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.

Standard 5c. 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)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: standards-implementation standards-implementation The Universal Standards Implementation Guide: Universal Standards Resource Library: