Early evaluation of the Youth Contract wage incentive scheme

1. Early evaluation of the Youth Contract wage incentive scheme Summary of findings Nick Coleman Independent Research Consultant

2. About the research • Part of the Youth Contract evaluation • Commissioned by DWP • Carried out by TNS-BMRB • Quantitative, telephone survey of 279 employers who had offered a wage incentive • Qualitative interviews with Work Programme providers and JCP employer engagement staff • Fieldwork Summer-Autumn 2012 • Research provides early findings – second stage being conducted in Summer 2013 • Report published February 2013 (DWP RR828)

3. Employer involvement • Mostly being used by small and medium sized employers • Different motivations: Base: All employers (279)

4. How wage incentives are working • The majority of employers positive towards WP provider support (71% very/fairly good) • WP providers stressed importance of providing additional support to employers (e.g. helping with admin, personal visits, providing single point of contact) • According to WP providers, some negative preconceptions among employers about bureaucracy surrounding government schemes: important to allay concerns through smooth, efficient delivery. • Positive views on administration: seen as straightforward by WP providers and employers.

5. What effects are wage incentives having Base: All employers (279)

6. What effects are wage incentives having (2) • Direct impact on job creation/additional recruitment of young, unemployed people is limited • But wage incentives appear to be having some positive effects in influencing employers’ attitudes and recruitment choices, in relation to young unemployed people • Providers & JCP staff felt wage incentives could ‘tip the balance’ in recruitment of young, unemployed people • Also gives providers a ‘foot in the door’ or ‘selling point’ when building relationships with employers