accessability social economic return on investment final documentation
TRANSCRIPT
Undergraduate Consulting GroupDetermining the social economic return on investment (SROI) for AccessAbility’s Career & Educational Pathways (CEP) program
Final DocumentationNovember 2015
-- In partnership with --
AgendaStarting PointAnalysisCase StudyConclusionPersonal Impact StatementsAppendix
The Minneapolis Foundation wants the ROI for the 11 month old CEP Program
Starting Point Analysis Case Study Conclusion PIS Appendix
UCG’s approach was a 4 part process to determine the ROI for the CEP Program
Starting Point Analysis Case Study Conclusion PIS Appendix
Segment ROI calculation
Analyze each Segment for Benefits
and CostsRelay assumptions
and results with SMEAggregate results and
determine implications
Determining CEP’s SROI is broken into Income Potential, Lack of Recidivism, Inside Jobs and Total Costs
Starting Point Analysis Case Study Conclusion PIS Appendix
-SROI-
Income Potential
Lack of Recidivism
Inside Jobs
Cost
Benefits
Each segment was further structured to find individual data points to aggregate
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Income Potential Lack of Recidivism Inside Jobs Cost
How much more a CEP Graduate has the ability to
earn
How much society saves as the CEP program keeps
people out of prison
Wages paid to CEP participants for
AccessAbility jobs
The amount of money that CEP has
spent to run the program
CEP Graduates - - Operating Costs
Credential Holders W/O a
Job- - Volunteer Labor
Value
Current Credential Seekers
- - -
SEGMENTS
Table 1.1 - Benefit Segments & Sub Segments
AgendaStarting PointAnalysisCase StudyConclusionPersonal Impact StatementsAppendix
Income Potential benefits equations were crafted with the Wilder Foundation
Starting Point Analysis Case Study Conclusion PIS Appendix
CEP Graduates
Credential Holders W/O a
JobCurrent
Credential Seekers
, where IP = ER * w * 2080
SEGMENTS
NEMP # of Employed
Participants
NUNEMP # of
Unemployed Participants
w/o a Job
NCURRENT # of
Unemployed Participants
IP Income
Potential
wAverage
Annual Wages of
AccessAbility Participants
SR Credential
Success Rate
ER Employment
Rate
Table 2.1 – Income Potential Benefit Equations
For simplicity’s sake, actual data can be found in the Appendix.
More equations were created to calculate Lack of Recidivism benefits
Starting Point Analysis Case Study Conclusion PIS Appendix
Lack of Recidivism
SEGMENTS
AccessAbility’s
impact on Minnesota average
Minnesota rate of incarceration for convictions
AAverage stay of
jailCost of jail per
inmate
Table 2.2 – Lack of Recidivism Benefit Equation
For simplicity’s sake, actual data can be found in the Appendix.
The last equation was to calculate Inside Job benefits
Starting Point Analysis Case Study Conclusion PIS Appendix
Inside JobsSEGMENTS
NEMP # of
AccessAbillity Employed
Participants
wAverage Annual
Wages of AccessAbility Participants
Table 2.3 – Inside Job Benefit Equation
For simplicity’s sake, actual data can be found in the Appendix.
After the data was collected, reformatted and analyzed, the information was aggregated
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Income Potential Lack of Recidivism Inside Jobs
$1,672,332.40 $30,087.27 $105,000
Total Benefit
$1,807,419.67
Table 2.4 - Benefit Per Segment (in Dollars )
Largest driver of CEP’s benefits comes from CEP
Graduates
- Insight - AccessAbility’s ability
to graduate CEP program participants turns into a positive
quantifiable return for society
Cost* equations were derived but were already calculated by AccessAbility
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Operating Costs
Volunteer Labor Value
SEGMENTS
NEMP = # of AccessAbillity
Employed Participants
NVOLUNTEER = # of
AccessAbillity Volunteers
W = Average Annual Wages
Table 2.5 – Cost Equations
*Participants employed by CEP added a societal benefit but added an equivalent cost to AccessAbility
Total costs were straightforward to find
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Operating Cost Volunteer Labor Value
$705,000 $1,750
Total Cost
$706,750
Table 2.4 - Cost Per Segment (in Dollars )
Cost Breakdown42.45 % Taxes & Benefits14.86% Raw Wages
Raw Wages
Taxes & Benefits
To determine the ROI, total benefits were divided by total costs.
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Total Benefits$1,807,419.67
Total Costs$706,750
For every $1.00 spent by AccessAbility’s CEP
Program, society gets a social return on its
investment of$2.79
Future ROI Calculation Walkthrough
AgendaStarting PointAnalysisCase StudyConclusionPersonal Impact StatementsAppendix
Case Study: Michelle
Starting Point Analysis Case Study Conclusion PIS Appendix
Before AccessAbility Involvement
• Released from prison on June 23rd, 2015• Spent two weeks looking for work in construction; received
a few interviews but no offers• Having a record was a distinct hurdle causing stress
and anxiety about assimilating into society• No income for the time period Michelle was out of prison
but not in the CEP program• “They say the halfway house is supposed to help, but
they just don’t have the resources.”• Personal confidence was not great, but she always tried to
see the bright side of things
Case Study: MichelleAfter AccessAbility Involvement
• Employed through AccessAbility since she started• Imagine Design, Recycling Warehouse, Construction
Remodeling, Women Building MN apprenticeship• Graduated from the Building Trades Program, received OSHA
10, Forklift, and First Aid Certification• Received an offer to start an limited energy electrician
apprenticeship at Egan Companies Limited Energy Training Center for $14.63/hour• 3 year union program that will fund her education• “I am absolutely excited. This is exactly what I was looking
for.”• Feels much more confident in her ability to succeed.
• “Even on the days where I don’t think I can make it, they know I can.”
• Having a record is still a hurdle, but being involved with AccessAbility has motivated her be the example that changes someone’s mindStarting Point Analysis Case Study Conclusion PIS Appendix
Case Study: ScottAfter AccessAbility Involvement
• Has been in and out of prison for his whole life for drug offenses
• Employed through AccessAbility ever since he has been out• Has a role with responsibilities as a teacher
• Graduated from the Building Trades Program, received OSHA 10, Forklift, First Aid Certification, and Introduction to Construction Trades
• Will start at ConAgra Foods on December 7th as a forklift driver• He knows now that employers see him as a hard
worker • Things are looking bright. His journey has taught him to “be
faithful in the little things and the big things will come”. • Before AccessAbility he felt less than other in society and
looked down upon• “AccessAbility empowers me to feel equivalent to a
CEO of any company”Starting Point Analysis Case Study Conclusion PIS Appendix
Case Study Takeaway
There are many areas of improvement for AccessAbility’s CEP Graduates that can not be directly measured. Nonetheless, the increase in self-confidence and positive outlooks for graduates can eventually be attributed to a reduction in recidivism rates and an increase in income potentials.
- Undergraduate Consulting Group & Jose Diaz, Wilder Foundation
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AgendaStarting PointAnalysisScenariosConclusionPersonal Impact StatementsAppendix
Starting Point Analysis Case Study Conclusion PIS Appendix
The CEP program has positively impacted society as shown by the program’s SROI
Starting Point Analysis Case Study Conclusion PIS Appendix
For every $1 spent by AccessAbility’s CEP
Program, society gets a social return on its
investment of$2.79
Not Directly Measured Benefits Include
• Increase in self-esteem• Increase in confidence
• A strong community for support• Access to entry-level positions
• Many more…
AgendaStarting PointAnalysisScenariosConclusionPersonal Impact Statements Appendix
Personal impact statements“I can’t say enough good things about that program and the people there. They genuinely want to see people to succeed, which is so rare.”
"Even on a bad day, when I feel like nothing is going right, there is always someone there to at least be a sounding board. They all have your back. Even
on the days where I don’t think I can make it, they know I can.“
"You can’t change other people but you can better yourself and be the example that changes someone’s mind. I want to be the tipping point in the other direction.“
"I wish that before I went to prison and was struggling, I wish they were around then because I truly do not think I would have gone to prison.“
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Thank You.
AgendaStarting PointAnalysisScenariosConclusionPersonal Impact StatementsAppendix
General Overview Benefits:•Employment data • Current Participants• Participants with Credentials (No Job)• Employed Participants
•Lack of Recidivism•Inside JobsCosts: •Program Costs •Volunteer Value
ROI = Benefits/Cos
t
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Employment: Current Participants
Earnings without CEP 5803.2
Credential Success RateCurrent Participants
Income Potential
Benefit per Person
Total Benefit
Intro to Manufacturing 40% 0 35000 29196.8 0American Workshop 48.10% 9 30000 24196.8 129870GED 80% 3 18700 12896.8 44880Food Safety 100% 0 25000 19196.8 0Forklift 100% 0 20000 14196.8 0
174750Income w/o CEP = Employment Rate x Hourly Wage x 40 hours/week x 52 weeks/yearBenefit = Success Rate x # of People x Income Potential
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Employment: Participants with Credentials (No Job)
Earnings without CEP 5803.2
Credential # of PeopleIncome Potential
Benefit per Person
Total Benefit
Intro to Manufacturing 1 35000 29196.8 35000American Workshop 11 30000 24196.8 330000GED 0 18700 12896.8 0Food Safety 0 25000 19196.8 0Forklift 2 20000 14196.8 40000
405000Benefit = # of People x Income Potential
Starting Point Analysis Case Study Conclusion PIS Appendix
Overall EmploymentWage = 13.51
# of People
Yearly Income
Income without Program
Benefit per
PersonTotal
Benefit
49 28100.8 5803.2 22297.6 1092582.4
Benefit Per Person = (Average Participant Hourly Wage x 40 hours/week x 52
weeks/year) - Income w/o CEPTotal Benefit = Benefit Per Person x # of
PeopleStarting Point Analysis Case Study Conclusion PIS Appendix
Employment: Current Participants
For each credential, total benefit is determined by multiplying success rate by current participants and potential financial benefit.
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Employment: Participants with Credentials (No Job)
For each credential, total benefit is calculated by multiplying the number of participants in each program with income potential. Income potential is the difference between potential income and current earnings for former convicts.
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Overall Employment Total benefits are calculated by multiply the number of employed participants by the average annual wages of AccessAbility participants.
Starting Point Analysis Case Study Conclusion PIS Appendix
Inside Jobs•As a subset of employed participants, we include participants who obtained an inside job•What is an inside job?• A position sponsored by AccessAbility that allows a CEP program participant to gain
work experience and make an income•Benefits = wages earned• Some unrealized benefits
Total wages = $105,000
Starting Point Analysis Case Study Conclusion PIS Appendix
Lack of Recidivism ComparisonMetro 4.61%
AccessAbility 1.50%
Difference 3.11%
This difference of 3.11% is a benefit to society
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Lack of Recidivism Equation How do we quantify this benefit? Several factors:
◦ AR = AccessAbility’s impact on Recidivism over Minnesota average (3.11%)◦ IR = Rate of incarceration for convictions (61.0%)◦ JA = Average stay in jail (107/365)◦ CJ = Cost of jail per inmate ($46,241)◦ N = Number of participants (117)
Total benefit = AR * IR * JA * CJ * N = $30,088 per year
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Costs•P = Period costs = operating costs of the program•V = Cost of volunteer hours = monetary value of volunteer hours•Total costs of the program = P + V•In our case, P = $705,000, V = $1750•Total costs of the program = $706,750
Starting Point Analysis Case Study Conclusion PIS Appendix
Michelle: Life before AccessAbility
◦ Released from prison on June 23rd, 2015◦ Spent two weeks looking for work in construction; received a few interviews but no
offers◦ Having a record was a distinct hurdle causing stress and anxiety about assimilating
into society◦ No income for the time period Michelle was out of prison but not in the CEP
program◦ “They say the halfway house is supposed to help, but they just don’t have the resources.”
◦ Personal confidence was not great, but she always tried to see the bright side of things
Starting Point Analysis Case Study Conclusion PIS Appendix
Michelle: Life after joining AccessAbility
◦ Employed through AccessAbility since she started◦ Imagine design, recycling warehouse, construction remodeling, Women Building MN apprenticeship
◦ Graduated from the Building Trades Program, received OSHA 10, forklift, and first aid certification
◦ Received an offer to start an limited energy electrician apprenticeship at Egan Companies Limited Energy Training Center for $14.63/hr◦ 3 year union program that will fund her education◦ “I am absolutely excited. This is exactly what I was looking for.”
◦ Feels much more confident in her ability to succeed. “Even on the days where I don’t think I can make it, they know I can.”
◦ Having a record is still a hurdle, but being involved with AccessAbility has motivated her be the example that changes someone’s mind
Starting Point Analysis Case Study Conclusion PIS Appendix