![]() “But we are seeing some really positive early returns.” “This is stuff that takes a while to do and is one of the reasons why you have to have some patience in this world of impact investing,” Valdmanis says. In response, Circle of Care now offers a program to train therapists to deal with more complex cases of autism. They also learned that therapists want to gain the skills to handle complicated cases, so that they qualify for more interesting, higher-paying jobs. “We promoted the CEO from one of the divisions to the top of the company based on the feedback,” Valdmanis says. Using the assessment tool, Two Sigma Impact learned that one of its divisions had strong leadership and another did not. The business depends on attracting and retaining high-quality occupational, physical, and speech therapists. In 2021, Two Sigma Impact invested in Circle of Care, a Texas-based provider of pediatric therapy services to patients who are largely from economically disadvantaged homes. ![]() Two Sigma Impact has made it available to any company that wants to measure job quality over time, so that there’s more visibility to what’s required to create good jobs, Valdmanis says. The tool is meant to provide investors with a way of understanding the quality of a company’s workforce, similar to the way a net promoter score informs investors in consumer companies about the perceived quality of a given product or service. “This actually points to very specific things that you can do to address worker concerns and create better jobs,” he says. That allows companies to compare how they’re doing against benchmarks, but it also highlights where companies can take action, Valdmanis says. To measure how a business performs against these four qualities, Two Sigma developed the Good Job Score Assessment Tool, which surveys workers about how their companies are doing.īased on the answers, Two Sigma can provide an overall score for a company, its various divisions or departments, and separate scores across the four qualities. Companies also need to assist workers with career growth and development, and they need to provide the kind of leaders who listen and respond to employees, he says.Īnd finally, companies have to provide workers with “some intrinsic sense of purpose”-meaning the company exists for a reason, Valdmanis says. That means workers are paid appropriately for their work, and receive benefits and scheduling flexibility. ![]() “First, you have to provide your employees with a fair deal,” Valdmanis says. But attrition rates and salaries don’t offer a full picture of what makes for a quality job.įinding no precedent for the right definition, Two Sigma worked with various advisors, including London-based consultant PwC, to come up with one centered on fairness, growth, leadership, and purpose. “Most people think the way to measure good jobs is to look at sorts of indicators like living wages or the attrition rates of a company-which are important metrics,” Valdmanis says, noting they look at those factors, too. He also detailed how the fund has put this tool to work, and found companies that meet its criteria for investment. Penta recently spoke with Valdmanis about an open-source tool Two Sigma Impact helped develop to measure what he says are the four qualities of a good job: fairness, growth, leadership, and purpose. Drawing from its roots at Two Sigma-which uses technology and data analysis to choose investments-the impact fund relies on data to measure how well its companies do at providing those quality jobs. The core of the fund’s investments are in “human capital-centric” companies that use quality jobs to deliver services or products as a way to build better businesses. ![]() Specifically, by focusing on how best to attract and retain workers-which has become a challenge for many companies, particularly since the pandemic started-Two Sigma Impact saw a business opportunity and a social impact opportunity, he says. Where private equity is headed now, Valdmanis says, is “building businesses that are doing something socially productive,” and “doing it with a higher standard around data.” “Private equity, historically, has been thought of more as, ‘let’s go find companies that are bloated and let’s cut them down to size,’ which is different from, ‘let’s go and attract and retain workers,’” says Warren Valdmanis, a Two Sigma Impact partner.
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