Understanding Impact Business Models: Workforce Development

What is the intent of the Impact Business Model?    

How do I assess my company’s eligibility for this Impact Business Model?    

What are some examples of products and services that have this impact?    

My company may be eligible for this IBM. How do I open this IBM in the B Impact Assessment?    

My company may be eligible for this IBM. What supporting information do we need to provide?    

Concepts in the B Impact Assessment    

What is the intent of the Impact Business Model?  

Chronic barriers to employment limit the access of certain groups to achieve and maintain dignified employment and gain upward economic mobility. Some companies have recognized the opportunity to leverage their hiring and worker practices as a means to provide quality jobs and training to those who are systematically affected by unemployment. Companies with intentional programs to hire, train, and employ workers who face chronic barriers to employment may be eligible for the Workforce Development Impact Business Model (IBM).

This IBM is found in the Workers Impact Area of the B Impact Assessment (BIA). For companies on the zero-worker track that don’t have the Workers Impact Area, this impact business model is not available. 

How do I assess my company’s eligibility for this Impact Business Model?

Companies with the following characteristics or practices may be able to capture their impact in this Impact Business Model:

• Intentionally hire and employ workers (full-time, part-time, or temporary) with verifiable chronic barriers to employment in the region in which the company operates. Only individuals who are included in the worker count of the B Impact Assessment are considered for capturing impact in this section.

• The company trains these workers to safely and successfully fulfill all their core job functions.

• The company offers one of the two or both benefits listed below:

• Payment of either living wage or 10% (or higher) above the local minimum wage,

• Extensive upskilling or life skill training and support - beyond the basic core job function training. 

• The company can track and report on the number of workers with barriers to employment who are receiving one or both of the workforce development benefits mentioned previously - quality jobs with above-market wages and benefits and/or extensive upskilling or life skill training and support.

What doesn’t qualify:

Companies that happen to employ individuals with chronic barriers to employment but do not seek to hire this population intentionally as part of their business design nor provide any of the forms of assistance outlined above. 

What are some examples of practices and programs that have this impact?

The following practices are common examples captured in the Workforce Development IBM:

• Companies establishing a workforce development program focused on intentionally hiring a specific group with barriers to employment in their geography and offering them above-market wages and/or specific paid training.  

• An open hiring program that hires the first individual to apply for the job, regardless of educational qualifications or past experience, and without a formal resume or interview process.

• Partnering with a hiring organization that focuses on integrating individuals with barriers to employment into the job market. 

• Specific paid training as part of the workforce development program that goes beyond core job skills, such as life skills training (e.g., financial literacy, social skills), employment support (e.g., resume writing and interviewing training), mentorship, certification programs (e.g., health and safety certifications). 
  
  

This is an illustrative, non-exhaustive list of practices that can be captured in this IBM.

My company may be eligible for this IBM. How do I open this IBM in the B Impact Assessment?

If you are considering opting into this IBM, you must answer specific questions about the impact of your business model or products and services that will determine which Impact Business Models you see in your BIA. These questions, called gating questions, ensure that you know the content that is most relevant to your company in your assessment. 

To find the gating questions for the Workforce Development IBM, navigate to the Workers Impact Area and search for the questions titled, “Workers Impact Business Model Introduction” which must have the following answer option selected. 

If answer option 2 applies, the response “Yes” must be selected for the following questions: “Workers from Chronically Underemployed Populations” and “Job Quality for Workers from Chronically Underemployed Populations” (not pictured).

Any deviation from this will prevent the Workforce Development IBM from becoming visible in your BIA.

My company may be eligible for this IBM. What supporting information do we need to provide? 

These are some examples of evidence that your company can provide during the Verification stage to confirm the applicability of the Workforce Development IBM. These examples are not exhaustive – depending on your company’s specific business model or context, your Verification analyst may require additional or different documentation.

• Credible data to demonstrate barriers to employment or informal employment rates for the particular region the company operates (e.g., government data, research papers, specialized NGOs reports).

• Workforce development program description or internal hiring policies supported by exemplary job advertisements.

• Formal agreements and communications with hiring partners, such as partner organizations that focus on integrating individuals with barriers to employment into the job market.

• Descriptions of open hiring programs or open hiring position advertisements.

Concepts in the B Impact Assessment 

Chronically underemployed populations - are groups that face systemic barriers to achieving and maintaining employment. Barriers to employment will vary by context and by geography but generally include low-income communities, physical or mental disabilities, homelessness, incarceration or criminal history, alcohol or drug dependency, and a history of experienced violence (political, gang, or domestic). However, this list is non-exhaustive. Other factors may also be considered "barriers to employment" when there is evidence that a group lacks access to jobs due to chronic discrimination in a particular market. This may include discrimination based on gender, race, ethnicity, color, disability, political opinion, sexual orientation, age, religion, or social origin.

Full-time Employee: Full-time paid employees work year-round and typically work 35-50 hours per week. If local definitions of full-time equivalency differ, use the appropriate standard. 

Part-time Employee: Part-time paid employees work year-round but do not meet full-time equivalency standards (typically less than 35 hours a week). 

Temporary Employee: Temporary employees are defined as seasonal and contract employees. Seasonal employees are primarily used in agriculture or fisheries. Contracted employees are generally hired for the completion of a specific task.

Living Wage - A Living Wage is defined as "the remuneration received for a standard work week by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, health care, transportation, clothing, and other essential needs, including provision for unexpected events" Global Living Wage Coalition

Minimum wage is defined as the lowest wage permitted by law. 

Open Hiring Program - A hiring policy that accepts applicants on a first-come first-serve basis. Open hiring policies include programs in which an employee is hired regardless of barriers to entry, including lack of skills, criminal background, etc.