Social impact investment to get unemployed people in vulnerable housing areas into jobs

6. July 2022

To get as many as possible of the 70 citizens from vulnerable housing areas in Kolding Municipality into long-term ordinary jobs. This is the goal of the new social impact investment "A new start for more", which the Social Capital Fund Effekt has entered into.

This time it is in a partnership with Kolding Municipality and Marselisborg – Center for Development, Competence and Knowledge. The parties are joining forces to tailor a solution that will get 70 non-job-ready citizens from vulnerable housing areas citizens into long-term, ordinary jobs. The citizens in the target group may, for example, be long-term unemployed and at the same time face challenges in family life or single support.

A holistic process with the citizen in focus

Marselisborg, which specializes in development processes in the public sector and has completed over 100,000 citizen courses, will have a special focus on creating an understanding of the individual citizen’s overall situation. This is both to be able to create the best possible competence development while at the same time improving the job match between the citizen and the relevant company. Through a prior design process, the citizen has had the opportunity to influence the process from the very beginning and is also assigned a personal job advisor who is in contact with both the citizen and the citizen’s employer. If the citizen loses his or her job, he or she will therefore not be sent to a job centre, but instead work with the job counsellor on a new employer or education.

Payment based on effect and not effort

The new collaboration is based on a so-called social impact investment, which is a partnership between a municipality, a supplier and an investor who have entered into an agreement to solve a challenge in society. The way it works is that Den Sociale Kapitalfond Effekt invests in an employment initiative, which is handled by Marselisborg, which then organizes a course for citizens in Kolding Municipality with the goal of them becoming partially or fully self-supporting. Kolding Municipality and Marselisborg have an internal performance contract, where the municipality only pays for the citizens who get a job. The effect of the effort is calculated on an ongoing basis, so that Kolding Municipality ultimately only pays back the investment from Den Sociale Kapitalfond Effekt based on the effect achieved by the effort. If jobs are created for many of the citizens, a financial return on the investment can also be achieved. This means that both the investor receives a return while the municipality’s costs for transfer income have decreased. At Den Sociale Kapitalfond , we continuously develop our method based on the experience we gain. You are always welcome to contact us if you want to hear about our experiences or have an idea for a social impact investment.

Documents

Contact

Jannik Tharben Buchholz
Managing Partner
+45 3131 9260

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