Over 25 years of impact measurement – NESsT’s Performance Management Tool
An online report that measures social, environmental, and financial indicators at the enterprise level.
NESsT assesses its impact through the Performance Management Tool (PMT), a tool developed in 1999 to assist social enterprises in managing and measuring their businesses, social, and environmental performance.
More than 250 entrepreneurs around the world have used the PMT to measure their impact on an annual and quarterly basis– these entrepreneurs lead social enterprises that are diverse in geographies, legal entity types, impact areas, and business models.
Launching the Dignified Employment Survey
In 2018, NESsT sought to deepen its impact measurement by examining the qualitative metrics that revealed how people’s lives were changed by social entrepreneurship.
To gather qualitative data, NESsT sent its teams to meet the people its portfolio enterprises work with or employ in person. The meetings provided rich insights into the quality of their jobs. The fundamental questions that the survey attempted to explore are:
Are the jobs created by NESsT portfolio enterprises really improving the quality of people’s lives?
Have these people moved out of poverty?
Do they feel that their job is secure?
By speaking directly to the employees and suppliers of its portfolio companies, NESsT was also able to better contextualize impact numbers, with extended clarity on the impact of having a good job across different contexts, such as in different age groups, or types of households.
Since 2018, NESsT has conducted Dignified Employment Surveys every other year.
The 2023-2024 Dignified Employment Survey Results
In 2023, we outlined objectives that focused on those directly impacted by our work and the work of the social enterprises in our portfolio. Our survey, completed by NESsT portfolio managers and team members sitting down with the 531 respondents who participated, captures the following information:
Who are the direct beneficiaries of our work?
Are their jobs well-paid and secure?
How do they feel about their career opportunities?
How do they feel about their workplaces?
How does our work impact their families overall?
Is our work making a real difference in their lives?
Identifying these objectives, we also felt it was important to clarify that the Dignified Employment Survey is not:
An employee evaluation tool for our portfolio enterprises
Traceable personal data collection (all information was collected anonymously)
An audit performed by NESsT
Our results are compiled into 4 categories:
Demographics
Employment
Income
Gender
A new addition to our survey this year was to seek out testimonials from our respondents about what dignified employment means to them. We asked: “What is a dignified job?” Their responses had recurring themes of respect, fair compensation, and safety.
1. Demographics
We completed 531 surveys, a 37% increase in respondents from our 2021 Dignified Employment Survey. Survey respondents represented six of the seven countries in which NESsT currently operates – Brazil, Chile, Colombia, Peru, Poland, and Romania (Ecuador not surveyed). The respondents were 56% female and 44% male.
Looking at the educational background of our survey respondents, we identified most beneficiaries (55%) do not have a bachelor’s degree or college attendance, with 28% of respondents reporting having a high school degree, followed by 20% holding a bachelor’s degree.
Comparing the gender trends in education, more female respondents have higher-level education than male respondents.
Reporting on age, the NESsT portfolio works mostly with working-age adults aged 19-50, with the highest age range distribution being 30-39 followed by 19-29.
Our acceleration work throughout South America mainly targets people living and working in rural areas, addressing climate conservation while improving livelihoods in regions where sustainable economic opportunities are limited. In 2023–2024, we interviewed more people living in rural households than years prior, with 49% of people surveyed being from rural and suburban households.
NESsT’s work supports racially and ethnically diverse communities across Central and Eastern Europe and South America, including a large population of Indigenous Peoples, ethnic minorities, and Black and Quilombola communities.
One of our flagship initiatives – the NESsT Racial Equity Initiative – supports Black people in Brazil to access dignified work and gain financial stability and independence. Half of our respondents (50%) to our 2023–2024 survey identify as non-white (Black, Indigenous, mixed race, Roma, Asian, migrant, and other). Of the respondents, 13% preferred not to answer this question.
2. Employment
A key factor of dignified employment is a formalized agreement between employee and employer, whether through ongoing or seasonal contracts or invoiced work. Of the 531 people we interviewed, 90% report having some formalization of their work, which is 2% higher than our 2021 survey results. Making up the total includes 70% of workers who report having regular ongoing contracts, 37% higher than 2021-22 Dignified Employment Survey results. We see trends that indicate rates of formalized work are higher in urban settings, which is as expected.
The majority of people surveyed expect to grow in their careers and feel secure with their jobs.
One important insight was a strong sense of stability and perceived job confidence among respondents, with 90% expecting to keep the same job or remain in the same industry in the next year, which increased from 85% in the 2021-22 survey.
Compared to their jobs last year, 73% reported they are working in the same conditions as last year, 61% in the same company. 15% of the respondents reported improving their job, and 8% were not previously working.
Many of the social enterprises we work with prioritize job training and career progression as an integral part of their business practice, equipping employees with the skills and tools to advance in their roles. One example is Mamo Pracuj Foundation in Poland, which connects women to professional resources, including job counseling and coaching provided by career advisors and corporate volunteers.
92% of our respondents who were within placement models of business received training from the social enterprise, with 81% finding a job due to the training received. Of all enterprises included in this survey, 84% of respondents received training for their job with the social enterprise.
3. Income
A core focus of NESsT is working alongside social enterprises to ensure their employees and suppliers earn a stable living wage. Together with these companies, we drive sustainable improvements in income to create pathways to better livelihoods, supporting people and their families to gain financial stability and contributing to long-term community resilience.
Looking at annual income, 58% of those interviewed reported receiving a higher annual income than the previous year, 27% were receiving the same income, and 15% were receiving lower income.
The average income received from social enterprises makes up 82% to 86% of total salaries in urban and suburban areas, and 60% in rural areas, with additional variations dependent on type of employment.
The findings also show that the average income received from social enterprises accounts for 48-64% of the total household income for the beneficiaries. These numbers are lower than 2022 reports, where income from social enterprises represented 88% of the household income.
Our respondents reported an average income 192% above minimum wage. Income ranges from 116% to 287% based on job role, and there’s a disparity of income between men and women (236% for men and 164% for women).
Respondents also reported an average income 250% above the poverty line, with the highest percentage over in suburban areas (587%). The gender disparity here is more pronounced, with men reporting 318% and women reporting 180% above the poverty line.
4. Gender
We asked our respondents about equal treatment of men and women in the workplace. Of those who responded, 85% said yes, men and women receive equal treatment (88% women and 81% men). This was an increase from 77% answering yes in 2022.
Supporting our portfolio to develop action plans to drive gender equity across their enterprise and community
As part of our efforts to prioritize equity practices in the workplace, we support our enterprises to develop gender and inclusion policies. In 2023 we supported Bendito Residuo, a waste recycling enterprise in Chile, to develop metrics to capture gender dynamics across its organization, close gender gaps and improve gender diversity, and increase the representation of women employees in leadership in a male-dominated sector.
Over 90% of respondents to our 2023–2024 survey answered their workplaces provided some form of support for women in the workplace.
These services included access to safety training, daycare support, loans, or transportation support.
Regarding safety, 91% of our respondents stated they feel safe at work (94% women, 88% men). This percentage holds consistent with our results from 2021-2022.
When asking about formal grievance processes in the workplace, 40% of respondents are aware of their company’s grievance process, 33% don’t know about it, and 26% answered their company does not have a process in place. This is an increase in either awareness or institutionalizing of a process compared to 2022, when 24% answered yes, 35% answered no, and 40% answered I Don’t Know.
At NESsT, we invest in social enterprises that benefit people and the planet. By continuing to monitor the impact of our portfolio enterprises, we can assess if the work we do promotes a positive impact in the communities we serve.
Since 1999, the NESsT Performance Management Tool has gone through a number of iterations and remains central to our investment thesis and methodology.
Every year, we share the learnings derived from the PMT and the Dignified Employment Surveys with our portfolio and the public, helping entrepreneurs to improve day-to-day decision-making and long-term business and impact performance.
Contact Renata Truzzi, NESsT Acceleration & Impact Director, to learn more about monitoring dignified employment metrics.