Press Release
Employer attitudes to the 'core jobless' is key to welfare reform agenda
Monday, July 21 2008
Employer attitudes to the 'core jobless' are key to welfare reform agenda
The Chartered Institute of Personnel and Development (CIPD) welcomes the Government’s “support and responsibilities” approach to welfare reform. However, the Institute believes that the range of support and incentives offered should be individually tailored to the different jobless groups given evidence of employer reluctance to recruit from particular jobless groups.
Those with a criminal record, a history of mental or physical illness, drug or alcohol dependence, or who are homeless face particular difficulty in finding jobs.
Gerwyn Davies, Public Policy Adviser, said, "CIPD research shows that employers are more than three times as likely to shy away from recruiting those with a history of drug illness or alcohol problem than those with who have been on long-term incapacity benefit.
"The Government needs to reflect this in their incentives framework to ensure that those who win contracts to help people find jobs do not simply cherry-pick from the more employable groups, such as lone parents. They also need to work hard with employers to change attitudes towards these often excluded groups. Many have recruited from such groups and have had positive experiences.
"Equally, the Government needs to target support at those who are more likely to be excluded, such as drug addicts, to help overcome the various barriers they face. It’s therefore encouraging to see that drug addicts being offered support and treatment in return for benefits."
Davies adds, "Simplifying the complex benefits system and providing support to the core jobless will be the key to getting people back into work. The proposal to create a system of two benefits through employment support allowance for those with medical problems and Jobseekers Allowance, for those who are fit to work, is a big step forward."
On the proposals to increase the involvement of private and voluntary organisations to help people to find jobs, Davies adds, "Welfare to work schemes should be based on what works in practice. If the private sector can deliver better outcomes for individuals and employers than Whitehall, then we should embrace that change.
"There is nothing wrong with firms profiting from placing people in long term employment, provided that the system is equitable and takes account of the different and complex challenge involved in targeting specific jobless groups.
"The tightening of the UK economy makes this already difficult challenge an even greater one. However, with more than 650,000 vacancies unfilled, there are lots of jobs to play for."
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