Introduction

REDF is dedicated to using data and evidence to improve its practice and the field of social enterprise. Our measurement and evaluation work includes tracking of social enterprise employees over time and other efforts that capture development of non-profit capacity and other key indicators. REDF’s Social Impact Report 2010 reports on one aspect of this work, highlighting key findings based on data collected by BTW informing change from 1163 individuals employed in social enterprises between 1998 and 2008. These individuals were interviewed when hired into a social enterprise and then tracked for up to 24 months after hire; the methodology section of this report provides further details on this process.

 

People Who Face Barriers to Employment are Willing and Able to Work

Social enterprise employment helps people who face barriers enter the workforce

Our findings show that people who face barriers to employment can work; and that social enterprise can provide an entry point to longer-term employment. Supporting new social enterprise employees through the early months of working can have a significant impact on long-term employment.

• People who are employed at any job 6 months after hire in a social enterprise were nearly twice as likely to be employed 18-24 months after hire compared to those not working 6 months after hire indicating that supporting employees through this early stage was critical to longterm employment³.
• This finding is consistent with recent reviews of the literature on work experience programs⁴ and transitional jobs programs⁵ reporting that programs with supported work of 6-12 months have the strongest evidence of successful long-term employment outcomes.
• Over time, the proportion of REDF social enterprise hires who were able to move into other employment increased (as shown in the bar graph below).
• Unemployment levels increased during the follow-up period, but remained below unemployment levels prior to hire.
• Among those interviewed 18-24 months after hire, 77% reported working in the previous 6 months; 59% had worked within the previous month.

 

How much are social enterprise employees working?

Wages and Income

Most social enterprise employees earn close to local minimum wage when hired. For those who remain employed, hourly wages increase nearly 1/3 over the next 18-24 months. Hours worked also increases over time, resulting in significantly higher income from employment.

• Between time of hire and 18-24 month follow up, average wages increased by almost one-third (31%). Enterprise employees’ average hourly wage increased from $8.51 at time of hire to $11.19 at 18-24 months after hire. Some of this increase was associated with movement into non-enterprise jobs offering higher wages.
• Over time, both hours worked and wages per hour increased, leading to dramatically increased income from employment among those working 18-24 months after hire. For those interviewed 18-24 months after hire who were working, monthly income from employment increased an average of $454 per month⁷, an increase of 90%.

Methods and Limitations

Face-to-face survey interviews were conducted with social enterprise employees at time of hire and up to two years after hire between 1998 and 2008. The majority of interviews were conducted by BTW informing change staff. Roughly 1/3 of all employees hired in REDF social enterprise between 1998-2006 participated in baseline interviews. There was significant loss to follow up over time (approximately 50% of those who participated in baseline interviews were not interviewed at 18-24 months). Challenges finding people over time is not unusual with a population having an experience of homelessness and/or instability, and this loss limits the interpretation of results, in particular as those lost to follow up may be different from those participating in follow up interviews. Analysis was conducted to compare the characteristics at time of hire between those interviewed at 18-24 months after hire and those who were not able to be found for interviews. Those lost to follow up were more likely to have unstable housing or histories of homelessness at baseline. All data were self-reported survey responses.

BTW and REDF produced several products over the years based on these data, including a series of Social Impact Reports in 2005 and 2006. In 2009, extensive analysis was conducted by BTW with input from REDF based on all social enterprise employee interview data collected from 1998 – 2008. Analysis was conducted in two ways: using a cohort approach, which included all data available at all time points, and a panel approach, using data from the subset of employees interviewed at all time points. This document, written by REDF based on BTW data, presents data from both analyses, identifying the type of analysis as relevant.

 

Lessons Learned and Next Steps

REDF has been helping create and support social enterprise for over a decade. We have learned a lot about how to help non-profits create and run enterprises dedicated to creating jobs for people who face serious barriers to employment. The data reported here demonstrates that many people who might be seen as impossible to employ are actually both willing and able to work. Jobs in REDF portfolio social enterprises have provided a path to higher wages and continuing employment. Beyond increased income and stability, many social enterprise employees report that working allows them to contribute to and be a part of the broader society.

However, these data also demonstrate some limitations and areas for further work. Here we briefly highlight these limitations and the steps we are taking to address them:

Challenge: The study methodology used in our Social Impact reports, while appropriate for initial research, is limited by lack of a comparison group and the difficulty of tracking people over time.	Solution: REDF launched a rigorous evaluation study in 2011, including collecting data on comparison groups. Strengthening tracking and follow up will be a crucial part of this study design.
Challenge: Data collection through traditional survey research creates a lag time during which organizations and funders cannot learn from the information being gathered.	Solution: REDF is supporting current portfolio organizations with a web-based performance management system and training to help each organization gather and use data in real time. REDF also convenes staff from its portfolio organizations in a learning circle to allow for on-going training and sharing of lessons across organizations, and is developing dashboards on employee tracking to enhance performance.
Challenge: Wages among those working show an enormous increase over time, nearly doubling between the time of hire and 18- 24 months later and higher than minimum wage. However, these higher wages still fall below calculated ‘living wages’ for the Bay Area, where living expenses are high.	Solution: REDF is working with its portfolio organizations and experts to design stronger services that help with the transition to non-social enterprise employment, with a focus on permanent and better-paying jobs that will further increase income and quality of life for employees over time.
Challenge: Hours worked vary across populations, and data in the report did not include analysis of the ‘fit’ between hours worked and the specific employee; for some, working less than full-time may have been a choice and appropriate for their needs; for others, the hours worked per week may have been less than they wanted to work and had a negative impact on their income.	Solution: REDF is working with its portfolio and experts to help strengthen the definition of what a social enterprise job is for specific people and their circumstances, incorporating considerations of people’s needs, limitations on earned income given particular disability benefits, and building opportunities for those who can to work more hours per week.

 

Citations

1. Substance Use and Mental Health Services Administration (SAMHSA). 2010
2. Petersilia, 2007
3. From analysis of those employees interviewed at all time periods (n=254); difference is statistically significant with a p-value of <.05.
4. Sattar, 2010
5. Bloom, 2010
6. Bloom, 2010
7. From analysis of those employees interviewed at all time periods (n=254).

 

References

• Bloom, D. (2010). Transitional Jobs: Background, Program Models, and Evaluation Evidence. New York: MDRC.
• California Budget Project. (2007). Making Ends Meet: How Much Does it Cost to Raise a Family in California?
• Petersilia, J. (2007). Meeting the Challenges of Rehabilitation in California’s Prison and Parole System: A Report from Governor Schwarzenegger’s Rehabilitation Strike Team.
• Sattar, S. (2010). Evidence Scan of Work Experience Programs. Oakland, CA: Mathematica Policy Research Institute.
• Substance Use and Mental Health Services Administration (SAMHSA). (2010). Facts on employment retrieved on September 22, 2010.