1330 Broadway, Suite 1426 

Oakland, CA 94612 

Tel: (510) 763-1499 

Fax: (510) 763-1599 

www.spra.com 

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

S O CIA L P O L ICY R ESEA R C H

A S S O CIATE S

Prepared for: 

Dan Ryan 

Scott Shortenhaus 

U.S. Department of Labor/ETA 

200 Constitution Ave., N.W. 

Washington, D.C. 20210 

Literature Review: 

Intermediaries and FBCOs 

Working Together 

FINAL 

October 2, 2008 

Prepared by: 

Sengsouvanh (Sukey) Soukamneuth 

Sandra Harvey 
This page intentionally left blank. 

Insert blank page here when making double-sided copies. 
This report was prepared for the U.S. Department of Labor, Employment and Training 

Administration, Office of Policy Development and Research by Social Policy Research 

Associates, Inc. Since contractors conducting research and evaluation projects under 

government sponsorship are encouraged to express their own judgment freely, this report does 

not necessarily represent official opinion or policy of the U.S. Department of Labor. 
This page intentionally left blank. 

Insert blank page here when making double-sided copies. 
CONTENTS 

I. INTRODUCTION................................................................................................... I-1

Defining Workforce Intermediaries..................................................................................I-2

II. ROLE OF WORKFORCE INTERMEDIARIES ..................................................... II-1

Key Roles of Workforce Intermediaries..........................................................................II-1

Examples of Workforce Intermediary Activities .........................................................II-3

III. QUALITIES OF EFFECTIVE INTERMEDIARIES ............................................... III-1

Features of Effective Intermediaries .............................................................................III-2

How FBCOs Can Benefit from Workforce Intermediaries .............................................III-9

Conclusion ..................................................................................................................III-12
This page intentionally left blank. 

Insert blank page here when making double-sided copies. 
I-1

I. INTRODUCTION 

Workforce intermediaries play an important role in connecting 

businesses to jobseekers and incumbent workers. These quasigovernmental organizations convene businesses, labor unions, 

educational institutions, social service agencies, and faith-based 

and community organizations (FBCOs) to design and implement 

programs and policies to improve labor market outcomes. In this 

report, we provide an overview of workforce intermediary 

organizations and how they can support FBCOs that seek to 

partner with businesses. This report builds on the research that 

Social Policy Research Associates (SPR) has conducted for the U.S. 

Department of Labor (DOL)’s Center for Faith-Based and Community 

Initiatives (CFBCI) on partnerships between businesses and FBCOs. 

This previous research suggested that many FBCOs are developing 

strong partnerships with businesses and are in a good position to 

expand and deepen those partnerships. Our goal for this report is to 

provide information about how intermediaries can further support 

FBCOs’ efforts to connect to businesses. 

To meet this objective, we highlight the following in this report: 

• Key characteristics of intermediary organizations, including 

the types of organizations that perform intermediary 

functions. 

• Effective features of intermediaries, including FBCOs, that 

have partnered successfully with businesses and service 

providers. 

• Strategies that intermediaries use to connect FBCOs with 

businesses. 

Information for this report is drawn from an extensive review of 

the literature about workforce intermediaries. We draw heavily on 

Intermediaries serve dual 

customers—businesses 

to help fill their critical 

staffing needs and 

workers to help them 

advance their careers. 
I-2

existing reports, articles, case studies, and abstracts to inform our 

analysis. 

This report is organized into three chapters. For the remainder of 

this chapter, we provide a working definition of intermediaries and 

describe the institutions that function as intermediaries. Chapter 2 

describes the roles and strategies that intermediaries use to connect 

FBCOs with businesses. Chapter 3 describes features of 

intermediaries that make them successful in working with both 

businesses and workers. We conclude with a discussion of how 

FBCOs can benefit from workforce intermediaries. 

Defining Workforce Intermediaries 

Workforce intermediaries serve dual customers—businesses looking 

for qualified workers and workers seeking to advance their careers. 

For businesses, intermediaries identify the labor and skill needs of 

businesses in order to connect businesses to qualified workers. 

For workers, intermediaries provide training and/or supportive 

services or else broker these services with community agencies to 

provide to workers. 

One report by the Partnership for Employer-Employee Response 

Systems noted that, as of 2003, there were over 200 examples of 

 

1

 Klein-Collins, Rebecca. “There’s No Place Like Home.: A Look at Local 

Support for Workforce Intermediaries.” Forum and News, Council for Adult 

and Experiential Learning (CAEL). Chicago: IL. February 2006. Accessed 

from http://www.cael.org/pdf/LocalSupportforWorkforceIntermediaries.pdf. 

What are Workforce Intermediaries? 

“Workforce intermediaries help employers improve their human 

resource systems, build career ladders, improve job quality, and 

sharpen their competitive edge. They provide training and support 

services to workers by integrating public and private sector programs 

and funding sources. As generators of new ideas and innovations, 

intermediaries assist companies and communities so that they can 

prosper. Many intermediaries serve dislocated workers, 

disadvantaged youth and adults, and the working poor.”1

 

Intermediaries help 

employers improve 

their human resource 

systems. 
I-3

workforce intermediaries located in 39 states.2 There are a diverse 

range of institutions that function as intermediaries, including the 

following: 

• Business associations and chambers of commerce 

• Non-profit, community-based organizations, including 

faith-based organizations3

• For-profit staffing and temporary agencies 

• Educational institutions, including community colleges and 

technical or vocational schools 

• Labor unions and labor-management collaborations 

• Workforce Investment Boards (WIBs) 

In a recent survey by the National Network of Sector Partners 

(NNSP), 66 percent of workforce intermediaries reported that they 

serve more than 500 individuals each year, more than half of 

whom are low-income or low-wage workers. Workforce 

intermediaries also provide services to many employers—82 

percent serving more than 11 employers each year.4

 

Intermediaries sustain their work with diverse funding sources, 

including Workforce Investment Act (WIA) and foundation funds. 

Some organizations also generate revenue from fee-for-service 

activities. Twenty-seven percent of workforce intermediaries 

 

2

 Partnership for Employer-Employee Responsive Systems (PEERS). 

November 2003. “Workforce Intermediaries: Generating Benefits from 

Employers and Workers.” 

3

 According to a recent study, a small percentage of intermediaries identify 

themselves as FBCOs (7%). Montiel, Lisa, D. Wright. “Getting a Piece of 

the Pie: Federal Grants to Faith-Based Social Service Organizations.” 

Albany: NY. Roundtable on Religion and Social Welfare Policy, 2006. 

Accessed from 

http://www.religionandsocialpolicy.org/docs/research/federal_grants_report_

2-14-06.pdf. 

4

 Marano, C. and Tarr, K. 2004. “The Workforce Intermediary: Profiling the 

Field of Practice and Its Challenges.” pp. 93-123 in R. Giloth (ed.) 

Workforce Intermediaries for the 21st Century. Philadelphia: Temple 

University Press. 
I-4

reported receiving corporate business contributions to support 

employment and training efforts.5

 

As described in the next chapter, what distinguishes workforce 

intermediaries from other workforce development organizations 

that serve both employers and workers is that intermediaries adopt 

high-performance strategies—strategies that go beyond job 

matching to demand side strategies that focus on improving 

employers’ human resource systems and overall competitiveness. 

 

5

 Ibid. 
II-1

II. ROLE OF WORKFORCE INTERMEDIARIES 

In the last decade, workforce intermediaries have become 

increasingly important players in the workforce development 

system. These third-party institutions have greatly expanded in 

size and are unique in their ability to serve “dual customers”—

businesses and jobseekers. In this chapter, we discuss their key 

functions and activities and describe how they have effectively 

linked FBCOs with businesses and other community organizations. 

Key Roles of Workforce Intermediaries 

There are many ways in which intermediaries work with 

businesses and workers to strengthen the workforce development 

system. As mentioned in Chapter 1, some intermediaries provide 

overall leadership and vision to specific workforce initiatives, 

while others provide services directly or broker services through 

their network of providers. In general, intermediaries typically 

engage in the following activities: 

• Provide leadership and guidance to partnering 

organizations. 

• Convene key stakeholders, including businesses, 

educational institutions, and other service providers. 

• Leverage public and private funding to advance goals and 

objectives. 

• Analyze and redesign jobs within specific sectors or 

industries. 

• Provide and/or broker services to workers and businesses. 

Exhibit II-1 summarizes these roles and the specific activities 

related to these roles. 

Workforce 

intermediaries work 

with businesses to 

identify their staffing 

and training needs 

and broker or provide 

relevant skills training 

for their workers. 
II-2

Exhibit II-1: 

Workforce Intermediary Roles and Activities 

Role Description Activities 

Provide 

Leadership and 

Guidance to 

Partnering 

Organizations 

• Motivate and guide 

partner organizations to 

pursue a common 

agenda through 

innovative and promising 

practices. 

• Build consensus, engage 

in strategic planning, and 

mobilize partners to 

overcome funding 

constraints and 

institutional 

misalignments. 

• Lead innovative approaches to 

training, such as sectoral 

initiatives. 

• Provide partner organizations 

with technical assistance to 

develop or refine their mission, 

improve service delivery, 

enhance performance, and 

administer funds. 

• Provide opportunities for 

partners to share best 

practices. 

Convene Key 

Stakeholders • Convene, organize, and 

mobilize businesses, 

faith-based and 

community organizations, 

labor unions, social 

service agencies, and 

jobseekers to plan, 

design, and implement 

strategic workforce 

initiatives to ensure 

workers and business are 

successful. 

• Build or maintain relationships 

with key community, industry, 

public, and political figures. 

• Draw on key contacts to 

secure buy-in from the abovementioned figures’ 

constituencies. 

• Conduct resource mapping to 

identify community leaders 

who could contribute to 

workforce development efforts. 

Leverage Funding • Leverage public and 

private funding and pool 

these resources to 

support workforce 

development activities. 

• Identify funding sources. 

• Pool community and business 

resources to support workforce 

initiatives, such as sectoral 

initiatives. 

Analyze and/or 

redesign jobs • Analyze job functions and 

labor market information 

to document worker 

shortages, in-demand 

jobs, and high-growth 

industries and focus on 

training and employment 

services in those areas. 

• Develop worker standards and 

credentials. 

• Design job or career ladders. 

• Identify employee skill 

deficiencies. 
II-3

Role Description Activities 

Provide and/or 

Broker Services • Provide job training and 

employment and labor 

market services or broker 

these services through 

partner organizations. 

• Create career ladders 

and career advancement 

opportunities. 

• Provide business needs 

assessment, job matching, job 

placement, skills training, and 

employment supports. 

• Plan and provide education 

and training with partners, such 

as FBCOs. 

• Recruit labor pools and 

refer/match them to jobs. 

• Collect and disseminate labor 

market information. 

• Assist with childcare and 

transportation. 

Examples of Workforce Intermediary Activities 

As shown in Exhibit II-1, workforce intermediaries engage in a 

myriad of organizational, convening, and service brokering 

activities. We highlight these activities below. 

• Provides technical assistance to FBCOs to implement 

customized training. 

− Capital IDEA, a central Texas workforce intermediary, 

partnered with local business leaders and Austin 

Interfaith, a coalition of regional congregations, to 

create the Capital Area Training Foundation to provide 

employment services for local jobseekers. The 

training foundation then partnered with the Greater 

Austin Chamber of Commerce and received substantial 

support and assistance on developing in-demand job 

training and placement for the foundation’s customers.6

 

• Provides technical assistance to FBCO to enhance 

performance. 

− The Milwaukee Private Industry Council (PIC) was 

interested in engaging small-to-medium sized FBCOs 

with strong community connections to improve the 

PIC’s outreach to low-income workers. As part of 

 

6

 Looney, S. and C. King. 2005. “Expanding Opportunities for Businesses 

and Workers: Promising Practices for Workforce Intermediary Initiatives.” 

Working Paper. Austin, Texas: University of Texas at Austin. 

Intermediaries provide 

technical assistance 

and training to FBCOs 

on delivering 

workforce training 

program and 

strategies to enhance 

performance. 
II-4

DOL’s Touching Lives and Community project, the 

Milwaukee PIC assisted the Faith Partnership Network 

(FPN), a workforce intermediary, in building the 

capacity of grassroots and mid-size FBCOs to partner 

with the workforce development system. As a result of 

this work, several FBCOs met the requirements under 

the PIC’s Request for Services, a pre-requisite to 

becoming eligible to provide services to WIA 

participants.7

• Provides guidance to FBCO on training and service 

delivery. 

− The New Commandment Baptist Church, became the 

satellite site for the North Carolina workforce 

intermediary, Jobs for Life. The intermediary supplies 

the church and other congregation partners with a 

standard job skills training curriculum and guidance on 

service delivery. As a result: 

∼ More than 250 low-income individuals graduated 

from the program. 

∼ Eighty percent of graduates became employed after 

graduation. 

∼ Ninety percent of those employed after graduation 

remained employed after six years.8

• Links FBCO to other community agencies and businesses. 

− In Memphis, Tennessee, the leader of Uptown 

Alliance, a faith-based workforce intermediary, 

initiated a partnership with the Memphis Marriott 

Downtown to provide customized training for lowincome jobseekers. This intermediary partnered with 

training organizations, such as the Klemmons Wilson 

School and the American Hotel & Lodging 

Educational Institute’s Skills, Tasks, and Results 

 

7

 Voll, M., L. Johnson, and W. Wubbenhorst. 2004. “Experiences from the 

Field: Fostering Workforce Development Partnerships with Faith-Based and 

Community Organizations.” Touching Lives and Communities Pilot 

Initiative. Washington, D.C.: ORC Macro. Submitted to USDOL Center for 

Faith-Based and Community Initiatives, Office of the Secretary. 

8

 Parkinson, Deborah. 2006. “Achieving the Six Core Results: The Role of 

Faith-Based Organizations.” New York, NY: The Faith Center For 

Community Development, Inc. 
II-5

Training Program (START). This customized training 

program allowed the FBCO intermediary to build and 

foster relationships with local employers, as well as the 

local WIB and the Assisi Foundation, which provided 

funding for the initiative.9

 

• Includes key business and political leaders on boards or in 

other decision-making positions. 

− International Institute of Boston (IIB), a workforce 

intermediary, has included the Hilton Hotel 

Corporation on its Planning and Evaluation Committee 

to provide input on the design and evaluation of IIB’s 

customized, hospitality training program for new 

workers.10 

• Leverages funding from key industry, political, and 

community stakeholders. 

− In Milwaukee, Wisconsin, the Wisconsin Regional 

Training Partnership (WRTP) received funding from 

business and political leaders for its proposed Worker 

Training Center. Additionally, it reached an agreement 

with community-based organizations to provide 

resources, such as staffing, once the center was up and 

running.11

• Convenes multiple businesses to identify industry 

standards. 

− Philadelphia, Pennsylvania’s Customer Service 

Training Collaborative (CSTC) aimed to change the 

labor market dynamics among local retailers by 

increasing the number of skilled customer service 

workers in the metropolitan area. To do so, CSTC 

 

9

 Voll, M., L. Johnson, and W. Wubbenhorst. 2004. “Experiences from the 

Field: Fostering Workforce Development Partnerships with Faith-Based and 

Community Organizations.” Washington, D.C.: ORC Macro. Submitted to 

USDOL Center for Faith-Based and Community Initiatives Office of the 

Secretary. 

10 Hebert, S. and B. Siegel. 2005. “Baseline Report of the SkillWorks 

Initiative.” Cambridge, MA: Abt Associates. Somerville, MA.: Mt. Auburn 

Associates. 

11 Fischer, David. 2005. “Workforce Intermediaries: Powering Regional 

Economies in the New Century.” New York, NY: Center for an Urban 

Future. 
II-6

convened Philadelphia-area employers and the 

National Retail Federation Foundation (NRFF), a 

business association representing over 1.4 million retail 

establishments, to identify core skills that are required 

of customer service employees. The group concluded 

that customer service positions were all based on the 

same specific core competencies, and as such, 

employees and jobseekers could benefit from a single 

training program. As a result, CSTC partnered with 

the Jewish Educational and Vocational Services 

(JEVS) and received WIA Dislocated Worker and state 

Welfare to Work funds to provide job training and 

placement for participating businesses.12

• Convenes business and training partners to analyze skill 

gaps and to provide targeted training. 

− Project QUEST received feedback from employers that 

nursing homes were having difficulty identifying 

qualified employees. In response, the intermediary 

advocated that a local college not eliminate a Licensed 

Practical Nurse (LPN) course on geriatric care as 

previously planned to ensure that local worker skills 

would match employer needs.13

These examples illustrate the diverse roles that intermediaries 

generally undertake in the workforce development system. The 

next chapter describes key characteristics of intermediaries that 

make them particularly effective in working with businesses, 

FBCOs, and other community agencies. 

 

 

12 Ibid. 

13 Zandniapour, L. and M. Conway. 2002. “Gaining Ground: The Labor 

Market Progress of Participants of Sectoral Employment Development 

Programs.” SEDLP Research Report No. 3. Washington D.C.: The Aspen 

Institute. 
III-1

III. QUALITIES OF SUCCESSFUL INTERMEDIARIES 

A successful intermediary organization 

provides valuable local knowledge for 

reaching new markets, builds trust as 

companies work with established community 

institutions, and offers broader community 

credibility. 

~ Susan Beresford, President, Ford 

Foundation14 

As the quote above suggests, intermediaries have a range of 

characteristics that affect their ability to organize, broker, and 

convene multiple partners in the workforce development system. As 

mentioned in Chapter 2, intermediaries include a variety of public 

and private organizations seeking to improve access to good jobs for 

workers by connecting them to high quality education and training 

and developing career ladder programs. Intermediaries also help 

employers by connecting them with qualified workers. For these 

reasons, FBCOs can link with workforce intermediaries to enhance 

their capacity to develop business partnerships. 

In this chapter, we explore the qualities of workforce 

intermediaries that make them particularly successful at working 

with businesses, workers, and FBCOs to achieve strong labor 

market outcomes. We begin with a discussion of the specific 

features of successful intermediaries and discuss examples of best 

practices. We conclude this chapter with a discussion of how 

FBCOs can benefit from relationships with workforce 

intermediaries. 

 

14 Ford Foundation. 2001. “Win-Win: Competitive Advantage Through 

Community Investment.” New York: NY: Ford Foundation. 

Successful intermediaries 

bring together key 

partners and functions to 

advance careers for all 

workers in order to 

increase business 

productivity and improve 

regional competitiveness. 
III-2

Features of Successful Intermediaries 

We create opportunities to network with 

employers. We get employers to the table 

and talk about what they are looking for in 

employees. After we meet with employers, 

there is an opportunity for FBCOs to 

network with employers and ask questions. 

~ Colleen Doyle, Business Representative, 

Workforce Organization for Regional 

Collaboration (WORC) 

Successful workforce intermediaries bring together a broad 

network of community stakeholders, including FBCOs to enhance 

the workforce system. Intermediaries’ dual customer focus—

businesses and workers—enable them to both help workers advance 

their careers and help businesses identify labor market trends to 

make informed decisions about successful human resources 

practices. Successful intermediaries also build “on-the-ground” 

partnerships with a range of providers, design and implement 

specific career pathways, integrate a wide variety of resources to 

support workers and businesses, and focus on achieving ambitious 

outcomes. In some cases, intermediaries bring new resources to the 

table, including public, private, and philanthropic funding.15 

Exhibit III-1 summarizes key features of successful intermediaries 

and specific practices to illustrate those features. 

 

15 Giloth, R 2004. “A case for workforce intermediaries.” pp. 3-30 in Giloth, R 

(ed.) Workforce Intermediaries for the 21st Century. Philadelphia: Temple 

University Press. 

We talk with our employers 

about job quality and career 

pathways. If jobs are 

temporary, pay no benefits, 

or are low wage, we 

discuss ways to improve job 

quality. If the employer isn’t 

interested, we may refer 

them to another 

organization for help. 

--Terri Feeley, Director, 

SFWorks 
III-3

Exhibit III-1: 

Features of Successful Intermediaries 

Feature Description Sample Practices 

Advocates for 

improved 

workforce policy 

• Promotes the 

advancement of low-skill 

workers by working to 

improve job quality and 

opportunities for 

advancement. 

Workforce intermediaries 

provide employers with 

best practices to improve 

the working conditions of 

low-income workers. 

• The Center for Employment 

Training (CET) advocated for 

employer tax credits through its 

healthcare and telecommunications 

training programs. 

• The Wisconsin Regional Training 

Partnership (WRTP) convinced 

state legislators to set aside $20 

million of surplus TANF funds for a 

Workforce Attachment and 

Advancement Fund that supported 

incumbent worker training. 

Develops strong 

community ties and 

connection to 

businesses 

• Works with community 

stakeholders 

(businesses, social 

service agencies, and 

other providers) to 

improve labor market 

outcomes. 

• A major bank in Cleveland, Ohio 

needed to quickly fill 50 jobs in 

three to four job categories. The 

bank called the Greater Cleveland 

Growth Association (GCGA), an 

intermediary. By the next day, 

GCGA had organized a job fair. By 

the following week, the providers 

had recruited 32 individuals to apply 

for the jobs, and those 32 

individuals had first and second 

interviews that same week. 

Maintains ongoing 

communication 

with businesses 

• Maintains ongoing and 

proactive contact with 

businesses to stay 

abreast of their needs 

and priorities. 

• SFWorks convened an employer 

breakfast to understand the skills 

that employers needed for a new 

automotive training program. 

• Wire-Net staff called businesses 

once a month and visited them 

twice a year to identify their 

business needs (i.e., staffing, 

training). 

• Jewish Vocational Services (JVS) 

hosted “Strictly Business” 

luncheons to acknowledge the 

businesses that had hired staff who 

were referred by JVS. These 

luncheons also enabled JVS to 

cultivate and nurture their 

relationship with their business 

partners. 
III-4

Feature Description Sample Practices 

Implements 

professional 

development 

activities to foster 

business growth 

and learning 

• Organizes learning 

groups, workshops, and 

forums to promote 

shared learning and best 

practices in addressing 

human resource needs. 

• WIRE-Net sponsored employer 

workshops and learning groups to 

raise awareness about the needs of 

new workers and promote 

collaboration among participating 

businesses. These workshops 

included supervisor training 

programs, customized training, and 

retention supports. As part of the 

learning groups, employers toured 

each other’s facilities and met three 

to four hours a month for several 

months to address key topics that 

the employers identified. Topics 

have included sustainability of 

partnerships with workforce 

intermediaries, productivity, and 

workforce training. Participation in 

learning groups cost $800 per 

company. 

Conducts thorough 

research and 

development 

• Researches and 

analyzes business and 

industry-specific needs 

through surveys, focus 

groups, and other 

methods. 

• Cleveland’s Jobs and Workforce 

Initiative (JWFI) conducted a 

detailed survey of 1,200 employers 

and conducted focus groups with 

employers to understand their hiring 

priorities and training needs. 

• The Greater Cleveland Growth 

Association (GCGA) in Cleveland, 

OH maintained a biannual 

Information Technology 

“Barometer” based on a survey of 

local business and used the survey 

results to better focus their training 

efforts. Survey results were also 

used to guide training providers so 

that they could match employers’ 

needs. 

Develops strategic 

alliances with other 

companies 

• Partners with other 

companies to advance 

industry-specific goals 

and/or stimulate 

economic development. 

• LEED-Sacramento is a school-tocareer intermediary that convenes 

and organizes multiple school-tocareer partners, including 

businesses, school districts, postsecondary institutions, CBOs, and 

other types of partners. LEED 

included over 135 businesses in an 

industry consortia representing a 

variety of industries. Businesses in 

the consortia provided students 

enrolled in career academies with 

work-based learning opportunities. 
III-5

Feature Description Sample Practices 

Implements 

successful 

marketing and 

media strategies 

• Invests in professional 

marketing materials to 

communicate outcomes 

and accomplishments to 

community stakeholders. 

Sample materials may 

include brochures, 

newsletters, media 

campaigns, and other 

marketing materials. 

• Cleveland’s Jobs and Workforce 

Initiative (JWFI) included a media 

representative on its advisory board 

to help create press releases and 

media briefings to attract media 

attention about its work. 

• WIRE-Net has sent newsletters to 

businesses about upcoming events 

and updates about its work. 

Newsletters also included 

information about market trends 

and news about companies in the 

same industry. 

Focuses on 

ambitious 

outcomes 

• Sets high performance 

standards. 

• Seeks high quality jobs 

that lead to careers so 

that both workers and 

businesses achieve 

strong labor market 

results. 

• SFWorks looks for business 

partners that provide jobs with 

starting hourly wages over $9. 

As shown in Exhibit III-1, several features of successful 

intermediaries stand out. These include: 

• Focus on particular industries. Successful workforce 

intermediaries typically target specific industries so that they 

can focus their efforts and develop expertise in those industries. 

Focusing on particular sector(s) also enables intermediaries to 

customize education and training efforts, develop industry-specific 

career ladders, and target specific employers within those sectors. 

• Emphasize building relationships with businesses and 

maintaining ongoing relationships with them. Working with 

businesses is a central part of intermediaries’ mission. Successful 

intermediaries, therefore, engage businesses on a regular 

basis through frequent communication and active 

participation on decision-making bodies, such as policy and 

advisory boards. 

• Maintain connections with communities. Successful 

intermediaries have strong ties to the community, are 

politically savvy, and have support from private and public 

sector leaders. 

• Pursue ambitious outcomes. Successful intermediaries have an 

entrepreneurial spirit and focus on outcomes, such as long-term 

Successful 

intermediaries work 

within a particular 

sector to fully 

understand one 

industry’s workforce 

needs. 
III-6

job retention, wage progression, and career mobility. To meet 

these objectives, many intermediaries seek business partners 

that offer jobs with liveable wages. Perhaps because of these 

ambitious goals, many workforce intermediaries are outperforming other workforce development entities. Research 

shows that outcomes of successful intermediaries are noticeably 

better than outcomes of other workforce development agencies. 

Typical hourly wage rates at job placements achieved by 

workforce intermediaries range from $9.50 to over $11.00, 

compared to outcomes achieved by other workforce 

development providers, which range from $5.15 to $7.50.16

• Advocate for enhanced workforce policies. While not all workforce 

intermediaries seek to change or modify public policies, many of 

them seek to improve labor market conditions that will foster selfsufficiency for low-income workers and their families. For 

instance, SFWorks engages in policy advocacy by “identify[ing] 

opportunities to promote [career] advancement strategies and 

help[ing] connect workers with the legislature and the media.”17 

Research shows that workforce intermediaries with these traits have 

achieved positive outcomes. For example, 

• An evaluation of Project Quest, a workforce intermediary in 

San Antonio, Texas, found that participants gained an average 

of $7,000 more in their annual income after they participated in 

Project Quest’s training and supportive services.18 In addition, 

program participants increased their wages an average of $4.03 

per hour above what it had been prior to receiving training.19 

• The Wisconsin Regional Training Partnership (WRTP) 

convinced state legislators to set aside $20 million of surplus 

 

16 Marano, C. and Tarr, K. 2004. “The Workforce Intermediary: Profiling the 

Field of Practice and Its Challenges.” pp. 93-123 in Giloth, R. (ed.) 

Workforce Intermediaries for the 21st Century. Philadelphia: Temple 

University Press. 

17 Kazis, R. 2004. “What Do Workforce Intermediaries Do?” pp. 73-92 in 

Giloth, R. (ed.) Workforce Intermediaries for the 21st Century. Philadelphia: 

Temple University Press. 

18 Giloth, R 2004. 

19 Zandniapour, L. and M. Conway. 2002. “Gaining Ground: The Labor 

Market Progress of Participants of Sectoral Employment Development 

Programs.” SEDLP Research Report No. 3. Washington, DC: The Aspen 

Institute. 

Intermediaries set 

high performance 

standards. 
III-7

TANF funds for a Workforce Advancement Fund that supports 

incumbent worker training for low-wage workers.20

• The Baltimore Alliance for Careers in Healthcare—comprised 

of nine hospitals, five state and federal agencies, and seven 

local foundations—committed over $500,000 to projects that 

developed customized, employer-based career pathways, 

provided basic skills and occupational training in healthcare 

careers, and partnered with hospitals to implement career 

coaching programs. 

• Intermediaries outperformed other workforce development 

agencies. 

− Fifty-five percent of workforce intermediaries reported 

an average wage at placement that exceeded $9.50 per 

hour, compared to $5.15 to $7.50 per hour among other 

workforce development entities. 

− Twenty-nine percent of workforce intermediaries reported 

an average wage at placement that was over $11 per hour.21

• Benefits to employers are also noteworthy. In a recent survey 

conducted of intermediaries: 

− Thirty-four percent of workforce intermediaries reported 

that when workers participate in training programs, 

there are reduced worker recruitment costs for 

employers because workforce intermediaries can 

screen and match workers to specific jobs. 

− Thirty-two percent reported lowered training costs for 

employers. 

− Twenty-two percent reported increasing the promotion 

potential of workers.22

• The five intermediaries that participated in the Investing in 

Workforce Intermediaries Initiative, funded by the Anne E. 

Casey and Ford Foundations, established a funding consortium 

that included 34 local and regional foundations that committed 

nearly $24 million in new dollars to support workforce 

 

20 Kazis, R. 2004. 

21 Marano, C. and Tarr, K. 2004. 

22 Ibid. 

Successful 

intermediaries target 

high-wage jobs. 
III-8

intermediaries. These consortia have also attracted over $13 

million dollars of investments from local and state governments, 

and more than a dozen major employers have invested almost 

$3 million in worker training and supports to date.23 

These successes stem partly from intermediaries’ ability to engage in 

multiple activities—broker services, organize key workforce 

development partners, and provide training and/or employment supports. 

Because of their multiple roles, workforce intermediaries 

can reach a cross-section of the community that is working 

to provide good jobs for workers and businesses with 

staffing and training support. For example, a director of a 

workforce intermediary noted that it was important to 

engage in a range of activities in order to gain buy-in and 

support from businesses and workers. As this director explained, 

Successful intermediaries won’t all do the 

same thing. However, they all need to do 

more than one thing. We found that being a 

credible data source and providing 

workforce development services makes our 

policy work more influential. On its own, 

our policy work would not have enough 

traction. 

~ Fred Dedrick, Director, Reinvestment 

Fund in Philadelphia24

Businesses also value the role that intermediaries play in supplying 

them with a steady pool of qualified workers to fill job vacancies 

and providing supportive services to enhance job retention. As one 

business representative noted, 

We got involved with WIRE-Net because 

retention of new workers was a problem. 

We also needed to keep the pipeline of 

skilled workers full—we have to be able hire 

dye makers; a lot are going to retire soon. 

 

23 Scott, Geri. “Funder Collaboratives: A Philanthropic Strategy for 

Supporting Workforce Intermediaries.” Boston: MA. Jobs for the Future, 

2007. Accessed from http://www.jff.org/Documents/FunderCollab.pdf. 

24 Kazis, R. 2004. 

Businesses that have 

used intermediaries 

to develop training 

have lower turnover 

than those that have 

not. 
III-9

Our biggest fear has been that we aren’t 

going to be able to keep skilled people. 

~ Pete Accorti, Manager, Talan Products, 

small metal stamping manufacturer25

Further, workforce intermediaries represent a strong sense of 

professionalism that garners trust from businesses that may 

otherwise be reluctant to turn to the other workforce development 

entities for support. As one business owner explains, 

Working with Jewish Vocational Services in 

San Francisco is a transparent process. By 

that, I mean they are businesslike, they have 

organizational processes down well, they 

are classy, they are located in downtown 

San Francisco, which means a lot. They 

make it very easy to do business, they know 

how to relate to employers on protocol and 

etiquette, and they’re nice. 

~ Jason Mooring, Manager of Staff 

Development, Tiburon, California 

How FBCOs Can Benefit from Workforce 

Intermediaries 

Workforce intermediaries can play an important role in supporting 

FBCOs that seek to partner with businesses and other community 

agencies. While some FBCOs are making progress in partnering with 

businesses, many require additional support to deepen their 

relationships with businesses so that they can help jobseekers and lowincome workers meet their career objectives. For example, Colleen 

Doyle of Workforce Organization for Regional Collaboration 

(WORC) has facilitated partnerships between FBCOs and businesses. 

In this work, she noted, some FBCOs require technical assistance to 

enhance their capacity to connect with businesses. 

We build the capacity of small FBCOs so 

that they are better able to engage with 

employers. We talk to them about the skills 

 

25 Clymer, C. 2003. “By Design: Engaging Employers in Workforce 

Development Organizations.” New York: NY. Public/Private Ventures. 

Many intermediaries are 

not able to provide the 

full spectrum of services 

that jobseekers need 

and, instead, broker 

with other organizations 

(e.g., educational 

institutions, other 

training providers, social 

service agencies, OneStop Career Centers, 

and FBCOs). 
III-10

that employers look for, how to present their 

organizations, and how to talk to them using 

business language. 

~ Colleen Doyle, Business Representative, 

Workforce Organization for Regional 

Collaboration (WORC)

As Ms. Doyle explains, her intermediary serves as a “buffer” or 

“interpreter” between FBCOs and businesses. She helps 

businesses understand the public workforce system, including its 

role and requirements, addresses misperceptions that may exist 

about FBCOs, and helps build trust between businesses and other 

community entities, such as FBCOs. 

FBCOs can also benefit from the work of intermediaries because 

intermediaries have a broad community focus and take a 

comprehensive approach to addressing the workforce development 

needs of local communities. Intermediaries set high standards for 

their performance by working with businesses to create good jobs 

through career ladders and advancement opportunities. For 

example, SFWorks, a workforce intermediary that has a strong 

community presence, convinced several employers to change the 

probationary period for employee benefits from 150 days to 30 

days. Project Quest and the Center for Employment Training 

(CET) also have strong ties to local providers and businesses. 

CET, for example, has been particularly successful linking with 

businesses because of its close ties to community leaders who have 

advocated for CET’s work. 

Further, FBCOs may benefit from the “connecting” role that 

intermediaries play. As small organizations, FBCOs seek to 

develop partnerships with other service providers with similar 

goals and objectives. Linking with intermediaries that have 

community-based networks can increase the likelihood of 

successful collaborations between FBCOs and other workforce 

development organizations and businesses as well. Below is a case 

study of an intermediary called Workforce Organization for 

Regional Collaboration (WORC) that has worked successfully 

with FBCOs and businesses. 
III-11

Workforce Organization for Regional Collaboration (WORC): 

Connecting Commerce and Community 

WORC is a member organization that is comprised of roughly 100 fee-paying non-profits, including 

FBCOs, in the Washington, D.C. area. WORC represents a number of businesses that are looking to 

fill positions through non-profit members, including FBCOs. Currently, WORC has a contract to work 

with 14 small FBCOs in northern Virginia. These organizations have limited capacity to partner with 

businesses because most have only a couple of staff, but “tons” of volunteers. According to Colleen 

Doyle of WORC, the value of FBCOs is that they have access to “dozens” of hard-to-reach 

populations that businesses seek to draw from to fill entry-level positions, including low-income 

individuals, the unemployed, the homeless, and ex-offender populations. 

As an intermediary organization, WORC connects businesses with non-profits, including FBCOs, by 

building strong partnerships between them. What makes WORC particularly successful is that it has 

strong connections to both businesses and FBCOs. WORC supports small FBCOs because, as 

Colleen Doyle said, FBCOs require extensive support to develop successful business partnerships. 

She explains, 

It’s hard for FBCOs to initiate partnerships with employers because they don’t 

know what employers are looking for. We educate the non-profit and faith-based 

community about what employers are looking for before they approach 

employers. There is a lot of trepidation among non-profits to approach 

employers because they may have had a bad experience. Sometimes nonprofits refer a client to an employer and if a candidate doesn’t match, that forever 

taints the relationship with the employer, and undermines their credibility, and an 

employer won’t go back to that non-profit for candidates. 

As part of her role, Ms. Doyle works for FBCOs to connect them to businesses that are seeking to fill 

positions. She does this by creating opportunities for FBCOs and businesses to get to know one 

another through the following techniques: 

• Hold business appreciation events, such as breakfasts, luncheons, etc. 

• Engage businesses and FBCOs in “speed networking” to facilitate introductions. 

• Identify FBCOs that are “ready” to partner with businesses based on their organizational 

capacity, resources, and staffing structure. 

• Develop a strong sales pitch that highlights the benefits of FBCOs and their work with the 

community, businesses, and jobseekers. 

An essential step to her work is to formally introduce FBCOs to businesses. This requires 

extensive “pre-work” to make sure that FBCOs are ready to partner with a particular business. 

She explains, 

If an FBCO is able to recognize when a client is ready for work and that client is 

appropriate for the employer, then I would say [to the employer] you need to work 

with this FBCO. You can really trust them. It takes time to develop a program and 

build trust of employers. That is why we are there to make it happen. 

In the end, when FBCOs know how to sell themselves to businesses, Ms. Doyle then considers her 

work successful. 
III-12

As indicated above, FBCOs can benefit from the wide range of support 

that intermediaries provide to businesses and other service providers, 

such as technical assistance and training as well as exposure to 

strategies to enhance performance, design career ladders, leverage 

additional funding, and network with other community partners. At 

the same time, intermediaries can benefit from their FBCO 

partnerships because FBCOs provide access to a diverse labor pool 

and can provide job retention supports, such as childcare and 

transportation. 

Conclusion 

Findings from this literature review offer a glimpse at the variety 

of organizational structures and functions that characterize 

workforce intermediaries. Workforce intermediaries are diverse 

organizations that broker partnerships, integrate a variety of 

resources, and develop policies to strengthen the workforce 

system. In their role as “brokers,” “connectors,” and “conveners,” 

workforce intermediaries are furthering the career advancement of 

low-income workers and connecting businesses to a steady stream 

of qualified workers. As shown throughout this report, using 

workforce intermediaries can be a successful strategy to expand 

the labor force in ways that can increase the productivity of 

businesses.