Prioritizing Worker Voice
We believe that a skilled, valued and engaged workforce is key for growth and sustainability. We want to empower suppliers to engage with and value their people because we know that high employee engagement leads to a more efficient, agile, and committed workforce which results in beneficial outcomes for both the individual and the organization.
Not only are engaged workers more likely to have a greater feeling of wellbeing, but they are also more likely to be more productive and have lower rates of absenteeism. Having an engaged workforce is proven to fundamentally shift overarching business issues such as compensation, overtime, and workplace conditions.
We developed and implemented the Engagement and Wellbeing (EWB) Survey to measure the level of engagement and experiences of workers employed by suppliers. While we have been scaling the deployment of this survey to reach more facilities across our extended supply chain, measuring worker voice is just the start. We also are actively supporting suppliers in building capabilities that will increase engagement. This approach is foundational to a future where we continue to grow with suppliers that value and engage workers.
We support suppliers in implementing pragmatic, evidence-based and measurable practices to increase engagement and have set an ambitious target for 2025. By 2025, we expect 100% of strategic suppliers to be measuring and improving the engagement of the people making our products.
We set this target because we believe an engaged workforce is one where people are valued and want to positively contribute. In addition, the work environment must be physically and emotionally safe, with management actively striving to create that safe environment.
To achieve this target, we’re focusing our work in three key areas.
Our goal is to reach 100% of strategic suppliers. The more suppliers we can reach, the better grasp we will have of the whole industry and the more likely we will be able to support positive change moving forward.
We developed the EWB Survey to measure engagement based on the experiences of individuals working in supplier facilities. The EWB Survey highlights areas where workers already feel supported and engaged and helps identify opportunities for supplier management to improve worker engagement.
The survey was extensively piloted and tested, in collaboration with suppliers and other organizations, to make sure the results were statistically relevant, actionable and successfully painted a comprehensive picture of the current status of engagement in a facility.
Recognizing that no two suppliers are the same or at the same point in their worker engagement and wellbeing journey, we plan to meet them where they are. NIKE’s guidelines drive a standardized approach and enable supplier ownership and accountability in this process. We have a robust network of vendors who leverage mobile and tablet technology to deploy these surveys digitally, enabling rapid feedback on results and more potential to integrate into their worker-management communication systems.
We support suppliers in building capabilities that help increase engagement. We continue to evolve tools and advance capabilities to help suppliers convert the insights from their EWB Survey into actions that positively impact workers. These include the EWB Action Planning Guide, which helps facilities develop and implement a process for converting insights from workers into action and embed these practices into their human resources management systems.
By focusing on increasing worker-management communications, investing in strategic human resources management and lean management frameworks, elevating a Culture of Safety, and employing a valued-worker centric view to program implementation, we help worker engagement increase and businesses thrive.
In addition, we see value in collaborating with other like-minded companies to create and distribute tools and programs that build worker engagement and wellbeing.
Grievance Mechanisms
Nike views it as critical that workers have access to effective channels through which to raise grievances when the arise. We have a few grievance mechanisms available to workers, which include:
- Supplier grievance mechanisms: We require suppliers implement an effective grievance process that enables workers to raise their concerns regarding their experience on the job, such as working conditions, company policies and procedures, and terms and conditions of employment. Because Nike carefully selects its supplier base, this step is generally effective at remediating the issues raised, removing the need for subsequent mechanisms where responsible suppliers are involved. The CLS requires that in order for the supplier’s grievance mechanisms to be “effective,” certain minimum requirements must be met. For example, grievance mechanisms must be confidential, time-bound, non-retaliatory, transparent, available through multiple channels, and publicized to workers. Suppliers are also expected to measure the effectiveness of the grievance process, and to document and track grievances to ensure that a timely response was provided. These requirements align with the effectiveness criteria under the Guidelines (which are based on the UNGP’s effectiveness criteria). Suppliers’ grievance processes are assessed during SLCP assessments and Nike audits.
- Speak Up Portal: Nike’s “Speak Up” Portal, which can be accessed anytime online or by phone, is available to Supply Chain Workers to report concerns directly to Nike. Workers in Nike’s supply chain have used this portal to raise concerns, and Nike has investigated them. In line with OECD Good Practice, Nike looks for ways to continuously enhance its diligence program, including by continually reinforcing the effectiveness of its grievance mechanisms.
- FLA Third Party Complaints Mechanism: Nike participates in this multi-stakeholder complaints mechanism which is useful as a means of increasing leverage in situations where individual organizations approach the FLA with concerns or when Nike is not the only buyer for a factory. The Third Party Complaint procedure allows any person, group, or organization to report serious violations of workers’ rights as a tool of last resort when all other channels have failed. Nike seeks to address and remediate credible and substantiated complaints raised through this mechanism, where sufficient details are provided for Nike to conduct a proper investigation into the relevant allegations that could lead to remediation or another meaningful resolution. Outcomes of the procedure have included reinstatement of unfairly dismissed workers with back pay, recognition of trade unions, establishment of training and education programs for management and workers, and improved relations between workers and management. For example, in 2019 the FLA assessed that of 51 reported violations, Nike worked with suppliers to enable them to completely remediate 75% of the violations, following which Nike validated the remediation.