Reducing Unemployment in Northern BC PPT
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Transcript of Reducing Unemployment in Northern BC PPT
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By Valuenomics Inc.
Reducing Unemployment in Northern British Columbia with a Multidimensional Approach to Social Finance
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Overview
• Background
• Solution
• Benefits of Solutions
• Performance Measurements
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Background
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• Current environment provides an opportunity for the use of a social finance structures (SFSs) as an alternative for addressing social issues
• Valuenomics approach to social finance: – Based on systems thinking and economic value generation
– Provides an effective framework for the implementation of sustainable SFSs
• Incorporates a multidimensional approach to: – Business analysis
– Project management
– Implementations that integrates several business disciplines
• Consultation with potential partners for the implementation of a pilot project to address youth unemployment in Northern BC under a SFS model
Introduction
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• In 2010, the unemployment rate for BC’s Aboriginal Youth was 21.4%; higher than the average unemployment rate for BC’s youth of 13.8%
• Long-term youth unemployment limits life-time earning potential and requires expensive interventions to return youth to the workforce2
Youth Unemployment in BC
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Aboriginal Employment in BC
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Aboriginal Employment in BC
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Aboriginal Employment in BC
• Potential exists to increase employability and employment participation in sectors such as energy and mining.
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Labour Market Opportunities in Northern BC
• One of the fastest-growing economic regions in North America due to significant investments in natural resources
• $34 billion in capital investments in the next 3 years will drive employment growth in northern communities • Within 10 years, the value of northern projects will increase to $64
billion
• Mining industry is struggling to attract workers while Aboriginal unemployment remains stubbornly high (Business in
Vancouver, July 10)
• Mining industry is expected to face a labour shortage, as 8 new mines are set to open by 2015 and 9 others require upgrading (Northeast News, July 25)
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Solution
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• Opportunity focused on generating economic value gains for all parties in a SFS as result of factors such as:
– Improved cost efficiencies and effectiveness in attracting, retaining, and training a skilled young workforce
– Improved community involvement and public relations
– Improved employability and economic independence of participants
– Return on the social investment
• The validity of the economic model ensures sustainability of the SFS
Social Finance Opportunity
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Social Finance Structure
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Pilot Project
• Implementation of a Social Finance Structure to fund a Community-Based Employment and Training Skills Development Program
• Based on: – 24/7 ongoing support
– Screening process
– Pre-employment training
– Life skills training
– Job ready training
– Job placement and coaching
– 75% rate of success
– 71% of Aboriginal youth or young adults
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Additional Employment Support
Financial support to pay for:
• Obtaining a driver’s license
• Purchasing safety and protective equipment
• Temporary provision of transportation
• Temporary dependent care
• Temporary basic living expenses
• Temporary dental care
• Paying for pardons for criminal records
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• Improve employment outcomes for a youth pilot group in a selected community of Northern BC
• Generate economic value to main stakeholders
• Prove SFSs are a valid and sustainable funding alternative for addressing social issues
• Develop a general framework for the management and implementation of SFSs in Canada
Pilot Project’s Objectives
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Implementation Approach
Plan, Design, Do, Check & Act (PDDCA):
• Plan – Establish objectives & processes to deliver results with expected output
• Design – Identify service providers & design program
• Do – Implement the plan
• Check – Measure & evaluate the program
• Act – Confirm results & Pay for Success
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Risk Management
Concept is new and in large part unproven the opportunity for unintended consequences:
• Negative impacts to non-for-profits delivering valuable but hard-to-measure services
• Public perception of political favouritism & corruption
• Suffer similar implementation weaknesses akin to a public private partnership, or P3
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Performance
Measurements
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Monitoring & Evaluation
• 85% graduate rate
• 75% placed into employment after 6 months
• 90% placed into employment remain employed after 6 months
• 75% of those placed into employment remain employed after 12 months
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• Employment rate after 6 months
• Employability index
• Income assistance participation rate
• Average income assistance
• Average wage per hour
• Average working hours per week
Social Performance Measures
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• Program recruitment rate
• Program completion rate
• Program satisfaction score – Participants
• Program satisfaction score – Employers
Service Delivery Performance Measures
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• Cost per hire
• Training cost per new hire
• New-hire cost to productivity
• New-hire turnover cost
• Income assistance payments
• Public relations costs
Economic Performance Measures
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Benefits of
Solution
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SFS Economic Benefits - Example
Item Baseline Post Savings
Cost Efficiencies
Cost per hire $13,3001 $5,000 $8,300
Training cost per new hire $5,000 $4,000 $1,000
Lost productivity per hire $4,000 $2,000 $2,000
Turnover cost per hire $5,000 $2,500 $2,500
Savings per Hire $27,300 $13,500 $13,800
Public Relations (breakeven savings) $3,200
Income Assistance Savings
Single family rate = $610 x 5 months*10 participants
$30,500
Total SFS economic benefits per hire $47,500
Notes: 1 Conference Board of Canada
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Potential Benefits & Assumptions
• Improved social outcomes
• Economically quantifiable benefits to stakeholders
– Benefits to:
• Payer/Guarantor
• Investors
• Community
• Government
• Service Provider
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Questions
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Why Northern British Columbia?
BC Unemployment Rate (June/12) - Total BC = 6.6% - Aboriginal Population = 11.7% (excludes those living on-reserve)
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SFS Framework Overview
Idea Selection
Testing & Piloting
Resource Allocation & Pilot Implementation
Conceptual Service
Modelling
Data Collection
Contractual Framework * Performance Plans * Performance agreements * Estimated Savings * Financial Return
Implementation & Service Intervention
Private Investors
Performance & Contract
Management
Structuring & Scaling
Understand the issue Selection &
Feasibility
Financial Modelling, Reporting & Analysis
SIB Structuring
Social Impact Measures and
Outcomes
Performance Management System