Impact Bond: IOD - Interventions sur les Offres et les Demandes (Intervention on supply and demand)
Stage of development: Implementation
Policy sector: Employment and training
Social challenge: Long-term unemployment can have disastrous effects on people and for society as a whole. The longer people are out of work, the more their skills and social networks tend to erode. This sends them into a downward spiral that makes it ever harder to find a new job.
Intervention: The IOD ('Intervention sur les Offres et les Demandes' in French) is an original method to help the employment of target groups that are very far removed from the labor market to find work. For long-term job seekers and the low-skilled, a resume can be a major hurdle. A resume with holes or with a sloppy layout is quickly put to the side. In other cases, the name that appears at the top of the resume takes care of that. While none of these things have to mean that the job seeker would not be competent. With the IOD method, the CV is omitted and the focus is only on the needs of the employer. The employer no longer chooses on the basis of CVs: it is the jobseeker who chooses his job and position based on the job offers – at least three – that are offered to him or her. The roles are thus reversed, which not only avoids discrimination in recruitment, but also involves the job seeker – who is no longer called a job seeker, but “professional” – more in the process.
Date outcomes contract signed: 2018
Start of service provision: 2018-04
Anticipated completion date: 2023-02
Total investment commitment currency: EUR
Total investment commitment: 2200000
Total investment commitment (USD): 2596831.199500378
Maximum potential return type: IRR
Maximum potential return: 0.075
Finance notes: The return of the investors is determined by the results achieved, in particular the re-employment rate of the participants:
If the results are lower than those of the control group, the investors lose the entire amount invested.
If the re-employment rate is between 1% and 50% higher than in the control group, the investors will be reimbursed their sum, without premium.
If the results are between 50% and 100% higher than those of the control group, the investors receive a premium on top of their investment. This progressive premium is capped at 7.5%.
Target population: Job seekers with a low level of education or job seekers who have been unemployed for more than 2 years.
Targeted number of service users or beneficiaries: 750
Targeted unit type: Individual