Jobs Created at Directly Supported/Financed Enterprises: Low-Income Areas (PI2251)

This metric is intended to capture jobs created at supported organizations and in low-income areas during the reporting period.

Organizations may choose to disclose employment by function (for example, operations and maintenance, construction, or land conservation). To align to the HIPSO (Harmonized Indicators for Private Sector Operations) indicator Direct Jobs Created by the Investment (Operations and Maintenance), organizations should include under Jobs Type (OD0660) only the options, “Hiring: Jobs hired through organization itself” and “Hiring: Jobs hired/supported through a third-party and directly related to the organization’s operations and maintenance of company.”

The three metrics for jobs at supported/financed enterprises relate to one another, as follows. Jobs Maintained at Directly Supported/Financed Enterprises: Total (PI5691) and Jobs Created at Directly Supported/Financed Enterprises: Total (PI3687) sum to Jobs in Directly Supported/Financed Enterprises (PI4874). For example, if an investor provided a loan to a small business that had 10 employees at the time the loan was provided and 15 employees as of the end of the reporting period, Jobs Created at Directly Supported/Financed Enterprises: Total (PI3687) would be 5; Jobs in Directly Supported/Financed Enterprises (PI4874) would be 15; and Jobs Maintained at Directly Supported/Financed Enterprises: Total (PI5691) would be 10.

Organizations can refer to the glossary for additional information on defining low-income areas.

Direct jobs in the context of this metric are defined according to the scope of the project (for instance, jobs created at a company that receives investment), following project logic and objectives. For some types of financial intermediaries, organizations should footnote a clear definition of direct jobs. For instance, if measured using a capacity-building approach, direct jobs supported are identified at the direct, operational level. If defined using an economic impact approach, direct jobs supported are identified at the level of the final beneficiary (e.g., SMEs or investees).

While this metric requests data on full-time equivalents (FTE), organizations are encouraged to break down these data for full- and part-time positions supported/financed. Most companies break down their headcount into full- and part-time positions, which investors often translate into FTE. For translation from headcount to FTE, organizations should refer to the following guidance, as well as the IRIS glossary term on full-time equivalent. In brief, in calculating the number of full-time equivalent jobs, part-time jobs should be converted to full-time equivalent jobs on a pro rata basis, following local definitions (for example, if the standard working week equals 40 hours, a 20-hour-per-week job would be 0.5 FTE). Both full- and part-time jobs should be calculated based on the number employed as of the end of the reporting period. Seasonal or short-term jobs should be prorated based on the time worked during the reporting period. (For example, a full-time position for three months at any point during the reporting period would be 0.25 FTE.) If information about hours is not available, organizations may equate two part-time jobs to one full-time job for this calculation. Note that, in the United States, the U.S. Treasury Department defines a working week as 35 hours.

If there is significant seasonal variation in the number of workers, organizations are encouraged to average the number of FTEs over the reporting period for temporary workers, using the FTE calculation above. Where companies employ piece-rate workers, consider the headcount of the number of workers paid piece-rate and estimate the proportion of FTE represented by that category of workers (e.g., if there are 200 piece-rate workers on site each day for 6 months of the year, then FTE = 200 x 6/12 = 100). Similarly, if an organization has many workers on variable hours or contracts, including day laborers, organizations are encouraged to include the average number of workers on a typical day (total over 24 hours, if shift work), as well as the proportion of the year those employees are working.

Organizations are encouraged to report other job-related metrics to assess the quality of jobs created. Examples of these include Worker Safety Policy (018001), Employment Benefits (OI2742), Employees Trained (OI4229), Flexible Work Arrangements (OI7983), and Employees: Minimum Wage (OI5858).

In some contexts, this metric can serve as an indicator of whether the outcome being sought by an investor or organization is occurring (the WHAT dimension of impact). For more on the alignment of IRIS metrics to the five dimensions of impact, see IRIS+ and the Five Dimensions of Impact (https://iris.thegiin.org/document/iris-and-the-five-dimensions/). No single metric is sufficient to understand an impact; rather, metrics are selected as a set across all dimensions of impact. When possible, the selection of metrics to measure and describe the five dimensions should be based on best practice and evidence.