Workforce development programs offer more than jobs—they ignite potential, break cycles of poverty, and generate powerful social returns. By strategically deploying resources, organizations and governments can reshape communities and foster long-term economic mobility.

The Power of Social Returns on Investment

Investments in workforce development consistently deliver high social returns on investment (SROI). For disadvantaged populations, effective programs yield a cascade of benefits including sustainable income growth and broader economic stability. Studies show that participants in targeted training experience wage gains, reduced dependency on public benefits, and improved career prospects.

Consider that every dollar invested in quality programs can produce up to $9.10 in social value, driven by higher earnings, tax contributions, and lower unemployment costs. When public funds flow into evidence-based models, communities reap dividends in reduced poverty and stronger labor markets.

• 123% SROI: REDF’s California social enterprise portfolio yielded more benefits than costs.
• $9.10 return per dollar: Effective skills training programs deliver sizeable economic gains.
• 268% income rise: Participants nearly triple earnings after transitional jobs.
• 3–4X wage multiplier: Global Generation Initiative graduates multiply prior incomes.

Evidence-Based Models Driving Change

Several models exemplify how data and practice converge to uplift individuals and communities. Social enterprises, like those supported by REDF, provide transitional employment for populations facing barriers–from ex-offenders to long-term unemployed residents.

Generation, another leading initiative, equips learners with market-aligned skills and job placement support. Their alumni see remarkable long-term retention and wage gains, underscoring the value of rigorous training and mentorship.

Overcoming Barriers and Measuring Impact

Despite clear benefits, challenges remain. Benefit cliffs can erode net gains when wage increases reduce public assistance. Programs must integrate comprehensive post-placement support to ensure participants thrive beyond initial job matches.

Robust data collection and long-term tracking are essential. Matching administrative records with program outcomes provides credible evidence of causal impact. Pay-for-Success (PFS) financing and WIOA set-asides incentivize performance, aligning funding with measurable job retention and wage growth.

Policy Recommendations for Sustainable Scaling

To achieve population-level impact, public and philanthropic actors should coordinate strategies that expand proven models. Key actions include:

• Boost procurement from social enterprises to create reliable demand.
• Allocate growth capital and technical assistance for scaling operations.
• Embed outcome-based contracts like Pay-for-Success for accountability.
• Invest in data systems for long-term outcome measurement.

Through bipartisan support and innovative financing, workforce development can transition hundreds of thousands into competitive employment each year.

A Vision for Intergenerational Economic Mobility

Beyond individual advancement, effective interventions disrupt poverty cycles across generations. Families gain stability when parents secure livable wages, children access better education, and communities benefit from reduced social service costs.

Philanthropic investments in skill-building amplify impact through mentor networks and entrepreneurship development. By fostering a culture of opportunity and resilience, society cultivates leaders who uplift others and catalyze systemic change.

As labor markets evolve, middle-skill vacancies continue to grow. Preparing the workforce for these roles not only addresses shortages but also paves pathways into emerging sectors and sustainable careers.

Ultimately, investing in workforce development is an investment in our collective future. By harnessing evidence-based practices, aligning incentives, and nurturing talent, we generate transformative social and economic gains that resonate for generations.