September 21, 1999

To:Community Services Committee

From:Commissioner, Community and Neighbourhood Services

Subject:Enhanced Employment Placement

Purpose:

This report describes the key features of the Provincial enhancements to job placement services provided under the Employment Placement (EP) component of Ontario Works (OW). Toronto Social Services' (TSS) proposed model for delivering these enhanced services is then discussed. The report also briefly provides a current picture of who is required to participate in the OW program, and the types of activities that these clients are engaged in.

Financial Implications:

The mandatory changes to the Employment Placement stream of OW announced by the Province will be cost shared on an 80/20 Provincial/Municipal basis. TSS's year 2000 budget submission incorporates costs associated with delivering enhanced EP.

Recommendations:

"It is recommended that:

(1)City Council endorse the proposed model for delivering Enhanced Job Placement services in Toronto, as outlined in section II of this report; and

(2)that the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto."

Background:

On December 17, 1998, the Minister of Community and Social Services (MCSS) announced an enhancement to the existing EP program whereby private sector employers would be paid to provide on-the-job training to social assistance recipients. Drawing on information available at the time, an initial report dated December, 31 1998, describing the basic elements of this new program feature, was forwarded to the Community Services Committee in January 1999. In order to provide delivery agents with further details about these mandatory changes to the EP program, the Ministry released implementation guidelines for Enhanced Job Placement (EJP) services in April 1999.

Implementation of EJP was initially undertaken in four selected delivery sites across the Province (Sudbury, Muskoka, Halton and Hamilton). In the remaining delivery sites, including the City of Toronto, proposals to implement EJP must be forwarded to the MCSS Toronto Area Office. Program implementation will commence in late 1999. Service targets and performance requirements for this new program feature will be integrated into the City's OW Business Plan, and into contracts with agencies and organizations providing job placement services for the City.

This report will provide an overview of TSS's approach to implementing Enhanced Job Placement in Toronto, and the anticipated benefits to clients and employers that will accrue from the implementation of this new program feature. The report will also provide an update on the numbers of clients participating in the OW program in Toronto, and the types of activities they are participating in. This information establishes the context within which TSS continues to refine and improve the design and delivery of services available to clients under the OW program.

Discussion:

I.An Overview of OW Participants:

Under OW, all adults in receipt of benefits, including spouses and adult dependants, potentially have participation requirements. These individuals must be involved in one or more activities that will lead to employment in the shortest time possible, or that will increase their skills and aptitudes. Activities include a wide range of skills development courses, structured job search programs, and employment or community placements.

Recent changes in the overall caseload profile, which were analyzed in a recent report to the Community Services Committee, dated August 23, 1999, clearly influence who is available to participate in OW program activities. The overall length of stay has increased, especially for families with children, which now comprise a majority of adults in receipt of assistance. There is also an emerging long term caseload, comprised primarily of families with children, notably single parent families.

Who Can Participate in OW Activities:

As per Provincial policies, all families with children under 4 years of age, people over 65 years, those who are ill, temporarily disabled or caring for ill dependants, homeless people, and others with valid reasons may have their participation requirements deferred or exempted.

There are also significant numbers of individuals engaged in activities consistent with the aims of the OW program, which subsequently restricts their ability to participate in any additional OW program options. Two such groups are students (the vast majority of whom are completing high school) and individuals who are already working and have employment earnings, but who still qualify for assistance due to their low incomes. In fact, the proportion of cases with earnings has climbed steadily over the past four years, increasing from 12 percent in 1995 to 18 percent currently. Another relatively small number of individuals or families receive benefits for only short periods; either because they are waiting to obtain other government benefits for which they are eligible (e.g. Employment Insurance), or because they require assistance on an emergency basis only.

As a result of these factors, at any given time, the actual number of people who are available to participate in new activities is much smaller than the total number of adults enrolled in the OW program.

From an operational perspective, there are a number of other issues that must be considered when assessing whether clients can be successfully referred to skills development courses or to placements in employment or in community agencies. These are described briefly below:

(1)For many families with children, the ability to participate in OW activities is determined by the availability of appropriate supports, notably child care. In June 1999, there were approximately 12,000 families with children between the ages of 4-10 years of age who were not in receipt of subsidized child care, and who were not receiving any other child care supports through OW. Without access to adequate and reliable child care, this sizable group will be at best able to be involved in OW in a limited capacity. Currently, Provincial funding under OW in the amount of $13.9 million, supports provision of child care to just over 2,000 children whose families are participating in program activities.

(2)The constant turnover of cases also affects the rate at which clients can be referred to different activities, or placed in jobs or community placements. In June, over 5,300 cases left OW, while 5,400 cases became eligible for benefits. While both groups participate in OW activities, particularly clients leaving the program, this ongoing dynamism means there are sizable numbers of clients flowing through the system at all times.

(3)About 15 percent of cases remain on assistance for less than four months. As the recently released KPMG report "Ontario Works in Toronto: An Operational Review" recognized, it is counterproductive to involve clients who are highly employable, and who should be assisted to return to work as soon as possible, in activities which will keep them on assistance for longer periods. There are a limited number of activities that will facilitate rather than hinder rapid entry into the workforce for these clients. Similarly, it will not be productive to invest significant resources in clients who are waiting to receive other government benefits.

(4)At any given time, substantial numbers of clients are actively involved in one of the OW program streams, or have been referred to specific courses or placement opportunities. Table 1 provides data on the number of clients who have been referred to, or have participated in, the Employment Support (ES), Employment Placement (EP) or Community Participation (CP) streams in 1999. Since in many cases an individual involved in one activity cannot feasibly participate in another, the majority of clients in ES, EP or CP are not available to participate in other activities.

(5)Perhaps most importantly, it is critical that clients are referred to services or directed to activities that are appropriate given their skill and education levels, as well as their previous work experience, and that will most effectively assist them obtain and sustain employment.

Thus, while there may be a sizable number of clients available at any one time to participate in OW activities, there is a much more limited number whose best interests are served by taking specific training courses, or who are sufficiently employment ready to be successfully placed in jobs through the EP program stream. It is also apparent that a growing number of participants, notably families with children, have become increasingly detached from the labour market. As a result, there is greater pressure on the Division to more effectively target both staff time and supports based on client need, such that the right services are available to the right clients at the right time.

It is within this context that TSS is developing its approach to delivering Enhanced Job Placement services in Toronto.

II.Delivering Enhanced Job Placement in Toronto:

The Current EP Stream:

Through the EP stream, "job-ready" social assistance recipients are placed into unsubsidized, competitive employment positions. In Toronto, TSS has contracted with 19 agencies in 25 locations to deliver the job placement function of EP. In 1999, the gross budget for EP is $6.0 million.

Under the current EP service delivery model, TSS is responsible for coordinating client referrals to job placement agencies, ongoing case management, data capture, reporting, problem resolution and monitoring of agency contracts. Once referred, participants are screened by agencies. If accepted, the agency provides instruction to clients on basic job search techniques, develops participant job search plans, provides access to resources to support job search efforts, markets participants to employers, matches participants to jobs, and monitors participant activities.

In 1999, over 4,700 clients have been referred to EP agencies. Thirty percent of these referrals have been accepted by job placement agencies, with approximately 850 clients placed in jobs.

Enhanced Job Placement:

The basic enhancement to EP announced by the Province is the financial incentive that can be made available to private, public and not-for-profit employers who hire OW clients and agree to provide formal job related training. This employer subsidy is intended to offset employers' hiring and on-the-job-training costs. Additional incentives for employers include:

(1)hiring assistance and screening and matching services, provided either by the delivery agent or by an employment placement agency;

(2)human resource support services to assist participants in the workplace;

(3)Workplace Safety Insurance Benefit (WSIB) coverage;

(4)provision of Employment Related Expenses; and

(5)coordination with other federal and provincial programs.

Employers who hire OW participants can be provided with these financial and associated incentives for a maximum of 6 months, with the expectation that the participant will remain employed after the end of the 6 month period. An alternative funding model for enhanced job placement has been introduced by the Province which gives the Division greater flexibility, both in terms of designing and delivering effective job placement services and providing financial incentives to employers. Details are provided in section (c) and below.

Both the financial incentive and placement service components of Enhanced Job Placement are cost shared on a 80 Provincial/20 Municipal basis, and will be funded out of the Division's year 2000 EP envelope, which equals $6.3 million gross.

Overall, the City supports the Province's direction, and believes the enhancements made to the EP stream will enable the Division to more effectively assist less job ready clients to obtain and retain employment.

Delivery Framework:

Reflecting Provincial aims, TSS's objectives for Enhanced Job Placement are to:

(1)place Ontario Works participants into employment as quickly as possible;

(2)develop and foster long term sustainable employment for Ontario Works participants;

(3)address employment skill development through training;

(4)generate reductions in Ontario Works financial expenditures; and

(5)allow greater flexibility for service delivery and funding.

The following section briefly describes the key elements of TSS's approach to delivering Enhanced Job Placement services.

(a)Client Target Group:

Currently under EP, OW participants who are most job ready are referred to agencies providing job placement services. However, given rapid changes to caseload composition, these agencies have observed that even those clients who are seen to be job ready increasingly face significant barriers to establishing and maintaining employment in Toronto's competitive labour market. For this reason, the Enhanced Job Placement option will be targeted primarily at clients who were unsuccessful in finding employment through the regular Employment Placement (EP) program. Where it will improve the likelihood that these less job ready clients will obtain employment, a financial incentive will be offered to employers. This incentive can also be used to help certain participants with specific barriers secure employment (ie. the hearing impaired). Job ready participants will continue to be placed into employment opportunities without the use of a financial incentive.

(b)Service Delivery Model:

Job placement services will be delivered in two ways. The Division will work with the 19 EP agencies currently providing job placement services, and expand their responsibilities to include delivery of the Enhanced Job Placement option. By adapting the existing delivery model, caseworkers can continue to focus on client assessment, referral, and case management functions. Agencies will continue to complete job readiness assessments for all referred clients, and use their expertise to provide job search supports, and screen and match participants to suitable employment opportunities. They will now have the flexibility to determine whether an employer requires a financial incentive to secure the client's employment. Agencies will also assume the new responsibilities of negotiating placement contracts with employers, monitoring employers to ensure contract compliance, developing training plans (in conjunction with clients and the employer), and marketing EJP to employers.

In the fall, TSS will hold an information session for the 19 agencies currently providing job placement services under EP, as well as the 24 agencies which provide training services under the Skill Development Option (SDO) but are not involved in EP. All of these agencies will have the opportunity to indicate their interest in delivering Enhanced Job Placement. Depending on the take up rate among current agencies and the available budget, in early 2000, TSS may approach a broader range of community agencies and organizations to explore their interest in becoming EJP delivery agents.

Complementing this approach, local Social Services offices will also initiate and develop projects, in conjunction with employers and community based agencies, which respond to the specific employment needs of participants and/or employers.

(c)Funding Model:

As part of the changes to EP, the Province has provided additional flexibility to fund job placement services on a fee-per-placement basis. TSS's proposed funding model represents an improvement for current EP agencies, which will now be paid a flat fee for each job placement. The maximum average fee per placement that can be paid to agencies under Provincial guidelines is $1,800.00. TSS will also be paid a minimal amount on a fee-per-placement basis to defray its costs. All fees are paid in arrears, and are paid based on the achievement of specific milestones (based on the length of time the client remains employed) established by Provincial guidelines.

(d)Payments to Employers:

As noted previously, financial incentives can be provided to employers to subsidize training costs associated with hiring less job ready OW participants. Payments to employers cannot exceed $4,000.00 for a six month job placement. However, according to Provincial guidelines, the average level of incentive payments to employers should not exceed $2,000.00 except where higher payments will enable the delivery agent to respond to unique opportunities

Payments will be structured to encourage employers to assist those clients who face additional barriers in the labour market, and who may require more intensive training supports. Fees will be paid in installments, and on the achievement of specific milestones. When a financial incentive is provided, employers must provide training to the client. Where an employer engages a recognized third party to provide training to a client, an additional financial incentive of up to $500.00 is available to the employer.

(e)Program Administration:

In order to ensure efficient and effective program delivery, and to minimize financial risks to the City and agencies, TSS will be responsible for:

(1)management of both agency and employer contracts;

(2)payment to placement agencies and employers;

(3)management of the problem resolution process; and

(4)ongoing program administration.

Job Placement agencies will negotiate placement contracts with employers on behalf of TSS. TSS will provide final approval of all contracts. Similarly, where a financial incentive is provided, a job placement training plan will be completed by the agency during contract negotiation with the employer, with final approval provided by TSS. Agencies will be responsible for monitoring the employer and participant's status during the 6 months of initial employment. TSS will ensure contract compliance in all aspects of delivery.

Outcomes will be tracked through a central Divisional data base. Information will also be collected from clients and employers as a means of assessing the effectiveness of the EJP delivery model.

III.Implementation:

Upon submission of its Business Proposal to MCSS, the Division will prepare for program implementation in late 1999. To obtain input into the design of the Division's EPJ delivery framework, to date TSS has consulted with the Ministry, other OW delivery sites and selected staff. During the development phase, TSS will consult further with a wide range of program providers (e.g. Human Resources Development Canada, Ministry of Colleges University and Training), business organizations, other corporate departments (e.g. Economic Development), and agencies currently under contract with TSS.

The Division will also work with key groups, notably employers, to promote services provided to OW clients under the Enhanced Job Placement model. Extensive efforts will also be made to inform staff and clients about EPJ services. Agencies will dedicate time to approaching organizations and a range of employer contacts to promote and develop placement opportunities.

Conclusion:

Currently, OW offers a variety of employment services and supports to clients. Subsidizing employers to provide on the job training, particularly for certain clients that may face barriers obtaining employment in Toronto's competitive labour market, is an important addition to this service continuum. The City supports the Province's direction, and believes the enhancements made to the EP stream will enable the Division to more effectively assist less job ready clients to obtain and retain employment.

Contact Name:

Heather MacVicar

General Manager

392-8952

General Manager, Social Services Division

Commissioner, Community and Neighbourhood Services