Training increases earnings of women by 40%

A study report said that training support for women in supervisory roles leads to increased earnings of women by 40 per cent and increased productivity in the readymade garment (RMG) factories in the country.

The study report said additional gain is a 40 per cent average increase in salaries due to GEAR promotions while 65 per cent of factories reduced absenteeism.

International Finance Corporation (IFC) and International Labour Organisation (ILO) came up with the findings after a study on the outcome of the Gender Equality and Returns (GEAR) training programme.

The findings of the study, conducted by the University of Oxford and BRAC JPG SPH on Better Work’s GEAR programme, funded by the European Union, were presented at a hotel in Dhaka on Tuesday.

The presentation of the findings was followed by panel discussions participated by, among others, Dr Rubana Huq, vice chancellor of the Asian University for Women and former president of BGMEA; Faisal Samad, director of BGMEA; Mohammad Zahidullah, chief sustainability officer of DBL; Prodip Gabriel, social programme manager of H&M, and Md Mahbub Ur Rahman, CEO of HSBC.

The key findings of the study are 90 per cent of trainees completed training and over two-thirds of them were promoted to supervisor, surveys indicate that trainees have a more supportive or mentoring management style.

Apart from this, survey and HR records indicate that the earnings of the trainees increased by around 40 per cent, and productivity data indicate that lines managed by trainees had 4% higher productivity.

The study was conducted at 27 RMG factories in Dhaka and Chattogram and showcased the strong impact of the GEAR programme, particularly in improving line efficiency and increasing gender equality.

GEAR partnered with global apparel brands, such as H&M, M&S, Levi’s, Ralph Lauren, and VF Corporation, to implement this programme in their supplier factories.

Over 600 female operators from 78 factories, with technical skills and skills required for supervisory roles, took part in the GEAR training programme. Nine out of ten participants completed the training programme and two-thirds have been promoted as supervisors.

At the supervisory level, trainees are earning 40 per cent more than similar workers who are not selected as trainees, with the potential for further promotions up the management ladder.

Benefits of the GEAR on the employees are personal growth and progression to roles with more responsibilities, increase in income after promotion, higher respect at the workplace and at home, better bargaining and decision-making power, and ability to contribute to improving better working conditions for other workers. Besides, there are also benefits of GEAR for companies including the development of skills of the workforce, increase in productivity, decrease in defect rates, decrease in absenteeism and decrease in staff turnover.

The share of trainees promoted was 65 per cent in Bangladesh and 55 per cent in Vietnam. Average line efficiency increased by 4 per cent and it is 8 per cent in Vietnam.

Sewing operators on GEAR-trainee-managed lines were also reported to have higher levels of well-being and more satisfactory working environments because supervisors were showing a more cooperative and supportive management style, according to the study.

“GEAR trainees proved to be more effective as supervisors, with the lines managed by them being 4 per cent more efficient, a gap that grows with supervisory experience,” said Professor Christopher Woodruff, the lead researcher of the study and also a teacher of Development Economics at Oxford University.

“The implied cost savings exceed $5,000 per line per year or $100,000 for a factory with 20 lines,” he said.