Evaluation of the Payment by Outcomes trial 3: first interim report

This interim report details an evaluation of the Federal Government's Payment By Outcomes trial 3 (PBO3) – an initiative that trials outcomes-based funding for employment services that support people experiencing complex barriers to work. It highlights the significant impact of social enterprise employment on individuals facing complex barriers to work.

PBO3 is an innovative mechanism to fund the delivery of long-term employment outcomes for jobseekers experiencing significant barriers to employment. A distinguishing characteristic of PBO3 is that employment is provided by ‘jobs-focused social enterprises’, sometimes known as Work Integrated or Integration Social Enterprises (WISEs).

The evaluation consists of: 

1. an outcome evaluation focused on how effectively PBO3 has brought about change; and
2. a process evaluation, which documents design, implementation and operationalisation (inputs, activities and outputs).

This first report spans the trial initiation, design, development and implementation in the first year of service delivery. 

Key findings

1. Early outcomes are strongly encouraging, with large majorities of participants reporting positive change in financial circumstances, learning and skills development, sense of belonging, physical health and relationships.
2. Participants’ voices reinforced the survey results in relation to the importance of income to support independence, skills acquisition and sense of belonging. The biggest barriers to change before joining the trial were health, skills and opportunities.
3. Outcomes have been enabled by the jobs-focused social enterprise service model and an innovative and iterative design and development process.
4. Beyond the individual outcomes, the trial has also generated organisational and systems change.