Dimension 5: Treat Employees Responsibly

With Alia Farhat of Al Majmoua and Leah Wardle of the SPTF

Agenda•Review of Dimension 5 of the Universal

Standards

•Interview with Alia Farhat of Al Majmoua

• Q&A with participants

SPTF Presenter: Leah Wardle

Dimension 5 of the Universal Standards•Section Title: Treat Employees

Responsibly

•Rationale: Employees have rights, and employees that are well-treated are more likely to treat clients responsibly.

•Content developed in close consultation with the International Labour Organization.

The standards in Dimension 5

•5a—The institution follows a written Human Resources policy that protects employees and creates a supportive working environment..

•5b—The institution communicates to all employees the terms of their employment and provides training for essential job functions.

•5c—The institution monitors employee satisfaction and turnover.

Standard

5a. The institution follows a written Human Resources policy that protects employees and creates a supportive working environment.

Essential Practices Summary

• Make a written HR policy available to all employees. Ensure it complies with national law, and explains employees' rights.

• Pay employees a living wage.• Respond to employee grievances through a formal

and confidential grievance system.• Do not employ nor benefit from forced or

compulsory labor or illegal child labor.• Assess employees' health and safety risks and take

steps to mitigate them.• Document, report, and investigate all occupational

accidents, injuries or diseases.

Standard

5b. The institution communicates to all employees the terms of their employment and provides training for essential job functions.Essential Practices Summary

• Provide employees with a written job description and employment contract.

• Provide them with job-specific training and/or skill development.

• Explain to each employee how his/her performance will be evaluated and rewarded by the institution.

Standard5c. The institution monitors employee satisfaction and turnover.Essential Practices Summary• Analyze employee satisfaction. • Monitor the rate of employee turnover and

understands the reasons for employee exit. • Take action to correct institutional problems

leading to employee turnover and dissatisfaction.

Monitor employee satisfaction with:• Employment terms, including contract duration

and remuneration• Workload• Employee training • Career advancement opportunities • Physical resources/infrastructure/equipment • Communication, participation, and leadership

from supervisors• Communication and teamwork from peers• Conflict resolution practices• Human Resources support services

Interview with Alia Farhat

Human Resources and SPM Manager for

The Lebanese Association for Development, “Al Majmoua”

1. Why is it important to Al Majmoua that all employees are trained on SPM?

• Al Majmoua strongly believes in SPM. The Board of Directors pays a lot of attention to this topic (e.g., we were among the first MFI endorsers of the Client Protection Principles)

• We have a holistic approach toward development with a focus not only on economic but also on social development (e.g., we offer financial and non-financial services).

• Training staff on SPM ensures our social mission is carried out to the field.

2. Are staff only trained when they first enter the organization?

• Inception training for new employees and

dissemination of the Employees Handbook

and Code of Conduct and Ethics

• On the job training

• Refresher courses

• Annual retreat and mid-year staff gathering

• Quarterly internal newsletter

3. What are “SPM” topics, as opposed to general training on how to do the job?

• Our social mission and social goals

• Women’s economic empowerment

• Our Code of Conduct and Ethics

• Our social responsibility towards the community

• Our social responsibility towards the

environment

• Monitoring and collection practices

4. How do you ensure that this training is effective? Do you evaluate employees on SPM criteria? If so, which?

• Management by objectives

• On the job evaluation

• Yearly appraisal

▫- % of female entrepreneurs

▫- % of clients renewal versus new

▫- clients complaints

• Hotline Complaints

5. What recruitment process do you have, to ensure that employees are on board with your mission?

• Recruit clients as field officers

• Looking for extra curricular activities, volunteering

work

• Field visit prior to HR interview

• Behavioral questions during the interview

• Summary of the Employees Handbook and Code of

Conduct and Ethics

• Clause in the employment contract

Where to find more resources on Dimension 5

•This presentation and audio recording: http://sptf.info/online-trainings/universal-standards-implementation

•The Universal Standards Implementation Guide: http://sptf.info/resources/resource-center

•Universal Standards Resource Library: http://sptf.info/resources/resource-center