The Industrialization of Social Services: the Effects of a For-Profit Provider on Workfare

Abstract

The effects of neoliberal practices on social policy decisions continues to favor a form of privatization in which corporatized marketplace practices are the guide for social institutional operations. One effect of this has been an increase of marketplace organizations as operators of social services programs, including welfare-to-work programs. These organizations adhere to the prevailing trends in business community for profit making, while ostensibly following the principles of welfare-to-work regulations for service delivery. However, the practices introduced by pursuing profit can conflict with the recognizing all the goals of workfare as outlined in the federal policy of TANF or the Temporary Aid for Needy Families. Under these regulations, providers are charged with assisting welfare recipients receiving cash support in addressing personal barriers to economic stability and in gaining employment intended to provide a catalyst to economic stability. This research examines a corporate social services provider, the practices instituted by its leaders, and the effects that those practices have on the staff of the welfare-to-work center and their clients. Specifically, this examines how the links between profit making and the statistical performance assessments of state funding agencies influenced an operational model, analogous to the manufacturing center for cheap labor. The emphasis on quick workforce attachment strategies exceeded the state's performance measures and allowed the maximization of profit; however, this research determines that these strategies denied workfare clients the services that they and the state expected them to receive.