What is it?How can it work for our business?

Employer Resource Network

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Have you experienced this in the past 6 months?

Late or absent due to non-work related issues? Requesting a 401K loan or an advance in pay? Come to you with a personal non-work related

problem? Having discipline issues at work due to distractions

at home? Had an employee quit due to

…a wage increase or loss of public benefits? …difficulty finding daycare?…lack of reliable transportation?

Sound Familiar?

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ERN is an employer-based model:Consortium of 5 to 10 small to mid-sized businessesWorkforce consists of entry-level, low-skilled or low-wageEmployees generally at under-resourced level, receive public assistanceLow-cost, shared Success Coach

Employer Resource Network (ERN)

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ERN Company Size

Small / Mid-size:50-250 EE

High Skill / Wage:$12.50-$20.00 hr

Training Primary

Mid-size / Large:250-500 EE

High Skill / Wage:$12.50-$20.00 hr

Training Primary

Small / Mid-size:50-250 EE

Low Skill / Wage:$7.50-$12.50 hr

Retention Primary

Mid-size / Large:250-500 EE

Low Skill / Wage:$7.50-$12.50 hr

Retention Primary

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Defining Under-Resourced Employees

“the extent to which an individual or family does without resources”

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spiritualintegrity & trust

financial

physical

support systems

relationships & role modelsemotional coping

strategiesformal

register

social expectations (hidden rules)

mentalmotivation & persistence

50% of Work First participants return to cash assistance within one year*

60% of longer-term cash assistance recipients sent to Work First return to cash assistance within one year

25% of working families are unable to make ends meet

6.7% unemployment rate in Schenectady, NY (2/28/14)**

Lack of Resources Impacts Turnover

* Michigan’s Challenge: Helping Low Income Families Attain Self-Sufficiency** Bureau of Labor Statistics (February 2014)

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pre-

employmentpre under-

resourcedUR living wageLW

ERNERN

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Employer Resource NetworkOverview

Success Coach

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Confidential resource

Provides on-site, face-to-face assistance

Conduit to Social Services, community programs, local agencies

Effective solutions for employees related to:Financial / Debt Childcare Transportation HousingWorkplace Conflict Family ChallengesAttendance Substance Abuse

Success Coach – Benefits to Employees

More benefits listed on Slide 158

Benefit Comparisons

Success Coach EAP HR / ManagerOn-site, meets with employee prior to shift, makes contact with community resource support while employee is working

N/A (possible off-site referral)

On-site, unable to access assistance for employee; only option might be advance pay (internal “fix”)

EX: Employee is faced with loss of transportation; employment threatened.

EX: Employee receives a raise; must report to DSS to review benefit changes

Success Coach EAP HR / ManagerOn-site, meets with employee during lunch break; makes contact with DSS while employee goes back to work

N/A Allow employee to visit DSS before tomorrow’s shift; employee never shows up for work (discipline/termination?) 9

Low-cost, shared resource

Improve employee retention

Reduce recruiting and training costs

Increase employee productivity / reduce absenteeism

Reduces demands on HR who have limited connections

Conduit to Social Services, community programs and local agencies

Becomes Manager’s “best friend”

Success CoachReturn on Investment (ROI) for Businesses &

Employers

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Proposal:

Success Coach $40,000/year – 5 to 10 employers sharing the cost

$8,000 for 1 share/day each week

$4,000 for ½ share/ day each week

Consider this:

$3,500 = cost of turnover for an hourly employee

$5,000 = cost of turnover for a salaried employee

$350 = average cost of Success Coach intervention

$12,000 = average cost of employee returning to cash assistance

ERN / Success Coach

See examples outlined Slides 15-17 11

Brief History:Ellis Medicine & City Mission of Schenectady initiated research & planning May 2013

ERN presentation to 20+ businesses December 2013

(5) Businesses signed on 1/1/14; hired Success Coach Ellis Medicine, Schenectady ARC, Union College, Best Cleaners, City Mission

Launched SAERN on 2/1/14 $10,600 for 1 share/day each week Support/coordination from Schenectady Works (www.SchenectadyWorks.com) S.A.V.E. – Success Assistance for Valued Employees

Consider this:

Schenectady Area Employer Resource Network

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ERNmember

companies

ERNmember

companies

EM

PLO

YEES

Schenectady Area Employer Resource Networklaunched 2/1/14

Success CoachS.A.V.E.

@ City Mission of Schenectady

ERN support & coordinationAdditional funding & support (grants, foundations)

Results to Date:(46) distinct employees supported(61) community programs/services accessed

“bridge loans” developed in partnership with (2) local credit unions

overall improved culture/morale for employees

increased EAP usage via Success Coach referrals

“ERN model” – National Network of Support & Best Practices

Schenectady Area Employer Resource Network

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An ERN help find solutions…

Employee•Stress•Childcare•Financial pressures•DSS benefits•Relationship conflicts•Aging parents•Substance abuse•Transportation•Housing/Foreclosure

Employer•Increased productivity •Reduced absenteeism •HR/manager productivity increases•Outsourced social work•Increased EAP usage•Employer of Choice•Increased retention •Reduced training cost•Reduced recruiting cost

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Lakeshore ERN (Michigan)

Employer Members: C-T-C, Global Technologies, Harbor Hospice, Holland Hospital, Life Circles, Light Corporation & Trendway

Partners: AAC Credit Union, Ottawa County DHS, Ottawa County MWA, West Michigan TEAM

Success Coach: Chris Way (Ottawa County DHS) Formed and launched a 1 year pilot in July 2008 with 5 members 258 referrals for 2011/2012 serving 141 distinct employees Organized under West Michigan TEAM’s 501(C)3 as fiscal agent

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Lakeshore ERN Program Impact

Top Issues addressed: Auto / Transportation, Counseling, Financial Literacy, Financial Assistance, Food Assistance, Health, Utilities

53% receive public assistance, 47% are beyond the cliff Retention: 2009/10: 99%, 2010/11: 97% & 2011/12: 98% Resources Leveraged: $18,714 in 2009/2010, $20,900 in

2010/2011 & $34,925 in 2011/2012 Average ROI in 2010/2011 was approximately 294% and

465% in 2011/2012 (using $3,500 as avg. cost of turnover) Employers’ have offset ERN investment with reductions in

recruiting budgets, EAP, or other cost savings

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