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First Step Staffing

The Farber Fellowship is a consulting-like engagement that gives graduate students the opportunity and autonomy to make a significant difference at a social enterprise in REDF’s Portfolio, over the course of one summer. Learn more and view application details.

This summer, I had the privilege of serving as a Farber Fellow, consulting for employment social enterprise First Step Staffing (FSS), the largest nonprofit staffing agency in the U.S.

My focus was on evaluating FSS’s Housing Financial Assistance Program (HFAP), an innovative housing subsidy pilot designed to support individuals overcoming barriers to employment, such as homelessness, justice system involvement, or poverty.

This evaluation involved conducting market research to identify comparable housing programs, interviewing peer organizations piloting similar initiatives, benchmarking the feasibility and success of those programs against FSS HFAP, and articulating where FSS’s program was differentiated and where it could be improved.

Over the course of my summer, I learned some valuable lessons about the challenges and opportunities in working for social impact. Here are the top three I’ll be taking with me:

Learning 1: Housing and Employment are Inextricably Linked

The biggest learning I had from my Farber summer is just how deep the connection really is between housing and employment. Without stable housing, finding and maintaining a job is nearly impossible, while steady employment often unlocks the ability to secure housing. FSS’s mission, which addresses both needs, highlights how closely these challenges are tied to economic stability — something many public programs overlook.

FSS’s HFAP tackles this link by offering flexible rent subsidies, helping clients achieve financial independence while staying housed. The results are clear: HFAP participants had a 50% higher job retention rate compared to non-participants. Unlike many government housing solutions that have rigid requirements, FSS’s program provides much-needed flexibility, offering aid to those who are employed but still struggle with housing.

This points to a broader issue: many employed individuals do not qualify for public aid but still cannot meet their basic housing needs. FSS fills this gap by offering services tailored to this population, underscoring the crucial role nonprofits play in filling the gaps left by government programs.

Learning 2: Nonprofits Can Leverage Business Best Practices 

My experience with FSS dispelled the myth that nonprofits must operate differently from for-profit businesses. FSS is driven by metrics, outcomes, and sustainability, balancing financial health with social impact. HFAP is not only about housing; it is designed to improve employment outcomes and increase client retention for FSS’s staffing services. 

This alignment of social impact and business success is a model other nonprofit organizations can learn from — and serves as a reminder that a business skillset can be put to work for social impact across sectors. 

I’ll carry this lesson forward in my career, intentionally weaving social impact into my future work no matter the industry and sharing this knowledge with others in the corporate world.

Learning 3: Complex Challenges Require Diversified Funding Streams

My time with FSS also highlighted the value of diversified funding for social impact. While FSS generates revenue through its staffing operations, relying solely on earned income can limit an employment social enterprise’s ability to fully achieve its mission. Programs like HFAP, critical for improving job retention, are costly and rely on external funding from grants and donations.

Most social enterprises will need to sustain themselves through earned income and philanthropic (or public) capital. Relying solely on earned income may undermine their ability to address complex client needs.

This experience with FSS helped me grow both personally and professionally. I saw firsthand the challenge of running a mission-driven, financially sustainable employment social enterprise and learned how to apply business principles to address social issues. The experience reinforced my belief that social impact solutions must be holistic — addressing only housing or employment leads to incomplete outcomes.

As I look ahead, one thing is clear: nonprofits must operate with business efficiency while maintaining the flexibility to fill gaps left by government and market systems. For those considering the Farber Fellowship, my advice is to embrace the complexity of these challenges. The work is tough, but the impact you can make on employment social enterprises — and the lessons you will take forward — are profound.

This summer demonstrated that when social enterprises like FSS innovate and serve those left behind by traditional systems, the results can be transformative for both individuals and communities.

— Written by Smita Balaji, MBA Candidate, Kellogg School of Management at Northwestern University