NAWRS/NASTA 2012 Annual Workshop

Subsidized Employment Programs: Lessons Learned from the ARRA Initiative August 19-22, 2012
Amy Rynell arynell@heartlandalliance.org

National Transitional Jobs Network

The National Transitional Jobs Network (NTJN) exists to ensure that policies account for the hard-to-employ, that programs are able to effectively serve as many individuals as possible, and that best practices and technical assistance are widely shared and implemented throughout the network. The NTJN offers
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Subsidized Employment History

1930s Works Progress Administration, 1970s Public Service Employment program through CETA 1990s welfare to work grants spurred TJ growth

Washington State Community Jobs, Georgia Goodworks

The last recession spurred unprecedented growth in subsidized employment through the TANF ECF

40 states and DC over 280,000 placements in SE

As TANF ECF funding expired most states ceased programs and a few states are re-purposing a portion of their funds to continue SE. programs. New TANF waiver creates new opportunities

Lessons learned from TANF ECF subsidized employment expansion

SE and TJ programs served a range of low-income, unemployed populations

TANF recipients, UI recipients, non custodial parents, youth, low-income families

States identified subsidized employment programs as a new way to engage clients States demonstrated ability to scale-up and implement cost-effective programs quickly

The TANF ECF flexibility led to a myriad of design innovations

Structures variations
Partners - intermediaries, WIBs Direct placement with private employers

Tiers based on skills and readiness

Length of time

Wage subsidy varied

100% capped subsidy

Step down subsidies Prevailing wage Length of time

Subsidized employment programs positively impacted individuals, communities and employers

Stabilized individuals and families through earned income & increased total family earnings Stimulus effects in local communities Increased payment of federal and state income, Medicare and Social Security taxes Employers reported improved financial health, increased quality of work, and increased productivity

Our business was

able to service more clients, do more outreach, marketing and capacity building.

Chicago TJ Employer

Employer Feedback: Put Illinois to Work

74%: productivity increased 69%: current workforces satisfaction with workload improved

67%: able to serve more customers

61%: quality of work improved 58%: saw customer satisfaction improve 58%: financial health was better or somewhat better

Looking Ahead: Planning for Future Subsidized Employment Programs

Program goals & target populations need to mirror program design

Federal, state and local flexibility matters

High level, visible leadership helps with employer commitments Eligibility should be streamlined and simple Capacity of providers and knowledge of program implementation critical

Lessons for Employer Engagement

Pitch the subsidy bottom line impact, rebate, internship like

Made it an employer friendly program simple paperwork, timely reimbursements

Program staff need to offer key supports Ensure good matches needs, skills, interests Sell as an opportunity to try out employees

Appeal to economic return as well as to altruism

Important Questions for TJ/SE Planning

Who is the target population? What sectors will provide the TJ/SE jobs? What will be the subsidy structure? How many participants can be served given the budget?

What entity will act as employer of record?

What partners will provide support services? How will job-readiness training be delivered? What policies, forms and tools need to be developed? How will data be collected and outcomes measured?

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