IMPACT ANALYSIS NEWBEES - NEWBEES' ACTIVITIES IMPACT ON PARTICIPANTS, COMPANIES, NEWBEES' EMPLOYEES, GOVERNMENT AND SOCIETY MARCH 2019 - IMPACT ...
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Impact analysis NewBees
NewBees’ activities impact on participants,
companies, NewBees’ employees, government and
society
March 2019
Prepared for:
Copyright 2019 Impact Institute. All rights reserved.
2 Version 2.3 March 2019 Authors Emmanouela Varoucha Paul-Simon Glade Sven Renon Adrian de Groot Ruiz About the Impact Institute The Impact Institute is a social enterprise with a mission to contribute to an economy that creates value for all. We do that by helping organizations to quantify, value and improve their impact on society. Impact Institute assists multinationals, SMEs, NGOs and governmental organizations in risk management and strategic decisions, by providing insight in their impacts and related risks and opportunities. www.impactinstitute.org Copyright 2019 Impact Institute. All rights reserved.
Executive summary
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• The integration of newcomers into society is a relevant societal
challenge. This analysis shows that NewBees’ innovative approach
to this creates strong value for society by helping newcomers
become part of Dutch society through actively matching them with
traineeships.
• The total value of the analyzed impacts from the activities of
NewBees in Zaanstad is estimated to be more than 1 million euros*.
• NewBees’ activities have a particularly strong positive effect on the
well-being of their participants. By professional participation,
people experience a notable degree of well-being due to general
work enjoyment, increased social bonds, change in their social
status, and increased feeling of autonomy.
• The overall impact for the government is also positive. As shown in
the graph on the right, the positive impacts outweigh the negative
financial impact of the subsidies that the municipality of Zaanstad
grants to NewBees and to companies that employ NewBees’
participants.
• The increased employment due to NewBees’ activities leads to
lower government expenditure on welfare benefits and higher
revenues from income taxes.
*The analysis looks at NewBees’ activities in the period of May 2017 to April 2018 and their effect for the two subsequent years. Long-term capital creation is an exception; this impact
looks at a long-term horizon (2020 and beyond).
Copyright 2019 Impact Institute. All rights reserved.
Content
4
Page
Introduction 5
Approach 8
Results 13
Copyright 2019 Impact Institute. All rights reserved.
Introduction Copyright 2019 Impact Institute. All rights reserved.
The results of this analysis show that NewBees’ innovative
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approach to integration creates societal value
• NewBees is an organization that believes in an inclusive society and
aims at helping newcomers become part of Dutch society. Through
guidance and active matching with traineeships, NewBees helps
newcomers on their way to integration and employment. This way
NewBees creates value for participants, as well as other stakeholders
like municipalities, companies, and society at large.
• The integration of newcomers into society is a relevant societal
challenge. However, implementing effective policies has proven to be
complex. Acquiring more insight into NewBees’ impact shows that
NewBees innovative approach creates value for society and helps
tackle the integration challenge. Moreover, it helps NewBees in
optimizing its societal value creation through the identification of key
impact drivers.
• This analysis integrates previous work and provides a detailed insight
in Newbees’ societal value creation by quantifying and monetizing
eighteen impacts for the stakeholder groups of participants,
companies, the government, and society-at-large.
Copyright 2019 Impact Institute. All rights reserved.
NewBees works towards participation and an inclusive
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society through the NewBees traineeship framework
• NewBees is an organization that works towards participation and an
inclusive Dutch society. Over 2016 and 2017 NewBees developed the
framework for the NewBees traineeship for matching refugees that
come to the Netherlands with a traineeship or volunteer position.
• There are eight steps in this framework. Firstly, the newcomer signs
up with NewBees and NewBees collects valuable information about
him/her (e.g. talents and ambitions and level of Dutch) using a
personal approach. This allows for a match with a fitting position.
When a suitable position has been found, an interview is conducted
with the newcomer and the company, after which, if successful, the
newcomer starts the traineeship. Additionally, a contract is signed
between all parties and a certificate is awarded to the newcomer,
upon completion of the traineeship.
• NewBees offers guidance and three workshops throughout the
traineeship. NewBees follows up with the company to evaluate the
traineeship and ensure that the experience is beneficial for both
sides. Finally, the newcomer is ready to join the labor market and is
referred by NewBees to partner employers, municipalities or Graphical representation of the eight-step process followed by NewBees to match newcomers to a traineeship or
volunteer position and prepare them for the labor marker. Source: NewBees.
educational institutions.
Copyright 2019 Impact Institute. All rights reserved.
Methodology Copyright 2019 Impact Institute. All rights reserved.
The impact pathway shows the impact of an organization
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• An impact pathway explains how an organization creates
added value for society, by comparing its activities to a Activity Output Result Outcome -
reference scenario. - Impact
• NewBees’ main activity of facilitating a traineeship for Reference Output Result Outcome
newcomers leads to outputs, which can be influenced by
the organization, such as the number of newcomers Activity or The direct The result
The
result of an of the
matched to a traineeship. These in turn lead to broader project that
the activity output
The effect
of the result
difference
between
results, which cannot be directly influenced by NewBees. company which can
be
which
cannot be
on society the
undertakes (people or outcome of
• Subsequently, several outcomes occur, which are broader influenced
directly by
influenced
by the
the planet) the activity
The and the
societal effects resulting from the original activity. The reference is
the
company
company
(on a
reference
the scenario
difference between the outcome of the activity with with which
systems
level)
respect to the reference scenario gives the final impact of you
compare
NewBees’ activities. the activity
Graphical representation of the impact pathway approach.
Copyright 2019 Impact Institute. All rights reserved.
NewBees’ activities are compared to a reference scenario
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in which newcomers look for work on their own
• The impact of NewBees is measured by comparing the
scenario in which a newcomer is matched with a
traineeship by NewBees in the municipality of Zaanstad
Activity of NewBees Output Results Outcome
with a reference scenario in which a newcomer is not
matched via NewBees and looks for work on his/her own.
NewBees facilitates
• By going through the steps associated with being a part of traineeship
- Impact
NewBees and comparing the effect of these steps with that
of the non-NewBees reference scenario, the impact of
Reference scenario Output Results Outcome
NewBees is derived.
• For example, matchmaking to a traineeship through
NewBees increases the odds that newcomers find Newcomer looks for
employment, thereby leading to an increase in their work on his/her own
income when compared to a reference scenario in which
newcomers look for work on their own. Graphical representation of the methodology used in this analysis to determine the impacts of NewBees.
Copyright 2019 Impact Institute. All rights reserved.The Integrated Profit & Loss method is used to measure
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and value NewBees’ societal impact
• Impact Institute’s Integrated Profit & Loss (IP&L) method
creates a comprehensive overview of the impact of a
company’s operations for various stakeholders such as
employees, suppliers, the government, society, and others.
• This method allows us to move past financial capital as the
primary indicator of value creation by also examining
manufactured, intellectual, natural, social, and human capital
value creation.
• In order to create a standard across different capital domains,
money is used to express the created value. Expressing the
different impacts in monetary terms enables a broad audience
to understand and compare these impacts.
• This analysis for NewBees has a specific focus on participants
Graphical representation of the two steps from a traditional financial profit & loss
and the government and two types of capital (human capital calculation to an integrated profit & loss.
and financial capital).
Copyright 2019 Impact Institute. All rights reserved.The scope of the analysis focuses on the impact of
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NewBees’ activities in Zaanstad
• The impacts are analyzed based on available primary and
secondary data.
• The scope of the analysis looks at NewBees’ activities in the
period of May 2017 to April 2018 in the municipality of Zaanstad
and their effect in the two subsequent years. In total, 115
newcomers were matched to a traineeship in that period in this
municipality.
• Long-term capital creation is an exception, as this impact May 2017 April 2018 April 2020
focuses on long-term effects (2020 and beyond).
• In order to facilitate the understanding of different impacts and Activities NewBees Long-term
Impact
A number of participants find a job Human Capital
to allow for comparisons to be made, all impacts are expressed
in euros. Scope in terms of time
Copyright 2019 Impact Institute. All rights reserved.Results Copyright 2019 Impact Institute. All rights reserved.
The results of the analysis are presented in a bubble chart
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and grouped per stakeholder
• The results of the analysis are presented in a bubble chart,
as shown on the right.
• The circles in the graph represent the relative size of the
analyzed impact per stakeholder (participants, companies,
NewBees as an organization, government and society). All
impacts that belong to the same stakeholder group are
shown in the same color.
• Circles above the horizontal axis represent positive
impacts, while those below it are negative.
• A differentiation is also made in the bubble chart between
impacts that have been analyzed and those that have not.
The impacts that have not been analyzed are shown as
Graphical representation of the size of the analyzed impacts (the larger the area of the circle, the larger the impact),
empty circles. Further, the ones that have only been the impacts that are not monetized and those that are out of scope of this analysis have a lighter color.
estimated but not monetized are shown in transparent
color.
• A detailed view of the bubble chart is shown on the next
page.
Copyright 2019 Impact Institute. All rights reserved.The results offer a deeper insight into the value that 15 NewBees creates for its most important stakeholders Copyright 2019 Impact Institute. All rights reserved.
NewBees creates positive overall net value and a 16
particularly strong positive impact for participants
• This analysis gives insight into the impacts
experienced by the participants of NewBees and the
government.
• The graph on the right shows that NewBees has a
positive overall impact on its participants.
• The positive impact of the activities of NewBees is
mainly driven by the time spent working during the
traineeship and the increased chance to find a paid
job.
• For the government the higher probability of gaining
employment means lower government expenditures
and higher tax income. The positive impacts
outweigh the expenditure of governmental
subsidies.
• For an overview and description of the different
analyzed impacts see Annex 2.
Copyright 2019 Impact Institute. All rights reserved.The well-being effects of employment form the most
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important impacts of NewBees activities for participants
• Employment creates well-being through an increased feeling of
autonomy, change in social status and stronger social bonds.
• The total well-being effect of employment is first calculated and then
split into four categories: social bonds, social status, autonomy and
general effect of employment on well-being. In total the three specific
categories account for approximately 30% of the total well-being effect.
• The well-being effect of employment from NewBees activities is driven
by matching the participants with relevant traineeships. This creates an
increased chance of finding a job after the traineeship.
• The well-being effect is based on the difference in well-being between
employed and unemployed people and is multiplied by the number of
matched newcomers compared to newcomers that look for work on
their own.
• The value of well-being per participant is measured in terms of life
satisfaction based on a statistical analysis using data from the European
Social Survey. Life satisfaction is expressed in monetary terms by using a
model that quantifies the available income that people use to increase
life satisfaction.*
* Based on Dolan, P. and Fujiwara, D. (2012). Valuing adult learning: Comparing wellbeing valuation to contingent valuation. Fujiwara, D. (2013). A general method for valuing non-market
goods using wellbeing data: Three-stage wellbeing valuation.
Copyright 2019 Impact Institute. All rights reserved.The government grants subsidies to NewBees, but also has
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lower expenses and receives more tax revenue
• The graph on the right shows that the overall financial impact for
the government is positive in this analysis. The sum of the
positive impacts is larger than the negative impact of the subsidy
that the municipality of Zaanstad grants to NewBees.
• NewBees creates a positive impact for the government by savings
on welfare payments and generating income tax revenue.
Additionally, there are savings on labor participation costs and
integration costs.
• The cost savings and increased tax income can be explained by
the increase in employment that the activities of NewBees create.
The savings on welfare payments and labor participation is
calculated by multiplying the increased employment with the
welfare and participation expenses. The tax savings are calculated
by summing all taxes that participants pay on their increased
income.
Copyright 2019 Impact Institute. All rights reserved.Local governments experience a strong positive impact
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through savings on welfare benefits
• The graph on the right shows the same impacts as on the
previous page but it specifically shows the impacts for the
municipality of Zaanstad and the national government.
• It can be observed that NewBees’ activities in the
municipality of Zaanstad mainly have an impact on the
local government due to savings on welfare benefits.
• For the municipality of Zaanstad, the activities of NewBees
are estimated to have created approximately 20 full-time
jobs for newcomers that would otherwise receive social
welfare, with respect to the reference scenario. Expressed
in monetary terms this leads to approximately 250
thousand euros savings in welfare benefits.
• Since welfare expenses by municipalities are financed by
the national government, the long-term budget received
from the national government will be decreased. This
means that, in time, the positive impact will shift from
municipalities to the national government.
Copyright 2019 Impact Institute. All rights reserved.There are nine main drivers of NewBees’ impact
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• The output drivers are a direct result of NewBees’ activities. The duration Output drivers
of the traineeship refers to the total months spent at the traineeship. The
duration of the traineeship creates well-being and together with the
Traineeship
quality of training this is expected to increase the probability of Duration of Quality of Number of matches with
employment. The number of participants refers to the number of the traineeship training participants participants’
interest
newcomers that do a traineeship through NewBees - the more
participants the higher the total impact of NewBees. If the traineeship
matches with the participant’s preferences, there is a higher probability Outcome drivers
to find a job as well as a higher increase in well-being.
• Outcome drivers cannot be influenced directly by NewBees. The Probability of
Probability of FTE of job
employment
probability of employment and job loss after the traineeship have a after
job loss after
traineeship
after
traineeship
traineeship
strong effect on the impact of NewBees. NewBees can influence these
impact drivers indirectly by improving the trainings and optimizing
traineeships to match the labor market. Impact drivers
• Impact drivers represent drivers that amplify the quantified impacts. They
include life satisfaction due to professional participation and the income Life Difference
difference between having a job and being unemployed. The first satisfaction
due to
between
income and
influences all well-being impacts for participants and the latter influences employment social welfare
human capital creation and all income related impacts. Life satisfaction
may be increased by matching with participants’ interests.
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Information, data, and drawings embodied in this document are confidential and are supplied with the kind
request that they will be kept confidential and not be disclosed to third parties without the prior written
consent of the Impact Institute.
Copyright 2019 Impact Institute. All rights reserved.Annexes Copyright 2019 Impact Institute. All rights reserved.
Annex 1. Assumptions and limitations
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• To calculate the impacts, a number of assumptions have been
made. The most important assumptions are listed below:
– An assumption with a strong influence on most impacts refers to
the increased probability of finding employment due to
NewBees’ activities. It is conservatively assumed that this
increase holds for the subsequent two years after the
traineeship. After that, the same probabilities as for non-
Newbees are used.
– When a participant finds a job, it is assumed they earn a
minimum wage and that their wage will not grow in the future.
– For the calculation of the financial benefits of companies, it is
assumed that a Newbee trainee is 70% as productive as a
minimum wage worker.
• Additionally, the following limitations apply:
– In this study a selection of impacts was analyzed, which means
that the results offer a partial view of the total impact of
NewBees.
– There was limited data available on wages paid to participants
who found a job and wage development of immigrants.
– Secondary sources and data do not always cover the period of
April 2017 - May 2018.
Copyright 2019 Impact Institute. All rights reserved.Annex 2. Definitions of analyzed impacts 24
Stakeholder Impact Description impact
This impact refers to the psychological value that is created through employment and
Well-being effect of employment extends past job satisfaction to also include the well-being derived from employment.
The effects of autonomy, social bonds, and social status are excluded.
Well-being effect of employment – autonomy Well-being effect of increased feeling of autonomy due to employment
Well-being effect of employment – social status Well-being effect of change in social status due to employment
All participants Well-being effect of employment – social bonds Well-being effect of increased social bonds due to employment
of the
NewBees
trajectory Well-being effect of cultural discrimination in the workplace Well-being effect due to cultural discrimination in the workplace
Long-term human capital creation through work experience Human capital creation due to work experience
Income increase of newcomers Salary/remuneration and social security
Underpayment of participants during employment after the traineeship. The traineeship
Underpayment
is considered as voluntary work and therefore is set out of scope for this impact.
Copyright 2019 Impact Institute. All rights reserved.Annex 2. Definitions of analyzed impacts 25
Stakeholder Impact Description impact
Financial benefits for the company by hiring a NewBee linked to the productivity of the
Financial benefits
All companies Newbees
and NGOs that
Subsidies from government Subsidies granted from the government for employing newcomers
cooperate with
NewBees
Financial costs Financial costs of hiring a NewBee linked to additional training and coaching
Government Reduction of healthcare expenditure Lower expenditure on healthcare due to employment
Savings on labor participation and integration costs Lower government spending on jobseekers and integration services
Income tax payments Lower government spending on benefit payments
Savings on benefit payments Higher government income due to income tax
Government subsidies to NewBees organization Subsidies granted to NewBees by the government
Government subsidies to companies Subsidies granted to companies for employing newcomers
Society Subsidies funds Subsidies donated to NewBees by funds
Copyright 2019 Impact Institute. All rights reserved.Annex 3. Definitions of estimated impacts 26
Stakeholder Impact Description impact
All
Language integration Accelerate linguistic integration process by having work
participants of
the NewBees
trajectory Human capital creation through NewBees training Human capital creation through the trainings of NewBees
*This impact is not included in the bubble chart because its value is zero. The reference scenario already incorporates the chance of newcomers finding a job without NewBees.
Copyright 2019 Impact Institute. All rights reserved.Annex 4. Impacts that were not analyzed
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Stakeholder Impact Description of impact
Privacy The privacy of the data that NewBees manages for the participants and companies
All
participants
of the Cultural integration Acceleration of cultural integration due to employment
NewBees
trajectory The value of labor that participants miss because they choose to pursue a traineeship through
Economic value of labor*
NewBees instead of getting a job elsewhere
All companies Employee retention Strength of connection between employer and employees
and NGOs that
cooperate with
NewBees Customer satisfaction for customers of companies How (un)satisfied customers are about the company
Well-being effect of meaningful work The well-being effect derived from having valuable work
Network building Life satisfaction due to new contacts
Employees of
NewBees
Development of employees General human capital creation NewBees employees due to work
Development due to cooperation with newcomers Development of employees due to cooperation with newcomers
*This impact is not included in the bubble chart because its value is zero. The reference scenario already incorporates the chance of newcomers finding a job without NewBees.
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