Investments aligned with this Strategic Goal aim to improve income earned from work, specifically for disadvantaged, excluded, and low-income populations. These investments help to ensure that every person can earn at least a living wage that permits them and their dependents not only to meet their needs but also to build longer-term wealth and prosperity.
Investors interested in deploying this strategy should consider the scale of the addressable problem, what positive outcomes might be, and how important the change would be to the people (or planet) experiencing it.
Key questions in this dimension include:
Low-wage work can represent a first steppingstone into the labor market and a pathway towards better-paid employment, especially for young workers. It can also lock workers into cycles of poverty and exclusion, whether through lack of opportunities for skill development, inability of the employer to pay more, lack of benefits, or wage discrimination (27). In countries like Belgium or New Zealand, the incidence of low pay is between 5-7%; in the U.S., it is around 23%; and in emerging market countries like Colombia, Chile and Costa Rica where it varies between 10 and 14% (28).
Some people face greater risk of low-wage work simply by virtue of their sex, race, ethnicity, or residency status (1). Others face greater risk because of their job’s location or context, such as jobs in the informal sector, in agriculture, or in a small or family-owned firm (1).
Income is not the only measure related to poverty levels and systematic vulnerability. Wealth also contributes to standards of living and largely determines how families can cope with periods of low income (2). Savings and assets are essential in the long-term, unlocking access to other financial services, such as credit and insurance, that themselves can increase wealth or act as mechanisms to manage risk and reduce vulnerabilities and inequalities (for more on this point, see the strategic goal “Improving Financial Health” in the IRIS+ Financial Inclusion theme) (3).
Investments aiming to improve earnings and wealth through employment and entrepreneurship can drive impact by:
Target stakeholders can then experience the following common outcomes, among others:
According to most recent ILO estimates, 19% of the global workforce is extremely poor (7%) or moderately poor (12%) (4).* Globally, low-paid workers are disproportionately female, often young, have low levels of education, and are more likely to be members of disadvantaged ethnic minority, racial, or immigrant groups in their particular country (5). Data from 2017 show that the distributions of global labor income are highly unequal; a worker in the upper decile of the global labor income distribution earned on average USD 7,400 per month, whereas one in the bottom decile earned just USD 22 per month (both figures in PPP terms). The global share of labor income was 49% for those in the top 10% and just 6% for the bottom 50% (6).
*This source uses the following definition for “extremely poor”: Daily income per capita below USD 1.90, PPP; moderately poor: daily income per capita between USD 1.90 and USD 3.20, PPP (4).
Investors interested in deploying this strategy should consider whom they want to target, as almost every strategy has a host of potential beneficiaries. While some investors may target women of color living in a particular rural area, others may set targets more broadly, e.g., women. Investors interested in targeting particular populations should focus on strategies that have been shown to benefit those populations.
Key questions in this dimension include:
Improving earnings and wealth through employment and entrepreneurship could positively impact workers, their families, and the enterprises that employ them, with the following groups most directly impacted.*
The following are intermediate target stakeholders for this Strategic Goal.
*The geography and cultural context of the investment will play a key role in determining the groups impacted and the particular characteristics of the group.
Waged work does not always provide a route out of poverty. Low pay is particularly prevalent in developing countries, which means that workers must work excessively long hours in order to provide a minimum standard of living. This is particularly acute in Africa, where 53% of workers live in moderate or extreme poverty (15). Women perform 76.2% of the total amount of unpaid care, equivalent to a daily amount of 4h and 25 minutes, against 1h and 23 minutes dedicated by men (26). In high-income countries women are just paid for 37% of the time they work (men 65%), in middle income and low income countries they are paid for close to 42% of the time they work (men 84% and 76% respectively).The incidence of working poverty is also rising in some European countries and the United States, with significant variance within regions.
Whereas in France and the United States an estimated one-third of low-paid workers transition to higher-paid employment within a year, in Germany and the Netherlands, this proportion stands around 25% (16). In the Republic of Korea, the incidence of low pay is among the highest in the world. There, the probability that low-paid workers will remain in low-paid employment has increased in recent years, in combination with a general increase in the incidence of low pay.
The gender pay gap, which relates to the difference in average earnings between men and women, is a global phenomenon (world average 20.5%) that varies by country, sector, and income group (17). It is larger in high-income countries (25.6%) and low-income countries (28.2%), whereas in middle-income countries it varies between 15.8% and 19.8%. In high-income countries, women are more likely to work for low pay (23.8%) compared to men (14.7%) (18).
Dimensions of Impact: CONTRIBUTION
Investors considering investing in a company or portfolio aligned with this strategy should consider whether the effect they want to have compares to what is likely to happen anyway. Is the investment's contribution ‘likely better’ or ‘likely worse’ than what is likely to occur anyway across What, How much and Who?
Key questions in this dimension include:
Organizations can consider contribution at two levels — at the enterprise level and at the investor level. At the enterprise level, contribution is “the extent to which the enterprise contributed to an outcome by considering what would have otherwise happened in absence of their activities (i.e. a counterfactual scenario).” To learn more about methods for assessing counterfactuals, see the Impact Management Project. At the investor level, organizations can use a number of strategies to contribute toward impact, and details specific to this strategic goal are below.
At the investor level, organizations investing in projects that improve workers’ earnings and wealth can contribute toward solutions as follows.
Dimensions of Impact: HOW MUCH
Investors deploying capital into investments aligned with this strategy should think about how significant the investment's effect might be. What is likely to be the change's breadth, depth, and duration?
Key questions in this dimension include:
Investments in line with this Strategic Goal can benefit all workers, most particularly those under or close to the poverty line. Almost one in five employed workers do not earn enough to keep them and their families out of poverty.
The potential impact of investments in this Strategic Goal vary with the specific activities undertaken by the investee and the specific areas of improvement. The following are examples of the impact of improving earnings and wealth through employment and entrepreneurship.
Key questions in this dimension include:
The following are impact risk factors for investments in line with this Strategic Goal.
If not mitigated, these impact risk factors may lead to workers and entrepreneurs falling into poverty—or not being able to escape from it—perpetuating a cycle of low-paid jobs that fuels intergenerational inequality.
Unreasonable Group, an investment firm promoting entrepreneurial growth, has invested in SunCulture, based in Kenya, which provides low cost, solar-powered irrigation to African farmers. They design, manufacture, sell, and distribute these drip irrigation systems, the use of which can increase farmers’ yields by more than 300%, translating to improved incomes.
Platform Living Wage Financials (PLWF) is an alliance of 13 financial institutions representing over EUR 2.6 trillion in assets under management and established in 2018. It encourages and monitors investee companies to address the non-payment of living wages in global supply chains. PLWF target three specific sectors that employ manual labor and where wages are commonly insufficient to cover living expenses: garment and footwear, food retail, and food and agriculture. One of their findings is that a living wage could be a proxy indicator, as companies that pursued more sophisticated interventions for a living wage tend to have highly developed policies and processes on other labor and human rights standards.
Chiratae Ventures, an asset manager in India investing in innovative tech start-ups, has provided financing to Blowhorn, an asset-light, intra-city marketplace for logistics that connects truck drivers to corporate demand. Blowhorn offer solutions for manufacturers to deliver their products faster, small businesses that rely on their spot market for asset-light logistics, and individuals transacting second-hand goods. Unlike competitors, drivers earn fixed fees for their work. Owner-drivers who provide the transportation services have increased their earnings and improved their skills.
HCAP Partners provides mezzanine debt and private equity for underserved, lower-middle-market companies in the United States. Over 2019, HCAP built a technology solution to incorporate worker voice into its impact framework, directly surveying each employee within its portfolio companies to understand job satisfaction and areas of improvement. In 2015, HCAP invested in Mission Senior Living (“MSL”). In 2017, MSL management realized that 40% of their frontline staff had no access to banking and used payday lenders to cash their checks. HCAP and MSL set up a partnership with the Northern Nevada Credit Union, solving banking needs for their frontline staff and promoting savings, reducing fees, improving access to credit, and facilitating financial education.
Yunus Social Business, a company with a social mission, invested in RangSutra, which acts as bridge between rural artisans and consumers to create sustainable livelihoods in India, where more than 100 million people rely on textiles and handicrafts as their main source of income. RangSutra works with artisan cooperatives from rural villages to source textiles, which are turned into finished garments and sold to buyers and retailers. The company provides skills training, design input, working capital, and quality control. More than 2,500 artisans (70% of them women) have benefited from equal pay, fair wages, a safe working environment, and skills training, and their incomes have increased more than five fold (Rs. 5,000).
1
Damian Grimshaw, What Do We Know about Low-Wage Work and Low-Wage Workers? Analysing the Definitions, Patterns, Causes and Consequences in International Perspective, Conditions of Work and Employment Series No. 28 (Geneva: ILO, 2011).
2
3
Kuper and Marx, “The Truly Vulnerable.”
4
Roger Gomis, Steven Kapsos, Stefan Kühn, and Hannah Liepmann, World Employment and Social Outlook: Trends 2020 (Geneva: ILO, January 2020).
5
Gomis et al., World Employment and Social Outlook.
6
Gomis et al., World Employment and Social Outlook.
7
ILO, “The Working Poor: Or How a Job Is No Guarantee of Decent Living Conditions” (ILOSTAT Spotlight on Work Statistics No. 6, April 2019).
8
9
ILO, “Entrepreneurship and SME Management Training,” fact sheet, November 2014.
10
Patrick Belser, Rosalia Vazquez-Alvarez, and Ding Xu, Global Wage Report 2018/19: What Lies Behind Gender Pay Gaps (Geneva: ILO, November 2018)
11
Fundación ONCE and the ILO Global Business and Disability Network, Making the Future of Work Inclusive of People with Disabilities (Geneva: ILO, November 2019).
12
ILO Stat, 2019 => ILO, Are migrants also successful in the labour market?, 2019 https://ilostat.ilo.org/are-migrants-also-successful-in-the-labour-market/
13
Duncan S. Gilchrist, Michael Luca, and Deepak K. Malhotra, “When 3 + 1 > 4: Gift Structure and Reciprocity in the Field” (Harvard Business School NOM Unit Working Paper No. 14-030, November 5, 2014).
14
15
Gomis et al., World Employment and Social Outlook.
16
17
Valentina Beghini, Umberto Cattaneo, and Emanuela Pozzan, A Quantum Leap for Gender Equality: For a Better Future of Work for All (Geneva: ILO, March 2019).
18
Beghini et al., Quantum Leap for Gender Equality.
19
Richard Locke and Monica Romis, “The Promise and Perils of Private Voluntary Regulation: Labor Standards and Work Organization in Two Mexican Garment Factories” (MIT Sloan Research Paper No. 4734-09, Cambridge, Massachusetts, January 22, 2009).
20
Social Finance Programme and University of Mannheim, Microfinance for Decent Work: Enhancing the Impact of Microfinance (Geneva: ILO, 2015).
21
22
Miriam Bruhn, Martin Hommes, Mahima Khanna, Sandeep Singh, Aksinya Sorokina, and Joshua Seth Wimpey, MSME Finance Gap: Assessment of the Shortfalls and Opportunities in Financing Micro, Small and Medium Enterprises in Emerging Markets (Washington, DC: IFC and the SME Finance Forum, 2017).
23
Impact Management Project (IMP) and Root Capital, The Investor’s Perspective: Constructing a Portfolio on the Efficient Impact–Financial Frontier within One Asset Class (London: IMP, October 2017).
24
25
26
27
28
This mapped evidence shows what outcomes and impacts this strategy can have, based on academic and field research.
Select a Outcome or Impact to find the supporting research.
Christopher Blattman, Nathan Fiala, Sebastian Martinez, Generating Skilled Self-Employment in Developing Countries: Experimental Evidence from Uganda , The Quarterly Journal of Economics, Volume 129, Issue 2, May 2014, Pages 697–752, https://doi.org/10.1093/qje/qjt057
López, Fernando & Maffioli, Alessandro, 2011. “Technology Adoption, Productivity and Specialization of Uruguayan Breeders: Evidence from an Impact Evaluation,” IDB Publications (Working Papers) 3014, Inter-American Development Bank.
Nguyen, C.V. (2013), The impact of minimum wages on employment of low‐wage workers. Econ Transit, 21: 583-615. doi:10.1111/ecot.12022
Cohen, P. N., Huffman, M. L., & Knauer, S. (2009). Stalled Progress?: Gender Segregation and Wage Inequality Among Managers, 1980‐2000. Work and Occupations, 36(4), 318–342. https://doi.org/10.1177/0730888409347582
George I. Long, 2013. Differences in union and nonunion compensation, 2001–2011
Each resource is assigned a rating of rigor according to the NESTA Standards of Evidence.
This starter set of core metrics — chosen from the IRIS catalog with the input of impact investors who work in this area — indicate performance toward objectives within this strategy. They can help with setting targets, tracking performance, and managing toward success.
Ratio of the wages paid during the reporting period to the highest compensated full-time employee (inclusive of bonus, excluding benefits), compared to the lowest paid full-time employee.
(Wages of highest paid full time employee during the reporting period) / (Wages of lowest paid full time employee during the reporting period)
Organizations should footnote all assumptions used, including details about the positions used for the calculation(s). See usage guidance for further information.
Organizations with operations in many countries are encouraged to report multiple ratios, where each compares wages of two employees located in the same country. Organizations should footnote the details about the types of positions used when calculating this metric.
This ratio can be used for salaried employees with fixed wages or for employees with variable salaries (e.g., hourly, daily, weekly, other specified time cycle, or other specified parameter).
To understand the key indicator that will be used to measure the outcome (improved pay equity), which is a critical step in measuring progress toward the Strategic Goal.
Ratio of the average wage paid during the reporting period to female employees of the organization for a specified position, compared to the average wage paid to male employees of the organization for the same position.
(Average wage paid to female employees in a specified position) / (Average wage paid to male employees in the same position)
Organizations should footnote all assumptions used, including details about the positions used for the calculation(s). See usage guidance for further information.
Organizations should footnote the specific position(s) they use to calculate this ratio, including whether the position is a managerial or non-managerial role. For example, organizations reporting this metric for multiple positions are encouraged to report various data points for gender wage equity and specify the position to which the data points correspond.
While this metric helps organizations begin to understand gender wage equity in their operations, organizations are cautioned that other factors may affect the data collected. For example, the average wages reported for this metric may only be meaningful if there are multiple individuals of both genders in a similar position within the organization. Additionally, factors such as employee education, experience, tenure at the organization, and others may also influence wage disparities.
To understand how wages paid within the organization compare between female and male employees, which can be helpful in assessing pay equity.
Number of full-time, part-time, and temporary employees of the organization that are earning the local minimum wage as of the end of the reporting period.
N/A
Organizations should footnote the minimum local wage for the region(s) in which they operate (since the minimum wage varies according to geography) as well as the sources they rely on for this data.
Minimum wage is the lowest wage permitted by law or by a special agreement (such as with a labor union). Since the minimum wage varies according to geography, IRIS does not define a minimum wage. Organizations can refer to the minimum wage definition in the glossary for more resources on determining minimum wage(s) for their calculation(s).
This metric is intended to measure the number of employees earning exact minimum wage.
To understand the number of the organization’s employees who earn minimum wage, which can be helpful in assessing employees’ income-earning opportunities
Number of full-time, part-time, and temporary employees of the organization that are earning equal to or more than the local living wage as of the end of the reporting period.
N/A
Organizations should footnote the minimum living wage for the region(s) in which they operate (since the living wage varies according to geography) as well as the sources they rely on for this data.
According to the Corporate Human Rights Benchmark Methodology (CHRB), a living wage is defined as enough to provide a decent living for a worker and his/her family based on a regular work week, not including overtime hours. A living wage is sufficient to cover food, water, clothing, transport, education, health care and other essential needs for workers and their officially entitled dependents and provide some discretionary income. Workers also receive equal pay for equal work. For more on this definition, see CHRB .
Since the living wage varies according to geography, IRIS+ does not define a living wage.
To understand the number of the organization's employees who earn a living wage, which can be helpful in assessing employees' income-earning opportunities
Net number of new full-time equivalent employees working for enterprises financed or supported by the organization between the beginning and end of the reporting period.
Many organizations may choose the beginning of the reporting period to be the time when the organization began its support/investment.
Jobs in Directly Supported/Financed Enterprises (PI4874)−Jobs Maintained at Directly Supported/Financed Enterprises: Total (PI5691)
Organizations should footnote all assumptions used. Organizations that report data using more than one reporting period should make very apparent which reporting period they are using for this metric. See usage guidance for further information.
Organizations may choose to disclose employment by function (examples: operations and maintenance, construction, land conservation).
Organizations are encouraged to report other job-related metrics to assess the quality of jobs created. Examples of these include Worker Safety Policy (018001), Employment Benefits (OI2742), Employees Trained (OI4229), Flexible Work Arrangements (OI7983), and Employees: Minimum Wage (OI5858).
To understand number of jobs created in enterprises directly supported by the organization, which can be helpful in assessing improvements in income-earning opportunities.
Percentage of total employees covered by collective bargaining agreements.
Number of employees covered by a collective bargaining agreement / (Temporary Employees: Total (OI9028) + Permanent Employees: Total (OI8869)) x 100
Organizations should footnote all assumptions used. See usage guidance for further information.
Sourced from GRI 102-41.
According to the Corporate Human Rights Benchmark Methodology (CHRB), a collective bargaining agreement is defined as when an organization respects the right of all workers to form and join a trade union of their choice (or equivalent worker bodies where the right to freedom of association and collective bargaining is restricted under law) and to bargain collectively. In addition, it provides workers’ representatives with appropriate facilities to assist in the development of effective collective bargaining agreement(s). The organization also prohibits intimidation, harassment, retaliation and violence against trade union members and trade union representatives. For more on this definition, see CHRB.
To understand the percent of employees who have protected rights within the organization to negotiate their pay as part of a trade union or worker body, which can be helpful in assessing pay equity.
Number of total shares owned by employees / Number of total shares
While the above core metrics provide a starter set of measurements that can show outcomes of a portfolio targeted toward this goal, the additional metrics below — or others from the IRIS catalog — can provide more nuance and depth to understanding your impact.
Number of full-time equivalent employees working for enterprises financed or supported by the organization as of the end of the reporting period.
N/A
Organizations should footnote all assumptions used. See usage guidance for further information.
While this metric requests full-time equivalent job information, organizations are encouraged to also provide the breakdown of this data for full-time and part-time positions supported/financed.
In calculating the number of full-time equivalent jobs, part-time jobs should be converted to full-time equivalent jobs on a pro rata basis, based on local definition (e.g., if the standard working week equals 40 hours, a 20 hour per week job would be equal to a 0.5 FTE job). Both full-time and part-time jobs should be calculated based on the number of employees employed as of the end of the reporting period. Seasonal or short-term jobs should be prorated based on the time worked throughout the reporting period (e.g., a full-time position for three months at any point during the reporting period would be equal to a 0.25 FTE job). Note that in the United States, the U.S. Treasury Department defines a working week as 35 hours. See glossary definition for more information on how to calculate full-time equivalent.
To understand number of jobs in enterprises directly supported by the organization.
Number of full-time equivalent employees working for enterprises financed or supported by the organization at the beginning of the reporting period who remain at the organization as of the end of the reporting period.
N/A
Organizations should footnote all assumptions used. Organizations that report data using more than one reporting period should make very apparent which reporting period they are using for this metric. See usage guidance for further information.
Self employed individuals and owners of businesses should be counted as employees.
While this metric requests data on full-time equivalents, organizations are encouraged to also provide the breakdown of these data for full- and part-time positions supported/financed. Organizations can refer to the full-time equivalent glossary term for more detail, including notes on its calculation. In brief, in calculating the number of full-time equivalent jobs, part-time jobs should be converted to full-time equivalent jobs on a pro rata basis based on local definitions (for example, if the standard working week equals 40 hours, a 20-hour-per-week job would be 0.5 FTE). Both full- and part-time jobs should be calculated based on the number employed as of the end of the reporting period. Seasonal or short-term jobs should be prorated based on the time worked throughout the reporting period. (For example, a full-time position for three months at any point during the reporting period would be 0.25 FTE.) Note that, in the United States, the U.S. Treasury Department defines a working week as 35 hours.
Organizations may choose to disclose employment by function (examples: operations and maintenance, construction, land conservation).
To understand number of jobs maintained in enterprises directly supported by the organization.
Indicates whether the organization has a written policy to compensate employees fairly and equitably and a system to monitor compliance with this policy.
Yes/No
Organizations should footnote details on how they determine the compensation of employees. See usage guidance for further information.
Organizations are also encouraged to footnote details on how they determine fair compensation (e.g., if they conduct a compensation benchmark survey).
To understand whether the organization has in place a policy clearly outlining how they determine employee pay, which is important in assessing pay equity and employee income-earning opportunities.
Ratio of the average wage paid during the reporting period to employees of the organization from minority/previously excluded groups for a specified position, compared to the average wage paid to dominant culture employees of the organization for the same position
(Average wage paid to minority/previously excluded employees in a specified position) / (Average wage paid to dominant culture employees in the same position)
Organizations should footnote all assumptions used, including details about the groups used for the calculation(s). See usage guidance for further information.
Organizations should footnote the specific position(s) they use to calculate this ratio, including whether the position is a managerial or non-managerial role. For example, organizations reporting this metric for multiple positions are encouraged to report various data points for Wage Equity: Minorities/Previously Excluded and specify the position to which the data points correspond.
While this metric helps organizations begin to understand wage equity by race and ethnicity in their operations, organizations are cautioned that other factors may affect the data collected. For example, the average wages reported for this metric may only be meaningful if there are multiple individuals of different groups in a similar position within the organization. Additionally, factors such as employee education, experience, tenure at the organization, and others may also influence wage disparities.
To understand how wages paid within the organization compare between minority/previously excluded employees and dominant culture employees, which can be helpful in assessing pay equity and income-earning opportunities.
Value of wages (including bonuses, excluding benefits) paid to all full-time and part-time employees of the organization with disabilities during the reporting period
N/A
Organizations should footnote all assumptions used. See usage guidance for further information.
This metric is intended to capture pre-tax wages/salaries paid to the organization’s employees with disabilities and should not include benefits nor include payroll expenses. These wages should exclude Temporary Employee Wages (OI4202).
To understand the value of wages paid to permanent employees with disabilities, which can be helpful in assessing pay equity and income-earning opportunities.
Value of wages (including bonuses, excluding benefits) paid to all female full-time and part-time employees of the organization during the reporting period.
N/A
Organizations should footnote all assumptions used. See usage guidance for further information.
This metric is intended to capture pre-tax wages/salaries paid to the organization’s employees with disabilities and should not include benefits nor include payroll expenses. These wages should exclude Temporary Employee Wages (OI4202).
To understand the value of wages paid to permanent employees who are women, which can be helpful in assessing pay equity and income-earning opportunities..
Value of wages (including bonuses, excluding benefits) paid to all full-time and part-time employees of the organization who reside in low income areas during the reporting period.
N/A
Organizations should footnote details on the assessment tools used to identify low income employees.
This metric is intended to capture pre-tax wages/salaries paid to the organization’s employees with disabilities and should not include benefits nor include payroll expenses. These wages should exclude Temporary Employee Wages (OI4202).
The population classified as low income includes all those who fall below a fixed threshold and is inclusive of those classified as poor or very poor. Due to the complexities of assessing the poverty level of employees, organizations will likely have to use specific assessment tools to report on this accurately. See the glossary definition for additional information on commonly used tools to help determine the absolute poverty level of individuals and households.
To understand the value of wages paid to permanent employees who are from low-income areas, which can be helpful in assessing pay equity and income-earning opportunities..
Value of wages (including bonuses, excluding benefits) paid to all full-time and part-time employees of the organization who belong to minority or previously excluded groups during the reporting period.
N/A
Organizations should footnote their categorization of minority/previously excluded groups. See usage guidance for further information.
This metric is intended to capture pre-tax wages/salaries paid to the organization’s employees with disabilities and should not include benefits nor include payroll expenses. These wages should exclude Temporary Employee Wages (OI4202).
To understand the value of wages paid to permanent employees who are from minority or previously excluded groups, which can be helpful in assessing pay equity and income-earning opportunities..
Value of wages (including bonuses, excluding benefits) paid to all full-time and part-time employees of the organization during the reporting period.
Temporary Employee Wages (OI4202) + Permanent Employee Wages: Total (OI9677)
Organizations should footnote all assumptions used.
This metric is intended to capture pre-tax wages/salaries paid to the organization’s temporary employees and should not include benefits nor include payroll expenses.
To understand total wages paid by the organization, which can be helpful in assessing employees’ income-earning opportunities.
Ratio that compares the additional average wage paid to employees of the organization, to the average wage paid for a similar job in a similar industry/category in the local market, at the end of the reporting period.
(Average wage paid to employees in a specified position−Average wage paid to employees in a comparable position at a similar organization) / Average wage paid to employees in a comparable position at a similar organization
Organizations should footnote the specific position(s) for which the wage premium applies, as well as assumptions and sources related to the comparable position at a similar organization. See usage guidance for further information.
To source data points for average wages paid to employees in comparable positions at similar organizations, organizations can refer to resources issued by independent, third-party research bodies within their respective countries of operation. For example, organizations operating in the United States may refer to wage data by area and occupation published by the U.S. Bureau of Labor Statistics. Additional resources include: The World Bank Group's WDR2013 Occupational Wages Around the World report, WageIndicator.org, PayScale.com, and others.
To understand how wages paid by the organization compare in the local or regional context, which can be helpful in assessing employees’ income-earning opportunities.
Ratio of the average wage of non-salaried permanent (full-time and part-time) employees of the organization during the reporting period
Average Non-Salaried Wage (OI8791) / Local minimum non-salaried permanent wage during the reporting period
Organizations should footnote the details on how the average wage was calculated and the source from which the local minimum wage was referenced. See usage guidance for further information.
Organizations should footnote the source of the local minimum wage used to calculate this ratio. Organizations can refer to the minimum wage definition in the glossary for more resources on where to find minimum wages by various geographies.
Organizations are encouraged to narrow this calculation to specific geographies, industries, departments, positions, etc. and should provide footnotes detailing how the calculation was made.
To understand the relationship between the average wage of non-salaried permanent employees and the local minimum non-salaried wage, which can be helpful in assessing employees’ income-earning opportunities.
Describes the benefits that are provided to full-time employees of the organization during the reporting period
N/A
Organizations should footnote eligibility requirements for different types of benefits and the number of employees who enroll in each benefit offering.
Examples of additional details to footnote include: which of these benefits, if any, are provided to full-time employees with a minimum tenure at the organization versus which are provided to all full-time employees; which of these benefits, if any, are provided to salaried versus non-salaried employees; other relevant details about eligibility requirements; information on what percentage of eligible employees participate in each benefit offering. Organizations should also note which benefits are mandated by law and which benefits provided go beyond minimum compliance.
Organizations are also encouraged to use this metric in conjunction with Employment Benefits: Full-Time Employees only (NEW).
To understand benefits provided to workers, which can be helpful in assessing pay equity.
Percentage of the organization that is female-owned, as of the end of the reporting period.
Number of total shares owned by women / Number of total shares
Organizations should footnote all assumptions used. See usage guidance for further information.
Where regional or local laws apply for calculating ownership by previously excluded groups (including women), reporting should be consistent with these laws. Where laws do not exist, shares that are publicly traded or owned by institutions cannot contribute to the number of female owned shares.
To understand the percent of the organization that is owned by women, which can be helpful in assessing pay equity.
Percentage of the organization that is owned by individuals who belong to minority or previously excluded groups as of the end of the reporting period
Number of total shares owned by minorities / Number of total shares
Organizations should footnote their categorization of minority/previously excluded groups and all assumptions used.
Where regional or local laws apply for calculating ownership by previously excluded groups, reporting should be consistent with these laws. Where laws do not exist, shares that are publicly traded or owned by institutions cannot contribute to the number of minority/previously excluded owned shares.
The categorization of minority/previously excluded groups vary by the locations and situations in which they live. Because there is no internationally agreed-upon definition as to which groups constitute minorities, in situations where well-established local policies exist (e.g., South Africa: Broad Based Black Economic Empowerment (BBBEE) definition of previously excluded, India: based on backward caste), organizations should refer to local guidelines to identify minority or previously excluded groups. Otherwise, organizations should provide additional detail as to their tailored methodology for defining these groups.
To understand the percent of the organization that is owned by minority or previously excluded individuals, which can be helpful in assessing pay equity.
Indicates whether the organization has a written policy to support progression/promotion of employees fairly and equitably and a system to monitor compliance with this policy.
Yes/No
Organizations should footnote details on how they determine the advancement of employees.
Organizations are encouraged to align these policies with state or international standards. For example, the United States Equal Employment Commission (EEOC) prohibits any employer from making decisions about job assignments and promotions based on an employee’s race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability or genetic information.
To understand whether organizations have policies in place to support improved career progression opportunities, which can be helpful in assessing employees’ income-earning opportunities.
Net number of new full-time equivalent employees living in low income areas working for enterprises financed or supported by the organization between the beginning and end of the reporting period.
Many organizations may choose the beginning of the reporting period to be the time when the organization began its support/investment.
N/A
Organizations should footnote all assumptions used, including how low income areas are identified. Organizations that report data using more than one reporting period should make very apparent which reporting period they are using for this metric. See usage guidance for further information.
Organizations can refer to the glossary for additional information on defining low-income areas.
While this metric requests data on full-time equivalents, organizations are encouraged to also provide the breakdown of these data for full- and part-time positions supported/financed. Organizations can refer to the full-time equivalent glossary term for more detail, including notes on its calculation. In brief, in calculating the number of full-time equivalent jobs, part-time jobs should be converted to full-time equivalent jobs on a pro rata basis based on local definitions (for example, if the standard working week equals 40 hours, a 20-hour-per-week job would be 0.5 FTE). Both full- and part-time jobs should be calculated based on the number employed as of the end of the reporting period. Seasonal or short-term jobs should be prorated based on the time worked throughout the reporting period. (For example, a full-time position for three months at any point during the reporting period would be 0.25 FTE.) Note that, in the United States, the U.S. Treasury Department defines a working week as 35 hours.
Organizations may choose to disclose employment by function (examples: operations and maintenance, construction, land conservation).
To understand number of jobs created in low-income areas in enterprises directly supported by the organization.