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The Work ProgrammeFact and FictionSean WilliamsManaging Director,G4S Employment Support Services

10th July 2012

Fact: The Work Programme is Working

G4S’s Work Programme has supported over9,000 people into work in its first year;

Over 80% of the people that we help aresustaining that employment;

We have already saved the taxpayer £54million in annualised benefit savings.

Fact: The Work Programme is Already More Cost-Effective than the Programmes it Replaced

Fiction: The Best Way to Measure the Performance of ActiveLabour Market Programmes is to Focus on the Percentage ofPeople Supported into Employment

Consider 3 employment projects

Project 1 costs £1 million. It has 10 referrals andhelps 9 people into jobs.

Project 2 costs £1 million. It has 1,000 referrals andhelps 400 people into jobs.

Project 3 costs £1,000 million. It has 1,000,000 andhelps 399,000 people into jobs.

Percentages Verses Absolute Numbers

Percentages into jobs are not nearly asimportant as absolute numbers;

Cost per job is important but not as important asabsolute numbers;

In a payment-by-results AME/DEL fundedmodel it is better to have a high investment/highreturn programme than a low investment/lowreturn model even if the cost per job start ishigher.

Fiction: The Work Programme is Being Given theOpportunity to Support All Customer Groups

Breakdown of UK Benefit Claimants

Fiction: The Work Programme is Being Given theOpportunity to Support All Customer Groups

Breakdown of Referrals to the Work Programme

Fiction: The Work Programme is Being Given EnoughReferrals to Ensure that it is a High Investment/High ReturnProgramme

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Fiction: The Black Box Approach Leadsto Some Customers Being Parked

Black Box (with payment by results) creates thebest conditions to guard against parking;

It is not possible to achieve a step-change inperformance without appropriately supportingevery individual;

Centrally prescribed minimum standards lead toless personalised support not more;

Centrally prescribed minimum standards lead tocasuistry.

Fact: G4S’s Situational Approach is Proving MoreEffective than a traditional Rule-Based Model

Situational Approach:

Proven;

Pragmatic;

Personalised.

‘Appropriate’ support not ‘identical’ support;

Quality measured through observation,narrative and questioning. Not through tick-boxes.

Fiction: There are no jobs to place people into so weshould stop trying

Lump of Labour Fallacy;

2 Islands – each with a population of 3

Island A: 1 person fishes, 1 person cooks, 1 person collectsherbs

Island B: 1 person fishes, 1 person cooks, 1 person isunemployed.

Skilled, motivated jobseekers increase theamount of jobs in an economy;

Getting people into work increases the amountof jobs in the economy;

In difficult economic times it is more importantto support unemployed people not less.

Fiction: Sector A is Better Than Sector B atSupporting People into Employment

G4S have a completely transparent and faircomparative performance system;

We have a broad range of subcontractorsdrawn from the public, private and voluntarysectors;

We produce monthly league tables of oursubcontractors comparing Referrals to JobStarts and Referrals to Job Outcomes;

There is no correlation between what sector anorganisation is from and their performance oneither measure.

Fiction: Sector A is Better Than Sector B atSupporting People into Employment

Sector

Organisation

Rank

Newhaven

Pinnacle People

Richmond

Kennedy Scott

RBLI

PPDG

Medway

Kent Supported Employment

ATS

Romney

Fact: Prime Contractors Evolving the Supply ChainWorks

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Job Starts pre and post supply chain change

Questions?