Growing Fairly by Stephen Goldsmith and Kate Markin Coleman

Author:Stephen Goldsmith and Kate Markin Coleman
Language: eng
Format: epub
Publisher: Brookings Institution Press

Hsu’s commitment to those in the program remains deep and realistic. “If you’ve up leveled from the warehouse to engineering, you are entering a brand new and unfamiliar environment. We want to ensure that even if you don’t have a college degree, are a person of color, or are from a different background, you have the on-the-job tools to succeed.”

This sense of realism shows through in separate conversations with both men. The organization’s dedication to helping low-income workers improve their incomes from an average of $18,000 to $85,000 comes with a cautionary note regarding how they position their fellows. Smith tells us that if Pursuit emphasizes the candidate’s poverty background to the employers, they run the risk of stigmatizing their trainees: “It’s telling HR departments to expect someone different. Even though 70% of the people we serve are Black or Hispanic, and almost all reside in low-income communities, for us, it’s about economic mobility. Our audience mirrors the ethnicity of New York City and we present our candidates that way to the employer so as not to taint the first impression. They have the talent, not the résumés or diplomas.”

Organizations like Pursuit face a short-term/long-term tradeoff like that of their clients. Longer-term, more intensive help produces better results that cost more to deliver—but dosage matters. Most of the on-ramps described here require participants to commit many months, often years. They are not quick fixes. Pursuit’s solution to this quandary combines philanthropy with an innovative funding model now used by a few universities.

To provide a fellowship with no loans and no upfront costs, Pursuit fellows enter into an income-sharing agreement, which aligns the interests of Pursuit and the learner. Funded by impact investors, Pursuit fronts the costs of training and career development services. Upon employment, fellows repay Pursuit a percentage of their earnings for a set amount of time. If a learner’s income drops below a certain threshold, or she stops working, she pays nothing. If the program does not produce results, Pursuit bears the direct costs of its failure. Because their incentives are aligned, Pursuit offers participants an additional three years of career support, including mentors from the companies they join.

As board chair Smith puts it:

What really is important about the Pursuit approach is that it’s not one and done.… It’s a journey, you’re going to up level over time. The first one or two steps are to get your first job. But that’s not the end, it’s just the beginning. Some people might want to get a different job or need the support of our community to help them get into another network or learn other skills.

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