Twin Cities RISE!

1. Twin Cities RISE! Pay-for-Performance Pioneer Serving the Hardest to Employ June, 2014 Minneapolis, Minnesota

2. 2 Twin Cities RISE! Mission • Misson: • Provide employers with skilled workers – primarily men from communities of color in the Twin Cities area for skilled jobs that pay a living wage of at least $20,000 annually plus benefits. • Participants - we provide comprehensive training, support, and job placement services to men and women from generational poverty. • Typical Participant Challenges: • Criminal histories 65% or more • Addiction histories 45% • Chronic Unemployment • 85% unemployed at start • 60% or more unemployed for at least 12 months • Mental health, unstable housing, low basic skills, limited job skills

3. Twin Cities RISE!: PFP Pioneer • Pioneer in performance-based funding - Starting in 1997, TCR! partnered with the State of Minnesota based on the Return on Investment (ROI) TCR! provides to State tax payers • High ROI - The result of targeting the hardest-to-employ, and helping them develop the skills needed to get and keep living wage job paying $20,000 per year or more • Codified through State of Minnesota Legislation 1997-2013 • TCR! paid only when a client placed in a job earning $20,000 per year or more, with an income change of at least $10,000 • Additional requirements focused qualifications on the hardest-to-serve - asset limitations and a minimum program investment in order to prevent “creaming” • Outcomes based focus – TCR! compensated upon success with qualified participants • $9,000 at verified placement in job paying $20,000 per year • $9,000 after verified one-year retention in like job

4. Twin Cities RISE!: PFP Results • ROI of 600% to State Taxpayers - Economics of pay-for-performance favorable to taxpayers, with a 15-year ROI of more than $7 received in benefits for every $1 invested • Long-Term Job Retention with Employer Partners • 82% one year retention • 71% two year retention • High Income Change – Placement income of $27,000 per year in 2013 plus benefits, up from $2,611 at start (900% increase) • Reduced Societal Costs - High income change and long-term job retention of TCR! graduates results in • Increased tax receipts • Reduced government subsidies • Reduced criminal justice costs

5. Twin Cities RISE!: What Makes Us Different 1. “Non Nonprofit Model”: Blend of best management practices from the private sector in a strongly mission-driven organization • Results that matter: Focus on long-term, sustainable success • Market-driven: Focused on employer needs, continuous change and improvement • Pay-for-Performance and ROI: Systems change through innovative funding model • National Recognition: • AshokaChangemakers/eBay Foundation Award for Pay-for-Performance model (only US-based program recognized out of 873 international applications • Microsoft Foundation’s Elevate America: 1 of 10 workforce development programs nationally 2. Personal Empowerment Model Sustains Success • Powerful skills-based approach, based on learning how to apply emotional intelligence principles to permanently change behavior • Employer feedback driven; focus on job retention by teaching the emotional and social functioning skills required to become great employees and keep the job • Builds emotional regulation skills and individual accountability

6. Twin Cities RISE!: Program Overview

7. 7 Job Retention Rate: Twice National Average • Median 12-month job retention: • TCR! = 82% • Programs serving more than 50% individuals with criminal records = 42%* *According to a Benchmarking Project study conducted by The Corporation for a Skilled Workforce (May 2013): http://www.skilledwork.org/Newsletter/ApplesToApples.pdf

8. 8 Return on Investment to the State of Minnesota (1997-2012) ROI = More than $7 for every $1 invested

9. 9 Key Success Measures – Reduced Recidivism

10. 10 Key Success Measures – Job Retention