“For a refugee, [getting a job] is day and night. That’s the point at which they find their life can continue,” said Hamdi Ulukaya, former Turkish immigrant and CEO of the $3 billion Greek yogurt company, Chobani. At the height of the global refugee crisis in 2016, due to fallout from the Syrian civil war, Ulukaya founded the Tent Partnership for Refugees with the goal of mobilizing the business community to improve the lives of refugees. At the crux of this new approach is that businesses can play a tremendous role in providing refugees with the economic means to thrive in their resettlement country by hiring them. Jobs ensure financial stability and an opportunity to create meaningful social connections for refugees. Nonetheless, businesses raise a number of hesitations in employing refugees. A 2018 mixed-method study by Erasmus University found that employers find it challenging to judge the relevancy of a refugee’s prior education and work experience, and that language fluency plays a significant factor in the chances of employing a refugee. In addition, an aura of uncertainty continues to sway hiring biases as many businesses worry about lingering psychological problems faced by traumatized refugees.
As a response, this article looks to answer two questions. First, from an economic standpoint, why should businesses actively seek to employ refugees? And second, how can businesses fairly assess refugees and effectively integrate them into their organizations?
The Business Case for Employing Refugees
Employers who employ refugees see lower turnover rates. A 2018 report by the Fiscal Policy Institute and the Tent Foundation entitled, Refugees as Employees, found that 73% of the 29 employers surveyed reported a higher retention rate for refugees in comparison to overall retention rates. The Denver-based company, L&R Pallets, went from 300% turnover per year to 15% after beginning to hire refugees in 2013. James Ruder, CEO of L&R Pallets, had this to say about decreasing costs associated with turnover, “We’ve been able to stop injuries, increase our depth of training, and improve the quality of our products. That all goes to the bottom line.”
As refugees enter resettlements, so do their vast array of skills. This presents a unique opportunity for businesses to ease labour shortages. Speaking on the Canadian labour market, Gideon Malt, executive director of the Tent Partnership for Refugees, says “There’s been a particular interest in entry-level roles [for refugees], which I think is often what companies are struggling to fill with a tightening labour market.” Refugees broaden the pool of talent for businesses and are a “main driver of Canada’s economic growth” according to Debroy Chan, Director of Immigrant Inclusion Strategies at the Toronto Region Immigration Employment Council (TRIEC).
The employment of refugees and a diverse workplace increases productivity and is correlated to higher financial returns. Refugees are often regarded as hard workers and provide significant long-term value once upskilled. If given the opportunity to share their unique perspective and play a hand in decision-making, an organization benefits from a more inclusive environment. In addition, research has shown that employees of more diverse and inclusive organizations tend to be more productive. A McKinsey study found that companies in the top 25% for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians.
As the prevalence of CSR continues to trend upward amongst businesses, employing refugees fosters goodwill from the government and consumers. Nowadays, consumers are actively looking for organizations that they associate with to showcase that they care for more than just their bottom line. Employing refugees bolsters the brand and reputation of an organization, which can lead to more sales. Furthermore, governments have begun rewarding and recognizing businesses for their involvement. Most notably, Canada’s Refugee Employment Award goes to a firm that helps refugees find their first job.
Hiring refugees presents an initial investment in training and logistical support but yields positive profits and a short payback period. The Boston Consulting Group assessed German companies and found that recruiting and training a refugee costs an additional €7,500 (40% of first-year local worker costs). However, alongside government subsidies, businesses are repaid through increased productivity from filling job shortages and retention rates, as previously stated, and the extra cost is typically compensated within a year.
Effectively Employing and Integrating Refugees
Assessing refugees fairly begins with the shifting of mindsets. Rather than considering refugees solely from a CSR perspective or as a quota to be filled, businesses should adopt a mindset that sees refugees as a source of skilled human capital. In fact, many refugees are well-educated and adept learners. For example, roughly half of all Syrian refugees who have entered Europe since 2015 obtained post-secondary education. This mindset enables businesses to objectively seek out talents that refugees have acquired, mitigate potential biases towards foreign qualifications, and see the value of transferable international skills.
Best practices for integrating refugees into an organization are not too different from onboarding new hires out of university as robust training programs and formal mentorship are the two most effective strategies.
Training programs: In addition to the staple training on organization norms, businesses should provide training in language skills and cultural and communicative nuances. By either partnering with community centres and local libraries or insourcing language tutoring, overcoming the initial language will not only enable refugees to achieve their high-performing capabilities but also help in social interactions with other employees and fostering a sense of belonging.
Mentorship: To help refugees seamlessly integrate into the workplace, pairing them with a mentor enables them to ask any questions they may have off the bat and onwards. As many refugees may still be finding their voice in the workplace, having an experienced staff or senior member of the team available for check-ins and able to vouch for their capabilities is critical to their success. Mentors can help refugees expand their professional networks to quickly adjust to the workplace culture. These mentorship programs foster a welcoming environment for refugees and help other employees enhance cultural awareness and practice inclusivity.
Lastly, businesses should look to take the extra step by helping refugees adjust to life outside of work as well. Connecting them to community organizations, other local resources that will help ease their resettlement, or even to their respective religious affiliations can go a long way to making refugees feel at home. Other workplace events or trips and tours around the city are also great ways for refugees to meet people in the workplace and learn more about their resettlement country’s culture.
Next Steps
Overall, the private sector has a limited understanding of refugee issues and many misconceptions persist as to the legal processes and requirements for refugees to work, how transferable their qualifications are, and even which populations fall under the category of refugee. Moving forward, it is imperative that these misconceptions are clarified and acted upon in hiring refugees accordingly. A public forum such as the Syrian Refugee Jobs Agenda Roundtable is a great example of providing business leaders with the space to be educated and to strategize a plan of action on refugee employment. Bringing business leaders (employers), government agencies, and immigration agencies together enabled an open discussion on the specific challenges and opportunities for hiring refugees. Another great initiative in shifting the mindsets of the public and private sector is the Ashley Community Housing’s #rethinkingrefugee movement. Originating in the UK (Bristol), this campaign aims to publicize refugee employability — specifically in utilizing their skill sets to drive innovation and new market opportunities for businesses, society, and refugees.
In building upon events such as the Syrian Refugee Jobs Agenda Roundtable, it is critical for collaboration to continue to be fostered between governments and businesses, aligning national policies with business agendas. Complicated regulations and legal procedures can hinder the long-term status of refugees, lessening their likelihood of being hired and fully integrated into an organization. Thus, the first step is in governments streamlining the process for those seeking asylum and incoming refugees. Secondly, given everything that has been said in this article, on a national and municipal level, a logical next step is an implementation of comprehensive incentivization programs for refugee employment beyond recognition awards. And lastly, governments and businesses must work in tandem to chart the refugee’s integration path from the initial legal processes to prolonged career development. From touchdown to a job offer, an ideal path should be paved for refugee employment that utilizes the strengths and authority of both entities as well as NGO organizations. One thought is for government agencies to help validate qualifications and provide initial language training, then for NGO organizations, such as Talent Beyond Borders and RefugePoint, to match a refugee’s skillset with business partners looking to hire. From that point forward then, the business can take care of career development and proper integration into society. Although each refugee’s journey and skillset are unique, a tried and true path for integration and employability can ultimately make the difference between further struggles and finding a new home.
To conclude, I will refer again to the poignant words of Hamdi Ulukaya. “You do not exist as a business to only make profits for your shareholders. You have a responsibility to your community, your employers and their families, and to humanity. You either do it or you die.” Employing refugees, uniquely, creates shared value for both businesses and the social welfare of communities and immigrants. Beyond genuine moral justification, businesses are able to reap financial rewards by employing refugees, achieving untapped skills, productivity, and profits. In turn, with financial stability, refugees are able to realize a fresh start and begin to truly thrive in resettlement homes ultimately creating a win-win scenario.
By Nathaniel Loh