Innovating job activation by involving employers

Abstract

This article explores the nature of innovative employer-oriented activation policies, which aim to influence employers’ willingness to hire or possibly train and guide the unemployed. These policies may focus on responsibilities with regards to activation, which offer services to employers or provide incentives to influence employers’ involvement. Employers may take up a role as client or as co-producer during policy implementation. Qualitative empirical data from two Dutch cities show that employers have diverse motives to become involved: to hire new workers, to lower costs or to enact social responsibility. Actual practice shows mixed results in terms of labour market participation and employer satisfaction. It appears that the active involvement of employers as co-producers increases their willingness to be more flexible concerning their demands and leads to greater satisfaction with outcomes. The consequences of this model for the governance of activation policy are discussed.