Engaging Employers As Partners in Subsidized Employment Programs

Background and Purpose: The overwhelming majority of studies of subsidized employment (SE) programs for public assistance recipients and low-income, unemployed individuals have focused on employment and earnings outcomes for participants. Relatively few studies have examined employer experiences and perceptions. As employers are key stakeholders in a SE program, engaging them effectively is essential. Our study presents findings from qualitative interviews with 81 employers in four counties in a major metropolitan area regarding their experiences in working with employees placed through a SE program.

Methods: This was a qualitative, exploratory study designed and conducted in partnership with an 11-member consortium of county welfare-to-work directors. The county social service agencies provided lists of all employers who participated in their program.  Random sampling with replacement was used to draw samples, with a total sample size of 81. The interviews were conducted over the phone by three MSW student research assistants, using a semi-structured instrument with open-ended questions. The data were analyzed using Dedoose, a web-based, qualitative analysis software platform. Throughout the data collection period, the project staff and leaders met weekly or bi-weekly to discuss themes as they emerged in the interviews. The codes developed focused primarily on overall positive and negative experiences, hiring process, reasons for participation, employee and employer characteristics, program features, and suggestions for improvement. Inter-coder reliability was established through multiple rounds of test coding, until a kappa score of .70 was achieved. The preliminary findings were presented to the consortium of welfare-to-work directors, who provided rich feedback and suggestions.

Findings: Findings clustered into four areas related to employer engagement: 1) Marketing the program; 2) Program structure; 3) Economic climate; and 4) Suggestions for program improvement. Findings related to marketing the program included how employers learned of the program, employers’ reasons for choosing to participate, and benefits of participation. Employers’ responses regarding how they came to participate in the program reflected a continuum from direct recruitment by an individual from the SE program to active seeking on the part of the employer. Employers articulated both altruistic and financially-oriented motivations for participating in SE programs. A benefit of the program was that many employers reported that they enjoyed watching employees develop skills and confidence. Themes related to economic climate included how the recession had impacted businesses, sometimes creating greater need for subsidized employees, but also meaning that many highly qualified applicants were available for open positions. Employers experienced some challenges in collaborating with the social service agencies, including communication problems, burdensome paperwork, and lack of clarity about program timelines and policies.

Conclusions and Implications: Main implications include the need to do outreach to employers to engage them in the program, the articulation of program benefits to employers in outreach materials, and clear communication between the county and employer. A few employers wanted to be involved in setting goals for, and evaluating the success of, SE programs. Social service agencies may want to consider creating community advisory boards comprised of employers who can provide timely program feedback.