Exit Strategies: The Need for Sustainability in Employment Creation Projects.

by Sandy Dlamini Zhanda, Siphesihle Qange & Struan Robertson, Seriti Institute

In the realm of employment creation projects, public employment programmes (PEPs) have played a crucial role in providing work and earning opportunities while alleviating the socioeconomic impact of unemployment. Significantly, PEPs provide much-needed employment opportunities to thousands of individuals in South Africa. However, the time has come to shift our focus beyond the initial goals of these programmes and explore the critical aspect of exit strategies. Here, we explore into the imperative need for sustainable exit strategies in employment creation projects, aiming to transition participants into viable work and earning opportunities. This shift represents a pivotal step toward fostering long-term economic growth, development, and social empowerment.

The landscape of public employment programmes has been a lifeline for many South Africans, especially in the face of a sluggish economy whose private sector is unable to absorb the growing number of job seekers. PEPs offer jobs, training, and optimism to individuals struggling with the adverse consequences of unemployment. However, as we examine the effectiveness of these programmes, it becomes evident that their true potential lies in their ability to create sustainable change.

One critical factor we cannot ignore when discussing public employment programmes is the state of South Africa's economy. The economy's fragility has led many companies to perceive hiring as a high-risk endeavour, and this reluctance to take on employees has worsened the unemployment crisis. The reality is that public employment programmes alone cannot bear the weight of the nation's unemployment problem. Regardless, PEPs fulfil a need for interim solutions to ensuring that people gain access to opportunities, acquire skills, and develop critical attributes to success in the world of work. To address this, a more comprehensive approach is required, one that includes effective exit strategies.

When looking at PEPs through the lens of sustainable employment, a common misconception is the nature of work provided by public employment programmes. While these initiatives indeed offer full-time employment, they are often established through fixed-term contracts by their very nature and do not always lead to sustainable, permanent positions. This distinction is crucial because the goal should be to equip participants with the skills, resources, and opportunities to transition into stable, long-term employment or entrepreneurship.

One of the cornerstones of any successful exit strategy is skills development. It is essential to recognise that public employment programmes often allocate a significant portion of their budgets for training. Without adequate training, individuals can find themselves trapped in a cycle of sporadic employment opportunities, perpetuating their vulnerability in the job market, and potentially leading them to becoming discouraged, falling into the expanded definition of unemployment. Training efforts must be prioritised and aligned with the participants' long-term goals. It is not just about training for the sake of it but ensuring that the skills acquired align with market demands thereby increasing participants’ employability.

The purpose of public employment programmes, like the Social Employment Fund (SEF), is to train individuals to either secure permanent employment or become self-employed. This commitment to training and skill development is integral to the success of these programmes and should not be understated. To ensure that public employment programmes are effective, they must be integrated with broader economic strategies and development plans. A disjointed approach, where these programmes operate in isolation from other unemployment-alleviating efforts, limits their potential impact. For instance, there should be synergy between these programmes and policies related to skills development, formal education bursaries, subsidies for low-income households, and in-community services.

Pathways to Sustainability can help to address the pitfalls and shift the focus toward sustainable employment. PEPs should offer participants the opportunity to acquire marketable skills. A well-defined exit strategy should be implemented, concentrating on transitioning participants into permanent employment or entrepreneurship. However, setting realistic transition targets is critical. Transitioning participants into viable work and earning opportunities is a complex task. Targets for this transition must be realistic, and the duration of the programmes should be extended to provide sufficient time for participants to find stable employment or alternatively establish their own businesses. An 18–24-month programme duration, as opposed to the typical 6-12 months, can significantly enhance the chances of successful transitions.

In the pursuit of successful exit strategies, the role of Strategic Implementing Partners (SIPs) cannot be overstated. Afterall, these partners have the task of pathway participants through a smooth transition into stable employment or entrepreneurship. Their competence and dedication are vital in making these pathways viable.

Seriti Institute's Positive Impact:

To illustrate the potential of effective exit strategies, we can draw inspiration from Seriti's experiences in implementing public employment programmes. Seriti's involvement in initiatives like the National Youth Service (NYS), and Social Employment Fund (SEF) demonstrates the positive impact these programmes can have on participants and communities.

• National Youth Service (NYS): In April 2022, Seriti embarked on a journey with NYS, employing 3,000 participants in 9 provinces. The goal was to create work opportunities in Early Childhood Development (ECD) through the Seriti aRe Bapaleng Programme and associated implementing partners.
• Social Employment Fund (SEF): From April 2022 to July 2023, Seriti employed 4,200 participants in 6 provinces through the SEF. This programme focused on agriculture, waste, recycling, and tree planting, addressing food insecurity and malnutrition concerns. The impact extended to approximately 8,400 households, demonstrating Seriti's commitment to community wellbeing.

Seriti's commitment to transitioning is evidenced by the implementation of NYS and SEF. These programmes have provided employment and equipped participants with essential skills and practical experience, enhancing their employability and professional abilities. Nevertheless, the journey has necessitated overcoming certain challenges too. While Seriti's achievements are commendable, challenges in transitioning participants have been acknowledged. There can be initial difficulties experienced in sourcing participants with the right qualifications and geographical location. The solution is to pursue continuous improvement and be willing to adapt to new operational models. In addition, it is crucial to implement a robust monitoring and evaluation system to track the progress and outcomes of programme participants in their transition to permanent employment or entrepreneurship.

Several exit strategies could be pursued to enhance sustainability aspects of long-term impact, namely:

• Job Placement Services involves collaboration with employment agencies and companies to facilitate job placements for programme participants in positions that align with their skills and training, resume writing and interview skills, and assessing the skills and interests of programme participants to match them with suitable pathways opportunities.
• Entrepreneurship Support offers entrepreneurship training and resources to participants interested in starting their businesses and supports the development of community-based enterprise cooperatives that provides sustainable employment to programme participants while contributing to local economic growth.
• Education & Skills Development supports participants in pursuing higher education or advanced skills training to enhance their qualifications and job prospects, as well as financial literacy and budgeting workshops to help participants manage their income and savings effectively once they secure permanent employment.
• Mentorship and career Counselling by organising networking events and job fairs where participants can connect with potential employers, expanding their professional network, establishing mentorship programmes where experienced professionals give guidance in career development and job searching, and career counselling services to help participants identify and pursue long-term career goals, ensuring they stay on track for success.
• Public-Private Partnerships: Forge partnerships between government agencies, nonprofit organisations, and the private sector to create a coordinated approach to transitioning participants into permanent work opportunities.

Amid South Africa's ongoing battle against unemployment and other problems of poverty and inequality, there is a need for expanded PEPs, sustainable exit strategies in employment creation projects, and a broader whole-of-society approach to nurturing economic growth and development. Public employment programmes have served as an essential stopgap, but their true potential lies in their ability to transition participants into viable work and earning opportunities. This shift represents a crucial step towards fostering long-term economic growth, social empowerment, and a brighter future for all South Africans.

We reflect on past achievements and note that implementation experiences should be used as a blueprint for broader change. By prioritising skills development, coordination with economic strategies, sustainable funding, and realistic transition targets, we can pathway participants more effectively. Social investment, both public and private, in the sustainability of employment creation projects awards participants a chance at a brighter and more prosperous future.