Actiris IOD: Recruitment without discrimination to help low-skilled long-term unemployed people find stable jobs

November 18, 2018

Project details

Forget the CVs and focus on competences: that is the core premise of the IOD method (intervention on Offer & Demand). After a promising pilot in a commune of Brussels, Actiris selected KOIS to investigate the feasibility of a Social Impact Bond in order to scale up the IOD programme. The SIB is now serving to add two teams and cover the whole of Brussels with this initiative.

Tackling the disastrous consequences of long-term unemployment

In the Brussels region, there are close to 60,000 long-term unemployed people, which can have devastating effects, causing persistent poverty and reducing self-esteem, as well as having a societal cost.

In 2017, Actiris, selected KOIS to investigate the feasibility of a second Social Impact Bond, this time to benefit the long-term unemployed.

%

probability of finding a job within a year among the long-term (over 24 months) & low-skilled unemployed population

Removing usual recruitment pain points and discrimination by focusing on skills 

KOIS and Actiris identified an innovative approach that was being implemented in the municipality of Forest: the IOD (Intervention on Offer and Demand) methodology. This method is unique because it requires proactively engaging with SMEs to create new job opportunities, and acts on specific points of professional exclusion such as discriminatory recruitment methods and the surge of short-term and part-time contracts.

The pilot for Brussels started in July 2015 showed results have been remarkable: 47% of the enrolled participants signed a long-term employment contract. Most of these positions would not have existed without the IOD team’s active engagement with companies.

%

of the enrolled participants signed a long-term employment contract

Terms of the bond

Launch

2018

Duration

5 years

Amount

€ 2.2M

Expected return: up to

7.5% IRR

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The second Belgian Impact Bond: scaling the IOD to cover the whole of Brussels

In 2018, KOIS launched what is now Belgium’s second SIB, allowing Actiris to scale up the IOD programme by adding two teams and covering the whole of Brussels.

This will help more individuals within the Brussels Capital Region to re-enter the labour market, breaking the cycle of unemployment, paving the way for a sustainable and more effective solution to what has so far been perceived as an unsolvable problem.

By banning CVs and by helping small enterprises define their recruitment needs, the IOD method precludes discrimination and helps grow the jobs market. Its results fly in the face of those who take for granted the end of the job market for unskilled workers

Béatrice Delperdange

Head of Business Development, KOIS Brussels

Expected Impact of the DIB

beneficiaries by the end of the SIB

job contracts signed for a period of at least 90 working days (69% success rate vs. 19% for the control group)

Broad roll-out of the method thanks to proof of success via the SIB

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