Our firm had the pleasure of advising FIM in the establishment of Työ-SIB, a social impact bond (SIB) to help long-term unemployed people find work. Social impact bonds are a good example of impact investing, which is an increasingly popular form of investment that seeks to achieve social impact in addition to financial gain.
The impact of Työ-SIB will be measured by comparing the income of people who find employment through the project to the predicted income of unemployed people with a similar background. Investors only profit if the people employed through the project earn more than the comparison group. The pay-out has also been graded so that the payment is higher for jobseekers who have more trouble finding work. The investors bear the financial risks of the project, and the public sector only pays for achieved outcomes.
Työ-SIB was commissioned by the Finnish Ministry of Economic Affairs and Employment. The project involves FIM as the programme manager and various employment service providers.
