accessability social economic return on investment final documentation

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


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


-SROI-

Income Potential

Lack of Recidivism

Inside Jobs

Cost

Benefits

Each segment was further structured to find individual data points to aggregate


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

Income Potential benefits equations were crafted with the Wilder Foundation


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


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


The last equation was to calculate Inside Job benefits


Inside JobsSEGMENTS

NEMP # of

AccessAbillity Employed

Participants

wAverage Annual

Wages of AccessAbility Participants

Table 2.3 – Inside Job Benefit Equation


After the data was collected, reformatted and analyzed, the information was aggregated


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


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


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.


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

Case Study: Michelle


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


AgendaStarting PointAnalysisScenariosConclusionPersonal Impact StatementsAppendix


The CEP program has positively impacted society as shown by the program’s SROI


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.“


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


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


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


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.


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.


Overall Employment Total benefits are calculated by multiply the number of employed participants by the average annual wages of AccessAbility participants.


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


Lack of Recidivism ComparisonMetro 4.61%

AccessAbility 1.50%

Difference 3.11%

This difference of 3.11% is a benefit to society


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


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


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


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


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