CASE STUDY: GENDER- SMART SOLUTIONS REDUCE EMPLOYEE ABSENTEEISM AND TURNOVER IN SOLOMON ISLANDS CASE STUDY: GENDER-SMART SOLUTIONS REDUCE EMPLOYEE ABSENTEEISM AND TURNOVER IN SOLOMON ISLANDS Project Overview for 50 percent of controllable absence. IFC identified four factors that specifically affected women and were ■■ Care responsibilities: Caring for family is a key responsibility for female workers at SolTuna. Fifteen S major contributors to the high rates of absenteeism and percent of absenteeism is associated with caring for olTuna is the only tuna-processing facility in Solomon Islands, turnover. sick children or family members, and 44 percent a country where the tuna industry accounts for 18 percent of of resignation letters cited child or elder care as the gross domestic product.1 SolTuna’s remote location presents ■■ Financial literacy and cash flow: Only 14 percent of reason for leaving SolTuna. the company with significant operational and cost-management staff reported that they had money left the day before challenges. In particular, the costs of labor, shipping, and support- payday, with the rest of the workers often foregoing ing infrastructure in Solomon Islands—compared with competitors in a significant attendance bonus by selling their own Thailand and the Philippines—are higher, meaning SolTuna needs to goods, such as local fish, in the market instead of Gender-Smart Solutions reduce those expenses to remain financially viable. working their shift at SolTuna in the final days before their fortnightly paycheck. Since women hold primary SolTuna did not start with a blank slate on gender. When One of the costs that SolTuna can address is associated with its high responsibility for meeting household costs, they faced the IFC partnership commenced, the company already employee absenteeism and turnover, particularly among production particular pressure to take work that would provide had active non-discrimination policies and procedures staff—the majority of whom are women. To address this, IFC is working immediate payment. in place. However, following a detailed analysis, IFC and with SolTuna to implement a series of gender-smart initiatives, which SolTuna were able to design and implement a series ■■ Poor worker and family health: Thirty-eight percent are expected to help the company earn an additional $1.58 million of gender-smart solutions to address the root causes of all absences at SolTuna are due to sick leave, and through increased productivity and save $166,000 a year in reduced of controllable absenteeism and turnover, particularly a further 10 percent are due to “family problems” staffing and overtime costs. among female production staff. or gender-based violence (GBV). GBV affects 42 percent of income-earning women in the Solomon ■■ Financial literacy training: Training on financial Islands.2 literacy, household budgeting, and understanding Challenges ■■ Limited career prospects: While women make up the pay slips contributed to significant improvements in financial attitudes and behavior, as well as increased majority of SolTuna employees, they are concentrated SolTuna employs over 1,800 workers, 64 percent of whom are women. attendance by trainees. The number of workers in low-paying roles, holding 67 percent of operational Controllable absenteeism—employee leave not accounted for by who reported they consistently had available funds staff positions but only 14 percent of middle manager approved holiday, sick, or maternity days—averaged an exceptionally posts. Almost half of the women workers do not high 18 percent across SolTuna production workers. As a result, the believe they have fair opportunities to be promoted, company had to overstaff each shift and run overtime to complete which contributes to low morale and absenteeism. orders, thereby increasing costs and reducing productivity. However, For a more detailed review of the IFC-SolTuna IFC’s analysis found that just 20 percent of employees accounted partnership, see Investing in Women’s 2 Secretariat of the Pacific Community (2009). “Solomon Islands Employment in Agribusiness: Making the Family Health and Safety Study: A study on violence against women and 1 Harorimana, D. (2012). “Job Creation in the Tuna Industry of the Solomon Islands—A children.” Available at: http://countryoffice.unfpa.org/pacific/drive/Solo- Business Case at ifc.org/gender. Tentative Strategic analysis.” Available at: https://works.bepress.com/knowledgeispower/23/ monIslandsFamilyHealthandSafetyStudy.pdf immediately before payday increased to 31 percent from 14 percent, a 120 percent change. The Business Case PUTTING THE BUSINESS CASE INTO ACTION WITH IFC ■■ Increased wages of lowest earners: In early 2016, the As part of its engagement with SolTuna, IFC calculated Recognizing that equality of economic opportunity between women and SolTuna Employees Consultative Committee reached the financial gains associated with reducing controllable men drives productivity, profitability, and performance, IFC’s Gender an agreement to spend the entire 5 percent wage-bill absenteeism. These benefits included both the reduced Secretariat helps clients realize gender-smart solutions to their business increase approved by the Board of Directors on raises cost associated with overstaffing and the increased challenges. We work with clients to better manage talent in their for the lowest earning four grades, positions mostly productivity associated with a present and productive workforce and supply chains and to design products that tap the earning held by women. workforce. In total, the potential financial rewards for potential of the women’s market. Our motivating force is the knowledge applying gender-smart solutions at SolTuna are signifi- that when companies and people—no matter their gender—can reach ■■ New job opportunities: In addition, SolTuna target- cant. By reducing controllable absenteeism and bringing their full potential, families, communities, and economies can achieve ed women for recruitment in nontraditional but down overall absenteeism from an average of 18 percent sustainable growth and prosperity. better-paying roles, such as forklift drivers. When to 15 percent, the level considered most realistic, the their efforts at recruiting female apprentices or company stands to earn an additional $1.58 million fully credentialed drivers failed, they selected 10 and to save $166,000 a year. Benefits accrue to the women from the production line and brought in their company in three ways: own trainer. To date, two have been appointed to full-time roles as forklift drivers and a third serves ■■ Reduced staffing: covering benefits such as housing ■■ Reduced overtime: overtime resulting from unantic- as a back-up. This not only motivated the female and school subsidies for workers hired for overstaff- ipated employee absences costs the company workforce, but also allowed SolTuna to fill skills gaps ing purposes cost the company over $45,000 a year. $121,000 a year. in-house, a cheaper and more effective means than ■■ Increased productivity: Increased attendance would identifying new talent outside of the company. also increase the amount of fish SolTuna could process each day to 125 metric tons. Given current While SolTuna is initially focused on gender-smart solutions within the company’s direct influence, with IFC THE RESULTS tuna prices and assuming full production, this change could produce an additional $1.58 million in support the company also plans to explore other ways By reducing controllable absenteeism and bring- revenue a year. to support employees in their homes and communities, ing down overall absenteeism from an average of including through health interventions, care services, 18 percent to 15 percent, the company stands and enhanced support on GBV. to earn an additional $1.58 million through IFC’s advisory services to SolTuna were made possible through a grant increased productivity and to save $166,000 a from the World Bank’s Jobs Umbrella Trust Fund, which is supported year in reduced staffing and overtime. by the Department for International Development-UK AID, and the Governments of Norway, Germany, Austria, the Austrian Development Agency, and the Swedish Development Agency (SIDA). What the company says What workers say What IFC says (Gender-smart solutions ensure SolTuna) becomes a long-term I am very proud as a lady to be doing this job, never (having) Rigorous gender analysis helped SolTuna and IFC identify sustainable business supporting the local community and experienced any other women doing this job. My family supports a diverse array of solutions to absenteeism and turnover provincial economy, significantly boosting job opportunities in our me and is really happy about what I’m doing. challenges that otherwise would not have been apparent. community. Salome Batir Vsevolod Payevskiy Jim Alexander First Female Forklift Operator, SolTuna Resident Representative, Solomon Islands, IFC General Manager, SolTuna Contact Information IFC 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA +1 (202) 458-2262 BMurti@IFC.org www.IFC.org/gender @WBG_Gender 10953