In Latin America and the Caribbean, there is a growing investment in programs that connect job seekers with employment opportunities through services such as training and job intermediation. These programs can, in some cases, substantially improve beneficiaries career paths, but in others, they deliver results below expectations.

However, there is a promising alternative that could enhance their effectiveness: Results-Based Financing. Unlike the traditional model, in which governments pay employment service providers based on the number of people served, this approach compensates providers according to the number of individuals placed or retained in the labor market.

Implementing these models involves addressing technical aspects such as the design of indicators and monitoring systems as well as financial and budgetary considerations.

This document serves as a practical guide for those who wish to embark on this path. It offers guidance throughout the entire project life cycle and includes tools to facilitate scalability. It is based on practical implementation experiences, document analysis, and interviews with stakeholders across the global ecosystem. It also draws on the accumulated knowledge of the IDB Group.