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Building a Repeatable ROI Model for Workforce Success

Resultant partnered with a state department of commerce to develop a repeatable, data-driven ROI model that measures the impact of workforce programs on individuals, communities, and the economy. The new methodology enables evidence-based policy decisions, continuous program improvement, and long-term economic growth.

Story Highlights

Improving individual outcomes

Reliable data from a comprehensive set of metrics enables the agency to help program participants gain valuable skills and find better jobs.

Supporting economic growth

Greater access and awareness of workforce development and educational programs that provide positive outcomes strengthen economies in local communities and across the state.

Informing evidence-based policy

Insights gained through the advanced return on investment (ROI) model created by Resultant will shape policies that make a real difference in people’s lives.

About the client

This state agency advances economic growth and manages programs that connect people, businesses, and communities to opportunity.

Results

Shared vision for better outcomes
Data-driven program optimization

Challenge

A state legislative mandate signed into law in 2021 provides a blueprint for modernizing the state’s workforce development system. It includes streamlining access to education, training, and employment; building alignment among state and local agencies; and enabling data-driven accountability.

Gaps in Performance Data

This state’s department of commerce sought to identify areas for improvement and gain a deeper understanding of the ROI for workforce programs from the perspectives of both the taxpayer and the program participant. They needed to align multiple state agencies operating multiple workforce programs, such as Workforce Innovation and Opportunity Act (WIOA)-funded programs, Wagner-Peyser, Career and Technical Education (CTE), and apprenticeships.

Lack of ROI Methodology

The agency’s challenge is common to most states: With multiple workforce programs spread under the umbrellas of different agencies, there was no consistent, comprehensive way to measure ROI. They needed a clearly defined, unified methodology to demonstrate value across programs and the real-world impact on individuals and in local workforce regions. Additionally, the state wanted a repeatable model that could refresh with newly available data.

Solutions

To ensure workforce programs met the real-world needs of citizens, the department of commerce partnered with Resultant to build a reusable, data-driven model that would be used to:

Analyze existing programs to identify areas for improvement
Track ROI not just in dollars, but in impact to individuals and communities
Measure the true outcomes of workforce programs
Continuously update analyses based on current data

This methodology would inform decisions about workforce program strategies, delivery, and resource allocation, going beyond the incomplete picture most states get from using state income tax data as the only measure.

Building a Robust ROI Methodology

We drew from the state’s P20W longitudinal data system to draft an initial methodology and began an iterative process to ensure the approach aligned seamlessly with the nuances of the dataset.

Efficiency and Flexibility

Once the methodology was solidified and agreed upon, we built two distinct data models: one for education and one for workforce. Designed to efficiently ingest data and generate outputs at both state and local levels, the models were built to be flexible and scalable, enabling stakeholders to rerun analyses with refreshed data as needed.

Demonstrating Value

This methodology showcases broad outcomes and economic benefits to the state in the absence of state income tax, such as:

Job placement
Job creation
Wage growth
Community resilience
Local economic impact

The data modeling incorporated tools such as Impact Analysis for Planning (IMPLAN) and other data sources to provide a comprehensive view of economic contributions. Data integration allows for greater alignment and collaboration among agencies.

Reusable Data Models

Rather than static, point-in-time reports, these are reusable data models. This forward-looking design ensures the department of commerce can continue to measure outcomes and ROI over time, adapting to new data and evolving needs without starting from scratch.

Intuitive User Manuals

We also created comprehensive user manuals, which empower stakeholders to independently run data models and incorporate them into their decision-making processes.

Results

Shared Vision for Better Outcomes

This project proves that ROI can be operationalized, even in complex environments and underscores the state’s commitment to improving citizen outcomes for workforce program participants. Helping the state make data-informed, proactive policy ensures that workforce programs will bring far-reaching benefits to those who seek them: uplifting families, strengthening communities, and driving long-term economic growth.

Data-Driven Program Optimization

With a sophisticated ROI methodology, the department of commerce can determine what programs worked well and where shortcomings exist. Initial outputs of the data model have already generated insights into how programs are performing. Stakeholders can then make strategic plans of action and target resources in a way that delivers the best possible results.

Future

The tools we developed can be used repeatedly to guide decision-making, performing the same analysis with updated data to track program improvement and/or pinpoint new areas for improvement. This information will also be used to develop policies that benefit workforce program participants and their communities.

Reach out to Resultant to learn how your state can adopt a similar ROI framework that is customized to your specific needs.

Schedule a consultation today!

Building a Repeatable ROI Model for Workforce Success

Story Highlights