'Payment by Outcomes: Measuring the Effectiveness of Jobs-Focused Social Enterprises', Centre for Social Impact

This report, authored by the Centre for Social Impact (CSI) Swinburne, evaluates the Australian Government’s Payment by Outcomes (PBO) trial. This innovative approach links funding for jobs-focused social enterprises to the employment outcomes they achieve, focusing on individuals facing barriers to work, including those with disabilities.

Key Features:

1. Trial Overview: social enterprises receive payments at six, 12, and 18 months for each job outcome, covering wraparound support costs such as counseling, skills training, and case management. The trial integrates 16 social enterprises coordinated by White Box Enterprises, focusing on jobseekers out of work for at least nine months in the past year.
2. Evaluation Focus: individual Impact: Assesses improvements in participants’ well-being, income, and employment stability.
3. Organisational Impact: Evaluates how PBO funding supports social enterprises to provide tailored services.
4. Systems-Level Impact: Examines the potential of social enterprises as part of a reformed employment services system.

Outcomes:

• First-year findings report improved well-being, income, and sense of belonging for participants.
• Second-year results highlight three employment transition models: Fresh Start, Supported, and Secondment-First transitions.
• Positive systemic outcomes include the scalability of the aggregator model (coordinated funding across multiple enterprises) for greater efficiency.

Policy implications:

• Emphasises the flexibility required in funding models to address diverse and non-linear employment pathways.
• Advocates for integrating social enterprises into mainstream employment services to enhance outcomes for individuals with complex needs.

Why It Matters:
This trial demonstrates the value of linking funding to measurable social outcomes, offering insights into scalable and sustainable models for addressing employment challenges. The report provides valuable lessons for policymakers, funders, and practitioners in designing outcome-focused interventions.