ADVOCACY
Getting paid for jobs you create – social enterprises and Payment by Outcome Mechanisms
White Box Enterprises CEO, Luke Terry, has been at the helm of significant advocacy work regarding Payment by Outcome mechanisms. A relatively new concept, Payment by Outcome is focused on getting social enterprises paid for the work they do serving and supporting their communities.
What is a Payment by Outcome mechanism?
Payment by Outcome (PBO) mechanisms are an innovative way for governments to work with the private sector to solve complex social problems.
In this model, the government does not dictate how each service provider should carry out their work to achieve the agreed outcomes. Instead, they leave the design of the service delivery model up to the provider, relying on a demonstrated track record of success.
Payment by Outcome models allow the focus to be on supporting long-term outcomes, rather than activities and incremental progress. It gives power back to social enterprises and allows them to do what they’ve always done best – create real impact.
Why is a Payment by Outcome mechanism important for social enterprises?
Work-integrated social enterprises (or WISE) are playing an increasingly important role in addressing complex barriers to employment. WISE experience significantly better employment outcomes, with success rates of 80% to 52 weeks and beyond.
This is because WISE provide the training and wrap-around support – such as workplace capacity building, flexible work environments, social support structures and career support – that are essential to success in day-to-day operations.
An outcomes payment structure which incentives long-term employment will fund these additional costs and help to create impact at scale.
White Box Enterprises are advocating for a Payment by Outcome mechanism for Australia’s WISE sector. We believe that this mechanism has the potential to bring social enterprise into the mainstream fabric of employment and positively impact the lives of thousands of Australians and their families.
Through creating a set of Payment by Outcome design principles, we hope to strengthen the voice of the WISE sector and raise the profile of Payment by Outcome across Australia.
If you are a work-integrated social enterprise, we’re committed to ensuring that you are paid for the work you’ve always been doing. We’d love to know if you are interested in participating in future Payment by Outcome mechanisms – you can let us know by filling out the following form.
Whether you’re in the WISE sector or you just want to stay updated with the latest news from our advocacy work in this space, you can sign up to our Payment by Outcome mailing list, where we keep you in the loop.
Want to know more about Payment by Outcome? Here are some examples from around Australia and the world of governments partnering with the sector to achieve solutions to complex social problems.
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We are proud to work with social enterprises all over Australia. We acknowledge and pay our respects to the Traditional Owners of the land we work and live on, recognising that Sovereignty was never ceded. We pay our respects to the First People of this country, their culture and Elders past, present and emerging.