Role of Intermediaries in Linking TANF Recipients with Jobs: Final Report. For-Profit Organizations

02/10/2000

Like the nonprofit organizations that act as intermediaries, the for-profit intermediaries represent a diverse group of businesses; while some have been providing employment services to welfare recipients for many years, others are new to the employment service arena. Most of the for-profit intermediaries are large organizations with a national presence, although a few are smaller local organizations.

Experienced providers with a national presence. Maximus is a large for-profit company that began providing case management and employment services to welfare recipients before welfare reform. Maximus describes itself as the largest private-sector provider of job-readiness training and employment-related services to the disadvantaged. It expects to serve 2,800 TANF recipients in San Diego and 4,000 in Phoenix (Maricopa County). In Phoenix, Maximus will not only provide comprehensive employment services including case management but will also determine eligibility for TANF benefits. If successful in this endeavor, Maximus will gradually take over full responsibility for the management and operation of Arizona's TANF program.

Curtis and Associates is the only for-profit company to operate in one of the smaller rural sites. Like Maximus, Curtis has been providing employment services for welfare recipients for some time. Although Curtis does not act as an intermediary in any of the other study sites, it plays this role in 12 other states. Curtis also produces a job search curriculum for use in its own programs and in job search programs that are operated by other intermediaries.

New providers with a national presence. Like Maximus, Lockheed Martin IMS expects to serve large numbers of TANF recipients in two of the study sites, Jacksonville (750) and San Diego (3,500). However, in contrast to Maximus, Lockheed Martin IMS had no experience providing employment services prior to the implementation of welfare reform. The company saw a niche in the environment it felt qualified to fill and is now acting as an intermediary in five states, including nine sites in Florida.

Local organizations. Creative Connections in New London is one of the few local for-profit organizations that acts as an intermediary. Creative Connections is a small consulting firm that designs and delivers customized training and consulting services. Other smaller, more locally based for-profit companies that are new to the employment and training arena include Ross Learning in Cleveland and Career T.E.A.M. in Connecticut. Ross learning is an operator of proprietary schools that began providing employment services to TANF recipients in Michigan when the state shifted to a work-first model of service delivery. Career T.E.A.M. provides employment services to TANF recipients in many localities in Connecticut. Career T.E.A.M. was started to provide employers with a resource to identify and hire welfare recipients who would meet their hiring standards.

Businesses. In a few of the study sites, businesses act as intermediaries. For example, in San Antonio, Marriott operates the Pathways program, a short-term hospitality training program for TANF recipients offered in many areas across the country. In Little Rock, the Arkansas Hospitality Association works with a local intermediary to provide job coaches for TANF recipients transitioning to employment at one of three hotels  Doubletree, La Quinta, and the Excellcer. In Jefferson County, Arkansas, Tyson's Chicken has agreed to place 200 TANF recipients in its chicken processing plant for a 60-day subsidized employment program and provide a mentoring coach to each recipient for the first year of employment. Tyson's provides 8 hours of leave for educational purposes for every 32 hours worked for individuals who stay beyond the 60-day subsidized employment period.

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