Use of profiling for resource allocation, action planning and matching

Abstract

"Profiling is in many European countries part of a customized 'expert system'. These service delivery systems are characterized by 1) profiling as a quantitative (statistical forecasts) or qualitative (structured interviews, capability tests) diagnostic tool to identify clients' risks 2) customer differentiation for giving different customers different access to employment services according to their needs with the aim to target resources. The idea behind customized or personalized services is that individuals differ in their employability and that such employability declines as the duration of non-employment increases. However, in all European Public Employment Services (PES), it's the caseworker who makes the final decision on the services to be provided. This stands in contrast to the US profiling system where 'hard' (statistical) profiling is compulsory for caseworkers and where the results of statistical profiling are the only factor that determines whether a client has to be transferred to further re-employment support.<br> A review of experiences with profiling in seven countries (Australia, Germany, Denmark, France, the Netherlands, Sweden and the US) show no clear trend, but rather diverging developments in relation to the intensity of using profiling and early intervention strategies. The degree of customer differentiation, as well as the degree of coordination between customer segments and integration measures is very dissimilar across countries. Only few PES (e.g. the German BA and the French Pole d'Emploi) follow a coherent and integrated strategy based on profiling, client segmentation and targeted resource allocation.<br> Compared to the situation in the mid-2000s, dynamic profiling, i.e. the regular follow-up of the labour market prospects of clients is nowadays mainstream in most countries. Beyond the aim of predicting client needs, there are additional goals linked to profiling and streaming employment services. In countries like Denmark or Germany where UI and non-insured welfare clients are administered now by a single organisation, the aim of providing a common framework for different customer groups has a high priority.<br> Although there is widespread agreement among researchers and policy makers that prevention and early intervention is the best way of reducing the negative psychological, social and labour market effects of unemployment, only few impact studies have tried to quantify the possible efficiency gains of profiling and early intervention so far. Moreover, there is a general evidence gap in all countries with respect to the impact of different service delivery systems on on/off-flow rates from unemployment or benefit receipt. <br> Based on the country review, a number of lessons for implementation, i.e. implications for caseworkers and PES managers to further develop profiling and targeting systems can be highlighted. How to balance intensive support with a self-help strategy is a crucial challenge for the years to come. The need for differentiation depends very much on the diversity of client groups the PES is in charge of. However, against the background of stretched budgets, the proof of the cost-effectiveness of labour market programmes and early intervention strategies will be a critical factor." (author's abstract, IAB-Doku) ((en))

Cite article

Konle-Seidl, R. (2011): Use of profiling for resource allocation, action planning and matching. (Profiling systems for effective labour market integration), Brüssel, 21 p.