactable in time for the booking (d) legally compliant in terms of working hours, etc. Each person has been fully costed and can be booked with one click. The website then handles all administration and charging/payroll.

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Individual conditionality can be applied to each claimant. Each may have minimum weekly hours of availability, travel distance and period of notice defined for example. As well as finding each person periods of paid work that fit their personal parameters, the website may identify relevant opportunities for volunteering, training, work experience, peer-to-peer support or job interviews. All the activity will be within the individual’s rules which are within their conditionality. Failure to fulfil bookings can be reported to JCP staff.

Claimants working this way can quickly build;(a) a verifiable track record of reliability (b) soft skills, including computer familiarity (c) diverse vocational skills.

The technology required to deliver this vision substantially exists and is in daily use by private, public and third sector bodies. The Slivers-of-Time social business which operates these very flexible labour markets has partnered with Nominet Trust and is now piloting this model for the UC in three local authority areas. We are keen to explore progression to a formal DWP piloting stage.

How this proposal could work

It is mid 2015. John Smith registers as a claimant on the UC website and is segmented as an in-work claimant. He is taken through these steps:

1) Hi s c o nd i t i o n a li t y i s se t . For example the requirements of him might be:

Minimum availability that must be entered each week: 15 hoursMin. distance from home postcode must be willing to travel to bookings 5 milesMinimum period of notice he must be given for a booking: 3 hoursPercentage of bookings sent to him, covering times he is available and withinhis rules, that he is permitted to decline:

10%

2) H e i s ass ig n ed t o an a g en c y. This is the organisation that will payroll him and act as the legal employer for his bookings. It could be a commercial recruitment agency, a job brokerage, a

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charity

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offering, perhaps, both work and volunteering opportunities or perhaps JCP itself. DWP may choose to appoint one national agency. Alternatively, John may be offered a choice of agencies who: (a) use the DWP system within their websites (b) align with his existing skills (c) have a branch near his home. The agency can define a mark-up (either % or flat rate per hour) that the system builds into the employer charge. This is their incentive to sell the system to clients.

3) Ve tt i n g ar r a n g ed. John’s details are instantly passed into his designated agency’s section of the system database. The system will now schedule a visit to his nearest branch of that Agency. This is when he can be vetted and his range of permitted activity confirmed to the system.

4) A c t i v i t y s c h ed u l ed. If DWP wish, the system might immediately proceed to arrange a first bout of activity for John. It could at this stage ask for availability and personal rules. It may then access specific tasks that are reserved for new claimants and don’t require any vetting or qualifications. It could be, for example, that he is instantly booked to spend the afternoon as part of the team on an environmental clean up commissioned by the local authority. Or, two of his available hours tomorrow morning could be assigned for a trial session volunteering with a local charity.

From this point on, John is vetted and has parameters set by his agency. For example, they may tell the system he has a CRB/VBA check and is permitted to do “companionship” work with older people, paid or unpaid. (He can prioritize paid work in the system.) The agency can set a management framework around John. For example they can instruct the system to schedule him for a re-appraisal interview once he has completed 25 bookings, or agency staff can be alerted to call him if he receives no bookings over a 7 day period.

John can either set a regular pattern of weekly availability, or he can change his times constantly according to day-to-day issues. He does this on a computer or his phone. He receives bookings by text or email and confirms them the same way.

As he is booked and gets his timesheets signed, his diverse range of activity is captured in a verifiable list of “My Bookings”. Demonstrable reliability is likely to lead to offers of paid induction by

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employers building a pool of pre-trained local workers who can then be booked, when available, as required in the employer’s shop, leisure facility, food outlet, carehome, and so on.

If DWP wish, the system can also arrange peer-to-peer support sessions at times of availability when there are no formal bookings. For instance, John could be trained as a mentor in a group (organized through the system). He might then be matched with 3 local claimants with a similar profile. Meeting in a public space, such as a library or JCP, at times the system determines both are available each week, there could be a formalized conversation about seeking work based around a form John completes for the system to collate.

Every week, the system checks John has complied with the terms of his conditionality. Continued good behaviour might result in an automated progressive relaxation of his conditionality. JCP staff are given a weekly report on activity by their claimants with instances of non-compliance highlighted. Details of Johns’ activity and earnings can be passed into the main UC system for aggregation of data with other services, such as Universal Jobsmatch, and benefits payment.

Practicalities of this proposal

1) L aun c h i n g t h e c o n c e p t

Getting this form of activity going in any given area requires three components: claimants with spare hours, employers/voluntary bodies who book the time of claimants and at least one agency that vets participants then handles invoicing/payroll. Our experience strongly suggests that finding individuals who need this form of activity will be the easiest part. There is a danger of allowing too many claimants into the system with too little demand for their hours. This could quickly lead to disenchantment and unfavourable word-of-mouth.

Our experience further suggests that agencies, whether commercial, public sector or charitable, will quickly adopt any new channel once there is clear demand from employers or service users. The core issue for launch in any given territory is therefore ensuring demand for hours of local people has been identified and bought into the system.

We suggest the focus should be on finding a catalytic first employer for each area. This is the organisation, or cluster of employers, that commit to spend, perhaps, £500,000 over 12 months on the time of local people bought through the new channel. This enables a first pool of claimants in the area to become active and build track records of reliability. This pool then becomes an enticement for multiple other organisations who now have several hundred local individuals who can be searched, booked instantly and potentially inducted in anticipation of future need.

The pivotal catalytic employer is likely to be a local authority. Typically, they spend £5m to £10m a year on contingent labour. Much of their need for workers is fragmented and often best achieved

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through a more precise way of engaging with the labour market. (The appendix to this document illutstrates typical roles.) Councils usually have good links into thier LEP, Chambers of Commerce and other bodies that can win over additional local employers. They are a logical focus for engagement with the voluntary sector, organisations that might oversee peer-to-peer support and other initiatives that utilise spare hours of local people. The NHS and housing associations are secondary candidates as potential launch employers.

There are reasons why local authorities often can not act as a catalyst, despite wishing to do so. Many have signed multi-year exclusive agreements with Managed Service Providers (eg Comensura, Hayes, Manpower). MSP’s are usually able to resist new initiatives that disrupt their business model.

Because of this, and to bolster the case for action with authorities that can initiate a launch, we advocate a period of national employer outreach as part of this project. The outreach would introduce the concept of pools of local people, constantly on-tap to top up headcount. Mapping where these companies had most need could then inform the choice of which local authorities, NHS areas and social landlords to target.

P il ot i n g t h e c o n c e p t

Inevitably, the first launches will be vulnerable. Claimants, employers and agencies will be unfamiliar with this UC specific model. We suggest aiming for increased demand to definitively bring this new facility into activity. This would require particularly committed local authorities, or combinations of local employers. A target spend might be £1m of demand for paid work from a coalition of employers in a pilot area. These early launches could be benchmarked with sample metrics such as these, based on roughly £1m of eventual demand escalating over 12 months:

It should be pointed out that the hours worked per week per claimant is likely to vary widely around the average.

R i sks t o a p il o t

Risk Risk toproject

Mitigation

1. Inadequate commitment from catalytic employers

High Ensure sufficient lead time for engagement with employers. Target most likely employers (Councils, NHS, Housing Associations) systematically. (See appendix to this document for target roles

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within these bodies.)2. Failure to deliver UC

specific functionality in time

Medium Ensure adequate planning/building/testing time and clarity of scope.Build plan for phased introduction of required additional functionality with manual processes to cover any late arrival.3. Resistance from

claimantsLow There is likely to be many more claimants who require these

opportunities than the demand will support. Specific groups should be targeted (see below).

2) T h e fund i n g m o d e l

The service is unlikely to be able to support itself in its launch stage. This form of employment is most viable when it targets the most attractive worker groups, typically students. If it is to be built around claimants, there will need to be initial financial support to establish the basics of UC specific technology, support for launch projects and running costs while there is little activity at the start.

Hoewever, the model can graduate into sustainability. Each hour of paid work booked could carry a mark up to fund (a) the agency that validated the worker and will payroll them (b) the system’s own running costs. Once we understand DWP’s requirements better we can model this transition to self- funding.

3) Wh ic h cl a i m an t g r o up s ?

The “spare hours” concept works for any individual with irregular availability. We see the in-work conditionality cohort as attractive because they will be close to the labour market and strongly incentivised to maintain their reliability.

There is a second group that could be offered the facility with no conditionality. They include lone parents with child still below the age at which they must work, those with long term medical conditions that vary from day-to-day and individuals with whom JCP may be in contact who would like extra hours to avoid coming into the benefits system.

Business case for this proposal

It is too early to offer credible business modelling of this proposal’s benefits. However the following points illustrate the potential value of the offering.

1) F o r e m p l o yers

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A un i qu e n ew too l : This proposal would give DWP a unique offer for any employer who might need pools of top-up workers. In-work claimants are likely to be an attractive cohort. They are close to the labour market and will have shown they have the personal drive to seek extra hours. Used to short bursts of work, a pool of them that can be booked from in less than a minute could enormously aid business efficiency. By acting as catalyst, DWP would have an innovative possibility for employers.

D e t a il ed p r o f i l i n g : The system database will store highly detailed records of each claimant’s skills, experience, patterns of availability, response times, reliability record, utilization rates and personal rules for parameters such as minimum period of notice, area to which they will travel for bookings, minimum shift length, etc. JCP staff, or permitted employers, could search this to improve applicant matching for training or job opportunities much more accurately than before.

I n-p o s i t i o n t r i a l l i n g ma d e ea s y : Employers can try-before-they-buy. A company looking for 2 new warehouse operatives for example, might book ten local flexi-workers to cover an afternoon’s rush order, later deciding which to invite for interview. It can be a very cost effective way of trialling potential staff who live locally and have appropriate experience.

I n c reas i n g i n t ern a l h o u r s : If DWP wish, employers can be permitted to use the system as a way of allowing their own staff on zero, or reduced, hours to offer additional hours when they want more work. These staff can be prioritised by the system for bookings by that employer with other workers offered as top-up.

F o r D W P :

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L a b o u r market eff i c i en c y : Adding a very flexible, work-by-the-hour option to local labour markets benefits both those who can only work for odd hours and organisations that can use additional headcount at unpredictable peak times.

Pr o m ot i o n o f se l f - ser vi c e : this proposal allows claimants and employers to make their own day-to-day arrangements online. This is now the model for transactions across the consumer economy. It should encourage both parties to transact with DWP in this way across the full range of interactions.

D e t a il ed rep o r t i n g o f o u t c o me s : At local, regional or national level DWP would have access to highly granular reporting on this hour-by-hour activity. Local skills surpluses could be communicated to employers (“in Christmas week we have 2,000 available hours of workers with Food Hygiene Certificates who are willing to travel to your hotel”). Skills gaps could be quickly identified and under-utilized claimants offered appropriate re-training. Individuals with newsworthy achievements would be easy to identify. Benefits of interventions could be tracked in real time. The most effective agencies would instantly be clear. And so on.

Challenges of this proposal

P ot en t i al d i sp l a c e m en t : Could this proposal threaten some existing jobs? It is unlikely: conventional employees will always be cheaper, and easier to manage, than agency workers booked for a few hours. But there may be cases where a postholder is so underutilized that top-up flexi workers are a better option. However, that barely needed job is probably vulnerable regardless of this proposal.

N eed f o r s c a le : this fragmented end of the labour market needs critical mass to work effectively. Small scale pilots are unlikely to show the potential.

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U n l o c k i n g t h e d e m a n d : Employers will need to be educated about the possibilities opened up by this new aspect of the labour market. A first employer will need to be identified in each area, local authorities are ideally placed to fill this function by leveraging part of their contingent labour budget. Ideally, JCP managers would bring together key employers and the voluntary sector to create a pool of demand that should then grow organically.

Res i s t a n c e t o c o m pu t er s : not all claimants will have access to a PC or smartphone. No online service can avoid this problem. However, claimants could be assigned peer-to-peer support with an inducted mentor booked through the system, perhaps by a family member, to help the individual get online in a series of sessions in the Jobcentre or library.

Costs of this proposal

The key costs of launching this proposal are likely to be:

System costs These include: set-up, licensing and UC functionality, integration into the main UC site.Employerliaison

Initial demand will need to be identified and initial employers helped through the launchstages.

Staff time JCP staff will need to understand the data and supporting processes generated by this newform of employment. There may need to be an initial helpline facility for claimants.

Others Marketing, agency liaison, etc.

It is currently too early to meaningfully estimate these costs. But it should be noted than an early start to the project would enable the best use of resources and reduce costs.

Background to this proposal

Slivers-of-Time Working was launched by Slivers-of-Time (social business) Ltd. in 2005. The company was founded by European Philanthropist of the Year, Paul Barry-Walsh and technology journalist Wingham Rowan. Additional initial funding came from Office of Deputy Prime Minister. Our unique system has been in continuous development for many years. The early focus was on bringing people with restricted availability for work into the labour market. This has expanded into Slivers-of-Time volunteering and Timebanking.

We have been in conversation with DWP over many years. It has been clear for some time that the UC would create an opportunity for our platform to help DWP to make additional work and meaningful activity more accessible for claimants. In August 2012 Nominet Trust, the charitable arm of the UK Internet naming authority, provided £250,000 to fund our model of personalized, flexible, activity as it could be used within the UC. These pilots are now starting in partnership with three local authorities: Hertfordshire CC, LB Tower Hamlets and Bristol CC.

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APPENDIX: Target roles within local authorities/NHS/Housing Associations

Local Authority requirements likely to benefit from Slivers-of-TimeWorkers

= induction in advance usually required= CRB check usually required

Department ActivitiesGeneral Office support/phone answering

Catering

Site services /Facility management

Caretaking Ad-hoc cleaning Receptionist Post room deliveries / courier runs between buildings

Communications Leaflet delivery / distribution of council newspaper Customer research Poster distribution

Employment One-on-one training Awareness raising/leafleting

Leisure & Arts Lifeguards Attendants Event stewards

Public Realm Clearing of public spaces Street wardens Professional witnesses Assessing pavement repairs Traffic enumerators Park wardens

Contact centre Agents (particularly for hard-to-fill shifts such as 16.00-19.00 onweekdays)

Data entry / email response handlers

Housing Housing Adaptation Team (often have big backlogs of unentered data)

Roads Crossing patrols (“lollipop ladies”) Parking enforcement

Education Child Transport Supervisors Clerking at School Governors’ meetings

Social services Homecare Residential care staffing Mentors Escorting duties

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Electoral services Envelope stuffing Door-to-door checking of electoral roll Additional mailroom support eg: in election periods

NHS requirements likely to benefit from Slivers-of-Time Workers= induction in advance usually required

= CRB check usually requiredDepartment ActivitiesPublic Health Smoking cessation outreach

Data entry Manning stalls in public places General public health outreach

Social Marketing

Surgeries Receptionists Extended hours

Caretakers Archivists Phlebotomists Relaxation etc. trainers

Hospitals Porters Ward orderlies Junior nurses Catering Cleaning Physiotherapists Chiropodists

Local offices Secretarial relief Facilities management Call centre

Community Health Trainers Community nurses Community transport Health education session leaders Paramedics

Events cover Pre-natal trainers

Communications Urgent care education Delivery to households Assembling mail-outs Resident research

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Housing Association requirements likely to benefit fromSlivers-of-Time Workers

= induction in advance usually required= CRB check usually required

Department ActivitiesCommunications Market research

Resident satisfaction surveys Tenant Handbook distribution Roadshow stewards/caterers Leafleting Poster distribution

Contact Centre Call taker Phoning to fix appointments Data entry

Administrativesupport

Office assistance Envelope stuffing Archiving Scanning Post distribution Translators

FacilitiesManagement

Receptionist Switchboard operator Foyer Meet & Greet

PropertyManagement

Cleaning Moving furniture Erecting furniture Property checks/Void Administration Waiting in properties for meter readers Repairs/decorating

Public Space Graffiti removal Basic gardening Litter picking Manning stalls (eg recycling)

Security Neighbourhood Wardens Stewards at events

Information redacted under section 40(2)