What is it? How can it work for our business? Employer Resource Network 1

Have you experienced this in the past 6 months?  Late or absent due to non-work related issues?  Requesting a 401K loan or an advance in pay?  Come to you with a personal non-work related problem?  Having discipline issues at work due to distractions at home?  Had an employee quit due to …a wage increase or loss of public benefits? …difficulty finding daycare? …lack of reliable transportation? Sound Familiar? 2

ERN is an employer-based model:  Consortium of 5 to 10 small to mid-sized businesses  Workforce consists of entry-level, low-skilled or low-wage  Employees generally at under-resourced level, receive public assistance  Low-cost, shared Success Coach Employer Resource Network (ERN) 3

ERN Company Size Small / Mid-size: EE High Skill / Wage: $12.50-$20.00 hr Training Primary Mid-size / Large: EE High Skill / Wage: $12.50-$20.00 hr Training Primary Small / Mid-size: EE Low Skill / Wage: $7.50-$12.50 hr Retention Primary Mid-size / Large: EE Low Skill / Wage: $7.50-$12.50 hr Retention Primary Employee Wage / Skill 4

Defining Under-Resourced Employees “the extent to which an individual or family does without resources” FINANCIAL EMOTIONAL MENTAL / COGNITIVE SPIRITUAL INTEGRITY & TRUST PHYSICAL SOCIAL CAPITAL SUPPORT SYSTEMS RELATIONSHIPS / ROLE MODELS KNOWLEDGE OF HIDDEN RULES MOTIVATION & PERSISTENCE 5

50% of Work First participants return to cash assistance within one year* 60% of longer-term cash assistance recipients sent to Work First return to cash assistance within one year 25% of working families are unable to make ends meet 6.4% unemployment rate in Schenectady, NY (6/30/13)** Lack of Resources Impacts Turnover * Michigan’s Challenge: Helping Low Income Families Attain Self-Sufficiency ** Bureau of Labor Statistics (June 2013) 6

pre- employment pre under- resourced UR living wage LW ERN EMPLOYERS Employer Resource Network Overview social sector Success Coach 7

 Confidential resource  Provides on-site, face-to-face assistance  Conduit to Social Services, community programs, local agencies  Effective solutions for employees related to: Financial / Debt Childcare TransportationHousing Workplace ConflictFamily Challenges AttendanceSubstance Abuse Success Coach – Benefits to Employees More benefits listed on Slide 12 8

Benefit Comparisons Success CoachEAPHR / Manager On-site, meets with employee prior to shift, makes contact with community resource support while employee is working N/A (possible off-site referral) On-site, unable to access assistance for employee; only option might be advance pay (internal “fix”) EX: Employee is faced with loss of transportation; employment threatened. EX: Employee receives a raise; must report to DSS to review benefit changes Success CoachEAPHR / Manager On-site, meets with employee during lunch break; makes contact with DSS while employee goes back to work N/AAllow employee to visit DSS before tomorrow’s shift; employee never shows up for work (discipline/termination?) 9

 Low-cost, shared resource  Improve employee retention  Reduce recruiting and training costs  Increase employee productivity / reduce absenteeism  Reduces demands on HR who have limited connections  Conduit to Social Services, community programs and local agencies  Becomes Manager’s “best friend” Success Coach Return on Investment (ROI) for Businesses & Employers 10

Proposal: Success Coach $40,000/year – 5 to 10 employers sharing the cost $8,000 for 1 share/day each week $4,000 for ½ share/ day each week Consider this: $3,500 = cost of turnover for an hourly employee $5,000 = cost of turnover for a salaried employee $350 = average cost of Success Coach intervention $12,000 = average cost of employee returning to cash assistance ERN / Success Coach See examples outlined Slides

An ERN help find solutions… Employee Stress Childcare Financial pressures DSS benefits Relationship conflicts Aging parents Substance abuse Transportation Housing/Foreclosure Employer Increased productivity Reduced absenteeism HR/manager productivity increases Outsourced social work Increased EAP usage Employer of Choice Increased retention Reduced training cost Reduced recruiting cost 12

Lakeshore ERN (Michigan) Employer Members: C-T-C, Global Technologies, Harbor Hospice, Holland Hospital, Life Circles, Light Corporation & Trendway Partners: AAC Credit Union, Ottawa County DHS, Ottawa County MWA, West Michigan TEAM Success Coach: Chris Way (Ottawa County DHS)  Formed and launched a 1 year pilot in July 2008 with 5 members  258 referrals for 2011/2012 serving 141 distinct employees  Organized under West Michigan TEAM’s 501(C)3 as fiscal agent 13

Lakeshore ERN Program Impact  Top Issues addressed: Auto / Transportation, Counseling, Financial Literacy, Financial Assistance, Food Assistance, Health, Utilities  53% receive public assistance, 47% are beyond the cliff  Retention: 2009/10: 99%, 2010/11: 97% & 2011/12: 98%  Resources Leveraged: $18,714 in 2009/2010, $20,900 in 2010/2011 & $34,925 in 2011/2012  Average ROI in 2010/2011 was approximately 294% and 465% in 2011/2012 (using $3,500 as avg. cost of turnover)  Employers’ have offset ERN investment with reductions in recruiting budgets, EAP, or other cost savings 14