Human Nature’s pro-poor policies help uplift Filipino workers and boost business

In 1914, Henry Ford offered $5 a day for 8 hours of work at Ford Motor Co. and thousands lined up to take the extraordinary offer. It was double the average factory wage at that time and made a defining moment for U.S. workers in the 20th century. The movement led to an absolute total success as it sped up the production and doubled the company’s profit in less than two years. This proved that higher wages led to more productivity. Ultimately, the outcome was an industrial middle class and economy driven by consumer demand.

Fast forward to today, pointers from the movement Ford pioneered can still be put into place. While the economic pressure and political changes cannot guarantee to reach a similar bargain and reboot a 21st century version of the working middle class, there are still practices that can be done to help uplift them and boost businesses at the same time.

Giving more than minimum wage works

In 2008, Human Nature began with a dream to uplift vulnerable communities from poverty. Since then, the social enterprise has been hiring Gawad Kalinga residents and other base-of-pyramid workers and providing them with fair living wages, from 60% to 100% more than the minimum wage required by law. When possible, they also source raw materials at above-market prices from rural communities and provide them with livelihood, training, and equipment. 

The Institute for Social Entrepreneurship and Gandang Kalikasan, Inc. (Human Nature) collaborated to create a development index measuring the impact of the latter on its employees from marginalized communities at the company’s 10th anniversary. Results show that:

89% are now able to meet the needs of their family

75% have improved in terms of their ability in managing their finances

51% are now more mindful about borrowing and consciously saving

Apart from a dignified living wage, warehouse staff, merchandisers, and manufacturing plant personnel are all regularized and are receiving full benefits. This is in contrast to the usual 5-month contract without benefits offered by other companies, a condition that leaves workers without a sense of security and living in fear of being terminated due to an error or misjudgement, making it difficult to hope for and work towards a better quality of life.

Human Nature believes that their role is to be good stewards of employees and build a strong, new, inclusive Philippine middle class by helping the working poor rise sustainably from poverty.

Purpose in time of pandemic

Just like other businesses, Human Nature was also greatly affected by the economic downturn brought about by COVID-19. Other companies were forced to retrench their staff to stay afloat. In the same light, Human Nature sales were simply not enough to support their operations during the two years of strict quarantines. The leadership of Human Nature was faced with the decision to either lay off 20 percent of her employees or have everyone in the company take a pay cut. Human Nature was determined to stay true to their no-firing policy and chose the latter. In order to make it work, those in leadership took bigger pay cuts since they had savings and other safety nets as opposed to the rank-and-file employees.

"I think [with] those kinds of policies, our employees see that we are genuine in our commitment to make sure that we won’t leave them in their hour of need. That we can collectively make sacrifices in the true spirit of bayanihan. As with many businesses, the pandemic has been one of the toughest times in the history of the company, but I think it's still a relief to see that, despite the challenges, we're still here, we're still standing and we didn't have to resort to layoffs," Human Nature co-founder Anna Meloto-Wilk explains.

Family-friendly policies for all

Human Nature also provides security of tenure to employees through their No Firing Policy. They believe that not giving up on workers is good for the business--when properly coached and mentored, they flourish and become valuable contributors to the business.

Other programs Human Nature has set to help raise a new middle class include Financial stewardship that teaches financial management that help workers optimize their earnings and free them from debt; Relocation assistance that help defray costs of employees moving to the growing operations in Laguna, and their Home Assistance Program that gives workers easier access to dignified homes; Leaves and shortened hours that value time with family and give time for rest and recreation, boosting workers’ happiness and productivity; No work on Sundays that allow our workers to enjoy time with their family and worship.

These policies and the following allowances showed demonstrable impact on the lives of formerly low-wage workers as well: Private Health Insurance coverage for all regular employees even the rank & file, Milestone Benefits that offer practical assistance to employees during major life events that usually entail a large cash-out, namely, weddings and births through aWedding Gift Benefit of P20,000 and P10,000 birth benefit per child.

Our Contribution to the United Nations’ Sustainable Development Goals

Human Nature helps the UN achieve its global call to action to end poverty, protect the earth’s environment and climate, and ensure that people everywhere can enjoy peace and prosperity. Human Nature has tackled 9 out of 17 SDGs identified by the UN:

No Poverty Living wages and providing social safety nets for the working poor   Zero Hunger Feeding programs around the community where Human Nature stores are found as well as in partnership with Kusina ng Kalinga   Good Health & Wellbeing Development of genuinely safe, natural products   Decent Work & Economic Growth Dignified employment to build the new middle class   Responsible Consumption & Production Development and production of biodegradable products from renewable resources inside Natural Care Labs and shifting to sustainable packaging and distribution models like re-filling stations.      Sustainable Cities and Communities Gawad Kalinga houses and Balik Bote - Bigay Buhay program   Life Below Water and Life on Land Prevention of 22 tonnes of plastic waste from ending up in oceans, damaging marine life and ending in landfills   Partnerships for the Goals Collaborations with regulatory agencies, local brands and environmental groups to come up with scalable solutions to social and environmental issues.  

Not all business models are designed to meet these SDGs, but it’s becoming an imperative for businesses to thrive now and in the future to address these pressing issues that affect not just society but the health of the business itself.  Addressing social and environmental issues are no longer just about reputation management but a matter of business health.

Compassion at the top of the agenda

Human Nature turns compassion into action through its pro-worker programs and pro-environment products

As Human Nature provides its workers a dignified living wage, it helps increase motivation and productivity which is good for business. Anchored on the core truth that Henry Ford found 100 years ago, increasing wages not only increases company productivity but consumers’ buying power. Investing in the base of the pyramid workers raises a new, broad middle class who will then contribute to a more dynamic and robust economy.