Growth with social bottom line - Payment by Results (PbR)
Growth with social bottom line - Payment by Results was established by Den Sociale Kapitalfond in cooperation with TrygFonden, Tuborgfondet, Bikubenfonden and Markedsmodningsfonden. Between 2017 and 2018, 26 companies from 8 different municipalities participated in the projekt. The purpose of the program is to get vulnerable employees into the labour market and create a path for new and sustainable payment and financing mechanisms that benefit the welfare in Denmark. I perioden 2017-2018 deltog 26 virksomheder fra 8 kommuner i projektet.
Why?
More and more industries are experiencing a large labour shortage - and it is hampering growth. At the same time, 220,000 vulnerable Danes, of working age, are outside the labour market, and between 7-8% of young people do not get jobs or education. It is a societal challenge that we have too many people on the bench when there is also a shortage of players on the pitch.
What?
The program has been made through the development and growth of the working society and has created new opportunities for vulnerable, unemployed people. At the same time, the program tested whether the effort could be used as an investment model, a so-called "Payment by Results" mechanism, where the state pays for the results (e.g. the number of vulnerable/young people in employment) rather than the effort itself.
Payment by Results (PbR) is an effort in which the public, in this case a municipality, enters into an agreement with an actor, in this case Den Sociale Kapitalfond, to provide a service or effort in which the payment to the actor is based on the effect achieved rather than the activities or the specific effort. The PbR model has expanded to several countries in recent years as it can ease some of the pressures on public budgets in the modern welfare system. At the same time, the model can ensure that the public sector reduces its risk and achieves real growth and employment benefits that benefit citizens.
It has shown that the PbR mechanism is a profitable and usable method, which we, of that same reason, have used in severeal of our following programs.
How?
For six months, participating companies have been connected with highly qualified business developers who, based on the company's unique situation, have advised and sparred with management to boost growth on both the social and financial bottom line. This includes joint workshops with presentations within strategy, organisational development, business economics, sales and marketing and social models for the inclusion of vulnerable employees. Furthermore, the companies have gained access to, and sparring with, Den Sociale Kapitalfonds network of experts and municipalities. After completing the course, companies have either been offered mentoring with professional mentors as needed or have established advisory boards/boards.
Through the development processes, the accelerator program have made profitable and sustainable, economical model for inclusion of vulnerable people on the labour market.
What's in it for the companies?
- Free participation in the accelerator program worth DKK 450.000
- Intensive sparring from professional business developers to increase revenue, improve earnings and strengthen the company's social efforts and profile.
- Development camps with training from professionals in management, strategy, marketing, business and social bottom line, just as the companies will network with other companies.
- Closer cooperation with municipalities as a valuable recruitment partner in finding future employees.
