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Getting In Staying On Moving Up - GiveWell

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GETTING IN, <strong>Staying</strong> on, <strong>Moving</strong> <strong>Up</strong> 11<br />

The Cost of <strong>Moving</strong> <strong>Up</strong><br />

Since VFI’s employment retention efforts are<br />

as extensive as any in the employment field<br />

today, it comes as no surprise that they command<br />

significant resources. <strong>In</strong> fiscal year<br />

1997-98, VFI spent approximately $713,000<br />

on employment retention assistance for the<br />

803 people in the caseload. These expenses,<br />

summarized in Figure 3, include direct staff<br />

costs for nine career advisors and the unit<br />

supervisor, as well as related rent, utilities<br />

and overhead expenses.<br />

<strong>In</strong>cluding overhead, <strong>Moving</strong> <strong>Up</strong> spent just<br />

under $900 per participant last year—or<br />

$1,800 per person for the two years they<br />

remain in the program. Approximately $720<br />

per participant was spent on direct services,<br />

while $180 was spent on overhead, rent and<br />

other indirect expenses. It should be noted<br />

that New York salaries are significantly higher<br />

than those in many areas of the country; VFI<br />

pays its career advisors between $32,000 and<br />

$38,000 annually.<br />

Figure 3<br />

The Annual Cost of <strong>Moving</strong> <strong>Up</strong>'s Employment<br />

Retention Program<br />

Telephone, postage, etc. $11,977<br />

Supplies $14,298<br />

Travel $23,724<br />

Rent, utilities, etc. $24,716<br />

Client expenses $27,560<br />

Consultants/instructors<br />

$38,883<br />

Administrative overhead<br />

$85,733<br />

Salaries and fringes $485,938<br />

Source: P/PV analysis of VFI data.<br />

Figure 4<br />

Allocation of Staff Time With Clients<br />

24 Months of Post-Employment Services<br />

40<br />

35<br />

Much of the retention effort occurs soon after<br />

placement. VFI estimates that 40 percent of<br />

the time staff spend on post-employment<br />

services is during the first six months after a<br />

participant graduates and 90 percent during<br />

the first year, as Figure 4 illustrates.<br />

Percentage of Time Spent<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

Months<br />

0-6<br />

7-9<br />

10-12<br />

13-18<br />

19-24<br />

Source: P/PV analysis of VFI data.

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