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Additionally, “International Finance Corporation” and “IFC” are registered trademarks of IFC and are protected under international law. Cover Photo: Female employee at Anglo American’s Chagres copper smelter, Chile. Photo: Anglo American i Table of contents Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Introduction: Women workers and the private sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1. The business rationale for investing in women’s employment . . . . . . . . . . . . . . . . . . . . . . . 8 Strengthening organizational capital: improved recruitment, retention and attendance . . . . . 10 Driving innovation and cohesion through diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Improved compliance and risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Enhancing community outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Creating new markets (or expanding existing ones) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. Putting it into practice: how leading companies support women’s employment . . . . . . . 24 Designing solutions for everyone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Setting up an employee data infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Reviewing human resource policies and systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Creating a supportive management culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Attracting women into non-traditional roles and sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Creating female/family-friendly working conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 3. Understanding and capturing the benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Why should companies measure the business benefits? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Challenges associated with measuring the business benefits . . . . . . . . . . . . . . . . . . . . . . . . . 49 A process for measuring the benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Annex A: Examples of possible indicators to measure costs and benefits . . . . . . . . . . . . . . . 60 Benefits: Examples of possible indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Costs: Examples of possible indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Annex B: Company case studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Anglo American Copper, Chile—mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Continental, Thailand—automotive parts manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Finlays Horticulture Kenya—agribusiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Mriya Agro Holding, Ukraine—agribusiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Nalt Enterprise, Vietnam—garment manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Odebrecht, Brazil—construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Annex C: Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 ii Acknowledgments This publication Investing in Women´s Employment: Good for Business, Good for Development was produced by IFC´s Gender Program and its WINvest (Investing in Women) initiative. It was developed under the overall guidance of Atul Mehta (Director, IFC Global Manufacturing, Agribusiness, and Services), Usha Rao-Monari (Director, IFC Sustainable Business Advisory) and Nigel Twose, (Director, IFC Development Impact Department) as well as Jeni Klugman (Director, World Bank Group Gender and Development). The core working group of the initiative, led by Carmen Niethammer, comprised Alexis Diamond, Adriana Eftimie, James Emery, Sofie Fleischer Michaelsen, Anastasia Gekis, Amy Luinstra, and Nasim Novin. The report has been a collaborative effort with WINvest member companies and included contributions from the following organizations: Anglo American, Belcorp, Business for Social Responsibility (BSR), Chindex, Hitachi, Istanbul Deniz Otobuesleri (IDO), Kuwait Energy, Mriya Agro Holding, Nalt Enterprise, Odebrecht, PepsiCo Asia Pacific, Rio Tinto, Safaricom, Sumitomo Chemical, Zulekha Hospitals, the United Nations Global Compact, and United Nations Women. The report was written by an external consultant team comprised of Kirsten Newitt and Alastair Usher of Ergon Associates, and Ariane Hegewisch of the Institute for Women´s Policy Research. Valuable con- tributions were also received from various peer reviewers and members of the World Bank Group´s internal working group on women´s employment. This included Toyin Adeniji, Ugo Amoretti, Gabriela A. Armenta, Dalia Bahous, Elena Bardasi, Pablo Cardinale, Lukas Casey, Gillette Conner, Namita Datta, Anastasiya Denisova, Sammar Essmat, Elisa Gamberoni, Rafal Golebiowski, Rijak Grover, Richard Henry, Sarah Iqbal, Larry Jiang, Maribel Leguia, Luz Leyva, Larissa Luy, Tina Mack, Roland Michelitsch, Noriaki Mizuno, Gosia Nowakowska-Miller, Ladan Pazhouhandeh, Josefina Posadas, Rita Ramalho, Maria Soledad Requejo, Henri Sfeir, Dafna Tapiero, Eva Weber, Monika Weber-Fahr, and Chiaki Yamamoto. Foreword Economic growth is more robust and sustainable when women and men alike participate fully in the labor market. Better jobs for women—employment that leads to higher wages and greater decision-making—also have a positive influence on the ways households spend money on children’s nutrition, health, and education. Meanwhile, companies that invest in women’s employment gain an important competitive advantage. Yet despite the persuasive evidence that gender equality has a transformative effect on productivity and growth, women’s full economic and productive potential remains unrealized in many parts of the world. Globally, while women’s education levels have increased and educated women now earn more than their uneducated peers, gender gaps in labor-market par- ticipation and wage levels persist. Women continue to be underrepresented in formal and higher value-added employment. The private sector, which accounts for almost nine out of 10 jobs in developing countries, has a critical role to play in ensuring that women have better employment opportunities. Employment practices that enhance productivity and create working conditions appropriate to women’s specific circumstances are often overlooked. But a growing number of com- panies are seeing the opportunity, even in sectors considered non-traditional for women. At IFC, the largest global development institution focused exclusively on the private sector and a member of the World Bank Group, we have seen firsthand that investing in women’s employment is good for business. Many of our private sector clients and partners know that supporting women’s employment is not only the right thing to do, but benefits the bottom line. These organizations are already going beyond legal compliance and putting in place strategies to enhance working conditions and opportunities for women. To better understand and capture the business case for women’s employment, IFC invited private sector companies from different regions and sectors to join WINvest (Investing in Women), a global World Bank Group partnership with the private sector launched at the 2012 Annual Meetings of the International Monetary Fund and World Bank Group in Tokyo, Japan. WINvest is part of IFC’s broader effort to expand opportunities for women as leaders, entrepreneurs, and employees in developing countries. This report—Investing in Women´s Employment: Good for Business, Good for Development—is the first result of the WINvest initiative. It draws on members’ experiences and encourages business to tap and manage female talent in emerg- ing and developing markets. The case studies provide examples of how leading companies have benefited by investing in policies that support women employees. Our hope is that this publication will help companies better understand the business case for supporting women’s employment, and provide insight into the approaches that work best. I am grateful to WINvest members for their commitment to this important agenda and their continued support for women’s participation in the labor market. Jin-Yong Cai EVP and CEO, IFC Executive summary Investing in women’s employment is key to unlocking moved above and beyond regulatory obligations and growth in emerging and developing economies. are investing in good working conditions for women (and men). • Women workers constitute 40 percent of the world’s workforce, yet in many sectors, such as min- It makes business sense to support better employ- ing, construction and energy, women represent only ment opportunities for women beyond minimum a small minority of workers, and in almost all sectors statutory compliance. women are less likely than men to be in management • Inclusive recruitment and training policies have positions. Women continue to face many barriers to helped companies in diverse locations like Anglo full and productive participation in the labor market, American in Chile, Chindex healthcare provider including discrimination and culturally entrenched in China, Finlays in Kenya, Mriya in Ukraine, and ideas about gender roles, and their contribution is Odebrecht in Brazil to expand the pool of job candi- not always equally valued. As such, women are an dates at all levels, from entry-level to the boardroom, untapped source of talent and productivity: when the and become an “employer of choice.” potential of almost half the workforce is not fully real- ized, this has considerable implications for efficiency • Programs that improve work-life balance for and growth at the enterprise, sectoral and national parents or health outcomes for women can lead to level. potentially significant returns. At Nalt Enterprise, a Vietnamese garment factory, staff turnover fell by • The business case for improving gender diversity and one third after the company established a kindergar- supporting women to be productive workers can be ten for workers’ children. In Bangladesh, a program just as significant for companies operating in that delivered health services to women workers middle- and low-income economies as in high- garment factories found a $3:$1 return on investment income economies, although it is likely to assume a over an 18 month period, as a result of combined sav- different form depending on the local labor market ings from reduced absenteeism and staff turnover. and business environment. In particular, high levels of economic growth in emerging markets mean that, • Higher levels of gender diversity can drive up more than ever, firms operating in these countries are productivity and innovation, by introducing new expanding and looking to sharpen their competitive ways of working, strengthening team dynamics and edge and recruit the best talent. Overall, companies improving decision-making processes. Case studies that overlook women’s potential in the workplace risk from the mining industry in Chile (Anglo American), a series of missed opportunities. the construction industry in Brazil (Odebrecht) and the manufacturing sector in Thailand (Continental) • The evidence base is no longer restricted to high- indicate a positive impact on team performance while income economies: company case studies and aca- research on diversity in company boards in the US demic research brought together in this report show a and Europe presents compelling evidence that gender number of potential business benefits for companies in emerging and developing economies who have Executive summary 3 diversity can have a positive impact on sales revenue, resource policies are designed to support both market growth, profits and shareholder returns. women and men and by guaranteeing that sexual harassment is not tolerated. • Employing more women can enhance a com- pany’s relations with the local community. This »» Attracting women into non-traditional roles is a major benefit for large infrastructure and mining and sectors: Traditional views of what is appropri- projects, where the quality of engagement with the ate work for women and men can raise barriers local community is vital to the success of a project. to women’s entry in certain sectors and roles. Mining companies like Anglo American and Rio Companies like Anglo American, Continental, Tinto as well as construction company Odebrecht say Finlays, Meghmani, Odebrecht, Rio Tinto, and that employing more women on their sites extends the Sumitomo Chemical (Japan), have incited change economic benefits of a project more broadly amongst by reaching out to women and their communities, local communities and enhances wider information- providing skills development and training, improv- sharing amongst the social networks of local women ing career pathways to senior roles, setting numeri- and men alike. cal targets for change or making simple adapta- tions to the physical working environment to create • Hiring more women ensures that a company’s work- more gender inclusive workplaces. force is representative of its customer base and pro- vides greater insights into consumer preferences: »» Creating women/family-friendly working globally, women either make or influence up to 80 conditions: In many countries, cultural attitudes percent of buying decisions. Companies like Belcorp mean that women bear primary responsibility for (a cosmetics company in Peru) and PepsiCo are con- childcare and domestic responsibilities in addi- sciously drawing on the insights and experiences of tion to their paid work. Case studies and research the women in their workforces to better understand show that company-sponsored parental leave, household buying patterns and what influences them. predictable shift patterns, better access to qual- ity childcare and health programs for women Leading companies take the initiative and their families can be cost-effective interven- • Realizing the potential benefits requires companies tions. Companies that have introduced successful to identify the measures that are most likely to initiatives include Belcorp, Continental, Finlays, provide effective support for women and enable Chindex, Mriya, Nalt Enterprise, and SafariCom them to reach their potential in the workplace. (a telcom company in Kenya). This may include: »» Designing solutions for everyone: Many compa- »» Setting up employee data infrastructure: nies find that the best solutions establish terms and Ensuring that all human resource data are available conditions of employment that benefit women and on a gender-disaggregated basis helps to moni- men (e.g., work-life balance policies), whilst recog- tor the success of company employment policies. nizing that women may benefit from extra support Companies like Anglo American collect and in some areas (e.g., programs to redress historical review this data regularly to identify trends. gender imbalances in management). »» Reviewing HR policies and systems: Companies »» Creating a supportive management culture: like IDO (a ferry company in Turkey), Finlays, Senior management commitment plays an invalu- Mriya, Meghmani (a chemical company in India), able role in creating and maintaining a supportive and Nalt Enterprise send a clear signal about their working environment for women. Companies like commitment to gender inclusion at all stages of the Anglo American, Chindex, Finlays, Hitachi, employment relationship by ensuring that human Kuwait Energy, Odebrecht, PepsiCo, and Rio 4 Investing in women’s employment: Good for business, good for development Tinto, recognize that this includes ensuring a rep- that reduce staff turnover can have a substantial im- resentative proportion of women in management pact on the bottom line, as estimates of the real costs positions and shifting mindsets on gender through of replacing even a semi-skilled worker in case study training for supervisors and managers. companies ran to several months of salary. However, few companies systematically capture these costs, and Tracking the costs and benefits of hiring and support- hence might underestimate the benefit of investments ing women to improve staff retention. • Companies that put systems in place to measure the • Similarly, companies who measure outcomes have outcomes, costs and benefits of interventions to sup- found that assumptions about the costs of employ- port women workers are better positioned to make ing women (such as high absenteeism, lack of women’s employment an integral part of business skills or interest or inability to undertake physical strategy, demonstrate leadership on women’s work) are typically unfounded. Some initiatives employment, learn from experience and convince require careful thought and extra resources, particu- skeptics of the need for more proactive investment in larly programs that aim to bring about long-lasting gender inclusion. changes to attitudes about gender roles. However, in • Some benefits accrue in the short-term (such as many instances companies have undertaken effective reduced staff turnover and absenteeism rates), while measures at little or no extra cost. other represent longer term value (such as reputational This report provides guidance on the best ways gains, attraction of talent, higher levels of innovation). of gauging the benefits of women’s employment, • Strong monitoring systems can help companies including longer-term benefits, which can prove dif- better understand how changes related to wom- ficult to quantify. en’s employment translate into benefits. Initiatives Introduction: Women workers and the private sector Women are 40 percent of the world’s workforce.1 Women’s labor is crucial to many of the sectors criti- “Since women account for one-half of the cal for economic growth in emerging markets—such as potential talent base, it follows that a agribusiness, textiles and tourism—and women’s earnings nation’s growth depends on whether and make an increasingly important contribution to house- how it educates and utilizes its female talent. hold incomes and the growth of domestic markets. Yet Economies in both developed and developing women continue to face a number of barriers to full and countries will never fully leverage their power to productive participation in the labor market, such as dis- achieve sustainable growth until every woman crimination and harassment, and their contribution is not has an equal right to learn, earn and succeed.” always equally valued. In many sectors, such as mining, —PepsiCo, construction and energy, women are only a small minor- Performance with Purpose: the Promise ity of workers and represent an untapped source of of PepsiCo, Sustainability Report, 2010: www.pepsico.com/Download/PepsiCo_2010_ labor and skills. In almost all sectors they are less likely Sustainability_Summary.pdf than men to be in managerial positions. The International Labour Organization (ILO) estimates that nearly half (48 percent) of the global productive potential of the female population remains unutilized (compared to 22 percent similarly, companies that decide to move above and for men).2 beyond regulatory obligations by investing in good working conditions often find that it benefits their When the potential of almost half the workforce is bottom line. High levels of economic growth in emerg- not fully realized, this has considerable implications for ing markets mean that, more than ever, firms operating productivity and growth at the enterprise, sectoral and in these markets are expanding and constantly looking to national level. The importance of this issue is increasingly sharpen their competitive edge and recruit the best tal- recognized by forward-looking businesses and govern- ent. Against the backdrop of global increases in women’s ments in emerging markets. A growing body of evidence education levels, employers can no longer afford to ig- suggests that investing in women’s employment to nore women workers. Companies that do not integrate achieve a more even share of women at all levels of an women’s employment into their business strategy risk a organization can bring real business benefits. series of missed opportunities. Companies find that regulatory compliance on gender To date, much of the research on the business benefits equality results in unexpected business benefits and, of investing in women’s employment has come from high-income countries and information from emerging 1 This figure has remained constant over the last ten years. ILO, Women in labour markets: measuring progress and identify- ing challenges, 2010, p 3: www.ilo.org/wcmsp5/groups/ public/---ed_emp/---emp_elm/---trends/documents/publication/ wcms_123835.pdf 2 Ibid. This figure takes into account rates of labor force participa- tion, unemployment and under-employment. 6 Investing in women’s employment: Good for business, good for development markets has been more limited,3 particularly with same sector, they often carry out different tasks at dif- respect to practical experiences at the enterprise level. This ferent levels of responsibility. This type of sorting—or publication begins to fill this gap by providing concrete gender segregation—often leads to different career examples of situations where companies operating in opportunities and earning potential for men and emerging markets have experienced benefits as a result of women. Ensuring that women have access to jobs or support for women’s employment. Company interventions sectors where previously they were not employed gives fall within two overlapping categories: women more choices about the type of employment they undertake, and gives enterprises an improved • Improving gender diversity in sectors and jobs labor supply. with historically low levels of female employ- ment: Men and women tend to be employed in • Responding to women workers’ needs: Certain different sectors and, where they are employed in the employee benefits can make it easier for women to be productive workers as well as responsible parents. This type of investment is relevant for all sectors or occupa- tions, regardless of the proportion of women workers, Practical insights from companies and often benefits men as well. in emerging markets Changing established employment practices or introduc- An important part of the methodology for this study involved drawing on the practical experiences of ing new benefits may take time and resources. As with companies operating in emerging and developing other investments, many companies find that it helps to economies. establish metrics and track progress on women’s em- IFC gratefully acknowledges the invaluable contributions ployment to understand how women- and family-friendly made by the member companies of WINvest, the World interventions impact key performance indicators. Credible Bank Group’s global partnership initiative with the private sector (see below). This knowledge product shares the data helps to ensure that there is ongoing momentum experiences of WINvest’s member companies, who have and support to ensure that interventions on women’s collectively discovered the benefits of investing in women’s employment remain a business priority over the long term. employment, often going above and beyond statutory compliance. Not all benefits of investing in women’s employment In addition, six companies volunteered to share their are easily quantified; in particular, longer term and less experiences in greater depth and are the subject of tangible (but not less valuable) impacts may be difficult extended case studies (see annexes): • Anglo American, a global mining company with to monetize. However, by putting in place a systematic operations in Africa, Europe, South and North America, approach to measurement, companies can gain a better Australia and Asia; understanding of the kinds of costs, risks and benefits • Continental, one of the leading automotive suppliers that are associated with investing in women’s employ- worldwide, with operations in 46 countries, and an IFC ment. This may also reveal the hidden costs of inaction. client; • Finlays Horticulture, a UK-based agribusiness com- This report has been developed as a guide for companies pany with operations in Kenya and South Africa; operating in emerging and developing economies and is • Mriya, an agribusiness company in Ukraine and an IFC client; intended to inform and encourage further progress on • Nalt Enterprise, a Vietnamese garment factory and women’s employment. It may also provide a useful refer- participant in the IFC/ILO Better Work program; and, ence point for policy-makers. The report is structured as • Odebrecht, a global group with operations in engineer- follows: ing, construction, petrochemicals, energy, transport and 3 Although the literature on the business case for women’s • Part I outlines the business rationale for invest- environmental services in Latin America, Africa, North employment in emerging markets has been growing in recent America, years. See,Europe and the for example, AnnEast Middle Sylvia and an Hewlett andIFC client. Ripa Rashid, ing in policies and practices that benefit women Winning the War for Talent in Emerging Markets: Why Women workers in emerging economies by looking at the are the Solution, 2011. Introduction: Women workers and the private sector 7 types of benefits that have accrued to companies. It assembles empirical research on the business rationale, WINvest: The World Bank Group’s supported by concrete experiences from companies partnership with the private sector operating in a range of sectoral and geographical con- on women’s employment texts. The primary focus is on research and company WINvest (Investing in Women) is the World Bank Group’s experience from emerging markets, but outcomes Global Partnership initiative with the private sector on women’s employment. This two-year initiative aims to from high-income economies are also drawn on where bring together IFC clients and private sector partners relevant. with a vested interest in substantiating the business case for improving working conditions and employment • Part II considers the “how to,” examining in more opportunities for women. detail the types of policies, initiatives and process- WINvest aims to: es that have resulted in mutually beneficial situations • Raise the profile of companies operating in emerging for women and business. This includes success stories markets that are promoting greater inclusion of women and lessons learned from companies which started in their workforce; with a low level of female employment as well as • Identify and provide guidance on successful approaches companies which started with a high level of female that can be replicated in other companies; and, employment. • Capture and communicate the business rationale for where and when improving working conditions for • Part III considers the importance of measuring out- women can result in higher business performance. comes associated with investing in women’s employ- To date, the members of WINvest include: ment and provides guidance on the best methods for Anglo American (Mining, Global) capturing this information, including techniques for Belcorp (Cosmetics, Peru) representing the value of longer-term benefits that are difficult to quantify. Chindex (Health, China) Hitachi (Electronics, Japan) Istanbul Deniz Otobuesleri (IDO) (Transport, Turkey) Kuwait Energy (Oil & Gas, Kuwait) Mriya Agro Holding (Agribusiness, Ukraine) Nalt Enterprise (Garments, Vietnam) Odebrecht (Construction, Brazil) PepsiCo (Food & Beverage, Asia-Pacific) Rio Tinto (Mining, Global) Safaricom (Telecommunications, Kenya) Sumitomo Chemical Group (Chemicals, Japan) Zulekha Hospitals (Health, UAE) 1 PA RT Female truck driver at Los Bronces, Chile. Photo: Anglo American Copper The business rationale for investing in women’s employment Investment in initiatives that support women in the workplace can create a win-win situation that brings real gains for employers and employees alike. This applies to businesses operating in emerging economies as well as in high-income economies: a 2010 McKinsey survey of companies that invest in programs targeting women in emerging and developing markets found that at least one third had measured improved profits and a further 38 percent were expecting returns.4 4 McKinsey, The Business of Empowering Women, 2010, p 11: http://mckinseyonsociety.com/downloads/reports/Economic-Development/ EmpWomen_USA4_Letter.pdf The business rationale for investing in women’s employment 9 Many of the companies referred to in this document have taken steps to support women’s employment because they see it as a worthy goal Triggers for company in its own right and an approach that is consistent with the company’s investment in women’s corporate values. In some cases, companies introduced new programs employment to respond to legislative requirements. In others, companies have found Ethical: Companies consider that it is that by improving opportunities and working conditions for the work- “the right thing to do.” force as a whole, they have inadvertently created new opportunities for Regulatory: Companies respond to women. In many cases, the reasons for action are likely to be a com- regulatory requirements, such as non-discrimination legislation, bination of these factors. Regardless of the original motivation, these reporting requirements on gender companies have created a body of common evidence on the business diversity, stock exchange disclosure benefits of investing in women workers. requirements or gender diversity requirements in government Figure 1 provides a framework for understanding how women-friendly procurement contracts. policies and practices (e.g., gender equality in recruitment and man- Government policy: Governments agement, equitable compensation and parental leave policies) can lead introduce voluntary requirements (e.g., non-binding sectoral to improved business performance. The case studies referred to in targets on women’s employment) this document suggest a positive correlation between the two: policies or programmes (e.g., training that open doors to women or improve working conditions can increase subsidies) that spur companies into action. employee satisfaction (often for women and men), leading to changes in employee attitudes, behavior and performance and thereby helping to Economic: Companies understand that there are concrete business gains boost overall organizational performance indicators. associated with supporting women’s employment. The benefits can range from operational gains through to improve- Reputation: Companies come under ments in the recruitment process and reduced staff turnover to im- pressure from investors, business proved work processes, enhanced reputation and more qualified partners or consumers. and motivated staff to broader strategic gains. Company experience Human capital: Companies invest suggests that benefits do not arise in isolation, but rather arise in tan- in programmes to benefit their dem with others. Research on leading companies suggests that benefits workforce as a whole and discover afterwards that women have can be grouped into three main areas (see Figure 2), relating to: benefited in particular. Figure 1: The relationship between “women-oriented” employment policies and practices and improved business performance Women-oriented Business strategy employment policies Employee Employee Organisation and practices outcomes performance performance Improving working Commitment; Reduced absenteeism Cost savings; conditions; or Motivation; and staff turnover; Access to new talent Providing new Satisfaction; Productivity; and markets; opportunities in Work-life balance Improved employee High calibre staff non-traditional sectors relations Source: Adapted from Monks, 2007. 10 Investing in women’s employment: Good for business, good for development Figure 2: Business benefits associated with investing in commitment;5 enhanced reputation; increased innovation). women workers These “less tangible benefits” may nevertheless be critical to the ongoing operation of the business. One talent Human cur ing e c streng apita US study estimates that more than 85 percent of corporate Se ipelin then l ing p value creation relies on the less tangible assets of a com- pany’s employees, its brand and intellectual property.6 Up skills ce ma ss to gra en Va ts ili l rke din e Acc ue res g cre Growth and ation Strengthening organizational Driving u Investing and producti ty and in women Inno esion capital: improved recruitment, vation p coh qu vity ali Ris k m a nage men t retention and attendance O p an at ry to er a g io n s m la t en e m ris gu m Attracting high quality staff and en k R e age n t R e p u ta ti o n ma m anage m ent improving access to skills Making sure that women are part of the “talent pipeline,” from entry through to senior levels, provides a strategic edge, ensuring that employers are not missing out • Growth and resilience, i.e., pursuing growth op- on the employment potential and skills of half the portunities and reducing vulnerability to external population. This is particularly relevant in sectors with disruptions; traditionally low levels of female employment and in emerging markets, where the dearth of talent is often • Value creation, including increased profits and cost cited as one of the top barriers to company growth.7 savings; and • Risk management; i.e., detecting and reducing po- According to McKinsey’s 2010 study on businesses operat- tential risks to a company’s ongoing profitability. ing in emerging and developing economies, the most important reason for dedicating resources to women’s The overall effect is likely to differ by sector, region, the employment is to develop, recruit and retain the best individual company and the type of strategy on women’s possible workers.8 In describing the key ways in which employment (if there is an explicit strategy). The follow- their investments in women had already increased their ing sections examine the types of benefits that companies profits or were expected to do so in the future, 66 percent report as a result of investment in women’s employment. of respondents cited an increase in the talent pool and 64 While some benefits can be readily quantified in terms of the cost savings that they may represent (e.g., improve- ments in employee attendance or reductions in staff turn- 5 Although some companies in the service sector have attempted over), others may be less immediate and more difficult to quantify the links between improved staff motivation to monetize (e.g., better customer outreach and retention and customer retention. A 1998 study by Sears Corporation concluded that every 5% improvement in employee at- in the service sector due to enhanced staff motivation and titude drove a 1.3% improvement in customer satisfaction and a 0.5% growth in store revenue. See: A.J. Rucci, S.P. Kirn and R.T. Quinn, “The employee-customer-profit chain,” Harvard Business Review, 1998: http://hbr.org/1998/01/ the-employee-customer-profit-chain-at-sears/ar/1 6 Cathleen Benko and Molly Anderson, The Corporate Lattice: Achieving High Performance in the Changing World of Work, 2010, cited in Deloitte, The Gender Dividend: Making the Business Case for Investing in Women, 2011. 7 Hewlett and Rashid, op cit, p 2. 8 McKinsey, 2010, op cit, p 15. The business rationale for investing in women’s employment 11 But it is not just a question of a company wanting to hire the best and brightest, it’s also making sure that the best “When women are insufficiently represented in and brightest consider the company an “employer of the workplace, we lose out on fifty percent of the talent pool. In an environment where human choice”: support for women’s employment can improve capital makes all the difference between success a firm’s recruitment prospects by creating a reputation and failure, this is a massive loss which countries for sound employment practices. This is the aim of and corporates can ill afford... Ukrainian agribusiness company Mriya, which has sought to develop a reputation as a woman-friendly employer in Women bring rich and diverse perspectives to the workplace. Often, they bring management the rural areas in which it operates by providing attractive styles which are quite complementary to those of working conditions.11 Likewise, global mining company men. Workplaces that celebrate women naturally Anglo American recognizes that being an employer benefit from better decisions, as a result of such of choice is integral to its aim to be the leading global diversity. That alone is reason enough for every mining company and aspires to be the best employer Company to put this topic at the forefront of its in the sector.12 Supporting gender diversity across the business and human resources agenda.” board reinforces Anglo American’s image as a dynamic, —Cyrus Mistry, Chairman, forward-thinking company, helping to attract the best tal- Tata Global Beverages ent at different levels, across all its countries of operation. Source: Tata Global Beverages Annual Report 2012-2013: Companies that are not seen as supportive of women’s www.tataglobalbeverages.com/our-investors/annual-reports employment risk being seen as “dinosaurs” who are not attractive career prospects to the next generation of talent. percent an increase in employee productivity and retention Chinese healthcare provider, Chindex has identified an in emerging and developing economies. important reputational gain in its willingness to recruit and invest in female talent in medical and senior management More specifically, a Harvard Business School study identi- positions. According to Ms Roberta Lipson, the company’s fied a significant business benefit involved in stepping up Chief Executive Officer, one of the company’s proudest recruitment of women in both developed and emerging achievements is the fact that 58 percent of its doctors economies and reaping the benefit of their underutilized and 79 percent of its senior management are women— skills. The study describes how MNEs in South Korea real- a much higher rate than in China’s public hospitals.13 In ized an advantage in the reticence of local companies to a sector where the majority of workers are women, this hire women, particularly as managers, and improved their commitment to women’s professional development and human capital and profitability by actively targeting leadership has contributed to Chindex’s reputation as an women in their recruitment and promotion processes.9 “employer of choice for women,” helping the company to The competitive advantage was found to be particularly attract the best and most committed workers. pronounced as women became more skilled, with the high- est performance benefits at the senior management level. A similar effect has been identified in Japan.10 9 J. Siegel, L. Pyun, and B.Y. Cheon, Multinational Firms, Labor Market Discrimination, and the Capture of Competitive Advantage by Exploiting the Social Divide, Harvard Business 11 Interview with Mriya staff, Ukraine, August 2012. School Working Paper, 2011: www.hbs.edu/research/ 12 Anglo American, Sustainability Report 2011, p 20: www. pdf/11-011.pdf angloamerican.com/~/media/Files/A/Anglo-American-Plc/reports/ 10 J. Siegel, N. Kodama and H. Halaburda, The Unfairness Trap: A AA-SDR-2011.pdf Key Missing Factor in the Economic Theory of Discrimination, 13 IFC, “Promoting women’s employment opportunities in China’s Working Paper for Harvard Business School, March 2013: www. healthcare sector,” March 2013: http://www1.ifc.org/wps/ hbs.edu/faculty/Publication%20Files/13-082_af2baabf-6ca8- wcm/connect/7786ca804eda703a8e00cf3eac88a2f8/sba-proj- 4998-a89c-a1b4e722fa5c.pdf chindex.pdf?MOD=AJPERES 12 Investing in women’s employment: Good for business, good for development Training women to address skills “It makes business sense to use all our resources, shortages in remote areas including human resources, effectively ... Odebrecht is one of Brazil’s leading engineering, ultimately this sustainable use of resources will procurement and construction (EPC) companies, with a help to maximise profits. This needs to include portfolio of large-scale construction and infrastructure women as well as men.” development projects throughout Latin America, Africa, North America, Europe and the Middle East. —Senior Manager Finlays Horticulture, Kenya 2012 The company is currently leading the consortium that is constructing the Santo Antônio hydro-electricity plant near Porto Velho, in the remote north-west region of Brazil. This represents a US$7 billion project. company found that by ensuring that women felt To enhance workforce stability and community welcome to apply for training for construction jobs, it engagement, Odebrecht has a policy of trying to recruit as much as possible of its workforce from local communities succeeded in significantly increasing the number of female near its sites. This means that recruitment procedures need job applicants, and hence expanding the overall number to be highly organized and often innovative, given that the of job applicants. This was critical for attracting a large local labor pool can be small. number of local workers to its multi-billion dollar Santo From the outset, one of the major challenges associated Antônio construction site in Porto Velho, particularly in the with the Santo Antônio project was the need to recruit context of a restricted local labor market, and resulted in thousands of workers within a short space of time. Given the limited local labor supply, Odebrecht managers realized significant savings for the company (see box). that it would be highly inefficient to disregard half of the local population (women). An inclusive approach to recruitment is a key business Odebrecht decided to launch a free local pre-hire skills consideration in specific sectors that face chronic training program, Acreditar, that provided an important labor shortages in key skilled occupations. Global gateway to jobs at the site for local women and men alike. mining companies such as Anglo American (see box, It was also very cost-effective. By training and recruiting local people rather than paying for workers to fly in and p 13) and Rio Tinto are keenly aware of this issue. out from other regions, investment costs outweighed As noted by Narelle Crux, global practice leader, Talent per capita annual savings by a ratio of around 9:1. In Management of Rio Tinto, “There is such a shortage addition, the company considers that high levels of local across the globe of skilled personnel in the mining employment on the site have resulted in a very positive relationship with the local community, allowing the and engineering disciplines that if we don’t capitalize project to proceed smoothly. on diversity we will never make up the shortfall.”14 As noted by the site human resources manager, Acreditar was “never intended to be a social program, but was Ensuring that both women and men have access to train- part of a significant business operation.” Based on the ing opportunities can also help companies to make success of the program in Porto Velho, Acreditar has been the most of the talent they already have and lead to rolled out to other sites in Latin America and beyond. significant savings in recruitment costs. For companies Source: Interviews with Odebrecht, 2012. like Finlays Horticulture Kenya, investing in inclusive employee development is about taking a long-term view of the company’s skills needs: proactively developing talent and tailoring employees’ skills to the company’s spe- More inclusive recruitment policies expand the pool cific needs, rather than assuming that the company will of job candidates for all levels of employees, including always be able to stumble across the right people when in entry-level lower-skilled positions. This is particularly they need to recruit. In the context of an industry where relevant where skills and labor shortages are a pressing business issue, such as for large infrastructure projects in remote areas. Odebrecht, a Brazilian construction 14 Rio Tinto, The gender agenda, March 2010, p 19. The business rationale for investing in women’s employment 13 Anglo American: Promoting women’s employment to meet skills shortages in metallurgical coal Anglo American is one of the world‘s largest diversified mining companies. Its portfolio of high-quality mining assets and natural resources spans bulk commodities (iron ore, metallurgical coal and thermal coal); base metals (copper and nickel); and precious metals and minerals (platinum and diamonds). A truly global business, Anglo American is headquartered in London and operates in Africa, Europe, South and North America, Australia and Asia. The company has 150,000 employees and contractors, over 85 percent of whom are based in developing countries. Anglo American recognizes that the sustainability of its business success ultimately depends on the quality of its workforce. This means making sure that recruitment and development processes target the best, brightest and most motivated employees: both men and women. However, the company recognizes that extra efforts are sometimes needed to recruit women, given the industry’s traditionally low levels of female involvement. In 2012, women represented 15 percent of the overall workforce (up from 10.6 percent in 2007) and 23 percent (up from 15.3 percent in 2007) of the company‘s management. Anglo American was the first major mining company to have a female CEO and, in 2010, the group appointed its first female general manager of a mine at Kumba Iron Ore in South Africa. MetCoal, Anglo American (Australia). Photo: Anglo American Strategies for recruiting women into the company are a particularly strong focus in Anglo American’s Metallurgical Coal inclusive and welcoming environment for them to join and the (Met Coal) division in Australia, where the industry is facing an opportunity to develop and grow with us. Most importantly, we acute skills shortage. With an estimated 65,000 additional jobs recognize that this requires us collectively and individually to to be created by 2015,15 there is a real and pressing need to think change both our attitudes and our behaviors and this requires afresh about recruitment and selection processes to meet the both courage and strong leadership.” upsurge in demand for workers, from truck drivers to executives. “We already see the value being delivered by the women There is a clear recognition from Met Coal’s Executive Leadership currently employed with us, from traditional roles to Coal Team (ELT) that attracting more women into the company is Handling & Preparation Plant managers to electricians to not just desirable as a matter of equity, but critical to truck drivers, and we want to do more to increase this gender the company’s blueprint for long-term growth. The ELT balance.” recognized long ago that they needed to start planning for this labor shortage and broaden their thinking when it came to “Our diversity strategy is not about singling anyone out or recruiting for new roles. In the face of a skills shortfall, it doesn’t favoring women over men,” Seamus said. “It’s about making make business sense to neglect the potential of one half of the sure we are doing all we can to include all people.” workforce. “It doesn’t matter where they’re from, what their first language “Put simply, we need to attract more people from non-traditional is, what gender they are or what their personal circumstances backgrounds and specifically more women into our business,” are at home; our vision for Met Coal is that we create a truly CEO Seamus French said. “There is a huge untapped market diverse workforce. If we get that right, we double the size of our of skilled people who traditionally have not been attracted into potential talent pool in one swoop,” he said. the mining industry. But to be successful we need to provide an “What’s the benefit? Well obviously people in jobs, but it’s also diversity of thought—we bring new people into our business with new ideas who will help us grow, improve and innovate.” 15 Estimates from “Industry,” People for the future website, consulted December 2012: www.peopleforthefuture.com. Source: Information provided by Anglo American, December 2012. au/get-started/industry. 14 Investing in women’s employment: Good for business, good for development women tend to constitute the majority of lower-level The cost of high staff turnover is typically under- employees, Finlays’ focus on making access to training estimated by employers, in great part because it remains available to female and male employees at all levels of the unmeasured. It includes the costs of: organization means that the company is better able to • Staff time taken to recruit and train new workers; make more efficient use of all of its existing human capital. This approach has paid off in the form of a larger • Lost productivity while new workers are learning the pool of skilled, motivated and loyal female and male ropes; and workers who can be promoted through the company hier- • The loss of institutional knowledge and internal archy. Not only does this make recruitment easier (internal relationships. promotion rates have increased) and more efficient, it also makes it cheaper: the company estimates that the internal US studies suggest that the costs of replacing an experi- promotion of 69 women from 2010 to 2012 has resulted enced employee run from 20 to 30 percent of the annual in savings of KES 17 million (US$200,000) in relation to salary of a lower skilled worker to 90 to 120 percent of advertising costs, training and lost productivity. In the past annual salary for professional and managerial staff.16 Finlays primarily filled higher level positions externally. Companies that calculate the full costs of high staff turnover understand that there are significant savings The value of improved retention and associated with bringing it down. Mriya estimates that attendance the average cost of replacing a skilled worker (with formal Investments in women-friendly workplaces—particularly qualifications) on the operational side of the business initiatives to help women (and men) improve work-life bal- is nearly two and a half times the annual salary costs ance such as childcare supports, health services and access (US$616) of that worker (i.e., approximately US$1,478 to alternative work arrangements—can have positive in total), taking into account the average costs of re-ad- impacts on employee turnover and absenteeism. This vertising, recruitment and training, as well as a “learning can represent potentially big cost savings for employers, curve” reflected by 60 to 70 percent productivity during with respect to low- and high-skilled workers alike. the first three to six months of employment. In the context of a workforce with 3,056 skilled permanent employees, an extra 1 percent in permanent staff turnover per year would cost the company US$45,167.17 “For the 20 years of Mriya’s existence, women have always been an integral part of the team, For many companies, there are considerable costs involved always reaching for the highest results and in filling new positions, including “unskilled” jobs. At showing dedication and enormous growth Continental’s automotive parts plant in Thailand, man- potential. They have made an invaluable agement estimated that workers need four to six weeks contribution to the company’s most significant achievements. of on-the-job training before they reach full productivity, resulting in lower productivity for the new recruit and Investing in the development of our people is definitely one of Mriya’s core values. I strongly 16 T. Hinkin, and J. Bruce Tracey, “The Cost of Turnover: Putting believe that investing in women and engaging a price on the learning curve,” Cornell Hotel and Restaurant them in different operations and management Administration Quarterly 41(3), 2000; T. Hinkin, and J. Bruce Tracey, “The costs of employee turnover: When the levels will help us to achieve the company’s most devil is in the detail,” Cornell University School of Hospitality ambitious goals.” Management CHR Reports, 6(15), 2006; E. Appelbaum and R. Milkman, Achieving a Workable Balance: New Jersey Employers’ —Vladyslava Rutytska, Deputy CEO, Mriya Experiences Managing Employee Leaves and Turnover, Rutgers University Center for Women and Work, 2006; Arlene A. Johnson, “The Business Case for Work-Family Programs,” Journal of Accountancy, 180(2), 1995. 17 Calculation based on data provided by Mriya, August 2012. The business rationale for investing in women’s employment 15 supervisor alike.18 Nalt Enterprise, a Vietnamese textile Better Work Vietnam: Links between company, estimates that it takes up to three months for profitability and better work for a new textile worker to reach full productivity. Translated women in garment manufacturing into savings from reduced training costs and from main- Better Work is an innovative global partnership taining full productivity, a 10 percent reduction in staff programme of the International Labour Organization (ILO) turnover would save the factory US$32,000 in one year or and IFC. The programme was established in February 8.5 percent of the total annual wage bill.19 2007 to help address the challenges faced by actors in global supply chains, including international buyers keen Higher outputs and performance associated with more ex- to ensure compliance with labour standards in their supply chains and enterprises looking to increase competitiveness perienced workers means that there are also considerable in order to maintain access to global markets. Better Work gains associated with improving worker attendance levels. is operational in several countries, including Vietnam since Finlays’ experience in Kenya confirms that an experienced 2009. worker can process three times more green beans than an The majority of workers (74 percent) in Better Work inexperienced worker. factories are women. Data gathered by Better Work in Vietnam suggests that factories enjoy higher profits when they support better employment outcomes for Investing in women friendly workplaces these workers, particularly where: to increase retention and improve • Women are more confident that they will not be subject productivity to sexual harassment; The combined effect of improved retention and • Workers report lower levels of verbal or physical abuse reduced absenteeism can lead to powerful results, in their working environment; particularly for companies operating in industries with low • Workers are confident they will be paid as promised; profit margins and tight production deadlines. For example: • Workers have access to training; and • Workers report higher trust in the trade union. • A program that delivered health services to women workers in Bangladesh garment factories found a Overall, after joining the Better Work programme 65 $3:$1 return on investment over an 18 month period percent of factories in Vietnam saw a rise in total sales, 62 percent increased production capacity and 60 percent as a result of combined savings from reduced absen- expanded employment by an average of 800 jobs each. teeism and staff turnover.20 Source: Information provided by Better Work, 2013; Drusilla Brown, • A German government study found that the average Measuring the Impact of Better Work, Tufts University working paper, forthcoming. return on investment for women- and family-friendly policies was 25 percent, with savings calculated on the basis of improvements in retention and attendance.21 • A survey of firms in Singapore found that companies with generous leave entitlements and flexible working 18 Information provided by Continental, May 2013. 19 Calculation based on data provided by Nalt, June 2012. 20 USAID / ESD, Effects of a workplace health program on absenteeism, turnover, and worker attitudes in a Bangladesh garment factory, 2007: www.esdproj.org/site/ PageServer?pagename=CSR_Building_the_Business_Case 21 Bundesministerium für Familie, Senioren, Frauen und Garment workers, Better Work Vietnam. Photo: Lyno Vuth Jugend, Betriebswirtschaftliche Effekte familienfreundli- cher Maßnahmen: Kosten-Nutzen-Analyse, 2005: www. bmfsfj.de/RedaktionBMFSFJ/Broschuerenstelle/Pdf-Anlagen/ Betriebswirtschaftliche-Effekte,property=pdf,bereich=bmfsfj,sp rache=de,rwb=true.pdf 16 Investing in women’s employment: Good for business, good for development hours were more likely to have better employee reten- tion rates.22 “When workers’ health is good, it’s good for the • Similarly, a study in the UK found that assistance with business: they are more productive and less childcare can help to improve return rates after ma- likely to need time off work for illness or medical ternity leave, with women twice as likely to return to check-ups.” work for an employer who gives some help with their —Ms Trang Phan, Managing Director, Nalt Enterprise, Vietnam childcare than one who gives none. 23 Providing reliable childcare options can have a rapid impact on attendance and retention levels. While support, asserts that it is “a strategic business initiative, support for childcare can benefit all workers, in practice, not charitable dollars.”27 Providing childcare facilities or ex- women still tend to shoulder the majority of childcare re- tra childcare leave may seem like an extra cost burden for sponsibilities in many countries and are thus amongst the employers, but the consequences of not doing so may be major beneficiaries of employer initiatives to provide sup- equally expensive. For example, workers with sick children port in this area. In the absence of dependable childcare, may find it more difficult to focus their full attention on workers—especially women—are more likely to take time their work. Women workers at Nalt Enterprise say that off to care for a sick child. In one US study, 54 percent of knowing that their children are well cared for and close by employers reported that child care services had a posi- gives them peace of mind during working hours.28 tive impact on employee absenteeism, reducing missed US research suggests that support for breastfeeding workdays by as much as 20 to 30 percent.24 This was the can have significant impacts on infant health and mater- experience of Red Lands Roses, a floriculture business in nal absenteeism. In a study of two large corporations with Kenya, where unplanned leave declined by 25 percent lactation policies, breast fed babies were much less likely and productivity improved within one year of the open- to be sick than bottle-fed babies. As a result the mothers ing of childcare facilities.25 Better childcare can also im- prove employee retention: at Nalt Enterprise, staff turn- of bottle-fed babies were three times as likely to be absent over rates fell by one third after the company established from work because of infant illness than the mothers of a kindergarten for workers’ children. Across a workforce 26 breast-fed babies.29 of 750 workers, this was a significant development for The establishment of a health clinic on the factory Nalt Enterprise, given that the costs of replacing and premises at Nalt Enterprise has contributed to a steady training a new recruit represent around 85 percent of the downward trend in worker absence: regular medical total annual employment costs of one worker. check-ups and services for employees and their children Childcare facilities can help increase workers’ pro- mean that workers are healthier, more productive and less ductivity on the job by making it easier for them to focus likely to take time off for illness (theirs or their children’s) on the task at hand. IBM, a pioneer in providing childcare or to visit a doctor off-site. Similarly, as a result of invest- ments in women’s health, absenteeism rates for women in 22 Cited in J. Gornick and A. Hegewisch, The impact of “family- a Levi Strauss supplier factory in Egypt decreased from an friendly policies” on women’s employment outcomes and on average of 19 percent to 10.7 percent in less than a year, the costs and benefits of doing business, report for the World Bank (forthcoming), p 31. 23 Cited in C. Hein and N. Cassirer, Workplace solutions for childcare, report for the ILO, 2010, p 70: www.ilo.org/wcmsp5/ 27 Hein and Cassirer, op cit, p 69. groups/public/@dgreports/@dcomm/@publ/documents/ 28 Interviews with workers at Nalt Enterprise, Binh Duong Province, publication/wcms_110397.pdf. Vietnam, July 2012. 24 D.E. Friedman, “Child care for employees’ kids,” Harvard 29 R. Cohen, M. B. Mrtek, R. G. Mrtek, “Comparison of Maternal Business Review, vol 64 1986, pp 28-32. Absenteeism and Infant Illness Rates Among Breast-feeding 25 Hein and Cassirer, op cit, p 72. and Formula-feeding Women in Two Corporations,” American 26 Interview with Nalt Enterprise, Vietnam, July 2012. Journal of Health Promotion, 1995, 10(2), pp 148-153. The business rationale for investing in women’s employment 17 resulting in a savings of approximately US$48,000: a Driving innovation and cohesion $4:$1 return on investment.30 through diversity Unplanned absence can be especially costly in specialized Research suggests that firm productivity and innova- teams where the work of each member is important for tion is positively affected by higher levels of gender the unit’s total daily output. Reduced absenteeism rates diversity, which helps to broaden employee perspec- can lead to important cost savings, by reducing gaps in tives, strengthen team dynamics and offer more robust productivity and liability for statutory costs related to days problem-solving processes.34 For many companies, these off. Studies conducted by the HERproject (“Health Enables benefits are also enhanced by other forms of diversity, Returns”) found that a sustained investment in women’s such as ethnic diversity. health programs in Egypt, Vietnam and Pakistan led to re- duced error rates in some cases (as well as quantifiable The value of gender diversity is corroborated by the benefits in the form of reduced worker absenteeism and experience of successful companies across a number of attrition). For example, an Egyptian factory saw its error sectors. Managers at Anglo American’s El Soldado min- rate dropped by 1 percent following the intervention, ing operation in Chile are certain that improved gender leading to savings of thousands of dollars.31 diversity contributes to the operation’s productivity, by introducing fresh perspectives and new ideas about the There is evidence to suggest that policies to support work- best way to get the job done.35 According to Roberto ing parents can also boost productivity by improving Martínez, the General Manager at El Soldado, “The worker satisfaction. A national survey of companies in most powerful benefit of gender diversity is having the UK tested this idea and found a positive correlation different views in the workplace. You can’t measure between above average labor productivity and a higher the value of this, but it is clear to me that diversity of number of family-friendly working arrangements.32 A opinion improves business performance.” Indra Nooyi, recent survey of a Chinese multinational with 13,000 em- the Chairman and Chief Executive of PepsiCo, considers ployees found that the introduction of home-working ar- that diversity is central to the company’s ongoing business rangements for a group of call-centre workers led to a 50 performance: “I believe in my heart of hearts, that percent decrease in staff turnover. Employee satisfaction PepsiCo’s strength is its diversity. We must ensure improved strongly and employee performance increased that the PepsiCo culture is to encourage, celebrate by a dramatic 13 percent. Approximately 9.5 percentage and harness our diversity.”36 points of the increase were attributed to employees work- ing more minutes per shift (fewer breaks and sick-days) and 3.5 percentage points from more calls per minute (from a quieter working environment).33 “To be a high-performance organization, companies need to encourage innovation at all levels of the workforce: there are always ways to do the job better. Improving gender diversity 30 R. Yeager and E. Goldenberg, “HERproject Women’s Health Program Delivers Real Business Returns,” Global Business and is one tool for achieving this.” Organisational Excellence, 2012, 31(2): pp 24-36; ESD, Return on Investment and Women’s Health at the Workplace: A Study —Rachel Combret, Talent and Development Manager, of HERproject in Egyptian Garment Factories, 2011: http:// Anglo American Copper meridian-group.com/wp-content/uploads/2011/10/Egypt- HERproject-ROI-Study-FINAL-June-2011.pdf 31 USAID/ESD, 2011, op cit. 32 S. Dex and C. Smith, The nature and pattern of family-friendly employment policies in Britain, 2002, p 37. 33 N. Bloom, J. Liang, J. Roberts and Zhichun Jenny Ying, 34 Scott Page, The Difference: How the Power of Diversity Creates Does Working from Home Work? Evidence from a Chinese Better Groups, Firms, Schools and Societies, 2007. Experiment, Stanford University Economics Working Paper, 35 Interview with Anglo American staff, Chile, November 2012. 2012: http://www.stanford.edu/~nbloom/WFH.pdf 36 PepsiCo, Diversity and Inclusion: Inclusive possibilities. 18 Investing in women’s employment: Good for business, good for development Several studies present evidence that gender diversity can help improve decision-making and company performance. “Leveraging diversity is more than simply A US study of enterprise data found that gender diversity acknowledging differences in people. It involves is strongly associated with increased sales revenue, more recognizing the value of differences and using customers and greater relative profits.37 This is also true those differences to fuel our competitive of management: many CEOs are convinced that mixed advantage and ultimately deliver sustained boards and mixed executive teams are more effective than business growth.” those dominated by men.38 A recent study of Japanese —Jahanzeb Khan, General Manager, manufacturing firms from the Harvard Business School Pakistan Beverages, PepsiCo Pakistan suggests that the presence of at least one female execu- tive and one female section chief is associated with an increase in company profitability.39 This is not news to assets.42 Similarly, research on European listed companies high-profile Japanese companies like Hitachi, which has suggests that those with greater gender diversity in top introduced new targets to more than double the num- positions outperform sector averages.43 ber of women in management by 2010. As noted by Mr Leading companies report that support for women’s em- Takashi Kawamura, Hitachi’s Chairman, “governance ployment can lead to more harmonious workplaces. This handled by Japanese men with homogenous think- can also help to reduce workplace tensions and head ing is no good … To be global is to bring diversity off the risk of industrial action, which can have a signifi- into the company’s governance.”40 cant adverse effect on production levels, costs and the re- Indeed, research suggests that there is a strong correla- sults of business operations. For example, in Vietnam, Nalt tion between gender diversity at senior manage- Enterprise places considerable emphasis on communica- ment levels and higher shareholder returns. A study tion and dialogue with its 85 percent-female workforce. of the top 500 US companies found that companies with This is an approach which has paid off: in the factory’s nine at least three female board members had a 60 percent years of existence, there have been no strikes, while other higher return on investment than all-male boards,41 while local factories regularly face lost production as a result of a study of Malaysian companies found that those with at “wildcat” (unofficial) industrial action.44 least one woman on their board had a higher return on In the case of Finlays, improving worker morale by emphasizing equal opportunity and fairness has had direct consequences for productivity. One manager 37 C. Herring, “Does Diversity Pay? Race, Gender and the Business considered that Finlays’ policies and procedures on fair- Case for Diversity,” American Sociological Review, 74, 2009, 208-224. ness and equal opportunity had led to an estimated 75 38 McKinsey, “The global gender agenda,” 2012: https:// percent reduction in absenteeism. Other managers ob- www.mckinseyquarterly.com/Organization/Talent/ The_global_gender_agenda_3027#footnote3up served that good overall relations at the workplace can be 39 Although importantly, the effect only applies where women’s drawn on to maintain productivity during difficult times, salaries are in line with market rates: J. Siegel, N. Kodama and H. Halaburda, The Unfairness Trap: A Key Missing Factor such as during company restructuring or interruptions to in the Economic Theory of Discrimination, Working Paper for production from external events (such as political upheaval Harvard Business School, March 2013: www.hbs.edu/faculty/ Publication%20Files/13-082_af2baabf-6ca8-4998-a89c- a1b4e722fa5c.pdf 40 D. Wakabayashi, “Dear Successful Foreign Female 42 S.N. Abdullah, K.N. Ku Ismail and L. Nachum, Women on CEOs, Hitachi Wants You!” Wall Street Journal, 25 April Boards of Malaysian Firms: Impact on Market and Accounting 2012: http://blogs.wsj.com/japanrealtime/2012/04/25/ Performance, working paper, 2012: http://papers.ssrn.com/sol3/ dear-successful-female-foreign-ceo-hitachi-wants-you/ papers.cfm?abstract_id=2145007 41 Catalyst, The Bottom Line: Corporate Performance and Women’s 43 G. Desvaux, S. Devillard-Hoellinger, and P. Baumgarten, Women Representation on Boards, 2011: www.catalyst.org/file/445/ Matter: Gender Diversity, a Corporate Performance Driver, 2007, the_bottom_line_corporate_performance_and_women%27s_ report for McKinsey. representation_on_boards_%282004-2008%29.pdf 44 Interview with Nalt Enterprise staff, Vietnam, July 2012. The business rationale for investing in women’s employment 19 during elections), and can free up the time of managers to Increasing gender diversity can offer challenges as well focus on planning and production-based activities. as opportunities: initiatives to increase gender diversity must be supported by the right guidance, communication Introducing new voices in the workplace through improved and leadership to ensure that the organizational impact on gender diversity can also help to broaden the scope team dynamics is positive. Without the appropriate sup- of worker-management discussions. Itaipu Binacional, port, changes in the composition of a company’s work- the world’s largest generator of renewable energy, found force can have the unintended consequence of the original that by recruiting women into jobs traditionally taken up workforce feeling uncomfortable or left out, which could by men and boosting women’s representation in man- lead to harassment and a hostile work environment for agement it was able to improve the quality of dialogue the new female employees.48 When a higher proportion of between workers and managers. New female employees women were introduced into the operational workforce at were more likely to raise issues regarding work-life bal- Anglo American’s El Soldado site in Chile, men were ini- ance, an issue which men had previously been hesitant to tially anxious about losing their jobs to women and some bring up (as a result of cultural norms). The consequence were hostile to new women employees. However, once was a more rounded discussion that led to a new suite they realised that this was not the case, their attitudes of policies that suited women and men better and an im- towards women changed and became more welcoming. provement in overall work satisfaction for everyone.45 Similarly, Odebrecht has found that having greater gen- der diversity on its construction sites has changed the way Improved compliance and risk in which workers relate to each other, making it a more management agreeable environment for both women and men. The value of these changes, such as widespread perceptions of Compliance with statutory requirements, including less “machismo” on site or more organized worksites, is anti-discrimination legislation and relevant international difficult to quantify. However, Odebrecht managers con- standards,49 is an important part of any company’s risk sider that the change in workplace culture positively af- management strategy. Investing in women’s employment fects productivity, retention and the company’s reputation can help businesses to manage risk and reduce potential as an employer of choice in the local area. Sometimes 46 liability for non-compliance in relation to labor, health changes in gender balance can have an unexpected and safety, non-discrimination and sexual harassment, positive impact on the working environment. Anecdotal therefore reducing exposure to fines or the legal costs of evidence from South Korea suggests that a higher propor- addressing claims. tion of women managers can influence the social climate While some companies focus primarily on not falling foul of of a workplace, for example making excessive alcohol regulations, more proactive approaches to compliance consumption with male co-workers less likely, and thereby can help to reduce risks even further, by treating the reducing the potentially negative impact on productivity of root problem (e.g., lack of voice for women in the work- excessive alcohol consumption.47 place) rather than responding to the symptoms (e.g., griev- ances) on an ad hoc basis. Where a company is known to go beyond regulatory requirements or industry norms, this can build its credibility on social issues and have a positive 45 C. Niethammer, Women’s Employment: Smart Business? Promoting the quality of jobs for women, IFC Smartlessons, 2012, p 2. 48 Herring, op cit, p 209. 46 Interview with Odebrecht staff, Porto Velho, Brazil, August 49 This may include the principles set out in the ILO’s Equal 2012. Remuneration Convention, 1951 (No 100) and Discrimination 47 N. Onishi, “Corporate Korea Corks the Bottle as Women Rise,” (Employment and Occupation) Convention, 1958 (No 111), as New York Times, 20 June 2007: www.nytimes.com/2007/06/10/ well as the United Nations Guiding Principles on Business and world/asia/10korea.html?pagewanted=print Human Rights. 20 Investing in women’s employment: Good for business, good for development Mining Department introduced a target for all mining Levi Strauss & Co: The importance companies to ensure that women constitute 10 per- of gender inclusion in cent of the workforce in core mining positions. Anglo business relationships American’s Kumba Iron Ore Operations aimed not only Levi Strauss is one of the world’s largest apparel brands to meet but to exceed these targets and, at the end of and a global leader in jeans wear. Its Terms of Engagement 2011, women constituted 18.9 percent of managers, 12.0 (TOE) are considered to be an integral part of its business percent of the company’s core mining positions and 16 relationships and are held to be no less important than meeting quality standards or delivery times. The TOE percent of the overall workforce.51 A similar target was highlights the value that Levi Strauss places on equal introduced by the Chilean government in 2009 and was opportunity and how this affects the way that the exceeded by Anglo American’s operations there. As a company does business: result of pre-existing initiatives and programs on gender “While we recognize and respect cultural diversity, Anglo American was comfortably positioned to differences, we believe that workers should be employed on the basis of their ability to do the job, meet these targets and demonstrate industry leadership. rather than on the basis of personal characteristics or beliefs. We will favour business partners who Companies also report benefits in relation to other key share this value.” compliance issues which on the face of it are not di- The TOE goes on to set out specific requirements in rectly related to greater gender equality in employment. relation to non-discrimination and rights related to Anecdotally, a number of companies report improve- maternity leave, pregnancy and women’s reproductive role. ments in accident rates and health and safety as All the terms and conditions in facilities producing goods for Levi Strauss & Co are subject to these requirements. a result of increased gender diversity. Meghmani Organics Limited (MOL), an Indian chemicals group Source: Levi Strauss & Co, Social and Environmental Guidebook, 2010: and IFC client, found one of the key benefits of recruit- ing more women to be that they tend to be more careful and respectful of operational safety rules than men.52 impact on its reputation. For instance, Mriya has a stated Odebrecht reports similar results.53 Safety and productivi- company policy to guarantee non-discrimination and equal ty enhancements may also arise from improved equipment opportunity for women in the company. Ensuring that care: following an increase in women’s employment at this policy is proactively applied helps Mriya to demon- Rio Tinto’s Rössing Uranium mine in Namibia, managers strate compliance with national labor legislation, reducing have noticed improvements in the maintenance of mine exposure to legal claims and penalties as well as building its equipment and an increase in the life-spans of machin- reputation as an employer of choice. ery.54 These types of improvements in workplace safety are particularly appreciated in high-risk sectors such as mining Targets or gender diversity reporting requirements may or construction, which are often the industries with the also trigger companies to invest in women’s employment. lowest concentration of women workers. For example, the Malaysian government has introduced statutory targets of 30 percent female representation in senior decision-making and board positions of publicly listed companies, giving companies until 2016 to comply.50 51 Anglo American, Kumba Iron Ore Ltd, Social Performance – Employment and Employees, 2011, p 59: www.kumba.co.za/ Those that already have gender diversity programs pdf/reports/sus_report_2011/sus_employees.pdf in place are better able to respond to or anticipate 52 L. Jiang, Employing Women: A Boon for a Chemical Plant this type of requirement. For example, the South African in India, IFC SmartLessons, 2011: https://openknowledge. worldbank.org/bitstream/handle/10986/10434/648790BRI0IFC0 0iang0Employing0Women.pdf?sequence=1 50 Deloitte, Women in the boardroom: A global perspective, 2011: 53 Interview with Odebrecht staff, Porto Velho, Brazil, August www.deloitte.com/assets/Dcom-Tanzania/Local%20Assets/ 2012. Documents/Deloitte%20Article_Women%20in%20the%20 54 Rio Tinto, “Driving for diversity,” Mines to Markets, June 2013: boardroom.pdf http://m2m.riotinto.com/article/driving-diversity The business rationale for investing in women’s employment 21 In addition to statutory requirements, multi-national importance of a company’s relationship with the local corporations increasingly prioritize compliance with vol- community cannot be underestimated: for Odebrecht, untary codes of conduct on labor standards. A 2003 any strengthening of its ties with the local community that World Bank/IFC study found that non-discrimination on stems from having a higher proportion of women on site the grounds of gender was a requirement in virtually all is considered to be at least as important as meeting the codes of conduct in key sectors: apparel, footwear and company’s skills and labor needs. light manufacturing; agribusiness; mining; and oil and Many companies find that a higher proportion of local gas.55 Many companies that adopt such codes carry out women in the workforce can enhance the quality of audits to assess social performance. This is an important engagement and mutual understanding between a consideration for Finlays, which exports flowers and vege- company and the community in which it operates by tables to European countries where retail brands and their extending the benefits of a project more directly to both shareholders and consumers are sensitive to social issues. men and women. Rio Tinto places great importance on In this context, demonstrating commitment to women’s the quality of its engagement with local communities and employment has helped the company to maintain its mar- sees outreach to women, including through training and ket share amongst supermarket clients and differentiate it direct employment opportunities, as an integral part of from other companies. these relationships (see box, p 22).56 Likewise, Anglo American has found that having a higher proportion of women workers means that a greater cross-section of Enhancing community outreach the local community is familiar with the company and its A proactive commitment to gender diversity can gener- values, as men and women alike act as company ambassa- ate invaluable goodwill amongst communities where dors amongst their social networks in the community. companies operate, providing companies with the accep- tance that they need to conduct their business activities Investment in the employment of local women is often a (sometimes referred to as their “social license to oper- part of the commitment adopted by leading companies to ate”). The successful management of community relations make a positive contribution to sustainable economic is not just the socially responsible way to do business; it and social development in the communities in which can also provide a competitive advantage for companies they operate. Anglo American considers that its efforts that do it well. to set best practice on gender diversity are closely con- nected to its commitment to sustainable development: The support of the local community is particularly critical supporting improved employment outcomes for women in the context of large infrastructure and extractives projects, where operations in remote areas require the long-term presence of the company and rely on the ac- “Women are the best communicators we have: ceptance of the local population. In these situations, the women tend to have good social networks and quality of community engagement is usually vital to the use these channels to carry the message about success of business operations: it can help companies Anglo American’s values back to the community.” to maintain positive relationships with the local —Ursula Weber, Social Development Manager, community, avoid tensions with the workforce and Anglo American Copper avoid disruptive complaints and legal processes. The 55 World Bank / IFC, Company Codes of Conduct and International Standards: An Analytical Comparison (Parts I & II), 2003 (Part I: pp 9, 21; Part II: pp 9,36): http://siteresources.worldbank. 56 See, e.g., Rio Tinto, Why Gender Matters, A resource guide for org/INTPSD/Resources/CSR/Company_Codes_of_Conduct.pdf; integrating gender considerations into Communities work at Rio http://siteresources.worldbank.org/INTPSD/Resources/Angola/ Tinto, 2010: www.riotinto.com/documents/ReportsPublications/ Angola_CompanyCodesofConduct.pdf Rio_Tinto_gender_guide.pdf 22 Investing in women’s employment: Good for business, good for development is not just important for ensuring that men and Training women drivers in women alike benefit from mining operations, but rural India: Rio Tinto also because higher levels of women’s employment Rio Tinto is a leading international mining group. Most of the is thought to create a strong multiplier effect for group’s assets are in Australia and North America but the company families and communities. There is a body of evi- also operates in Europe, South America, Asia and Africa. Rio Tinto‘s dence to suggest that higher incomes for women businesses include open pit and underground mines, mills, refineries tend to result in more spending on the health, and smelters as well as a number of research and service facilities. education and well-being of children.57 Conversely, The Bunder project is Rio Tinto’s most advanced diamond mining inequality and social exclusion can be exacerbated project. Located in the central Indian state of Madhya Pradesh, it is currently at the pre-feasibility stage, awaiting final approval by mining operations if men receive the bulk of for a mining lease. The project presents important opportunities employment opportunities. for economic development and job creation for the small villages in the local area, and Rio Tinto is committed to ensuring that benefits flow to men and women in these communities. In July 2010, the Bunder project started a women’s empowerment Creating new markets program to increase the opportunities for women to work at the Bunder project. Project staff held a community workshop to discuss (or expanding existing ones) opportunities and barriers to women’s direct employment with Globally, women either make or influence up to 80 the project. Bunder project staff asked more than 200 women percent of buying decisions.58 For companies that participants whether they would be interested in learning to drive, knowing that the driver pool would need to increase over time. sell consumer goods and services, hiring more As a result of this consultation, a driver training program was born. women ensures that a company’s workforce is Eleven women from the Bunder community participated in the four representative of its customer base and provides month long training program, which covered driving techniques greater insights into women’s buying preferenc- and basic mechanical repairs. Four women passed their Rio Tinto es. Of the companies that operate in emerging mar- driving test and were offered employment as trainee drivers. These women are now part of the Bunder driving team. kets who were interviewed by McKinsey, 58 percent Given that women drivers are an unusual sight in rural India, noted that creating new markets and expanding Rio Tinto’s small team of women drivers have become a highly existing ones were two of the ways in which their visible symbol of Rio Tinto’s corporate values and objectives investments in women had already increased their and enhanced the company’s reputation in the local community. profits or are expected to do so in the future.59 According to Bunder project staff, “Visitors often comment that the women drivers are a mobile billboard for our Growing gender equality in the workplace commitment to equality and local economic development. The training program for drivers gave us tremendous visibility can further increase women’s economic power as an equal opportunity organization. Almost all state level through increased earning potential. It is estimated, Hindi newspapers covered the success of the program ... The for example, that female earnings in China alone drivers’ story became a reference point for stakeholders as a symbol of empowerment and gender equality.” will increase ten-fold over 20 years, from $1.3 tril- lion in 2010 to $4 trillion by 2020 (up from $680 Nadia Younes, Group Advisor on Diversity and Inclusion at Rio Tinto adds that, “Now, in a male-dominated industry and in a culturally more reserved part of the world regarding women and their role in the workplace, women from this community 57 See e.g., World Bank, World Development Report are seeking us out for employment. This program actually 2013: Jobs, 2012, pp 164-165. helped us change mindsets and unlock the potential of this 58 Sandra Lawson and Douglas Gilman, The Power of underutilized talent pool.” the Purse: Global Equality and Middle Class Spending, Goldman Sachs Global Research Institute, 2009: www. Source: Material provided by Rio Tinto, 2012; Rio Tinto, Bunder Project Sustainability goldmansachs.com/our-thinking/topics/women-and- Report: Courageous Spirit, 2011: http://riotintodiamonds.com/documents/Bunder_ economics/power-of-purse.pdf. Lawson and Gilman Project_Report.pdf; Rio Tinto, 2013, op cit. predict that women’s influence on household spending patterns will continue to strengthen in emerging economies over the coming decades. 59 McKinsey, 2009, op cit, p 14. The business rationale for investing in women’s employment 23 Investing in women’s empowerment “Women, in most parts of the world today, to access new markets: Belcorp have an enormous influence over purchasing Understanding women’s buying preferences is central decisions for products such as ours. It just makes to the business model of Belcorp, a Peruvian cosmetics good sense for decisions to be made with company. Through direct sales in 16 countries in North women and men at the table. We believe that and Latin America, Belcorp generates US$1.3 billion in gender inclusion enables consumer centricity, annual revenue and now ranks among the top ten direct innovation and growth.” sales companies in the world. —PepsiCo, Diversity and Inclusion: Eduardo Belmont, Belcorp´s CEO, believes that, given Inclusive Possibilities. its products and client base, Belcorp is fundamentally a women’s business and it is important that the company’s workforce reflects this. Women comprise 72 percent of the company’s over 9,000 employees, 79 billion in 2005 and $350 billion in 2000).60 In India, the percent of its senior staff and 52 percent of its executive committee members. Overall, 51 percent of its employees earnings of working women are projected to triple over the are mothers. same period, from $280 billion to $900 billion. In global One of Belcorp’s main assets is its 1 million direct sales terms, the potential is vast: women are considered to be a agents—primarily female—who reach millions of women larger growth market than the whole of China and India and their families and provide the main distribution combined.61 In recognition of this growing market power, channel for the company’s products. By investing in business training and self-esteem workshops for these women have been described as “the third billion.”62 women, Belcorp has helped to boost its sales whilst promoting higher levels of professional and personal Yet despite the rise of women as consumers, many fulfillment for consultants. Initial results pointed to an companies continue to market mostly to men and fail average 7 percent increase in sales for women who to understand how they might better meet women’s participated in these programs. needs.63 Whilst an understanding of women’s buy- According to Claudia Belmont, Social Innovation Director, ing preferences is relevant to all consumer markets, it is Belcorp’s philosophy is that “investing in women and making them your company´s most valuable asset will particularly important for companies operating in markets enhance your competitiveness, change your way of where women are likely to spend more—such as food and doing business and change lives.” household products, fitness, beauty and apparel—and Source: McKinsey, op cit, 2010; World Bank, World Development Report, those where women are under-served by current market 2012; information provided by company, 2013. offerings—such as financial services and health care.64 Companies like Belcorp and PepsiCo are consciously drawing on the insights and experiences of the women in their workforces to better understand household buying patterns and what influences them. 60 Boston Consulting Group, “Driving Growth: The Female Economy in China and India,” 25 October 2012: https://www. bcgperspectives.com/content/articles/consumer_products_ globalization_driving_growth_the_female_economy_in_china_ and_india/ 61 M.J. Silverman and K. Sayre, “The Female Economy,” Harvard Business Review, 2009: http://news.curves.com/images/20003/ HBR%20The%20Female%20Economy.pdf Photo: Belcorp 62 Booz & Co, Empowering the Third Billion: Women and the World of Work in 2012, 2012: http://www.booz.com/media/ uploads/BoozCo_Empowering-the-Third-Billion_Full-Report.pdf 63 Silverman and Sayre, op cit. 64 Ibid, p 3. 2 PA RT Women workers on assembly line, Continental, Thailand. Photo: Continental Putting it into practice: how leading companies support women’s employment Understanding the business case for investing in women’s employment is just one part of the journey in promoting better employment opportunities for women. Realizing the potential benefits requires companies to identify the measures that are most likely to provide effective support for women and enable them to reach their potential in the workplace. The most successful interventions are likely to be tailored to a company’s specific circumstances, with consideration for sector, size, workforce composition, geographic location, the needs of the workforce and the company’s overarching business strategy. Putting it into practice: how leading companies support women’s employment 25 In this chapter, leading companies provide practical ex- manage family responsibilities, but statistics suggest that amples of what has worked in different sectoral and men are just as likely to benefit: labor force data in the US country contexts. Importantly, the individual initiatives show that nearly as many men as women telecommute.66 that are discussed in this chapter tend not to be stand- This suggests that fresh thinking about how to make alone activities, but rather form part of a broader ap- workplaces more inclusive or women-friendly is likely to proach to improving gender diversity and working condi- have a positive knock-on effect on a company’s general tions for all. Moreover, even companies that have already approach to human resource management. achieved important results in this area see this as a “work However, whilst workplace policies and programs should in progress”; that is, an area where commitments need be designed to be as inclusive as possible, they shouldn’t to be re-affirmed on an ongoing basis and strategies and be blind to the implications of gender, either. Prevailing actions need to be constantly reviewed, monitored and cultural norms generally mean that women assume the li- updated to ensure their ongoing relevance and effective- on’s share of household and caring responsibilities in most ness for the company. On the whole, most companies find countries and, as such, women are likely to benefit more that the best results flow from activities that set clear than men from interventions related to childcare and flex- objectives and are accompanied by frameworks for ible working hours. In some situations, women may also measuring results. benefit from interventions to overcome entrenched dis- advantage. For instance, it may appear that women and men have equal access to promotion in the workplace, Designing solutions for everyone but where there is a low proportion of women in man- Many companies find that the best solutions are aimed agement, this may be a sign that women need additional not just at supporting women, but at establishing terms support to enable them to take up the opportunities. and conditions of employment that support women and men. This makes programs more sustainable, by creating a broader base of support in the workplace and Sex and gender: Distinguishing between avoiding unwanted divisions in the workplace along gen- biological and cultural roles der lines. In this way, interventions can also avoid gender Sex refers to biological differences between men and stereotyping: whilst often well-meaning, generalizations women. These are the same across all cultures. For about women’s talents and needs can hinder women in example, women can bear children, while men can’t. the workplace, by reinforcing social norms about their role Gender refers to the socially constructed roles, behaviours, as care-givers, type-casting their abilities (“women take activities, and attributes that a given society considers appropriate for men and women. Socially determined care, while men take charge”65) or characterizing them as norms mean that, despite the fact that many women a group with special needs. undertake paid employment, they also continue to bear most responsibility for childcare and housework. At the In fact, policies and initiatives to introduce family-friendly same time, cultural conceptions of men’s roles means that working arrangements that are often presented as “poli- they are more likely to be expected to work longer hours cies for women” can—and should—also benefit men, and have less free time to spend at home. who have their own family responsibilities and interest in managing work-life balance. For instance, policies that allow employees to work remotely are often flagged as an important option for women to enable them to better 65 See, e.g., Catalyst, Women “Take Care,” Men “Take Charge:” 66 In 2011, 20.5% of men did some or all of their work from Stereotyping of U.S. Business Leaders Exposed, 2005: www. home on an average day, compared to 22.2% of women. US catalyst.org/knowledge/women-take-care-men-take-charge- Department of Labor, American Time Use Survey – 2011 Results, stereotyping-us-business-leaders-exposed press release, 2012: www.bls.gov/news.release/pdf/atus.pdf. 26 Investing in women’s employment: Good for business, good for development “Healthy Images of Manhood”: Unilever’s engagement with male workers in Tanzania Programs to support women’s employment will be most resolve conflict. These messages were shared with male workers effective where men are also considered participants and, in through one-on-one sessions and couples counselling. many cases, potential beneficiaries. By focusing their attention The program not only met its goal to increase the use of health on women, companies can alienate men by suggesting that they services by men (a 60 percent increase in visits in one year), but are less important or their behaviour is discriminatory or create an evaluation found that there were also more wide-ranging fear that they will be overlooked. Indeed, sometimes, the most consequences for gender relations in the workplace and effective way to change gender norms is to work primarily with community. One manager said that he had become more men rather than women. conscious of giving equal opportunities to men and women (e.g., In Tanzania, Unilever Tea Tanzania launched a workplace HIV/ choosing equal numbers of men and women for given activities), AIDS programme that had far-reaching impacts on gender and while another said “We want to eliminate that some jobs are to reproductive health issues by focusing engagement on male be done by women, some of the jobs are to be done by men.” workers. The company wanted to improve the health of its Managers also reported better male/female relations in the workers and dependents, which was affected by a 21 percent workplace and the home, including a change in men’s attitude HIV prevalence rate. A preliminary assessment found that towards family responsibilities. This was noted, for example, traditional and cultural gender roles were contributing to through a rise in the number of men requesting time off so that poor health outcomes in the workplace and community, they could take their children to the health clinic (previously including low uptake of health services by men, high prevalence considered “women’s work”). One tea plucker observed, “If such of sexually transmitted infections, limited knowledge of family things were seen 10 years ago, people at the community level planning and alcohol abuse. would start talking differently about a man who is doing this The ensuing “Healthy Images of Manhood” program aimed kind of work ... But now things have changed.” to address these problems by improving the company’s existing The program was subsequently expanded to include women health outreach, through the existing network of peer health PHEs, who had previously felt excluded and therefore less educators (PHEs), alongside the integration of family planning committed to their peer education activities. This has helped services into HIV services. A number of male PHEs were trained to enhance the effectiveness of the programme; for example, to act as agents of change and were tasked with transforming by enabling female PHEs to discuss health issues privately with gender relations in the community. Their training involved women during home visits. learning how to promote new attitudes and behaviours, such as seeking health care services, being a supportive and caring Unilever’s success in Tanzania has inspired others to replicate the partner / husband and father and using non-violent means to approach, including Unilever Tea Kenya, the Ministry of Health and Social Work in Mafinga, the Global Business Coalition on HIV/AIDS, Tuberculosis and Malaria. Source: ESD / USAID, Healthy Images of Manhood: A Male Engagement Approach for Workplaces and Community Programs Integrating Gender, Family Planning and HIV/ AIDS – A Case Study, 2011: http://www.esdproj.org/site/DocServer/ESD-legacy-HIM_Jan_2011.pdf?docID=4041 Finally, it is also important to recognize that there is di- Design: key advice versity amongst women (and men). Gender intersects »» Think about how interventions can benefit women and with many other characteristics, including age, ethnicity, men. disability, religion, family, socio-economic and marital »» Consider whether there are other factors aside from status, which collectively influence women’s opportuni- gender—e.g., ethnicity or age—that might influence the quality of women’s employment. ties for quality employment. These factors may also be »» Ask—don’t assume—what matters to current and relevant in the design of interventions to support women’s potential employees. employment. »» Think strategically and set clear objectives. Putting it into practice: how leading companies support women’s employment 27 Setting up an employee data Indicators infrastructure Data should ideally be gathered on a gender- As a common starting point, all companies can benefit disaggregated basis for women and men alike to enable from basic monitoring that provides a clear, evidence- a comparative assessment of women and men’s position within the organization. based perspective on women’s position within the company. A combination of quantitative information Relevant indicators—broken down into female and male categories—include: (gender-disaggregated workforce data) and qualitative • Overall numbers of workers data (staff perceptions) can provide an objective picture • Numbers of workers in different types of positions in of where and how women are positioned in the organi- the organization zation, the extent to which women’s needs are currently • Numbers in management being met and what kind of interventions might make • Workers recruited a difference. This process can help to identify good • Direct employment vs indirect employment practices as well as challenges and gaps. It is also an • Employment status (part-time / full-time / temporary / essential part of developing a model to measure the busi- seasonal / permanent) ness benefits of interventions on women’s employment • Employee retention rates (see Part 3: Understanding and capturing the benefits). • Employee absenteeism rates • Median wages / wage distribution Collecting the data Collecting data and monitoring changes in women’s employment over time helps to establish whether be sustainable and provide meaningful results, indicators employment policies are affecting men and women must be well-defined and easy to collect. The next step is differently. It can help to highlight whether unconscious to put in place systems to monitor the data on an on- gender bias might be at play in recruitment and promo- going basis, so that the impacts of initiatives to support tion decisions and whether the “female talent pipeline” women’s employment can be measured and evaluated is in place and succeeding over time. In some situations, over time. The ease of collecting gender-disaggregated it may also help to dispel myths that employing more data will depend on how human resources data is stored: women leads to higher costs related to maternity leave. it is likely that in many cases, this information is routinely gathered and readily available (e.g., numbers of workers A number of companies, such as Anglo American, have by women and men). introduced systems to monitor gender disaggregated workforce data across their operations. As part of its gen- Where data on women’s employment has been monitored der diversity policy, gender statistics (including proportion for some time, it can provide a ready insight into areas of women in management) are reviewed by each Anglo in need of particular attention and assist in the design American business unit in its Quarterly Performance Report of interventions on women’s employment. For example, in order to identify areas where progress is being made and data monitoring may reveal unconscious gender bias in also where additional intervention might be required.67 recruitment leading to an over- or under-representation of women in certain roles. Even if there is no existing system For companies considering how they might start moni- in place, it may still be possible to gather data retro- toring data on women’s employment, the first step is to spectively by interrogating existing databases to uncover determine the most appropriate indicators; i.e., what historical trends within the company. should be measured (see box). For monitoring systems to 67 Information provided by Anglo American, 2013. 28 Investing in women’s employment: Good for business, good for development Asking workers for their input Setting up a win-win situation means UN Women’s Empowerment Principles that interventions need to satisfy the The UN Women’s Empowerment Principles (WEPs) aim to increase needs of workers, as well as the business. commitment to women’s participation in the private sector and are the Establishing effective communication with result of a collaboration between UN Women and the UN Global Compact. workers is key to understanding the kinds of The WEPs are driven by a shared belief that investing in women is good for challenges women (and men) face and the development and good for business. The Principles emphasize the business case for corporate action to promote gender equality and women’s type of initiatives that would best support empowerment and are informed by real-life business practices from across them. the globe. The WEPs offer seven steps to guide business on how to empower women Asking employees for input at an early in the workplace, marketplace and community: stage in the design of policies or inter- 1. Establish high-level corporate leadership for gender equality; ventions can help to avoid problems or 2. Treat all women and men fairly at work—respect and support human oversights later down the track. Any con- rights and non-discrimination; sultation should take the views of both men 3. Ensure the health, safety and well-being of all women and men and women into account to ensure that workers; men feel included in the process and don’t 4. Promote education, training and professional development for women; feel as though new interventions or changes 5. Implement enterprise development, supply chain and marketing will disadvantage them, as this could have practices that empower women; a negative impact later on. Workers can be 6. Promote equality through community initiatives and advocacy; and asked for input through staff surveys, small 7. Measure and publicly report on progress. focus groups or one-on-one interviews. Over 415 chief executives from companies around the world have signed Regular employee surveys also fulfill an im- the CEO Statement of Support for the WEPs. portant role in understanding the business Source: www.unwomen.org/wp-content/uploads/2011/10/ benefits, by allowing companies to measure Women-s-Empowerment-Principles_en.pdf changes in worker satisfaction over time: see Part 3: Understanding and capturing the benefits. Trade union or worker represen- Monitoring: Key advice tatives, where they exist, should also be consulted. »» Survey the needs of the company and its workers, by looking at quantitative data and consulting with workers early in the process. In Chile, Anglo American conducted two »» Collect data on key indicators, particularly the number of employees, studies of staff attitudes towards gender broken down by men and women, disaggregated by function and status. diversity in 2011-2012. One was an internal »» If possible, consider putting more sophisticated data systems in place to gather gender-disaggregated data on promotions, wage levels, training study conducted by Anglo American staff, and departures. based on feedback from focus groups, inter- »» Consult gender-informed sustainability reporting frameworks for guid- views and surveys of workers and managers; ance (such as the Global Reporting Initiative’s G4 Guidance and the UN another was conducted by an external re- Women’s Empowerment Principles Reporting Guidance).68 searcher, based primarily on responses to an online survey. The results of the two studies 68 See IFC and GRI. Embedding Gender in Sustainability Reporting: A Practitioners’ Guide. 2009. http://www.ifc.org/wps/wcm/conne suggested that, whilst the company was ct/9ab39d8048855cc78cccde6a6515bb18/GRI-IFC_Full_Gender. on track to meet its goals with respect to pdf?MOD=AJPERES recruiting more women, some women were experiencing ongoing difficulties in gaining Putting it into practice: how leading companies support women’s employment 29 acceptance in a male-dominated environment, particu- larly at the supervisor level. As a result of these studies, An enabling framework for the company decided to launch a series of workshops women’s employment designed to increase gender awareness at supervisor level After privatization, Turkish ferry company IDO (Istanbul (see Anglo American Chile, box on p 35). Deniz Otobüsleri Sanayi ve Ticaret) embarked on an ambitious initiative to attract more women into its male-dominated workforce. An important starting point for the company was to review its company policies Reviewing human resource and recruitment procedures to ensure that the formal policies and systems structures were in place to provide the enabling conditions for increasing gender diversity in the company. Reviewing company policies and The company has communicated all changes to policies procedures and procedures throughout the company and also plans Establishing and enforcing company policies that to introduce further career planning and performance support equal opportunity for women and men is an assessment processes to enable women to progress within the company. important part of establishing women’s employment as As a result of its efforts, IDO has increased the number of an organizational priority and underpins the company’s women in leadership positions from one to seven and has capacity to support the recruitment of women and ac- nearly doubled the number of women on the payroll. commodate their specific needs. This means ensuring that Source: Information provided by company; presentation made to EBRD policies set out a clear commitment to gender inclu- and MDB Gender Working Group, Turkey, 25 April 2012, available at: www.ebrd.com/downloads/research/sustain/3yildiz.pdf sion in all stages of the employment relationship, including recruitment, training, promotion, pay, access to benefits and termination of employment. Policies should also set out any maternity benefits, grievance mechanisms to adopt similar practices in order to attract the best and anti-harassment procedures. The communication of workers. Indian chemicals group Meghmani Organics these policies to managers and staff at all levels of the Limited (MOL) set this type of example when it decided company is critical, helping to make sure that policies are to break with local industry norms—and its own past consistently applied and that workers are aware of their practice of not hiring women—and recruit 45 women for rights and entitlement to existing or new benefits. its Dahej chemical plant in Gujarat. Other chemical plants have since followed suit.70 Human resource policies should always conform to na- tional legislation. In most countries, there is some form As part of its strategy to be recognized as an employer of of anti-discrimination legislation in place, although regula- choice, Ukrainian company Mriya has developed a suite tory frameworks (and enforcement) are weak in some of women- and family-friendly HR policies and practices countries and discrimination on the grounds of gender and takes pride in diligently applying its equal oppor- is still common.69 Leading companies often look beyond tunity policy in recruitment and promotion processes. the minimum requirements set out in national legislation Many Ukrainian employers are reportedly reluctant to hire when setting their own policies and consider broader women aged 22 to 30 years as they expect women of this standards and good practice adopted by their global age to have children and take up to three years of ma- peers. In these cases, good policies and practices can ternity and childcare leave. However, in 2010 and 2011, have an important ripple effect on other employers in over a third of all women recruited by Mriya were under the industry or region, as other companies are motivated 28 years old, demonstrating that the company applies its 70 C. Niethammer, Women’s Employment: Smart Business? 69 International Labour Organization, Equality at work: The con- Promoting the Quality of Jobs for Women, IFC SmartLessons tinuing challenge, 2011: series, 2012. 30 Investing in women’s employment: Good for business, good for development anti-discrimination policy and supports the recruitment workplace that particularly affect them, such as breaks for of women of child-bearing age. Unlike some other local breastfeeding. The representatives collect agenda items companies that advertise for men or women to fill particu- from women during the course of the working day, and lar positions, Mriya keeps its job advertisements strictly then meet monthly with management representatives to gender-neutral.71 discuss the issues. The company provides a training and capacity building program for elected representatives to Sustaining open communication with ensure the ongoing effectiveness of the committees. workers Employee consultation and dialogue not only provides a Thinking flexibly about legal restrictions better insight into what is happening in the workplace—for In some countries, legislation mandates extra protec- women and men alike—but can also increase employee tion for women, which may lead to higher costs or con- loyalty by underlining management interest in the work- strain women from entering some sectors or occupations. place and can ensure input into and support for future Typically, protective legislation relates to restrictions on interventions on women’s employment. It means ensur- women’s participation in night work, hazardous work or ing that all workers—women and men—have a voice in the manual lifting. According to a joint IFC-World Bank study, workplace, including through adequate grievance mecha- 44 countries restrict the working hours of women and 71 nisms. Where elected worker representatives or trade limit the industries in which women may work relative to unions are present, they should be included in consultation men.73 and dialogue. Often these barriers can be overcome by thinking laterally. Nalt Enterprise has established a series of mechanisms In India, legislation prohibits women from working after 7 for consulting with workers to understand and address pm. Indian chemicals company Meghmani was con- their concerns. In addition to regular liaison with the cerned that employing women could pose difficulties for factory’s trade union representative, Ms Trang Phan, the its production schedule; however, the company identified Managing Director, holds monthly staff meetings to tell a number of positions (in the laboratory, warehouse and workers about the factory’s upcoming orders and general the canteen as well as janitorial positions) that could be business performance and provide advance notice of likely carried out by women within statutory limits. overtime hours. Workers can raise issues during the staff meeting or, for more personal matters, the HR department Tackling sexual harassment has an open door policy to answer further questions over Tackling sexual harassment is often a challenging and workers’ lunch break. Supervisors may also raise work- sensitive topic for employers to deal with. It can some- ers’ issues with senior management during daily produc- times be a difficult problem to detect, as there may be a tion meetings. Workers appreciate this approach, which culture of acceptance of certain behavior towards women, contrasts strongly with the purely production-focused either as a result of workplace practice or social norms. approach adopted by many other factories.72 For instance, a survey of Malaysian women workers found Some companies have introduced innovative mecha- that 73 percent of those who had experienced sexual nisms in order to ensure that women workers’ voices harassment did not label it as such, even though they felt are heard on issues that impact on their employment. Finlays Horticulture Kenya has established gender committees composed of elected female representatives to provide women with a stronger voice on issues in the 73 World Bank and IFC, Women, Business and the Law 2012: Removing Barriers to Economic Inclusion, p 20: http://wbl. 71 Information provided by Mriya, 2012. worldbank.org/~/media/FPDKM/WBL/Documents/Reports/2012/ 72 Information provided Nalt Enterprise, 2012. Women-Business-and-the-Law-2012.pdf Putting it into practice: how leading companies support women’s employment 31 offended or disturbed.74 It may also go unreported by number of men), a lack of bargaining power or collec- women because of social stigma attached to discussing tive voice for women (e.g., women are more vulnerable any experiences of a sexual nature: a US study found that when their employment is insecure), perceptions of the majority of women who experience sexual harassment certain groups of women workers as “promiscuous” (e.g., do not lodge a formal complaint or discuss the matter women from certain ethnic groups) and production pres- with a supervisor. In some cultures, victims themselves 75 sures that lead to abusive disciplinary measures.79 are stigmatized and may experience a “loss of honor” by All businesses should have measures in place to address drawing attention to experiences of harassment.76 Poorer sexual harassment, as it can occur in all countries, sec- and less educated women workers (especially migrant tors and categories of employment.80 Important tools workers) are often more vulnerable to harassment, as they for addressing sexual harassment include a clear anti-ha- may be less aware of their legal rights, and cultural norms rassment policy, anti-harassment training for staff and ap- may make it difficult for them to speak out, particularly on propriate mechanisms for workers to lodge grievances and sensitive issues such as harassment by male co-workers or seek support. Increasing supervisor awareness and skills to supervisors. deal with sexual harassment can be particularly effective. However, although it can be uncomfortable to discuss and In its efforts to create a culture free of sexual harassment, confront, sexual harassment is an extremely serious Finlays Horticulture Kenya found that a combination of issue that should not be ignored or underestimated: policies, training and proactive support for women workers it creates a hostile working environment for women work- helped to bring about change. First, the company devel- ers that negatively affects their physical and psychological oped a clear policy on sexual harassment that was commu- well-being and can act as a barrier to women’s employ- nicated throughout the organization and integrated into ment.77 From a business point of view, it undermines the company handbook and induction training. Second, labor productivity, retention, attendance and workplace a program of training was rolled out for supervisors that communication78 and can expose companies to potentially included a strong component on anti-discrimination and time-consuming and expensive legal claims. Research on harassment. Alongside these measures, the company’s the garment industry in developing countries indicates gender committees help to empower women workers to that key risk factors include a clear power differential speak up on a range of issues, including sexual harassment. between men and women in the workplace (e.g., young, Finally, sexual harassment also tends to be less common inexperienced migrant women are supervised by a small in organizations with a more even gender balance at all 74 Sabitha Bte Marican and Asmak Ab Rahman, “Experiences, levels of the organization; thus, taking measures to en- Effects and Combating Sexual Harassment at the Workplace: A Malaysian Case,” International Journal of Business Innovation, sure that women have fair access to promotion and 1(1), 2012, pp 95-112, p 101: www.cibmp.org/journals/index. account for a significant number of managers and php/ijib/article/viewFile/5/5 supervisors is also likely to contribute to a sexual harass- 75 Kimberley T. Schneider, Suzanne Swan and Louise F. Fitzgerald, “Job-Related and Psychological Effects of Sexual Harassment in ment free workplace. the Workplace: Empirical Evidence from Two Organisations,” Journal of Applied Psychology 82(3), 1997, pp 401-15, at pp 406-7. 76 Ghada Barsoum, Ali Rashed and Dahlia Hassanien, When there is no respect at work: Job quality issues in Egypt’s private sector, Population Council working paper, 2009: www.popcouncil.org/ pdfs/wp/mena/02.pdf 77 Where there are clearly delineated cultural boundaries in inter- actions between men and women, even the possibility of sexual 79 Better Work Jordan, Response to Classic Fashion Apparel harassment or time spent alone with men can act as a barrier to Industries allegations of sexual assault and Better Work Jordan women seeking employment. Ibid. follow-up on the issue of sexual harassment, 2012: http:// 78 Yulya Truskinovsky, Janet Rubin and Drusilla Brown, Sexual betterwork.com/jordan/wp-content/uploads/Classic-Fashion- Harassment in Apparel Firms: A Report from Better Work Apparel-Industrie-allegations-of-sexual-assault-and-Better-Work- Monitoring and Evaluation, Tufts University working paper, Jordan-follow-up2.pdf 2013. 80 International Labour Organization, 2011, op cit. 32 Investing in women’s employment: Good for business, good for development tone for working with women colleagues. Ideally, senior Human resource policies and management participation in interventions to support procedures: key advice women should be visible to others; for example, through »» Make sure that the company’s HR policies set out a using family friendly working arrangements themselves or clear commitment gender inclusion in all stages of the attending events to support women. employment relationship, and include a zero tolerance approach to sexual harassment. Improving gender diversity should be treated in the »» Ensure that all policies are gender-sensitive and take same way as any other strategic business objective, into account factors that affect men and women including by outlining the business case, setting goals differently. and measuring progress: this can help to maintain a high »» Ensure that policies and commitments are effectively level of engagement amongst busy senior executives. communicated to managers and supervisors and are applied consistently. Otherwise, despite the best intentions, there is a risk that »» Acknowledge that sexual harassment can be an issue in initiatives may fall down the company’s list of competing any workplace and be prepared to discuss it openly. priorities. In 2012, Anglo American MetCoal conducted »» Make sure that men and women alike have access inclusive leadership workshops in order to engage more to grievance mechanisms, particularly with respect to than 90 of its senior leaders on the value of gender diver- gender-sensitive issues such as sexual harassment. sity and the issue of unconscious bias, and held a round- »» Establish channels for regular, open communication with workers, including staff meetings, consultation table discussion for its executive leadership team to ensure with worker representatives, HR communication points that those who are responsible for key employment deci- and company newsletters. sions have a mindset that is open to diversity.81 Outlining the business case can help to mobilize senior managers who are skeptical of the need for specific initia- Creating a supportive tives on women’s employment. PepsiCo Asia Pacific has firmly embedded the business case for gender diversity in management culture its internal and strategic communications by conveying the business case to all of its employees and integrating Creating awareness and harnessing CEO and senior management commitment women’s employment into the company’s performance objectives. Aligned with these objectives, the company has Chief executive officers (CEOs) and senior manag- female development and leadership programs, work life ers have a critical role to play in creating a support- balance programs, gender diversity analytics for hiring and ive company culture for women workers. Creating succession planning decisions and mentoring programs.82 organizational change can be a difficult and long process: Today, women represent 45 percent of the Executive it may mean working to change basic and underlying Committee, 37.5 percent of executive staff and 34.1 per- assumptions or unconscious biases about what men and cent of senior management in PepsiCo Asia Pacific. women can or can’t do in the workplace. The attention and commitment of CEOs and senior management can CEOs and senior managers with a deep personal commit- help to transform these attitudes and behavior, by setting ment to gender diversity can make a real difference. These the tone for others. managers can help to create and/or maintain momentum, by acting as “champions” and advocates for women’s Where senior management is seen to be clearly in favor of employment, and influencing company culture and work- policies to support women, it plays an invaluable role in place behavior at all levels. creating the momentum for change. This point is stressed by Brazilian company Odebrecht, which considers that managers on its sites need to lead by example and set the 81 Information provided by Anglo American, 2012. 82 Material provided by PepsiCo, 2012. Putting it into practice: how leading companies support women’s employment 33 Ensuring a representative proportion of women in managerial and supervisor Building a supportive culture for positions women’s progression: PepsiCo Pakistan Getting more women into leadership positions can According to Jahanzeb Khan, the General Manager of have a positive transformative effect, by showcasing PepsiCo Pakistan Beverages, “At PepsiCo Pakistan, as part women’s abilities, providing other women with role mod- of ensuring diversity and inclusion, we aim to increase gender diversity by hiring talented females, sponsoring els and mentors and developing a more inclusive culture. their development and ensuring that we take initiatives to Whilst some companies have made progress, this is an support their career progression.” area where many continue to struggle. The company’s ongoing commitment to women’s professional development and growth in the organization Unconscious gender bias can undermine women’s includes drawing on the company’s global training chances for promotion, but is difficult to address. offerings such as the “Powerful Woman Program.” In A recent survey of male and female business managers addition, each woman in the organization is provided with a mentor to support her development and to strengthen a carried out by French consultancy Diverseo found that im- culture of openness and trust. ages of men were more likely to be readily associated with Romana Aziz, Franchise Manager in South Pakistan says leadership roles than images of women, although the vast “PepsiCo not just recognizes the performance and potential majority of those surveyed explicitly agreed that women that women bring to the table, but also equips them with and men were equally effective leaders.83 Similarly, a study the necessary tools like empowerment, training, a secure and happy work environment, gender friendly policies and in the Chilean mining industry found that, while more than challenging assignments to name a few.” 75 percent of survey respondents agreed that it was in the As a result of its initiatives on gender diversity and support best interests of their organization to recruit more women, for women employees, PepsiCo Pakistan has achieved only 57 percent of men and 64 percent of women said 30% female representation, which it estimates to be one that they would like to have a female manager;84 and a of the highest levels in the sector. Females are represented Malaysian study found that both male and female manag- at all levels, including as 20% of the senior leadership team of Pakistan Beverages. ers where much more likely to be critical of their female than their male peers.85 In this context, Odebrecht notes Source: Information provided by PepsiCo Pakistan. that a higher proportion of women in management gives successful women a more visible profile in the organization and can help to change attitudes and create acceptance. This is supported by the findings of the Diverseo study, where male managers with female bosses were much more likely to respond positively to female images.86 Mentoring and professional networking opportuni- ties can provide women with the tools that they need to progress as leaders. Chinese healthcare provider Chindex has launched a Women’s Leadership Program, which aims Female Front Line Manager at PepsiCo plant. Photo: PepsiCo 83 Diverseo, The unconscious sealing: Women in leadership, 2012: http://www.diverseo.com/assets/Diverseo_Unconscious_Sealing_ Women_In_Leadership.pdf 84 Elizabeth R. Ayala Rivadeneira, Mujer y Minería: Situación de la Industria Chilena, Masters thesis, University of Chile, 2012, p 25. 85 Cited in World Bank, Malaysia Economic Monitor: Unlocking Women’s Potential, 2012, p 32. 86 Diverseo, op cit. 34 Investing in women’s employment: Good for business, good for development to prepare staff for management positions and build lead- which to help pay for further education and/or training.88 ership capacity from within the company.87 Many managers provide extra encouragement to women to boost their confidence and increase their take-up of Women-focused programs can provide specialized guid- opportunities for training and promotions. ance, but should be carefully positioned to ensure that they are not dismissed by male colleagues or superiors Providing training and incentives for as a “women’s thing.” Equally, it is important that these middle managers and supervisors initiatives do not create or reinforce ideas that women Shifting mindsets amongst middle and lower man- need additional training to be leaders. Rio Tinto runs a agement is important: these managers are the com- number of senior development programs for mid-level pany’s “front line” with its workforce and responsible managerial women and engages external organizations to for implementing the company’s policies on a day to day equip high-potential female employees with board-ready basis. Support for gender diversity initiatives amongst this financial skills. group cannot be assumed: a 2012 McKinsey survey found Female role models are particularly important in industries that support for gender diversity policies tends to dwindle and occupations with low levels of female employment at lower levels of management and male managers tend and few women in the senior ranks. Ms Sara Akbar is the to be less convinced of the need for gender diversity initia- founder and Chief Executive Officer of Kuwait Energy, tives.89 This suggests that organizations need to work an independent oil and gas company and IFC client, and particularly hard to engage middle managers and one of the few women leaders in the sector. Ms Akbar change attitudes at these levels. strongly believes in the value of mentoring younger wom- Training is a powerful tool to ensure that managers are en: she plays an active role in the Kuwait Oil Company aware of company policies on equal opportunity and Professional Women Network (established in June 2009) anti-discrimination, understand why they have been to guide and motivate women in the sector on how to overcome barriers and pursue opportunities for profes- sional development and success. “Behaviors that align and support diversity In an industry where men traditionally constitute the and inclusion are embedded in our leadership, vast majority of supervisors and managers, Finlays management and individual effectiveness model, Horticulture Kenya has established a comprehensive which link to performance evaluation and career training program to support the professional devel- progression. Leaders and managers receive 360º opment of all of its employees, women and men. and 180º feedback on their inclusion skills.” Whilst training is available to all employees regardless of —PepsiCo, Diversity and Inclusion gender, women benefit in particular, as they start from position of comparative disadvantage in the labor market. This is particularly the case in rural areas, where women are more likely to have lower levels of literacy and formal 88 A. Ellis, Gender and Economic Growth in Kenya: Unleashing the Power of Women, World Bank report, 2007, p 10: www.ifc.org/ education than men and fewer financial resources from ifcext/enviro.nsf/AttachmentsByTitle/p_GEM_GenderandEcono micGrowthinKenya/$FILE/Gender+and+Economic+Growth+in+ Kenya.pdf. While measures to increase girls’ access to education have improved gender parity in education, gender disparity persists in rural and poor areas and, across the country, female literacy remains markedly lower than male literacy. World Bank, Country Partnership Strategy – Kenya, 2010-2013, p 5. 89 For example, the survey found that male managers often 87 IFC, “Promoting women’s employment opportunities in China’s felt that internal processes were already sufficiently equi- healthcare sector,” March 2013: http://www1.ifc.org/wps/ table. McKinsey, Women Matter, 2012, pp 11-12: www. wcm/connect/7786ca804eda703a8e00cf3eac88a2f8/sba-proj- mckinsey.com/locations/swiss/news_publications/pdf/Women_ chindex.pdf?MOD=AJPERES Matter_2012.pdf Putting it into practice: how leading companies support women’s employment 35 introduced and know how to apply them in practice. In addition to outlining the moral case for non-discrimination Anglo American, Chile: Gender and non-harassment, training can also be a forum for out- workshops for supervisors lining the business case for supporting women’s employ- In 2012, Anglo American ran a series of gender diversity ment as another method for convincing supervisors and workshops for supervisors across all of its operations in managers. In order to equip its managers with the skills Chile. One of the goals of the workshops was to explain Anglo American’s gender diversity strategy, to promote they need, PepsiCo managers attend “Appreciating the awareness of the company’s policy and the reasons Difference” and “Core Inclusion Skills” workshops as part for it. of their training, both of which specifically address gender A further objective was to provide a space for open and inclusion.90 At the same time, managers are held account- frank discussion. Participants were encouraged to discuss able by setting hard and soft targets for gender represen- positive and negative personal experiences and raise any doubts, questions or concerns about company policies tation and inclusion; results affect annual merit increases and procedures on gender diversity. For example, in some and bonuses.91 workshops, male supervisors revealed lingering anxieties about whether they needed to adapt their management Training is particularly important in sectors with tradition- style to manage women, while women supervisors took ally low levels of women’s employment, where male man- the opportunity to share their personal experiences—good agers and supervisors have little experience in managing and bad—of working in a male-dominated environment. mixed teams of men and women. An important aspect of A key outcome of each workshop is a “co-existence agreement” (acuerdo de convivencia): an agreed set of this kind of training is about providing a space for frank mutual commitments unique to each operation. These discussion and getting unconscious gender biases out into are a list of simple actions that men and women agree to the open. In an industry where supervisors are tradition- take on board to help make life in the workplace easier for ally male, Finlays Horticulture Kenya found that gender everyone. Sample commitments include: awareness training was an important catalyst for improv- • “I will develop empathy, by remembering to put myself in other people’s shoes” ing relations between supervisors and women workers.92 • “I will use respectful language, but not by being over- Anglo American Copper has developed a particularly protective or excluding others from discussions” innovative approach to training supervisors on gender • “I will not downplay situations that undermine respect awareness (see box). for gender or other differences.” Tangible measures of accountability help to complement Once agreed, these agreements are posted on notice boards throughout the workplace. The site-specific nature training and culture change initiatives, by integrating of the commitments helps to give a greater sense of targets, goals and measurements into the appraisal of ownership to supervisors and provide a concrete reminder individual managers and criteria for promotion to the of how to put the policy into practice each day. next level. Such performance measures help anchor the Feedback from the workshops has been extremely diversity strategy in the operational reality of management positive, from men and women alike. Some male supervisors admitted to being initially skeptical, but said and help supervisors and managers check that they are on that by the end of the workshop they were extremely glad track. Such measures, for example, may include hiring and that they had participated. On this basis, the program will promotion goals related to gender diversity, reductions in be continued in 2013. incidents of harassment, access to training; and broader Source: Interviews with company staff, Anglo American Copper, Chile. measures of employee morale. 90 PepsiCo, Diversity and Inclusion: Inclusive Possibilities. 91 Ibid. 92 Ethical Trading Initiative, “Finlay’s Horticulture’s work on em- powering supervisors,” 2011: www.ethicaltrade.org/training/ supervisor-training/finlays-horticulture 36 Investing in women’s employment: Good for business, good for development women in the business was to try to improve the percent- Creating a supportive management age of women workers in any cohort of new recruits. As culture: key advice the mine’s workforce expanded from 481 in 2006 to 842 »» Maintain the attention of senior managers by linking in 2012, the operation made a special effort to target women’s employment directly to key business priorities. women and men alike in their advertising campaigns.93 »» Ensure that the support of CEO and senior managers is This allowed the operation to more than double the num- made visible throughout the company, by e.g., involving ber of women on site. them in communicating company policies and initiatives on women’s employment. »» Identify “champions” for women’s employment at Reaching out to women and communities senior levels. Increasing women’s employment in jobs which were »» Support women to take on leadership roles in the work- previously predominantly or solely done by men is place by providing management training, mentoring likely to require some active outreach to convince and networking opportunities. »» Strive for equal promotion rates for men and women (and their families) that they are truly women and/or consider setting targets for women in welcome and that the working environment is safe. management. Traditional views of what is appropriate work for women »» Consider workshops for supervisors on gender aware- and men can create considerable barriers to women’s ness and company policies to change mind-sets and entry into certain jobs or sectors. These ideas are often start a dialogue about women’s employment. firmly entrenched amongst both men and women and can »» Provide training for supervisors and managers on how to recognize and deal with sexual harassment. be difficult to shift, in part because they are not always »» Create meaningful accountability measures to help openly voiced, but rather accepted as common practice. supervisors and managers know that they are on track According to multi-country research carried out by the with the implementation of the company’s gender World Bank, about 50 percent of all jobs are considered diversity strategy. to be “men’s jobs” or “women’s jobs.”94 To address these barriers, companies have effectively used different types of outreach to provide women and their families with better information about their workplaces and to encour- Attracting women into non- age women to apply for work in jobs that are traditionally traditional roles and sectors seen as men’s jobs. Using moments of workforce expansion Some companies have finely honed their strategies for as an opportunity to increase gender reaching out to women in local communities. Community diversity consultations associated with new projects are a highly It can be difficult for companies to bring about any signifi- effective mechanism for publicizing new training and cant changes to the composition of their workforce within employment opportunities. Rio Tinto has developed a a short timeframe, including to their gender diversity resource guide for integrating gender considerations into profile. More often, these changes have to be phased community outreach, including pointers on how to maxi- in over several years. However, where companies are mize the participation of women in community consulta- undergoing business expansion and recruiting large tions, such as through holding meetings at convenient lo- numbers of new workers, this can provide a unique cations and times for local women, providing support for opportunity to train and/or recruit more women child care during meetings and providing transport to and workers. Given very low levels of staff turnover at Anglo American’s El Soldado operation in Chile (2 percent in 93 Information provided by Anglo American, 2012. 2012), Karl Heimrich, the site’s human resource manager, 94 World Bank, World Development Report 2012: Gender Equality knew that the best way to increase the proportion of and Development, 2011, p 211. Putting it into practice: how leading companies support women’s employment 37 from meetings.95 When constructing a greenfield chemical their husbands or families to apply for a job.97 When Rio site in India, Meghmani used consultations to encour- Tinto decided to recruit women to work as in security at age women’s applications, to inform women and their its Bunder site in rural India, the company was told by a families that the workplace included separate changing number of security contractors that they would never be facilities for women and men and to determine whether able to recruit women to fill the positions as a result of there were any other concerns that could act as a barrier the remote location of the site.98 The company persevered to women’s employment. Similarly, at its Santo Antônio 96 and, as one part of its strategy, flew family members site, Odebrecht promoted its skills training programs (particularly fathers) to the mine in order to show them through community consultations and a publicity cam- personally that the women would be provided with a paign that targeted community organizations. According safe and protected working environment.99 Community to Odebrecht, many women at the consultations would outreach played a crucial role in convincing local women leave, thinking that the training on offer was more suit- to train as drivers and overcoming local wariness—often able for men; however, some stayed and enrolled. When expressed by male family members—about the appro- these women started to join the program and got jobs, priateness of women taking on non-traditional roles and this showed others that it was possible and “opened the working alongside men. According to community relations floodgates” for others. advisor, Santosh Pathak, “It helped that they could see that we were part of a big, stable organisation and a defi- In some industries, women may be concerned about the nite influence was that our project director at that time … challenges associated with learning new skills or combin- was a woman.”100 ing employment with family responsibilities. One of the HR managers at Anglo American in Chile noted that Providing skills development and companies can engage with women, either during com- training opportunities munity consultations or job interviews, and provide ex- In sectors where women are traditionally under- amples of how other women manage these issues. Daniel represented, an important step is to provide women Dominguez, Human Resource Manager at the Chagres with access to the skills training they need to apply copper smelter noted that “some women automatically for jobs and perform to their full potential. This might assumed that shift work in the mines was incompatible entail specific entry-level training for women to prepare with family life. However, once we explained that other them for work, providing them with knowledge which women successfully combine the job with family respon- men are more likely to have received informally from their sibilities (for example by arranging extra childcare), they fathers or peers when growing up. Such initial pre-training changed their minds and decided to take the job.” programs can also prevent women from effectively being In some cultures, it is important to persuade hus- set up to fail by being put into positions for which they bands and family members as well as women of don’t have the skills or fitness. This can lead to skeptics the merits of certain jobs and workplaces. It may be feeling that their ideas about women’s lack of suitability culturally unacceptable for women to associate with men who are not members of their families or women may 97 There are on average fewer women in the workforce in be expected or legally required to seek permission from countries where women need their husband or guardian’s permission, compared to countries where this restriction does not exist. IFC / World Bank, 2011, op cit, p 26: http://wbl. worldbank.org/~/media/FPDKM/WBL/Documents/Reports/2012/ Women-Business-and-the-Law-2012.pdf 98 Regulations from the diamond industry mean that security personnel have to be employed from outside the local commu- nity and therefore need to be willing to work and stay on site. 95 Rio Tinto, Why gender matters, 2010, op cit, p 27. Rio Tinto, 2013, op cit. 96 Jiang, 2011, op cit; Meghmani Organics Limited presentation at 99 Information provided by Rio Tinto, 2012. IFC workshop, Washington DC, April 2012. 100 Rio Tinto, op cit, 2013. 38 Investing in women’s employment: Good for business, good for development for certain jobs have been validated and may block future progress for women in the organization. Belcorp: Empowering women through training The right training opportunities can provide women Belcorp, a Peruvian direct sales beauty product company, with the foothold they need to boost their earning gives each of its 650,000 beauty consultants (most from capacity. By applying a scrupulously inclusive application low-income households) the opportunity to become policy, Odebrecht succeeded in attracting a high propor- entrepreneurs and to benefit from business training, social tion of women into its skills development program in a networking, and group activities to educate and empower them, their families, and their communities. Key initiatives remote part of Brazil—and then later into operational include Grandes Mujeres (Great Women), a coaching positions on site.101 For the women who were recruited program to lift women’s self-esteem, and Mujeres into skilled jobs on the site, this meant a significant jump Iluminando Mujeres (Women Illuminating Women), which in wages compared to their previous jobs in more tradi- focuses on granting scholarships. tionally female occupations (such as beauty salon assis- These initiatives have provided an important opportunity for Belcorp’s beauty consultants, many of whom come tants). Some male managers and supervisors were initially from low-income households. According to Jessica Mina, skeptical that women would be able to cope with the from Ecuador, “The ‘Grandes Mujeres’ Programme physical environment and demands of the job. However, generated a turning point in my life and gave me the this skepticism proved unfounded. Odebrecht’s training strength to say ‘Yes I can’. Today I am an attractive woman, a dreamer, an entrepreneur, and I am eager program meant that women were given a foothold on the to go ahead.” site and the opportunity win over the skeptics. (Later on, Source: Information provided by Belcorp. Odebrecht also included gender awareness modules in its leadership training for supervisors.) Companies can also help to change attitudes by education an impossible goal. In recognition of these diffi- encouraging female students to consider working in culties, some companies provide opportunities for women non-traditional fields or occupations, including through to fulfill their full potential. Chinese healthcare provider the provision of scholarships. In Chile, Anglo American Chindex sponsors its staff to pursue advanced educa- has a Pre-Graduate Program which seeks to attract, develop tion in hospital-related fields: over 70 percent of partici- and retain young students in their last years of study as pants are women.103 In addition to its workplace training, potential candidates to enter the company’s Graduate Finlays runs an educational loan scheme, which enables Program. The aim is to ensure that at least 30 percent of workers to complete formal qualifications outside the participants are women who are studying in disciplines workplace and enhance their professional options and where the number of female graduates has been histori- social mobility. This provides a crucial springboard for cally scarce. Successful applicants to the program are given low-income women workers, in particular those who have $5000 scholarships and the opportunity to complete an withdrawn from formal education by financial necessity to internship, which includes the assignment of a professional support their families, rather than by personal choice. mentor, at one of Anglo American’s operations. The com- pany visits universities and career fairs and uses social me- dia to contact young students and publicize the program.102 Setting numerical targets Setting numerical targets for women’s participation is However, for many young women in emerging markets, one way that companies seek to create momentum on these kinds of opportunities may seem out of reach, with women’s employment. In a business environment, financial difficulties making secondary education or higher 103 IFC, “Promoting women’s employment opportunities in China’s 101 Interview with Odebrecht staff, Porto Velho, Brazil, August healthcare sector,” March 2013: http://www1.ifc.org/wps/ 2012. wcm/connect/7786ca804eda703a8e00cf3eac88a2f8/sba-proj- 102 Information provided by Anglo American, 2012. chindex.pdf?MOD=AJPERES Putting it into practice: how leading companies support women’s employment 39 Sumitomo Chemical Group: Joint venture in Tanzania brings business benefits as well as training opportunities and better wages for local women The Japanese-based Sumitomo Chemical Group has over an important contribution to local employment and economic 100 subsidiaries and affiliates, and operates businesses in five development. sectors—basic chemicals, petrochemicals, IT-related chemicals, The Olyset® Net factories provide valuable opportunities health & crop sciences, and pharmaceuticals. for training and personal development, which are Sumitomo Chemical provided a royalty free license to A to advantageous for the company and workers alike. It is Z Textile Mills Limited, a Tanzanian company in Arusha, for difficult for the joint venture to recruit semi-skilled workers the technology used to produce Olyset® Net, a long-lasting (many workers have only primary school education), so it aims insecticide-treated bed net. To this point, production had to build its own pool of semi-skilled workers through its training been based in East Asia, but Sumitomo wanted to establish programme and provide enhanced possibilities for workers to a manufacturing base in sub-Saharan Africa, where there is gain internal promotion. The Olyset® Net factories now have greatest need for the nets as a result of high levels of malaria. a training package that spans a range of areas, including work In 2007, Sumitomo Chemical established Vector Health education, technical and IT skills, environmental and health and International Limited, a joint venture with A to Z Textile Mills safety training, management skills, language classes and financial and opened a new factory in Arusha. Africa-based Olyset® Net literacy. Trade union representatives are provided space on site to production now accounts for 50 percent of global production run training sessions on workers’ laws and rights. capacity, with the Tanzanian factories producing approximately The Olyset® Net facilities bring significant economic benefits 30 million nets per year. In the local area, the Olyset® Net for the 7000 workers that they employ, 61 percent of business has provided around 7,000 job opportunities, making whom are women. In a survey of employees, 71 percent said that their job at Olyset® Net was helping them to send their children to school and 75 percent said that their wages allowed them to support their family and relations. There are a number of additional non-wage benefits for workers, including on-site childcare, free meals during shifts, free on-site accommodation (for up to 1500 workers), safe transport for workers who live off-site, health centres at both sites (including HIV/AIDS testing) and small interest-free loans, including for education of children. These benefits are particularly meaningful for Tanzanian women, who are much less likely than to find formal wage-employment in the non-agricultural sector and, across the economy, earn about 40 percent less than men. Sources: www.olyset.net; information provided by Sumitomo Chemical, April 2013; M. Jennings, Economic Impact of Local Manufacturing of Bednets: A Survey, 2011: www.olyset.net/pdf/SOAS_Economic_Impact%20%20Survey_April_2011. Female worker at Olyset™ Factory in Tanzania. Photo: © M. Hallahan/Sumitomo pdf; International Labour Organization, Decent Work Country Profile –Tanzania Chemical (mainland), 2010. targets can help to create a greater sense of account- instance, Continental is aiming to increase the number of ability and managers that have reporting commit- women in top management across its global operations ments are more likely to work hard to meet them. from the current 8 percent to 16 percent by 2020. A number of global companies have adopted targets Global mining companies Anglo American and Rio particularly to increase the proportion of women in man- Tinto have both developed a series of targets and report- agement, but numerical targets may also be developed for ing policies for increasing the proportion of women in the workforce more generally (in companies or industries employment and developing women into senior roles. with traditionally low levels of female participation) or for Gender diversity is one of Anglo American’s 14 global particular occupations (in companies or industries where performance indicators, alongside financial targets and roles are traditionally segregated along gender lines). For 40 Investing in women’s employment: Good for business, good for development Some companies are reluctant to set targets for women’s employment or promotion, for fear that this would un- “Having a target on gender diversity helps dermine a culture of meritocracy. However, for Rio Tinto, to focus a company’s attention. Mining is an industry that is keenly focused on key the purpose of targets is not to promote people without performance indicators: people respond to the regard for merit, but rather “to make the company sit up language of targets” and take action to address the issue.”107 The company has made steady progress on its targets to increase the repre- —Edwin Ugarte, Planning and Resource Manager, Anglo American Chile sentation of women in senior management from 15 per- cent to 20 percent.108 The company has also committed to improving the representation of women in its graduate safety measures. Each of its business units has set targets intake from 25 percent to 40 percent by 2015.109 for increasing the proportion of women in the workforce, However, it is important to note that, whilst some compa- including a separate target at management level. In 2011, nies find numerical targets helpful to create momentum women represented 15 percent of the company’s global on gender diversity, they are not effective in isolation: workforce and 22 percent of its managers.104 In Chile, one resources must be allocated to attract and develop women of the company’s strategies for meeting the target is to so that they are ready to be appointed or promoted into ensure that in recruitment processes, women constitute the target areas. For example, Anglo American Copper 30 percent of the long-listed applicants for each position conceptualizes targets (“access”) as only one step in the (as far as this is possible). The company stresses that the journey towards greater gender diversity and equally priori- purpose of targets is not about getting rid of merit-based tizes efforts to introduce cultural change and measures to recruitment or pushing women into roles that they are not support women’s participation in the workplace (“integra- ready for: it’s about making sure that women are given a tion”). This also includes paying attention to the physical chance and that gender diversity is given a visible profile environment and ensuring that women have access to basic within the organization. facilities such as toilets and changing rooms (see below). In the manufacturing sector, Hitachi, the Japanese electronics and engineering multinational, has set its own Considering how the physical workplace ambitious global target. By 2020, the company aims to could be adapted to open up more jobs more than double the number of women currently in man- to women agement positions from nearly 400 to 1000, raising the When certain jobs or workplaces involve strenuous tasks, proportion of women managers from 3.4 percent to 10 such as heavy lifting, it can be easy to assume that women percent.105 To support its goal, Hitachi’s HR department is are inherently unsuited to the job. This is often because looking to establish a women-targeted leadership training the task has been done a particular way for a long time for employees, alongside existing initiatives such as diver- and there is an accepted way of doing it. However, whilst sity training for managers and workshops for employees to there are physically challenging aspects in some working discuss issues of gender balance and work-life balance.106 environments that cannot be changed (for example, the need to work outdoors in a hot climate), it is possible that some tasks may be adjusted with very little effort or cost. 107 Narelle Crux, talent management global practice leader, Rio 104 Anglo American, Anglo American: Annual Report 2011, Tinto, cited in Louisa Peacock, “Case study: Rio Tinto says tar- 2012, p 15: http://ar11.angloamerican.com/_assets/pdf/final/ gets for boosting female numbers “vital,”” The Telegraph (UK), AA_AR2011.pdf 2 October 2011: www.telegraph.co.uk/finance/jobs/8800091/ 105 Based on information provided by Hitachi and Hitachi, “Diversity Case-study-Rio-Tinto-says-targets-for-boosting-female-numbers- Management,” website consulted 7 June 2013: www.hitachi. vital.html com/csr/society/diversity/index.html 108 Information provided by Rio Tinto, October 2012. 106 Ibid. 109 Ibid. Putting it into practice: how leading companies support women’s employment 41 Sometimes, workplace adaptations that help women Similarly, at Anglo American’s El Soldado mine in Chile, can make the workplace safer for everyone. In Chile, heavy chocks are used under truck wheels to prevent ac- when the Anglo American Chagres copper smelter cidental movement when the vehicle is stationery. When decided to boost the number of women workers in the women started working as truck drivers on site for the first workplace, the company tried to identify which jobs could time, managers noticed that women were complaining be carried out without the need for excessive physical of strain in the arms and shoulders. Managers recognized strength. One woman was appointed to a position that in- that these chocks were being stored too high for some volved turning a wheel to open and close the flow of sulph- women to remove them safely from trucks. At no cost, uric acid into a tank. On the face of it, the job didn’t seem they were shifted to a lower storage area on the trucks. to require considerable physical strength; however, the At Continental’s automotive parts plant in Thailand, woman reported that it was too tiring over the course of a management reduced the weight of boxes by 30 percent long shift. Managers explored options for introducing new in one part of an assembly line, when women workers on technology to adapt the machinery, but on closer inspec- a production line raised concerns that the boxes were too tion, found that the solution was considerably simpler and heavy for them to lift regularly over the course of their cheaper: the wheel mechanism just needed cleaning. After shift. This made the task more manageable for women, this was done, the task was easier and quicker for both without any adverse effect on productivity. men and women. Similarly, in relation to another position, loads for manual lifting were reduced from 40 to 20 kilo- grams, making it easier and safer for all workers to perform their jobs, without resulting in any decline in productivity. Creating female/family-friendly working conditions Putting in place family-compatible Women in non-traditional occupations working arrangements and sectors: key advice Working hours are one of the most important factors »» Use workforce expansion as an opportunity to recruit shaping women’s participation in paid employment, more women. particularly for women with young children or other care- »» Publicize training and job opportunities for women giving responsibilities.110 This is because cultural attitudes through active community outreach. mean that women generally tend to bear primary respon- »» Don’t set women up to fail: make sure that women have access to the training opportunities they need sibility for housework and care for dependents (including to perform jobs in management or non-traditional children and the elderly).111 When the only choice is to occupations. work full-time, all-the-time, many women may leave the »» Ensure that job advertisements make it clear that labor market altogether when they have children or, alter- women and men can apply. natively, seek flexibility in the form of self-employment or »» Consider providing tailored training opportunities to informal employment.112 women to improve their chances of employment or promotion, particularly with respect to non-traditional occupations. Most workplaces offer maternity leave—all countries have »» Consider setting numerical targets for the inclusion some form of paid or unpaid maternity leave or offer of women in recruitment and selection, training and promotions, and what kind of targets would be realistic 110 International Labour Organization, Beyond maternity and back and the type of resources that the company would to work: coping with childcare, Maternity Protection Resource need to meet them. Package, 2012, p 12: http://mprp.itcilo.org/allegati/en/m11.pdf 111 See, e.g., World Bank, WDR 2012, op cit, p 217. Hewlett and Rashid note that caring for elderly parents can be a particularly important consideration in some emerging markets, like China, India and UAE: op cit, p 9. 112 World Bank, WDR 2012, p 220. 42 Investing in women’s employment: Good for business, good for development maternity benefits through parental leave113—and pa- with extra flexibility in leave arrangements to take care of ternity leave is becoming increasingly common. Once the sick children. This may involve using unused annual leave worker returns from leave, they may need some flexibility or sick leave, through “time banking” or “shift swapping” over standard working hours. Providing access to alter- between employees. Women workers at Mriya in Ukraine native work arrangements, such as options to swap voiced their appreciation for managers’ willingness to ac- shifts with co-workers, reduced hours on a permanent or commodate requests for flexibility in cases of childcare or temporary basis, flexibility over starting and ending time, family emergencies.118 the use of time banks for emergency leaves, or other arrangements which make it possible for a worker to be both a good provider and a good caregiver for their family “A range of flexible work options are available can yield particular benefits for women workers (and, as across our markets in Asia, the Middle East and we discussed in Part 2, benefits for the business).114 Africa, including: Yet, whilst recognizing that women are most likely to • Flexible start and finish times be care-givers, interventions on family-friendly work- • Ability to work from home one day a week ing arrangements should support both women and • Summer hours men in caring for family dependants, while also allowing • Time in lieu (if travel occurs on the weekend) them to be productive and valued employees at work.115 When more family-friendly working arrangements were • Part-time options introduced at Itaipu, the largest power generator in the • Birthday off” world, both men and women appreciated the changes —PepsiCo, Diversity and Inclusion and worker satisfaction levels increased across the whole organization.116 Research suggests that employee de- mand for these arrangements is high in emerging economies: a survey of multinational companies in India Unforeseen overtime and unpredictable shifts can also be and South Africa found that employee demand for flexible particularly difficult for workers with care responsibilities, work schedules is high, and at comparable levels to Spain, but some companies have come up with solutions. Nalt the UK or the US.117 Enterprise focuses on advance planning to minimize the need for last-minute overtime hours and additional shifts, Often these policies can be offered at little or no extra cost providing greater predictability in working hours, which is to the organization, but make a big difference to working particularly important as many of its workers are mothers. parents and care-givers. For example, Chindex provides When overtime and additional shifts are required, advance women with flexibility in how they choose to take ma- notice is given and childcare services are provided as back- ternity leave, allowing them to split their entitlement into up.119 Apart from making work easier for its workers, such more than one period of time or increase their time off forward planning also helps the business to save money by taking unpaid leave. Other companies provide parents on overtime pay. 113 IFC / World Bank, Women, Business and the Law 2012: While working from home and teleworking may not be Removing barriers to economic inclusion, 2011, p 20: http://wbl. practical in all jobs, many jobs have elements that can worldbank.org/~/media/FPDKM/WBL/Documents/Reports/2012/ Women-Business-and-the-Law-2012.pdf be performed away from the workplace: as a back-up 114 See, e.g., World Bank, WDR 2012, op cit, p 217. possibility in emergencies, a regular option for a day a 115 See, e.g., International Labour Organization, Beyond maternity and back to work: coping with childcare, Maternity Protection Resource Package, 2012, p 9: http://mprp.itcilo.org/allegati/en/ m11.pdf 118 Interviews with Mriya workers, Ternopil, August 2012. 116 Niethammer, op cit, p 2. 119 Interview with Nalt Enterprise staff, Binh Duong Province, 117 Cited in Gornick and Hegewisch, op cit. Vietnam, July 2012. Putting it into practice: how leading companies support women’s employment 43 week, or possibly on a permanent basis. Working remotely labor migration.120 Whilst some workers may have access can help workers by reducing travel time to and from to government-run centers, often these do not meet the work. Working from home is, of course, no alternative needs of working parents in terms of opening hours, to childcare; yet allowing someone to work from home location, quality or cost. Almost half of all countries have may give them the flexibility to work during school hours, no formal childcare programs for children under three, have a break when children return from home, and then and for those that do, coverage is very limited.121 As such, return to work later during the day. Remote working can employer initiatives to assist women workers with also be a very welcome solution to employees with an childcare solutions can provide much-needed support elderly parent or spouse with a disability who may need for women and their families and, if implemented some assistance during the day. Key to the introduction according to need, may be relatively low cost. In some of home-based working, or any other alternative work ar- workplace childcare centers, workers pay a small sum to rangement, is to identify arrangements that work for both off-set some of the cost.122 the business and the individual. It will help to introduce Childcare facilities are often established by employers who any new arrangement on a pilot basis for a few weeks; have a large number of workers concentrated on indi- the evaluation of the pilot should include feedback from vidual and/or remote sites or whose working hours do not co-workers and others who might be affected. neatly correspond to the schedules of local facilities. They The experience of companies that widely use alternative are particularly common in companies with a large propor- work arrangements and make it possible for employees tion of female workers, such as in the garment sector or to take leave for their own or family care-giving needs agribusiness. For instance: suggests that two issues are central: communication • In Vietnam, Nalt Enterprise built a kindergarten next and cross-training. Having some workers work remotely to its factory, where workers can place their children makes it necessary for communication to be more explicit free of charge. The kindergarten is staffed by quali- between the worker, co-workers, customers (where rele- fied teachers and provides nutritious meals, clothing, vant) and supervisors. More explicit communication is likely school bags and books for the children. to be beneficial to all workers, whether they work standard hours in the main premises or work remotely. Ensuring • In Afghanistan, MTN, a multi-national telecommunica- that at least some workers are cross-trained so that they tions provider, has established a childcare centre for can perform more than one job task prevents unplanned its employees in order to address one of the barriers absences from interrupting production or service provision. that Afghan women face—access to quality formal Multi-skilling through job rotation or access to training childcare—in obtaining employment.123 So far, all programs is also likely to have benefits beyond the narrow eligible female staff have enrolled their children in the need of covering for absent co-workers by increasing the facility, where they are cared for by qualified childcare ability of workers to trouble-shoot and innovate. professionals. • In Kenya, onsite childcare is also provided by Red Facilitating access to quality childcare Land Roses, for children aged two months to four A lack of decent and convenient childcare makes it years old. Whilst the center is a 30-40 minute walk challenging for many women to juggle work and fam- 120 C. Hein, Reconciling work and family responsibilities, ily responsibilities. It is often assumed that many women International Labour Organization, 2005, p 6: http://www.ilo. in emerging and developing economies rely on their org/public/libdoc/ilo/2005/105B09_142_engl.pdf 121 International Labour Organization, Beyond maternity, 2012, op extended family for childcare; however, this is not pos- cit, p 18. sible for all workers, particularly given increasing levels of 122 Hein, op cit, p 144. 123 MTN, “Offering workplace crèche facilities in Afghanistan,” website consulted 25 June 2013: www.mtn.com/Sustainability/ pages/CaseStudyFullView.aspx?pID=17 44 Investing in women’s employment: Good for business, good for development from the farm, the company provides employees with iron-ore mine in Brazil by offering a monthly childcare al- bicycles to shorten the journey and help mothers lowance to workers.128 return for breastfeeding breaks. 124 Children are pro- Many companies engage in partnerships with a range of vided with proper nutrition and health care, including different actors, including government agencies, private treatment of HIV and AIDS. The centre is subsidized businesses and NGOs. In India, a not-for-profit organiza- by public–private partnerships, and financed by the tion called Mobile Crèches provides mobile childcare profits of the company. Those who wish to put their services for women construction workers, who constitute children in the center only pay 10 percent of the effec- around 25 percent of unskilled labor on Indian construc- tive care costs.125 tion sites.129 Crèches are set up on construction sites, with On-site childcare facilities can help to support breastfeed- accommodation, electricity and water and last only as long ing. In many countries, there are legislative requirements as construction on the site. The centers cater for babies as to provide this kind of support: more than 90 countries well as children and mothers are encouraged to breastfeed have national laws that provide for breastfeeding breaks regularly. Older children are prepared for admission to in some form, typically providing for two breaks of 30 regular schools. To date, Mobile Crèches has trained 6,000 minutes each day. 126 However, for many women, a lack childcare workers and run 600 day care centers.130 of support for breastfeeding in the workplace makes working incompatible with breastfeeding or, at the very Supporting better health outcomes for least, makes for a difficult transition back to work after women and their children childbirth. As such, some companies support women A number of leading companies have initiatives that to continue breastfeeding when they return to work, aim to improve the health of women and their children. setting aside areas where children may be brought during Often these initiatives are not confined to treating work- breaks and providing extra breaks to allow women to related illnesses and injuries and go well beyond statutory express milk and keep it refrigerated. In addition to provid- compliance. ing a day care center for workers’ children, SafariCom, a Kenyan telecommunications company, also provides a In some cases, companies provide generous medical insur- room for nursing mothers and adjusts work shifts for nurs- ance schemes. In Thailand, Continental’s medical insur- ing mothers for up to seven months. 127 ance is greatly valued by workers, as it also covers their families, while in Kenya, SafariCom’s medical insurance For cost-effective childcare solutions, it may make sense covers women’s pre- and post-natal requirements, includ- for companies to provide subsidies or identify and support ing infant immunizations. Belcorp, the Peruvian cosmet- existing services within the community, rather than build- ics company, has become the first and only direct sales ing and running their own onsite facilities. For instance, company that offers life insurance and hospitalization Anglo American succeeded in attracting a higher than assistance to consultants and their families. The Familia average proportion of women trainees at its Minas Gerais Protegida initiative has already benefited more than 160,000 women in five countries in Latin America.131 124 Hein, op cit, p 319. 128 J.W. Miller, “Wanted: Miners in Brazil for Anglo American,” 125 International Labour Organization, Beyond maternity, 2012, op Wall Street Journal, 19 May 2013: http://online.wsj.com/article/ cit, p 20. SB10001424127887324582004578461171873348926.html 126 Ibid, p 7. 129 Mobile Crèches, “Construction sector,” consulted on 24th 127 UN Global Compact Human Rights and Business Dilemmas June 2013: http://www.mobilecreches.org/article/what-we-do/ Forum, “Gender equality case study - SafariCom,” consulted construction-sector 25 June 2013: http://human-rights.unglobalcompact.org/case_ 130 International Labour Organization, Beyond maternity, 2012, op studies/Gender/gender/creating_a_mother-friendly_workplace. cit. html#.UcnJZNiXTn4 131 Information provided by Belcorp, 2013. Putting it into practice: how leading companies support women’s employment 45 In other cases, companies have established their own over 12-18 months, during which time women workers workplace clinic or hospital, with additional services that are trained and positioned as health educators, encourag- benefit women. For example, Nalt Enterprise’s onsite ing women and health staff to share information about health clinic provides women and their families with free simple health solutions (e.g., nutrition) through existing medical care and medicines, including general check-ups, communication channels.133 This cost-effective model has dental care and ultrasounds during pregnancy. This helps led to widespread health behavior changes. women to save time: rather than taking half a day to travel to and from a clinic in the closest village, they can make a half-hour appointment to see the factory doctor during Key advice: family friendly working their working day. Finlays, Mriya, and Odebrecht also arrangements and childcare provide comprehensive on-site health services for workers. »» Ask—don’t assume: get employee feedback on the alternative arrangements that would be of most value Companies that operate in regions with high rates of HIV/ to them. AIDS have found that programs are particularly helpful »» Introduce new working arrangements on a pilot basis for women, given their disproportionate vulnerability to and evaluate with feedback from individual workers, infection and role as mothers and caregivers. Access to co-workers, customers/clients and line managers to check whether they are working and/or suggest how testing and treatment is particularly important for women the arrangement could work better. during pregnancy to ensure that mothers receive the right »» Make benefits such as leave to look after sick children, care and to help prevent transmission to the baby. Finlays flexible working and subsidized childcare available to offers a comprehensive HIV/AIDS program, which goes men as well as women employees and encourage men well beyond statutory requirements. The program covers to take advantage of them. dispensing of anti-retroviral medicine, treatment of op- »» Ensure that workplace needs can be met during employee absences through training, multi-skilling and portunistic infections (such as tuberculosis) and distribu- job rotation. tion of nutritional supplements, as well as a network »» Communicate to workers to make sure that they are of peer educators to educate workers, address stigma aware of existing benefits and entitlements, including and discrimination and outline options for counseling the right to maternity leave. and testing. Finlays also provides family planning and »» Provide advance notice of overtime and weekend work to allow workers to plan childcare arrangements. reproductive health services, as women’s increased risk of »» Consider the possibility of introducing a crèche or con- HIV infection in Kenya is compounded by an acute unmet tributing to the provision of childcare facilities locally. need for these services. Whilst access to HIV/AIDS testing »» Investigate whether the costs of a new child or health and treatment has clear benefits for men and women care facility could be off-set by government subsidies alike, Finlays’ female employees tend to use the program or whether workers would be willing to bear some of more as the prevalence of HIV amongst Kenyan women the cost. aged 15-49 years is nearly double the rate amongst men »» Consider possibilities for supporting breastfeeding mothers, such as extra breaks, an extra room for (8 percent compared to 4.3 percent). 132 breastfeeding or expressing and facilities for refrigerat- ing expressed milk. Some companies have introduced innovative, low-cost »» Support access to health services for women (and their programs to provide women with better access to health families). information. The HERproject has helped garment facto- »» Consider providing education for women workers on ries in several developing countries to introduce peer-to- health, nutrition and family planning. peer health education programs. The program takes place 132 National Aids Control Council, The Kenya AIDS epidemic: 133 R. Yeager, HERproject: the business returns from women’s Update, 2011, p 6: www.unaids.org/en/dataanalysis/ health programmes, 2011: www.bsr.org/reports/HERproject_ knowyourresponse/countryprogressreports/2012countries/ Health_Enables_Returns_The_Business_Returns_from_Womens_ ce_KE_Narrative_Report.pdf Health_Programs_081511.pdf 46 Investing in women’s employment: Good for business, good for development Providing separate facilities and equipment for men and women Meghmani Organics Ltd, India On a basic level, there should be appropriate infrastruc- IFC invested in a greenfield chemical site in India in 2008, ture and facilities to support women’s participation in all which was part of a group with more than 2000 male aspects of the business. This includes separate chang- employees and no female employees. ing and toilet facilities for women and men and— The project intended to make the new factory a women- where necessary—separate worker accommodation. friendly environment, with the inclusion of female restrooms, locker and shower facilities and flexible work This should be taken into account in the design of all schedules. workplaces. Provision should also be made for suitable By 2011, the 630-strong workforce included 45 women. uniforms for women. Whilst the numbers of women remain relatively small, this initiative still represents a sea-change for the company and Separate facilities are a particularly important consider- a positive example for the sector and local job market. ation where women are being introduced into workplaces Source: IFC SmartLessons, 2011. that were previously men-only. When Indian chemicals company Meghmani set out to design a women-friendly chemical plant, it included women-only restrooms, shower facilities and locker rooms.134 At Anglo American’s Facilities and transport: key advice mines in South Africa, as recently as 10 years ago, it was »» When setting up new sites, make sure that the design technically illegal for women to work in an underground includes separate facilities for men and women mine and so there were no facilities for women. After the »» Accommodate the specific health and safety needs of legislation was changed to lift restrictions on women’s women and men, particularly fitted personal protective employment, Anglo American had to install female toilets equipment (PPE) and requirements for pregnant women and change the design of uniforms to allow uni-sex usage. »» Consider how women get to and from work and whether this is acting as a deterrent to women’s As part of Lonmin’s program to recruit and retain more employment women in its mines in South Africa, the company consid- ered how to make the physical environment more comfort- able for women. In addition to building separate changing safety: these concerns can be an important factor that and toilet facilities, the company also produced two-piece deter or prevent women from applying for work or curtail overalls for women to replace the traditionally worn one- their choices of employment. In many countries, women piece overall. This made it easier for women to use the toi- are less likely than men to have access to a private lets while they were working underground.135 In response vehicle and more dependent on public transport:137 to a suggestion made by women workers, Continental’s often this not only increases commute times, but also automotive parts plant in Thailand introduced new uni- restricts women’s choice of work locations and work- forms specially designed for pregnant women.136 ing hours. In some places, it can be socially difficult for women to travel alone or share crowded spaces with men. Providing access to safe transport Women are also more likely to have to grapple with Transport to and from the workplace can be more difficult safety concerns related to transport: a recent study for women than for men, in terms of both access and suggests that around one third of women in Russia, China and the United Arab Emirates feel unsafe while commut- 134 Jiang, op cit. ing to and from work; in India and Brazil, this figure rises 135 IFC / Lonmin, Women in Mining: A Guide to Integrating Women into the Workforce, 2009, p 21: www.ifc.org/wps/wcm/ connect/b31e4e804879eacfafb9ef51e3a7223f/IFC-LONMIN_ WomenInMining_Manual.pdf?MOD=AJPERES 136 Interview with Continental staff, Thailand, May 2013. 137 Hein, op cit, p 8. Putting it into practice: how leading companies support women’s employment 47 Figure 3: Assessment tool for benchmarking company policies and programs on women’s employment • Principal motivation is compliance; i.e. to meet legal or other obligations and avoid the negative consequences of LEVEL 1: non-compliance. Focus on • Company focus is on equality (treating everyone the same way) rather than diversity (respecting people’s differences and compliance removing barriers so that everyone can participate). • Initiatives generally stop if the external requirements driving the initiatives change or fall away. • Aim to support women workers, recognising the benefits to their reputation and corporate image. LEVEL 2: • Initiatives that go beyond compliance are not anchored in the organisational culture and generally stop if the leadership or Looking beyond public interest driving those initiatives changes or falls away. compliance • Initiatives to support women are isolated: there is no plan to integrate diversity into the wider organisational culture. • Understanding that investing in women can improve organisational efficiency, recruitment, staff retention, productivity LEVEL 3: and market related opportunities. Understanding • Women's employment is evaluated to identify programmes with an overall business benefit. the business case • Initiatives can survive the loss of employee or public interest if the business case driving the initiatives remains valid. • These organisations have a vision to create an environment that is equitable for all. • Support for gender diversity is a core organisational value and workers—male and female—are recognised as an asset, not a cost. LEVEL 4: • Key opinion leaders view gender diversity as an essential element of continued growth. Recognition • Strategies to support women's employment are integrated into all aspects of the organisation. as employer of choice • The commitment to women's employment is not affected by economic trends. • A wide range of people view these companies as “Employers of Choice.” LEVEL 5: • These companies have achieved their internal vision of equity for all and now seek to foster gender diversity beyond their Recognition own boundaries. as leader on • They recognise that diversity contributes to a strong economy, which benefits everyone, including the company. women's employment • Gender diversity is firmly integrated into all aspects of organisational life. Source: Adapted from CSES, 2003. to more than 50 percent.138 Women are often particularly transport to and from the fields, as well as a transport vulnerable at night or on pay day (if paid in cash). subsidy for other workers.139 In Thailand, Continental provides 17 different transport routes to its plant for In this context, investment in safe transport options for workers in the local area and has carried out transport sur- workers can overcome a key physical barrier to women’s veys that provide women with an opportunity to comment employment (and may also benefit men). In its regional on how safe they feel at pick-up and drop-off points.140 operations in Ukraine, Mriya provides workers with 139 Interview with Mriya staff, Kiev, Ukraine, August 2012. 138 Hewlett and Rashid, op cit, pp 52-53. 140 Interview with Continental staff, Thailand, May 2013. 3 P art Plant operator at Sishen Mine, Kumba Iron Ore, South Africa. Photo: Anglo American Understanding and capturing the benefits Why should companies measure the business benefits? Measuring the effectiveness of interventions on women’s employment helps companies to understand the kinds of costs and benefits that are associated with the investment, as well as the links between inputs, processes and outcomes. This kind of understanding—with costs and benefits expressed in monetary terms where possible—makes it easier to provide the enabling conditions for ongoing investment in women. Understanding and capturing the benefits 49 Companies that measure the outcomes, costs and benefits Challenges associated with of interventions to support women workers are better positioned to: measuring the business benefits »» Make women’s employment a business priority At the outset, it is important to recognize that there are In business, metrics and indicators are commonly some important challenges associated with quantifying used to decide and communicate strategic and finan- the costs and benefits of interventions on women’s cial priorities. Companies that are aware of the full employment. An understanding of these challenges— spectrum of business benefits are more likely to en- including the difficulties associated with capturing indirect sure that women’s employment becomes an integral and long-term value—and how to respond to them is part of a company’s business strategy. critical to building a stronger model for measurement. »» Justify the ongoing dedication of scarce Attribution resources Where there is a coherent business rationale, com- A credible analysis of the business benefits depends on plete with credible data, for investing in women, being able to demonstrate some level of cause and effect; this helps to create incentives for ongoing mo- i.e., to attribute or credit at least some proportion of the mentum and support throughout the company, business benefits to the change in women’s employment. particularly at the senior management level, and to However, it’s important to recognize that the precise at- convince any remaining skeptics. This ensures that tribution of benefits will not always be feasible. interventions on women’s employment are sustained Although it may be possible to establish a strong cor- in the long term. relation between the change in women’s employment »» Demonstrate leadership on women’s and certain business benefits, it is unlikely that it will be employment possible to definitively assert cause and effect. This is a Promoting achievements—both internally and core challenge: many companies have made consider- externally—is easier for companies when there is able progress in improving their workforce metrics (e.g., concrete evidence of progress. gender-disaggregated workforce numbers), but have difficulty in showing that a change in these metrics have »» Learn from experience had an influence on core business indicators. However, Companies are better able to pinpoint concrete without this information, there is a risk that initiatives changes and identify how changes related to on women’s employment are perceived as separate from women’s employment translate into tangible a company’s core business objectives or unrelated to and less tangible benefits. As a result, investments its overall value. The challenge arises because business that have worked can be systematized or rolled out performance depends on a range of diverse factors and it across the company more broadly. This process also is difficult to isolate the impact of different variables makes it easier to identify whether adjustments need over time. This is particularly so considering the impact of to be made in order to strengthen the business ben- the broader economic environment such as changes in the efits or outcomes for women and makes it more likely macro-economic environment, a recession or fluctuation that interventions will be sustainable. in the price of raw materials, new technological processes or the impact of new capital investments. 50 Investing in women’s employment: Good for business, good for development Long-term benefits (e.g., enhanced reputation) are Avoiding divisive measurement likely to be the hardest to measure and explicitly link A number of managers interviewed for case studies to women’s employment initiatives. Even for short-term strongly advised against measures set up to compare and medium-term benefits (e.g., access to new markets; men’s and women’s performance, believing that this reduced costs), there are likely to be attribution difficulties. would be potentially counter-productive as well as Positive changes in “top-level” performance (such as prof- potentially misleading. If women were found to be more itability, cash generation, business value) will be difficult to productive, it could create unrealistic expectations about link directly to changes in women’s employment, as there women’s future performance or generate resentment are so many other contributing factors. amongst men. If women were found to be less produc- tive, it could lead male workers and managers to judge Ideally the impact of an initiative related to women’s from the case of a few individuals to all women, ignor- employment should be evaluated and quantified with “all ing factors other than sex (such as individual ability) that things being equal”; of course, in the day-to-day world of influenced workers’ productivity, and undermining future business it is often not possible to hold other things equal. recruitment efforts. However, there are recognized methods for overcoming these problems, which can be incorporated into the over- One way to get around this issue could be to create all approach to measuring and assessing change. These measures that compare outcomes for more gender diverse include: teams with those of less diverse teams. • Personal testimony: Conducting interviews with managers and workers to provide qualitative evidence Resourcing the gender monitoring to understand and support findings (e.g., x percent of system managers say that the initiative has improved recruit- Monitoring systems need not be resource-intensive and ment and retention rates); can be based on existing systems. However, it is important • Comparing “with” and “without”: Comparing the to recognize that some level of extra effort and resources outcomes for similar business units where women’s will be needed to set up a monitoring system that is employment conditions have changed and those relevant and credible (and does not rely on an ad hoc where they haven’t (the “control”). If the external approach). For instance, companies may ask their human variables for both units are the same, this could pro- resource department to monitor data on women’s em- vide assistance in pinpointing what changes can be ployment: this task will be an additional responsibility for attributed to the change in women’s employment. the department, which will involve time spent designing the system, liaising with other colleagues and analyzing • Attributing a proportion: Estimating what propor- the result. It is also important to ensure that there is ac- tion (e.g., 25 percent or 50 percent) of certain busi- countability for this task and someone with the appropri- ness outcomes might be attributed to the initiative or ate level of seniority and understanding is identified to change rather than claiming 100 percent of benefits. oversee the system. Resource considerations need not be a barrier, but they do need to be factored in. Where a comprehensive evaluation is not possible, a well-documented pilot program which highlights both quantitative and qualitative outcomes may be an effective alternative for capturing and communicating benefits. Understanding and capturing the benefits 51 A process for measuring the B: Establish a baseline It is helpful to establish a baseline for business and em- benefits ployment metrics (a point that can be used for compari- This section outlines a three stage process for measuring son) in order to measure progress and have a clear sense the business benefits of investing in women’s employ- of what has been achieved. (This is particularly necessary ment. This framework can help to understand: if a return on investment analysis is going to be carried out—see below.) • The business case (“Why should we do this? What will happen if we take this course of action?”); or In the case of an initiative or change with respect to • The business benefits (“What were the outcomes women’s employment, there are two possibilities for of this initiative and what were the benefits for the establishing baselines: company and women workers?”). • “Before and after”: Comparing the difference in company performance between points in time (e.g., Stage one: Collecting the data changes over a 3 year period141); or A: Identify the change or initiative • “With or without”: Comparing the difference in To better pinpoint costs and benefits, the analysis should performance between similar business units that have be focused on a particular change or initiative (espe- implemented the initiative and those that have not. cially where a cost-benefit analysis is being undertaken), This will still involve a “before and after” analysis (with such as a new recruitment and training effort or the intro- endline / baseline data), but with the added value of duction of childcare facilities. The more closely the analysis having a “control” measure; i.e., a further point of is targeted, the easier it is likely to be to identify business comparison. benefits and attribute them to the intervention. Figure 4: Overview of process STAGE 1: STAGE 2: STAGE 3: Collect the data Analyse the data Communicate the business case • Identify the change / initiative on • Bring the relevant information together • Document the business case women's employment • Analyse employee data metrics • Disseminate the information inside • Establish a baseline • Analyse business metrics and monetise (and outside) the organisation • Identify key stakeholders outcomes where possible • Decide which employment metrics • Make a list of the less tangible business to use benefits • Decide which business metrics to use • Compare the costs and benefits • Identify and allocate resources needed • Take time to learn from the outcomes for monitoring and data collection • Get feedback from key stakeholders on • Track the results your interpretation of the data 141 The appropriate time period for observing change will depend on the initiative undertaken by the company. 52 Investing in women’s employment: Good for business, good for development C: Identify key stakeholders the new worker. In this situation it may be desirable to An important tactic is to consult with HR, finance and invest in a specific evaluation exercise so that a more com- other departments who have access to relevant data plete base line on the costs of filling vacancies is available. and ideas on how to measure costs and benefits, as well as knowledge of what sort of data matches the company’s E: Decide which business metrics to use main business drivers. Consulting on data collection can The quantification of costs and benefits to enable a full also be an opportunity to increase internal awareness of cost-benefit analysis is difficult. However, the better the the benefits of investing in women’s employment and cre- quality of data, the more accurate the overall analysis ate wider buy-in inside the company. of the business case will be. Knowing the company’s key business drivers will help to determine what is of D:  Decide which employment metrics to use most importance to the company and to measure what One of the first steps in evaluating the impact of an initia- matters. The more closely connected the evidence on tive is to ensure that all HR data are available on a improvements is to core business objectives, the more disaggregated basis for men and women, particularly: likely it is that a persuasive business case can be made for investing—and continuing to invest—in women. • The number of women and men in the workforce as a whole; Capturing data on costs and benefits over time will enable a return on investment calculation. Both benefits and • The number of women and men in different positions; costs associated with an increase in women’s employment • The number of women and men at different levels of or a new program on working conditions will vary signifi- the organization; cantly by sector, region and individual company. It will also depend on the type of strategy on gender diversity • The number of voluntary departures from the organi- (if there is an explicit strategy) that has been pursued. No zation (men and women) (employee retention rates); individual company can expect to reap all of the benefits • Days off per month of men and women (attendance or all of the costs. Some examples of common areas of rates). cost and benefit are listed in the tables below. Other employee metrics may be available (or could be Indicators for measuring the benefits developed) from employee satisfaction surveys or exit interviews, which can provide evidence of changes in Benefits from investing in women’s employment may arise workplace culture and attitudes. in a number of areas. Some of these are easier to capture, and are likely to be part of performance metrics collected While it is likely that some data are collected on a routine by companies already. These include for example, accident basis (even if not necessarily on a gender-disaggregated rates, machine downtime, number of days absent, error/ basis), other metrics, such as a manager’s time spent in re- reject rates and other related measures of output quality cruitment or a co-worker’s time in inducing a new worker, and quantity. Most companies will also have standard cor- are unlikely to be routinely measured but nevertheless may porate performance measures such as sales revenues (see present considerable costs. For example, when measuring Table I below for examples of data points and Appendix the impact of having reduced staff turnover, the base line for a fuller list of potential indicators). would need to include an assessment of the full costs of having a position vacant, recruiting and training someone Yet, some of the more strategic benefits can be difficult to new, and dealing with the initially lower productivity of quantify or may only materialize in the longer-term (“in- tangible benefits”), even if it is recognized that they have Understanding and capturing the benefits 53 an important impact on productivity and a company’s mar- Table 1: Examples of data for measurement ket value. These less tangible measures are, for example, Examples of data Examples of data related to a company’s reputation with key stakeholders or to indicate benefits to indicate costs its perception as an employer of choice. It can also be tricky Change in company Costs associated with maternity revenue or profits over time leave or new working to establish cause and effect relationships for less tangible arrangements for women benefits. Yet, even if they can’t be precisely measured, Change in production The cost of any new facilities built there may still be ways to track such benefits through for women qualitative techniques—such as interviews, a review Change in error margins Investment in childcare or subsidies of press coverage or surveys—and they should always be Change in the number of Staff time spent developing new accidents in the workplace policies or procedures documented and presented as part of the business case. Movement in sales figures Costs associated with job in existing or new markets advertisements targeted at Indicators for measuring the costs recruiting women into male- dominated sectors (e.g., mining, There are a range of cash costs that are potentially at- chemicals) tached to investing in initiatives to support women’s em- Changes in absenteeism Costs associated with skills and employee turnover development programmes for ployment. Some may be one-off and short-term (e.g., women investment in new facilities), while others are likely to be Time to market for new Costs associated with training product programmes for supervisors recurring and long-term (e.g., provision of working conditions and benefits to attract and retain women) (see Table I below for examples of data points and Appendix Identify and allocate resources needed F:  for a fuller list of potential indicators). for data collection Some costs associated with hiring more women may be Consideration should be given to the amount of staff lower than expected, including those associated with ma- time that it will take to collect and evaluate the ternity leave. On Odebrecht’s Santo Antonio construction data. The data collection and evaluation process will be site, only 5 percent of women workers have taken mater- facilitated if the process is clearly mapped from the outset nity leave since the beginning of the project, representing and relevant staff are aware of their responsibilities and a small proportion of overall wage costs. the milestones for data collection. Some of the data will already be in the company system and may be extracted While some costs may be optional and specifically related relatively easily. It may be worthwhile to consider wheth- to a new initiative, others, such as outreach in recruitment er new metrics could be introduced to help track the or sexual harassment training, are likely to be increasingly performance of the initiative (e.g., gender-disaggregated part of statutory obligations. Yet capturing their potential data) or whether existing data sources will be sufficient. benefits beyond compliance, in terms of a more produc- tive working environment, may nevertheless be relevant in Where employee surveys, interviews or focus groups addressing potential resistance to such initiatives. are part of the data collection process, time should be allocated for staff participation. If the company already A key challenge is to capture indirect (non-cash or op- has an employee satisfaction survey, it may be worth portunity) costs, which can be substantial. Opportunity considering whether new questions could be introduced costs are indirect costs that are most likely to be incurred that would better reflect changes in the workplace, such with respect to the time spent by existing staff developing as improvements in team relations or work-life balance. or administering the new program or policies (when their If the initiative or change is a part of the company’s com- time could have been spent on other activities. munity outreach strategy, the company may wish to track 54 Investing in women’s employment: Good for business, good for development changes in community attitudes through quick surveys. basic characteristics of women’s employment in the or- Staff time should also be allocated for these activities. ganization. Where there has been a specific initiative, this step includes identifying whether any goals and targets G: Track the results on women’s employment were met. These results can also This stage of the process involves collecting the data. be used in public reporting, such as the company’s annual This means: report. • Making sure that the relevant data is collected for the Analyze business metrics (and monetize B:  period for analysis (especially data from the beginning the data where possible) and end of the period); Often the benefits of improvements in human resource • Conducting interviews and/or focus groups with key management are not presented in quantifiable or mon- personnel (senior managers, line managers and work- etary terms, as many are considered to be difficult to ers); and capture because they are either less tangible or materialize over a long period of time. Nevertheless, nearly all orga- • Recording the outcomes. nizations have at least some performance indicators that can be converted into monetary values and help Stage two: Analyzing the data to build a picture of the business benefits of a change, Comparing costs and benefits is one way to consider policy or program. The monetary value of a change in the overall benefits of investing in women’s employment. policy or practice with respect to women’s employment However, it is important to note that an accurate cost- will relate to either: benefit analysis is dependent on high quality data. This • Profit gains through improved sales; or includes: • Profit gains (savings) through improved productivity, • Availability of data from before and after the introduc- quality, efficiency and cycle times. tion of policy measures; Each company will have its own figures to determine • Possibility of isolating the effect of the selected policies costs and savings, dependent on local and sectoral fac- from other factors; and tors. As such, this section is not intended to be exhaustive, • Possibility of putting a credible monetary value on the but rather a starting point to give some ideas of basic costs and benefits. calculations that could allow companies to make a return on investment calculation on the basis of data that is read- Where there is sufficient data, companies can carry out a ily available. It is important to note that some benefits are return on investment analysis, for example, by collecting linked and, as such, they should not be double-counted. data on some of the costs and benefits in the table below. (For a more comprehensive overview of costs and benefits, The information used to make management decisions is see Annex A.) never perfect and often contains educated guesses. It is perfectly acceptable to use estimates and assumptions A: Analyze change in employee metrics in calculations where they cannot be avoided, but these This step involves identifying the concrete changes on should be carefully considered and documented so key employment metrics, including changes to the com- that the reasoning is credible and can be explained to any- position of the workforce, promotion rates or employee one who questions the methodology and ensuing results. attitudes. These are not the business benefits, but rather Estimates may relate to, for example, the cost of replacing Understanding and capturing the benefits 55 a worker (retention) or the cost of absenteeism. In reality, II. Monetizing improvements in staff turnover these costs are likely to vary by the skills levels of work- Doing more to recruit women workers or improve existing ers: this variability may be built into the average cost. It conditions often requires cultural change within a com- makes sense to consult directly with internal departments, pany, which can then lead to higher employee satisfaction including senior managers, line managers and supervisors, and lower staff turnover. Any reductions in turnover can to get the best estimate for some indicators, such as how represent substantial cost savings for companies in relation much a worker’s absence costs. to recruitment and training costs. I. Monetizing improvements in productivity Finding a measure In order to monetize improvements in turnover, it is necessary Improvements in productivity can generally be readily to put a monetary figure on the average cost of replacing a monetized and are therefore likely to be highly per- worker. Some costs will be difficult to quantify, such as loss of organizational knowledge (e.g., of customers or processes). suasive for the business case. For example, these may Consideration should be given to: derive from increased employee motivation, better team • Recruitment costs, including • Costs associated with lower dynamics or improved skills retention. However, caution advertising for new vacancies productivity of new employee and cost of staff time to carry for certain period of time should be adopted with respect to attribution: it may out recruitment (reviewing • Cost of paying contractor / be difficult to directly link improvements in productiv- CVs, interviews, deliberation agency staff during absence etc) ity with women’s employment, especially where only a • Customer dissatisfaction • Period of lower productivity associated with disruptions small number of women have been employed. Also, there prior to employee’s departure in service may be short-time productivity losses if there have been • Time taken by supervisor and • Training costs for new worker colleagues to instruct new significant changes in workplace dynamics. Nevertheless, employee productivity calculations may be just as helpful to show • Lost output whilst post is unfilled that hiring more women or improving their conditions has How to calculate not negatively affected productivity. Example savings Savings due to In Company A, 100 workers Finding a measure reduced turnover = left the company in the baseline It is difficult to provide a single approach to measurement, as most year. At the end-line year, this Reduction in number of companies have their own measures for productivity, which will number dropped to 20. employee departures over a vary by sector. Depending on the sector and type of company, these period of time If the cost of replacing a worker may include: in Company A is $1000, this x • Output per worker • Product quality levels means that reduced turnover The cost of replacing a worker has resulted in annual cost • Amount of company revenue • Error margins savings of at least $80,000 or company profit per full- • Rate of accidents (assuming that the workforce time employee (FTE)* • Time to market cycle (time size has remained equal). • Amount of customer taken for the development of spending 80 x $1000 = $80,000 new products or services) • Production figures • Number of labor-days lost to • Sales figures for individual industrial action / workplace employees disputes Some companies may rely on this as the principle measure of whether a change or * initiative has been cost-effective. 56 Investing in women’s employment: Good for business, good for development Monetizing benefits associated with addressing III.  Monetizing benefits associated with improved IV.  labor shortages compliance The benefits of addressing labor shortages (sectoral or re- Compliance can be a very important business driver for gional) can manifest over the short-term or medium-term. introducing new policies or initiatives on gender diversity. The most direct calculation of the benefit to be drawn It may relate to: from addressing skills shortages is to evaluate changes in • Requirements set out in legislation (e.g., health and the period of time that vacancies remain unfilled (set out safety; anti-discrimination or equal opportunity); or below). • Social performance indicators required by investors or Certain contexts may require additional approaches: in a customers. remote workplace, for instance, it may be worthwhile to evaluate the cost savings of developing local skills com- As well as enhancing investment opportunities and higher- pared to the costs of re-locating skilled labor. value market access, improving compliance can result in savings for companies as a result of reduced litigation and Finding a measure legal costs and/or improvements in productivity as a result This is a two step process that calculates reduced costs associated of lower injury (see below). with filling vacancies quicker. • First, determine the daily cost of a vacancy. Finding a measure – the example • Second, determine the improvement over time with respect to of health and safety the number of days that positions are unfilled. A number of companies have reported that increasing the number These costs are likely to vary, depending on the skill level of the of women in their workforce has led to improved compliance workers. This formula may be used to calculate the vacancy cost for with health and safety requirements. The monetary benefits of one position, a group, a division or the entire organization. Some improved compliance in this area are likely to relate primarily to caution should be used in applying this calculation, as it makes a reduced number of staff days off due to illness or injury and certain assumptions about how a company responds to unfilled subsequent savings on workplace insurance. There are also likely to vacancies (e.g., by paying other workers—agency or employee— be improvements in productivity, given that workers are less likely to fill the position). Also, some companies may have identified to be nursing an injury at work (however, this is more difficult to productivity costs associated with vacancies that could be factored attribute directly to the change or intervention). Double-counting in. should be avoided: this calculation should not be made in addition How to do the sums Example to separate calculations on absenteeism or productivity, but rather could be used as the main calculation where health and safety is First step: First step: thought to be the main benefit. Daily vacancy cost = In Company B, it costs $100 How to calculate per day for an agency worker Costs of temporary workers, savings as a result to fill a position for which a Example independent contractors, other of improved health permanent employee would outsourcing and/or overtime and safety be paid $50. As such, the daily by other workers to cover the vacancy cost is $50. Annual savings = Company C is a construction position company where the average – $100 - $50 = $50 Employee daily salary x (previous daily salary is $50. number of days off per year – Wages and benefits not paid to Second step: current number of days off per In the baseline year, the total vacant position(s) year) number of days taken off by In the baseline year, there were employees was 867. In the Second step: 10 positions in Company B + endline year, the total number that were vacant for a total of Annual cost saving associated Savings on insurance premiums was 770. 250 days altogether. In the end with addressing labor shortage and/or medical care (where year, there were 8 positions As a result of decreased = relevant) vacant for a total of 120 days accidents in the workplace, (Number of days that positions altogether. + the company made savings were vacant in baseline year on medical care and insurance This represented an Productivity improvements – premiums of $400 between the improvement of 70 days baseline and endline year. Number of days that positions between the baseline year and were vacant in the end year) the end year, which provided $50 x (867-770) + 400 = $5250 the company with a saving of x $6500. Daily vacancy cost (250-120) x $50 = $6500 Understanding and capturing the benefits 57 V. Monetizing reductions in absenteeism Make sure the “intangible” benefits are C:  Unplanned absenteeism can reduce workplace productiv- fully reflected ity and generate additional costs. Improvements in the Where it is possible to carry out a ROI analysis, this can working environment can help to reduce absenteeism and provide a powerful “hook” to communicate the business associated costs and potentially have a positive impact case. However, a carefully considered list of less tangible on productivity. Nevertheless, some caution should be benefits can also be very persuasive where data collec- adopted in using changes in absenteeism as a measure tion has not enabled a ROI analysis. The importance of of benefits, as there are a number of external factors the long-term, less tangible “value-drivers” of an that can influence employee attendance, such as sectoral organization (see below) should not be understated, as strikes, natural disasters or outbreaks of illness. research suggests that companies often consider these as the most important business benefits, even though Finding a measure they are often very difficult to quantify and attribute to In order to monetize improvements in absenteeism, it is necessary changes in women’s employment. to estimate the average daily cost of a worker’s absence. Consideration should be given to: • Average cost of lost productivity by worker over one day; “Access to A company’s ability to innovate and respond talent”: to change in the business environment • Cost of salary / leave for one day (where workers are entitled to Improving the depends on having high quality workforce paid leave); and quality of at all levels of the organization. This is a • The costs of transportation or meals (that might be borne even if human capital particularly pressing concern for companies the worker does not attend). within the where there are regional or sectoral labor organization shortages. How to calculate Example savings Introducing policies that are more attractive to prospective employees (both women Savings due to reduced Factory D employs 2500 and men) can help companies to become absenteeism = workers. The factory estimates “employers of choice” and ensure their long- that the daily cost of a worker’s Reduction in number of days of term access to talent. absence is $28. absence over a period of time Corporate This includes building a reputation with Between the baseline year x reputation investors, government and the community and endline year, the number to show that the company is sensitive to Daily cost of a worker’s absence of days of absenteeism was concerns about women’s employment and reduced by 1,200. (it may be useful to convert this working conditions. This strengthens the into a monthly or annual figure) This represented an annual company’s “license to operate” and its status saving for the Factory of as “employer of choice”. It can also help $33,600. companies to gain access to markets where investors and buyers are influenced by social 1,200 x $28 = $33,600 objectives. Strengthening Many companies that introduce new the cultural initiatives on women’s employment do so and ethical because they believe that it is the right thing values of the to do. By acting on their values, companies organization can strengthen their sense of mission and integrity, which can have a positive impact both internally and externally. This can also have a significant positive impact on the general working environment, by improving worker satisfaction and enhancing relations between managers and workers. 58 Investing in women’s employment: Good for business, good for development D: Compare the costs and benefits F: Take time to learn from the outcomes A ROI calculation involves comparing the net benefits The evaluation of the initiative should also identify any un- of an initiative against its costs, expressed as a ratio expected outcomes (additional costs or benefits), analyze or percentage. This means putting together all of the the reasons for these and consider whether the initiative monetized benefits alongside the costs (as measured in can be adjusted in the next phase to optimize or mitigate previous steps of the process): these outcomes. In this respect, interviewing managers and employees can be an important tool for understanding (Benefits – Costs) x 100 = Return on investment % the reasons why expected benefits did or did not materi- Costs alize and why unexpected benefits or obstacles arose. Any figure higher than zero indicates that there has been When analyzing the results, it may be worth thinking a return on investment. For example, a 50 percent return about the extent to which benefits are: is equivalent to an extra benefit of 50 cents for every dol- lar spent on the initiative. • Intrinsic; i.e., accrue from women bringing a particu- lar experience or point of view the workplace; or It is important to remember that, while it is helpful to • Universal; i.e., providing more and better jobs for show a positive return on investment, in some cases a women results in a better working environment and ROI analysis may also be useful for showing that the positive impact for all workers. change has been cost-neutral. In this situation, the change in women’s employment still represents a socially beneficial action without cost to the company that pro- Stage three: Communicating the vides an opportunity to improve the operational perfor- business rationale mance and strategic assets of a company over time. Once all of the information regarding the business ratio- nale has been assembled, it can be collated and used to E: Consult with key stakeholders communicate to key decision-makers and stakeholders. Effective data collection and analysis can help to de- termine broadly whether the company is meeting its A: Document the analysis objectives on women’s employment and whether any It is likely that the overall business rationale for investing adjustments to HR policy and programs in this area are in women’s employment will rely on a blend of qualita- required. In addition to looking at hard data on business tive and quantitative data. Once the data analysis has benefits, the evaluation process should draw on feedback been carried out, all of this information can be brought from those who have been directly affected by the together and the business case can be documented. change or initiative, i.e., managers and employees. The Documentary evidence may include: success of any changes to women’s employment is closely • Data to show the extent to which the initiative met tied to these groups, who will provide a direct source of its objectives (where the analysis relates to a past information about what has worked well, why an initiative intervention) (e.g., did the company employ as many worked (or didn’t), what the obstacles were and how they women as it wanted to?); were overcome and what could be improved. It is impor- tant to interview both men and women to capture the • Data on the list of business costs and benefits, includ- full spectrum of workers’ perceptions and experiences. ing less tangible benefits; Understanding and capturing the benefits 59 • Estimates, assumptions and limitations relating to data • Link the benefits directly to the company’s competitive collection; strategy and operational goals; • The ROI analysis; • Consider whether it is relevant to benchmark against competitors in the sector; • Results of worker satisfaction surveys and/or interviews; • Consider whether there are any graphics you can include (e.g., graphs, process diagrams); • Testimonials from senior management; and • Explain what the next steps are. • Case studies of particular business units or workers (female and male) who have benefited (“good news The picture doesn’t have to be 100 percent positive. stories”). Sometimes providing both good and bad news can help to provide credibility and build support where it is needed. B: Disseminate the business rationale Communicating the business rationale can help to change Companies could consider internal communication attitudes and build support for women’s employment, so it targets, including senior management, managers, work- is worth companies putting in place a strategy for dissemi- ers and HR staff, and how to meet these. There are likely nating the information on the business benefits of women’s to be different ways to reach these audiences, depending employment within the organization. The strategy should on the company structure, such as management or team include developing tailored communications for different meetings or internal newsletters and bulletins. audiences and the following points should be kept in mind: Companies could also consider possibilities for external • Keep the information clear and concise; communication, such as press releases, communications • Clearly explain the nature of the initiative / change; with investors, articles for industry or CSR publications or speaking at industry conferences or local community events. • Create a short list of the main business benefits, includ- ing the ROI (where possible) and less tangible benefits; A Examples of possible A n n e x indicators to measure costs and benefits Benefits: Examples of possible indicators Type of benefit Possible indicators Sectors of relevance Improvements in productivity* Number of dollars of revenue or amount of profit per full-time All employee (FTE) Output per worker All Number of accidents / injuries Construction, manufacturing, agribusiness Number of days off All Volume of work performed in a given period of time All, esp. construction, manufacturing, agribusiness Error rates All, esp. manufacturing Rate of innovation/to market All, esp. technology, R&D Sales revenue figures Retail, property & tourism Company-specific measures* All Improved market performance Revenue figures All Sales / performance in existing markets Service industries Sales / performance in new markets Service industries Improved staff satisfaction / team Staff retention—cost savings resulting from reduction in number of All environment outgoing staff Number of employee grievances All Number of disputes / conflicts All This indicator can also link to productivity (see above) All Better access to talent / addressing Number of applicants for vacant positions All, particularly firms subject labor shortages to sectoral or regional labor Average time to fill vacancies shortages Time spent by managers to recruit/select/induct new staff Change in the profile of existing employee skills compared to skills needed by the organization Improved compliance with Costs associated with litigation, fines, sanctions and addressing Construction, agribusiness, legislation (health & safety, labor, employee grievances mining anti-discrimination) Number of accidents / injuries Improved corporate reputation Outcomes of interviews with key stakeholders; e.g., customers / All clients, managers, workers, community, government Outcomes of customer satisfaction surveys Service industries Amount of favorable press coverage All Number of public, industry or community awards given to the All company Improved relations with community Number of complaints / disputes Construction; mining; property and tourism Outcomes of interviews with community leaders Construction; mining; property and tourism Annex A: Examples of possible indicators to measure costs and benefits 61 Type of benefit Possible indicators Sectors of relevance Improved innovation Outcomes of interviews with managers All Alignment between workforce composition and customer base Service industries Better alignment with CSR agenda Alignment of gender composition of workforce with corporate values All and company’s cultural values Ability to report to customers / investors on social requirements All * Note that all companies are likely to have their own productivity measures. This table includes some common measures. Costs: Examples of possible indicators Area of cost Costs Sectors of relevance Development of new strategy, Staff time spent in developing and/or amending policies, associated All policies and procedures information and communication materials, employment contracts and training modules Staff time spent in developing and/or adjusting record-keeping All systems regarding recruitment and promotion practices, maternity leave, childcare leave and flexible working arrangements Boosting HRM capacity to develop Cost of external training for existing HRM team on new policies All and implement new strategy, Short-term engagement of external experts to provide advice All policies and procedures Implementation of new strategy, Staff time spent communicating with staff and management about All policies and procedures new policies (newsletter, websites etc) Staff time spent on information sessions and events All Staff time spent training staff and management on new policies All Staff time spent implementing new leave systems and flexible working All systems Staff time spent providing HR support to new women workers Construction, mining, chemicals New facilities, equipment and Construction of new facilities or physical adaptation of work Construction, mining transport for women environment Purchase of new equipment (including health & safety) suitable for Construction, mining, women agribusiness, chemicals Provision of safe transport for women to and from workplace Construction, mining, (especially if workplace is remote) agribusiness Provision of parental leave Cost of providing leave (salary and average time taken) and other All (maternity and paternity), child benefits care leave and other benefits Employer investment in childcare facilities or subsidies All Costs associated with recruiting Costs associated with job advertisements All non-traditional sectors* women in non-traditional sectors Community outreach to persuade women to apply for positions All non-traditional sectors Cost of external training programs All non-traditional sectors Staff time spent providing additional training to women workers All non-traditional sectors Investments in working conditions External training on e.g., workers’ health, communication between All management and workers Wage increases (e.g., to address wage gaps) All, but particularly non- traditional sectors Adjustments to work scheduling Short-term loss of productivity associated with introducing new staff All related to restrictions on women’s and systems hours or greater working time Staff time spent in developing and/or amending policies, associated flexibility information and communication materials, employment contracts and training modules Monitoring systems Staff time spent in devising methodology for monitoring impacts, All costs and benefits Staff time spent in gathering and analyzing data All *Namely, those sectors in which women have been traditionally under-represented in the workforce. B A n n e x Company case studies Anglo American Copper, Chile—mining Background Anglo American is one of the world‘s largest diversified mining companies, with a portfolio of high-quality mining assets and natural resources spanning copper, platinum, iron ore, coal, nickel and diamonds. In 2011, the compa- ny’s operating profit was US$11.1 billion.142 It has a global workforce of 150,000 employees and contractors, spread across its operations in Africa, Europe, South and North America, Australia and Asia. Globally, women account for 15 percent of its direct employees and 22 percent of its managers. Anglo American is one of the first global min- ing operations to appoint a female Chief Executive Officer, Female employee, El Soldado mine, Chile. Photo: Anglo American Cynthia Carroll (2006-2013). and Michiquillay) and the Pebble project in Alaska.144 Anglo American is one of the largest mining companies Across its operations in Chile,145 Anglo American directly in the copper mining sector in Chile, an industry which employs 4309 workers as of November 2012 (12 percent is critical to the economy and represents 58 percent of of whom are female).146 Anglo American Copper has the country’s total exports.143 Moreover, there is consider- had a formal gender diversity program, including internal able further growth potential for copper mining in Chile targets for women’s employment, since 2009. as a result of rising prices and demand. Anglo American Copper has invested $6.5 billion in Chile since 1980 Historically, women have had a very weak presence in the and produces c. 650,000 tons of copper per year. It fully mining industry in Chile. Women represent only 6 percent owns or has interests in six copper mining operations of all Chilean mining workers;147 this figure drops to 2.3 (El Soldado, Collahuasi, Los Bronces, Mantos Blancos, percent if non-operational positions (e.g., administration, Mantoverde and Collahuasi), a copper smelter (Chagres), two projects in Peru (a controlling interest in Quellaveco 144 Anglo American Copper, “Where we operate,” consulted 22 January 2013: http://www.angloamerican.com/business/copper/ operate 145 Anglo American also has interests in two projects in Peru (a 142 Anglo American, “At a Glance,” consulted 6 December 2012: controlling interest in Quellaveco and Michiquillay) and a 50% http://www.angloamerican.com/about/ataglance. interest in the Pebble project in Alaska. Anglo American Copper, 143 Fundación Chile, Fuerza Laboral en la Gran Minería Chilena: “Where we operate,” consulted 22 January 2013: http://www. Diagnóstico y recomendaciones, 2011-2010, 2011, p 12: http:// angloamerican.com/business/copper/operate innovum.cl/wp-content/uploads/2012/03/Fuerza-Laboral_ 146 Figures provided by Anglo American Copper, December 2012. Diagnostico_desafios12_ene.pdf 147 Fundación Chile, op cit, p 32. Annex B: Company case studies 63 finance) are taken out of the equation.148 Compounding apprenticeship program: in 2012, 23 out of 38 appren- popular perceptions that mining is “men’s work,” there tices were female. have been some important structural and cultural reasons The active recruitment of women into new jobs has been for the absence of women in mining operations: until key to the improved gender balance in the El Soldado 1996, legislation prohibited women from working in workforce. Given very low staff turnover (only 2 percent underground mines whilst popular superstition held that in 2012) increasing women’s share of any new jobs is it was bad luck for mining operations if women entered the most realistic option for improving gender diversity. underground mines. Whilst these factors may not have From 2006 to 2012, the number of direct employees at applied to open-pit mines such as those operated by El Soldado rose by 75 percent (from 481 to 842 work- Anglo American, they helped to reinforce gender stereo- ers). This surge in labor requirements could not be met by types about mining. relying on the existing skills profile of the local community, but rather required a proactive approach to training new- comers from scratch in areas of operational need. An area El Soldado: training for women of particularly high labor demand was the operation of truck drivers heavy trucks (240 tonne). From early on, the mine identi- fied this as an opportunity to recruit more women, both Anglo American’s El Soldado mine is located 132 kilome- to improve gender diversity at the mine and to improve its ters north of Santiago and consists of an open-cut mine, outreach to women in the local community. crushing plants and oxide and sulphide ore treatment facilities. The site has been an operational mine for around El Soldado’s first truck driving training program took place 200 years (run by Anglo American since 2002). Across all in 2007. Entry requirements were minimal: applicants of its mines, Anglo American prioritizes local employment needed to be 18 years old, with a high school education as a means of ensuring that its operations result in socio- and a regular driver’s license. Successful applicants were economic benefits for associated communities. In line with paid to participate in two months of classroom instruc- this philosophy, around 80 percent of El Soldado’s workers tion and four months of on-the-job training. Of the 322 are from the local province of Quillota, which has a popu- applicants, 72 were women and, of these, three were lation of approximately 88,000.149 In recent years, El Soldado has made considerable progress on increasing the gender diversity of its workforce. In  omen’s employment at El Soldado, Figure 5: W 2006, women represented 2 percent of El Soldado’s work- 2006–2016 Women’s employment at El Soldado, force (primarily in administration); now, they represent 6 2006-2016 15% percent of the general workforce, including 10 percent of truck drivers (compared to the industry average of 2 percent for mobile plant operators).150 In addition to get- ting more women into entry-level positions in operations, 10% 9% 9% the mine has also succeeded in boosting the proportion 8% of women supervisors from 4 to 15 percent. Similarly, the 6% mine is attracting high numbers of young women into its 5% 4% 4% 3% 3% 2% 2% 2% 148 Ibid, p 32. 2006 2007 2008 2009 2010 2011 2012 149 Figures provided by Anglo American, 2012. 150 This category also includes operators of bulldozers, excavators, Women employees Women supervisors graders and other mobile plant. Fundación Chile, op cit, p 32. 64 Investing in women’s employment: Good for business, good for development selected for the training program and subsequently hired private health insurance. Women acknowledged that the (representing 16 percent of trainees and 27 percent of work was physically demanding and the hours long, but new hires). expressed great satisfaction with their work and said that they felt empowered by learning new skills and break- Whilst the 2007 program only resulted in the recruitment ing into a male-dominated industry. One said, “When of a small handful of women, it proved to be an important I learned to drive a 240 tonne truck, it was such a boost beginning for both the mine and the local community. In to my self-esteem: I felt like I could do anything, even fly its training program launched in 2009, the mine employed a plane!” new tactics to attract women applicants. For the first time, job advertisements in the local community explicitly El Soldado plans to build on the success of its training called for male and female applicants (operadores and initiatives and has launched a further training program for operadoras). This time 200 women applied (out of a total women in 2013. In 2014, the operation hopes to attract 735 applicants), 15 of whom were trained and then hired women trainees to work in processing, maintenance and (representing 13 percent of trainees and 15 percent of plant operation, where there is currently a much lower new hires). According to the mine’s human resources proportion of women (2 percent). department, the three women who were employed during the 2007 intake helped to spread the word amongst local women about the benefits of working for Anglo American What have the business benefits and dispel preconceived ideas amongst both men and women about women’s ability to work on the site. been? Addressing labor shortages Working for Anglo American represents a very real increase in living standards for women in the local El Soldado has increased its workforce significantly over community, offering a formal employment contract and the past six years. In targeting women in its training a generous salary. Women at the mine estimate that they program for local workers, El Soldado was able to access earn at least three times more than they would in other a previously untapped section of the local labor market. local jobs for workers without post-secondary education Senior managers highlighted the value of opening up (e.g., in seasonal agriculture). Women also place con- competition for jobs at the mine and broadening the siderable value on the educational and health benefits range of background and experience amongst applicants. that Anglo American offers for their children, including The focus on skills shortages is not restricted to the local allowances for school, university and transport, scholar- level: this is also an issue for the mining sector at the na- ships, bonuses for academic excellence and subsidies for tional level. A recent study estimated that for the industry to meet projected growth targets over the period 2011- 2020, the industry will need to increase its workforce by “The focus on increasing gender diversity is not 65 percent (an extra 45,000 workers).151 The vast majority empty rhetoric: this responds to a real business of these jobs will be for operators of fixed and mobile need that the company takes very seriously” plant (including truck drivers). —Edwin Ugarte, Copper Planning and Resource Manager, Anglo American 151 This includes workers that would be directly employed by min- ing companies and workers employed by contractors in the “pri- mary value chain” (i.e., extraction, processing and maintenance functions). Currently, the industry workforce is comprised of 36% direct employees and 64% indirect employees: Fundación Chile, 2011, p 24. Annex B: Company case studies 65 considered these changes an important benefit, not just for productivity reasons but because workers said “The most powerful benefit of gender diversity they particularly valued the close-knit team atmo- is having different views in the workplace. You can’t measure the value of this, but it is clear to sphere at work. Furthermore, diverse teams helped to me that diversity of opinion improves business create a more respectful and professional environment performance.” that men and women alike preferred to work in. This was backed up by the 2012 online survey of workers —Roberto Martínez, General Manager, El Soldado and managers. • Gender diversity improves the tone of communica- tion: Managers and workers stated that having more Creating a high performance workplace women on site helps to temper the machismo of an all through diversity male working environment. This relates to the tone and Managers at El Soldado are convinced that improving level of communication in the workplace and can be gender diversity is an important tool for ensuring higher as simple as men using fewer swearwords and vulgar performance and growth at the mine. They cite three expressions. This change in tone applies in men’s com- main reasons: munication with women as well as with each other. • Greater diversity brings innovation and different Enhancing community engagement skill sets: Managers pointed to the value of having a mix of different perspectives, skills and experiences For El Soldado, one of the major benefits of its training for improving methods of working. Roberto Martínez, program for women is the extent to which it has proven the mine’s general manager, noted the importance of beneficial for its outreach to the local community. having “more voices to challenge established ways This is considered an extremely important outcome for the of thinking ... If you want your company to grow, mine, consistent with Anglo American’s commitment to you need to open your mind. New ideas come maintaining excellent relations with the local communities from new and diverse voices.” An online survey of associated with its operations and providing them with workers and managers across Anglo American Copper enduring socio-economic benefits. (including El Soldado) in 2012 confirmed that employ- Employing more women helps to enhance social aware- ees valued new skills brought to the team through ness of and acceptance of the mine, by improving the increased diversity. breadth of El Soldado’s engagement with the local • Gender diversity improves team dynamics: There community. Managers say that women who work at is also a sense amongst managers that more diverse the mine carry positive messages about El Soldado and teams lead to a better team dynamic. This is consid- ered to have very real benefits for company perfor- mance. As noted by Roberto Martínez, “People are what make the difference: all mining companies “Women are the best communicators we have: have trucks and equipment. Our competitive women tend to have good social networks and advantage lies in how our people operate those use these channels to carry the message about trucks and communicate with each other.” This is Anglo American’s values back to the community” about how people relate to each other on a profes- —Ursula Weber Fuentes, Social Development Manager, sional and personal level: having a diverse team Anglo American Copper made the work environment seem more like everyday life. Managers and workers (men and women alike) 66 Investing in women’s employment: Good for business, good for development Anglo American more generally back to their networks Anglo American considers that its work on gender diver- in the community. One manager noted that women have sity strengthens its position as a modern and forward- improved awareness of the operation within the commu- thinking organization. This helps the company to attract nity: “previously, only men were talking about their the best new graduates and enhance its status as an experiences at the mine; now, women do as well.” “employer of choice.” Just as importantly, providing more employment opportu- nities to local women is also thought to boost the mine’s impact on social and economic development in the Lessons learned local area, helping Anglo American to meet its commit- While managers at Anglo American feel that their gender ment to making a positive and sustainable contribution to diversity strategy is successful, success has not come over- the community. International studies suggest that higher night. There is still much more work to be done. Mining incomes for women are correlated with more expendi- operations at El Soldado (as elsewhere in the industry) have ture on children’s health, education and well-being, to a been male dominated for so long that the physical working greater degree than for men. 152 This leads to better health environment has evolved to respond to “men as the stan- and education outcomes for local children, whilst also rep- dard model”; from the size of personal protective equip- resenting an investment in future generations of potential ment (PPE) to the height at which materials were stored to workers at the mine. the availability of restrooms: adjustments were necessary to ensure that women as well as men were able to work. Consolidating Anglo American’s reputation as a progressive company Amongst its peers, Anglo American is now leading on “Historically, this industry has been a man’s world. gender diversity, with one of the highest proportions of However, you can’t say this anymore, because women’s employment in the industry.153 With 12 per- women are showing that they can work in cent female employment across its operations, Anglo mining operations, too, and do it just as well, if American Copper has double the industry average in Chile not better, than men.” (6 percent).154 The company has also exceeded the 10 —Rodrigo Díaz, Mine Engineering Superintendent percent (non-binding) target for women’s employment set by the Chilean government in 2009. At the national level, Anglo American considers that its In the past, the need for such adjustments might have efforts to set best practice on gender diversity across all of been used as a justification for excluding women from the its operations are evidence of its commitment to sustain- site. In the context of the explicit gender strategy, manag- able development in Chile. A visible and proactive com- ers adopted a more pragmatic approach and noted that in mitment to gender diversity helps to consolidate its social practice most adjustments were relatively minor and license to operate in Chile, particularly in the context of required flexible thinking rather than major expense. an industry where most mines are located in remote areas For example, heavy chocks are used under truck wheels to and many people have limited contact with the industry. prevent accidental movement when the vehicle is statio- nery. Managers recognized that these chocks were being stored too high for women to remove them safely from 152 World Bank, WDR 2013, op cit, pp 164-165. trucks. At no cost, these were shifted to a lower storage 153 Nueva Minería Energía, “Oficinas de Santiago concentran area on the trucks. The mine is still investigating other empleo feminino y Minera Gaby lidera en faenas,” El Mercurio (Chile), 22 October 2012. adaptations, including ways to make refueling equipment 154 As per figures provided by Fundación Chile study, op cit. lighter and easier for women to use. Annex B: Company case studies 67 There have been some investment costs involved, such as way for more women. However, acceptance gradually building separate facilities for women; however, managers came as men understood that their jobs were not under consider that the costs were generally minimal or out- threat. Men also had to learn new boundaries: when weighed by the benefits. According to Rodrigo Díaz, mine women first starting working on site, male workers would engineering superintendent, “extra costs involved in often use female toilets. Managers had to continue to integrating women into the workplace are imper- explain that this was inappropriate and, over time, the ceptible: it’s just not a relevant factor.” For example, behavior changed. the 2009 training program cost the same amount as the Other persistent cultural issues are small and seemingly amount that would have been spent on training men. harmless, but serve to reinforce women as outsiders Whilst initially some managers thought that the training in the industry. For example, managers noted that miners program might need to be lengthened or adjusted for on the site have traditionally been referred to as viejitos women, they discovered that this was not the case. or “old men,” an affectionate expression that is ap- plied regardless of the age of workers. However, there is no equivalent for women: a subtle but daily reminder The challenge is to be in a minority. It’s a double- of women’s relatively recent presence on site. Another edged sword: both your successes and failures manager noted that there are different ways for men and are more visible. This means that there is always women to greet each other, according to cultural norms: a bit more pressure on women to perform. women are expected to greet men with a kiss on the —Female manager, Anglo American cheek, whereas men shake hands. At a managerial level, this can change the dynamic in the room, particularly if there is only one woman present in a group of men. Sometimes problems or misunderstandings arise The trajectory of women’s employment at El Soldado shows unexpectedly. One manager related a story of a com- that breaking down the myth that mining is “men’s pany newsletter article which quoted a female truck driver work” takes time and effort. This involves showing as saying that driving a truck was “no more difficult than women and men that women can successfully work in driving a car.” This offended some of the male workers, operational positions. Despite initial doubts about women’s who thought that it showed a lack of understanding and ability to handle older trucks, managers quickly realized de-valued the skills required for the job. that women could drive old and new trucks just as well as Cultural change will only happen through persistent men. Women themselves have helped to dispel these management commitment. Senior managers at the myths, by spreading the word to their friends about the mine underlined the importance of not only visibly sup- benefits of working at the mine. These women also help to porting the gender diversity initiative, but in demonstrat- pave the way by showing that it is possible for women to ing genuine belief in women’s abilities and championing combine shift work with family commitments. A number the idea of fair play for all. As noted by Roberto Martínez, of men and women mentioned the inspirational effect of “senior leaders must have a strong belief in gen- Cynthia Carroll’s appointment as CEO of Anglo American in der diversity, otherwise any initiatives will just be demonstrating that women can thrive and succeed in the cosmetic.” industry, including at the most senior echelons. Whilst El Soldado has seen significant improvements in the Integrating women into the workplace was not an number of employed women, and it is now accepted for overnight success. Managers noticed that women were women to drive trucks, attracting female applicants for not readily accepted by male colleagues at first: some men mining jobs remains a challenge, particularly for jobs were concerned that they would be retrenched to make requiring graduate degrees or technical training. The lack 68 Investing in women’s employment: Good for business, good for development There are also some ongoing dilemmas, as El Soldado grapples with some issues related to women’s reproduc- tive role. In line with Chilean legislative requirements, the mine provides breastfeeding women with two half hour paid breaks each day.156 At the moment, the mine is providing transport for women to breastfeed children in their homes; however, the mine realizes that this policy would not be sustainable if there were greater numbers of women in the mine. Equally, reallocation of duties for pregnant women (away from operations) is currently done on a case-by-case basis; however, the mine understands that a more systematic approach is needed if it is to ac- commodate more women workers. (At the moment, there are only two pregnant women on site.) Conclusion Over the past six years, El Soldado has made a concerted effort to increase the gender diversity profile of the organization. Managers are adamant that greater gender diversity makes a concrete contribution to high perfor- mance levels and improved team dynamics. By targeting Female employee, laboratory, El Soldado mine, Chile. Photo: Anglo American women during recruitment, the mine has increased its of female interest in these jobs is seen to be a combina- choice of job applicants and enhanced its ties with the tion of factors: the industry’s reputation as overly macho, local community. perceptions of it involving dirty and physical work and the difficulty of combining long shifts and/or remote sites with El Soldado is proud of what has been achieved so far, but family responsibilities. Also, there are still very few women is aiming higher and plans to increase the proportion of undertaking mining-related training or degrees and, if women in operations even further, including in different anything, these figures have been decreasing in recent types of positions. The mine—and Anglo American more years (8 percent studying technical mining related subjects generally—recognizes that improving the organization’s in 2009 compared to 6 percent in 2012).155 El Soldado gender diversity profile is an ongoing journey: this hopes to train 10 women in 2013 to enter its plant and means not only recruiting more women, but also creating processing operations; however, applicants to the program the right conditions to retain them in the workforce. The will need to already have two years of technical training mine remains attentive to the fact that there is possibly under their belt. Given the extremely low participation more that it could do to support women’s integration into of women in this type of training across the country (let the operation and continues to consider further change in alone in the local area), it remains to be seen whether the this respect. mine will succeed in filling these positions. 155 Figures supplied by Anglo American Copper, Chile. 156 Article 206, Labor Code, Chile. Annex B: Company case studies 69 Continental, Thailand—automotive parts manufacturing In a tight labour market, it makes business sense to attract and retain the best available talent, irrespective of gender. Company background With sales of €32.7 billion in 2012, Continental is among the leading automotive suppliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotain- ment solutions, vehicle electronics, tires, and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also an expert partner in networked automobile communication. Continental currently has approximately 173,000 employ- ees in 46 countries.157 Woman driving forklift in warehouse, Continental, Thailand. Photo: Continental Continental’s plant in Amata City, Thailand, was officially opened in June 2009 and achieved full capacity pro- As of May 2013, the plant employs 521 people, although duction in the first half of 2011. Part of the company’s this figure is expected to rise as the plant’s output in- Powertrain division, the Amata City plant is the company’s creases. Around 41 percent of Continental’s workforce is international base for the manufacture of diesel injection female: most women work as operators on the assembly systems and has the capacity to produce 500,000 high line, but a significant proportion work in skilled positions. pressure pumps and 2.5 million piezo injectors each year. In particular, women account for 20 percent of the com- The plant uses cutting-edge technology and, in terms of pany’s engineers. This gender breakdown is considered in infrastructure and equipment, represents a considerable line with local norms in Thailand—where women workers investment for the company. The majority of production constitute roughly half of the country’s total manufactur- supplies the domestic automotive manufacturing industry ing workforce160—but high compared to global sectoral in Thailand, but a significant proportion is exported to norms, particularly in automotive parts manufacturing. India, China and Europe.158 The output of Continental’s plant in Thailand is projected to grow over the coming years, alongside forecast 40 percent growth in global automotive production.159 157 Unless otherwise stated, all information about Continental, its Thailand plant and its workforce were provided by Continental during and after field research in May 2013. 160 According to government statistics, women accounted for 158 Continental website, consulted 6 May 2013: www. around 51% of the manufacturing workforce in July-September conti-online.com/www/automotive_de_en/general/about_us/ 2012. See: National Statistics Office (Thailand), Labour Force about_us_en.html Survey – Whole Kingdom, July-September 2012, Appendix 159 PWC, Consolidation in the Global Automotive Supply Industry - Statistical Tables, 2012: http://web.nso.go.th/en/survey/lfs/ 2012, 2012, p 2. data_lfs/2012_lf_Q3_Statistical%20Tables.pdf 70 Investing in women’s employment: Good for business, good for development How Continental supports Continental’s Global Diversity Initiative women workers In 2004, Continental launched its global gender diversity Continental provides an attractive package of benefits for initiative. This was specifically designed to address the all workers: whilst this policy applies to men and women under-representation of women in professional and managerial positions, a challenge that is typical for many alike, it is particularly beneficial to women, given that companies operating in technical and engineering sectors. across the economy Thai women on average still earn Across its global operations, Continental aims to ensure less than men.161 Alongside the base salary, Continental that the organisation is promoting and making the best provides a generous accommodation allowance, overtime possible use of women’s potential. It plans to increase the hours, monthly productivity bonuses, annual company share of women in management roles from its current 8 percent to 16 percent by 2020. bonuses and free meals in the staff canteen. The company provides medical insurance to workers and their family At the Amata City plant, women already account for 13 percent of managers. members and makes co-contributions with workers to a provident fund, which becomes accessible to workers Sources: Information provided by Continental, May 2013; Continental, “Supporting Women,” consulted 24 June 2013: www.continental- when they retire or leave the plant. Conti also provides all corporation.com/www/csr_com_en/themes/employees/equal_opportunity/ workers with safe transport to and from work, with 16 women_support_en.html. separate routes across the surrounding area, and makes sure that pick-up points have safe, well-lit waiting areas. A secure job with these benefits means a great deal to For many women, there are a number of practical benefits female assembly line workers, many of whom describe it associated with Continental’s high-technology workplace. as a “dream job.” 162 Some were so determined to work Unlike many factories in the area, the Continental plant is for Continental that they applied several times before their a closed, air-conditioned space: this is vital to maintain sta- job applications were finally accepted. These women are ble air temperature, humidity levels and cleanliness, which predominantly internal migrants from rural provinces in reduces dirt and dust particles and ensures precision and north-east Thailand and remit a large proportion of their quality in the manufacturing process. As part of its focus salaries to their families back home, which often includes on cleanliness, the plant purchases workers’ uniforms and their children, who are cared for by their grandparents. 163 arranges for their daily laundering: women appreciate this For these women, their job at Continental is the primary because it reduces their chores in the home. On a more means by which they educate their children and support abstract level, many women say that the future of the their parents. The company’s generous medical insurance company and, by extension, their jobs feel more secure as scheme also provides important support for families, cov- a result of the very visible investment that the company ering workers and two family members for outpatient care has made in buildings and high-value equipment. per day as well as dental care. Given Continental’s emphasis on innovation and technol- ogy, there is a well-developed programme of training 161 International Labour Organization, Thailand: A labour market profile, 2013, p 38: www.ilo.org/wcmsp5/groups/public/---asia/- and professional development. This includes training on --ro-bangkok/documents/publication/wcms_205099.pdf workplace health and safety issues covered by regula- 162 Comments made during focus group discussions with women workers, Continental, May 2013. tory requirements, technical training, training in “soft” 163 Women comprise nearly 50% of internal migrants in Thailand. skills (such as twice-weekly English lessons) as well as Because of significant levels of internal migration of women and men alike, it is estimated that around 20% of Thai children more specific development and training opportunities for do not live with their parents. A number of studies indicate professional staff. that female internal migrants in Thailand are more likely to remit money home than their male counterparts, sending larger amounts at more frequent intervals. International Organisation for Migration (IOM), Thailand Migration Report 2011, 2011, pp 2, 110: http://www.un.or.th/documents/tmr-2011.pdf Annex B: Company case studies 71 How the company benefits As noted by a senior manager at the plant, “technically- oriented companies like Continental cannot afford Tackling turnover and labour to discriminate on the basis of gender, given the de- shortages by being an “employer of mand for and shortage of locally trained engineers.” choice” Unskilled labour is also in short supply: the Ministry of The global automotive supply industry is intensely compet- Labour projects that in 2013, for the first time, Thailand itive and characterised by rapid technological change, high will experience a net shortage of 116,000 workers.166 capital expenditure and ongoing cost pressures. Retaining Alongside national labour shortages, the flow of inter- workers in the face of an increasingly tight labour market nal migrants from the north and north-east of Thailand is one of the biggest challenges that the plant faces, towards industrial estates like Amata has been gradually according to Dr. Dirk Janovsky, the plant’s Managing declining since 2002.167 More recently, the introduction Director. This applies at all levels of the workforce, from of a national minimum wage in 2013 has evened out unskilled entry-level positions to highly skilled professional significant regional wage disparities and weakened the staff. Continental recognises that staff turnover costs the incentive for migration.168 Minimum wage workers from company money, principally in terms of lost productivity: poorer provinces are now more likely to find jobs at home in high-value manufacturing, this can add up quickly, even with the same wages as in industrialised areas.169 for entry-level plant floor positions (many of which are held by women). For these positions, workers need four On the Amata City Industrial Estate, which is currently to six weeks of on-the-job training before they reach full home to 116 companies,170 there is a clear sense that the productivity, resulting in productivity shortfalls for the new number of plants on the estate is growing, but the num- recruit and the supervisor alike. For professional staff, the ber of workers is not growing at a corresponding rate. In company estimates that it takes up to 5 to 6 months. other words, there is a growing demand for labour, but companies are increasingly competing for a fixed pool of In addition to the company’s emphasis on compliance workers. Some companies, particularly newcomers to the with its global non-discrimination policy, labour shortages estate, are becoming increasingly aggressive in pursuing mean that rejecting a worker’s application on the grounds the best workers, which often means targeting unskilled of gender (or any other characteristics that are not rel- and skilled workers from Continental who have benefited evant to the job) is simply not an option. In particular, the lack of skilled workers is frequently cited by companies as a major constraint on growth164 and this problem is even 166 International Labour Organization, Thailand: A labour market more acute for factories like Continental that use complex profile, 2013, p 49: www.ilo.org/wcmsp5/groups/public/---asia/- technology and require highly specialised technicians and --ro-bangkok/documents/publication/wcms_205099.pdf 167 This may be attributed at least in part to demography: there engineers. Thailand’s transition from low-skill exports to is a declining proportion of population in the 15-24 year age more technologically intensive manufacturing has raised bracket, when migration rates are usually the highest: IOM, op cit, p 2. the demand for engineers dramatically: in 2010, the short- 168 In the north-east of Thailand, the increase means that age of automotive engineers was estimated at 10,300.165 wages have doubled from the previous year. Gwen Robinson, “Thailand rejects business fears on pay,” Financial Times (UK), 8 January 2013: www.ft.com/cms/s/0/c4a43608-5984-11e2-ae03- 164 Some 38.8% of companies cite skills and education of 00144feab49a.html#axzz2TTM7m7lF the available workforce as the most serious obstacle 169 The national minimum wage increased by an average of 40% to doing business in Thailand. World Bank, Thailand from 2011 levels, effective from January 2013. It remains to be Economic Monitor, 2012, p 26: http://documents. seen what the medium-term labour market implications are: worldbank.org/curated/en/2012/12/17156017/ previous analysis of minimum wage increases suggested that thailand-economic-monitor-december-2012 employment opportunities for women, elderly men and less 165 The Economist Intelligence Unit, Skilled Labour Shortfalls in educated workers declined in provinces where minimum wages Indonesia, the Philippines, Thailand and Vietnam: A custom grew faster, but remained steady for working age males. World research report for the British Council, 2012, pp 45-46: Bank, op cit, p 4. www.britishcouncil.org/labour_market_shortfalls_in_sea_eiu_ 170 Amata City Industrial Estate website, consulted 13 May 2013: final_18_july.pdf www.amata.com/eng/industrial_amatacity.html 72 Investing in women’s employment: Good for business, good for development from the company’s training programme and have gained of women on this line increased, the area stayed cleaner valuable experience in operating high-tech equipment. for longer. Managers suggested that as manufacturing processes at the plant become more sophisticated and Against this backdrop, Continental considers that it is criti- machines do more of the heavy lifting, it is likely that even cal to maintain its status as an employer of choice in the more traditionally male jobs will be opened up to women. area in order to attract and retain the best workers. First and foremost, this involves offering an attractive package A manager in the plant’s warehouse says that he likes of wages and other benefits, such as the housing allow- to maintain gender diversity in his team, as women and ance and medical insurance. However, in the context of ris- men bring different and complementary skill sets to the ing wages for unskilled workers, it also means recognising workplace. In this area of the plant, men and women tend that Continental can’t always compete on wages alone: to be recruited for different tasks: men are more likely to the company also has to offer attractive career develop- have skills and experience in certain areas, like forklift driv- ment and promotion opportunities and ensure that work- ing, while women are more likely to be assigned to tasks ers enjoy coming to work at the plant. This is particularly that require more dexterity and attention to detail, like important for semi-skilled and skilled workers, like machine handling small components. However, it is recognised that setters and engineers, whose skills are particularly valuable women are capable of taking on some of these “male” and difficult to replace. To date, this strategy is proving tasks with minimal training: once recruited, women are successful and the company has not encountered major then trained to drive forklifts. problems in recruiting workers at the site. Across all areas of the plant, supervisors value women’s efforts to keep the workplace clean and organised and Drawing on women and men’s consider that they set a good example in this respect for complementary skills sets everyone. This is considered a valuable contribution in Continental is actively reaching out to encourage more light of the importance of cleanliness to the plant’s manu- women to work in the technical and managerial positions facturing processes. where they are underrepresented. At the same time, at the Amata City plant, many managers and supervisors consider that employing women in more traditionally female areas brings benefits because in their experience women tend to be particularly good at tasks that require organisation, tidiness and attention to detail. A high pro- portion of women are employed on assembly lines where these attributes are particularly sought after: women workers themselves have a sense that they are specifically “needed” in these areas of the factory.171 In areas of the plant that require more heavy lifting or spe- cific vocational qualifications that women are less likely to have, there tends to be a much lower proportion of women workers. However, on the machining production line, there is now a growing number of women, as a result of the introduction of a new line with lesser requirements for Women workers on assembly line, Continental, Thailand. Photo: Continental heavy lifting. One supervisor noted that after the number 171 Information provided in focus group discussions with Continental women workers, Thailand, May 2013. Annex B: Company case studies 73 Creating a more cohesive team Employee surveys are another way in which women work- environment ers can raise concerns or make suggestions. The company A number of supervisors comment that having more carries out a global employee survey once a year, but the women in the workplace helps to improve team dynamics. plant also carries out its own surveys on targeted issues. One supervisor who had recently recruited more women In 2012, a survey on company transportation provided an to a heavily male-dominated machining line—following opportunity for women workers to raise safety concerns the introduction of a new production process that re- and identify pick-up points along worker transport routes quired less heavy lifting—commented that having greater that they felt were unsuitable or unsafe. In response to gender diversity had made the team atmosphere notice- women’s comments in the survey, the plant carried out an ably lighter and more agreeable for everyone. assessment of the routes and changed a number of the pick-up points. The plant’s human resources director ex- plained that “it is important that the company is pro- Capturing Women’s and Men’s active on the issue of women’s security and doesn’t wait for problems to occur.” Continental also intends to Voices carry out a survey on the medical insurance scheme. One of the challenges for many companies is to estab- Ideas and concerns are also shared between workers and lish mechanisms to ensure that all employees, including their supervisors on a more informal basis. In one case, women, have a voice in the workplace. Continental has women workers on a production line raised concerns with created a number of different channels of communica- their supervisor that some of the boxes of injectors were tion between workers and management, which women too heavy for them to lift regularly over the course of their workers have used effectively to voice concerns or make shift. As a result of this feedback, the manager decided to suggestions about issues that affect them. This includes reduce the number of components by approximately 30 a formal grievance mechanism and a Worker Welfare percent, making the task easier for women, without any Committee, but also a number of other more innovative adverse effect on productivity. conduits for worker-management dialogue. Continental encourages employees at all levels to con- tribute their ideas for improvements in the company’s Conclusions operations, based on a philosophy that “[e]ven many small Continental’s Amata City plant shows that good working improvements make a big impact overall.”172 At the plant conditions and a respectful working environment for all level, this centres on a programme called “Continental workers—men and women alike—are not only sustain- Ideas Management” (CIM), which invites staff to submit able but key to economic success in a sector characterised their ideas in writing. Staff ideas often relate to aspects of by high-value products, tight margins and high levels of the production process, but many relate to practical mat- competition. In the context of a tight labour market for ters of staff concern. One proposal put forward by women skilled and unskilled workers, Continental’s experience in workers and implemented by the plant was the purchase Thailand shows that it makes eminent business sense to of uniforms designed for pregnant women, as many were attract and retain the best available talent, irrespective of having trouble fitting into their regular uniforms. As noted gender. This means that the plant has the workers it needs by the manager in charge of CIM at the plant, “managers at all levels of the organisation, while women have better don’t always know what the issues are on the factory floor: access to traditionally male jobs and the opportunity to CIM provides a system for feedback from the bottom up.” earn a living wage. 172 Continental website, “Continental Idea Management,” con- sulted 17 May 2013: www.continental-corporation.com/www/ csr_com_en/themes/employees/cim_en.html 74 Investing in women’s employment: Good for business, good for development Finlays Horticulture Kenya—agribusiness A more systematic approach to training and a focus on creating a respectful and harassment-free workplace culture helps to improve compliance with key stakeholder expectations, reduce turnover and absenteeism and secure key markets. Company background Finlays Horticulture is the largest vertically-integrated pro- ducer and exporter of fresh produce and flowers from Africa to the EU, with major agribusiness operations in Kenya and South Africa.173 Globally, Finlays sold over 850 million flowers (stems) in 2011, 50 percent of which was grown on its own farms and 28,000 tonnes of fresh pro- duce, 40 percent of which was grown on its own farms or by its dedicated smallholders.174 Finlays Horticulture Kenya175 is integral to Finlays’ global horticulture and floriculture operations, accounting for 40 Woman cutting roses, Finlays Horticulture Kenya. Photo: Finlays percent of Finlays’ fresh produce (vegetables and herbs) and 44 percent of fresh flowers.176 In 2011, the turnover The expansion of African horticulture and floriculture since for Finlays Horticulture Kenya was KES 9,581,447,000 the mid-1990s means that the sector now provides an ($112.6 million).177 Its main products are green beans, important source of employment in Kenya, accounting for snap peas, snow peas, asparagus and different varieties of an estimated 50,000 jobs in rural areas, resulting in strong cut flowers, which are sold to the EU, Japan and Australia. multiplier effects on local economies.178 Finlays’ buyers in these markets have high standards, requiring consistently high quality produce on tight This case study focuses on developments at three of schedules. Finlays’ major operational sites in Kenya179—Naivasha (pro- duction), Mount Kenya (production) and Nairobi’s interna- tional airport (processing and packing)—and its head office in Nairobi. Across these three sites, Finlays Horticulture 173 Finlays, Sustainable Development Report, 2011, 2012, p 13: www.finlays.net/download/Finlays-sustain-2011.pdf employs some 7,900 employees, including over 3,800 174 Finlays Horticulture belongs to a wider group of Finlays com- women, who form over 50 percent of farm employees. In panies which operate in a range of industries, including tea, timber and rubber, global trading, packaging and extraction September 2012, the company appointed its first female activities. Finlays is owned by the UK-based Swire Group, which board-level director, as a result of internal promotion. in turn has a highly diversified global portfolio of interests. Finlays, Sustainable Development Report, 2011, 2012, p 59: www.finlays.net/download/Finlays-sustain-2011.pdf 175 Finlays Horticulture Kenya began life in 1982 as Homegrown 178 C. Ehlert, D. Mithöfer and H. Waibel, Food Production Kenya, which was acquired by Finlays in 2007. A number of Standards, Farm Size and Farm Worker Welfare in Kenya, paper the programmes described in this case study began while the for 2011 Better Work conference: www.betterwork.org/EN/ company was still Homegrown. events/research2011/Documents/Session%205%20Food%20 176 Finlays, Sustainability Report 2010, 2011, p 58: www.finlays. Production%20Standards,%20Farm%20Size%20and%20 net/wp-content/uploads/2011/09/Finlays_Sustainability_ Farm%20Worker%20Welfare%20in%20Kenya.pdf Report_2010.pdf 179 At the time of writing this case study, another site, Kericho (rose 177 Figures supplied by the company, October 2012. Finlays, production), was still in the process of being integrated into the Sustainability Report 2010, 2011: www.finlays.net/wp-content/ operations of Finlays Horticulture and so was excluded from this uploads/2011/09/Finlays_Sustainability_Report_2010.pdf case study. Annex B: Company case studies 75 Starting point: recognizing the How Finlays supports women issues workers The promotion of greater gender equality among its At the policy level, Finlays’ company-wide Sustainable employees is an issue of strategic importance to Finlays. A Development Commitments set the tone for the com- turning point for the company came with the first so- pany’s approach to women’s employment.180 There are cial audit of its Kenyan sites in 2004. This took place at a express commitments to “demonstrate leadership in time when the horticulture and floriculture export sectors equal opportunity employment”; and “encourage and in Kenya were subject to allegations by local human rights facilitate female representation and the contribu- organizations of poor labor practices and reports of sexual tion of women to the business,” as well as to making harassment against women workers. Finlays “an enjoyable and rewarding place to work” for all workers. These goals and the company’s policies on equal The audit, which was prepared by an external expert, opportunity and sexual harassment are now explained to found room for improvement. Amongst other things, the all workers during induction and training sessions and dis- audit noted that, whilst the company did provide training tributed in a “Staff induction booklet,” an abridged version to workers, the approach could be more systematic. The of the company’s policies and procedures.181 auditor recommended the formation of a training depart- ment to coordinate the company’s training program. Also, From 2004, Finlays has worked hard to build a compre- at the time of the audit, the workforce was 80 percent hensive and structured training program to support female: the auditor recommended the development of the vocational and personal development of its employ- a formal dialogue mechanism to provide women with ees.182 The company now offers a diverse mix of nearly a means to raise issues that directly impact on women’s 200 different courses to its workforce. Whilst around two participation and performance in the workplace, such as thirds of the courses are based on statutory requirements breast feeding and family planning. (particularly health and safety), there are also vocational skills development and personal development courses on From this starting point, Finlays has taken a series of literacy, personal finances, family planning and women’s proactive steps over time to invest in and support women empowerment. Targeted training and support is also avail- workers. The main elements of its strategy have involved: able for women who wish to work in positions tradition- • Clarifying company policies and procedures on ally taken by men, such as security guards, workshop equal opportunity and a harassment-free workplace mechanics or company drivers. Over 91,000 hours of and communicating these clearly at all levels of the training were completed by Finlays workers in 2011 (up organization; from 57,000 in 2009), averaging just over 10 hours per staff member.183 • Designing and implementing a comprehensive pack- age of training for workers and supervisors to enhance In addition, Finlays has launched an educational loan vocational skills and personal development; and scheme that provides financial support to workers to • Introducing gender committees to provide women obtain externally-provided qualifications. The scheme is with a stronger voice within the workplace. available to workers at all levels of the company, from field 180 These commitments are set out on the Finlays website: http:// www.finlays.net/sustainability/priorities. 181 Finlays Horticulture Kenya Ltd, Staff Induction Booklet, September 2012 version. 182 Finlays, Sustainable Development Report, 2011, 2012, p 7: www.finlays.net/download/Finlays-sustain-2011.pdf 183 Figures provided by Finlays, October 2011. 76 Investing in women’s employment: Good for business, good for development operations through to senior management, and provides with men occupying senior positions and women in more workers with a repayable loan and extended leave (up to temporary and insecure forms of employment.186 The four years) to pursue their education. Workers then have company recognizes that this position of disadvantage the right qualifications to be promoted into more skilled means that providing formal opportunities alone is not positions within the company. This provides a crucial step- sufficient: managers also make sure that they personally ping stone for low-income workers, in particular those encourage women to fulfill their potential and apply for who have dropped out of formal education by financial training and promotions. necessity rather than personal choice. Last not least, the The introduction of women’s committees in 2004 was company also offers free training on personal finance man- an important step in empowering women. The com- agement, which women have found particularly helpful. mittees, composed of elected female representatives, Whilst workplace training and education loans are avail- have provided a stronger voice for women on issues that able to all workers, women derive particular benefits particularly affect them, such as taking breaks during the since they start from a point of socio-cultural disad- day for breastfeeding. The representatives collect agenda vantage, particularly in rural areas, where women are items from women during the course of the working day, more likely to have lower levels of literacy and formal and then meet monthly with management representatives education than men and fewer financial resources from to discuss the issues and the company provides training which to help pay for further education and/or train- and capacity building program for elected representatives ing. 184 In addition, women only account for 30 percent of to ensure the ongoing effectiveness of the committees. waged employment in Kenya: a woman is less likely to be Finlays pinpoints its supervisor training program, employed than a man, especially if young, and her income launched in 2010, as a key plank in efforts to improve is typically significantly lower than a man’s in the same human resource management and reinforce a culture job.185 Across the sector, gender segregation is common, of equal opportunity at all levels of the organization. According to Brenda Achieng, Human Resource Manager, “Supervisors often find themselves caught in the middle “As a supervisor, the training I received on sexual of the production process; that is, taking orders from top harassment and discrimination was an eye- management and giving instructions to the workers they opener since I used to unknowingly harass my manage. Due to these pressures and the fact that some junior ladies by tapping their shoulders and supervisors lack experience in people management, they smiling with them. I am now very careful with tend to manage the way they know best. This can lead what I do, for it can lead to misinterpretation.” to some of them taking advantage of their positions and —www.ethicaltrade.org/training/supervisor-training/ leading to cases of sexual harassment where they solicit finlays-horticulture sexual favors from the women workers or at times they tend to be harsh and discriminatory.” Finlays used a su- pervisor training programmed developed by the UK-based Ethical Trading Initiative (ETI) to address these issues and create further cultural change. The program builds people 184 A. Ellis, Gender and Economic Growth in Kenya: Unleashing the Power of Women, report for the World Bank, 2007, management skills and provides supervisors with concrete p 10: www.ifc.org/ifcext/enviro.nsf/AttachmentsByTitle/p_ guidance on what constitutes harassment, sexual harass- GEM_GenderandEconomicGrowthinKenya/$FILE/Gender+ and+Economic+Growth+in+Kenya.pdf. While measures to ment and discrimination, and how to deal with grievances increase girls’ access to education have improved gender parity in education, gender disparity persists in rural and poor areas and, across the country, female literacy remains markedly lower 186 S. Barrientos, A. Kritzinger, M. Opondo and S. Smith, “Gender, than male literacy. World Bank, Country Partnership Strategy – Work and Vulnerability in African Horticulture,” IDS Bulletin, Kenya, 2010-2013, p 5. 38(2), 2005, pp 74-9: www.future-agricultures.org/pdf%20 185 World Bank, Country Partnership Strategy – Kenya, 2010-2013. files/9559%20IDS%20P74-79.pdf Annex B: Company case studies 77 and disciplinary issues. To date, over 250 supervisors and The Business Benefits 40 senior managers have been trained. An impact assess- ment of the supervisor training program concluded that it Maintaining Finlays’ reputation as a had led to a remarkable improvement in communication leader on women’s employment between workers and managers.187 Whilst Finlays takes pride in meeting its company-wide commitments on equal opportunity and women’s em- Finlays is determined to move away from the “indus- ployment, the company is also aware that it operates in try norm of a two-tier workforce”—i.e., the pattern in a sector where consumers are highly sensitive to social many companies in the sector where women constitute and labor issues. Codes of conduct with strict social and the majority of field workers in temporary positions and environmental standards are now widely adopted across men constitute the majority of supervisors and managers. export horticulture and floriculture in Kenya.188 Finlays has The company considers that investment in the company’s Fairtrade189 and GlobalGap190 certification and is a member human capital at lower levels of the business, as well as in of a number of ethical, environmental and industry bod- management, will help to ensure improved representation ies, including the UK-based Ethical Trade Initiative.191 This of women at the supervisor level and upwards. Having means that as well as doing the right thing, Finlays must more women in these roles is not just an end in itself, but be able to demonstrate that it is doing the right thing. also an important tool for embedding gender awareness and cultural change at all levels of the organization. For ex- In this context, showing commitment to women’s em- ample, as noted by Finlays Sustainability Director, “the best ployment has a bearing on the company’s ability to way to tackle sexual harassment is to promote women.” maintain market share. In particular, this is important for European supermarkets who want to source high qual- Workers confirm that the company’s enhanced focus on ity produce from suppliers who can clearly demonstrate training and strong human resource policies has helped to compliance on equal opportunity requirements within empower women and has led to a genuinely meritocratic voluntary codes of conduct. Some place great value in workplace with increased job security. Efforts to create working with suppliers who go beyond compliance; for behavioral change in the workplace have been success- example, Sainsbury’s (UK) aims to ensure that, by 2020, ful; as one woman worker stated: “Now we are no longer afraid of being intimidated by a man just because he is a man.” Another said: “Before if you refused to offer a bribe or sexual favors, your supervisor could terminate your employment on any pretext. This has now changed.” 188 Ellis, op cit, p 84. 189 FairTrade is a global movement that seeks to provide fairer trading conditions to producers and workers in developing countries. It does this by certifying producers and brands who “This investment in training our employees meet certain minimum social, economic and environmental standards and giving them the right to use the FairTrade label centres on making Finlays Horticulture a better in marketing their products. See, for example: http://www. place to work and being an employer of choice.” fairtrade.net/?id=361&L=0 190 GlobalGAP is a global initiative that sets voluntary standards for —Finlays, Sustainability Report, 2011 the certification of agricultural production processes (includ- ing aquaculture) around the globe. It is primarily focused on good agricultural practice and health and safety. See: www. globalgap.org 191 The ETI is a UK-based multi-stakeholder initiative of companies, non-government organisations and trade unions. Its corporate members have a combined turnover of £125 billion and cover a diverse range of areas, including supermarkets, fashion retailers, department stores and stone sourcing companies, as well as major suppliers to retailers of food and drink, flowers, clothing, shoes, home wares, promotional and other products. See: 187 Finlays, Sustainable Development Report, 2011, 2012. www.ethicaltrade.org 78 Investing in women’s employment: Good for business, good for development its suppliers will be “leaders in meeting or exceeding our planning within the business. This program is run for staff social and environmental standards.” 192 at all levels of the organization, providing a ready pipeline of talent by encouraging internal promotions amongst Providing women workers with more empowerment staff when opportunities arise. Human resource managers through training and representation in the workplace has reported that the improved internal talent pool meant that made Finlays’ social compliance program more robust. The recruitment had become much more straightforward: it is goal of its interventions is to change the dynamic between estimated that 90 percent of roles are now filled internally. workers, supervisors and managers so that equal oppor- This not only means that the company retains the less tan- tunity and non-harassment is integrated into the values gible value of internal know-how within its workforce, but and day to day culture of the organization. This makes it it also save money on costs associated with recruiting new less likely that discrimination and harassment will arise in workers, including advertising, training and lost productiv- the first place and more likely that it will be detected if it ity as new workers get up to speed. The internal promo- does. Interventions on women’s employment also help to tion of 69 women from 2010 to 2012 is estimated to support Finlays’ Fairtrade certification. have saved the company KES 17 million (US$200,000). As such, going “beyond compliance” to develop a strong For Finlays, there is a direct correlation between the com- program of benefits for workers helps to provide Finlays pany’s investment in training and equal opportunity and with continued access to existing markets, access to new its ongoing ability to retain the most talented, loyal and markets and the opportunity to be business of choice motivated workers. Finlays acknowledges that its outlays when a customer is seeking a supplier to produce a new on training and support for workers are considerable but, product line. Senior company managers feel that their ap- according to the company finance controller, “the alter- proach to their workforce and emphasis on women helps native is even more expensive”; that is, workers would deliver benefits by meeting market demand. It helps to be less efficient, management time would be wasted on maintain Finlays’ market leader status and differentiates minor issues, productivity would be lower, the company the company from other businesses in a highly competi- would not receive the government subsidy for training tive market. It demonstrates that they listen to customer and recruitment and health and safety costs would be feedback, creates recognition and respect for the com- higher. Although Finlays has always enjoyed very low pany at national level, and provides a cushion against staff turnover across the organization improving retention bad publicity which has sometimes been directed at the of quality staff is nevertheless a key concern at all levels industry, as they company can demonstrate difference of the organization that translates into direct business from the norm. Some managers felt this creates savings in benefits. On fine bean production for example, an expe- public relations and marketing. rienced worker can process three times more kilos of green beans than a casual inexperienced worker. Most efficient use of human capital: retaining and developing the best staff Despite the modernization of production, horticulture and Finlays considers that one of the major benefits of its floriculture remain labor-intensive processes, with labor training program and loan scheme is the “pipeline of generally accounting for 50-60 percent of farm costs.193 In this context, Finlays considers that it makes sense to invest talent” that it creates; i.e., a ready pool of skilled and in its workforce to ensure the most efficient use of human motivated employees who can be promoted up through capital. Senior management note that: “it makes busi- the company hierarchy. It has developed a program called ness sense to use all our resources, including human Routes to grow which aims to strengthen succession resources, effectively, and that ultimately sustainable 192 Sainsbury’s, “Supplier standards,” website consulted 20 November 2012: http://www.j-sainsbury.co.uk/ responsibility/20x20/supplier-standards/ 193 Barrientos et al, 2005, op cit. Annex B: Company case studies 79 resource use will help maximize profits. This needs to absenteeism amongst women workers had also dropped include women as well as men.” as a result of the company’s optional training on personal finance, which had lessened financial stress on households Improved employee morale leads to and decreased tensions and the likelihood of domestic enhanced productivity violence. According to Finlays’ managers, there is a clear link Improved employee relations, reduced absenteeism and between improved employee morale and improved the retention of more experienced staff—directly attrib- productivity. The labor-intensive nature of the production uted by managers to the company’s initiatives on equal process means that there is substantial range of productiv- opportunity, sexual harassment and training—have led to ity on some products; for example, on some cut flowers, more stable production, making production plan- a fully productive worker can harvest and bunch twice ning and management easier. The company has seen that of a low productivity worker; that is, 2,000 stems/day that good overall relations in the workplace can be drawn compared to 1,000 stems/day. One production manager on to maintain productivity during difficult times, such as estimated that for overall farm productivity, 50 percent during redundancies or interruptions to production from of productivity relates to worker motivation, the other 50 external events (such as political upheaval). percent to agricultural practices. The combination of training, communication and em- powerment of workers has freed up management time to focus more intently on other more planning and “It is due to our committed and skilled workforce production-based targets. Production managers reported that Finlays is known for its ... ‘farm to that improvements in the overall workplace culture meant shelf’ expertise in horticulture and long term that they spent significantly less time dealing with daily commitment to sustainability and ethical trading. workplace conflicts, such as grievances or disciplinary We deal with products and services that require matters, while improvements in health and safety training significant manpower and application of skills, have led to a fall in routine injuries, saving workforce and from harvesting to preparation to processing.” management time, as well as the costs of providing first —Finlays, Sustainability Report 2011, p 24 aid treatment and medication. Responding to regulatory requirements Since 2008, when the company’s complete package of Supporting female and male workers also leaves Finlays training measures were fully operationalized, company- well placed to meet new or changing regulatory and wide absenteeism rates have dropped by 7 percent- certification requirements at national and international age points, representing savings for the company level. Now that the company’s training program is more of KES 25 million (US$280,000) over three years structured, training managers reported that preparation (2009-2011). This has important implications for pro- for social audits and checking regulatory compliance takes ductivity, as it means that the company can decrease its less time, particularly given the up-skilling of the work- use of less-experienced, less-productive casual labor, and force on health and safety matters. The training program provides cost savings for the company, which is liable for is a regulatory requirement in itself: two thirds of the statutory sick pay. One manager considered that Finlays’ cost of all training responds to statutory requirements. policies and procedures on fairness and equal opportu- Nevertheless, Finlays can recoup the national training levy nities had led to an estimated 75 percent reduction in (50 KES / US$0.60 per worker per month) and access a absenteeism and 100 percent improvement in productivity further subsidy of the same amount from government. on one product line. Anecdotally, it was suggested that 80 Investing in women’s employment: Good for business, good for development Conclusions Finlays has managed to achieve cultural change in the workplace through the development of clear policies, the introduction of training for supervisors, a comprehensive program of vocational and health and safety training for all workers and support from senior management. What was initially a response to criticism of the industry has turned into a more strategic and systematic approach to human resource management that has brought wide- spread benefits for workers and the business as a whole. Whilst the company’s training programs are available to men and women alike, focusing on the creation of a workplace free of harassment and ensuring that train- ing programs are available to all workers has particularly benefitted women. Raising awareness about pregnancy and HIV, Finlays Horticulture Kenya. Photo: Pins Brown Finlays firmly believes that it has gained productivity ben- efits, as well as market recognition for this work. The ben- in this area. While the company supports women workers efits of its push to improve outcomes for women workers on principle, the maintenance of this focus on equal op- are already evident: the company sees this as an effort portunity through harder commercial times is evidence of worth building on and intends to continue its investment their direct business benefits. Annex B: Company case studies 81 Mriya Agro Holding, Ukraine—agribusiness How a commitment to sound people management helps to support women workers and provides the foundations for company expansion. Company background Founded as a small family business in 1992, Mriya has long since outgrown its modest origins to become one of the largest agribusiness operators in Ukraine, with an operating profit of US$170.9 million in 2011. In recent years, the company has been expanding and increasing its land holdings: it now manages 298,000 hectares of land, concentrated within a 150 km radius of its head office in Ternopil oblast. In addition to crop cultivation (mainly wheat, sugar beet, rapeseed and potatoes) the business also operates storage facilities, a seed plant, sales depart- ment and a fully integrated logistics centre, including a Women workers, Mriya, Ukraine. Photo: Alke Schmidt transport fleet. While 20 percent of shares were placed on the Frankfurt Stock Exchange in 2008, 80 percent remain rates in Ukraine.195 As of June 2012, the company employs in the hands of the founding family. over 5,700 staff across Ukraine, including 680 seasonal workers. Around 30 percent of Mriya’s total workforce is Mriya has established a major presence within a sector female, up from 2010 (27 percent). The gender break- that is a crucial engine for economic growth in Ukraine. down varies between different functions of the business, In 2010, 24 percent of national exports were agricultural ranging from 16.4 percent women in the mechaniza- and food products, of which 47 percent were grains tion department to 91.6 percent in the HR department. and oil-bearing crops. The sector has grown annually at Women account for about 30 percent of the workforce on 5.1 percent since 2001, but experts believe that there is the operational side of the business, where they tend to considerable untapped potential for further growth due to be concentrated in the laboratory or in unskilled manual the country’s abundance of fertile soil and key geographi- jobs, such as potato picking and grading, whilst men cal position near markets in Europe, CIS, the Middle East tend to occupy more skilled positions involving machine and North Africa.194 operating and/or heavy lifting.196 The number of women Mriya’s commercial success has resulted in significant gains in senior management is 24 percent. for the local communities in which it operates, not least through the creation of hundreds of new jobs in a rural 195 In the first quarter of 2012, 11.6% of the working age popula- area that suffers from one of the highest unemployment tion in Ternopil oblast were unemployed, the second highest rate in the country. State Statistics Agency of Ukraine, “ILO un- employment rate of population in 2012, by region,” consulted 25 June 2013: http://ukrstat.org/en/operativ/operativ2012/rp/ 194 See, e.g., Roman Olearchyk, “Ukrainian farming: untapped po- rp_reg/reg_e/rbn_2012_e.htm tential,” Financial Times (UK), 27 June 2011: http://blogs.ft.com/ 196 Depending on the type and amount of crops cultivated in a beyond-brics/2011/06/27/ukrainian-farming-undeveloped- given year, the demand for different types of jobs will vary potential/#axzz24r5YoMBW; European Commission, Ukraine’s and consequently the gender composition of the workforce: Agriculture: Harvesting the Potential?, briefing note, DG for example, in 2011, 65% of seasonal workers were women, Agriculture and Rural Development, 2009: http://ec.europa.eu/ whereas in 2012 women made up only 27% of seasonal agriculture/publi/map/03_09.pdf workers. 82 Investing in women’s employment: Good for business, good for development How Mriya supports women appreciation for managers’ flexibility in case of family/ childcare emergencies. workers Mriya also strives to provide attractive working condi- Mriya aims to offer a package of working conditions and tions for its workers in the field. For example, Mriya pro- terms of employment that will build the company’s reputa- vides field workers with transport to and from the fields, tion as an employer of choice in the region. Whilst these as well as a transport subsidy for other workers. Other conditions apply equally to men and women, many are benefits particularly appreciated by women include pre- particularly valued by women, who often have primary re- dictable shift patterns; good toilet, washing and changing sponsibility for childcare and family commitments. Most of facilities; free meals and drinking water; and four medical these benefits are also available to seasonal workers in field points across the production areas that are accessible to all operations, a significant proportion of whom are women. workers. Further, Mriya has plans to build a medical centre Mriya provides stable and—above all—local jobs, with in Vasyl’kivtsi village, where its headquarters are located, wages that compare favorably to local norms. In the which will benefit workers and the local community. context of high levels of labor migration from Ukraine,197 The company has also invested in childcare solutions to these jobs provide women and men with the choice to live support workers and their families. In 2010, Mriya built close to their families and with working conditions that en- a new kindergarten in Vasyl’kivtsi. The kindergarten, able them to combine work and family responsibilities. For open from 7.30 am to 7.30 pm, is available free of charge example, Luba, a local woman used to go abroad for work, to Mriya workers and local residents. Mriya pays for all but undertaking seasonal work for Mriya means that she running costs except electricity and staff salaries (who are can stay in the local area with her son and daughter. At employed by the municipality). Mriya also supports a kin- the same time, hiring practices and contractual conditions dergarten in Kyiv, where about 100 of its staff are based for seasonal workers are designed to provide as much cer- and helps workers’ children to participate in state-run tainty as possible, to make it attractive for workers to keep summer camps over the harvest season, the company’s returning to company over the harvest season. Seasonal busiest time of year, by publicizing the camp and process- workers are awarded contracts for at least six months; this ing applications. In selected cases of disadvantage, Mriya means that if they need to, they are eligible to claim unem- management provide subsidies for children’s camp costs. ployment benefits when they are no longer working. Finally, Mriya is providing new opportunities for women Mriya places a premium on creating a relationship of to gain a footing in the operational side of the business. trust and dialogue between workers and manage- In 2011, Mriya set up the “Ukrainian Agrarian School” ment, creating an environment in which all workers feel (AgriSchool) to address skills gaps identified among valued and able to speak up. Encouraging dialogue and agricultural science graduates through coursework and openness is particularly important for women who work field practice and build a pool of highly skilled prospective in those areas of the company that are more male-domi- employees. Selection of students is based on merit and nated, such as the mechanization, storage and IT depart- the studies are entirely financed by Mriya. Traditionally, ments. Women workers at all levels appreciate the com- agricultural courses in Ukraine attract only a very small pany’s positive attitude towards the workforce and note number of women and the school so far has attracted that they feel comfortable to raise any issues or concerns primarily male students: of the 22 students who attended informally with supervisors or through company grievance the first AgriSchool, three were women. However, Mriya mechanisms. In particular, female workers voiced their hopes that the AgriSchool will become an exception to this rule. Importantly, the AgriSchool is headed by a 197 See, e.g., International Organization for Migration, Migration woman and, as part of the school’s communications in Ukraine: Facts and Figures, 2011: http://iom.org.ua/en/pdf/ Facts&Figures_b5_en_f.pdf with prospective students, female students are actively Annex B: Company case studies 83 encouraged to apply. The most successful student to the owners’ firm belief in supporting families and enabling date has been a young woman who was subsequently women to combine work with having children. hired as a specialist in Mriya’s Seed Department. Attracting the right staff and maintaining the company’s status The Business Benefits as an employer of choice A key business challenge for Mriya is attracting and Recognising that workers are central retaining reliable and talented staff so as to minimize staff to the company’s growth strategy turnover and associated productivity losses. This is an Mriya is keenly aware that the company’s success is under- issue at all levels of the organization: due to high levels pinned by the skills and commitment of its workforce, and of labor migration, even unskilled workers have been it is widely recognized within the company that “em- leaving Western Ukraine in search of better jobs abroad. ployees are the key drivers of Mriya’s profitability The Ternopil region has been particularly affected by this and prosperous growth.” Not surprisingly then, Mriya trend: it has one of the highest levels of labor migration in considers that investing in good working conditions and Ukraine.201 The incentive for motivated workers to migrate career development for all of its employees makes good means that, from Mriya’s point of view, it is important business sense—particularly in the context of the com- to be viewed as an employer of choice in the local labor pany’s expansion. market. In this context, demographic trends in rural western One of Mriya’s top human resource challenges is attract- Ukraine—very high emigration rates,198 a decreasing ing highly qualified workers for field operations, including overall population199 and a 10 year shorter life expectancy its laboratory, seed plant, logistics unit and sales depart- for men than women200—are seen as an important driver ment. This is partly because of the practical skills gap for investing in employees. Most emigrants leave Western amongst university graduates and partly because many Ukraine in search for better jobs and higher living stan- talented graduates are reluctant to work in rural areas. dards in Western Europe. Thus, although Mriya is located In this context, it makes business sense to widen the in areas of high unemployment, it may still have problems pool of prospective employees by encouraging talented recruiting and retaining good staff, because such workers young women—as well as men—to apply to study at (particularly more mobile male workers) might consider the AgriSchool. Mriya is closely monitoring all direct and leaving the region altogether. indirect costs of the project against projections, as well as evaluating the cost of employing one AgriSchool graduate Mriya therefore considers that providing attractive work- and the additional value the company gets from one stu- ing conditions and skills development in order to dissuade dent employed. While it is too early for a full cost-benefit good workers from migrating is vital to ensuring the analysis, anecdotal evidence to date is encouraging. profitability and sustainable growth of both the company and the communities in which it invests. This includes There is evidence to suggest that Mriya is meeting with paying attention to the management and development success in becoming an employer of choice: in the 2010, of women workers, who, as a result of current demo- Ernst & Young Ukraine’s annual Best Employer Survey of graphic trends in Ukraine, are an increasing majority of its potential recruits. This business rationale also tallies with 198 International Organization for Migration, 2011, op cit 199 Since Mriya started operations in 1992, Ukraine’s population has fallen from 52.2 million to 45.6 million: http://ukrstat.org/en/ operativ/operativ2007/ds/nas_rik/nas_e/nas_rik_e.html 200 UNICEF Transmonee database, Country profile – Ukraine, 2012. 201 Ibid. 84 Investing in women’s employment: Good for business, good for development university graduates, Mriya ranked 74th and in 2011 the levels 1-5), an extra 1 percent in permanent staff turnover company was ranked 35 . th 202 per year would cost the company US$45,167. The benefits of low staff turnover apply equally to Reducing staff turnover in the context seasonal workers: Mriya considers it important to offer of expansion terms of employment that ensure a core of returning sea- Mriya considers that attracting the right workers is critical, sonal workers. Each new season, seasonal workers from but retaining reliable and talented staff across all sections the previous year are offered a new contract: in 2012, of the business is just as—if not more—important. In Mriya achieved a “return rate” of seasonal workers of particular, having a strong and dependable core workforce about 75 percent. has been invaluable to Mriya during its expansion phase in terms of maintaining institutional know-how and provid- Building strong relationships with the ing stable foundations from which to grow the company’s community productivity levels. Within Ukraine, access to land is a critical factor for agri- At the same time, Mriya calculates that keeping turnover business companies. As such, the company’s reputation down provides significant savings for the business, par- in the region as a good employer and corporate citi- ticularly in the context of its recent expansion, which has zen is important for the companies’ expansion program, involved significant outlays on recruitment and training. In which depends on securing viable clusters of land leases this context, minimizing employee turnover is a key part from a large number of owners of small land plots. Put of Mriya’s human resource management strategy: offering simply, if these smallholders regard Mriya as a responsible greater certainty of employment helps to build commitment company that provides good, secure, local jobs and puts and loyalty from workers at all levels of the organization. some of its profits back into local communities, they are more willing to lease their land to Mriya. Mriya has achieved impressive workforce retention rates. Current annual staff turnover is 4 percent (down As such, Mriya places great importance on its engagement from 5 percent in 2009), with turnover of female staff par- with the community. It makes sound business sense for ticularly low (currently at 1 percent, down from 2.1 per- Mriya to invest not just in good working conditions, but cent in 2011 and 2.2 percent in 2010). Any spike in staff also into making the local communities better places turnover could prove costly for the company, as Mriya to live for workers and their families. The company estimates that that the average cost of replacing a skilled sees its investment in people and communities as an operations worker is approximately UAH 12,000 ($1,478). important factor to attract investors and financiers such (This is based on an average salary of UAH 5,000 ($616) as IFC and EBRD, which in turn is vital for sustaining the and taking into account the average costs of readvertising, company’s expansion program. recruitment and training of the newcomer as well as the Mriya’s owners have a clear preference for investments that fact that during first three to six months the newcomer benefit women and families, not only because this reflects is estimated to perform at only 60-70 percent efficiency the owners’ own values, but also because they see the de- whilst receiving a full salary.) In the context of a workforce population of rural Ukraine and the shrinking numbers of with 3,056 skilled permanent employees (qualification men due to rising mortality rates as real long-term business challenges to the company’s strategic human resource man- agement goals. For example, in the absence of satisfactory 202 In 2010, 2,179 students from approximately 60 universities in Ukraine were asked to name the top three companies where childcare provision in the local area, the rural kindergarten they would like to work (with the most attractive employer is a keystone of Mriya’s community investment program, in first place). The questionnaire offered no defined list of companies and students could indicate any companies they given its obvious benefits for company workers and the wished. See: www.ey.com/UA/en/Newsroom/News-releases/ Press-Release---2010-11-23 wider community. In addition, the program finances Annex B: Company case studies 85 improvements to local infrastructure such as roads, water other local companies that advertise for men or women to and gas supply, street lighting, community and leisure cen- fill particular positions, Mriya keeps its job advertisements ters, classroom equipment for local schools, etc. strictly gender-neutral. The company’s total expenditure on community invest- Until recently, the company did not see the need to make ment was US$550,333 in 2011 and US$ 357,370 in 2010. special efforts to overcome traditional job segrega- Given that the company sees a close causal link between tion along gender lines, because its operations in- community investment and successful business growth, cluded both typically “male” and typically “female” jobs. the business benefits of community investment are consid- However, the early results of the AgriSchool project, which ered to largely outweigh the cost. involves skills development in a traditionally “male” area, suggest that a shift is underway, given Mriya’s active en- couragement of women to participate in this program. In Lessons learned addition, the outstanding performance of the first female Mriya strongly believes that the company’s women- and student to be recruited from the AgriSchool is setting a family-friendly HR policies and practices have been very visible example that women can excel in tradi- key to the company’s success. Mriya’s experience shows tionally male-dominated occupations and contribute that policies that support women do not have to be to the success of the business. The positive impact of this women-only policies, and may indeed be valued by male example is magnified by the fact that the AgriSchool is a staff too.203 Many of the company’s policies simply repre- high profile initiative for the company. sent good people management, which is good for both women and men. For example, to keep retention low, Mriya conducts exit interviews with all departing employees Conclusions to establish the reasons for resigning, and feeds the results As Mriya has expanded, it has confronted significant de- back into its HR strategy. A comprehensive staff survey is mographic changes as well as the decline of the formerly being planned in order to better gauge satisfaction levels. state-run support structure for workers with childcare/ family responsibilities. These changes meant that sup- Nevertheless, while many of the company’s policies do not port for women workers and families became more exclusively target women, they are particularly valued by important than ever in order to attract and retain women. Amongst other things, the company’s empha- a stable, quality workforce. Mriya intends to build on sis on full compliance with gender equality-related successful initiatives in future, e.g., by building another statutory requirements (such as maternity/parental leave kindergarten in the production area, and by conducting and non-discrimination in recruitment) is highly valued a comprehensive staff survey so as to gauge how it can by staff and seen as an advantage over other employers. make the company an even better place to work. Many Ukrainian employers are reportedly reluctant to hire women aged 22 to 30 years as they expect women The case of Mriya shows that investing in good, women- of this age to have children and take up to three years friendly working conditions, related community infrastruc- of maternity and childcare leave. However, in 2010 and ture and services, and staff development can be essential 2011, over a third of all women recruited by Mriya were to create long-term competitiveness and sustainable under 28 years old, showing that the company scrupu- business growth. This business rationale combines with lously applies is anti-discrimination policy and supports the some of Mriya’s core business principles—equal opportu- recruitment of women of child-bearing age. Unlike many nity, education, families, work-life balance, stability and sustainable rural communities—which reflect the owners’ 203 One example is a male employee who commutes daily between personal values and have informed the company’s ap- Ternopil city and the company headquarters in Vasslkitsky. He proach since its inception. takes his young child with him and leaves it at the kindergarten in Vassilkitsy while he is at work. 86 Investing in women’s employment: Good for business, good for development Nalt Enterprise, Vietnam—garment manufacturing Investing in better conditions for women and their families can deliver impressive returns for business. Company background Nalt Enterprise is an export garment factory located in Binh Duong province, near Ho Chi Minh City in Vietnam, and co-owned by four partners. Established in 2003, the company has grown over time and has manufactured gar- ments for a range of top international brands, including Ann Taylor, Gap, Target and Columbia. As of June 2012, Nalt Enterprise employs nearly 650 workers (of whom ap- proximately 85 percent are women) and produces around 4,000 to 5,000 pieces of clothing each day. Nalt Enterprise operates in a dynamic industry: the gar- Nalt childcare centre, Vietnam. Photo: Kirsten Newitt ment sector in Vietnam has flourished over the past 10 years, to become the country’s top export earning sector. In this context, Nalt has identified a strategic advantage: In 2011, total export earnings derived from the textile investing in better working conditions and better relations and garment industry reached US$15.6 billion, making with its workforce. This is evidenced by Nalt’s participation Vietnam one of the world’s leading garment and textile in the Better Work program, which it joined in 2011. For suppliers.204 Importantly, the sector has now become the supplier factories like Nalt, participation in the Better Work largest source of formal employment in Vietnam, provid- program can help consolidate their relationships with ing jobs for more than 2 million people.205 international buyers and contribute to higher productivity However, the sector is extremely competitive and garment and product quality through improved compliance with factories must work hard to sustain their business success. international labor standards. Many firms—including Nalt—have felt the impact of the global financial crisis, with reductions in orders from European and North American buyers. At the same time, How Nalt supports women Vietnamese export factories are facing stiff competition from other countries in the region, such as Indonesia, and workers profit margins are being squeezed by high inflation, wage Nalt offers a number of benefits to its workers that go increases, strikes and staff turnover. beyond statutory requirements and help to make it an employer of choice in the local area. Some of these ben- efits are particularly attractive for women workers, who continue to maintain primary responsibility for childcare. 204 Better Work, Garment Industry: 4th Compliance Synthesis Report – Vietnam, 2012: www.betterwork.org/sites/VietNam/ English/resources/Documents/Better%20Work%20Vietnam%20 In 2008, Nalt built a kindergarten next to the factory for -%204th%20Compliance%20Synthesis%20Report.pdf; workers’ children aged 2 to 5 years. Workers can place Vietnam Textile and Apparel Association (VITAS), “Garment exports rise sharply in 2011,” May 2012: www.vietnamtextile. their children in the center free of charge, which is staffed org.vn/en/news---event/domestic-news/10826/garment-exports- by qualified teachers and assistants and follows the state rise-sharply-in-2011/newsdetail.aspx 205 Better Work, ibid. curriculum. It also provides nutritious meals, clothing, Annex B: Company case studies 87 school bags and books for the children. The kindergarten Nalt also places a premium on creating and maintaining is open from 6:45 in the morning until 6:00 at night and a relationship of trust and effective communication sometimes later, when the factory is particularly busy and between workers and management. In particular, Nalt workers are working overtime. In addition to the kinder- has found an effective means of providing workers with a garten, the factory has introduced a program to support direct line to management through regular meetings be- workers’ children who have reached school age, by paying tween factory workers and the company director. At these children’s annual school fees (approximately US$20 for meetings, which generally take place once a month, the each child), up to and including university. company director speaks to all workers about any changes in company policies that affect workers, wage increases, The company has also set up an accredited health clinic the company’s performance and the production schedule, for workers and their families, which provides free including the number of orders placed by buyers. Workers —including general check-ups, ultrasound medical care­ say that this opportunity for information-sharing and scans and dental care—as well as free medication. Whilst consultation helps them to feel more actively engaged in all Vietnamese factories with more than 50 workers are the life of the company. required to have a medical room with a nurse, Nalt’s medi- cal services for its workers go well beyond the statutory Importantly, the director’s meetings enable the direc- minimum. Since 2007, Nalt’s clinic has been registered tor to flag in advance any changes in working time, with the national health insurance scheme and attended particularly any extra overtime hours, so that workers can by a doctor, dentist and two nurses. plan and make adjustments to their family responsibilities or childcare arrangements accordingly. In general, workers said that they enjoyed the predictability of working hours at Nalt, as well as the manageable amount of overtime Better Work is an innovative global partnership programme of the International Labour Organization compared to other factories, which make it easier to man- (ILO) and IFC. The programme was established in February age childcare and family commitments. 2007 to help address the challenges faced by actors in global supply chains, including international buyers keen to ensure compliance with labour standards in their supply chains and enterprises looking to increase competitiveness The business benefits in order to maintain access to global markets. Nalt’s owners stress that these initiatives were not motivat- Better Work is operational in several countries, including ed by profit, but rather by a desire to re-invest some of the Vietnam since 2009. As in its other countries of operation, the Better Work programme in Vietnam conducts profits of the business in a way that would make a positive enterprise assessments and offers customised advisory and contribution to the lives of workers by investing in work- training services to factories to address their individual ers’ health and their children’s education. Nevertheless, needs. Nalt acknowledges that workers are a fundamental As of June 2012, 158 factories have joined Better Work part of the factory’s business model and providing Vietnam, covering 166,447 workers, of whom 77 percent are women. By 2014, participation is expected to grow to good working conditions for workers makes good 375 factories. Over 45 international buyers and retailers business sense. In many ways, the working conditions are currently participating in Better Work Vietnam, provided by Nalt are a win-win situation for both work- sourcing apparel for some of the world’s best recognised brand names including Levi Strauss & Co, adidas, Gap, ers and management: Nalt considers that the positive H&M, Nike and Wal-Mart. outcomes may be difficult to measure, but emphasizes the importance of taking a long-term perspective. 88 Investing in women’s employment: Good for business, good for development Attracting and retaining motivated and workers, depending on the status of their local residence skilled workers is key to running permit (ho khau), it can be difficult to find a place for their a successful garment business children in public kindergartens.207 Nalt’s kindergarten Employee retention has become an increasingly impor- means that its workers have more choices about how to tant consideration for employers in the garment sector. bring up their children. Competition between factories to recruit and keep the Seven out of ten of Nalt’s workers are between 20-29 years best workers is increasingly tough, as industrial zones old and only one in ten are between 18-20 years. While continue to spread throughout Vietnam, enabling mi- many garment factories employ a larger share of younger grants to work closer to home and avoid the high cost of childless workers who are particularly mobile and attracted living associated with urban areas. According to a 2009 to the additional earnings resulting from large amounts of World Bank enterprise survey, 11.9 percent of firms in the overtime, Nalt’s business model involves forward plan- Vietnamese garment sector identified skills shortages as a ning rather than over-reliance on last-minute overtime. In major constraint on growth.206 this context, the relative stability of Nalt’s workforce is a Nalt estimates that it takes up to three months before competitive advantage against its competitors. Even though newly hired workers reach full productivity, and train- that was not Nalt’s motivation for introducing childcare ing the new workers additionally costs time of existing ex- services, focusing on women workers with families, and perienced workers. On this basis, the cost to the business providing benefits which are particularly attractive to them, of replacing and training a new worker is significant—just is a good complement to Nalt’s production strategy. under US$500 per worker, based on productivity losses due to the “learning curve” and opportunity costs of Managing illness related absences trainers’ time. This means a reduction in staff turnover Together, the kindergarten and health clinic have contrib- results in real cost savings: a 10 percent reduction in staff uted to a steady downward trend in worker absentee- turnover would save the factory US$32,000 in one year. ism. As Ms Trang Phan, the factory’s Managing Director, Nalt recently upgraded its production strategy towards observes, “When workers’ health is good, there are producing fewer but higher value items, making reliability benefits for the business as well”: regular check-ups at the and quality even more of a factor in its business success. clinic mean that workers are healthier and less likely to In this context, the kindergarten and health clinic play an take time off for illness or to visit the doctor. Whilst important role in encouraging many workers to stay on a visit to the doctor in a nearby town might mean that at the factory, particularly women workers with children. a worker needed to take a half day off, the presence of This helps Nalt to save money on recruitment and training the clinic means that check-ups can be carried out within costs, whilst maintaining steady production levels. Since 30 minutes. Similarly, workers need less time off for their the kindergarten was launched, average monthly children’s illnesses, given that children can visit the factory employee turnover rates have fallen by a third. The health clinic. In general, women workers at the factory kindergarten has proved to be an increasingly popular say that knowing that their children are well cared for and service: since its opening in March 2008, the numbers of close by gives them peace of mind during working hours. children in attendance have nearly doubled from 58 to The kindergarten also makes it much easier for workers 110 in 2012. The kindergarten is particularly convenient to agree to overtime, as their children will be cared for for migrant workers from other provinces, who live far whilst they work extra hours. from their homes and cannot call on their extended family to care for their children during the working day. For these 207 UNDP, Social Services for Human Development: Viet Nam Human Development Report, 2011, pp 82-83: www.undp. 206 Cited in G. Pierre, Recent Labor Market Performance in Vietnam org.vn/digitalAssets/27/27099_902_UNDP_Final_Low_ through a Gender Lens, World Bank working paper, 2012, p 11. res_190112.pdf Annex B: Company case studies 89 In 2007, when the clinic was launched, the average daily Nalt attributes the absence of strikes in the factory to absenteeism rate was 3.68 percent: by 2008, when the good working conditions and the culture of dialogue be- kindergarten started operating, the rate had fallen to 2.9 tween management and workers. This includes manage- percent and then dropped further to 1.8 percent in 2011, ment’s commitment to “keeping their word” to workers an overall reduction of 50 percent. Whilst this reduction and following through on commitments. Workers also over time cannot be attributed solely to the kindergarten appreciate receiving information about company mat- and health clinic—Nalt also introduced other measures to ters directly from the highest level; for example, workers bring down absenteeism, including an increase in atten- appreciate receiving information about any fluctuations in dance bonuses—Nalt considers that they are contributing orders, including notice of increases or reductions in over- factors. time, well in advance. In general, there is a strong sense of community both amongst the workers and between In particular, the health clinic has brought considerable workers and management. benefits to both the factory and workers. Importantly, the ongoing costs of the health clinic are subsidized, con- tributing to its sustainability: because the clinic has been officially recognized by the local health department as a Lessons learned healthcare provider, the clinic can apply to the national For the company’s owners, the extra benefits that Nalt health insurance scheme for reimbursement of 70 percent provides to workers help them to feel pride in their busi- of medication costs. ness. Whilst they consider that the kindergarten and health clinic contribute to positive business outcomes, these initiatives also provide a healthy business model that Good Employee Relations and Industrial Peace incorporates both commercial success and investment in the well-being of workers and their children. A major pay-off from Nalt’s efforts to maintain open dia- logue with its workers has been a sound understanding of One of the most important lessons that Nalt has learned workers’ issues, allowing the company to address worker over time is the value of listening to workers. Whilst grievances early on before they escalate into broader spending time with individual workers can be time-con- industrial tension. This means that there have been no suming, Ms Trang observes that positive engagement with strikes at the factory since its establishment. This is workers is ultimately invaluable for building loyalty and particularly significant given the recent spike in “wildcat” ensuring social cohesion and harmony within the work- (unofficial) strikes in Vietnam: in 2011, there were an es- place. Workers appreciate this approach, which contrasts timated 857 strikes—an average of 16 per week—which strongly with the purely production-focused approach more than doubled the rate from 2010.208 Binh Duong adopted by many other factories. province alone has seen 30 strikes in the first half of 2012, nine of which took place in the garment sector. Most of One of the main difficulties in operating the kindergarten these strikes last for five days, costing factories thousands and clinic has been attracting professional staff to work at of dollars in lost production. Low levels of industrial ac- the site on a long-term basis, given its distance from Ho tion, combined with a relatively low rate of staff turnover, Chi Minh City. To address this, Nalt offers good terms and have provided Nalt with cost-savings and the certainty it conditions to the professional staff and tries to accommo- needs to plan its production schedule in advance. date their particular needs as far as possible. For example, the factory has agreed to a flexible working week with the resident dentist, so that he can also attend a clinic in Ho Chi Minh City. As a further incentive, the factory reviews 208 VietnamNet Bridge, “The number of strikes in Vietnam has their salaries annually and provides attendance bonuses doubled in 2011,” January 2012: http://english.vietnamnet.vn/ and travel allowances. en/society/17535/strikes-double-in-2011.html 90 Investing in women’s employment: Good for business, good for development In general, the costs associated with the health clinic and the kindergarten have become more difficult to bear in the context of difficult economic circumstances brought about by the crisis and high levels of inflation. However, Nalt is committed to its current business model and con- siders that the benefits outweigh the costs, even in the current economic climate. Conclusions The garment sector is a highly competitive industry. In the face of ongoing challenges, Nalt is convinced that it has found a winning formula for sustainable business. The company sees its expenditure on workers as investments, and consider that the long-term benefits far outweigh the immediate costs. Women workers at Nalt Enterprise, Vietnam. Photo: Kirsten Newitt Annex B: Company case studies 91 Odebrecht, Brazil—construction Inclusive training program helps Brazilian EPC contractor meet skilled labor needs, whilst providing women with a foothold in the construction industry. Company background Odebrecht is a global construction company founded in Brazil in 1944. By the late 1970s, the company had estab- lished itself as a leader in its sector. During the following three decades, the company continued to grow and ex- pand its international operations, diversifying its business- es particularly in the petrochemical sector. In recent years, Odebrecht has expanded its activities to other areas such as bio-energy, environmental engineering, oil and gas, real estate, logistics and transport, defense and technology, and naval construction. The consolidated gross revenue grew to US$37 billion in 2011, an increase of 31.7 percent Female carpenters working on Odebrecht’s Santo Antônio site, Porto Velho, Brazil. Photo: Kirsten Newitt from the previous year. Today, the group has operations in 22 countries and four continents, exports to 56 countries, Odebrecht is currently leading the building consortium and employs people from over 60 different nationalities.209 that is constructing the Santo Antônio hydro-electricity Globally, the engineering and construction company plant near Porto Velho in the remote north-west region of directly employs 130,000 workers. Brazil, a US$7 billion project. Construction of the Santo Antônio plant began in September 2008 and, when The scale and complexity of the projects run by Odebrecht complete, it will be one of Brazil’s largest hydro-electricity throw up a number of logistical challenges, many of plants. Power generation will be phased in over the course which are related to setting up temporary sites with of construction: the first turbines commenced operation large workforces, often in remote areas, and the need in March 2012 and all turbines will be fully operational to complete projects to a high standard within defined by November 2015. Odebrecht is a shareholder of the timeframes. In terms of human resource management, consortium that will operate the plant once it is com- this requires significant organizational flexibility and pleted, providing a particularly strong incentive to get the resourcefulness, including techniques for the efficient construction finished in time. recruitment, training and management of large num- bers of workers. At the same time, creating and main- taining a positive relationship with the local communities in the areas where Odebrecht works is critical to ensure Ensuring a supply of skilled labor broad social acceptance of the company’s presence and for the Santo Antônio hydro- operations. electricity plant From its conception, one of the major challenges associ- ated with the Santo Antônio project was the need to 209 Odebrecht, Annual Report 2011/12, online version, recruit thousands of workers over a relatively short 2012: www.odebrechtonline.com.br/relatorioanual/2012/ period of time. To meet its ambitious work schedule, en/05_indicadores_es.php 92 Investing in women’s employment: Good for business, good for development the company needed to recruit a large number of skilled workforce for the Santo Antônio project from the local workers to work on the site: up to 18,000 by the second area. Nevertheless, the study estimated that there was a year of the project. To meet these labor requirements, pool of approximately 25,000 unemployed women and Odebrecht had to choose between recruiting skilled work- men in Porto Velho (total population: 435,000), who—if ers from elsewhere in Brazil and flying them to the site, provided with the right training—represented a poten- or creating a local supply of skilled workers by developing tial source of labor for the project. At the same time, training programs. Odebrecht’s strong preference was to very early community consultations suggested that local recruit as many workers as possible from the local area, on people were eager for the chance to be involved in the the basis that it would strengthen the local community’s construction site. This unique set of circumstances inspired sense of engagement with the project and would be more the company to launch a major new training program— cost-effective than flying thousands of workers in from Acreditar (“Believe”)—with the goal of recruiting at least other parts of Brazil. 70 percent of the Santo Antônio workforce locally. During the scoping phase of the project, a study of the local labor market indicated that, based on Odebrecht’s then-standard approach to recruitment and training, the Skills training for women and company would only be able to source 30 percent of the men workers Launched in January 2008, Acreditar was designed to give local workers without construction experience the skills Acreditar: the two-part programme that they needed to apply for a job on the Santo Antônio 1. Company induction: This is compulsory for all local site. The program will remain in place until the project’s job applicants (operational and non-operational positions end, but the numbers of places available will diminish alike). Delivered over 32 hours, the induction training progressively as construction on the site nears completion. covers a range of areas, including health and safety, natural The program set out to train a larger group of workers environment, quality control and workplace behaviour. This training has been provided to over 42,000 workers, of than the company needs to work on the site, creating which nearly 30,000 have been hired by the company. a deeper pool of skilled labor in Porto Velho: this allows 2. Technical training: This is additional training for those Odebrecht greater choice in recruitment, whilst also build- who wish to work in specialised fields such as rigging, ing the skills profile of the region. masonry, carpentry or operation of heavy equipment. Depending on the category, these courses involve between The Acreditar program has two main components—basic 32 and 200 hours of training. induction and technical training—all of which is delivered Since its inception, Acreditar has provided technical in-house (see box). Workers who complete the techni- training to over 11,500 workers so that they can become: cal training module gain generic construction skills that • Masons are readily applied to other sites. However, not all skilled • Carpenters • Riggers workers on the site are required to undertake formal tech- • Welders nical training: for less specialized operational positions, on • Off-road truck drivers the job training is provided. • Dump truck drivers In its initial stages, Odebrecht publicized the program • Bulldozer operators during an extensive series of community consultations and • Mechanics • Electricians through a publicity campaign that targeted community • Hydraulic excavator operators organizations. Training commenced eight months before • Front end loader operators the company started operations, ensuring that there was a pool of suitable candidates as soon as the company was Annex B: Company case studies 93 ready to begin recruitment. Training and materials are earns R$2900 monthly (plus health insurance and bonuses provided free of charge. for meeting performance targets), well over three times as much as in her previous job earning R$800 monthly at a Whilst Acreditar did not involve women-only training or beauty salon. targets, from the outset Odebrecht was determined that the program should be as inclusive as possible. This was important both to meet the company’s labor needs, as well as to maximize the community outreach Benefits for Odebrecht achieved through the program. As such, all communica- For Odebrecht, it is clear that there have been numerous tions with the community emphasized that both women business benefits associated with increased numbers of and men were eligible to participate in Acreditar and then women on site, even if many are less tangible. According apply for work on the construction site. Nevertheless, to the site director, Délio Ives Gomes Galvão, “the value Odebrecht was still surprised that over one in ten training doesn’t lie in a strict cost-benefit analysis, but in the posi- applicants were women, resulting in a higher than aver- tive psychological effect brought about through higher age proportion of women in operational positions on the levels of diversity on the site.” The company emphasizes site. Additionally, some women started working in other that the fact that these benefits are difficult to quantify more traditionally female areas on the site, such as clean- does not make them less important; indeed, some of the ing or kitchen services, but subsequently transitioned into benefits, such as meeting skills needs and garnering the operational positions through on-the-job training. acceptance of the local community, are absolutely pivotal to the success of the project. The outcome is that women have represented a steady 10 percent of workers on the site since the project’s Broadening the local labor pool by beginning, compared to an estimated Brazilian indus- training and recruiting both men and try average of around 3 to 5 percent.210 The figures are women slightly higher for the sites electro-mechanical division, Whilst the Acreditar program has brought significant where work is more likely to focus on precision tasks and gains for the local community, including new employment less likely to require heavy lifting. The tasks that women opportunities for local women, the initiative was first and now carry out include operating heavy machinery, driving foremost designed to meet the needs of the business; heavy trucks, welding, masonry and carpentry and carry- i.e., creating a pool of skilled labor to work on the Santo ing out technical electro-mechanical tasks. Antônio site. As noted by Délio Ives Gomes Galvão, the Working on the Santo Antônio site represents a radical site director, “Acreditar is the instrument that links the career change for many local women, who were previ- needs of the company with the needs of the labor mar- ously unemployed or engaged in much more traditional ket.” Odebrecht’s emphasis on inclusiveness was an es- female occupations such as domestic workers, shop assis- sential ingredient in the program’s success: in the context tants, waitresses or manicurists in beauty salons. For these of needing to recruit thousands of workers within a short women, work on the site represents a major opportunity space of time for the Santo Antônio site, it would have to gain new skills and earn more money through work- been highly inefficient for Odebrecht to disregard half of ing in construction jobs that were traditionally reserved the local population (women). In the end, Odebrecht was for men. For instance, Samara—a bulldozer driver—now able to exceed its initial goals and recruit 80 percent of the workforce from the local area. 210 Figures from the 2009 Brazilian household survey (PNAD), which cover informal and formal employment in sector suggest less Whilst the cost of the program has been significant— than 3%, while managers on the Santo Antônio site considered R$18.4 million (US$9.0 million) in the Acreditar program the figure to be closer to 5%. See: www.ibge.gov.br/home/ estatistica/populacao/trabalhoerendimento/pnad2009/brasil_ over five years—this is still cost-efficient in the context of defaultpdf_trabalho.shtm 94 Investing in women’s employment: Good for business, good for development a large workforce. To date, the cost of training one local Improvements in productivity worker has been R$624 (US$304), compared to R$5760 Timeliness is a key performance indicator: achieving high (US$2809), the average annual cost of providing home levels of productivity and sticking to project deadlines are visits to non-local skilled workers (a standard benefit for critical to ensure that the plant starts generating electric- skilled workers recruited to work in remote areas). This ity according to schedule. Managers consider that having means that the investment costs are outweighed by an- more women on site makes a positive contribution nual per capita savings by a ratio of around 9:1 (with- to productivity: managers observe that men learn from out taking into account the less tangible benefits of the seeing that women sometimes do the same job differently, program). At the same time, Odebrecht considers that the whilst women are spurred on to achieve more in an indus- know-how it has gained through Acreditar on running try that is traditionally male-dominated. For Odebrecht, local skills development programs gives it a competitive it is important to emphasize that any resultant improve- edge over other firms in the industry. ments in productivity are not necessarily the result of men or women working better than each other, but rather the Engaging more deeply and effectively fruit of greater diversity in the workplace. with the community Nevertheless, the women on site have proven that Odebrecht’s inclusive approach to training has also they have what it takes to work in construction and enabled a deeper engagement with a broader cross- can deliver the same, if not better, results than men. section of the community, including more women. Whilst women workers across the site have been prov- This engagement is understood as a key business benefit ing their capacity for hard work, the company has been and a source of competitive advantage for Odebrecht. By particularly impressed by the results that women have opening up new prospects for skills training and employ- achieved in the assembly of the plant’s bulb turbines, ment, the company has given the local community a much where high levels of precision and attention are critical greater stake in the success of the project. Moreover, by for avoiding delays and ensuring the ultimate efficiency training a larger number of workers than the project actu- of the turbines. For example, one team comprised of 70 ally needs, the company not only gives itself choice in re- percent women and led by a woman supervisor managed cruitment but also creates an opportunity to raise aware- to complete their turbine assembly task in 35 percent less ness of the project amongst a larger pool of people, even time than another team that was led by a male supervisor if they do not go on to work on the site. According to with a majority of men (60 percent) in the team. Gabriel Azevedo, Director of Sustainability for Odebrecht Energía, “Acreditar is a far more powerful approach Having more women in the workplace has also translated to community engagement than holding meetings into better retention figures in some parts of the site. and allows continual interaction between project For example, employee turnover figures for women have developers and communities.” been lower than men’s: in the electro-mechanical assem- bly division, the employee turnover rate for women has For Odebrecht, strengthening the quality of engage- been 3.4 percent per year compared to 5.33 percent for ment with the local community is at least as important men. Good retention rates are important for Odebrecht, in as addressing skills shortages: where insufficient time is great part for productivity reasons: the company can ben- invested in community engagement, there is an increased efit over a longer period from the investment in training risk that large infrastructure projects may be delayed provided to workers and avoid any dips in productivity as community protests, strikes or law suits. The company a result of new, inexperienced workers coming on the site. considers that the business benefits arising from enhanced community engagement are largely “intangible,” but nonetheless absolutely crucial to the project. Annex B: Company case studies 95 Improving workplace culture workers on the site, proving themselves was a question Managers observe that the presence of men and women of patience and determination: they say that it took a working side by side on construction sites represents a few months before their male co-workers accepted that positive change for the working environment at Santo that they were up to the job. After working with women Antônio, not to mention the industry more generally. Many on the site for some time now, managers and supervisors consider that having a higher proportion of women on emphasize that they now look for “results, not gender” the site helps to create a more respectful environment that and are quick to praise women for their hard work and is appreciated by both men and women. For example, a achievements on the site. number of managers observe that there is less “machis- Given that many of the men and women on the site were mo” on teams with more women and a healthy blend of not used to working together, Odebrecht considers that it competition and cooperation between team members. was important to set ground rules for men and women on This also includes improvements in attitudes towards appropriate behavior. This was done through the material health and safety. Managers say that women tend to take inserted into Acreditar, such as general training on ap- a safer approach to their work and equipment operation propriate language, interaction and clothing, and gender than men, leading to fewer accidents and injuries and awareness modules were also incorporated into monthly more careful use of equipment. supervisor training sessions. Senior managers also played an important role in setting the tone for interactions between men and women on site and ensuring the all Building a progressive reputation workers were aware that non-compliance with the rules Odebrecht sees itself as a progressive company and break- would not be tolerated. ing down barriers to women’s employment is becoming an important part of this self-image. According to Leonardo The experience at Santo Antonio has also demonstrated Borgatti, Director of Civil Works at Santo Antônio: the importance of appointing women to leader- “Progress on women’s employment is part of being a ship roles and providing support for role models for forward-looking company; this is something that can women. Odebrecht has established a good record in this help to set Odebrecht apart from its competitors.” respect on the Santo Antônio site: 34 percent of the total This is important in Odebrecht’s relationships with range female workforce has received promotions (compared of stakeholders, including investors, communities and to 24 percent of men). Odebrecht considers that having prospective and current employees. The project’s achieve- women in management is another important dimension ments with respect to women’s training and employment of change and helps to adjust behaviors and attitudes. For were of particular interest to the Brazilian president, Dilma example, within the electro-mechanical assembly team, Roussef, when she visited the site in April 2012. one of the women supervisors has assumed a leadership role for women across several teams, acting as a female role model, mentor and contact point for specific griev- Lessons learned ances and concerns. A higher than average number of women on the site was Odebrecht considers that the high participation of women not without its initial challenges, particularly for men who in the Santo Antonio site was the result of a unique com- had never worked with or supervised women. But for bination of factors: Antonio Cardilli, the site’s human resource manager, it was • Geography: The site is located close to Porto Velho, clear that “the obstacles were always about attitudes, a regional urban centre. This means that, from the not women’s abilities.” Many men, from the site all the beginning, there have been a significant number of way up to board level, were skeptical that women would local women who can attend training and work on the cope with such physically demanding work. For women 96 Investing in women’s employment: Good for business, good for development site without needing to move away from their homes sites. There are still physical demands associated with and families. This is important, as an unwillingness the job that mean not all women are able or willing to to relocate is considered to be a common factor that work on the site, but the possibilities have opened up. constrains many women from working on remote • Emphasis on social inclusiveness and equal oppor- construction sites. Odebrecht also provides transport tunity: At all times during the advertisement process to improve access to the site for local workers. for Acreditar, Odebrecht emphasized women’s eligibil- • Diversity of tasks: The scale and complexity of the ity for the program. site means that there is a wider range of tasks on site, The success of the Acreditar program in Porto Velho which immediately presents more opportunities for means that it has already been rolled out to other sites women (and men) who may not wish to work in jobs in Latin America and Africa.211 However, Odebrecht that involve more heavy lifting. In particular, the site has learned that women’s participation in the training provides opportunities for high precision work in the program has varied considerably, depending on the site electro-mechanical assembly division. location and local culture. • Changes in social norms: Both managers and work- ers observe that social attitudes regarding “women’s work” have changed considerably over the past 10 Conclusions years and are one of the key factors driving higher levels of female participation in the construction One of the clear lessons learned by Odebrecht through industry. High levels of economic growth in Brazil, launching the Acreditar program is that what is good combined with increased investment in infrastructure for women can also be good for the business. The development, have created shortages and new job program clearly demonstrates that if it is made clear to opportunities, and women have been ready to meet women that they are welcome and if women are provided this demand. with access to training opportunities, they will enthusiasti- cally embrace them and work on construction sites with • Changes in technology: Improvements in technol- the same dedication and competence as men. ogy, such as hydraulic gears on 10-tonne trucks, mean that there is now a wider than ever range of tasks One of the reasons that few women work on construction that women can comfortably perform on construction sites is that they lack the training and experience to do so: through the Acreditar program, Odebrecht has provided women in Porto Velho with a unique opportunity to acquire both. For Odebrecht, it is important to emphasize that women can perform construction work at the same level as men; however, it is equally important not to create unhealthy competition by pitting women and men against each other or creating unrealistic expectations of women’s performance. The most important thing is to show that men and women can work together successfully and productively on construction sites, resulting in benefits for the workers and the business. 211 Aside from Brazil, the other countries where Odebrecht has launched the Acreditar programme are Angola, Argentina, Colombia, Cuba, Guinea, Liberia, Mozambique, Peru and Women supervisor and workers on Odebrecht’s Santo Antônio site, Porto Velho, Venezuela. As of August 2012, these programmes have taken Brazil. Photo: Kirsten Newitt place on a much smaller scale than in Porto Velho. C A n n e x Bibliography Abdullah, S. N., Ismail, K. N. 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Contact Information 2121 Pennsylvania Ave., NW Washington, DC 20433 AskSustainability@ifc.org ifc.org/gender October 2013