Employer Resource Network
What is it?
How can it work for our business?
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Sound Familiar?
Have you experienced this in the past 6 months?
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Late or absent due to non-work related issues?
Requesting a 401K loan or an advance in pay?
Come to you with a personal non-work related problem?
Having discipline issues at work due to distractions at
home?
Had an employee quit due to
…a wage increase or loss of public benefits?
…difficulty finding daycare?
…lack of reliable transportation?
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Employer Resource Network (ERN)
ERN is an employer-based model:
 Consortium of 5 to 10 small to mid-sized
businesses
 Workforce consists of entry-level, low-skilled or
low-wage
 Employees generally at under-resourced level,
receive public assistance
 Low-cost, shared Success Coach
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Employee Wage / Skill
ERN Company Size
Small / Mid-size:
50-250 EE
High Skill / Wage:
$12.50-$20.00 hr
Training Primary
Mid-size / Large:
250-500 EE
High Skill / Wage:
$12.50-$20.00 hr
Training Primary
Small / Mid-size:
50-250 EE
Mid-size / Large:
250-500 EE
Low Skill / Wage:
$7.50-$12.50 hr
Low Skill / Wage:
$7.50-$12.50 hr
Retention Primary
Retention Primary
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Defining Under-Resourced Employees
“the extent to which an individual or
family does without resources”
financial
spiritual
emotional
coping
strategies
support
systems
integrity
& trust
physical
relationships
& role models
mental
formal
register
motivation &
persistence
social
expectations
(hidden rules)
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Lack of Resources Impacts Turnover
of Work First participants return to cash assistance
within one year*
50%
60% of
longer-term cash assistance recipients sent to
Work First return to cash assistance within one year
25%
of working families are unable to make ends meet
6.7%
unemployment rate in Schenectady, NY (2/28/14)**
* Michigan’s Challenge: Helping Low Income Families Attain Self-Sufficiency
** Bureau of Labor Statistics (February 2014)
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Employer Resource Network
EMPLOYERS
social sector
Overview
ERN
Success
Coach
pre
preemployment
UR
underresourced
LW
living wage
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Success Coach – Benefits to Employees
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Confidential resource
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Provides on-site, face-to-face assistance
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Conduit to Social Services, community programs, local
agencies
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Effective solutions for employees related to:
Financial / Debt
Childcare
Transportation
Housing
Workplace Conflict
Family Challenges
Attendance
Substance Abuse
More benefits listed on Slide 15
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Benefit Comparisons
EX: Employee is faced with loss of transportation; employment threatened.
Success Coach
EAP
On-site, meets with employee
N/A (possible off-site
prior to shift, makes contact with referral)
community resource support
while employee is working
HR / Manager
On-site, unable to access
assistance for employee; only
option might be advance pay
(internal “fix”)
EX: Employee receives a raise; must report to DSS to review benefit
changes
Success Coach
On-site, meets with employee
N/A
during lunch break; makes
contact with DSS while employee
goes back to work
EAP
HR / Manager
Allow employee to visit DSS
before tomorrow’s shift;
employee never shows up for
work (discipline/termination?)
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Success Coach
Return on Investment (ROI) for Businesses & Employers
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Low-cost, shared resource
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Improve employee retention
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Reduce recruiting and training costs
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Increase employee productivity / reduce absenteeism
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Reduces demands on HR who have limited connections
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Conduit to Social Services, community programs and local
agencies
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Becomes Manager’s “best friend”
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ERN / Success Coach
Proposal:
Success Coach $40,000/year – 5 to 10 employers sharing the
cost
$8,000 for 1 share/day each week
$4,000 for ½ share/ day each week
Consider this:
$3,500 = cost of turnover for an hourly employee
$5,000 = cost of turnover for a salaried employee
$350 = average cost of Success Coach intervention
$12,000 = average cost of employee returning to cash assistance
See examples outlined Slides 15-17
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Schenectady Area Employer Resource Network
Brief History:
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Ellis Medicine & City Mission of Schenectady initiated research
& planning May 2013
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ERN presentation to 20+ businesses December 2013
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(5) Businesses signed on 1/1/14; hired Success Coach
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Ellis Medicine, Schenectady ARC, Union College, Best Cleaners, City Mission
Launched SAERN on 2/1/14
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$10,600 for 1 share/day each week
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Support/coordination from Schenectady Works (www.SchenectadyWorks.com)
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S.A.V.E. – Success Assistance for Valued Employees
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Schenectady Area Employer Resource Network
strategic
partners
ERN
member companies
Success
Coach
S.A.V.E.
@ City Mission of Schenectady
ERN support & coordination
Additional funding & support (grants, foundations)
EMPLOYEES
community resources & partners
social sector
launched 2/1/14
Schenectady Area Employer Resource Network
Results to Date:
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(46) distinct employees supported
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(61) community programs/services accessed
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“bridge loans” developed in partnership with (2) local credit
unions
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overall improved culture/morale for employees
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increased EAP usage via Success Coach referrals
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“ERN model” – National Network of Support & Best Practices
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An ERN help find solutions…
Employer
Employee
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Stress
Childcare
Financial pressures
DSS benefits
Relationship conflicts
Aging parents
Substance abuse
Transportation
Housing/Foreclosure
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Increased productivity
Reduced absenteeism
HR/manager productivity
increases
Outsourced social work
Increased EAP usage
Employer of Choice
Increased retention
Reduced training cost
Reduced recruiting cost
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Lakeshore ERN
(Michigan)
Employer Members: C-T-C, Global Technologies, Harbor Hospice,
Holland Hospital, Life Circles, Light Corporation & Trendway
Partners: AAC Credit Union, Ottawa County DHS, Ottawa County
MWA, West Michigan TEAM
Success Coach: Chris Way (Ottawa County DHS)
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Formed and launched a 1 year pilot in July 2008 with 5
members
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258 referrals for 2011/2012 serving 141 distinct employees
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Organized under West Michigan TEAM’s 501(C)3 as fiscal
agent
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Lakeshore ERN
Program Impact
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Top Issues addressed: Auto / Transportation, Counseling,
Financial Literacy, Financial Assistance, Food Assistance,
Health, Utilities
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53% receive public assistance, 47% are beyond the cliff
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Retention: 2009/10: 99%, 2010/11: 97% & 2011/12: 98%
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Resources Leveraged: $18,714 in 2009/2010, $20,900 in
2010/2011 & $34,925 in 2011/2012
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Average ROI in 2010/2011 was approximately 294% and
465% in 2011/2012 (using $3,500 as avg. cost of turnover)
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Employers’ have offset ERN investment with reductions in
recruiting budgets, EAP, or other cost savings
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