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🔎 How to encourage businesses to hire people from vulnerable groups? Could the Outcomes-Based Financing (OBF) mechanism help change the situation? Recently, Helvetas Ukraine, the Instiglio team, representatives from the Foreign, Commonwealth and Development Office (FCDO), and the Ministry of Economy of Ukraine discussed new research that examines the potential use of OBF in Ukraine and its impact on the inclusiveness of the labor market. The participants learned about the ministry's experience in using incentives to improve employment for vulnerable populations. They also explored how OBF could complement existing programs to enhance their effectiveness. In Ukraine, programs already exist that encourage businesses to hire people with disabilities, internally displaced persons (IDPs), and other vulnerable groups. For example, as explained by the Ministry of Economy representatives during the meeting, employers are reimbursed for wages paid to IDPs for the amount of the minimum wage for three months, or for six months for people with disabilities. There is also a mechanism for compensating 50% of the actual wage costs for combat veterans and pre-retirement individuals. However, OBF ties financing to specific, measurable results at various stages of employment. This means that an employer is interested not only in hiring a person from a vulnerable category but also in helping them adapt to the new workplace. 💸 Financing is provided not as a one-time payment but in stages, for example, after specialized training for the employee, successful performance over six months, and after one year. As part of the research, experts are analyzing international experience with OBF, the current situation in Ukraine, and specifically the availability of jobs for vulnerable categories. A discussion on the possibilities of implementing OBF with the Ministry of Social Policy has already taken place. We continue to explore the best international practices to make the Ukrainian labor market more accessible and to address the needs of every individual🙌 ℹ️ The research is being carried out by Instiglio and Helvetas Ukraine with support from the Foreign, Commonwealth & Development Office as part of the initiative «Inclusive and Adaptive Workforce Participation – Exploring the Feasibility of Outcomes-Based Financing».