December 15, 2022
Central to Advantage Capital’s thesis is, if you didn’t measure it, you didn’t do it. We are continuously working with our portfolio to define, track and verify economic performance alongside community impact. And year after year, our meticulous data tracking and measurement demonstrates the companies we invest in, and the entrepreneurs behind them, continue to drive meaningful change within their communities.
In all our analysis, job quality continues to be our north star and prime indicator of impact. We believe when people have quality jobs, they have the resources required to support their families, along with the incentive to stay with a company longer and within a community. And, as access to job opportunities grows, the local economy grows with it.
Today, our portfolio companies’ ability to drive and deliver economic advancement for underserved and overlooked areas is increasingly evident.
Responses from our recent survey of more than 160 portfolio companies reveal job growth remains robust with 13,780 jobs supported, 5,229 created and 4,080 projected to be created within the next 12 months. Our average company full-time wage remains higher than the national average at $57,069, and job quality and accessibility continue to be driving forces among our investments.
So, let’s dive deeper into the data.
Key Metrics Driving Impact
First and foremost, we must get grounded in our most meaningful metric: quality job creation and preservation. Quality jobs are defined by (1) better than living wage for the area, (2) access to a full suite of benefits, (3) opportunity for upward mobility and wage growth, and (4) the availability of wealth creation programs like 401ks – all intended to empower family stability and economic independence.
So, with quality jobs as our north star, we identify the core metrics that ultimately deliver against that objective. When we drill down to the most impactful household and community outcomes, we specifically examine job accessibility and training opportunities, as well as access to health benefits and wealth creation programs.
When we take an overall view of the survey numbers, our portfolio companies’ performance is impressive:
• 98% of employees receive health benefits
• 96% of companies offer jobs accessible to those without a college degree
• 95% of employees have access to wealth creation programs such as a 401(k)
• 80% of employees have access to training
• 13% of companies report that wages allowed new employees to replace one or more public assistance programs.
These baseline measurements are important for a number of reasons. According to the Bureau of Labor Statistics, the unemployment rate for those without a college degree is nearly twice as high as those with a college degree. By creating jobs that do not require college education, we are expanding employment opportunities for the historically and consistently overlooked non-college degree cohort. Additionally, when you combine job accessibility with on-the-job training, you provide people with valuable skill sets that lead to more avenues to achieve career mobility.
Still, the availability of a job and access to resources must always be underlined by good wages, benefits, and wealth accumulation. With nearly half of adults saying they have difficulty affording health care costs and a quarter of adults lacking a retirement plan, these kinds of benefits have the capacity to uplift families and offer a renewed sense of livelihood – especially in distressed areas across America.
For us, analyzing the data paints the impact picture. We need to verifiably know we are achieving the outcomes we wish to achieve. In addition to baseline accountability, we are acutely aware that data at every touchpoint ensures we are indeed doing what we say we are doing. We are pleased to see our portfolio companies and the entrepreneurs behind them continuing to be stewards of impact by creating quality jobs and serving communities across the country.
Want to dive deeper into the impact? Download our 30th Anniversary Impact Report here.
