J.1.7_Empleando FY19 Annual Report_Revised DEC2019.pdf

Contract No.: AID-522-16-TO-00003

Original Submission October 30, 2019 – Revision Submitted December 10, 2019

This report is made possible by the generous support of the American People through the United States Agency for International Development (USAID). The contents are the responsibility of the contractor and do not necessarily reflect the views of USAID or the United States Government. It was prepared by Banyan Global for the Empleando Futuros Project.

EMPLEANDO FUTUROS

ANNUAL REPORT

OCTOBER 2018 – SEPTEMBER 2019

EMPLEANDO FUTUROS

ANNUAL REPORT

OCTOBER 2018 – SEPTEMBER 2019

Contract No.: AID-522-16-TO-00003

Submitted to: Violeta Guillen Contracting Officer Representative USAID Honduras

DISCLAIMER

This report is made possible by the generous support of the American People through the United States Agency for International Development (USAID). The contents are the responsibility of the contractor and do not necessarily reflect the views of USAID or the United States Government. It was prepared by Banyan Global for the Empleando Futuros Project.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 3

PROJECT OVERVIEW

Project Name Empleando Futuros

Contract Number AID 522-16-TO-00003

Activity Start Date June 2016

Activity End Date June 2021

Prime Implementer Banyan Global

Subcontractor Education Development Center

Geographic Coverage Tegucigalpa, San Pedro Sula, Tela, Choloma, La Ceiba, Villanueva, La Lima

Reporting Period October 1, 2018 to September 30, 2019

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 4

CONTENTS

Acronyms and Abbreviations

1. Executive Summary

1.1 Introduction

1.2 Summary of Results and Key Achievements

1.3 Challenges Encountered and Lessons Learned

2. Activity Implementation

2.1 Submission of Deliverables

2.2 Progress Narrative

2.2.1 Result 1

2.2.2 Result 2

2.2.3 Result 3

3. Collaboration and Knowledge Sharing

3.1 Linkages with other USAID Activities

3.2 Collaboration and Knowledge Sharing with Partner Entities in Host Government and other Donor Agencies

3.3 Collaboration Challenges

4. Integration of Cross-Cutting Issues

4.1 Gender and Social Inclusion

4.1.1 Gender and Social Inclusion Challenges and Opportunities

4.2 Safety and Security

5. Management and Administrative Issues

5.1 Achievemnts, Constraints and Critical Issues

5.2 Personnel

5.3 Adaptation of the Activity

5.4 Modifications and Amendments

6. Monitoring, Evaluation, and Learning

6.1 Performance Monitoring

6.1.1 Result 1

6.1.2 Result 2

6.1.3 Result 3

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 5

6.1.4 Migration

6.2 Data Quality and Verification

6.3 Year 4 MEL Planning

6.4 Collaborating, Learning, and Adapting

6.5 Exteranl Evaluation

7. Financial Information

7.1 Cash Flow Chart

7.2 Budget Details and Notes

7.3 Sub-award Details

7.3.1 Grants

7.3.2 Subcontracting

8. Branding, Communication and Dissemination

9. Sustainability and Exit Strategy

ANNEX 1: PROGRESS SUMMARY REPORT

ANNEX 2: R2 LEADERSHIP PROJECTS

ANNEX 3: R3 GROUP SUMMARIES

ANNEX 4: R3 LESSONS LEARNED

ANNEX 5: PROJECTED VERSUS ACTUAL

ANNEX 6: SUCCESS STORY 1

ANNEX 7: SUCCESS STORY 2

ANNEX 8: SUCCESS STORY 3

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 6

ACRONYMS AND ABBREVIATIONS

APAZ Alianza para la Paz (Alliance for Peace)

BLC Basic Labor Competencies

CADERH Centro Asesor de Recursos Humanos (Human Resources Activity Council of Honduras)

CBT Cognitive Behavioral Therapy

CCICH Chamber of Commerce and Industry of Choloma

CENET Centro Nacional de Educación para el Trabajo (National Center of Education for Work)

CESAL Centro de Estudios y Solidaridad con América Latina (Center for Studies and Solidarity with Latin America)

CLA Collaborating, Learning and Adapting

CONEANFO Comisión Nacional para el Desarrollo de la Educación Alternativa No Formal (National

Commission for the Development of Alternative Non-Formal Education)

COP Chief of Party

COR Contracting Officer´s Representative

DCOP Deputy Chief of Party

DO Development Objective

DQA Data Quality Assessment

E3 Economic Growth, Education and Environment

EDO Education Development Office

EFIS Empleando Futuros Information System

FOROSIDA Foro Nacional de SIDA (National AIDS Forum)

FUNDAHRSE Honduran Foundation for Corporate Social Responsibility

FY Fiscal Year

GBV Gender-based Violence

GIZ German Agency for International Development

HR Human Resources

INE Instituto Nacional de Estadísticas (Honduras Institute of National Statistics)

INFOP Instituto Nacional de Formación (National Vocational Training Institute)

IOM International Organization for Migration

ITC Information Technology and Communications

LAC Latin America and the Caribbean

LGBTI Lesbian Gay Bisexual Transgender and Intersex

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 7

MEL Monitoring, Evaluation and Learning

MESCLA Monitoring and Evaluation Support for Collaborative Learning and Adapting

MoU Memorandum of understanding

NGO Non-governmental organization

PAG Proyecto Aldea Global (Global Village Project)

PBS Place-based strategy

PIRS Performance Indicator Reference Sheets

Q1 Quarter 1

Q2 Quarter 2

Q3 Quarter 3

Q4 Quarter 4

R1 Result 1

R2 Result 2

R3 Result 3

RTE Returned to education

SENAEE Sub-Secretary of Education

SOMOS CDC El Centro para el Desarrollo y la Cooperación (Center for Development and Cooperation)

UNAH National Autonomous University of Honduras

UNDP United Nations Development Programme

UNITEC Universidad Centroamericana de Tecnología (Central American

Technological University)

TVET Technical and vocational education and training

U.S. United States

USAID United States Agency for International Development

WFD Workforce Development

VIP-RA Violence Involved Persons Risk Assessment

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 8

1. EXECUTIVE SUMMARY

1.1 INTRODUCTION

On June 30, 2016, the United States Agency for International Development (USAID)/Honduras awarded Banyan Global a five-year task order to provide professional and technical services for the implementation of the USAID/Honduras Workforce Development (WFD) Activity that is part of USAID/Honduras’ Country Development Cooperation Strategy under Development Objective (DO) 1, Sub-intermediate Result 1.1.2: “Quality services that protect against violence increased.”

Through the WFD Activity, later named Empleando Futuros (Employing Futures), USAID/Honduras’ broader objective is to increase citizen security for vulnerable populations in urban, high-crime areas in Honduras by supporting WFD that will increase income-generating opportunities for youth who are at risk of being perpetrators as well as victims of violence. The WFD Activity strengthens comprehensive workforce readiness services, including job linkages and self-employment, to benefit at-risk youth, including those who qualify for secondary and tertiary services.

On March 30, 2019 the President of the United States announced on Twitter his intention to cut foreign assistance to Guatemala, El Salvador, and Honduras in response to high rates of illegal migration from this region to the United States. This announcement triggered a series of actions that directly impacted Empleando Futuros. In early April 2019, USAID/Honduras requested Banyan Global to prepare prioritized contingency plans that are within the approved workplan but based on the possibility of not receiving any additional allocations of funding. Pending further information, training inputs for Result 1 (R1) were scaled back, resource-heavy activities with the National Vocational Training Institute (INFOP) were postponed and plans for new training groups for Result 3 (R3) were cancelled.

On April 3, 2019 USAID/Honduras also modified the Empleando Futuros agreement to incrementally fund the task order from $14,500,000.00 to $16,055,813.32 (increase of $1,555,813.32) and added municipalities to the scope of work that specifically targeted high-migration communities. Training activities were launched in two additional municipalities, Villanueva and La Lima, albeit with fewer youth than initially projected due to the budget uncertainties. Plans for expansion to other communities were put on hold.

In July 2019 Banyan Global submitted a contingency plan to USAID outlining adjustments in activities and modified projections due to the change in available funds. Formally accepted by USAID in August 2019, that plan indicates that based on the current levels of funding available, project activities can continue through November 2020. In September 2019, Banyan Global submitted the project’s Fiscal Year (FY) 20 workplan. Approval of that document is pending.

The following annual report covers activities from October 1, 2018 to September 30, 2019.

1.2 SUMMARY OF RESULTS AND KEY ACHIEVEMENTS

From October 1, 2018 – September 30, 2019, Empleando Futuros experienced a large expansion of services and achieved significant results, the most important being the training and employment

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 9 of 1,399 youth. Each of the three project results were active in training and conducted staff and organizational development activities, including: registering 3,354 youth formally for R1 training;

completing its 21-month leadership development program for WFD and INFOP leaders; and, 75 youth who have been in conflict with the law completing comprehensive vocational training with 54 either obtaining employment, starting a business or returning to school. Geographically, the project expanded operations to serve youth in two new municipalities, Villanueva and La Lima, to address the pressing migration issue. The summary below outlines key results and achievements by result. The ensuing pages provide more details about those results and the activities that made them possible.

Result 1

• A total of 3,564 youth entered training and 2,285 youth completed training.

• To celebrate youth accomplishments and present youth to the private sector, Empleando

Futuros held five separate graduation ceremonies during the fiscal year for over 1,700 youth in Tegucigalpa, San Pedro Sula, Tela, La Ceiba, Choloma, La Lima and Villanueva.

• A total of 1,399 youth program graduates obtained employment or returned to formal education during the fiscal year bringing the life of project total to 1,601.

• Over the course of FY19, Empleando Futuros has contacted at least 343 potential employers in the seven project municipalities. Of those, 257 different companies have hired project youth.

• The project designed 18 new vocational training curricula, updated six curricula, and created nine new training plans. Thirteen of the curricula and training plans have been adapted by INFOP and/or institutions.

• Empleando Futuros’ plan for a no-cost expansion into five high-migration municipalities was approved and training was expanded to two additional municipalities during Quarter 3 (Q3) and Quarter 4 (Q4) with 121 graduates.

• In response to contextual realities of the market and youth, the project formally modified the Performance Indicator Reference Sheets (PIRS) in Q3 to: adjust completion of training requirements; modify the length and condition of new employment for the indicator; add “return to formal education” as an indicator; and other minor adjustments.

• As part of the project’s follow-on and job insertion plan, in September 2019, Empleando Futuros conducted four simultaneous job fairs in four separate cities reaching at least 600 youth and involving over 30 businesses. Numbers of job placements attributed to the fairs will in provided in future reports.

• The project signed Memorandums of Understanding (MoU) with DIUNSA, Grupo Monge and Grupo INTUR to cooperate in youth training and job placement.

Result 2

• As part of a leadership development program started in FY19 to increase abilities to develop and lead market-driven programs, twenty-one of the 25 members of the Leaders for Workforce Development Change program earned certification for the “Macro- Competency in Management of Market-Driven Workforce Development Programs” and were awarded certificates on March 28, 2019 in a public ceremony. The projects completed by the leadership program members have far-reaching impacts on INFOP and the national workforce development system.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 10

• Forty-seven INFOP instructors completed a twenty-hour course in how to integrate Information Technology and Communications (ITC) within their technical courses.

Training was implemented at INFOP in Tegucigalpa through two separate courses as is part of INFOP’s modernization plan.

• As a result of Empleando Futuros training and support, INFOP created 25 new curricula, 30 modular programs, and nine new competency guides (total 64) to better align their services with the market.

• With technical support from Empleando Futuros and financial and technical support from the European Union, INFOP created a Job Prospecting Office to help guide future decisions regarding which sectors they should train participants in.

• Empleando Futuros hosted or attended at least six coordination meetings with international donors to discuss strategies and improve coordination of services with INFOP.

• Empleando Futuros conducted an evaluation and planning workshop and later completed an annual review of INFOP’s progress towards becoming a more market-driven institution.

From the 2018 evaluation, INFOP’s score slightly decreased from 2.01 to 1.85 on a scale of 0-4. See Section 2.2.2 RESULT 2 for more information.

Result 3

• Between late FY18 and early FY19, 113 youth who have been in conflict with the law started training. Of those, 93 formally registered for the program and 75 completed all training phases.

• By the end of the year, of the 75 youth who had completed training, 43 had started new entrepreneurships, seven were employed and three have returned to the formal education system. This is a 71 percent success rate.

• Empleando Futuros conducted a stakeholders’ conference in Quarter 2 (Q2) with government officials from the education, security and judiciary sectors, along with universities, non-governmental organizations (NGO) and others to share and document lessons that would influence the project’s training and implementation design.

• Empleando Futuros launched a training program inside the Jalteva male juvenile detention center near Tegucigalpa that could serve as a model for future interventions.

• Demonstrating that youth with penal records can obtain formal employment, ten project beneficiaries completed two-week practicums at one of Tegucigalpa’s top coffee shops and two of them were offered employment immediately following the practicum.

• The project piloted a new entrepreneurship curriculum for tertiary youth through working with the National Center of Education for Work (CENET). This activity is linked to R2 and provides a low-cost and practical training option for youth who have limited access to resources.

• Empleando Futuros created a follow-on guide for entrepreneurship activities to be used by program leaders after formal training ends.

• Twelve tertiary services leaders were trained to implement the Empleando Futuros R3 methodology in Q2-Q4 enabling greater project sustainability.

• One Empleando Futuros staff and one Orphan Helpers staff completed a certificate program led by UNDP and the National Autonomous University of Honduras (UNAH) on

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 11

“The Culture of Peace from the Perspective of Secondary and Tertiary Prevention” and later incorporated lessons from this course into training activities with youth.

Other

• Empleando Futuros revised the project’s indicators and received USAID approval for those changes on April 15, 2019. Changes included two new indicators specifically addressing migration.

• Banyan Global received the draft Empleando Futuros R1 Performance Evaluation from the Monitoring and Evaluation Support for Collaborative Learning and Adapting (MESCLA) and submitted comments. MESLCA submitted the final report to USAID in Q4.

• As part of the project’s gender inclusion strategy, Empleando Futuros conducted five workshops on masculinities with the six implementing partners’ staff in Tegucigalpa, San Pedro Sula, Choloma and La Ceiba. Replication workshops were conducted by each implementer as part of the plan to improve local capacities.

• USAID recognized Empleando Futuros with the 2019 Collaborating, Learning and Adapting (CLA) award based on the project making an evidence-based project modification in 2018 and 2019.

• The Empleando Futuros Contracting Officer’s Representative (COR) at the time, Ana Rubi, was selected by USAID as the small business COR of the Year by USAID.

• The project leveraged $213,568 in governmental and private sector support for training activities during the year.

• The project successfully hosted and/or participated in five high-profile visits by U.S.

government officials: USAID’s Deputy Assistant Administrator in the Bureau for Economic Growth, Education and Environment (E3), the USAID Deputy Assistant Administrator for Latin America and the Caribbean (LAC); two Senate Appropriations Committee staff members; USAID’s Director for the Office of Central America and Mexico; and US Congressman Peter Welch.

• Empleando Futuros participated in USAID’s “16 Days of Activism” campaign to prevent gender-based violence (GBV).

1.3 CHALLENGES ENCOUNTERED AND LESSONS LEARNED

Empleando Futuros is both a WFD Activity and learning project that provides evidence to USAID that can be used for future programs. Because of this, it is important to recognize and document key challenges encountered and lessons learned. General project challenges and lessons are listed below with those specific to each result listed in the corresponding sections.

The overriding challenges faced this year could be categorized first as political and second as addressing the high number of Hondurans migrating to the United States. These include:

• Scheduled funding for USAID/Honduras was withheld during FY19. Empleando Futuros needed to adjust and curtail numerous activities including: scaling back the number of youth trained in R1; scaling back planned expansion activities into new R1 communities linked to migration; cancelling numerous INFOP support activities through R2; ending the R3 pilot program after only working with 100 youth instead of the planned 400; and initiating an operational cost cutting and staff reduction plan. Despite these challenges, Empleando Futuros FY19 Annual Report, October 2018 – September 2019 12 there are some implementation lessons. The lack of funding required Empleando Futuros to prioritize job insertion over training new groups. This focus was helpful with job insertion and may suggest that future programs also emphasize job insertion numbers more than the number of youth reached by training. The lack of funding for many INFOP activities has led to a greater focus on sustainability activities such as transferring Empleando Futuros components and methods for future INFOP use. Finally, considering the successes of the R3 pilot, the budget cuts created a greater emphasis on follow-on services for youth allowing the project to invest more into that phase of activities, although it is deeply regrettable that another 300 tertiary youth will not receive comprehensive vocational training and other support services. Lessons being learned from the follow-on work will be beneficial to future projects.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 13

2. ACTIVITY IMPLEMENTATION

2.1 SUBMISSION OF DELIVERABLES

As of September 2019, Empleando Futuros has submitted the following deliverables.

Table 1: Submission of Deliverables

Deliverable

Submission Date 1 FY18 Annual Report October 30, 2018 2 Migration Plan January 17, 2019 3 FY19, Quarter 1 Report January 31, 2019 4 Budget Realignment Request (Revised) February 12, 2019 5 FY19 Quarter 2 Report April 30, 2019 6 FY19, Quarter 3 Report July 30, 2019 7 FY20 Workplan and Year 4 Costed Workplan August 31, 2019

2.2 PROGRESS NARRATIVE

The following sections detail progress for the three project results over the past year.

2.2.1 RESULT 1

During Empleando Futuros’ first year, the major focus was developing and adapting market-driven training materials as well as training implementing partners. In year two, the focus shifted towards recruitment and training of the first groups of beneficiaries followed by adjustments to better align training with the youths’ realities and employers’ needs. Initial results were lower than projected. Duriing the first quarters of year three, Empleando Futuros found ways to shorten and better integrate training components without sacrificing quality. Better communication with beneficiaries regarding expectations within training and in the marketplace also contributed to fewer dropouts, better prepared youth and higher job insertion rates. With more and more experience, implementing partners also began to adapt to the faster rhythm required to train large numbers of youth and respond to the needs of employers.

Result 1

At least 7,500 at-risk youth will have benefited from comprehensive workforce development services with improved job placement and self-employment rates; and, At least 50 percent of youth who received services from the WFD Activity will have obtained new or improved employment, including self-employment.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 14

During FY19 the project increased in numbers, quality and geographic coverage. In Q2, Banyan Global presented a no-additional-cost plan to USAID to expand training activities into five municipalities in northern Honduras where migration rates are high: Villanueva, La Lima, El Progreso, Santa Cruz de Yojoa, and Puerto Cortes. The plan was approved and in early Q3, the project began new groups in Villanueva and La Lima. Plans to expand to the other municipalities were put on hold due to the budget situation. The programs in the new communities were received enthusiastically by local businesses and authorities. In La Lima, the mayor agreed to support some youth transportation costs, helped liaison with local businesses and hosted the first program graduation.

Table 2: R1 Key Achievements Youth Registered, FY19 3,564 Youth Completing Training 2,285 Youth Obtaining Employment or Returning to Formal Education

1,399

New Curricula or Training Plans Developed or Updated

MOUs Signed 3 (DIUNSA, Grupo Monge, and Grupo INTUR) New Communities Served 35, including two new municipalities Municipalities Served

Tegucigalpa, San Pedro Sula, Choloma, Tela, La Ceiba, Villanueva and La Lima

Percentage Male/Female Participants 60% Female, 40% Male Percentage Primary/Secondary/Tertiary Prevention at Enrollment

45.3% Primary, 15.8% Secondary, 12.3% Tertiary*

*Twenty-six-point six (26.6) percent did not complete the Violence Involved Persons Risk Assessment (VIP-RA).

Based on feedback from youth and employers, Empleando Futuros made some significant adjustments to the training model. Overall training times were shortened, new pathways to graduation were created, training methodologies were adjusted to be more effective and more in-line with employer needs and a new customer service curriculum was created.

Important Achievements

• Improvements and adjustments in training methodologies.

• Increase in commitment, expertise and market-focus by project and implementing partner staff.

• Empleando Futuros staff trained in customer service, CBT, and socio-labor orientation.

• Greater confidence expressed by the private sector.

• Job insertion rate increased from 26% in Y2 to 51% in Year 3.

• Expansion into two new municipalities.

• Eighteen (18) new curriculum and nine new technical training plans.

• Development of a Customer Service course as key part of training.

• Better integration of CBT in life skills training, mentoring, and socio-labor orientation.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 15

FY19 could be classified as the year when these adaptations resulted in higher quality and more efficient and effective results. These adaptations were due to: increases in commitment from implementing partners; improvements in how implementers engaged employers; improvements in technical training based on feedback from employers; adaptations of key components based on feedback from youth, implementers and employers; the development of tailor-made training programs for businesses; better targeting/recruitment of youth based on specific employment opportunities; more effective work by the labor advisors and job insertion specialists; and increased confidence by private sector. Most importantly, the number of youths who obtained employment or returned to formal education increased 130 percent in the last two quarters of FY19 as compared to the previous three quarters. Between FY19 Q3 and Q4, Empleando Futuros averaged 485 youth obtaining employment or returning to school per quarter. Between FY18 Q4 and FY19 Q2, the previous average per quarter was 211 youth.

As noted in the table below, there were significant increases in FY19 in all major R1 categories:

Table 3: Summary of FY 3 Key Training Statistics

Description FY2018 FY2019 Difference % Increase

Youth Enrolled, FY19 Q2 2,681 3,564 833 33%

Youth Completing Training 396 2,285 1,889 477%

Youth Obtaining Employment/Returned to Formal Educaiton

203 1,399 1,196 589%

New Communities Served 18 53 35 194%

Municipalities Served Tegucigalpa, Tela, San Pedro Sula

Tegucigalpa, San Pedro Sula, Choloma, La Ceiba, Villanueva y La

Lima

New Groups

During FY19, Empleando Futuros registered 3,564 youth for training with 2,748 completing Phase 1, which corresponds to a 77.1 percent retention rate.1 The retention rate for youth completing all training (basic elements plus technical training) for the year is expected to exceed 64.11 percent

1 In April, the PIRS were adjusted to allow new models of training in addition to the traditional Phase 1 + Phase 2 model. The EFIS system continues to measure the number of youths who complete Phase 1 as defined as completing training in life skills, BLC, and mentoring. Measuring retention rates based on this definition allows the project to compare training across different implementers. Although some use an integrated or customized model, all youth must complete training in life skills and BLC and all must have a mentor.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 16 but this includes some youth who remain in training at the end of the fiscal year. For example, the National Commission for the Development of Alternative Non-Formal Education (CONEANFO) figure is 0 percent due to youth not having an opportunity to complete all training before the end of the fiscal year. With a range of less than 10 percent between the top and bottom performing implementers, the conclusion is that all implementers were successful. In some cases, integrated service groups did have higher retention rates.

The following chart provides examples of youth completion rates of the traditional Phase 1 components, which includes: life skills, basic labor competencies (BLC) and mentoring.

Table 4: Youth Registered and Completing Phase 1 Training

Implementing Organization

Registered Completed Retention Rate

Libre Expresión 728 601 82.55%

Global Village Project

(PAG)

448 378 84.38%

Center for Studies and Solidarity with Latin America (CESAL)

1,167 884 75.75%

National AIDS Forum

(FOROSIDA)

354 280 79.10%

Center for Development and Cooperation

(SOMOS CDC)

248 206 83.06%

CONEANFO 68 0 0.00%

Cámara de Choloma 447 346 77.40%

DIUNSA 50 43 86%

Totals 3,564 2,748 77.10%

New programs in Villanueva and La Lima were those with the highest retention rates, by city. This is believed to be attributed to the lack of other opportunities in those communities as compared to the other cities. In Tegucigalpa, a greater percentage of the training programs offered by Empleando Futuros were “integrated” services which also contributed to higher retention rates.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 17

Table 5: FY19 Youth Trained by City

City Registered Completed Retention Rate

Tegucigalpa 1,946 1,527 78.46%

San Pedro Sula 437 341 78.03%

La Ceiba 599 403 67.28%

Choloma 447 356 79.64%

Tela 0 0 0.00%

Villanueva 59 54 91.53%

La Lima 76 67 88.16%

Totals 3,564 2,748 77.10%

Training Models and Impacts on Employment

In direct response to the Honduran job market and the demands of employers, Empleando Futuros increased its recruitment of youth who have completed high school/secondary school.2 Each year, more urban employers are only seeking candidates who have completed a high school degree due to: the increasing complex nature of entry level jobs; the need for reading and math skills, greater maturity and customer service skills in those jobs; the perception by Honduran businesses that the local public education system is not keeping pace with job requirements and instead has taken backward steps in job preparation; and the increased competition for jobs.

To respond to the needs of employers and opportunities, Empleando Futuros adjusted its training models. When companies made formal agreements to hire specific amounts of Empleando Futuros graduates, the project developed customized training plans for those companies. The customized or tailor-made program starts with an identified need by a company

2 During FY19, 67 percent of all youth registering for training had completed high school as compared to 52 percent in FY18.

TO RESPOND TO THE NEEDS OF

EMPLOYERS AND OPPORTUNITIES,

EMPLEANDO FUTUROS ADJUSTED ITS

TRAINING MODELS. WHEN COMPANIES

MADE FORMAL AGREEMENTS TO HIRE

SPECIFIC AMOUNTS OF EMPLEANDO

FUTUROS GRADUATES, THE PROJECT

DEVELOPED CUSTOMIZED TRAINING

PLANS FOR THOSE COMPANIES.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 18 or group of companies. Working with the companies, Empleando Futuros adjusts training plans to the specific needs of the jobs they seek to fill. In some cases, such as with DIUNSA and Grupo Monge, these companies then participate in the pre-training screening of youth before they are admitted into the program. This assures that the project is recruiting youth who meet the USAID program beneficiary requirements, that the company has already agreed to hire the youth if he/she completes training, and that the youth will have a job following training.

The project also developed an “integrated services model” to meet the needs of those high-demand sectors where no formal agreement existed with a large-scale employer. Most of these occupations also require candidates who are 18 years old and have at least a high school degree.

The integrated services model consists of: (1) at the start of training, selecting youth based on their expressed desire to work in a specific occupation and on the condition that they meet the minimum age and education requirements of the prospective employers; (2) instead of training youth by phases, the project integrates life skills, BLC, technical training and other components into a single process; and (3) intense eight-hour training days in centralized locations instead of four-hour days in communities followed by technical training in centralized locations. This model reduced the overall training time, created more homogenous training groups, allowed for more focused life skills and BLC training related to a specific occupation, and increased the interest level of the youth in the program. The table below demonstrates the differences in job insertion rates between the traditional project model and the two new models explained above.

Table 6: FY19 Youth Trained and Inserted by Training Model Training Model Youth

Graduated Youth Inserted Percent

Traditional Model 1,188 670 56% Integrated/Customized or Trailor-Made Model

1,097 628 57%

Totals 2,285 1,298 57%

As seen above, when training is better oriented towards the need of a sector or business, and when youth are recruited for those specific occuations, job insertion rates increase. Related to the job insertion rates are other benefits of the integrated services and customized models, including:

• A greater focus on employment throughout training and a unified message throughout all components;

• Higher quality training by the implementing organizations and more focused supervision of their work;

• Better screening of youth through recruitment based on specific job/occupation requirements;

• Reduced training times by integrating training components and focusing on specific employer requirements; and

• Reduced dropouts.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 19

Occupations vs Employment Rates

Adjustments in the training models were also linked with a better focus on the occupations based on job insertion rates. The chart below lists the top occupations, by number of youth trained as compared to the number of youth inserted.

Chart 1: Top Occupations by Number of Employees

Numerically, the top five areas for training and job insertion are:

1. Customer Service: 365 youth trained/194 inserted (53 percent)

2. Events and Banquet Operator: 211 youth trained/127 inserted (60 percent)

3. Sales Assistant: 215 youth trained/104 inserted (48 percent)

4. Industrial Operator: 173 youth trained/94 inserted (54 percent)

5. Product Promoters: 172 youth trained/93 inserted/ (54 percent)

When determining new training areas, Empleando Futuros not only reviews job insertion rates but also considers the popularity of certain occupations with youth, the time and cost to train in one occupation as compared to another, and the possibility of over-saturating the market. Of the top five training areas as determined by the number of youth trained, only sales assistant has a less than 50 percent job insertion rate at 48 percent.

By percentage of youth inserted compared to youth trained, the top five are:

1. Carpenters: 87 percent

2. Digital Marketing: 69 percent

Top Occupations by Number of Employees

Graduated Youth Inserted Youth

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 20

3. Car Mechanics: 64 percent3

4. Events and Banquest Operator: 57 percent

5. Textile Production Operators: 59 percent

Systematizing Vocational Training

Changing the mindset of vocational training organizations is both a challenge and an opportunity.

Traditionally, these organizations have focused more on training and less on market connections and job insertion. When they do focus on job insertion, their methods and pace of responding to employers are not in line with the pace of the business world. For example, an employer may call late on one day requesting 20 candidates the next day for job interviews. While this may seem like an unrealistic request, vocational organizations must realize that this is an opportunity and that the businesses have other options, mainly thousands of out-of-work Hondurans willing to wait in line for a job interview. Therefore, vocational centers must develop systems that allow them to respond to these requests in a timely manner. The centers must also be willing adapt their training courses and teaching methodologies to be better in line with employer needs. Fortunately, by focusing on job insertion and not just on vocational training Empleando Futuros has facilitated many significant changes with the vocational centers that have positively impacted the project job insertion rates and should have positive impacts beyond the life of the project. These include:

• Greater knowledge and management of new tools and methodologies for training based on a fast-changing labor market;

• Development of new market-driven curricula and training plans including supermarket operators and convenience store staff with new sub-tracks based on changing market needs;

• Increased cooperation between INFOP and vocational training organizations Human Resources Activity Council of Honduras (CADERH) and Libre Expresión such as providing training spaces, instructors and other basic services. Twenty-four (24) training workshops were conducted this year in conjunction with INFOP’s Popular Workshops Unit;

• Thirty-seven (37) vocational instructors trained with personalized follow-on plans;

• Thirty-two (32) instructors and private sector human resources (HR) leaders trained in how to lead customer service courses; and

• Training of technical staff in socio-labor orientation and cognitive behavioral therapy

(CBT).

Responding to Migration Drivers

Why Do Honduran Youth Choose to Migrate?

Irregular migration from Honduras to the United States is driven by many factors. A local analysis of statistics from the U.S. Department of Homeland Security/U.S. Customs and Border Protection, Honduras Institute of National Statistics (INE), Honduran Police, U.S. Geological Survey, Honduran coffee prices, and Honduran population surveys identifies six key drivers of migration

3 For the top three occupations in terms of job insertion percentage, less than 20 youth have been trained in each area.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 21 in the country - high homicide rates, family ties, economic factors, lower coffee prices (leading to economic downturn), drought, and crime / corruption.

A closer analysis of these drivers shows how they are related and impact specific populations of Hondurans. For example, the same research shows that there is a direct correlation between higher homicide rates and higher levels of irregular migration - municipalities with higher homicide rates have higher irregular migration flows. Additional research shows that between 2011 and 2016, each additional homicide per year led to roughly four additional unaccompanied minor apprehensions at the U.S. border over the period of study4. Findings from the Latin American Public Opinion Project’s Americas Barometer survey shows that the intention to migrate was higher for those who had been asked to pay a bribe by the police or government than for those who were not asked, and also higher, for crime victims than for non-victims.5 Furthermore, according to the Government of Honduras’s National Center of Social Service Information between 2016 and 2018, more than 90 percent of returned migrants listed economic factors as a reason for migrating.6

According to a report published by the Inter-American Dialogue in February 2017, just over one in four Honduran youth (27 percent) neither works nor studies.7 A May 2019 article in La Prensa reports that the Honduran National Statistics Institute (INE) found that national rates of underemployment (visible and non-visible) in Honduras in 2018 exceeded 60 percent for both urban and rural populations.8 A local analysis also indicates that the average age of attempted migrants is 21.9 years, with the modal age being 17 years old. The 15-year age period in which Hondurans are most likely to migrate is between ages 15-29.

Targeting Likely Migrants Since its beginning in 2016, Empleando Futuros has targeted youth who neither work nor study, are from the most violent neighborhoods within the most violent municipalities and are between the ages of 16-30. Through a risk analysis applied at the beginning of each training group, the project has also determined that in FY19, over 40 percent of the project’s beneficiaries are considered at a higher risk of becoming a victim of violence or a perpetrator of violence than the typical youth living in the same vulnerable communities. While not tracked until 2019, anecdotal evidence suggested that many Empleando Futuros training groups contained at least one to two youth who had previously attempted to migrate to the United States. In April 2019, the project began tracking specific migration indicators. Of all beneficiary youth surveyed since April 2019,

22.4 percent have indicated an intention to migrate to the United States within the next three years and almost eight percent attempted to migrate to the United States within 12 months of joining the

4 Clemens, Michael. “Violence, Development, and Migration Waves: Evidence from Central American Child Migrant Apprehensions – Working Paper 459.” July 2017.

5 Latin America Public Opinion Project, AmericasBarometer. “Honduras 2019 AmericasBarometer Special Topic Report: An Analysis of Emigration Intentions among Hondruas.” June 2019.

6 National Center of Social Service Information (CENISS), retrieved from < http://ceniss.gob.hn/migrantes/ > on November 8, 2019.

7 Orozco, M., & Valvidia, M. (2017). Educational Challenges in Honduras and Consequences for Human Capital and Development. Washington, DC: The Dialogue.

8 Danilo, D. A. (2019, May 17). Tasa de subempleo invisible en Honduras alcanza casi el 50%. La Prensa. Retrieved from https://www.laprensa.hn/economia/1285343-410/tasa-subempleo-invisible-honduras-alcanza-50 http://ceniss.gob.hn/migrantes/ https://www.laprensa.hn/economia/1285343-410/tasa-subempleo-invisible-honduras-alcanza-50

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 22 program.9 Starting in June 2019, Empleando Futuros began working in collaboration with the Honduran Ministry of External Relations to provide training opportunities for recent migration returnees who fit the program’s general profile.

Addressing Migration through Comprehensive Employment Training During FY19, Empleando Futuros requested and gained authorization to expand its training to up to five new municipalities with high migration rates in northern Honduras. Activities in two municipalities were launched while activities in the other three were put on hold due to the budget situation. The project also included two migration indicators in its revised PIRS and also reports to USAID quarterly on other key migration relation statistics.

In addition to targeting those youth more likely to migrate or who have attempted to migrate, Empleando Futuros offers a comprehensive vocational training package to youth with job-placement support. The package includes training in: life skills; applied math, reading, and analysis; job preparation; and market-driven technical training. It also includes one-on-one confidential mentoring services for youth and integrates CBT throughout the program. Upon completing training, youth receive personalized job counseling, placement services, and follow-on support for up to 12 months through a job advisor. This combination of market-driven vocational training and personalized attention to youth is what makes a significant impact. The goal for each individual youth is to help them find and keep a good job or return to school so that they may pursue their long-term career interests, improve the conditions in their communities, and make Honduras a more prosperous and secure nation.

Tools and Methods for Job Insertion

Empleando Futuros conducted multiple job insertion activities for youth, including:

• Job Fairs. See Private Sector Engagement section below.

• Assessments and Roll Plays. Empleando Futuros obtained and applied job assessment tools and conducted roll plays with youth to better prepare them for interviews with employers such as Hotel Intercontiental, Grupo UNICOMER, Grupo Monge and others.

• Job Resource Centers. Empleando Futuros created spaces in its offices in Tegucigalpa and San Pedro Sula where beneficiaries can have access to laptops and internet connections to apply for jobs, work on their resumes, complete online certification programs or take tests required by some employers. On a rotating basis, technical staff are assigned to coach and guide youth during this process.

• Follow-on Guidance and Supervision. The project developed minimum standards and guidelines for follow-on activities and multiple tools used by labor advisors to help support and track job insertion activities.

• Professional Clothing Closets. During the year staff began collecting individual donations to create “closets” for youth who needed access to professional clothes for job interviews.

9 As demonstrated in the MEL section, evidence is suggesting that Empleando Futuros is having a positive impact on “intention to migrate.” At the start of training, 22.4 percent of youth indicate an intention to migrate within the next three years. Measured again after three months of training, the percentage dropped to 17.9 percent - a 4.5 percentage point change.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 23

In Q4, staff from BAC-Credomatic donated over 200 articles of men’s and women’s clothing. During the simultaneous job fairs, staff managed a booth and provided clothing to youth who needed it, while also offering grooming tips.

Private Sector Engagement and Strategic Alliances – Job Insertion

Strategic Alliances Throughout FY19, Empleando Futuros deployed a series of activities and strategies to engage the private sector. As a result of these activities, 343 companies were engaged a different levels with a goal of achieving youth job opportunities and youth employment on both large and small scales. Recently the project has worked to build alliances with the Sub-Secretary of Education (SENAEE) in the “Regional Employment Tables” in hopes that SENAEE will refer project beneficiaries to companies with expressed needs.

Building and Maintaining Contacts:

Throughout the project, Empleando Futuros has worked to build private sector relations at different levels within the companies. The Chief of Party (COP) and Deputy Chief of Party (DCOP) try to create opportunities with senior executives at companies with the potential to hire high numbers of youth. They utilize project led events, participate in USAID and US Embassy events, and build on references from other company leaders to create these opportunities. The technical director and the strategic alliances manager also work to open doors with large and medium sized employers through both professional and personal contacts. Other members of the program staff also open employer doors through personal and business contacts and then refer those contacts to the technical director and strategic alliances manager. Staff from the vocational centers are also charged with finding opportunities for youth and inserting youth into jobs, while the labor advisors build contacts through their networks.

Once contacts have been established and depending upon the size of the company and the type of relationship established, Empleando Futuros assigns a staff member or labor advisor to serve as the project’s chief liaison with that company. This builds accountability and avoids duplication of contacts and efforts. Coordination meetings are held with the vocational centers to review contacts, share tips and avoid duplication.

The process from initial contact to eventually having a youth hired in medium and large companies almost always requires working at multiple levels within the companies. Senior leaders of large companies seldom are involved in entry-level hiring decisions and so they refer project staff to their HR directors. In large companies, HR directors then pass along contacts to their HR assistants who typically lead these processes. HR assistants and directors must also work with store or department managers who often give the final approval in hiring decisions. Empleando Futuros

Highlights

• 343 companies engaged and 257 companies hiring youth.

• Twenty-nine (29) private sector engagement events or activities with more than 60 companies, each with a potential to hire 10 or more beneficiaries.

• Four simultaneous job fairs in four cities for over 600 youth and with over 30 companies.

• Support from banks to train in financial literacy.

• Development of a Job Resource Center in project offices.

Empleando Futuros FY19 Annual Report, October 2018 – September 2019 24 has learned that it must cultivate relationships at more than one level of a company in order to be a success. Senior leaders provide direction to staff to consider project candidates but any person along the chain might create a roadblock based on perceptions of working with at-risk youth. The project has also learned that each company is different and so the project must take a personalized approach with each company.

In terms of project management, staff and implementing partners must be ready to respond to last minute company requests, must learn the nuances of the types of candidates they hire, and build a trusting relationship. Any time a youth is hired, his or her performance in the company can either open or close doors for other project beneficiaries. Staff solicit feedback from supervisors and HR managers to support youth in their transition to work but to also make improvements in future processes.

Over the course of FY19, Empleando Futuros has contacted at least 343 potential employers in the seven project municipalities. Of those, 257 different companies have hired project youth. The following chart shows the distribution of youth hired per company:

Table 7: Youth Hired per Company Employees Companies

50+ 3 25-49 3 15-24 7 5-14 55 <5 189

Total 257

As demonstrated above, most youth are hired in small numbers by the companies. Extensive efforts are made by project staff to increase mass hiring by companies, but these require time to build trusting relationships and work through the processes needed to create a steady pipeline of qualified candidates. Too often, companies that have established recruitment systems or procedures are not willing to give those up and be replaced by the project. It is understandable that some companies may not feel confident that the services or processes by the project will continue into the future. Project staff invested between 18-24 months to build relationships with DIUNSA and Grupo Monge before larger numbers of youth were hired. Typically, businesses want to hire one or two youth and see how well they do before discussing large numbers for recruitment.

Engagement Events Throughout the year, Empleando Futuros held at least 29 different events to meet with groups of employers to further establish relations with the private sector and better insert youth…