Categories: Economic News

Payment by Results, the program that will revolutionize employability in the Colombian capital

  • Through the Secretariat of Economic Development, the Mayor’s Office of Bogotá launches the Pay for Results program, an initiative that will put 22,000 people on the job market; Of which between 12,000 and 18,000 will be women.
  • Invest in Bogotáthe city’s investment promotion agency also joins the efforts of the Secretary of Economic Development by creating a strategy to generate employment and close the gaps in bilingual human talent and for IT companies.

BOGOTA, colombia, November 9, 2022 /PRNewswire/ — Although the unemployment rate has been recovering Bogotá after the decline in economic activity caused by the pandemic, it is still above double digits (11.2%) and several vulnerable populations have even more difficulty accessing the labor market, such as women.

Therefore, with a budget of COP 30,000 million the Secretary of Economic Development launched a financing strategy called Pay for Results. This program has been designed as a competitive process with providers authorized by the National Employment Service, alone or in alliance with entities with experience in populations vulnerable to place 22,000 people in the labor market, of which at least 12,000 will be women.

The model used in this strategy contemplates the payment of an incentive to these labor operators, for each person they place on the labor market, and not just for management, as is usually the case.

Invest in Bogotá, the city’s investment promotion agency also joins the efforts of the Secretary of Economic Development. Isabella Muñoz, executive director of the agency, comments that “in June, a multi-sector employment macro-table was held in Corferias. As a result, 82 companies participated, and 24,126 places were offered to more than 9,000 attendees . With these job fairs. , we connect supply and demand in the city’s labor market, with a special emphasis on closing the gaps for women, youth, people with disabilities and sexually diverse populations.”

Knowing these results, Bogotá developed an approach to recruitment by results with a greater impact on the resources allocated to the employment policy, with the intention of achieving job placement with the implementation of scaled mechanisms that fit the needs of the city.

The Pay for Results program was developed with the Corona Foundation and channeled resources from the Innovation Lab of the Inter-American Development Bank (IDB) to design a results-based financing (RBF) strategy to achieve the insertion goal labor

Taking into account the experience of the Corona Foundation, the BID Lab and the Embassy of Switzerland, an advisory committee was formed that generated feedback with recommendations for the Economic Development District Secretariat of Bogotá for the 2021-2024 strategy.

This committee has compiled learnings that strengthen operational and legal capacity to meet the 2022 workforce goal and to implement learning tools that will increase operator management in 2023.

This program has become one of the most ambitious projects in terms of employment that the Secretariat of Economic Development has had, highlighting the set objective, the population approach and the joint work with the private actors of the ecosystem, and is also innovative in Latin America and the caribbean to focus on job placement.



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