ISSUE BRIEF OVERVIEW ABOUT THE SERIES ABOUT IMPAQ INTERNATIONAL TRANSITIONAL EMPLOYMENT PROGRAMS PROGRAM OVERVIEW, COMPONENTS, AND MODELS

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1 ISSUE BRIEF TRANSITIONAL EMPLOYMENT PROGRAMS PROGRAM OVERVIEW, COMPONENTS, AND MODELS OVERVIEW ABOUT IMPAQ INTERNATIONAL With research studies, program evaluations, implementation assistance, surveys and data collection, technical solutions, and communications strategies, IMPAQ helps governments, businesses, foundations, non-profits, and universities evaluate and enhance their programs and policies. Transitional Employment Programs (TEPs) are a unique approach to serving job seekers with multiple or significant barriers to employment by providing a combination of paid work experience with job-readiness training and supportive services. Together, these program elements aim to help participants overcome significant barriers to obtaining long-term, paid employment. This issue brief presents an overview of the goals, target population, and main program components of TEPs. These briefs will help to build an understanding of the variation in these programs as well as the existing evidence that support specific program practices. This will serve an important first step to improving the delivery of services by identifying areas for subsequent research. ABOUT THE SERIES ISSUE BRIEF AUTHORS Carolyn Corea Yang Chen Kelley Akiya Jessica Cadima IMPAQ International evaluates and enhances public programs and policy. This is the first in a series of issue briefs discussing Transitional Employment Programs (TEPs). This first brief introduces TEPs and their main program components. Subsequent briefs in this series will focus on specific components of TEPs and compare implementation across different program models. This series of issue briefs aims to bring awareness to this important workforce development approach and to encourage future research to identify TEP program practices that are most successful in achieving program goals. MARCH 2017

2 INTRODUCTION Looking for work can be a challenge in the best of situations. While many jobseekers need only to seek training and/or education to improve their likelihood of employment, others must overcome multiple and significant barriers to employment, such as homelessness or a criminal record. These individuals are considered the most difficult to employ and require comprehensive services to find and keep employment. Transitional Employment Programs (TEPs), offer one approach to serving job seekers with multiple or significant barriers to employment. TEPs provide paid-work opportunities for job seekers needing more intensive services than typical workforce development services, such as job search and job development assistance or shortterm training programs. The blending of paid work experience with job-readiness training and supportive services distinguishes TEPs from other conventional employment and human service programs. Together, these elements provide participants with exposure to the norms and behaviors required in the workplace, income to help address basic needs, and an employment record and references that are essential to obtaining a permanent, unsubsidized job. GOALS OF TRANSITIONAL EMPLOYMENT PROGRAMS TEPs aim to provide cost-savings to society by: Reducing recidivism, Reducing the reliance on public assistance, and Increasing tax revenue resulting from increased permanent employment. TEPs also provide an opportunity for local employers to build capacity and establish a relationship with a new worker with minimal risk. TEP PARTICIPANTS TEPs serve populations that are most in need and hardest to employ. These individuals face multiple and significant barriers to employment such as: Unstable, or lack of, prior work history, Recent incarceration or criminal record, Homelessness, Mental health disorders, and/or History of substance abuse. In addition, TEP participants often lack essential soft skills needed to find and maintain steady employment. They may also have a history of chronic unemployment and experience extreme poverty with few options to earn income and support their families. i Prior studies suggest that employment barriers, such as a criminal record, adversely affect an individual s subsequent employment, wages, and job stability. ii EVALUATING & ENHANCING PUBLIC PROGRAMS & POLICY ISSUE BRIEF 2

3 TEP COMPONENTS Different types of organizations, including nonprofits and state and local government agencies, operate TEPs. While there is variation in the type of operators, they generally include the following program components: Recruitment and intake, Job readiness training, Work experience opportunities, Subsidized wages and other financial incentives, and Case management and supportive services. RECRUITMENT AND INTAKE TEPs generally work with partners such as local public workforce offices (often called American Job Centers), jails, or halfway houses to recruit participants. Many TEPs also conduct outreach on their own to recruit participants directly from the community. Since TEPs target hard-to-serve populations, job seekers must typically meet certain eligibility criteria that demonstrate their barriers to employment, such as previous incarceration and/or lack of a high school degree/ged. For eligible job seekers, TEPs typically hold an orientation and administer assessments/screenings to identify specific needs or barriers such as homelessness or substance abuse disorders that require immediate attention and additional services. JOB READINESS TRAINING Job readiness training provides participants with the basic skills and knowledge needed to help find and maintain employment. In general, job readiness training teaches participants job search strategies, soft skills (behaviors needed to succeed in a work environment), and basic technical skills such as using a computer to check or send resumes. Job readiness curricula may include a range of topics such as coping with personal barriers, conflict resolution, job search and interview techniques, workplace behavior, and financial management. The duration of training varies across programs, ranging from part-time classes held over just a few days to more intensive full-time training held over several consecutive weeks. Job Readiness Example In Tarrant County, Texas, the Next Step TEP program conducts mock interviews to teach participants how to disclose and discuss their criminal history with potential employers. As part of their job readiness training, this exercise helps participants discuss their past while demonstrating the valuable skills and perspectives gained through the program. WORK EXPERIENCE Several key aspects characterize the work experience component of TEPs. First, TEPs place program participants in transitional jobs and provide TEP-funded subsidized wages. In addition, TEPs encourage job retention by ensuring participants are supported by onsite supervisors and TEP staff. The duration of transitional employment varies across TEP programs as do the type of employers providing placement. Placements may be just one month or as long as six months. Placements may be within the organization that operates the TEP or with outside employers, public or private. The program s work experience model often dictates the placement setting. There are 3 common work experience models: Individual Placement Individual placement programs - the most common TEP model place participants with an employer where the individual may be the only TEP employee at a particular site. Transition to Unsubsidized Employment Example A key component of the Next Step TEP program was the guarantee from employer partners that participants could apply for an unsubsidized job at the end of the subsidized employment period. Work Crew Organizations operating TEPs according to the Work Crew model, also serve as the temporary employer. Under this model, small groups of participants work together on the same project at one location. Participants work under the direction of a crew leader, often a TEP employee, who supervises them through project completion. The TEP may contract with government agencies or private firms to perform specific tasks such as maintenance or sanitation services. Social Enterprises In Social Enterprises, the TEP operator again serves as the employer but participants instead work on-site producing/selling a product or providing a service that helps generate revenue for the program. For example, a TEP operated by the Goodwill-Easter Seals of St. Paul Minnesota uses Goodwill retail store locations and light manufacturing plants to provide the work experience opportunity for its participants. TEPs and Social Enterprises Example Homeboy Industries is a social enterprise in California employing formerly gang-involved and previously incarcerated individuals in their businesses, such as restaurants and grocery stores. EVALUATING & ENHANCING PUBLIC PROGRAMS & POLICY ISSUE BRIEF 3

4 SUBSIDIZED WAGES & OTHER FINANCIAL INCENTIVES Subsidized wages and other financial incentives are critical components of all TEPs. Not only do they help participants cover basic expenses, they also promote self-sufficiency and reward attendance and job retention. Typically, TEP participants can earn subsidized wages through three types of activities: work experience, job readiness training, and post-placement retention. Wage Rates Example The Project Empowerment program in Washington, D.C. provides wage subsidies slightly below the District s minimum wage rate, which work to encourage participants to seek unsubsidized jobs with higher pay. Work Experience - Participants earn subsidized wages for the hours they work during their transitional job. Job Readiness Training - Some TEPs also pay subsidized wages to participants for the time spent in the job readiness training. Post-Placement Retention - Some TEPs that successfully place individuals in permanent, non-subsided jobs, reward participants with bonus payments when they reach specific job retention milestones. Retention Example Project Empowerment uses retention incentives to encourage and reward participants for obtaining and retaining unsubsidized employment. Participants receive retention bonuses after reaching the following employment benchmarks: independently secured employment, employed for 30 days, employed for 90 days, employed for 180 days, and employed for one year. CASE MANAGEMENT & SUPPORTIVE SERVICE Case management and supportive services are essential in helping this hard-to-serve population progress through the program successfully and transition to unsubsidized employment. To keep participants engaged, case managers regularly meet with participants to develop an employment plan, assist participants with their job search, and provide referrals to needed support services, such as mental health and substance abuse treatment, housing assistance, and additional education and training. Case managers also work with the employers and participants to identify and resolve any performance issues that arise at their job. Additional Support Services Example The Step Up TEP program in Texas allows participants to coenroll in the Fatherhood Project if help is needed with parenting or child support. Project Empowerment provides participants with one-onone financial literacy training though a partnership with the Capital Area Asset Builders (CAAB). CAAB counselors discuss methods for savings and ways to increase credit scores. SUMMARY TEPs use a unique approach to help difficult to employ individuals overcome significant barriers in order to find longterm unsubsidized employment. In addition to providing valuable benefits to program participants, these programs serve employer partners and society as a whole. While TEPs consists of a similar set of program components, there is significant variation in implementation across programs. EVALUATING & ENHANCING PUBLIC PROGRAMS & POLICY ISSUE BRIEF 4

5 OUR EXPERTS CAROLYN COREA Carolyn Corea, M.S.W., a Research Associate at IMPAQ, is currently serving as IMPAQ s process study lead on a number of DOL evaluation studies and was the Project Manager for the DC DOES Project Empowerment program comparison study. YANG CHEN Yang Chen, Ph.D., specializes in Labor, Applied Econometrics, Demographic Economics, and Law and Economics KELLEY AKIYA Ms. Kelley Akiya, M.P.Aff., a Senior Research Analyst at IMPAQ, has expertise in mixedmethods and qualitative evaluations and leads implementation studies of workforce development initiatives. IMPAQ S MISSION IS TO CREATE ENDURING SOLUTIONS TO GLOBAL PROBLEMS THROUGH RIGOROUS APPROACHES AND INNOVATIVE THINKING. JESSICA CADIMA Jessica Cadima, M.A., is a senior research analyst with experience implementing and evaluating employment and training programs at American Job Centers. IMPAQ International evaluates and enhances public programs and policy. Questions and comments can be directed to IMPAQ International. For more information visit or call (443) i Heartland Alliance National Initiatives. National Transitional Jobs Network. Transitional Jobs: Frequently Asked Questions (December 2012). Retrieved from: ii See, for example, Bushway, S. (1998). The Impact of an Arrest on the Job Stability of Young White American Men. Journal of Research in Crime and Delinquency, EVALUATING & ENHANCING PUBLIC PROGRAMS & POLICY ISSUE BRIEF 5