Which political party is going to have the gumption to say that this whole business is a colossal waste of money? That all the cash which is going in private profit should be put into real skills training via colleges and specialist training companies? Perhaps when young people who think they have been guaranteed a job or training discover that it's not quite what they had in mind.
Sunday, 6 September 2009
Payment by results
Some people watching Benefit Busters episode 2 may have been surprised by the way in which some of A4e's employees are paid for achieving job outcomes. I was even more surprised that the Shaw Trust do the same thing. The justification rests on the idea that a job - any job - is what it's all about, so put the pressure on staff to get them with financial incentives. But there are providers which don't have that system; and while I can't quote figures, I'm sure that their results are no worse than A4e's, and may well be better. The danger with payment by results, of course, were clearly seen in what happened in Hull, when casual agency jobs were claimed as permanent. Not only was the pressure there on the company to get the percentages up; it was on the individual to earn his bonus. And in all that, it's the client who gets forgotten.