2. Introduction
Payments By Results
Work Programme
The future e.g. Transforming Rehabilitation/WorkChoice/WP2
Market share shift
End loaded contracts
3. The Third Sector is traditionally better at providing bespoke
services and individual support that promotes sustainability
with so called “disadvantaged groups”
With the right platforms, processes and planning the Third
Sector will ALWAYS be better than the private sector at
delivering sustainability because they PUT THE CUSTOMER
FIRST!
4. Payment by Results Five Main
Problem Areas
Areas we will cover:
Finance and Forecasting
Caseloading and RAG rating/Staff Resource
Employer Engagement
Sustainability
Quality and Compliance
5. Financing and Forecasting
Troubleshooting
Issues:
Contract Profiles v performance
Delivery to meet Contract Compliance (not getting thrown out of supply
chain)
Level of Deficit against profiles
Delivery to meet organisational financial needs (more than contract
minimums)
What is realistic to achieve?
7. Financing and Forecasting
Issues:
Current Conversion Rates
Case loads too high? Too many staff?
Throwing money at problems and poor performance
Lack of accurate output forecasting for cash flow
Unable to return contract due to punitive penalties
Overgenerous resourcing
Been put on performance improvement by Prime (Breach)
8. Solutions: Finance and
Forecasting
Cost/benefit analysis of overall contract value for next 6 months
Design Flight Path forecasting for each year.
Regular checks of unclaimed output opportunities
Cut out resource waste and duplication i.e. premises, staffing, resources
Exploit double funding opportunities i.e. with other partner courses with
REDs
Viability of Contracts through overall improved performance in all areas.
10. Caseloading and RAG rating
Most people can‟t RAG rate properly
Which effects everything from forecasting to assignment to wrong staff
Ineffective employer engagement
12. RED Amber Green
Profile of RAG Rated Clients
RED – extensive
barriers to
overcome to enter
employment, lots of
support needed,
low self confidence,
no employability
skills
Areas:
CV‟s
Employability
Training
Basic Skills Training
AMBER - Need
motivating, some
employability skills,
previous
employment skills,
some interview
skills, recently
gained skills
qualifications
Areas:
Interview Training
CV‟s
GREEN –
Motivated, keen to
work, self-
confident,
employability skills,
ready for interview
Areas:
Arranged
Interviews
Mock Interviews
Maximise
Confidence
15. Employment Advisor Profile:
Team qualities/skills;
• Empathy, compassion personal experience of related barriers
(disability/addiction/homelessness/criminal record/debt)
• Sales/target driven/bonuses
• Graduate – no experience in W2W
(articulate/good communication skills/creative)
–some organisations have made this their model for staffing
• Commercial recruitment background
• Trainer/tutor
• Older – diverse employment history
• Volunteers (how do we use them?/could be any of the above)
• Mentors - (how do we use them?/could be any of the above)
• Who does In-work support calls?
• Administrators (how are they used/ what are their skills?
• Any of the above?)
16. Staff Resource
Issues:
Division of case loads does not reflect staff skills
Lack of output targeting set for staff
Unrealistic panic targeting against staff skills
Culture shift and team dynamics
Problems with TUPE staff
Lack of Accountability of poor performers.
Lack of effective supervision
17. Solutions: Staff Personal Action
Planning
100% Buy-in by staff to the contract (collaborative Flight Path)
Effective Targeting. Do you have team targets or/and individual targets?
How are those targets communicated (competitions, team boards etc)
What sanctions are you prepared to impose on poor performance?
18. Solutions: Staff Resource
Perform team skills analysis and individual staff review
Examine Case Load and link to identified skills set
Set clear challenging realistic targets for all team members
Develop individual staff work plan and support through effective supervision.
Effect staff buy-in through accountability (wake up call)
Instigate regular staff performance meetings. (channelling what works)
Channelling whatever works with team dynamic
Put in place effective supervision structure with both rewards (incentives) and
consequences for non performance within the team dynamic
Break up cliques, of poor performers and effect proper inductions of TUPE staff.
19. Employer Engagement
Issues:
Lack of dedicated member of staff
Lack of skills in sales and employer engagement
Wasting resource on unrealistic jobs opportunities
Lack of communication between advisors and employer
engagement staff
Lack of understanding of case load potential or limitations
Organisation working in isolation within local labour market.
20. Solutions: Employer Engagement
Identify or recruit most suitable member of staff to dedicated post.
Examine the caseload‟s skills and aspirations for unrealistic
expectations within local labour market
Partner with other organisations to maximise replicable vacancies
Working with other organisations fulfil employer vacancies
Regular team meetings to discuss employer engagement and
interventions re caseload
Essential investment in Employer Engagement Post or Training.
21. Sustainability
Issues:
Lack of resource for contract
Pressure of short term performance targets affecting long term contractual
compliance resulting in job dropout etc through lack of proper job
matching.
Excessive pressure on staff to perform to meet short term gains.
Organisation at high financial risk due to poor performance
Performance slippage after short term bursts of crisis management of
contracts.
22. Solutions: Sustainability
Embed monitoring systems and tracking to ensure monthly targets are
met.
Higher success will generate more income to meet resource demands.
Ongoing analysis of good practice and what works to evolve, up skill
and develop competencies to meet contract targets.
Effective forecasting to ensure long term goals and targets are met.
Proper support to staff to ensure development of skills and aid delivery.
Building up a network of suppliers, employers, complementary
agencies to ensure delivery of outputs.
23. Quality and Compliance
Issues:
Contracts in breach due failing audits/quality/compliance
Over or under resourcing of quality systems to meet compliance
Lack of staff buy-in and commitment to contract quality issues
Huge risk in terms of illegality through fraud due to lack of internal
audits, and checks.
24. Solutions: Quality and Compliance
Designate a quality compliance champion within the organisation to
monitor and ensure contract quality and compliance standards are met.
Ensure that minimum quality standards are met and reduce administrative
burden on organisation.
Encourage staff peer auditing to reduce quality admin and encourage
good practice and time effectiveness.
Set minimum file reviews per month to ensure that files are all reviewed
ready for any contract audits.
Ensure staff buy-in by integrating into staff roles rather than it being seen as
something „extra‟.
25. Exercise 2 : Turning around a failing PBR contract
26. Exercise 2 :
Jobs-R-Us is a London-based charity with 22 staff members and a turn over of
£1.5m. They have a number of W2W contracts and have a successful track
record of delivering employability contracts for GLA, ESF, London Councils etc
to long term unemployed. They also deliver literacy, numeracy and ESOL
classes.
They are tier 2 end-to-end delivery provider on Work Programme and have
approx 800 customers. They initially started well and met all their targets for job
entries but for the last 6 months they have had erratic performance (sometimes
meeting in-month contract targets and then the next month being 60% below
profile). This has resulted in them becoming significantly behind profile and
having a deficit that is accumulating every month. The Prime has put them on
a 3 month Performance Improvement Plan (PIP) and the Board have raised
concerns about cashflow. The staff have been made away that they may
have to make redundancies if this continues and this has seriously impacted on
staff morale.