Imagine that you are talking to a friend about pursuing a job in t
Presentation sweden
1. Why are we here?
Some reflections from international
benchlearning exercise as part of Finnish
National Service Structure Evaluation
4.4.2014
Tämä raportti on tarkoitettu ainoastaan hankkeen tilaajan sekä tilaajan nimeämien ja tunnistamien sidosryhmien käyttöön. Älä jää raporttia eteenpäin
ennen Tilaajan hyväksyntää.
2. I HAVE FOR YOU
• Some country level considerations
• Our thoughts from Sweden
• Initial ”set of the line of recommendations”, or themes (if we have time)
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3. The exercise
•
•
•
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Non-academic peer-review/benchlearning based on online materials, national
academicals and/or study trips (three set of countries)
Countributing directly to two themes of evaluation mentioned earlier
Countries covered are:
1. UK – Role of private providers, result based procurement and fate of social enterprises (with a
help from Dr. Kenneth Walsh, Director of TERN)
2. Switzerland – Performance Managment System (with help from Dr. Christoph Hilbert,
Conference Board)
3. Australia – Role of private providers and performance monitoring (with help from Dr. Tony
Eardley, University of New South Wales)
4. Netherlands – Role of private providers and e-services
5. Austria – Tripartite cooperation and role of Social parnters (with a limited help from a national
commentator)
6. Germany – Use of evidence in Hartz Reforms (with help from Professor Michel Neugar)
7. Norway – Cooperation between health-, social-, and welfare policies and state/municipal
cooperation (with help from professor Tom Christensen).
8. Denmark – Role of municipalities
9. Sweden – Special groups, use of evidence and ”acting as centralised agency”
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4. Sisällys
English background
Secondary
PRIMARY
In-between
COUNTRIES
COUNTRIES
This
includes
background
information
for
countries
with
external
reviewer
AND
a
study
trip.
UK,
SWITZERLAND,
NORWAY
This
section
includes
background
information
from
countries
with
external
reviewer
but
without
study
trip
GERMANY,
AUSTRALIA
This
section
includes
background
information
from
countries
with
only
a
study
trip
and/or
secondary
material.
DENMARK,
SWEDEN,
TO
SOME
EXTENT
AUSTRIA,
NETHERLANDS
COUNTRIES
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6. ”Cooperation between social-, health-, and employment
policies and division of work between state and municipalities”
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7. SUCESSESS AND CHALLENGES
AS
SEEN
AFTER
THE
STUDY
TRIP
1. Complex reform relatively successfully
implemented that has fostered policy
innovation as well (such as ‘active social
policies’ etc.)
2. Performance management model has
been relatively vigorous and also
provided some support for the
cooperation between state and
municipalities
2. Adding some municipal services has
caused security issues and also a feel in
NAV for more standardisation and more
tighter steering
3. Partners are now moving towards
mutual dependence and a growing
flexibility at both levels when it comes to
providing other services
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1. Legislative solutions forming the office
network is seen as a challenge and is not
cost-effective in the current/future
environment
3. Day-to-day dual management issues at
the office level
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9. THE POLICY GOALS OF SWISS
EMPLOYMENT POLICY IN ALL THEIR
BEAUTY
Strategic
choice
1:
no
other
employment
policy
goals
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Strategic
choice
2:
How
to
weigh
10. SUCESSESS AND CHALLENGES
AS
SEEN
AFTER
THE
STUDY
TRIP
1. A robust model for measuring the real
relational performance of the regional
employment offices based on claimant
data.
2. Other management tools and models
included in the agreement between
Cantonal and Federal Authorities –
relevance for developing services.
3. The amount of resources invested in
guidance
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1. Communication difficulties: What does
the model mean and how it is
communicated.
2. Does not include incentive money
which was the original idea (the best
performers would have a compensation
for ALPM costs from Federal Budget)
3. Some parts cannot be explained: How a
singe office develops over time, or what
actually affect the performance – even
though you still might have a gut feeling
11. ”The role of private providers
and social enterprises”
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12. SPECIFIC THEME
Role of private providers in overall
Role of private providers have been
gradually developing over the time. The
current main active programme, the
Work-programme delivers the services
for around 20 % of the JCP clients which
means 1 billion pound market for
private providers. Private including also
organizations in the third sector.
Generally it has been estimated that
around 60% of employment services
were offered by the public sector, and
the remaining 40% was equally
distributed between for-profit and nonprofit organisations (Dan Finn, 2011).
This statistics includes also other
specilied services bought directly from
JCP to help individual clients.
Drivers for the development have been
the government open paper (XXX) and
Commissioning strategy in 2008
defining the principles for the
outsourcing.
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Principles of commissioning strategy
The Work Programme
In 2008 the Comissioning strategy laid
down the following key principles, which
have been implemented in the Work
Programme.
WP was launched in 2011 to replace
earlier porgrammes. Unlike the earlier
programmes the WP is universal, meaning
larger, longer contracts and supporting a
range of benefit claimants. JCP refers the
clients to the WP afther they have been
unemployed for 6 to 9 months (depending
-
fewer, longer and larger contracts
-
Recognition of DWP stewardship
responsibilities
-
Development of standards for
relationships between prime and
subcontractors
-
Focus on outcomes and
competition for customers and the
”black box” model
This also meant, that the NGOs and
Charities are left to subcontractor status
in the main programmes.
on the benefit). This means that the
Programme targets especially long-term
unemployed or people in a risk of
becoming one.
.
13. WP CHARASTRISTICS
Payment by results and sustained
employment are the key characteristics
of the model. The majority of the
funding available to Work Programme
prime contractors will only be paid to
them as they achieve sustainable job
outcomes for clients. Payments are
bigger after people have been in work
for 6 months and beyond. This is
illustrated in the figure X.
As noted during the study trip, the DWP
pointed out that in some cases the
sustainment payments have been
relatively “long-tailed” and a shorter tail
of payments might be enough.
Black box approach means, that the
private providers have a complete
freedom to deliver tailored support
appropriate for the individual. This
leaves the freedom to providers.
Each of the client groups receive
differential pricing which means that the
providers are incentivised to work with
the harder groups. See Figure X.
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14. WP CHARASTRISTICS
Competition and Contract Package
Areas (CPA)
2011, DWP announced the 18
organisations who are the preferred
bidders for each contract. Overall, 40
contracts will be awarded, with at least
two in each region. The preferred
bidders include 15 private sector
organisations, two voluntary sector
organisations and one public sector
organisation. Out of the 40 regional
contracts, the overwhelming majority—
35 contracts (88%)—were awarded to
private sector organisations. Three
contracts (8%) were awarded to
voluntary sector organisations and two
contracts (5%) were awarded to
Newcastle College Group, a public
sector organisation.
Each Regional Area has 2 providers and
the market share of 5 % is shifter to
better performer and bonuses are paid
for better performers. Each performer
has to fill the minimum service
standards..
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AME DEL Switch
A specific but significant feature,
according to DWP, has been the AME
DEL switch which is an agreement with
the Treasury to pay for someof the
programme throught the benefit
savings it has achieved. This is
illustrated in the Figure X.
15. SUCESSESS AND CHALLENGES
AS
SEEN
AFTER
THE
STUDY
TRIP
1. Private providers can provide services
for long-term unemployed with lower
costs and good quality
Earlier studies support this claim. Also
according to DWP, the WP is in phase where
it can start to reinvest the benefit savings
again.
2. Result-based procurement relatively
well from all perspectives. Creaming and
parking has been kept on a decent level.
3. The outcome orientation can be seen
also in the JCP service model where
outcome base steering is measured in
relative simple flows to employment
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1. Developing the result-based
procurement needs time and careful
testing and piloting.
2. Administrative costs in checking
private providers through audits,
employers etc. is burdensome for
everyone involved.
3. Some of the more specialized providers
does not get enough clients and referrals
and have not sufficient funding, which
has led to some bankruptcies.
17. SUCESSESS AND CHALLENGES
AS
SEEN
AFTER
THE
STUDY
TRIP
1. Job Network and Job Services Australia
have achieved lower cost per
employment outcome. This is provided
by almost all studies.
2. Systemic learning: Continued adaption
of the system and the incentives. (low
levels of service for hard-to-place
clients in the beginning – still a
problem to some extent).
1. The system enables and requires
rationing of resources at the front line.
While these programs purport to invest
resources according to need, and across
the whole job seeker cohort, their
efficiency is in picking winners
2. Red tape. The system means that the
time is consumed in collecting and
verifying the required evidence. A
detailed review estimated the overall
administrative cost to providers for
claiming such payments at $1.5m per year
3. Contracting public services to the
private and not for profit sectors meant
an immediate reduction in general wages
and conditions for frontline workers in
the sector
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19. GERMANY
•
•
•
•
•
•
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Traditional story of ”successfull Hartz
Reforms”.
First time very systematic way to evaluate:
100 researchers as part of the reform, 20
organisations.
However many recent meta-analysis point
out, that from all the instruments
developed and tested during the Harz
reform, only one showed positive effect
(Ich AG, which was then terminated)
The smaller school of economists claim
that the success of the German Labour
Market is based on the decentralised wagebargaining which began in 1990s rather
than the acutal Hartz reforms, which tend
to be generall claim.
The use of evidence made the evaluation
culture stronger
Many of the publications are now basic
reading for all german labour market
economists
21. ”AND WHAT ABOUT YOU? – THOUGHTS OVER A PIZZA PLATE
YESTERDAY EVENING”
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22. SOME CONSIDERATIONS
Interesting themes
• Well resourced compared to Finland
• Central agency model seems to make
it possible to ”deliver priorities” by
creating innovative ways to organise
things within line organisation
• Programming culture and use of
evaluations for each of the key
programmes (and resourcing behind
this)
• Legal structure for FINSAM
• Yet you face similar issues for steering
as in Finland (lots of goals, focus on
the ”target of the indicator rather than
goal”, difficulties in prioritisation).
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Interesting, but yet little unclear
•
•
”The leeway of the local offices” –
what it really is as compared to what
you have to do….
The result based payment, how does it
work and what it actually is.
24. PRELIMINARY SETS
DEVELOP THE MARKET
Piloting result based procurement
Better measurement of performance as part of that
Increase market dialogue
CLEARER MBO AND PERFORMANCE MANAGEMENT
Alternative 1: Pilot result based performance
management of teams at the offices based on
comparative regression analysis.
Alternative 2: Clear the goals as part of the employment
services and provide more ”centralised steering”
MISC
Gather the information steering and structures for multiservice proversds
Increase cooperation between research providers – a
coordination function / programme
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