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Business Participation in Welfare-to-Work ❖ Case Studies

Prepared for the Business Forum on Welfare-to-Work: Lessons from America 20-21 January 1999, London

Case StudiesAmerican Airlines

EDS

Federal Express

Manpower, Inc.

Marriott International

McDonald’s Corporation

Pizza Hut

Salomon Smith Barney

United Airlines

United Parcel Service

Xerox Business Services

Business Participation in Welfare-to-Work:Lessons from the United States

American Airlines ❖ Page 1 ❖ Case Study

Business AreaOne of the world’s largest air-passenger carriers,with 80,000 employees

Benefits of Welfare-to-Work InvolvementCorporate citizenship motivated AmericanAirlines, a member of the government-initiatedWelfare to Work Partnership, to begin its wel-fare-to-work efforts. The airline also saw anopportunity to broaden its pool of applicants for entry-level jobs. The program has helpedAA hire quality employees, while reducing hiring time and probably hiring costs as well. These benefits drive AA’s welfare-to-work efforts.

Highlights of Welfare-to-Work InvolvementSince late 1996, American Airlines and affiliatedcompanies have hired 1,200 welfare recipients.AA hires welfare recipients mainly for part-timejobs in its airport operations, with starting payof about $7.50 to $8.50 per hour, and full-timejobs in its reservation operation, with startingpay of $7 per hour.

Rather than create in-house programs, AApartners with community-based non-profitorganizations to ready welfare recipients foremployment. AA does not see preparing welfarerecipients for employment as one of its corecompetencies.

Corporate and local staff roles. Corporate-levelstaff have developed a model for welfare-to-work activities and provide guidance to localoperations that simplifies implementation.Corporate staff also identify quality partnerorganizations and build networks with thoseorganizations to make it easier for local staff toaccess their services. Local staff build and sus-tain partnerships, recruit through them, anddetermine whether the partnerships are work-ing well.

AA applies the same hiring standards to welfarerecipients as it does to other applicants forentry-level jobs, and AA integrates its efforts tohire welfare recipients with the rest of local

recruiting responsibilities. Therefore, corporatestaff do not monitor local welfare-to-workefforts, although AA does periodically gatherinformation on the number of welfare recipientshired.

Relationships with partners. American Airlinespartners with organizations that have a reputa-tion for quality services in readying welfarerecipients for work. AA sets program qualitystandards and provides feedback about its satis-faction with outcomes. Local AA staff workclosely with partners to assure that they under-stand AA’s hiring standards, such as timeliness,communication skills, and attitude and behav-ior on the job. AA staff provide informationabout job openings and needed skills, partici-pate in developing criteria for successful pro-gram completion (e.g., attendance, timeliness,attitude, and dress), give input on programdesign, participate in program activities such aspresentation and interview skills development,and provide workplace tours and short-term jobshadowing.

Local role, and support of retention andadvancement. Supervisors are responsible for retention of employees. The airline has notdeveloped specific retention services for welfarerecipients, either in-house or through partnerorganizations. Instead, because AA recruitsmany entry-level employees from non-traditionalbackgrounds, it has sought to offer support forsupervisors and coaching for all entry-levelemployees. The airline has also contracted withCeridian, a for-profit employee assistance firm,to provide a resource-and-referral service for allemployees. The service provides high-qualitysupport in dealing with a wide range of work/life issues. It is designed to meet the needs ofentry-level employees in particular, and it pro-vides Spanish bilingual/bicultural services.

Because AA’s airport agent and reservation jobsare complex, the airline provides entry-levelemployees with four to six weeks of orientationand training in technical and customer serviceskills. In addition, a less-intensive

American Airlines (AA)

C A S E S T U D I E S

American Airlines ❖ Page 2 ❖ Case Study

Highlights of Welfare-to-Work Involvement continued

supervisor-employee relationship for new reser-vations employees makes it possible for super-visors to listen in on calls, coach, and rolemodel. In some locations, AA is testing the ideaof having skilled co-workers provide role mod-eling and mentoring to new employees.

Future TrendsAmerican Airlines involvement in welfare-to-work is dependent upon hiring needs and tightentry-level labor markets. The company expectsto maintain or expand its involvement in wel-fare-to-work during the coming year.

Challenges and Promising ActivitiesBecause lack of transportation limits the employeepool, it is a major challenge for employers withoperations at airports. In Dallas/Fort Worth, AAis organizing a coalition of employers to addressthis challenge. However, the cost of increasingthe availability of transportation is a seriousconstraint for airport-based firms.

Other than this effort, AA has rarely partici-pated in intermediary organizations such as a Regional Employment Board or WorkforceDevelopment Council. However, the airline hasreceived information from intermediaries on thequality of potential partners’ services, therebymaking it easier for AA to select its partners.

Having observed that AA employees often needassistance with non-work needs, the airline has contracted with Ceridian to provide a resource-and-referral service similar to the AssociatesResource Line Ceridian developed for MarriottInternational. (See Marriott case study.) Theservice provides many of the benefits of goodcase management.

However, AA notes that the organizations withwhich it partners, other than Ceridian, tend toprovide discrete services, rather than meet anemployee’s overall needs. AA suggests that ifthese providers of specialized services formed a

network, they could better integrate their effortsto meet all of an employee’s needs.

Key Lessons• AA’s experience with service providers has

been surprising. “The extent to which serviceprovider organizations have been cut off from companies in the past has really beeneye-opening,” says Mary Ann Lynch, AA’sManaging Director for HR Policy andEmployee Services. “They’ve been thrilledthat AA reaches out to them.” Lynch notesthat new measures of success for agenciesreceiving public funding, such as the qualityof jobs program participants secure and theextent to which they retain jobs, are strongincentives for service providers to work with employers.

• A portable credential is useful to employees,AA, and industry-wide. AA’s Travel Academytraining credentials participants for good jobs.AA has licensed the program to job-trainingprograms and to secondary schools for use inschool-to-career programs. By doing so, AAexpands the pool of candidates for its jobsand provides benefits for other travel servicesfirms, including small and mid-size employ-ers.

Contact PersonMary Ann Lynch, Managing Director, HR Policyand Employee Services, (817) 967-1433

American Airlines (AA)


EDS ❖ Page 1 ❖ Case Study

Business AreaA professional services firm that provides computer systems and technology services,business process management, managing consulting, and electronic business; 110,000employees, including 75,000 in the United States and over 9,000 in the U.K.

Benefits of Welfare-to-Work InvolvementEDS’ goal for its welfare-to-work program is to increase shareholder value by combating the critical shortage of information technologylabor, reducing hiring and training costs, andextending the firm’s corporate citizenship,according to Laura Gragg, program manager for EDS’ Government Partnership Plan. Shesays that the firm’s welfare-to-work efforts,which have strong screening and training com-ponents, have provided a source for technicallyskilled employees. According to internal evalua-tions, welfare recipients who participate in EDS-sponsored training programs and are then hiredby the company are more settled in their workenvironment than other new, entry-levelemployees. They are also more committed totheir work, quicker to grasp new concepts, andmore motivated to try new things.

Data from the EDS-sponsored AdvancedTechnology Program (ATP) show that the pro-gram achieves substantial savings for the firm.Almost three-quarters of the savings reflect thedifference between entry-level and average com-pensation, with the balance resulting aboutequally from lower recruiting and training costsand from the use of public funds to underwritetraining.

EDS’ success in using public funds for trainingwelfare recipients has been influential in itsrecent decision to substantially expand thisstrategy. Through its new Government Partner-ship Plan, EDS plans to seek all sources of pub-lic funding that its employees are eligible for,use those funds to underwrite wider training,and apply the savings to expanding theemployee development program.

Highlights of Welfare-to-Work InvolvementEDS has partnered with other organizations todevelop award-winning programs providingtechnical training and mentorship services.

Technical training for welfare recipients.The Advanced Technology Program (ATP) is an award-winning partnership of EDS, other employers, three community colleges, and state and local organizations that provide support services. The program is limited to welfare recipients and receives federal, state,and local funding through Michigan’s work-force development boards.

ATP’s intensive training combines classroomand on-the-job learning. Following carefulscreening, a five-week preparation phase pro-vides introductory technical/professional skillstraining. Next, an eight-week job-skills develop-ment phase provides technical training in one of several employment tracks and continuedtraining in professional skills. Finally, participantsenter a four- to five-week internship, with bothclasses and on-the-job training. ATP participantsmust put in 55 hours a week for 18 weeks.

EDS hires participants who complete the pro-gram successfully. The firm has hired systemadministrator associates, business analysts, andhelp-desk staff from ATP. Incomes in these posi-tions are high enough for many employees toend all public assistance, including food stampsand Medicaid, within a year of employment.

Support for retention and advancement. Whenhiring a welfare recipient, EDS provides formalsupport from supervisors and informal supportby co-workers. A best-practice example is theaward-winning Work First program, operatedby EDS and Oakland Community College. Theprogram provides a mentor-manager orientationto assist welfare recipients with work transitionand workplace navigation skills.

EDS sees staff development as the key toimproved retention. The firm helps staff developindividual plans and provides a range of train-ing and tuition-reimbursement options.

EDS




Relationships with partners. Strong partnerships,careful screening, and extensive training are key to EDS’s welfare-to-work program. Overthe years, the firm’s local staff have developedsignificant partnerships with Oakland (Michigan)Community College, The Cornerstone Partner-ship in St. Louis, and Detroit’s Focus: Hope.EDS has invested substantial resources intodeveloping training at these organizations, providing technology, technical assistance, and curriculum design/development. It alsoloans executives, such as the chief of informa-tion for Focus: Hope, to the training agencies.

EDS recently donated a computer lab to theDallas Urban League, which will use it for pre-employment software training. EDS will workwith Urban League staff to prepare welfarerecipients to enter the workforce. In addition,EDS will define and disseminate informationabout job titles and skill sets for open positionsand help the Urban League pursue continuousimprovement activities.

EDS seeks to partner with organizations thatwill recruit welfare recipients who are potentialemployees and assist them with overcomingbarriers to employment, such as the need forchild care and transportation.

Expanding activities. EDS is rolling out anextensive new corporate human resources cam-paign that seeks to increase the employment ofwelfare recipients. A recently implemented, morecentralized corporate structure has provided theopportunity to expand its welfare-to-work effortsand leverage its local experience. Under theleadership of the firm’s new Executive VicePresident for Human Resources Worldwide, the Government Partnerships Plan will helpEDS retain and upgrade the skills of its work-force, employ more welfare recipients, andunderwrite these activities with public funds.

Corporate staff have identified at least sevenfederal and state training subsidies, tax incen-tives, and hiring incentive programs available to local operations. Staff are leading efforts toenable the firm to identify current employeesand new hires who are eligible for subsidies.They are also training managers to identify jobcodes for which welfare recipients could behired, determine core competencies for eachposition, and apply sophisticated recruitingmethods to identify quality candidates.Corporate staff will also design training for wel-fare recipients.

Goals for local participation in hiring, retaining,and developing welfare recipients will be set bycorporate headquarters. Local staff will developtwo-year implementation plans and providequarterly progress reports to corporate staff.Each EDS unit will identify a project leader,identify a number of new positions for the ini-tiative and determine the types of training thoseindividuals will receive.

Challenges and Promising PracticesDemand for employees with information technol-ogy skills will remain strong for the foreseeablefuture, even if unemployment increases gener-ally. This makes recruiting good job candidatesa key challenge. Through strong partnershipsand high-quality programs, EDS has had suc-cess in recruiting highly motivated and techni-cally adept individuals who are receivingwelfare benefits and training them.

To meet its business needs and to promote localeconomic development, EDS is reviewing theopportunity to develop seven customer call cen-ters close to low-income communities. Staffingthese centers is a challenge. Typical call centeremployees are 18 to 24 years old, an age groupwith relatively high rates of unemployment inlow-income communities.

EDS



Key Lessons• Job-focused pre-employment training is

effective in developing technical staff for EDS.The award-winning Advanced TechnologyProgram meets the needs of welfare recipientsand EDS. However, a large amount of pre-employment training can be difficult to carryout under laws and regulations that stress awork-first approach.

• EDS has used partnerships to provide effec-tive technical training. In partnership withemployers, community colleges and commu-nity-based organizations are effective plat-forms for high-quality technical training.

• The success of EDS in training welfare recipi-ents holds promise for broader workforcedevelopment efforts. The GovernmentPartnership Plan is a bold strategic effort tomake multi-faceted connections between pub-lic resources and business objectives whilealso addressing issues of recruitment andretention of non-traditional labor pools. It willrequire both flexibility on the part of publicfunding sources and the ability of EDS to bal-ance its own objectives with public policies.

Contact PersonLauren Gragg, Program Manager, (972) 604-2212

EDS


Federal Express ❖ Page 1 ❖ Case Study

Business AreaOne of the largest express transportation com-panies, providing domestic and internationaldelivery services with about 140,000 employees,including 5,000 in the U.K.

Benefits of Welfare-to-Work InvolvementFedEx began its welfare-to-work initiative in1997. While government tax credits initially ledFedEx to hire welfare recipients, the firm hasidentified four additional important benefits:reduced hiring time, improved quality of newhires, the ability of former welfare recipients tostay on the job and advance in employment atFedEx compared with other entry-level work-ers, and the increased loyalty of new employeesto FedEx.

Highlights of Welfare-to-Work InvolvementFedEx is involved with Families First, a Memphisinitiative that is part of Tennessee’s welfare-to-work effort. The FedEx/Families First Partner-ship involves state employment and humanservice agencies, local governments, the localprivate industry council, community colleges,education and training providers, and other ser-vice providers. The program is designed to meetthe needs of both employers and job seekers.

Within the past year, FedEx has hired approxi-mately 260 Families First participants, placingthem in either warehouse or clerical jobs. Mostare employed as cargo handlers at a base rate of $8.67 per hour.

Relationships with partners. FedEx worksclosely with training organizations that preparewelfare recipients for employment. These orga-nizations provide training in job readiness andother soft skills, as well as specific skill trainingfor FedEx jobs. The training stresses the impor-tance of taking initiative and seeking opportuni-ties beyond entry-level work. FedEx attributesthe program’s positive outcomes to the trainers’pre-employment interaction with and orienta-tion of new employees.

FedEx recruiters meet regularly with trainersand program participants prior to employment.The meetings help trainers incorporate FedExstandards for instruction and curriculum intothe program. FedEx recruiters spend one-on-onetime with participants, helping them becomefamiliar with one another, an aspect of the pro-gram that eases the transition to employment.

Support for retention and advancement. FedExoffers “flex time,” trains managers in imple-menting flexible schedules and other work/lifeissues, and has many support groups to helpemployees balance work and family life. Formerwelfare recipients receive the same benefitspackage as other employees, including medical,dental and vision-care insurance, and tuitionreimbursement. For the last three years, WorkingMother magazine has selected FedEx as one ofthe 100 Best Companies for Working Mothers.

Challenges and Promising ActivitiesEntry-level work at FedEx is demanding andturnover is high. Most, if not all, entry-levelpositions filled by Families First participants arepart-time. However, retention rates for FamiliesFirst workers are better-than-average for thefirm as a whole due to the pre-employmenttraining participants receive and the substantialbenefits FedEx provides to its part-time workers.

Transportation and child care present consistentdifficulties for new employees. While reimburse-ment for child care is available from the govern-ment, FedEx personnel and partner organizationsdeal with short-term or last-minute crises as theyarise. The close relationship between FedEx andits partner organizations makes it possible toaddress crises and system-level problems.

To ensure the integrity and quality of pre-employment training, FedEx works closely withtraining staff and program participants. FedExhas invested considerable time and effort in set-ting standards and policies, designing curricula,and informing instructors about FedEx jobopenings and skill needs. Moreover, FedExworks to ensure that staff approach participants

Federal Express (FedEx)


Federal Express ❖ Page 2 ❖ Case Study

Challenges and Promising Activitiescontinued

as individuals: it cautions instructors and super-visors not to “treat participants as a number,[because] they feel it.”

Future TrendsFedEx intends to expand its welfare-to-workefforts beyond its Memphis hub. It is contactingits recruitment centers nationwide to planrecruitment and hiring strategies. Centers reporton the number of welfare recipients employedto date, as well as plans for a local welfare-to-work effort. FedEx encourages the recruitmentcenters to seek partner organizations, and theMemphis office provides guidance to centersthat wish to establish new local welfare-to-workprograms. FedEx expects its need for entry-levelworkers to continue, making this investmentworthwhile.

After one year of operation, the Memphis officehas identified several ways to strengthen its wel-fare-to-work program and support employees’transition to work. The office plans to establish avoluntary mentor program for new hires, in theexpectation that mentors will ease the adjustmentto work, reduce the adjustment period, and helplower turnover. FedEx has also established a pilotprogram in which people seeking GEDs are hiredfirst in temporary positions; after receiving GEDs,they are considered for permanent positions. Thefirm is also arranging for Families First partici-pants to have a quality, accessible child care.

Key Lessons• FedEx’s welfare-to-work program depends

upon communication and commitment.Strong, constructive, working relationshipsamong FedEx human resources staff andmanagers, the training staff, and other part-ners involved in the Families First initiative

are essential. These relationships enableFedEx to communicate expectations clearly,provide feedback on quality, and guideimprovement of pre-employment training and orientation.

• FedEx provides substantial, consistent inter-nal support. Maintaining these relationshipsrequires support within FedEx and consistent,thoughtful effort over time. Benefits to the firmmake this substantial investment worthwhile.

• To employ individuals with significant barri-ers, FedEx needs strong partners. Workershired through Families First often face com-plicated barriers to employment, and thosewho work with them need to be committed to seeing them succeed.

• FedEx has found that involvement frequentlyexpands to new services and supports. Notonly does FedEx expect commitment to suc-cess from supervisors and trainers, the firm is demonstrating it by piloting mentoring pro-grams and through its work on GED andchild-care activities.

Contact PersonWillie Payne, Senior Recruitment Specialist,(901) 797-5824

Federal Express (FedEx)


Manpower, Inc. ❖ Page 1 ❖ Case Study

Business AreaThe world’s largest temporary-help and staffingfirm, with 2 million employees, including about33,000 in the U.K.

Benefits of Welfare-to-Work InvolvementManpower’s core business is to help otheremployers meet short- and longer-term staffingneeds. Manpower specializes in office, lightindustrial, and professional technical jobs.Technical jobs are the firm's fastest growing area.“Welfare-to-work makes good business sensebecause there are many jobs going unfilled andmany candidates who want to work,” saysManpower CEO Mitchell Fromstein.

Highlights of Welfare-to-Work InvolvementManpower has employed welfare recipients formany years and doesn’t distinguish betweenwelfare recipients and other job seekers.Manpower got involved with welfare-to-workas a natural extension of its business and out ofa sense of civic responsibility.

Manpower is a temporary employment agency,but it provides a vehicle for welfare recipients to secure permanent jobs. About 54 percent ofManpower’s temporary placements in theUnited States lead to permanent job offers.

Building the system. Manpower is a foundingmember of the Welfare to Work Partnership andlocal partnerships throughout the United States,including those in Nashville, TN; OrangeCounty, CA; Milwaukee, WI; Granite City, IL;and Detroit, MI. In addition, Manpower’s expe-rience as an intermediary between employersand job seekers and its systems are a significantresource for the firm’s welfare-to-work efforts.Manpower’s credibility with and knowledge ofemployers extends the reach of existing place-ment efforts and can enhance the opportunityindividuals receiving welfare have to achievepermanent employment.

In Orange County, Manpower partners with Curtis& Associates to help participants in California’sGAIN (Greater Avenues of Independence)Program move from welfare-to-work. Curtis

& Associates recruits welfare recipients andManpower trains and employs them. EdwardRamirez of Curtis & Associates says thatManpower personnel provide a great deal ofmentoring and motivation, reducing the stressof seeking employment.

In Louisville, Kentucky, Manpower has an officeat the Wiggins Family Investment Center. Thisone-stop shopping approach makes it easy forwelfare recipients to access social services,including a wide range of job training and assis-tance in overcoming barriers to work.Manpower provides job-seekers with assess-ments of interest and skill. It also offers trainingin soft skills, such as punctuality and communi-cation, and computer training on more than 350software packages.

The “reverse funnel.” Manpower’s employmentprocess efficiently interviews, evaluates, trains,and matches welfare recipients with jobs. Unlikethe typical “funnel-like” hiring process, withmany candidates seeking one job, Manpower’s“reverse funnel” approach matches each welfarerecipient to one of the many temporary jobsManpower seeks to fill. The firm also provides awide range of training services before and afteran individual goes to work through Manpower.

Corporate role. Manpower’s corporate staff pro-vide research on worker assessments, job train-ing strategies, labor market trends, and customerdemands. Corporate staff have developed inno-vative assessment and training strategies.

Local role. Local Manpower staff develop rela-tionships with employers, enter into governmentcontracts, and build relationships with commu-nity organizations in order to secure job orders,funding for training, and recruitment assistance.

Relationship with partners. Manpower hasestablished partnerships with city governments,community colleges, and community-basedorganizations in Seattle, Philadelphia, New York,San Francisco, and Nashville. Manpower’s roleis to provide services that enable welfare recipi-ents to meet Manpower’s prevailing standardsfor temporary employees. The firm bases its

Manpower, Inc.




efforts on continuing skill building, leading to acareer path rather than simply a job. To achievethis objective, Manpower combines work experi-ence, upgrade training, and retention assistance.

In Nashville, the firm won a contract to providetraining services to welfare recipients who aremoving to work through the city’s welfare-to-work program. Public funding produces as muchrevenue for Manpower’s welfare-to-work train-ing as its other training activities, according toDebra Richardson, Manpower’s NashvilleTraining Manager.

Manpower has developed numerous relationshipswith non-profit, faith-based, and governmentorganizations as part of its welfare-to-workefforts. These partners provide recruitment services and assist participants to overcome barriers to employment. The most importantcharacteristics of successful partners are flexibil-ity and their capacity to help individualsquickly overcome child-care, transportation,and other barriers.

Services Manpower provides. Manpower’s welfare-to-work partnerships are designed toprepare welfare recipients for entry-level jobs,with skills especially in call centers, data entry,office skills, and information technology.Manpower brings four major assets to thesepartnerships: assessment, skills training,employer credibility and access, and upgradetraining.

Assessment. Manpower’s methods of matchingjob seekers with job openings are the same forall candidates. Assessment procedures aredesigned to “screen in” job-seekers for a rangeof jobs rather than screen them out from jobs.Assessment activities frequently include theproduction of work samples and in-depth inter-views on work history, job preferences, and skills.

Training. Manpower has created a video-based“Putting Quality to Work” program that illus-

trates the use in work situations of “soft skills”such as punctuality, accepting supervision, takinginitiative, and treating co-workers as customers.The firm’s Skillware program provides hands-on experience with the newest office software. Aself-paced computer-based training tool thatuses work simulations, Skillware can developoffice job-related software competence in eighthours or less, and provides training in wordprocessing, database, spreadsheet, electroniccommunication, and data entry. In addition,training in Good Manufacturing Practices andtraining in high-demand soldering skills, isavailable for those seeking light manufacturingjobs.

Employer credibility/access. Manpower hasextensive relationships with employers, well-positioning it to open the doors to jobs for welfare recipients. Manpower’s reputation forsuccess in matching the person and the job pro-vides credibility to welfare-to-work partnershipsin which it participates. Within those partner-ships, Manpower reassures firms that employeeswill have the necessary skills and characteristics.Manpower also benefits welfare-to-work part-nerships with its Quality Performance program,which monitors job-placement matches and pro-vides training to continuously improve the extentto which it meets employer needs and includesappraisals of staff performance and job skillassessment validity.

Support for retention and advancement.Successful completion of training is factored intoManpower’s job-matching process, increasing itsvalue to employers. Manpower is beginning tointegrate training with placements by developinginternships and work assignments based on theskills an individual seeks to develop. In addition,Manpower provides all employees access toTechTrack—individualized, self-based trainingin over 1,000 networking and programmingtechnologies that leads to certification. Thistraining makes it possible for some welfare-to-work participants to get lucrative information

Manpower, Inc.




technology jobs, especially over the longer term.TechTrack is already available through anInternet site, and Manpower plans to make thefull range of its training available on-line.

Challenges and Promising PracticesManpower’s research shows that the U.S. econ-omy is strong and that the likelihood is verysmall that unemployment rates will increasesubstantially in the foreseeable future. However,in a downturn, it is likely that the last hired willbe the first fired. Because so many welfarerecipients have gotten jobs recently, a significantnumber might lose jobs. Public funding for outplacement and counseling services mightbecome very important.

Key Lessons• Manpower helps smaller businesses manage

hiring risk. By providing a “try before youbuy” service, Manpower reduces the riskinvolved in hiring, especially for smaller firmsthat lack a human resources staff.

• Manpower has developed tools that fit welfare-to-work efforts. Because it benefitsthe client firm where employees are placedand the job seeker, Manpower has developedhigh-quality assessment, training, and job-matching tools and strategies. These havegreat value in supporting candidates’ desireto retain employment and gain promotions.

• Manpower’s partners provide support services. Because Manpower doesn’t offerassistance in overcoming non-work barriers toemployment, it is building partnerships withorganizations that can provide that assistance.

Contact PersonSharon Canter, Director of StrategicInformation, (414) 906-6253

Manpower, Inc.


Marriott International ❖ Page 1 ❖ Case Study

Business AreaA worldwide operator and franchiser of hotelsand senior living communities, with 117,000employees, including 2,000 in the U.K.

Benefits of Welfare-to-Work InvolvementAmong welfare recipients who participate inMarriott’s Pathways to Independence program,retention rates and job performance levels arefar higher and their loyalty to the firm is greaterthan entry-level employees in general. Theretention rate is 65 percent after one year versus50 percent for entry-level employees who didnot go through the Pathways program.

“We have been able to get employees who hitthe ground running,” says Janet Tully, a formerdirector of community employment and trainingfor Marriott. “We knew that they would be welltrained. That they have been so loyal is some-thing we really did not expect.”

The Pathways program also provides access to anew labor pool, reduces hiring costs, and givesMarriott wonderful publicity, according to FredKramer, director of community employment andtraining.

Marriott’s pioneering Associate Resource Line(ARL) provides resource and referral informa-tion designed specifically to meet the needs ofentry-level employees. The ARL helps employ-ees maintain high-quality job performance,reduces turnover, and reduces associated costs.It has yielded a 4-to-1 return on investment,with 23 percent of users reporting reducedabsenteeism, 34 percent reporting being less dis-tracted, 20 percent noting improved relation-ships with co-workers, and 17 percent sayingthe service meant they did not have to quit theirjobs, according to Marriott.

Highlights of Welfare-to-Work InvolvementThe Pathways to Independence programenables Marriott to hire qualified employees;the Associate Resource Line helps reduceturnover.

Pathways to Independence highlights.Pathways to Independence began in 1991. In

1998, Marriott ran the program at 28 hotels inthe United States. Success in the program guar-antees a job at Marriott or another hotel.Marriott’s data show that typically 95 percent ofprogram participants secure jobs.

In 1997, 220 welfare recipients participated in the program. In 1998, its best year ever,Marriott expanded participation to over 500people and expects to have at least as many participants in 1999. With contracts through theyear 2000 in hand, Marriott expects to expandthe Pathways program.

Associate Resource Line highlights. The ARLhas widespread use throughout Marriott. It isavailable to entry-level employees in general,including welfare recipients hired through thePathways program. Data for 1996 indicates that44 percent of calls relate to child-care or parent-ing issues, 9 percent relate to elder care issues,27 percent concern personal crises (e.g., hous-ing, immigration, domestic abuse, custody,harassment, child abuse, domestic crises), and20 percent involve counseling. The ARL has amultilingual capacity; in 1996, 13 percent ofcallers did not speak English.

Pathways to Independence Program operations.A six-week training program combines 60 hoursof classroom training with 120 hours of on-the-job occupational skills training. The program isdesigned to build relationships between traineesand Marriott staff, who conduct classes and skilltraining. Marriott staff play a much more signif-icant role in carrying out the Pathways programthan is common for welfare-to-work programs.Each class of 15 welfare recipients involves 15 to40 Marriott Associates.

The Pathways program focuses on soft skills.Marriott has found that the program’s success inhelping participants develop a positive self-imageincreases their willingness to see themselves ina positive work role and to be held accountablefor their actions. Training topics include cus-tomer service, teamwork, accepting and givingcriticism, and career development opportunitiesat Marriott. The program also teaches life skills





(e.g., personal finance and how to apply for theEarned Income Tax Credit, a federal income sup-plement).

Marriott contracts with government agencies for funding that offsets a substantial portion of program costs.

The role of partners. Marriott develops partner-ships with government funders and community-based organizations on a city-by-city basis. Amongits partners are Jewish Vocational Services,Goodwill, and Job Corps. Partners are the exclu-sive referral source for the Pathways program.They pre-screen candidates, using proceduressimilar to typical hotel screening, such as checkingfor substance abuse, literacy, and a willingness towork. Some partners understand Marriott’s workenvironment very well. In at least one case,Marriott accepted into Pathways 94 percent ofwelfare recipients referred by a partner. Marriott’sgoal is to accept 50 percent of referrals; it consid-ers that an acceptance rate of 25 percent or less isa sign that the partner needs to improve itsunderstanding of Marriott’s employee require-ments and program standards.

Partners provide a variety of other services aswell. The best partners provide training in lifeskills, behavior, and self-esteem; case manage-ment services before, during, and after the pro-gram; support for overcoming barriers toparticipation in the training (e.g., by conveningtrouble-shooting sessions among the participant,the case manager, and Pathways program staff);and services to encourage job retention andcareer development.

Roles of corporate and local staff in thePathways program. Corporate staff developedthe Pathways program and the ARL, market theprograms to hotels, and monitor quality. In regardto Pathways, corporate staff modify the curricu-lum to keep it current with Marriott workprocesses, set up contracts with funding sources,train hotel staff to host the program, and liaisonbetween local hotel staff and the funding source.

Over time, corporate staff reduce their role frommajor responsibility to troubleshooting.

Local staff participate in the program voluntar-ily but tend to continue their involvement oncethey see the benefits. They run the classroomaspects of the program. Local staff also super-vise a job-shadow component of Pathways. Atsome hotels, Marriott’s human resources staffsupervise the program and serve as job coun-selors during welfare recipients’ transition toemployment.

Marriott provides partners with informationabout job openings and needed skills and inputinto policies and program design that improvespartners’ capacity to help participants meetMarriott’s standards. Marriott staff also workhard to assure that partners share the firm’sexpectations, and they work with partners’ staffon continuous improvement of the programs.

Marriott considers that the best measure ofPathways’ value is the number of hotelsinvolved. For contract reporting, Marriott alsotracks data on participation, including the num-ber of welfare recipients who attend the firstday of class, the number who graduate, thenumber who become employed, and the num-ber retained for three and six months.

Support for retention and advancement. TheARL reflects Marriott’s business strategy: tohave the most advanced human resources practices possible. According to a JFF case study by Basil J. Whiting, the ARL providesround-the-clock assistance using a case-managerapproach. Employees can get help with any personal problem that troubles them or a familymember. The ARL also provides managers withadvice on how to help a subordinate. ARL staffspend enough time, often over an hour, to get to know the employee and the details of theproblem, to research the problem, to identifyresources that can help overcome it, and toattempt to contact the resource provider beforereferring the employee. When the employee and ARL staffer agree that the matter is satisfac-torily resolved, the case is closed. Within 30





days, a Quality Assurance Team checks on the results and the employee’s satisfaction. Todevelop the ARL, Marriott contracted with ThePartnership Group, which has merged withCeridian Performance Partners and continues toprovides the ARL services.

Marriott provides a range of family-friendlybenefits that have led in its inclusion amongWorking Mothers magazine’s 100 Best Companiesfor Working Mothers for the last eight years. Thefirm provides benefits to all entry-level employ-ees who work over 25 hours per week, such aspaying 65 percent of health insurance premiumsand offering information about and access to avariety of child-care programs and assistance.

After hiring Pathways program completers,Marriott assigns responsibility to their immedi-ate supervisors for providing mentoring andproblem-solving assistance. Marriott alsostresses the opportunities entry-level workershave for promotions. “Examples of peopleclimbing our corporate career ladder are allaround,” says Tully. “It makes our welfare-to-work employees realize they can get some-where.”

Key Lessons• Support from the very top is key to the suc-

cess of Marriott’s welfare-to-work program.Pathways to Independence requires a greatdeal of work and complete commitment fromthe company.

• Marriott has found the need to overcomestereotypes about welfare recipients. The firmhas had to address this with some of itsemployees in order to successfully implementPathways.

• Marriott’s strategy of being the industryleader regarding benefits drove developmentof the Associate Resource Line. This strategycreated the conditions that made innovationpossible. Notably, several firms have adopteda resource-line service as an entry-levelemployee benefits

• Promotion from within is a key aspect ofMarriott corporate culture. Promotion fromwithin increases entry-level employee com-mitment, increasing the quality of customerservice. It makes it possible for Marriott tocapture the value its investments in entry-level employees.

• Partners are important to welfare-to-workprograms even when the firm’s staff carry outmost activities. Partners recruit, screen, andprovide support services to overcome welfarerecipients’ barriers to employment, especiallythose that are not directly related to work,such as child care and transportation.

• The quality of partners’ services occasionally has been a problem. “To ensure quality is con-tinuous in programs, Marriott depends uponopen two-way communication with partners,”says Kramer. “Partners need to be aware ofMarriott’s expectations and what they have todo to meet them. In turn, Marriott mustknow its partners’ needs and expectations.”

Contact PersonFred G. Kramer, Director, CommunityEmployment and Training, (301) 380-8583



McDonald’s Corporation ❖ Page 1 ❖ Case Study

Business Area A quick-service restaurant business with over a million employees, including 250,000 in theUnited States and 36,500 in the U.K.

Benefits of Welfare-to-Work InvolvementThe major benefits to McDonald’s of its welfare-to-work programs are greater retention, higherquality employees, and higher productivity.While the programs have not reduced hiringcosts, they have sometimes reduced the time it takes to hire entry-level employees.

Highlights of Welfare-to-Work InvolvementMcDonald’s restaurants provide easily accessibleemployment to welfare recipients. About 20,000of the firm’s employees were receiving welfarewhen hired, an unplanned outcome of the firm’srecruitment and hiring activities. McDonald’sconsiders welfare recipients a valuable pool ofpotential employees for its many lower-wage($5.75 to $5.90 per hour), entry-level jobs.

The firm created its welfare-to-work program toincrease the benefits of hiring welfare recipientsfor both its restaurants and their employees.McDonald’s provides training that makes newemployees more productive and increases thequality of their work. It also provides an oppor-tunity for employees to get better jobs, either atMcDonald’s or with other employers. McDonald’shas programs in New Orleans, Minneapolis,South Florida, Chicago, and Hartford and isexpanding its efforts to hire and train welfarerecipients.

Because 85 percent of McDonald’s restaurantsare owner-operated, the growth of the firm’swelfare-to-work program is determined bystore-owners’ perceptions of its benefits. Theprogram holds lessons for other franchise busi-nesses and for efforts of large firms assistingwith small ones.

Corporate role. McDonald’s corporate staffencourage restaurants to participate in the wel-fare-to-work program by making it easier to doso. Corporate staff help restaurant managers

develop partnerships, provide them with sup-port services, and design training. However,corporate staff do not set goals or monitorrestaurants’ efforts to employ welfare recipients.

Corporate staff meet with high-level governmentofficials to pave the way for good working rela-tionships between restaurants and local agencies.The corporate message to government agenciesis “make it simple.” Corporate staff have alsocontracted with another company to processapplications for tax credits the firm receives forhiring welfare recipients. In addition, the firmemploys regional retention managers who helprestaurant staff improve training and retention.

McDonald’s has created an employee-develop-ment curriculum based on its school-to-workprogram. The beginning level has modules oncustomer service, business communication,business math, job readiness, and business systems—skills applicable to many retail jobs.To emphasize opportunities to move up a careerladder, the curriculum has more advanced levels. Within about a year of starting work,employees can train for McDonald’s jobs paying$8 to $9 per hour, sometimes with benefits.

Local role. To meet local employment needs,restaurant managers develop partnerships withservice providers. Some restaurants have desig-nated a training manager as well. The basis forthese local efforts are the framework, curricu-lum, and networks supplied by corporate staff.For the many owner-operated McDonald’s,these resources represent a significant corporatecontribution.

Relationships with partners. McDonald’s storeswork with a variety of partners. For example,members of the Minnesota Retail MerchantsAssociation have agreed to use the McDonald’straining to prepare employees for work in theirown establishments. Jewish Vocational Servicesteaches the curriculum to welfare recipients,and McDonald’s has the first opportunity toemploy them when they complete the training;if McDonald’s doesn’t offer them jobs, othermembers of the association can hire them.





Restaurant managers provide information topartners regarding job openings and neededskills, work with partners to establish screeningcriteria that meet McDonald’s needs, and setstandards for the soft skills, hard skills, and performance levels welfare recipients need toachieve. Partners provide training before and/or immediately after welfare recipients are hired.As work processes at McDonald’s change, thetraining curriculum does as well; McDonald’sworks with its training partners to respond successfully to these changes.

Partners also provide other services, includingscreening for substance abuse and assisting inovercoming barriers to employment, such as alack of child care or transportation. Some part-ners provide post-employment support.

Training for partner organizations. McDonald’shas developed a customer-service training pro-gram for the staff of partner agencies. Topicsinclude customer service in non-profit organiza-tions, vision, how to avoid mistakes, and mea-suring program outcomes.

Retention and advancement. McDonald’semphasizes the importance of developing careerladders for welfare recipients. It considers itselfa point of entry to the labor market for first-timeworkers. Its training supports internal promotionas well as skill development that enables employ-ees to secure better jobs with other employers.

Involvement in governance. McDonald’s is amember of the welfare-to-work Partnership.Corporate staff participate in the Illinois HumanResource Investment Council. The companybelieves that the activity that is most importantfor it to promote with the council is planning,and it has also assisted efforts to assess theneeds of job seekers and those who work inentry-level jobs. McDonald’s is also involved inseveral local partnerships, including those inChicago, New Orleans, and Minneapolis.

Challenges and Promising PracticesMcDonald’s restaurant managers are quiteaware of the trade-off between investing indeveloping successful partnerships versus otherrecruitment strategies. They evaluate the extentto which programs meet their hiring needs andhow easy they are to work with. Sometimes, themanagers choose not to invest the time andmake the changes necessary to develop partner-ships. Partners have sometimes been difficult towork with and inconsistent in meetingMcDonald’s expectations. However, programssucceed when both the restaurant staff and ser-vice provider make a commitment to the part-nership. Restaurant managers must be clearabout the quality and quantity of positions theyseek to fill, consistent in their expectations, andopen to new recruitment and hiring strategies.McDonald’s has found its customer-servicetraining to be a key asset in building partners’understanding of the approach it expects themto take in meeting the firm’s needs.

McDonald’s corporate culture is to promotefrom within, and its training supports thisobjective. However, the firm has found that aninth-grade level of literacy is necessary for theupper levels of training, which is required byjobs paying $8 to $9 per hour.

Future TrendsMcDonald’s expects its welfare-to-work effortsto expand gradually. The firm prepared a reporton its experience in New Orleans and made itavailable on-line as a model for other McDonald’srestaurants that want to begin welfare-to-workprograms.

Key Lessons• McDonald’s has developed ways to assist

smaller businesses. The efforts of corporatestaff to help managers develop partnerships,provide them with support services, anddesign training programs are examples ofsteps large corporations can take to benefitsmaller ones.




Key Lessons continued

• McDonald’s provides training for partnerorganizations. McDonald’s customer-servicetraining for the staff of agencies that providerecruitment, assessment, training, and supportservices is a concrete method of increasingtheir capacity to meet the needs of business.

• McDonald’s jobs can lead to better employ-ment. McDonald’s training programs make itpossible for employees to advance within thecompany. They also provide skills that qualifyMcDonald’s employees for employment inmany service-sector jobs and offer the oppor-tunity for them to climb occupational careerladders.

Contact PersonRogercarole Rogers, Staff Director, EmploymentDevelopment, (630) 623-6540



Pizza Hut ❖ Page 1 ❖ Case Study

Business AreaA fast-foods business, Pizza Hut has 120,000U.S. employees, of whom 108,000 are in entry-level positions. In the United States, Pizza Hutis part of Tricon Global Restaurants and has thelargest percentage of company-owned storesamong fast-food chains. In the U.K., Pizza Huthas about 8,500 employees and is a unit ofWhitbread.

Benefits of Welfare-to-Work InvolvementPizza Hut cites several benefits of employingwelfare recipients. Stores receive tax credits forhiring welfare recipients, and Pizza Hut’shighly effective-tax-credit recovery system pro-vides significant revenue to the firm. Jobs Plus,Pizza Hut’s most promising welfare-to-workprogram, has reduced annual turnover, (to 28percent for participants versus 130 percent fornew employees in general). The firm estimatesthat each avoided new hire saves at least $300 inrecruitment and training costs. Other Jobs Plusbenefits include reductions in the time it takesto fill positions and greater employee loyalty toPizza Hut.

Highlights of Welfare-to-Work InvolvementPizza Hut hired at least 9,000 welfare recipientsin 1997. About 700 of these individuals partici-pated in the Jobs Plus program. Tim Cate,Manager of Federal and State Hiring Incentives,projects that Pizza Hut will have hired 1,300welfare recipients through Jobs Plus in 1998.

Jobs Plus began in 1985, when a labor shortageaffected the U.S. service industry in general. Atthat time, Pizza Hut formed a task force thatrecommended efforts to hire seniors, non-work-ing mothers, and individuals with disabilities.In response, the firm established the Job Plusprogram, which provided employment servicesto support individuals with disabilities. PizzaHut has employed more than 14,000 individualswith severe disabilities through the program,among whom 73 percent were developmentallydisabled. By the early 1990s, Pizza Hut was

receiving the most revenue of any U.S. companyfrom the Targeted Jobs Tax Credit.

During the last several years, the Jobs PlusProgram has also helped Pizza Hut to recruit,train, employ, and arrange support services forindividuals receiving welfare who also havedisabilities.

Jobs Plus is a partnership between Pizza Hutand Integrated Resources Institute (IRI), a non-profit agency. Through a national database ofagencies, IRI sources employees for Pizza Hutand manages a two-way flow of information:agencies let the program know about job seek-ers who meet Pizza Hut’s hiring criteria, andstore managers let the program know about job openings.

Pizza Hut pays IRI for its services. The valuePizza Hut receives in return is that IRI makesrecruitment cost-effective and meets Pizza Hut’semployment needs well. What makes it so easyfor Pizza Hut is that the firm does not have tocommit major corporate resources to the pro-gram or train local staff. All corporate staff needto do is to explain the service to store managersand provide the Jobs Plus phone number.

Pizza Hut also trusts IRI to maintain qualitycontrol. Jobs Plus will stop working with anagency that regularly refers job seekers whodon’t have the competencies for work at PizzaHut.

Pizza Hut considers IRI a business partner. The Work Opportunity Tax Credit, which has replacedthe Targeted Jobs Tax Credit, expired in 1997.This is the key tax credit for the Pizza Hut pro-gram. Although it was re-approved retroac-tively, there was a period when Pizza Hut didnot receive tax credits for hiring Jobs Plus par-ticipants. During this time, Pizza Hut continuedto work with IRI (and pay for Jobs Plus services).

At the local level, store managers that regularlyuse Jobs Plus get to know the agencies that pro-vide support services to program participants.The most successful employment results from a

Pizza Hut




strong working relationship between a managerand a local agency.

Services Pizza Hut’s partners provide. Agencies typically prepare candidates for employmentbefore referring them to Pizza Hut. The prepara-tion focuses on soft skills but can include hardskills. After hiring, many agencies provide anon-the-job “coach” who works with the newemployee. This model, common among agenciesthat support employment of individuals withdisabilities, provides a high level of service. The coach teaches the new employee the joband facilitates interactions with supervisors and co-workers. The coach also helps with support services, such as securing reliable transportationfor the employee to and from work.

Roles of corporate and local staff. Corporatestaff market the Work Opportunity Tax Creditsavailable to stores and have set up a system sostores can use them easily. The tax credits go tothe store’s profit line, so hiring welfare recipientsimproves store managers’ performance measure-ments and year-end bonuses. Corporate staffreport that many stores come to have high levels ofparticipation after having a few good experienceshiring welfare recipients and receiving tax credits.

The tax credit operates as a “pull mechanism,”in contrast to a “push mechanism” such as cor-porate staff requiring store managers to hirewelfare recipients.

Regional field staffing leaders assist stores inmaking connections with IRI, local serviceproviders, and government agencies.

Through the program’s work with individualswith disabilities, store managers have receivededucation, support, and rewards to developindividualized, successful positions for JobsPlus participants, and have learned to workwith job coaches and the agencies that employthem. The managers apply this approach toemploying welfare recipients. However, once aperson is hired, Pizza Hut treats those who come

through Jobs Plus the same as other entry-levelemployees. They get positive feedback, especiallyduring the first two weeks, and managers takesteps to make the new employee feel like part of the store’s team. Like all employees, they alsoget regular in-store training and new productroll-out training. Managers also try to be flexibleregarding work scheduling. Pizza Hut increaseswages yearly and tends to promote from within.Employees can be nominated for promotions by other employees or nominate themselves.

Challenges and Promising PracticesBy the 1990s, Pizza Hut had received TargetedJobs Tax Credits for more employees than anyother employer, in large part because of itsemployment of individuals with disabilitiesthrough Jobs Plus. Recent uncertainty related to the Work Opportunities Tax Credit is a majorfrustration for Pizza Hut. In September 1998,Congress renewed the credit for one year.However, Pizza Hut has found it difficult tocommit resources to expanding the Jobs Plusprogram when the future of the tax credit isuncertain.

Pizza Hut contrasts the Jobs Plus program andagencies that participate in it with its generalexperience with welfare offices. Pizza Hut hasnot had an easy time working with governmentwelfare agencies. The company believes this isbecause of a difference in organizational goalsand culture: welfare offices seek to get checks to people, while other agencies want to get people to work and help integrate clientsinto jobs.

Key Lessons• Partnerships bring expertise and efficiency.

Jobs Plus is Pizza Hut’s most promising pro-gram because of its partnership with IntegratedResources Institute. IRI understands PizzaHut’s employment needs and is expert inmanaging the agencies that provide job appli-cants and support services. It would be muchmore difficult, and perhaps more costly, if

Pizza Hut



Key Lessons continued

Pizza Hut had to identify a quality providerfor each store that wanted to participate.

• Pizza Hut uses the tax credit that fits itsbusiness environment. Pizza Hut considersthe Work Opportunity Tax Credit a majorbusiness resource but finds the welfare-to-work tax credit far less useful. The company’swage structure and relatively short-termemployee retention fit the former rather thenthe latter. Also, the Work Opportunity taxcredit applies to a range of target groupsPizza Hut employs, while the welfare-to-workTax Credit only applies to welfare recipients.

• Cultural differences between the private andpublic sectors are factors in firm decisions.Pizza Hut perceives that its difficulty in work-ing with welfare offices results from their ori-entation toward getting checks out to clientsrather than getting clients to work and assist-ing them to integrate into jobs.

Contact PersonTim Cate, Manager, Federal and State HiringIncentives, (502) 874-2762

Pizza Hut


Salomon Smith Barney ❖ Page 1 ❖ Case Study

Business AreaA financial services firm with more than 35,000 U.S. employees and 1,300 in the U.K.

Benefits of Welfare-to-Work InvolvementFor hiring welfare recipients, SSB has earned taxcredits, reduced payroll ($8/hour for an intern’sfirst four months versus $20/hour to pay a tempagency), and reduced hiring time. In addition,managers are more secure about hiring decisionsbecause the internship lets them get to know can-didates for employment better. Program partici-pants who are hired into permanent positionshave a retention rate of 90 percent, comparedwith an average retention rate of 82 percent forequivalent positions.

Highlights of Welfare-to-Work InvolvementSSB began its welfare-to-work efforts in 1995,when the firm had 550 openings. Barbara Silvan,Senior Vice President of Human Resources, hadlearned of Wildcat Service Corporation, a non-profit, community-based program that trainswelfare recipients. SSB hired four Wildcat interns.Steadily increasing this number, SSB has nowhired 75 former welfare recipients throughWildcat into permanent positions; 90 percent are still employed. Silvan is a strong championof SSB’s welfare-to-work efforts.

Services partners provide. Wildcat prepares wel-fare recipients for employment at SSB and otherfirms. It recruits and screens welfare recipientsto identify those likely to succeed in financialservices firms, then engages them in a 16-weektraining course in computer, communication,and work-readiness skills. Wildcat makes surethat welfare recipients who begin internships atSSB are in the habit of getting to work on time,and dress and behave professionally, and thatthey have worked out housing, child-care,transportation, and domestic-violence problems.The training simulates “real work”—partici-pants must dress for work (not school), arriveon time, and attend class daily. Those who missmore than a few classes are dropped from theprogram. SSB interviews those who complete

the training and selects some for four-monthinternships. If performance in the internship issatisfactory, SSB offers the candidates perma-nent positions.

Relationships with partners. SSB and Wildcatstaff worked together to ensure that Wildcatunderstood SSB’s hiring standards. Wildcatsought feedback from SSB on unsuccessful can-didates, using it to improve the pre-employ-ment program. Ultimately, Wildcat hired a staffperson from the corporate sector who could bet-ter understand SSB’s culture and expectations.Wildcat can now more readily identify welfarerecipients who are likely to succeed at SSB. Wildcat now proposes about 30 candidates to SSB, and the firm hires 20 to 22 interns. During the last few cycles, SSB has hired 80 to 85 percent of the interns into permanent positions.

Wildcat’s skills training is flexible and gearedtoward SSB’s needs, and Silvan regularlyinforms Wildcat staff about business develop-ments that might change skill needs. Wildcatincorporates these changes into the curriculum.It has even adapted some of SSB’s internal train-ing classes for program participants, who mas-ter the material before they arrive at SSB.

Silvan has found that hiring welfare recipientsis no more burdensome than hiring any otheremployee. It requires her time at three points in each cycle. In the initial phase, she identifieswhere SSB needs interns, interviews and placesthe interns in their four-month positions, andprovides the first-day orientation. Mid-way, she coordinates three workshops that SSB offers during the 16-week internship. In thefinal phase, she identifies and places interns in permanent positions.

Centralizing these functions in one office mini-mizes candidates’ nervousness and simplifiesthe hiring process. Silvan knows what her man-agers are looking for, and they trust her judg-ment. “For SSB managers, SSB’s partnershipwith Wildcat has become synonymous withquality employees,” says Silvan.

Salomon Smith Barney (SSB)


Salomon Smith Barney ❖ Page 2 ❖ Case Study

Challenges and Promising ActivitiesThe SSB environment is high-powered, andemployees must be able to handle the culture—”to look and speak the part.” SSB expects thesame high standards of all employees, andbelieves that differentiating among types ofemployees risks stigmatizing some and anger-ing others.

Challenges and Promising Activities continuedAs part of the program, Wildcat counselors pro-vide long-term support to former welfare recipi-ents at SSB. A participant who has a problem orquestion can seek help from a counselor at anytime. During the four-month internship, SSBoffers three workshops on topics that help par-ticipants understand and function in the firm.For example, one workshop covers how toreceive performance feedback. Supervisors’ firstappraisals are built into this workshop, helpingthe participants digest the feedback and usecriticism constructively. An intern who is hiredpermanently can continue to work with theWildcat counselor and also take advantage of SSB’s Employee Assistance Program.

Advancement opportunities are the same forformer welfare recipients as for other SSB staff,including a salary increase after one year ofemployment. Several former Wildcat programparticipants have received promotions, andabout a dozen have taken advantage of tuitionreimbursement. Human Resources staff areavailable to advise employees on advancementopportunities and strategies.

Future TrendsSSB believes strongly that it should only hirewelfare recipients to meet a business need.However, the firm is so pleased with its involve-ment that it is expanding the Wildcat model tosome subsidiaries, such as Commercial Credit.Wildcat is helping identify business needs, forexample, identifying which jobs turn over mostoften. It is also helping SSB subsidiaries todesign small start-up programs, to locate a localservice provider to play Wildcat’s role, and toidentify funding sources.

Key Lessons• An internal champion is key to SSB’s efforts.

Silvan takes overall responsibility for welfare-to-work efforts and communicates effectivelyinternally and externally.

• Wildcat succeeds by considering the firm itscustomer. Wildcat has the commitment andcapacity to understand the corporate culture,program goals, and hiring needs.

• Having the same standards of performance isimportant to SSB. Employee standards arehigh, whether or not an individual has beenon welfare.

• Transitional opportunities benefit SSB andwelfare recipients. Four-month internshipsprovide an environment for SSB and theintern to succeed while reducing risk.

• SSB and Wildcat provide welfare recipientswith long-term support and opportunities foradvancement. Participants have opportunitiesfor jobs with a future.

Contact PersonBarbara Silvan, Senior Vice President of HumanResources, (212) 816-2524

Salomon Smith Barney (SSB)


United Airlines ❖ Page 1 ❖ Case Study

Business AreaOne of the world’s largest air-passenger carri-ers, and the largest majority-employee-ownedcorporation, with over 92,000 employees,including about 54,000 in entry-level jobs

Benefits of Welfare-to-Work InvolvementThe primary benefit of welfare-to-work is retention. The firm has retained 69 percent of its welfare-to-work employees. According toGerald Greenwald, United Airlines Chairmanand CEO, “United employees hired from publicassistance have one-half the attrition rate ofsimilarly placed employees not from publicassistance.” Reducing turnover reduces recruit-ment, hiring, and training costs.

Highlights of Welfare-to-Work InvolvementAs of April 1998, 550 United employees wereformer welfare recipients. They work in cus-tomer service, ramp service, reservation sales,cabin service, flight attendant, service, andadministrative support. Ninety percent workfull-time; part-time employees can start work-ing full-time at the end of their first year.Employees receive a full benefits package,including health insurance, dental insurance,and a retirement plan. Full-time employmentand full benefits support retention at United.

United has developed a mentoring program to support retention of welfare recipients. Theprogram was designed by a cross-functionalteam that included union members, interna-tional employees, senior-level executives, andwelfare recipients. The team designed a peer-mentor model that wouldn’t interfere withemployee-supervisor relationships. “Locationalchampions” oversee the program and assist bothmentors and employees. Mentors are volunteersand are expected to perform that role on theirown time.

Flexibility is a key principle of the mentorshipprogram. The peer approach is most common,although mentors range from co-workers tosenior vice presidents. Welfare recipients areassigned a mentor for their first 60 days ofemployment. However, Georgina Heard, man-

ager of executive development and successionand architect of United’s welfare-to-work pro-gram, says that United hopes that relationshipswill continue after the 60-day period ended, andthat has often been the case.

The mentorship program was so successful inincreasing retention that United adopted it forall new hires in 1998 to improve long-standingturnover problems. “Not only did we improveretention but a survey of mentors showed thatthey actually felt better about themselves andthe company,” says Heard.

Roles of corporate and local staff. In 1996,Greenwald pledged that United would hire2,000 welfare recipients by the year 2000. AsScott Gilday, Director of People Services forUnited, says, “The key to running a programlike this is to have complete support right fromthe top. If it is understood from the top downhow critical the program is, then it can beturned over to the employment department and the rest of the company to implement.”

Corporate staff support local efforts to achievethe overall goal and facilitate a Welfare-to-WorkTask Team that local staff participate in. Theteam assembles planning materials, providesnew ideas, engages in continuous improvementefforts, and supports local staff efforts. Eachlocal employment office has a welfare-to-workchampion who works internally to promote theeffort and develops partnerships with commu-nity-based service providers.

Relationship with partners. United has devel-oped partnerships in many of the communitiesin which it operates. United recruiters workclosely with social service and other non-profitagencies in about 20 U.S. communities.

United’s local staff work closely with commu-nity-based organizations so they fully under-stand United’s requirements for employment.United encourages its partners to shadow air-line employees on the job to become familiarwith the positions and skills necessary for suc-cess. Local staff provide input into the design ofthe training program, customizing it to meetUnited’s needs and often providing the

United Airlines


United Airlines ❖ Page 2 ❖ Case Study


software United uses so program participantscan learn it. Some local offices set standards forcommunity-based programs, evaluate their suc-cess in meeting those standards, and participate in continuous improvement processes. Services partners provide. Partner organizationsimprove United’s access to an expanded laborpool and provide pre-employment interviewingto identify potential candidates for employment.In addition, partners provide valuable pre-employment training on soft skills and trainingthat is customized to meet the requirements forthe positions United seeks to fill. United countson its partners to maintain an up-to-date under-standing of its needs and continuously improvetheir recruitment and training in response tochanges in the work environment at United.

Retention and advancement. From the time theybegin working for United, employees receive on-the-job and/or off-site training. United encour-ages employees to take the initiative to identifythe training they want. Supervisors assistemployees to plan their training and identify theskills that provide opportunities for advance-ment. As positions open, entry-level employeeswith sufficient training can bid on them.

Increasing welfare-to-work capacity. UnitedAirlines is a founding member of the Welfare toWork Partnership, which Greenwald chairs. TheExecutive Director of the Chicagoland BusinessPartners is a loaned United executive.

Challenges and Promising Practices As with many employers, United Airlines hashad deep concerns about entry-level employeeturnover. By expanding its mentoring programto involve all entry-level employees, it hasincreased retention rates.

Located at airports, United jobs are far frompopulation centers and can be difficult to reach.United is exploring a variety of approaches toovercoming transportation limitations, including

working with public transit agencies to establishnew bus routes and providing flexible schedul-ing to take advantage of existing public trans-portation.

Key Lessons• By expanding its mentoring program, United

Airlines is improving entry-level retentionrates. Developed originally for welfare recipients, the program has been expanded to include all new entry-level employees.

• United has attempted to develop a welfare-to-work approach that other firms can follow,including smaller firms. Low cost, low staff-time requirements, and simplicity are thedesign principles for United’s welfare-to-workprogram. For instance, mentors undertaketheir activities on their own time, rather thanreceiving pay for mentorship activities.

Contact PersonEmily Derr, Employment Representative, (847) 700-6755

United Airlines


United Parcel Service ❖ Page 1 ❖ Case Study

Business AreaThe world’s largest package-delivery company, with 340,000 employees, including about 290,000in the United States and 3,000 in the U.K.

Benefits of Welfare-to-Work InvolvementCEO John Alden reports a 70 percent retentionrate for welfare-to-work program participants,about 10 percent higher than for all new entry-level employees. UPS is very satisfied withemployees hired through these programs.Welfare-to-work innovations have also reducedhiring and training costs, as well as the time ittakes to hire. The firm also receives federalWork Opportunity Tax Credits for hiring welfare recipients.

Highlights of Welfare-to-Work InvolvementBetween January 1997 and November 1998, UPS hired 21,774 welfare recipients. It typicallyemployed these new hires in part-time jobs aspackage handlers and paid $8.50 to $9.50 perhour, with full benefits.

A decentralized organizational structure drivesUPS’s approach to welfare-to-work efforts. “Thereis no one-size-fits-all model for a successful wel-fare-to-work program,” according to Lea Soupata,Senior Vice President for Human Resources.

UPS involves corporate staff directly in effortsto strengthen welfare-to-work as a national ini-tiative, as well as involving local staff in specificprograms. UPS is very active in the Welfare toWork Partnership, “loaning” an executive to theeffort. Company staff also participate in govern-ing the Illinois welfare-to-work initiative.

UPS corporate staff document successful andcreative practices and disseminate that informa-tion to local facilities. Rather than set goals foremployment of welfare recipients by localoffices, corporate staff expect local managers touse welfare-to-work as one tool among many toachieve full and effective staffing.

At the local level, UPS stresses the power andnecessity of collaboration with community part-ners, a policy UPS has pursued for over 25 years.

“As a responsible corporate citizen, UPS’ goal isto have a workforce that reflects the diversity ofthe communities we serve,” says Ken Parks,Vice President of Corporate Human Resources.“We have a continuing need to fill UPS jobswith dedicated people, and our approach hasalways been to partner with education, govern-ment, and non-profit organizations to locate,employ, and retain them.”

Relationships with partners. UPS looks for effi-cient, non-bureaucratic partners that will adaptservices to its needs. In Chicago, for example,UPS partners with the Grand BoulevardFederation, a community-based organizationthat provides welfare recipients with job-readi-ness training, coaching, and support services. In Atlanta, UPS works closely with GoodwillIndustries, an organization that helps individualswho have disadvantages and disabilities secureemployment.

UPS partners provide services that improve hiring and retention. These include screening ofpotential applicants and trainees, training inpre-employment life-skills and work readiness,coaching for both former welfare recipients andUPS supervisors on problem-solving, case man-agement services, and access to further educa-tion and training.

UPS invests in its community-based training andbrokering partners. The firm shares informationabout job openings and requisite skills. In com-munities where UPS is most engaged, it pro-vides input into recruitment or training-programdesign, helps set outcome standards, evaluatespartners according to those standards, partici-pates in continuous improvement processes, andleads efforts to develop new programs. The firmfrequently opens its facilities to job-seekers sothey can experience UPS as a workplace beforeapplying for a job.

Support of retention and advancement. UPS’sinvestments in entry-level employees promoteretention. The firm provides all new employeeswith a carefully designed orientation to employ-ment, 22 days of on-the-job training, and men-toring by supervisors.

United Parcel Service (UPS)




The UPS culture values promotion from within.The average employee who stays with the firmfor fifteen years will hold six positions in thattime. This priority, combined with continualinvestment in new technology and workprocesses, leads UPS to offer skill developmentopportunities to its front-line workers, especiallycontinual upgrading of technology-related com-petencies. Ongoing skill development is linkedto pay increases and promotions.

In an expansion of its extensive internal training,UPS is piloting courses at community collegesand holding college classes at its Philadelphiafacility. UPS is also partnering with MetropolitanCollege (a consortium of three community col-leges) to offer degree-granting programs atnight, accommodating the time-critical nature of UPS business. Employees in the night-sortoperation can attend “UPS University,” with the firm reimbursing them for 50 percent of thetuition. UPS has also provided $1.5 million toupgrade classroom technology.

Making part-time work pay. In Chicago andDallas/Fort Worth, UPS has worked with otherfirms to develop Employee Share, an innovativejob-sharing program that is available to all part-time UPS employees at those locations. To makeit easier for people to work at two part-timejobs, UPS works with smaller businesses tomatch work at each based on coordinated startand finish times. The program not only pro-vides employees with more income, it alsoexpands the breadth of work experience andskill development. UPS benefits throughincreased retention and loyalty. Smaller firmsbenefit because UPS has a much better capacityto screen of new hires than many small firmscan afford. The Small Business Association andthe U.S. Chamber of Commerce are interested inthe job-sharing program.

Transportation assistance. When seeking newworkers for a late-night shift at its facility near

Philadelphia’s international airport, UPS receivedhelp from welfare officials in Camden, New Jersey,ten miles away. Camden welfare recipients provedto be a good source of employees, eventuallyproviding UPS with 700 workers whose retentionrate was an unusually high 88 percent. Becausepublic transportation between Camden and thefacility was limited, UPS began operating busesfor its new employees. Eventually, the local pub-lic bus system took the route over. Although UPSpromised to subsidize the route, the 53 dailytrips proved profitable. UPS has also developed aplan to help rural employees get to its Louisvillefacility, improving attendance and retention.

Challenges and Promising PracticesUPS entry-level jobs are characterized by partic-ularly high turnover. In general, UPS hires wel-fare recipients into part-time jobs between 5:00p.m. and 8:00 a.m., sorting and loading pack-ages—jobs that require considerable effort andflexibility. Transportation to the facilities is lim-ited, making the firm receptive to strategies forlowering turnover.

Effective partnerships between UPS and service-delivery organizations require significant stafftime and commitment. In some situations, UPSis asked to take on too much responsibility,because it is seen as a firm with deep pockets.

UPS believes that effective programs begin withthe needs of participating employers. Yet toooften, businesses aren’t at the table when deci-sions about government-funded efforts aremade. Moreover, government agencies oftencan’t respond effectively to employers. In its roleas policy advocate, UPS is encouraging greaterflexibility in federal and state policies regardingwork requirements and education and trainingfor welfare recipients. The firm wants more part-time, well-paid jobs that have full medical bene-fits to count as work placements; it also notes aneed for flexibility related to the time it takessome welfare recipients to overcome barriers toemployment and work-readiness.




Future TrendsIn the coming year, UPS expects to expand itswelfare-to-work efforts and increase the numberof welfare recipients it hires. Even if unemploy-ment rises and reduces demand for newemployees, UPS’s strong relationships with itspartners and their effectiveness as a source forentry-level employees ensure that welfare-to-work hiring will expand.

Key Lessons• Partnerships require two-way commitment.

UPS recognizes that if it wants quality ser-vices from community-based partners, it mustinform, orient, and work closely with themover the long run.

• Promotion from within develops employees.UPS strongly encourages promotion fromwithin its workforce to increase retention andcareer advancement.

• Intermediaries are crucial to significantexpanding welfare-to-work. UPS believes thatto reach significant scale, welfare-to-workefforts must involve many employers and ser-vice providers. These relationships need to beencouraged, strengthened, and linked by localpartnerships and organizations.

• Transportation barriers can be overcomethrough creative collaborations. For largefirms, creating new public transport routes tothe workplace can open up new sources ofqualified employees.

• Large firms can help smaller businessesemploy welfare recipients. The EmployeeShare program reduces the risk and cost tosmall businesses of hiring welfare recipients.This helps UPS, its small firm partners, andprogram recipients who need more than onepart-time position to make ends meet.

Contact PersonKerry Ann McCallum, Corporate CommunityRelations Manager, (404) 828-4851



Xerox Business Services ❖ Page 1 ❖ Case Study

Business AreaThe fastest growing division of Xerox Corporationand the worldwide leader in document out-sourcing, from copying and mail distribution todocument creation and LAN management, with12,000 employees.

Benefits of Welfare-to-Work InvolvementA member of the Welfare to Work Partnership,Xerox Business Services employs welfare recipi-ents as an extension of corporate social responsi-bility and a good business practice.Welfare-to-work efforts have reduced hiring costsand the time involved in hiring entry-levelemployees. In tight labor markets, XBS hasincreased the quality of entry-level hires byscreening and training candidates. Further, wel-fare-to-work retention rates of 75 to 80 percenthave helped XBS maintain its industry-leadingretention rate for entry-level employees, which issignificantly above the 60 to 70 percent typical inits industry. Employees hired through welfare-to-work programs are also significantly more loyalto XBS than are other entry-level employees, andthey are more flexible due to their pre-employ-ment training. The efforts are also a motivatingfactor to employees throughout XBS, increasingtheir pride in the organization.

Highlights of Welfare-to-Work InvolvementXerox Business Services employs 12,000 peoplein the United States, including 10,000 AccountAssociates stationed on-site at other firms thatoutsource business to XBS. Since September 1997,when XBS piloted its welfare-to-work efforts, thefirm has expanded the program to all 50 of itsU.S. locations and hired 188 welfare recipients.Most are employed as Account Associates at $7to $8 per hour. XBS Manager of Staffing andStrategy Joe Hammill, who oversees the pro-gram, says, “We have designed our entry-leveljobs to provide opportunities to learn other jobsand move to self-sufficiency. It’s more than start-ing people at $7 an hour. It’s about meaningful,challenging work that gives people fulfillmentand the opportunity for advancement.”

The XBS corporate culture promotes empower-ment of staff, and welfare-to-work efforts aredesigned to do so as well. At the corporate level,Hammill did background research, designed aframework for involvement in welfare-to-work,and circulated the framework to all local offices.The XBS approach is to create partnerships withlocal welfare-to-work service providers that arecommitted to quality, responsive to XBS as a cus-tomer, and make the relationship as simple aspossible for XBS. In addition to a strong cus-tomer-service orientation, XBS seeks partnersthat can deliver the whole package of servicesXBS needs, either directly or through a networkof affiliated providers. Hammill has developed asix-page assessment tool that local XBS opera-tions can use to choose assessment, training, andsupport services for partners.

At the corporate level, XBS sets reasonable andmeasurable goals for local operations, such asemploying six to eight welfare recipients per yearand retaining a high proportion of them.Although there is no specific goal for advance-ment, local operations report on it. XBS is com-mitted to assuring that its welfare-to-workoperation is lean. Hammill is the only corporatestaffer, and he has other responsibilities as well.

Using the XBS welfare-to-work framework, localmanagers create relationships with a variety ofpartners. The flexibility XBS provides to localmanagers allows them to customize partnershipsas needed and take best advantage of state andlocal welfare-to-work services infrastructures,which vary considerably.

The most important service that partner organi-zations provide is pre-employment training onwork attitudes, communication, and expecta-tions and effective assistance in overcoming bar-riers, such as child-care and transportationneeds. Partners also provide training in job spe-cific skills. Further, some partners provide valu-able post-employment services, especially casemanagement services that assist people in com-ing to work and performing consistently byovercoming non-work problems, includingdealing with the welfare bureaucracy.

Xerox Business Services (XBS)


Xerox Business Services ❖ Page 2 ❖ Case Study


XBS provides partners with information aboutjob openings and needed skills, as well as inputon policy and program design. XBS staff partici-pate in program activities. Work-site tours pro-vided by XBS help match program participantswith jobs. XBS also sets standards for programquality and outcomes, evaluates programs bythose standards, and informally advises onimprovements.

All entry-level employees at XBS receive signifi-cant retention and advancement supports. Theparent company, Xerox Corporation, is one ofWorking Mother magazine’s top 100 firms. Xeroxprovides health insurance for employees whowork over 20 hours per week. Other benefitsinclude a dependent-care fund, significant child-care resources, and flexible work schedules.Managers’ pay is tied to promoting work/lifebalance.

XBS tries to be a learning organization. AllAccount Associates participate in a competency-based development system that includes self-assessment of the skills they need to advance tofuture assignments of their choice. XBS supportsemployee learning through classes, on-the-jobtraining, computer-based training, and tuitionassistance. As a result of welfare-to-work part-nerships with community colleges, XBS hasbegun to explore relationships with them tosupport skill development.

Future TrendsXBS expects to employ between 200 and 250 former welfare recipients by the end of 1998.XBS will probably increase that number in 1999, but it is most interested in retention and advancement of welfare recipients already hired.

XBS is working closely with Women inCommunity Service to develop the Friends atWork program and related training materials

that assist the efforts of co-workers to supportthe transition of new entry-level employees toemployment. While Friends at Work will sup-port welfare-to-work efforts, XBS encourages itslocal operations to offer the program to all newentry-level employees.

Key Lessons• Total quality principles ground welfare-to-

work at XBS. The partner organizations focuson meeting XBS’s needs is the most significantindicator of success because it provides thebasis on which the partnership can develop.

• Corporate tools can simplify local managers’efforts. The XBS framework and assessmenttool helps local managers choose partnerorganizations.

• Fitting welfare-to-work efforts to its corpo-rate culture is important to XBS. An empow-ered, decentralized approach fits XBS; a moretop-down approach would be very difficult toimplement. Corporate staff are able to managethe effort overall by having local managersreport on hiring, retention, and advancement.

• Flexibility in developing local welfare-to-work partnerships helps XBS. This approachresponds to differences in the strengths andweaknesses of local service providers.

• Welfare-to-work efforts have helped improveXBS’s human resources practices generally.The network of relationships developedthrough welfare-to-work efforts can be lever-aged for other human resources efforts.Friends at Work and XBS’s explorations ofexpanding its relationship with communitycolleges are two examples.

Contact PersonJoe Hammill, Manager of Staffing and Strategy, (716) 264-5372

Xerox Business Services (XBS)


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