Sarah Hees, Consultant MKI-vetEP

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1 Sarah Hees, Consultant MKI-vetEP

2 Agenda Introduction Objective Job Quality as a Concept Approaches EU ILO Population Council Conclusions & Recommendations

3 Introduction Job Quality challenges decline of the public sector too little job growth in the private sector growing informality and poor working conditions Productivity impact low motivation high turnover shortage of skilled labor

4 Objective of the Presentation Discuss Job Quality approaches Provide theoretical background for development of MKI-vetEP s Job Quality approach in Egypt Recommendations for way forward

5 Job Quality as a Concept 2 approaches/trends to Job Quality in the international discussion cultural aspect of Job Quality missing standards and Job Quality in Egypt

6 2 Approaches to Job Quality in the International Discussion Subjective approach pay individual job satisfaction predictor of individual behavior voluntary quits worker productivity absenteeism Objective approach human need & valuation (non-wage) empirical theory of a good work environment participation social workplace, etc. Synthesis wage & non-wage aspects combined

7 Cultural Aspect of Job Quality Valuation of jobs is sensitive to culture, society and socio-economic aspects status of job e.g. plumbing is not a respected job priorities, etc. pay vs. perks

8 Standards in Egypt poor standards low compliance knowledge is rare Labor standards are similarly treated. Therefore a non-standards approach is recommended.

9 Approaches Worldwide No comprehensive single concept of job quality which is widely accepted (e.g. ILO concept not widely implemented or accepted as standard) Each expert suggests his own selection of indicators

10 EU: Job Quality is a Job Worker Relationship objective characteristics of employment subjective evaluation of these characteristics match between worker characteristics and job characteristics

11 EU cont d Dimensions of Quality in Work, according to the European Commission (EC) Characteristics of the job CATEGORIES i. Intrinsic Job Quality ii. Skills, lifelong learning and career development The work and wider labor market context iii. Gender equality iv. Health and safety at work v. Flexibility and security vi. Inclusion and access to the labor market vii. Work organization and work / life balance viii. Social dialogue and worker involvement ix. Diversity and non-discrimination x. Overall work performance

12 ILO "The primary goal of the ILO today is to promote opportunities for women and men to obtain decent and productive work, in conditions of freedom, equity, security and human dignity. ILO Director-General Juan Somavia Decent work, according to ILO involves work that is productive and delivers a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men

13 ILO STANDARD CATEGORY INDICATORS REFERENCE (1) Basic security Basic work and non-work aspects of people s lives (2) Income security Presence of a sufficient income (3) Labor market security Security of having incomegenerating work (4) Employment security Security from loss of current work and the security/capability of keeping one s main job (5) Skills reproduction security Obtaining marketable skills (6) Job security Career possibilities and advancements (7) Work security Occupational safety and working conditions (8) Voice representation security having a collective voice to represent one s rights and interests at work *Basic needs (housing, education, safety / violence, health care, environment and food) *Debt and financial crises experienced *Perceived sufficiency of income *Excessive hours of work (more than 50 hours p. week) and extreme hours (above 60 hours) *Insufficient hours of work *Cash and non cash wages / benefits *Whether salary is below half the median national value *Fluctuations in income and wage arrears *Past income levels and future expectations *Savings measured as cumulative income *Availability of official income supports *Unemployment experiences and presence of unemployment benefits *Recent changes in number of people employed at the respondent s work place *Consequences of the possible loss of current work. *Contract type (written, oral or absent) *Occupation and place of work *Paid sick and annual leave *Employer s contributions to social security *Regularity/tenure of employment *Perceptions of work satisfaction *Likelihood of pregnant women losing their job *Effect of globalization on work. *Formal/informal training received *Mismatch between qualification and work content (skill-related underemployment) *Use of qualifications at work *Expectations for own children s education. *Experiences with advances and setbacks in working life and future expectations *Perceived importance of following a particular profession *Absence from work due to illness, stress and injuries *Overwork *Sexual harassment *Discrimination *Safety of working conditions *Provision for occupational injury compensation *Childcare availability. *Presence of trade unions *Coverage by a collective wage bargaining coverage rate *Employer s concern of employees Anker (2002) Anker et al. (2003) Brown, Pintaldi (2005) Anker (2002) Anker et al. (2003) Mehran (2005) Anker (2002) Anker (2002) Mehran (2005) Anker (2002) Brown and Pintaldi (2005) Anker (2002) Anker (2002) Anker (2002) Anker et al. (2003)

14 Population Council / Egypt based on ILO extends it by adding Job Quality for nonwage workers investigation of worker & enterprise determinants of Job Quality in Egypt

15 Population Council cont d Job Quality Measures for the Informal Sector Category Indicator (informal sector) Operationalization challenges (if not binary) 1. Income Security Adequate and regular income, access to social security and access to medical care Income: estimated earnings (as mentioned above) 2. Employment Security Regularity of employment Binary variables 3. Skill Acquisition Having received formal / informal training 4. Work Security Adequate working hours, workplace and reasonable commuting distance to work. Binary variables Working hours: degree of underemployment by number of hours worked below 40 hours if the individual is involuntary working less than 40 Hours Workplace: 5 Levels 1. Streets, mobile card, hut 2. Own home, in another house or in a field / farm 3. Truck, pickup truck, taxi 4. Shop, kiosk, room or number of rooms 5. Working in offices, flats, buildings or factories

16 Population Council cont d Indicators for the Formal Sector Category 1. Income Security (institutional variables) Indicator Adequate and regular income, access to social security and access to medical care 2. Employment Security Regularity of employment contract, paid sick leave, paid annual leave 3. Voice Representation Security Member of trade unions 4. Work Security Adequate working hours, workplace and reasonable commuting distance to work.

17 Determinants of Job Quality in Egypt Worker-Specific Characteristics 1. Age (young & old have low JQ) 2. Gender (females have low JQ) 3. Education (all education levels have low JQ, especially non-school) 4. Marital status (marriage asset for men, disadvantage for fermales) 5. Years of experience (no impact) 6. Union membership (lower educated have more benefit from membership than higher educated) 7. Occupation (blue collar have low JQ) 8. Whether the individual uses computers at work (no impact) Enterprise-Specific Characteristics 1. The region where the enterprise is located (in Cairo Higher JQ, everywhere else lower JQ, especially low in Upper Egypt) 2. Legal status (anything lower than medium size is mostly informal e.g. has no license, low JQ if informal) 3. Enterprise age in years (no impact) 4. Capital, economic activity (the bigger the company regarding capital, the better the JQ) 5. Size (no impact) 6. Percent of women to total workers (no impact)

18 Conclusions & Recommendations Conceptual Recommendations (Macro Level) 1. An approach towards JQ should be a pull, not a push approach (clarifying incentives) concentrated on positive factors and honour best practice examples 2. An instrument for improving JQ in Egypt should take into account the core indicators (Ragui Assaad) clarifying what a) wage and salary workers and b) non-wage workers expect of good jobs because they are essential for worker s JQ in Egypt 3. Cultural or non-core indicators (social perception of jobs, respect at work, trust between employers and employees, precise and trustworthy job descriptions) also have to be included into an Egyptian JQ concept and complement Ragui Assaad s concept

19 Conclusions & Recommendations 4. More studies on JQ in Egypt are needed to get a better insight into JQ in different sectors, regional differences and to tell what JQ means to different segments of the population. More data on groups with low JQ is needed to better understand what JQ deficits they have 5. Grounded theory (a combination of qualitative and quantitative research) could be helpful. It is fast, practice oriented and less of a burden than quantitative research 6. MKI-vetEP needs to focus on groups with low JQ (who and where they are, what can be done for them) 7. Find out which jobs are not accepted in Egypt and target the social reputation of these jobs

20 Conclusions & Recommendations Evaluation of the Approaches 1. EU framework useful as a basis for JQ approach in Egypt, but categories & operationalisation of JQ not appropriate for Egypt, categories don t fit with cultural framework this could create blockers for an instrument on this basis. Examples: gender equality / non-discrimination 2. Ragui Assaad s concept is useful because it catches main measures and determinants of JQ in Egypt, but could be expanded through the cultural dimension / noncore issues mentioned by different studies

21 Conclusions & Recommendations The Way Forward (Advocacy Level): Support awareness raising from employers with Ministry of Manpower & Migration and Ministry of Trade & Industry Raising awareness for profitability still seems to be the best framework to combine improved quality of work and productivity of companies Select partner companies carefully and offer an award for improvement of JQ

22 Conclusions & Recommendations Micro Level Employers and employees have to face each other. Potential partners of MKI-vetEP should help raise awareness of expectations of employers among employees and vice versa (MKI-vetEP could facilitate this process) It is uncertain that employers see the link between treating staff well and benefits arising from it: create awareness of importance of HR development (needs of both sides) among employers Establish a round-table culture for companies (business improvement circle for JQ) or some sort of exchange and follow-up mechanism Create awareness that employers also have to compensate for flawed education and labour market system. Make employers realize that investment into staff is a positive long-term investment

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