Term Consultancy: Productivity and Pay in RMG
Palladium International, Bangladesh
Methods, key duties and tasks:
- This study will detail and analyse the most common forms of payment systems for workers (salaried, straight piece rate, differential piece rate and straight piece rate with guaranteed base wage as well as group bonus) in the Bangladeshi RMG factories and assess how these payment systems interact and correlate with productivity improvements and/or efficiency gains in factories.
- The analysis must consider the direct and indirect pathways between productivity improvements and payment systems. It must also demonstrate the relation between a) increased profitability because of increased productivity, increased efficiency and improved retention of trained workers and b) increased costs because of increased pay to workers, assuming that there are no other changes to the current operating context.
- Recommendations from the report should then be around conditions or linked ecosystems can be created to ensure that productivity improvements do flow partly back to workers in the form of higher pay.
- The study must provide key recommendations, highlighting the best practice approaches based on the analysis of information gathered during the research. It must also cover the risks and challenges associated with this topic.
- Sudokkho, through its partner-organisation, will assist the consultant(s) to identify around 10 appropriate factories to be visited. The consultant(s) will be responsible for arranging all meetings and coordinating logistics.
- The consultant(s) will use structured questionnaires to conduct the interviews. The questionnaires must be customised to different group of stakeholders, i.e. sourcing personnel from brands/buyers/buying agents, production floor management, industrial engineers, HR-department management and senior management. All questionnaires must be approved by Sudokkho prior to usage.
- Given that gender equality and social inclusion (GSI) is an integral element of the Sudokkho programme, the consultant(s) must consider the relevant aspects of GSI while conducting this study and providing recommendations.
- Deliverables and reporting At the start of the assignment, the consultant(s) will submit a workplan based on the ToR. The workplan should also include a list of proposed visits and personnel who are to be interviewed.
- The consultant(s) will submit a final report of maximum 15 pages (excluding annexes) including an executive summary of 2 pages which should be read as a standalone document. The report will include the following:
- 1 Executive summary (maximum 2 pages); 2 Overview of worker payment systems in Bangladesh; 3 Pathways to a pay increase, including salaried and piece-rate workers; 4 The link between productivity and pay; 5 Strengthening the link between productivity and pay; and 6 Risks and challenges to strengthening the link between productivity and pay.
- 10 years of international experience in working on productivity improvements for RMG suppliers, with an understanding of performance payment systems in factories;
- Demonstrated expertise and work experience with international best practices relating to workforce management in the RMG sector;
- Academic qualifications in relevant field of expertise;
- Strong analytical skills, sound judgement, the capacity to think strategically, including the ability to produce high quality output;
- Fluent in English and Bengali;
- Track record of successful consultancies in similar type of assignment; and
- Knowledge and sensitivity on gender equality and social inclusion will be considered as an added advantage.