Introducing Piece-rate Pay in Bangladeshi Factories: Does Managerial and Worker Training Prevent Pitfalls and Improve Worker and Factory Outcomes?

We are evaluating two training programs in Bangladeshi apparel and footwear factories. The first program is delivered to factory management and focuses on identifying and preventing sexual harassment, creating promotion opportunities for women, increasing supervisor accountability, and introducing pay incentives in a thoughtful way. The second program is delivered to the entire workforce via a train-the-trainer approach, and focuses on rehumanizing workers in the eyes of supervisors and managers.

2024-05-01

2025-03-10

We are anticipating the following outcomes.
Rehumanize workers in the minds of managers/supervisors so that they accurately process information related to the relationship between abuse of workers and firm performance.
Following rehumanization, managers accurately interpret data about labor management practices and firm outcomes.
Factories develop organizational norms related to sexual harassment, women as supervisors, supervisor accountability for decisions and clear communication about pay.
The factory introduces high performance systems such as incentive pay, accountability and promotional ladders without adversely affecting workers.

Rehumanization is indicated if managers and supervisors believe that workers can feel physical and emotional pain, are intelligent, think at a high level and understand complicated ideas and workers feel less angry, frustrated small or unimportant in interactions with supervisors and more willing to voice opinions at work.
Information processing is indicated by accurately recalling details about HR systems and worker reports and manager beliefs about the relationship between labor management practices such as paying workers as promised, treating workers respectfully and providing safe and comfortable working conditions with firm performance including product quality and productivity.
The factory has clear policies concerning the review of supervisor decisions related to workers and supervisors believe that they are accountable for decisions, has clear rules about promotion that value the traits typically possessed by women and women are more likely to be promoted, and has low tolerance for sexual harassment.
Firm performance is measured by productivity, product quality, order size, relationship with buyers, absenteeism, late-coming and workforce turnover. Positive outcomes for workers include reduced sexual harassment, verbal abuse, accidents and injuries, excess hours and burnout.

Factories sustain and take ownership of investments in humane workplace investments after the intervention ends.

Sustainability is indicated when firms undertake investments that are not donor supported, employ high performing management techniques, are socially compliant, have reduced workforce turnover and high job satisfaction.

The study will include factories in Dhaka and Chittagong, Bangladesh. In Dhaka, we will start with a baseline survey in all factories, then our training partner will implement the rehumanization training (known as Restart) in Batch 1 factories. Next we will do a midline survey in all factories, then Batch 2 factories will receive Restart training. Next we will do an endline survey in all factories. Finally, all factories will receive the management training (known as BBW). In Chittagong, all factories will receive the Restart training, followed by a baseline survey, then Batch 3 factories will receive BBW training. Next, all factories will have a midline survey, and then Batch 4 factories will receive BBW training. Finally, all factories will have an endline survey.

The 8 factories in Bangladesh will receive one of two training protocols.

Four factories in Chittagong will participate in a study of the worker portion of the training. Before any training occurs, participating factories will be randomly assigned to one of two batches: batch 1 and batch 2. A baseline data collection will be conducted in all participating Chittagong factories. Factories in batch 1 will then receive worker training. After a midline data collection, factories in batch 2 will be provided the worker training. Once worker training is complete, an endline data collection will be conducted. Chittagong factories will then be optionally offered the manager portion of the training.

Factories in Dhaka will participate in a study of the manager portion of the training. Prior to any manager training, all factories in Dhaka will complete the worker portion of the training. Participating factories will then be randomly assigned to one of two batches: batch 1 and batch 2. A baseline data collection will be conducted in all participating factories. Factories in batch 1 will then receive manager training. This will be followed by a midline data collection. After the midline, manager training will be conducted in factories in batch 2. The study ends with an endline data collection.

Not available

Randomization done in office by a computer.

Randomized at the factory level.

Yes

8 factories

Participants in the training will be 160 factory managers, supervisors and workers. Participants in the survey will be 1600 workers, supervisors and managers.

Participants in the training will be 160 factory managers, supervisors and workers.
Participants in the survey will be 1600 workers, supervisors and managers.

1760 participants with three observations each.

For our variables of interest, we have in other studies measured a standard deviation ranging from a low of 1.06 (necessitating a sample of 179) to a high of 49.1 (necessitating a sample of 1665) to detect a treatment effect at the 5% level.