Cost-effectiveness of job placement activities among selected community colleges
Authors:   , Pry Harry W. 
Published: June 2024

Objectives of the Study: The major purposes of this study were: (1) to find the costs and average per student costs for the agricultural business job placement program, (2) to find the benefits for students utilizing the placement services, (3) to determine if the total benefits exceed the social costs of the program, and (4) to determine the cost-benefit relationships for the job placement program using three investment criteria. Methods and Data Source: The population for the study consisted of five Missouri community colleges and one area vocational-technical school. The institutions award Associate of Science degrees, Associate of Arts degrees, and Certificates of Specialization in Agricultural Business. All individuals included in this study completed a post-secondary agricultural program. Every individual had an opportunity to use the services provided by the statewide job placement program. Cost data were obtained through the coordinating institution, the participating schools, and from individuals completing the post-secondary agricultural business programs during the period of time for this study, 1971 to 1973. Two cost estimates were computed for use in investment analysis: (1) costs and average per student costs for the job placement program (costs for coordination and operation), and (2) costs and average per student costs for job placement activities (sum of costs for job placement program and student costs in job search). Benefit data were obtained from a population of 197 individuals completing post-secondary agricultural programs during 1971-1973. There were 102 usable responses obtained from a mail-out survey. The criterion used to quantify benefits in this study was yearly earnings. Earnings data were obtained for the first, second, and most recent full-time job after college. Multiple regression techniques were used to identify the factors, other than and including the use of the job placement program, that influenced fluctuations in earnings. Results and Conclusions: Investment analysis was computed using $580, average costs per student user for the statewide job placement program; and $798, average costs per student user for job placement activities. The following regression coefficients were estimated when annual earnings were regressed on selected independent variables for individuals fully and partially using the job placement services: Model I Model II Beginning Earnings Present Earnings Full Use b = $1,551 b = $1,334 Partial Use b = $1,237 b = $ 270 The above regression coefficients were interpreted as monetary benefits. Three investment criteria were used to determine the cost-benefit relationships for job placement. The major conclusions were: 1. The allocation of vocational-technical funds for job placement actitivies is an economically worthwhile investment for agribusiness graduates and for society. The highest level of benefits were received by full users of the job placement service. 2. The total benefit exceeded the social costs of the program. The internal rate of return for full users of job placement activities was 182.03 percent for all respondents and 197.06 percent for 1971-72 respondents. Therefore, the job placement program has been a highly desirable investment for colleges, for individuals, and for society. 3. Benefits from using the job placement program decreased with respect to time. 4. It is economically desirable to train individuals to enter employment as managers, mid-managers, and/or technicians. Recommendations Vocational administrators in decision-making positions should consider shifting vocational-technical education funds from the mainstream of educational programs to job placement services in all areas of vocational-technical education. Educators should take the initiative in assisting students to make the transition from school to the world of work. An attempt should be made to provide interviewing assistance for all students enrolled in the agribusiness programs. The higher level of benefits received by full users of the placement program suggests that the economic efficiency of the placement program could be increased by assisting all students in interviewing. The economic efficiency of the job placement program may be further increased by increasing the volume of students served.