The Business Case for Investing in Women’s Employment in Iraq COMPANY INSIGHT Nafith Logistics Co. Supporting Women in Non-Traditional Roles 2022 COPYRIGHT AND DISCLAIMER NOTICE ACKNOWLEDGEMENTS © 2022 The World Bank Group This company insight was prepared by Tala Mitwally, Yasmin 1818 H Street NW, Washington, DC 20433 Mohamed, Yasmine Ossaily, and Tamara Azar based on the work Telephone: 202-473-1000; Internet: www.worldbank.org of Management Partners. The publication benefited from inputs and comments by Nour Al Moghrabi and Sammar Essmat and was edited by David Wood. The work was conducted under the general SOME RIGHTS RESERVED guidance of the Poverty and Equity Global Practice Manager Johannes Hoogeveen and supportedby the Mashreq Gender This work is a product of the staff of The World Bank Group. The Facility team lead Jonna Lundwall and Iraq country lead Gharam findings, interpretations, and conclusions expressed in this work Alkastalani Dexter, and IFC’s Gender and Economic Inclusion do not necessarily reflect the views of the Executive Directors of Group Manager, Henriette Kolb. The World Bank Group or the governments they represent. The World Bank does not guarantee the accuracy of the data included The company insight was prepared as part of the Mashreq Gender in this work. The boundaries, colors, denominations, and other in- Facility (MGF). This Facility provides technical assistance to Iraq, formation shown on any map in this work do not imply any judg- Jordan and Lebanon to strengthen the enabling environment for ment on the part of The World Bank Group concerning the legal women’s economic participation and improve women’s access to status of any territory or the endorsement or acceptance of such economic opportunities. The MGF is a World Bank - IFC initiative boundaries. in collaboration with the governments of Canada and Norway. It is mainly supported by the Umbrella Facility for Gender Equal- ity (UFGE) with contributions from the governments of Australia, RIGHTS AND PERMISSIONS Canada, Denmark, Finland, Germany, Iceland, Latvia, Nether- lands, Norway, Spain, Sweden, Switzerland, the United Kingdom, The material in this work is subject to copyright. Because the the United States, and The Bill & Melinda Gates Foundation. World Bank Group encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommer- cial purposes as long as full attribution to this work is given. All queries on rights and licenses should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washing- ton, DC 20433, USA; e-mail: pubrights@worldbank.org Attribution — Please cite the work as follows: “IFC and World Bank. 2022. The business case for investing in women’s employ- ment in Iraq, COMPANY INSIGHT Ashur International Bank for Investment: Advancing Women in Business Leadership and Man- agement positions”. All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org 2 FOREWORD BY THE WORLD BANK GROUP The International Finance Corporation and the World Bank are working with local partners to remove barriers to women’s participa- tion in Iraqi workplaces and build a community of companies that are dedicated to hiring, retaining, and promoting women. Even before the pandemic, there was an urgent need to level the playing field for working women in Iraq. The labor force participation for women in Iraq in 2017-2018 was 12.6 percent compared to 72.8 percent for men, whereas it is over an eight-year average (2010-2018) 12 percent for women compared to 77 percent for men. That is one of the widest gender gaps in the world – and it has deep social and economic implications. We at the World Bank Group recognize that access to economic opportunities is essential for allowing both men and women to live dignified lives and become active social agents. Attracting, retaining, and promoting women is also good for companies. It allows them to harness talent, making them more productive and competitive. In the bigger picture, raising female employment also contributes to economic growth and supports poverty reduction. Our recently published State of the Mashreq Women Flagship Report1 found that if Iraq raised its female labor force participation rate by 5 percent- age points in 2025, its annual economic growth rate would increase by 1.6 percentage points by 2035. Amid the ravages of COVID-19, boosting female employment would act as a catalyst for Iraq’s economy, making it stronger and more inclusive. That is especially im- portant given that years of conflict have already hampered economic growth in Iraq. As difficult as the pandemic has been, it has allowed us to re-imagine workplaces and to reflect on what those mean for Iraq’s women. We have been inspired to see the agility of some Iraqi companies, many shifting to more flexible, home-working and family friendly work modalities, thereby creating inclusive work models that are responsive to the needs of women. Under the Mashreq Gender Facility’s activities in Iraq, we have launched a series of company insights to showcase Iraqi companies that have created gender-responsive workplaces which support women and men. The company insights feature companies that are promoting greater inclusion of women in their workforce in three thematic areas: · Supporting women in non-traditional sectors, as Nafith Logistics Company is doing; · Promoting women in leadership positions based on Ashur International Bank for Investment’s experience; and · Fostering family-friendly policies for women in the workplace as exemplified by Zain Iraq. We hope these company insights will inspire and encourage other businesses in Iraq to develop more gender-aware environments based on insights into workplace models that work. Our utmost gratitude goes to the three companies that were profiled in these company insights for generously sharing their data and good practices, and for championing this important agenda. We also extend our gratitude to the governments of Canada and Norway for supporting the Mashreq Gender Facility (MGF), under which we are launching these company insights. The MGF is a five-year initiative to support the governments of Iraq, Jordan and Lebanon in their efforts to create a more enabling environment that contribute to increased female labor force participation. Saroj Kumar Jha Abdullah Jefri Regional Director, Middle East Department Regional Manager Middle East and North Africa Region Levant Countries The World Bank International Finance Corporation 1 (WORLD BANK GROUP 2024-2019) 3 The Business Case for Invest- IRAQ’S ECONOMIC ing in Women’s Employment PARTICIPATION 2018 in Iraq Nafith Logistics Co. Supporting Women in Non- Traditional Roles (Central Statistical Organization, 2017-2018) · Total labor force participation in Iraq is 42.8% WOMEN IN NON-TRADITIONAL ROLES IN IRAQ · Males labor force participation is Historically, social norms in Iraq have constrained the range of employment 72.7% options available to females. Women face considerable obstacles to securing · Females labor force participation is their own source of income. At home, many females face pressure to focus 12.6% distributed as follows: on domestic duties and raising children, especially without effective childcare - 89.6% of the 12.6% are em- services across the country. At the workplace, Iraqi women often face gender- ployed in the public sector based discrimination – both when applying for jobs and seeking promotions. - 9.4% of the 12.5% are employed These challenges apply with special force in traditionally male-dominated fields in the private sector like logistics, which have overwhelmingly employed men over women for many decades. Female Employee Profile 2020 Nevertheless, women are gradually overcoming these barriers and finding work Nafith Logistics Co. (Iraq, Jordan, alongside men. Even though 49% of girls in urban areas remain enrolled at school Oman & UAE): until the age of 17, female labor force participation (FLFP) stood at 12.6% in 2020; · 375 employees across all 4 locations by contrast, labor force participation levels reached 72.7% for males in Iraq. Wom- · 10.6% female employees: en play an even less prominent role at a corporate decision-making level, with · 40% Operations just 2% of Iraqi firms including a leading female manager (World Bank, 2019). Un- doubtedly, these statistics reflect an imbalanced female-to-male ratio in terms of · 60% Admin labor force participation. Yet it is noteworthy that these data also indicate marked progress towards greater female involvement – in 2017, the nationwide FLFP was Nafith Logistics Co. – Iraq: just 11.2% for Iraqi women (World Bank, Data Portal). A crucial factor behind this · 78 total number of employees trend is widespread economic need in Iraq, where decades of successive wars · 14% female employees, of which: have triggered interrelated crises of housing, education, health care, and stable - 27% Managers in Admin employment. Faced with these challenges, women are increasingly seeking jobs - 19% Supervisors in Ops. to provide economic security for themselves and their families. - 45% Officers in Operations As female presence grows in the workplace, Iraqi women tend to hold more jobs in the public sector than in the private sector. Current statistics indicate that 89.6% of employed Iraqi women are working in the public sector, with just 9.4% working for private companies (Republic of Iraq, Ministry of Planning, Central Statistical 4 Organization, 2020). Government institutions likely appeal to vealed imminent plans to expand the range of professional ser- female employees more as they offer long-term job security and vices further. a safe work environment. Iraqi women enjoy far lower FLFP rates In Iraq, Nafith’s corporate culture distinguishes itself by promot- in historically male-dominated industries within the private sec- ing a gender-diverse workplace. Females make up 14% of Nafith’s tor. One example is Iraq’s transport and logistics industry, whose current Iraq-based employees – noticeably higher than the com- persistent gender disparity appears increasingly out-of-step pany’s overall FLFP rate of 10.6% across all four countries. The with global trends. One survey found that 60% of supply chain Basra office’s female staff members occupy various senior roles organizations had established goals to increase female represen- within the company: 27% are administrative managers, 19% are tation with “targeted initiatives to recruit, develop, retain and/or operations supervisors, and 45% are operations managers. Tell- advance women in supply chain work” (Gartner, 2021). ingly, more than 60% of female employees hold operations posi- To that end, forward-thinking Iraqi companies have a crucial role tions in Nafith’s Iraq branch – a clear departure from traditional to play in supporting women to take up and succeed in non-tra- roles for women, which tend to be confined to administrative ditional roles – an umbrella term used in this company insight roles. This company insight explores how Nafith’s Iraq office to include all sectors and positions in which women are tradi- has institutionalized corporate structures that support women tionally under-represented or excluded from in Iraq. The sample working in non-traditional roles, allowing them to achieve their size however is not statistically significant and cannot be used full potential. to draw definite conclusions but rather provides anecdotal evi- dence on the topic of this study. WHY NAFITH LOGISTICS CO.? The World Bank Group (WBG) had conducted several interviews with leading Iraqi private sector companies that could be the subject of this study. Based on a selected set of criteria such as company policies and availability of quantitative HR data, com- pany gender diversity efforts on relevant topics, previous experi- ence with the WBG in particular the IFC Gender team, size of the company. Nafith Logistics proved to be a prominent Iraqi private sector company that has made great strides towards gender di- versity, in particular supporting women in non-traditional roles. As such, Nafith Logistics was selected to be the subject of this company insight. HOW NAFITH LOGISTICS CO. COMPANY BACKGROUND SUPPORTS WOMEN IN NON- TRADITIONAL ROLES Established in 2014 in Iraq, Nafith Logistics Co. (Nafith) operates from the banks of Shatt El Arab River, within Umm Qasr Port in Ms Nourah Mehyar, CEO of Nafith, has passionately and de- the Governorate of Basra in Southern Iraq. In Basra, the compa- terminedly advocated for gender diversity and inclusiveness ny provides essential logistics services that aim to streamline car- throughout the organization. Ms Mehyar has worked with go transport connecting the hinterland to the ports. Nafith also Nafith’s board to institutionalize various policies that empower operates in Jordan, Oman, and the United Arab Emirates, with a female employees throughout the company. Nafith’s key tool total of 375 employees across all four countries. Already, Nafith for mainstreaming gender diversity is the Gender Equity Devel- has invested approximately US$12 million in its Iraqi operations; opment Model (GEDM). The GEDM is a corporate structure that building on encouraging signs, the company’s directors have re- defines the role of each Nafith employee – from senior manage- 5 ment to the general workforce – in promoting gender diversity The Gender Diverse Recruitment Policy ensures equal employ- and encouraging women to join the company (See Exhibit 1). By ment opportunities for male and female job applicants. Under creating a constant feedback loop, the GEDM ensures that all the policy, Nafith has included female supervisors on the compa- Nafith personnel know how to integrate gender equity policies ny’s recruitment and nomination committees and ensured that into their daily workflow, while also being able to flag challenges all HR team members develop a true diversity lens through effec- in implementing the policies as they arise. Nafith’s board contin- tive training (including on conscious and unconscious biases). uously updates the GEDM based on practical experiences from Nafith also reviewed and adjusted all company job descriptions the company. to eliminate gender bias from each position’s terms and expected duties. In addition, Nafith has implemented the Equal Opportu- nity Employer Policy, which actively supports traditionally mar- NAFITH LOGISTICS CO. GENDER EQUITY ginalized groups in the logistics sector, including women. DEVELOPMENT MODEL Implementing Gender Equity Policy Top-Down and Bottom-Up Process Encouragingly, Nafith employees endorse the company’s gender equality in recruiting and promoting staff. According to Nafith, Board & CEO Define Policy a 2021 staff survey revealed that 79% of participants believed Nafith’s work environment (1) provides equal opportunity for Middle Management Communicate Feedback Loop men and women to obtain a promotion or training and/or (2) Human Resource Review Policy maintains a desirable level of employee motivation. Moreover, Nafith’s recruitment and promotion trends reflect the improved Communicate Policy Organizationally processes, given that female representation has risen to 18% in Provide Regular Training and Awareness the company’s operations department. Programs about Gender Diversity Workforce Adhere Integrate Participate To policy Into day-to- In providing feedback procedures & practices day work Exhibit 1: Nafith Gender Equity Development Model The GEDM corporate structure has enabled Nafith to pursue sev- eral initiatives aimed at providing a welcoming, safe, and produc- tive workplace for Iraqi women. The company has appointed spe- cific senior staff members as Organizational Champions, tasked with disseminating information to all staff about the company’s gender diversity policies and ensure compliance with them. Fairer recruitment and promotion procedures Addressing social stigma through Family In creating a more gender-diverse workplace, Nafith has faced Friendly Policies resistance to hiring and promoting female employees. Within To recruit more female employees, Nafith needed to address the company, some middle management employees opposed deep-seated social stigma against Iraqi women working in recruiting women to work in Nafith’s operations team, raising non-traditional sectors like logistics. The 2021 Nafith Employ- concerns about the female candidates’ skills and capabilities. In ee Survey revealed that current female employees had been response, Nafith instituted several company policies and tools reluctant to work in the operations team. This hesitancy aimed at minimizing gender bias during the recruitment and stemmed from cultural restrictions, by which women working promotion processes. in male-dominated industries are often shamed by their fami- 6 lies and communities (62%, see Exhibit 2). Of course, this finding Providing a Safe and Respectful Workplace does not account for women who never applied to work with Nafith acknowledges that, even though the company promotes a company like Nafith, worried that they would face societal progressive attitudes to gender diversity, female employees may judgement. still face resistance and discrimination. The company’s Human Rights Policy requires that all Nafith employees respect and val- ue people from all backgrounds, including women. The company Which of the following challenges do female has also instituted a Grievance Policy that addresses issues like employees face in the operations division? workplace harassment, occupational health and safety, supervi- sor conduct, and unfair changes to employment conditions. Un- der the policy, Nafith’s management and HR teams encourages employees; both females and males to participate in a fair and 25% confidential dispute resolution mechanism. Cultural Religious 13% 62% Logistical (Transportation, etc.) Exhibit 2: Results of Nafith’s Employee Survey 2021, specifically on the opera- tions division Nafith has tackled social stigma through a community aware- ness initiative, aimed at demonstrating that the company offers THE BUSINESS CASE FOR EMPLOYING a safe and inclusive workplace. The company has appointed WOMEN IN NON-TRADITIONAL ROLES specific employees as Nafith Organizational Ambassadors, who publicly disseminate knowledge about the logistics sector and Already, Nafith has reaped tangible commercial benefits since correct any prevailing misconceptions about it. The Nafith Or- promoting female employment and gender diversity in a tradi- ganizational Ambassadors engage the local community, sharing tionally male-dominated workplace. These improvements in- their work stories and real-life experiences with colleagues, rel- clude attracting more qualified employees, improving staff re- atives, and friends. In this way, Nafith’s community awareness tention and attendance rates, and offering stronger customer strategy encourages local women and their families to consider service levels. the logistics sector as a viable employment option for females. The company offers further support to women who have Wider talent pool demonstrated an active interest in working with Nafith. All fe- male job candidates can bring a family member to their inter- Recruiting more women has given Nafith access to a wider talent view with Nafith; during employee orientation, the relative can pool than previously, allowing the company to benefit from high- tour the company premises and confirm that it provides a safe ly qualified female staff members. According to Nafith’s service working environment. Under the Family Friendly Engagements team, the company’s increased diversity has introduced various policy, Nafith covers the daily transportation cost of one family perspectives, experiences, and opinions, enabling staff to share member per employee in case some women would like to be ac- ideas and come up with original solutions. For instance, one companied to work on public transport. female supervisor created an innovative solution for truck oper- 7 ators with erroneous data on their port permits. Her approach ed before. The company’s gender diversity and inclusion policies involved supporting the operators to contact port administra- have enabled Nafith to become more innovative in problem-solv- tion instantaneously to clarify the faulty information and decide ing. For example, female staff have spearheaded new communi- whether an electronic rectification would be possible. The new cation techniques to Nafith’s truck control service, which regu- policy helped to reduce losses previously made by the trucking lates the entry and flow of trucks into the ports. Previously, some companies, who used to lose an operating day waiting for their truck operators had felt that Nafith’s customer service team did permits to be rectified. This example demonstrates how Nafith not take complaints seriously; recently, however, those same has enjoyed commercial benefits from hiring a more gender-di- customers approved of female Nafith employees’ responsiveness verse team, which a Harvard Business Review (HBR) study iden- and cooperativeness. This experience aligns with international tified as key driver for corporate success (HBR, 2019). research: a 2016 study by Sodexo found that growth was 13 per- cent higher and gross profit 23 percent higher for gender-bal- anced teams (i.e. those with a ratio between 40-60 percent) Enhanced staff retention and attendance (Sodexo, 2016). Since hiring more women, Nafith has had greater success in Nafith has also improved productivity levels since diversifying retaining staff and reducing expenditure on recruitment and the company’s workforce. According to management, female improving knowledge retention. In 2020, Nafith’s turnover rate staff members in the operations team have significantly outper- was 6.5% in 2020 – a marked decrease from the company’s turn- formed their male counterparts in terms of completing trans- over rate of 16% in 2017. Nafith’s staff retention levels compare actions. Indeed, this improved output has encouraged Nafith favorably with industry standards, being well below the logis- to consider hiring more women for the operations team, with a tics sector’s global turnover rate of 25% (DC Velocity & ARC Advi- view to achieving gender equality. sor). An International Public Review Management (IPRM) study found that higher rates of female employment tend to encour- age women to continue working in a company, which reinforces Nafith’s overarching aim of creating a more gender-diverse work environment (IPRM, 2017). Employee retention enables Nafith to retain valuable knowledge and maintain the relationships that staff members have built with clients. Maintaining institutional knowledge is especially important in Iraq’s logistics sector, where information and data are scarce. This makes staff knowledge one of Nafith’s most valuable assets. Nafith management also reported that staff attendance rates had improved by more than 50% since the company actively pursued a gender-diverse recruitment strategy. According to senior figures, this trend reflects stronger feelings of inclusion and belonging among employees. Nafith’s decrease in absen- teeism–from 13%, in 2017 to 6%, in 2020––is above the baseline established by one Deloitte study, which indicated that greater inclusivity in the workplace can increase staff attendance (De- loitte, 2013). Improved staff performance Nafith’s female employees have offered the company a greater range of perspectives in handling customer requests than exist- 8 90% of employees would “Based on my own experience, gender recommend employment in the diversity is vital not only for our own logistics sector to their female people but also for our client services relatives and/or acquaintances who and, thus, for our business.” are seeking employment. Mohammad Maher, Project Manager at Nafith Logistics 2021 Nafith Employee Survey Co. since 2005 WHAT’S NEXT FOR THE COMPANY LESSONS LEARNED Nafith is determined to continue to pave the way for hiring, re- Based on Nafith’s experience in promoting gender diversity, the taining, and promoting women in Iraq’s logistics sector. Long company offers the following lessons for other companies aim- term, the company aims to achieve a 1:1 women-to-men ra- ing to integrate more women in non-traditional jobs and roles: tio within its operations team. The company’s leadership has · Institutionalize gender diversity. Nafith has implement- pledged to continue listening to its female employees and ed various policies and corporate structures that ensure strengthening their visibility, ensuring that Nafith remains a support for women working in non-traditional roles be- leading industry figure for supporting female role models in Iraq. comes part of the company, as opposed to a temporary Nafith is currently entering a second phase of achieving the com- management decision. pany’s gender diversity targets in the Iraq branch. The second · Recruit talented women by making them feel com- phase aims to: fortable. Nafith has unlocked various commercial ben- · increase the percentage of female employees on the opera- efits from improving gender diversity by addressing tions team from 18% to 25%; barriers to females joining the company. Nafith is cur- rently reaping benefits from investing in female staff · invest in skills development by supporting for female em- members’ comfort, such as paying transport costs for ployees, including training sessions on management and a relative to accompany women to work. This upfront life-skills training; and expenditure promises to yield returns on investment as · pursue efforts to enhance community understanding of a more gender-diverse workplace increases long-term gender equality and the value of involving women meaning- productivity and innovation. fully in the workplace. · Speak with your company’s community. Nafith has in- vested heavily in reassuring the local community that women can safely and effectively work in non-tradition- al roles, such as in Iraq’s logistics sector. This approach has reduced social stigma against female employees and encouraged more women to apply for roles with Nafith. · Include men in gender diversity projects. Nafith man- agement realized that the company would be more co- hesive if male staff members understood the tangible benefits of hiring more women than before. Men have been shown data, such as shared KPIs, demonstrating that Nafith’s female employees contribute strongly to the company’s overall performance. 9 CONCLUSION Nafith has taken bold steps towards improving gender diversi- comfortable about working with Nafith. Crucially, this gender ty in a very challenging context. The logistics sector – already diversity campaign extended to allaying fears of those females’ male-dominated by global standards – has traditionally strug- family and community members, removing a once-formidable gled to attract female employees in Iraq, where social conven- barrier to female job applicants. Today, Nafith’s female staff are tions often preclude women from working in non-traditional doing more than pulling their weight – they are driving innova- roles. 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