Innovative models for workforce development: Sharing the risks and rewards

In this op-ed, Meg Massey and David Socolow explore how innovative workforce development models are reshaping who bears the risks and rewards of job training. They highlight emerging approaches—from recycled-capital loan funds to employer-backed pay‑for‑success partnerships—that shift upfront financial burdens away from workers and tie funding to real outcomes like hiring and retention. Their examples draw from Workforce Realigned, Volume II, a new collection of case studies published by the Social Finance Institute and four regional Federal Reserve Banks.

The piece underscores a throughline across the book’s 21 case studies: collaboration, incentives, and shared accountability. Successful models engage employers in financing training, recycle capital through outcomes-linked repayments, and build sustainable pipelines for roles in nursing, tech, and other high-demand sectors. Together, these efforts offer a roadmap for reimagining job training to better meet the needs of workers, employers, and communities in a rapidly changing economy.