Job Preparation and Employment
Job Retention/Advancement
Have any states developed a program where they issue monetary bonuses to TANF individuals who retain employment for a designated period of time? If so, please describe the program. Also, please share what you have learned about the effectiveness of such programs, and please share what helped make your program successful and what pitfalls to look out for when developing a program. Thank you! (Date submitted: 11/15/2004)
[Submit an answer]From Kentucky:
Kentucky did have a job retention bonus payment but deleted it from the State Plan at the beginning of 2004. (Date submitted: 12/17/2004)From Utah:
Utah has had an enhanced payment since the original days of Welfare Reform. We continued the enhanced payment after TANF was passed. The payment is NOT based on retention, however if the customer does not retain the condition for which they are receiving the payment, they will lose it. This is an area of policy we will need to review if/when the participation standards at the Federal Level changes since we are rewarding activities they may not count toward the federal participation rate and we will have to decide if that is a good idea. I cannot really tell you whether the additional $40 changes behavior or not. We have not asked that question in a long time - but it is a good question. Here is the policy: 321-2 Enhanced Participation - FEP, FEP-TP Each PARENT included in the Family Employment Program monthly payment who is involved in one of the following negotiated activities will receive an enhanced payment of $40 a month: Public and private internships of 24 hours or more a week. Full time (as defined by the institution) attendance in an education or employment training program, such as high school, vocational training, or post secondary education. Employed 20 or more hours a week in addition to attending school or training. Employed with gross earnings of at least $500 per month. DWS Employment Counselors will work with all parents in an effort for each to have the opportunity to attain an enhanced payment. A customer who is participating in these agreed upon activities, is continuing to make progress in these activities, and is receiving an enhanced payment for these activities, is considered to be meeting participation requirements. A parent must continue to cooperate with child support enforcement activities to be eligible to receive the enhanced payment. A customer who is in conciliation is not eligible to receive an enhanced payment. (Date submitted: 12/17/2004)From South Carolina:
The Moving Up Project is an Employment, Retention, and Advancement Research Project that began June 1, 2001 and will run until April 30, 2005. Attached is a short summary of our program and I have included our Incentive Chart that briefly describes the Benchmark Awards (Incentives) given to clients when they meet the specific goals that are listed in the chart. What we have learned. First of all in terms of the research data at the program level right now we have not gotten any final results from MDRC about our program and what the data is showing about incentives. From a case work or from a management level I do feel from talking to staff and hearing what they say it does have an impact on engagement of the client, helping workers establish a continued dialog with clients, and reminding them that continued employment is important to them. This was very important as Moving Up is a voluntary program for clients whose Tanf cases were closed for any reason from any where from six months to three years. Many clients keep this in mind as they reach certain benchmarks in their employment and actually remind caseworkers what they have accomplished. How much of an impact statistically I do not know yet, but I feel that it has made an impact on clients. What helped us be successful? The first thing we realized was the fact that clients had to be followed up with, on a almost monthly basis to keep up with the thousands of incentives that we had to give out over a long period of time. In order to do that it was almost impossible for workers to manually keep up with the incentives for all of their case load so an Alert Database was developed so workers could automate follow up and be reminded daily of incentives that were due clients. This would have been extremely labor intensive if it would have had to have been done manually. Some of the counties in the project used gift certificates rather than monetary checks, and some used checks. There are strict accounting procedures that have to been done to keep up with either. We made sure that clients signed receipts for both and these were maintained by each county bookkeeper. In terms of case work we found it best to give the client a list of incentives up front in their first engagement with the worker so this would motivate them to participate and meet their goals. This procedure worked best. Then to remind them each time the worker contacted them of the incentives and what they could look forward to if they met their goals. This helped workers to have a dialog about work goals with the clients. We found that having a specific list of benchmark awards very helpful. This list was developed through meetings with staff and discussions with our state office personnel. It was developed during our pilot phase and it gave us a chance to get suggestions and input from workers about what they thought would work. It was changed a number of times during the initial phase of the project to help refine what we were trying to accomplish with clients. (Date submitted: 12/17/2004)From New Jersey:
New Jersey established two innovative schemes to provide a monetary bonus to workers provided they close their TANF cash assistance cases. The initiatives addressed the need to economize on the usage of the 60 month TANF benefit while encouraging and supporting work. The Supplemental Work Support Program provides a cash bonus of $200 monthly for up to 24 months. The Housing subsidy is based on the difference between the Fair Market Rent or the actual payment, whichever is lower, minus 40% of the household's income. The following State Plan provisions provide a further description: Supplemental Work Support Program The Supplemental Work Support Program is a voluntary program for TANF recipients who have been in receipt of benefits for at least the last six months and who during that time have been employed a minimum of 20 hours per week for at least four months. Although still eligible for a partial grant, these individuals may voluntarily close their TANF cases and receive a monthly supplemental work support payment of $200 to help offset the cost of working. By closing their case, these individuals will be able to maintain employment and not draw from their 60-month lifetime limit on receipt of TANF cash assistance benefits. This support can be provided for up to 24 months so long as the assistance unit would have remained eligible to receive a partial assistance benefit but chooses to keep their TANF case closed or provided the assistance unit's income is less than 250 percent of the Federal Poverty Level. Supplemental work support payments are intended to cover transportation costs including car maintenance, auto insurance, parking costs, etc. for a vehicle used for work; child care costs over and above the amount paid through the post-TANF transitional child care program, clothing and uniforms necessary for employment, meals at work, tools, equipment and materials incidental to the job, training costs above the amount provided through the Career Advancement Voucher Program, etc. This program is funded with Federal TANF and/or State MOE funds. Housing Subsidy Program Employed current and post-TANF recipients with earned income levels of up to 150 percent of the FPL, and who are spending 40 percent or more of their household income on rent, are eligible, subject to available funding, for the Housing Subsidy Program (HSP), a separate State program. Current TANF recipients must opt to close their TANF case in order to receive this subsidy. This service includes, in addition to ongoing rental assistance, a one-time payment of security deposits, moving expenses and utility deposits. Eligibility for this program continues until the recipient reaches 200 percent of the FPL. This is a separate State program claimed as MOE. Months of receipt of Housing Subsidy Program benefits do not count toward the 60-month lifetime limit. (Date submitted: 12/17/2004)From Louisiana:
Louisiana does not issue a monetary bonus for job retention. They do, however, offer earned income disregard of $900 for the first 6 months of employment. Also, after the 6 months of disregard, we allow $120 per month for support services for 12 months (12 months in a lifetime) as long as they maintain employment. (Date submitted: 12/17/2004)From Tennessee:
Although the State does not pay retention bonuses to individuals, it does pay one-time bonuses to its employment career services contractors for job placements that last at least nine months. Please let me know if you would like additional information on this initiative. (Date submitted: 12/17/2004)From Mississippi:
State provides job retention bonuses, which are broken down into two cycles: Cycle 1 (covers individuals whose cases closed prior to September 30, 2004) TANF participants who lose benefits because of increased earned income or loss of disregards may be eligible for up to 5 bonus payments over a 24-month period. Total payments are limited to a $3,000 lifetime maximum. If the participant loses employment during the cycle but finds new employment within 30 days, that individual can become eligible again for the bonuses. However, if they are not reemployed within in 30 days, they are permanently barred from further participation in the bonus program. Payment Breakdown: · $200 - if individual remains employed for 90 days after TANF payment ends · $400 - if individual remains employed for 180 days after TANF payment ends · $600 - if individual remains employed for 270 days after TANF payment ends · $800 - if individual remains employed for 450 days after TANF payment ends · $1000 - if individuals remains employed for 730 days after TANF payment ends Cycle 2 (covers individuals whose case closed on or after September 30, 2004) TANF participants who lose benefits because of increased earned income or loss of disregards may be eligible for up to 4 bonus payments over a 12-month period. Total payments are limited to a $1000 lifetime maximum. If the participant loses employment during the cycle but finds new employment within 30 days, that individual can become eligible again for the bonuses. However, if they are not reemployed within 30 days, they are permanently barred from further participation in the bonus program. Payment Breakdown: · $100 - if individual remains employed for 90 days after TANF payment ends · $200 - if individual remains employed for 180 days after TANF payment ends · $300 - if individual remains employed for 270 days after TANF payment ends · $400 - if individual remains employed for 360 days after TANF payment ends Minimum Requirements that must be met before bonus payments can be issued TANF payments must end due to increased earnings or loss disregard Individual must apply within 30 days of effective date of TANF case closure The unsubsidized job placement must be for an average of 30 hours or more per week with a wage no lower than the federal minimum wage Individuals who lose job must be reemployed within 30 days of the end of previous job Individual must have a TANF-eligible child in the home Individual must provide employment verification timely and submit attendance documentation by the 10th of each month for the prior month (Date submitted: 12/17/2004)From Florida:
Florida has a demonstration project in three counties (Hillsborough, Manatee, and Sarasota) that provides bonuses to former recipients who are ineligible due to earnings. In addition to the bonuses, transitional services (training, transportation, and child care) are available to the participants for up to four years. In order to be eligible for an incentive bonus, the individual must: Be a former recipient of temporary cash assistance who last received assistance on or after 1/1/00; Be employed full time, averaging at least 32 hours per week; Have an average family income for the six months preceding the date of application (for an incentive bonus) which is less than 150% of the FPL. During State FY 2003 - 04, 317 participants were served by this project. The project was originally set up as wage supplementation to add to earnings and bring income up to 100% FPL. While this was an effective job retention tool, it was inadvertently a disincentive to increase work hours or move to a higher wage job. The project was revised to include incentive bonuses based on benchmarks in the self-sufficiency plan. Local Workforce Board case managers are responsible for determining eligibility for the bonuses, establishing performance criteria for each participant, and issuance of the performance incentive bonuses. One point of clarification - As a general rule, the bonuses are provided in the form of a certificate for groceries or merchandise. Or, perhaps, a fee or payment is paid on behalf of the client. The number of actual cash bonuses is minimized, but they are issued in some cases. (Date submitted: 12/17/2004)From District of Columbia:
In 2001, the District began paying TANF recipients bonuses when the customer entered employment and retained the job for 30, 90 and 180 days. The total value of the bonuses could reach $750. While it is difficult to attribute causality, the number of job placements and the retention rate have both improved since the implementation of the bonuses. DHS believes that the bonus has served as a strong incentive for customers to enter the program, find employment and keep working. It has also encouraged those who would not have reported their income to do so in order to receive the bonus. There are a couple of things to keep in mind when designing a bonus policy. First, you want to get the most bang for your buck. So, you want the community to know of the incentives and for them to be of sufficient value to change behavior in a positive and significant way. Second, because these are financial incentives of significant value it is important to have tight rules about when customers do and not receive the bonus. Some of the questions that must be answered include: Is it a one time bonus or can customers receive it again and again? Is there a time limit on how old the start date for the job can be to claim the bonus? Is the bonus for full or part-time work and how is this defined? Who pays the bonus? Does it count against benefits? How do you verify employment and hours? (Date submitted: 12/17/2004)Are any States providing payments or provisions to encourage clients to remain employed? (Date submitted: 10/26/2000)
[Submit an answer]From Carson City, Nevada:
Nevada offers a "job retention bonus" of $350 , if the client has maintained verified employment for a minimum of 6 months. (Date submitted: 08/17/2001)What can be done to accelerate job seeking and retention for the population who are rapidly approaching the time limit but appear to have no interest in going to work? What communication tools have proved useful in getting the information about benefit exhaustion across? What messages have worked and how and by whom were they delivered? (Date submitted: 03/23/2000)
[Submit an answer]From Minneapolis, MN:
We have had luck with those who are extended and placed in structured simple work with close supervision. Somehow clients make a decision to approach, rather than avoid work, and blossom with close attention. We surmise those who terminated without extension spread the word on the street, and those who opted for supported work made a personal decision to make an effort. There are good ideas on coaching in Whitworth, Kimsey-House and We have had luck with those who are extended and placed in structured simple work with close supervision. Somehow clients make a decision to approach, rather than avoid work, and blossom with close attention. We surmise those who terminated without extension spread the word on the street, and those who opted for supported work made a personal decision to make an effort. There are good ideas on coaching in Whitworth, Kimsey-House and Sandahl "CoActive Coaching" and F.F. Fournies "Coaching". Somehow the pain of not making an income has to overcome the comfort of welfare dependence. For everyone this is a personal choice. (Date submitted: 05/08/2003)