Costs and outcomes of employment through social enterprise
What does it cost to create lasting work for people facing barriers to employment, and what outcomes does that work deliver?
In partnership with Deloitte Access Economics, we set out to answer that in two parts:
- what it costs to deliver employment support through social enterprise, and
- the outcomes participants achieve (and how well the sector can measure them).
The result is two complementary reports that build the evidence base on the sector’s impact, and what it takes to achieve lasting job outcomes in social enterprise. This work was made possible with support from the Paul Ramsay Foundation and the Minderoo Foundation, and because social enterprises generously shared their data.
Wallara
Part 1: The cost of delivery
Program delivery costs in employment-focused social enterprises Prepared by Deloitte Access Economics and Social Traders, with support from the Paul Ramsay Foundation.
The question: What does it cost to deliver employment support through a social enterprise - and how much of that cost does trade revenue cover?
Using Social Traders certification data, this report builds cost ranges across different models, cohorts and locations, and shows where trade revenue offsets the cost of delivery and where a funding gap remains.
It scales a costing method first developed in earlier research supported by the Paul Ramsay Foundation, extending it from 10 organisations (non-profits and social enterprises) to 301 social enterprises. You can find that research here, along with a free tool that helps social enterprises estimate their own costs.
Key findings
$25,400 - $104,000 per participant
One in two social enterprises spends within this range per participant per year – one in four spends less, and one in four spends more.
A 30% revenue gap remains
16% of social enterprises fully cover their delivery costs through revenue from trade. The median enterprise still faces a 30% shortfall between what it costs to deliver tailored support and the revenue it generates through trade.
The next step: cost per outcome
Not everyone who participates in an employment program transitions to an external job, and programs run for different lengths of time. So, where a job transition is the goal, the annual cost per participant doesn’t reflect what it costs to achieve one.
This initial research shows the median annual cost per outcome is around 1.5 times the cost per participant but more data on job outcomes is needed to better measure and understand cost per outcome.
Part 2: The outcomes achieved
Understanding outcomes in employment-focused social enterprises Prepared by Deloitte Access Economics and Social Traders, with support from the Minderoo Foundation.
The question: What outcomes do participants achieve through social enterprise — and can the sector measure them consistently?
Drawing on a survey of more than 100 certified social enterprises and benchmarked against HILDA data, this report maps how enterprises define and measure success, the barriers participants face, and the employment outcomes they reach. It establishes initial benchmarks and is a proof of concept that outcomes can be measured systematically across the sector.
Key findings
Social enterprises support those furthest from work
Nearly three in four enterprises report that most of their participants have been out of the labour market, and most have disrupted employment histories, limited formal training, or both.
Outcomes are being measured
When asked a consistent set of quantitative questions about job transitions, employment retention and other work-related outcomes, 82% of enterprises could answer at least one with data on hand.
Comparable outcome rates to broader jobseeker population
Among a sample of 22 transitional enterprises, 39% of participants moved into open employment within a year. The reported transition rates are comparable to the broader long-term unemployed population, despite the greater barriers participants may face.
Looking ahead
These two reports start to answer what it costs to deliver outcomes within employment-focused social enterprises and the types of outcomes being achieved. The next step is to estimate the value of the outcomes achieved, which means understanding how long people stay employed, and what would have happened without support from the social enterprise sector.
With that evidence in hand, the two halves can be connected - linking the cost of delivery to the outcomes it produces, so the value created can be demonstrated. That work is just beginning, and it will take funders, government and enterprises working together to build the picture.
Afford
Discover more insights
We're continually building the evidence base on Australia's social enterprise sector. Explore more of our research or sign up to get new reports and insights as they land.