THIRD SECTOR EMPLOYABILITY FORUM

Resourcing the employability pipeline for those furthest from the labour market

The proposed Work Programme envisages payment by results – with a financial model to move people off benefits as soon as possible. Previous employment programmes following this model have mastered the art of “creaming” – working mainly with those closest to the labour market to trigger outcomes payments, and “parking” – providing precious little additional support for those with more complex needs.

Third sector employability organisations working with those furthest from the labour market seeadequate resourcing of this pipeline as one of the most important issues to be addressed.

Very real challenges with this model include:

  • Organisational capacity and resources necessary to participate
  • Funding model that does not recognise ongoing costs
  • Outcome paymentssolely on job outcomes and not on distance travelled
  • Scant recognition of the time it may take to support someone towards, into and then perhaps in work
  • No realisation of the range of softer outcomes achieved (self-confidence, self-esteem, physical / mental health improvements etc) in the process or journey itself

For many of the people third sector employability organisations support , the journey through the employability pathway is equally as important and valid as any final sustained job outcome and should be measured and valued just as highly.

Third sector employability organisations are not opposed to payment by outcomes, but these should include engagement, the development of soft skills, and distance travelled.

There is interest in the development or recognition of some common practice or universal tools that might usefully be used to measure distance travelled,enabling a stronger case to be made to service commissioners and social investors.

There are some good case studies from organisations in Scotland about the effectiveness and value of additional interventions, such as mentoring or volunteering.

Whilst employment policy is reserved to the UK Government, policy on employability is devolved to the Scottish Government. What measures might be enacted that fall within this remit?

KEY QUESTIONS:

What are the main challenges around resourcing the employability pipeline for those furthest from the labour market?

People with multiple disadvantages take longer to get into work, and so providers will shoulder risk for clients who are not job-ready. An alternative position is that employability is part of a recovery care package and is part of their route to economic independence. There is an economic rationale for doing something differently. (Investing in ability – not compensating for disability).

Scotland’s supported employment framework uses a five-stage model which does not fit with the DWP paper. There is a defined and identifiable need here, where turnaround times are very different, and which does not fit well with large volumes. There needs to be smart thinking about how an alternative framework of services – previously supported by local authorities, European Social Fund, Deprived Areas Fund and the Big Lottery Fund – might now be resourced. We want to offer a working life for all disabled people and see employment as part of the route out of poverty.

Is there more we need to know to have a fuller picture?

There are many good practice case studies in existence, but we do not know how widely they are known or shared. At the heart of this is a flexible, person-centred approach with personalised services and a navigation of the benefits maze.

We need to know more about what impact the Work Programme will have on previous or existing models.

What actions would we like to see taken to improve the situation?

Clarification on terms

Awareness of national frameworks

Communications strategy to employers

Specifically, what are the “asks” we want to make of the Scottish Employability Forum?

Within the current review of Training for Work, what capacity is there for resourcing clients who are not yet job ready?

How can we resource vital components not currently funded, such as specialist information and advice?

Promoting good practice in the workplace (employers and trade unions)?