Shopping at Diane & Geordi, there’s a good chance you’ll be served by a refugee from Venezuela. The Colombian apparel company actively recruits refugees, both as a commitment to doing good for the community and because they are top performers on the sales floor and in the factories.
The company has a high degree of success hiring Venezuelans, according to Angel Diaz, human resource manager at Diane & Geordi. He sees them as an opportunity, so often demonstrating a high sense of commitment, a desire for self-sufficiency, and a goal of working legally in Colombia.
Diane & Geordi is a global leader in embracing refugees and migrants but is far from the only company to do so. In a recent study from the World Bank’s Private Sector for Refugees initiative, findings from interviews with 65 stakeholders, including private companies, point to a consensus that refugees tend to be strong employees. The paper shows that companies hire refugees both out of a sense of corporate responsibility and, often, because they bring dedication, skills, and talent – as well as valuable knowledge of the refugee market.
In Latin America, Venezuelans experience relatively favorable conditions for social inclusion and employment. A shared language and cultural characteristics in common no doubt contribute to this. But good, refugee-embracing policy is even more important. In Colombia, refugees have the right to work and access to basic services and cash transfers. In Europe, EU countries have waived restrictions for Ukrainian refugees under the Temporary Protection Directive, offering the right to work and move, housing, medical assistance, education, and bank accounts.
In many other places, things can be more complicated. Refugees are often barred from working and have spotty access to financial services. This is despite the fact that they have much to offer both businesses and their host communities, as the paper shows.
Policymakers in host countries need to reexamine such laws and regulations if they are to truly support refugees and leverage their strengths. Some countries do this, like Colombia. In addition, policymakers need to develop approaches for integrating refugees that contribute to success. In Sweden, for example, refugees are welcomed into society by prioritizing language training soon after arrival. Research indicates that such an approach can significantly improve employment outcomes.
From Diane & Geordi to Ben & Jerry’s to IKEA, there are many companies that recognize the need and so operate special programs to recruit refugees. Around the world, there are 122.6 million forcibly displaced people, of which 43.7 million are refugees. Fleeing conflict and violence, climate-induced catastrophes, and persecution, among other things, these forcibly displaced people typically come to their new homes with a drive to get their lives back on track. They typically want to get off humanitarian assistance and on to self-sufficiency. As a previous PS4R study and an online training module show, that can also mean starting or transplanting entrepreneurial ventures as well as seeking employment with established companies.
Connecting refugees and the forcibly displaced with economic opportunity is not always easy. For refugees, there can be a number of hurdles in their host countries, including legal frameworks that restrict them from working. Limitations on their freedom of movement, lack of documentation, and a skills mismatch with the local labor market can also cause problems. Host communities often have complicated feelings toward the forcibly displaced – while many are welcoming at the outset, over time, a competition over jobs can create tensions.
Our research suggests, and the Diane & Geordi example illustrates, that host communities can in fact benefit from embracing refugees. In addition to being good employees (or entrepreneurs), the benefits of refugee employment can include increased economic activity, higher wages, and stronger social cohesion. When refugees and their hosts work, side by side, attitudes and behaviors can improve.
Diane & Geordi has a leg up in employing refugees. The brand is already big in Venezuela and its name attracts refugees as both employees and customers. Other companies might start from a different place but those that make the effort – backed by good policy from governments – can find that engaging refugees pays off.
