The Impact of Better Work on Firm Performance

3 Sep 2018

Updated and ongoing analysis of Better Work data from three country programmes demonstrates a story of dual gains for workers and their employers during the course of a factory’s enrolment in Better Work. Compliance with wage regulations rises over time, resulting in increased take-home pay for workers. Simultaneously, net profits of the same firms rise, in aggregate. The main drivers of these effects are related to supply chain relations – Better Work factories have received bigger order sizes, greater access to buyers, and higher prices from principal buyers over time as a result of participation in the programme. These effects are reinforced by greater worker productivity, and in the case of Jordan, an improved reputation as a sourcing destination that spurred growth of the overall industry during the period under study, benefitting workers and firms.

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