White Box Enterprises has released its second year independent evaluation of the federal government Payment By Outcomes (PBO) Trial, further strengthening the case for jobs-focused social enterprises to play a more prominent role in Australia’s national employment services system.
The report by the Centre for Social Impact at Swinburne University of Technology (CSI Swinburne) highlights the significant impact of social enterprise employment on individuals facing complex barriers to work, and supports recommendations from the House Select Committee on Workforce Australia Employment Services for an increased role for social enterprise in the employment system.
Key findings from CSI Swinburne’s evaluation of year two of the PBO Trial, from July 2023 to June 2024 include:
- Social enterprises outperform traditional employment services
The PBO Trial specifically targets individuals who have been out of work for at least nine of the last twelve months, including people with a disability or those eligible for the Community Development Program.
- 88 participants of the trial’s 132 participants (67%) reached their 12-month employment milestone. This is almost three times the rate of the same cohort of people supported through Disability Employment Services (26%)*.
- 88 participants (67%) are still in award wage employment today - 64 individuals are employed in a social enterprise, 24 have transitioned to mainstream employment.
- Social enterprise employment has a positive ripple effect in individuals’ lives
- 80% said their employment circumstances have improved over the last 12 months.
- 76% said their sense of belonging has improved over the last 12 months, enabled by new friends at work and feeling a sense of community with like-minded people at work.
- 64% said their financial circumstances have improved over the last 12 months.
- Almost two-thirds (64%) reported their mental health had improved over the last 12 months, and more than half (56%) said their physical health had improved.
- Social enterprises have varying unique employment transition models
For the first time, the evaluation articulates three distinct employment transition models through which social enterprises are supporting people into meaningful, sustained employment.
- Fresh start transitions. Where social enterprises work intensively with their employees to improve their ‘employability’ for future workplaces.
- Supported transitions. Where social enterprises leverage existing business relationships to find suitable employment opportunities, working with both the employee and new employer.
- Secondment-first transitions. Where social enterprises facilitate supported transitions (as above) that include a secondment style agreement with the new, future employer.
According to Mark Daniels, White Box Enterprises, the evaluation further proves the effectiveness of jobs-focused social enterprise, “For many individuals in the PBO trial, this is the first time they’ve experienced sustained employment after years of cycling in and out of fragmented work or low-quality jobs, or being excluded entirely from the workforce.”
“This report demonstrates the payment-by-outcomes model is working with social enterprise for this small group of individuals. It’s time to go broader and test the model with other individuals in our employment system.” said Daniels.
The second-year evaluation of the trial comes at a crucial time, following last year’s review of Workforce Australia Employment Services and the recommendations for reform.
“In the findings of The House Select Committee on Workforce Australia Employment Services, social enterprise was called out several times in the recommendations.”
“The federal government acknowledged that up to 10-20% of jobseekers in the employment system would benefit from the more personalised, flexible approaches, like those provided by social enterprises.”
“We (the sector) know social enterprise works. The federal government knows social enterprise works. It’s time to apply the learnings we have and put more pilots and trials in place, so more people can benefit from social enterprise employment.” said Daniels.
To download the CSI Swinburne Second Year Evaluation of the PBO Trial visit the Payment By Outcomes Trial page on the White Box website.
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*Taylor Fry. (2024). Costs and benefits comparison social enterprise employment and Disability Employment Services. White Box Enterprises. August 2024.