In the Business of Leaving No One Behind

Human Nature’s Miko Go shares how valued labor is a vital business partner for more sustainable growth.

By: Mike Go, Social Enterprise Development (SED) Head – Human Nature

The story of contractual labor is a sad reality which is easily dismissed as a business necessity in our society. Most have accepted this practice for various justifications based on productivity, efficiency or practicality. Whether in top corporations or educational institutions whose auxiliary services are most likely run by contractuals, the business dogma of Lower Costs, Minimize Expenses, Increase Margins and Maximize Shareholders’ Interests leave little insight to the true value of our labor force in economic development.

As arguments over minimum wage and labor relations persist annually, responsibility is usually passed around on who is supposed to solve this pervasive issue. Business leaders and consumers seem content that corporate social responsibility programs, public relation campaigns and outreach events are sufficient to compensate the matter. Despite this situation of doubt and hopelessness, social enterprises see a ripe opportunity to push for critical social change. 

Human Nature is a concrete example of a social enterprise that is at the forefront of this movement. The company was started by former full-time volunteers of Gawad Kalinga who are truly bent on reshaping business’ role in society. It aspires for the integrity of being Pro-Philippines, Pro-Poor and Pro-Environment to pervade in their products, operations and relationships with all stakeholders. In 3 years time, the company has expanded its presence in 23 major cities and sold over 3 million products in 2011 alone.

As a social enterprise, it operates beyond mere legal compliance, as labor is seen as an investment and not just an expense. The company employs more than 130 employees, 1/3 of which are from nearby Gawad Kalinga communities. In the eyes of most businesses, these are the typical candidates for contractual work basing on their lack of educational attainment and for the reputations of the areas they live in. But in Human Nature, they are the cornerstone which has enabled the business to thrive.

Dignity of work and fair wages are the foundations of productivity for a labor force. The norm of saving costs via contractualization actually leads to lower productivity, shrinkage (theft) and even a contagious poor morale. By investing this perceived cost-cutting measure directly to employees, it leads to a more efficient and competitive business strategy as people are motivated to perform at their best.

Human Nature’s success in developing productive labor starts with the hiring process, where applicants undergo a 3-month evaluation period compared to the typical 6 months. In this period, they already receive Php 500 a day and are given every chance to succeed. A safe and comfortable work area paired with a hands-on staff dedicated to improve their performance naturally produces a working environment that breeds trust, confidence and loyalty.

As soon as they are regularized, workers receive an average wage of Php 750 per day plus full benefits. The value of taking care of their own and their families’ health is emphasized by a generous health coverage (that includes top medical centers), which is rarely experienced by workers who are only afforded the standard PhilHealth coverage.

Income and benefits are not the only measure for improving labor as mentorship plays a vital role in proving this mindset’s effectiveness. Instead of penalizing to manage performance, incentive measures with realistic targets are in place for positive reinforcement. Due to its dedicated management and staff who act as big brothers and are committed to establish an efficient work system, the company’s warehouse operations boasts of an error rate of less than 0.5% which is easily comparable to those of top companies.

Going even further, management & staff volunteers to coach workers from the warehouse on financial stewardship, particularly teaching them budgeting and establishing voluntary save up plans in preparation for a rainy day.

This spirit of volunteerism is then carried out to the warehouse employees, who put in a 5 ½ day work week, then devote one day of service to other GK communities. The half-day is paid while the other half is the sweat equity they cheerfully counterpart. The intention is for them to become inspirations to other beneficiaries, where hard work can truly equate to a better life.  

In this spirit, job opportunities for the poor that started with warehouse roles naturally expanded to sales, retail, administration and even finance. Ultimately, the people who were given a chance for dignified work uplifted the productivity of the rest of the company. Their seamless integration in the workplace constantly reminds everyone in the company of their pivotal role in continuing the good and its strong message to society.

With all the good that is done and the specific ways that it is carried out, it’s amazing that Human Nature remains not only profitable but ever more confident of its growth trajectory. Their business model is an encouraging sign for other business owners to emulate.

Other social enterprises have been encouraged by implementing improvements for labor roles in varying degrees.

In the community of GK Blue Eagle Village in Payatas 13, out of school youth and housewives have an opportunity to become productive through an on-site silkscreen printing & sewing enterprise called Trese. The close knit relationship between management and labor has enabled their community to do away with mercenary tendencies toward income and dependency on livelihood programs. In this enterprise, the GK Kapitbahayan are not only taught to become producers but are being groomed to manage and own the business in the near future. (Click here to view Human Nature merchandise created by Trese.)

On the service side, an upscale nail salon situated in Burgos Circle in Bonifacio Global City named Manos has committed to honor the hard working hands of labor. In the beauty industry where service attendants are expected to meet minimum wage via commissions and tips, the young entrepreneurs have emphasized training and fair wages as their formula for success. They trained housewives coming from GK villages in Taguig who had limited experience. They also opened their doors to experienced nail technicians who were perpetually on contractual basis from the more established nail salon chains. In less than a year, their business has developed a strong following as their staff makes their motivation evident in the way they serve their customers.

Top: The empowered “hands” of Manos Nail Lounge; Bottom: The citronella farming community in Camarines Norte

These companies have overcome business’ competitive landscape by proving that labor is a vital business partner that can make way for more efficient operations and a far more sustainable growth. All of their management decisions have roots to their experience working directly with poor communities through Gawad Kalinga.

It is through this platform that they have realized that business has the greatest capability and an even greater opportunity to change society.

It is by learning that poverty is more behavioral and cultural rather than economic that they’ve committed to build business that will leave no one, especially the labor force, behind.

Browse through our site to learn more about Human Nature’s products and advocacy.