Program Description

Program/Practice Description: EDSI is a Michigan-based company that holds 35 percent of Pittsburgh caseloads and operates two EARN centers in Philadelphia. The unique Tiered Employment Program has played an integral role in improving both cities work participation rates by effectively engaging employers and TANF customers for sustained employment and wage progression.

Background/Program History: The idea for Tiered Employment originally stemmed from the Detroit Chamber of Commerce, which developed a ladder system. The initial implementation failed to catch on, due to economic pressures and a number of other factors, but EDSI realized the value of the idea and refined it. EDSI sent 150 questionnaires to employers to find out the average wages of their employees and the average length of time that employers were able to retain those workers. Thereafter, job developers continuously met with employers to learn more about their expectations and their successes. With this information, they were able to develop a process that evolved into a true partnership with the business community in that it enabled EDSI to improve employers bottom line while simultaneously advancing low-wage workers.

Innovations and Results: The backbone of EDSI's successful operations is the tiered approach to employment, based upon the belief that TANF customers often quit jobs because they fail to see progress along the career ladder, while employers often struggle to retain and replace effective low-wage workers. Early on in the programs, Pittsburgh produced some positive results. From March 20, 2002 until March 20, 2003, 55 employers participated in the Tiered Employment Program and 435 people were enrolled/employed in the program. Seventy-six percent of the 435 (330) were still working at the end of March 2003.

Operations: EDSI develops relationships with employers, knowing that the average retention time is 2 months for frontline workers. EDSI essentially promises to provide an employee for 6 months, and then remove that person to advance him or her to a new position, while providing the original employer with a replacement for the next 6 months. By providing an entry-level worker with a chance to be promoted, the TANF client has the incentive to work consistently toward a promotion. By retaining that person for 4 months longer than the average entry-level worker, and by providing employers with a job-ready replacement, EDSI is able to reduce costs for the employers as well. This strategic process facilitates the engagement of both the worker and the employer, and continues through three levels of employment to enable the client to achieve self-sufficiency.

Partnering with Employers: EDSI classifies employers job opportunities as Tier I, Tier II, or Tier III, based on the position available, wage, compensation, hours per week, and benefits. Employment development organizations were trained in the processes of identifying, classifying, and qualifying employers and job seekers for the program. Interested job seekers were provided with information about the program, and those demonstrating a commitment to be involved received an in-depth orientation and assessment to determine the level at which they should enter the program.

Staffing: While job developers are essential for making connections with employers and working with case managers to place customers in appropriate work, another key staff person is the tiered employment coordinator. This individual continuously watches the database of client workers to monitor their progress in a position. When clients successfully maintain employment for the designated time period, the tiered employment coordinator helps them access the next tier. When a client fills a position, that job opportunity is taken out of the database and a different client takes over the Tier I role.