Key Highlights
Challenges
Employers in Philadelphia reported growing challenges in finding workers with the digital skills needed for today’s economy while also navigating the high costs of employee turnover.
At the same time, the workers most vulnerable to job displacement due to automation — particularly low-wage earners, part-time employees, and many workers of color — often have the fewest opportunities to access meaningful upskilling and career advancement. Many have a limited understanding of the workforce training ecosystem.
Opportunities
Philadelphia Works, the city’s workforce development agency, launched its first Pay for Success project in 2019 with Comcast as the employment partner and additional collaboration with the Federal Reserve Bank of Philadelphia and Social Finance. Comcast agreed to reimburse Philadelphia Works for the training costs of a pilot cohort through its HR department based on hiring and retention outcomes, linking public workforce investments to employment outcomes in the private sector.
The model created a feedback loop in which training programs can be adjusted based on hiring needs and retention. Participants employed by Comcast earned a family-sustaining wage with the option to earn more through commissions.
Building on the lessons learned from the pilot, The Skills Initiative, a community-based workforce training nonprofit, launched its own PFS programs tying a service fee for employers to employee retention benchmarks. This model ensures that training programs are tailored to the employer’s specific operational, cultural, and strategic needs, and that The Skills Initiative builds a sustainable funding stream that is not dependent entirely on philanthropic and public dollars.
Findings and Next Steps
- This funding model can be adapted across various industries, but larger employers are typically better positioned to absorb the up-front investment. Because employers are contributing their own funds, the decision-making process tends to be slower, often taking at least a year to launch a new program.
- Training by workforce development partner organizations is tailored to meet each employer’s specific needs, ensuring new hires arrive with the skills, knowledge, and confidence to succeed from day one. This reduces ramp-up time, boosts productivity, and lowers replacement costs through a focus on long-term retention.
- Beyond filling roles, the model represents a strategic investment in growth, innovation, and workforce sustainability while also enhancing brand reputation and community engagement.