Investments aligned with this Strategic Goal aim to improve job security and stability for people who work under precarious conditions, including contractors, casual workers, and the self-employed, as well as those in the informal sector, and especially for those facing additional disadvantages as a result of factors such as gender, ethnicity, race, or citizenship. Improvements include more regularized employment, more predictable hours, and access to benefits, while balancing companies’ need for flexibility based on fluctuations in demand, an important determinant of resilience to economic shocks.
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:
Workers in non-standard forms of employment or under insecure or informal labor arrangements face various challenges, including higher income volatility, lack of voice and representation, lower hourly wages, risks to occupational health and safety, and lack of social security benefits (1). Workers under precarious employment are faced with the short-term nature of their employment contracts (for example, seasonality or self-employment), which employers may terminate on short notice, and such precarious workers are vulnerable to lower earnings and worse working conditions (2). On-call workers can also present disadvantages for employers, as they may have limited integration into company culture, higher turnover, lower quality of work, and less motivation (3).
Informal employment represents a significant part of the economy and labor market in many countries. For example, in Latin America, the share of informal employment varies by country between 45% and 83%; in developing countries in general, informality accounts for a large share of production in certain sectors, contributing 40–50% of GDP (4,5). In both developed and developing economies in recent years, the so-called ‘gig’ or platform economy has grown exponentially in size and importance (6). An ILO study found that platform workers are less likely to have social protections (health coverage, pension, unemployment, work injury, disability benefits) and that many (1 in 5) live in a financially precarious situation (7). Nevertheless, the gig economy may offer new employment opportunities, can be more flexible for those who have other responsibilities, and may be more inclusive of workers who could face discrimination in other forms of employment (8).
Investments aiming to improve job security and stability can drive impact by:
Target stakeholders can then experience the following commonly sought outcomes, among others:
Around two billion workers worldwide (61% of those employed) are employed informally and are therefore significantly less likely to have security and stability, especially in terms of enjoying the benefits of social protection systems (9). Of those workers, some 935 million are own-account workers occupied in elementary activities due to the lack of jobs in the formal sector; in general, informal workers are more likely to live in conditions of poverty (10). Of those workers considered in wage salaried employment (53% of the total), 40% are in informal employment, affecting their job security and stability (11). Many workers in the formal economy under nonstandard forms of employment also face precarious working conditions.
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:
Workers in precarious employment are target stakeholders of this strategic goal. A large proportion of workers face precarious working conditions as a result of the informal nature of their work or nonstandard form of employment. Most vulnerable to those conditions are the following categories.
The following are intermediate target stakeholders for this Strategic Goal.
Most employment in Africa is in the informal sector (85.8%), unlike in Europe and Central Asia, where just one in four employees are informal (24). In general, in developed countries, 18.3% of workers are in informal employment. In developing and emerging countries outside Africa (in the Americas, the Arab States, and Asia and the Pacific), the share varies from 53.8% to 71.4% (24). Women are more exposed than men to informal employment in more than 90% of sub-Saharan African countries, 89% of countries in Southern Asia, and almost 75% of Latin American countries (25). In terms of temporary status for those who are engaged in formal employment, according to OECD (2018) estimates, in some countries, like Colombia and Chile, around 28% of wage and salaried workers have temporary work arrangements. By contrast, in EU countries, this same figure stands around 14%.
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 investing in projects that increase pathways towards job security and stability 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 the approximately two billion informal workers worldwide, as well as other workers under non-standard forms of employment. Temporary employment (one form of non-standard employment) varies by specific region and sector. In Europe, temporary workers comprise from 2% of wage employees in Romania to 28% of wage employees in Poland; in other regions, this proportion can reach 70%, as in the case of Pakistan (26).
The potential impact of investments in this Strategic Goal may vary according to the type of investee, geographic realities, and sector. An example of the impact of improved job security and stability is the following:
The ILO’s Microfinance for Decent Work research tested innovative approaches to fostering social impact through the delivery of financial and non-financial services to MFI clients. The program worked with one MFI in India (ESAF), which offered training on formalization and business development. An impact evaluation of the program showed a 70% increase in business registration with relevant authorities and a 15% increase in maintaining accounts books (27).
Key questions in this dimension include:
The following are impact risk factors for investments in line with this Strategic Goal.
The consequences of these risk factors range from compliance issues if labor regulations are not met, harming workers and raising reputational consequences for investors, to unrealized impact potential, leaving workers equally or more vulnerable than they were before.
The Africa Agriculture Trade and Investment Fund (AATIF) extended a loan to a commercial soy, wheat, and maize farm in Zambia in 2011. The facility included covenants that required the company to increase their base of fixed-term staff, as the company had mainly relied on casual workers. The number of fixed-term workers increased from 46 (2010) to 138 (2015), following an intentional transformation of casual to fixed-term contract arrangements alongside additional improvements to working and living conditions for farm workers, including permanent housing and schooling for their children.
EdenTree, a responsible and sustainable investment manager, carefully selects investments that that are aligned with their values. They actively engage with companies on relevant topics, one of which is the issue of “zero-hours contracts” (ZHC), which are contracts that do not stipulate minimum number of hours to be worked. Although these may have certain beneficial aspects in specific cases, they do not guarantee workers any income security and stability, among other drawbacks. EdenTree engagement stresses the company’s duty to the community, and they do not include companies with business models that exploit workers using ZHC in their funds.
Novastar Ventures, a venture capital manager supporting entrepreneurs in East and West Africa, has invested in a gig work platform in Kenya called LYNK. The platform seeks to connect skilled workers to clients or businesses demanding high-quality services in a country where 80% of the working population is involved primarily in the informal economy. Through the platform, informal workers build their resumes and strengthen the quality of their work, increasing demand for their services and reliability of their pay. LYNK already has 1,000 active professionals and 3,000 clients that have requested services.
1
Janine Berg, Mariya Aleksynska, Valerio De Stefano, Martine Humblet, Christina Behrendt, Susan Hayter et al., Non‐Standard Employment around the World: Understanding Challenges, Shaping Prospects (Geneva: ILO INWORK, 2016).
2
ILO, Decent Work Indicators: Concepts and Definitions (Geneva: ILO, 2013).
3
ILO, “On-Call Work and ‘Zero Hours’ Contracts,” Fact Sheet, May 2004.
4
ILOSTAT, “Statistics on the Informal Economy,” https://ilostat.ilo.org/topics/informality/.
5
Friedrich Schneider, Andreas Buehn, and Claudio E. Montenegro, “Shadow Economies All Over the World: New Estimates for 162 Countries from 1999 to 2007” (Policy Research Working Paper No. 5356, World Bank, Washington DC, June 1, 2020).
6
Valerio De Stefano, "The rise of the “just-in-time workforce”: On-demand work, crowdwork and labour protection in the “gig economy” (Geneva: ILO, 2016)
7
ILO, “Job Quality in the Platform Economy” (Issue brief No. 5 prepared for the 2nd Meeting of the Global Commission on the Future of Work, February 15–17, 2018, Geneva, Switzerland).
8
Richard Heeks, “Decent Work and the Digital Gig Economy: A Developing Country Perspective on Employment Impacts and Standards in Online Outsourcing, Crowdwork, Etc.” (Centre for Development Informatics Working Paper no. 71, University of Manchester, August 2, 2017).
9
Roger Gomis, Steven Kapsos, Stefan Kühn, and Hannah Liepmann, World Employment and Social Outlook: Trends 2020 (Geneva: ILO, January 2020).
10
Florence Bonnet, Vicky Leung and Juan Chacaltana, Women and Men in the Informal Economy: A Statistical Picture (Geneva: ILO, 2018).
11
Gomis et al., World Employment and Social Outlook.
12
Bonnet et al., Women and Men in the Informal Economy.
13
ILO, Global Employment Trends for Youth 2017: Paths to a Better Working Future (Geneva: ILO, November 2017).
14
OECD Data - Temporary Employment, 2019 https://data.oecd.org/emp/temporary-employment.htm
15
Fundación ONCE and the ILO Global Business and Disability Network, Making the Future of Work Inclusive of People with Disabilities (Geneva: ILO, November 2019).
16
Rishabh Kumar Dhir, Umberto Cattaneo, Maria Victoria Cabrera Ormaza, Hernan Coronado, and Martin Oelz, Implementing the ILO Indigenous and Tribal Peoples Convention No. 169: Towards an Inclusive, Sustainable and Just Future (Geneva: ILO, 2020).
17
Inshan Ali Nawaz Kanji, Role of Finance in Driving Formalization of Informal Enterprises (Geneva: ILO, 2016).
18
OECD/ILO, How Immigrants Contribute to Developing Countries’ Economies (Paris: OECD, 2018).
19
Hannah Lewis, Peter Dwyer, Stuart Hodkinson, and Louise Waite, “Hyper-Precarious Lives: Migrants, Work and Forced Labour in the Global North,” Progress in Human Geography 39, No. 5 (September 2014): 580–600, https://doi.org/10.1177%2F0309132514548303.
20
ILO, Enterprise Formalization, EEASE, 2017, https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---ifp_seed/documents/publication/wcms_544828.pdf
21
Judy Fudge and Claire Hobden, “Conceptualizing the Role of Intermediaries in Formalizing Domestic Work” (Conditions of Work and Employment Series No. 95, INWORK, ILO, Geneva, April 4, 2018).
22
Kanji, Finance Driving Formalization.
23
Schneider et al., Shadow Economies Over the World.
24
Bonnet et al., Women and Men in the Informal Economy.
25
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).
26
Berg et al., Non‐Standard Employment around the World.
27
ILO, Microfinance for decent work, 2015, https://ilo.org/employment/Whatwedo/Publications/employment-reports/WCMS_344847/lang--en/index.htm
28
Schneider et al., Shadow Economies Over the World.
This mapped evidence shows what outcomes and impacts this strategy can have, based on academic and field research.
Campos, F, Goldstein, M and McKenzie, D, 2019. The impacts of formal registration of businesses in Malawi, 3ie Impact Evaluation Report 96. New Delhi: International Initiative for Impact Evaluation (3ie). Available at:
https://doi.org/10.23846/OW4IE96
Can better working conditions improve the performance of SMEs?: an international literature review /
Richard Croucher, Bianca Stumbitz, Ian Vickers, Michael Quinlan, Wendy Banfield, Michael Brookes, Thomas
Lange, Suzan Lewis, John Mcllroy, Lilian Miles, Daniel Ozarow, Marian Rizov, International Labour Office. –
Geneva: ILO, 2013
To what extent is social protection associated with better firm level performance? A case study of SMEs in
Indonesia. Torm, Nina. ILO, 2019
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.
Percent of full-time and part-time workers who were permanent employees of the organization during the reporting period.
Permanent Employees: Total (OI8869) / (Temporary Employees: Total (OI9028) + Permanent Employees: Total (OI8869))
Organizations should footnote details around the type of temporary employment provided. See usage guidance for further information.
Temporary employees include contracted (or subcontracted) employees. These contracts may be either written or oral but are characterized by a predefined term. Temporary employment may include fixed-term, project or task-based contracts, as well as seasonal, intermittent, or casual work.
Organizations should footnote details around the type of temporary employment provided. Relevant details to footnote related to the type of temporary employment provided may include: the typical duration of temporary employees’ contracts, the breakdown between full-time and part-time temporary employees, or other.
To understand the key indicator that will be used to measure the outcome (improved terms of employment), which is a critical step in measuring progress toward the Strategic Goal.
Ratio of the average wage of non-salaried permanent (full-time and part-time) employees of the organization during the reporting period, compared to the local minimum wage as of the end of the reporting period
Value of loan disbursed/number of loans disbursed
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 can use a variety of timeframes to calculate the average non-salaried wage (e.g., hourly, weekly, daily, other specific time cycle) and should use the same time period for comparing wages to the local minimum. For example, if the minimum wage in a given area is based on an hourly rate, the average wage should also be hourly.
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 wages paid by the organization in comparison to local minimum wage, which can be helpful in assessing predictability of pay and quality of terms of employment.
Value of wages (including bonuses, excluding benefits) paid to all temporary employees of the organization during the reporting period.
N/A
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 wages paid by the organization to temporary workers, which can be helpful in assessing predictability of pay and quality of terms of employment.
Number of paid hours worked by temporary employees of the organization during the reporting period.
N/A
Organizations should footnote all assumptions used.
Organizations should capture hours worked by contracted (or subcontracted) employees as part of this metric. These contracts may be either written or oral but are characterized by a predefined term. Temporary employment may include fixed-term, project or task-based contracts, as well as seasonal, intermittent, or casual work.
Organizations are encouraged to report this metric in conjunction with Temporary Employees (OI9028).
To understand the number of hours worked by temporary employees, which can be helpful in assessing predictability of pay and quality of terms of employment.
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.
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.
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.
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 enterprises directly supported by the organization.
Percentage of full-time, part-time, and temporary employees who have a written contract of employment specifying their terms and conditions of employment.
Percent of employees with a written contract / (Temporary Employees: Total (OI9028) + Permanent Employees: Total (OI8869))
Organizations should footnote all assumptions used.
Sourced from ILO.
Written contracts are defined as contracts of employment specifying their terms and conditions of employment.
For more guidance on written contracts, please see ILO's Q&As on Employment Relationship and Labour Contracts, Q&As on Business and Employment Security, Employment Protection Legislation Database (EPLex), and Helpdesk for Business on International Labour Standards. For country-specific details, see ISSA.To understand contracting practices, which can be helpful in assessing quality of terms of employment.
Indicates whether the organization has a written policy to monitor, evaluate, and ensure its workers’ freedom of association
Yes/No
Organizations should footnote the relevant details around their worker freedom of association policy, including how it is enforced.
Freedom of Association is the allowance of workers to form and join trade unions, worker associations, and worker councils or committees of their own choosing. Examples of relevant policies, to footnote, may include: allowing workers to participate in the setting or revision of workplace rules and standards, distributing an employee handbook to all workers (written in their native language) that describes both legal requirements and the organization’s policies and procedures on freedom of association, etc.
Organizations can refer to the following source for further guidance: International Labor Organization.
To understand conditions related to worker representation and voice, which can be helpful in assessing quality of terms of employment.
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 predictability of pay and quality of terms of employment.
Indicates benefits provided to full-time employees of the organization that are not provided to temporary or part-time employees 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.
Sourced from GRI 401-2.a.
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.
To understand benefits provided only to full-time employees, which can be helpful in assessing predictability of pay and quality of terms of employment.
Indicates whether the organization offers flexible work arrangements to full-time, part-time, or temporary employees of the organization.
Yes/No
Organizations should footnote details of the flexible arrangements offered and the uptake of them. See usage guidance for further information.
Examples of flexible work arrangements may include choosing :work shift, choosing flexible working hours (allowing freedom to vary start and stop times), working from remote locations (telecommuting), job-sharing, or other(report additional details).
To understand benefits offered to employees related to flexibility in work arrangements, which can be helpful in assessing predictability of pay and quality of terms of employment.
Median wage paid to non-salaried full-time, part-time, or temporary employees of the organization during the reporting period
N/A
Organizations should footnote the timeframe used to calculate this metric, as well as all other assumptions used. See usage guidance for further information.
Non-salaried employees are paid on a variable basis (e.g., hourly, daily, weekly, other specified time cycle, or other specified parameter). Since the timeframe for non-salaried employees can vary, organizations should footnote the timeframe used for its calculations. Non-salaried employees’ earnings are contingent on the amount of time worked.
Organizations are encouraged to narrow this calculation to specific geographies, industries, departments, positions, etc., and should footnote details on how the calculation was made. Organizations are also encouraged to break down and footnote in isolation on the median non-salaried wage for full-time, part-time, and temporary employees, respectively.
The median is the middle of all values.
To understand wage distribution, which can be helpful in assessing predictability of pay and quality of terms of employment.
Average wage paid to non-salaried full-time, part-time, or temporary employees of the organization during the reporting period
N/A
Organizations should footnote the timeframe used to calculate this metric, as well as all other assumptions used. See usage guidance for further information.
Non-salaried employees are paid on a variable basis (e.g., hourly, daily, weekly, other specified time cycle, or other specified parameter). Since the timeframe for non-salaried employees can vary, organizations should footnote the timeframe used for its calculations. Non-salaried employees’ earnings are contingent on the amount of time worked.
Organizations are encouraged to narrow this calculation to specific geographies, industries, departments, positions, etc., and should footnote details on how the calculation was made. Organizations are also encouraged to break down and footnote in isolation on the median non-salaried wage for full-time, part-time, and temporary employees, respectively.
To understand wage distribution, which can be helpful in assessing predictability of pay and quality of terms of employment.
Value of wages (including bonuses, excluding benefits) paid to all permanent and temporary employees (including full-time and part-time in both groups) 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 employees and should not include benefits nor include payroll expenses.
To understand wages paid by the organization to all employees, which can be helpful in assessing predictability of pay and quality of terms of employment.
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 predictability of pay and quality of terms of employment.
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 how wages paid by the organization compare across the organization, which can be helpful in assessing predictability of pay and quality of terms of employment.
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 predictability of pay and quality of terms of employment.
Average tenure of employees of the organization as of the end of the reporting period.
Sum of each employee's tenure / Number of employees
Organizations should footnote all assumptions used. See usage guidance for further information.
Where applicable, footnote the date used as a start date for the tenure calculation such as: immediately upon employment, upon satisfactory completion of a probation period, etc.
To understand the average length of time an employee works at the organization, which can be helpful in assessing quality of terms of employment.
Ratio of the number of involuntarily departing permanent (full-time and part-time) employees, compared to the average number of permanent (full-time and part-time) employees at the organization during the reporting period.
(Departed Permanent Employees: Involuntary) / (Average Number of Permanent Employees during the reporting period)
Organizations should footnote all assumptions used. See usage guidance for further information.
The number of departed permanent employees should only include employees departing the organization involuntarily. Organizations can refer to Departed Permanent Employees: Involuntary (OI7225) for additional information on involuntary departures.
The average number of permanent employees can be calculated a number of ways. One example for organizations reporting on a yearly basis is to calculate the average number of permanent employees on a monthly basis.
To understand the rate of involuntary departures from the organization, which can be helpful in assessing quality of terms of employment.
Ratio of the number of permanent (full-time and part-time) employees that departed voluntarily, compared to the average number of permanent (full-time and part-time) employees at the organization during the reporting period.
(Departing Permanent Employees: Voluntary) / (Average Number of Permanent Employees during the reporting period)
Organizations should footnote all assumptions used. See usage guidance for further information.
The number of departed permanent employees should only include employees departing the organization voluntarily. Organizations can refer to Departed Permanent Employees: Voluntary (OI8431) for additional information on voluntary departures.
The average number of permanent employees can be calculated a number of ways. One example for organizations reporting on a yearly basis is to calculate the average number of permanent employees on a monthly basis.
To understand the rate of voluntary departures from the organization, which can be helpful in assessing quality of terms of employment.