As the world marks World Refugee Day on June 20, nearly 80 million people are forcibly displaced around the world—the vast majority in low- and middle-income countries. Now more than ever, companies need to show that refugee integration is both good business and good for society.
When you look at a refugee, what do you see? A neighbor, a customer, a potential coworker? If you don’t, you could be missing a key ingredient to your company’s success.
Due to various barriers in accessing the labor market, refugees tend to have higher levels of unemployment. The societal challenges caused by failing to integrate new arrivals shouldn’t be underestimated. Therefore, it’s critical that the private sector open pathways to employment for refugees.
At IKEA, we’ve committed to supporting 2,500 refugees by 2022. The goal is to improve their skills to gain employment inside or outside our business in 30 countries.
Encouragingly, a number of other companies have also been stepping up to the challenge. For example, by 2023, through its incubator program, Ben & Jerry’s will support at least 500 refugees to start their own businesses, and the company will help them secure part-time employment. Volkswagen is another good example, having trained 6,000 refugees since 2015. Uniqlo is expanding its refugee hiring across the U.S., Canada, U.K., France, Germany, and Japan. Others who stand out include H&M, Starbucks, Accenture, and Sodexo.
While the amount of refugees impacted by these initiatives represent a small percentage of the 26 million people who’ve achieved refugee status, every contribution has large ripple effects. We believe more companies, both big and small, should join the movement because refugee integration is beneficial for all.
For one, working with refugees is a great way to increase diversity. It’s well known that diverse companies are more innovative. A recent McKinsey report found that more diverse companies are more likely to have higher profits. Refugees bring different perspectives, cultures, experiences, and backgrounds, all of which help companies better meet customers’ needs.
A Deakin University report on resilience, which is backed up by IKEA’s own research, points to the importance of having resilient employees with a lifelong learning mindset. Companies are looking to recruit people who can adapt quickly to rapidly changing environments. Many refugees, through the trials they have been through, are experts in adaptability and resilience.
What’s more, research from the Fiscal Policy Institute shows that refugees tend to stay with the same employer longer than other hires. Measuring and acting on coworker turnover is fundamental for all companies. While we’re still analyzing the numbers, we’re seeing positive retention trends in the markets where we are running our refugee integration programs.
Companies are also finding that they can attract promising candidates who use these integration opportunities as a springboard to develop their careers. For example, we recently recruited a Syrian refugee in Czechia who used to own a furniture company. Now, he’s a logistics coworker with the potential to grow inside IKEA.
Moreover, refugee integration initiatives become a meaningful experience for many other employees. Often the employees from the host country who are coaching and training refugees feel pride that they have a part in creating a more inclusive and integrated company. They find meaning through working with new arrivals as they improve their language skills and learn more about the local culture and work.
Finally, consumers like companies that support refugees, especially younger generations. Although the resettlement of refugees has become increasingly politicized, a report from the NYU Stern School of Business and Tent Partnership for Refugees found that consumers in the U.S., Germany, France, and Italy are more likely to purchase from brands that support refugees.
To be sure, there are those who say that refugees drain the economy, take jobs away from citizens, and fail to integrate. However, these views are shortsighted. Research by the Open Political Economy network has shown that investing in the labor integration of refugees has a positive impact on GDP. Investing €1 in refugee welcoming can yield nearly €2 in economic benefits within five years.
We’re seeing the benefits already. So far, on average, two-thirds of the participants in our initiative have found a job after the program—either within IKEA or at another company.
The private sector can make meaningful contributions to local neighborhoods and to society at large by working toward refugee integration. Companies can choose to see opportunities, not threats. Together, we can prove that inclusive growth and positive social impact go hand in hand.
Mercedes Gutierrez is head of social impact communities at IKEA Retail (Ingka Group).
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