Changing the World, One Worker at a Time
Hong Kong is a vibrant city filled with good food and a never-ending list of things to do. It’s an exciting place to be and I’m enjoying my time here as I’m learning more about the people and culture, though that invariably includes both the good and the not-so-savory details. An issue I learned about after my arrival is that Hong Kong has long been criticized for its violation of human and labor rights for foreign domestic workers. Many workers are or are at risk of being seriously exploited and mistreated because they have little education and little knowledge of their rights in a new country. Though the government has done little on this matter thus far, outside organizations like Fair Employment Agency (FEA, http://www.fairagency.org/) are stepping in to address the issues that domestic helpers face and to reform industry practices.
FEA is a non-profit employment agency for foreign domestic workers, and I am very happy to say that I have the privilege of interning with FEA this semester. I signed up for HKU’s Social Venture Management Internship Course wanting to gain tangible work experience while learning more about the space of social entrepreneurship. This experiential learning course allows students to work with social ventures to engage with real-life problems under the guidance of the faculty instructor and professional mentors. The course started with one social venture, Soap Cycling. Soap Cycling takes used and donated soaps (often from hotels) and sanitizes and recycles the soap for use in communities that need them the most. Not only does this prevent the spread of disease, but it also minimizes waste and keeps our resources sustainable. But besides unlocking the potential of used hotel soap, this course has allowed many students like myself to realize our own potential as agents for change.
I’ve always wanted to change the world but I didn’t know where to even begin. Seeing the political gridlock in a polarized U.S. Congress had dissuaded me from any do-good aspirations, but I’m learning that government policy isn’t the only way to effect social change. Since interning with the FEA, it’s been amazing to see first-hand how individuals can solve macro-level problems as well. It’s daunting to want to change a world with so many people and so many problems that it seems pointless to even try. That’s why stories of organizations like FEA are especially significant — to demonstrate that change is possible, even if you start by helping just one worker at a time.
The Problem
Many families in Hong Kong have domestic workers to help run households, especially in families where both parents work. There are about 333,000 domestic workers employed in Hong Kong alone. Because most workers come from countries outside Hong Kong (mostly from the Philippines and Indonesia), they have to use employment agencies to find an employer.
Under Hong Kong law, agencies aren’t supposed to charge workers more than 10% of their first month’s wages as placement fees. The problem is that many agencies ignore this law. They commonly charge fees upward of $10,000 HKD, which many domestic workers can’t pay up front. Workers have to turn to moneylenders (who are usually partnered with unethical agencies) for loans of approximately 50% APR. As a result, domestic workers are kept in a state of perpetual debt bondage. Consequentially, if a domestic helper is unable to pay off their debt, moneylenders frequently harass employers for payment.
The situation on the employer side isn’t much better. Local employers also turn to agencies to find helpers, and employers are charged thousands of dollars to get a worker placed in their home. This means that agencies have no incentive to find a good match between employers and helpers; if an employee leaves or is terminated, an agency can make more money by placing a new helper in the home.
The result is a lose-lose situation for both employers and employees.
Fair Employment Agency’s Solution
FEA’s vision is to “set a new market standard for ethical recruitment practices of migrant labour throughout Asia.” FEA doesn’t charge workers a placement fee, thus eliminating the need for third-party moneylenders. Only employers are charged a service fee which is at or slightly below market rate. As such, FEA is incentivized to match employers with helpers who have skills suited to the employers’ needs, not helpers who have greater ability to pay.
Beyond any monetary incentive, FEA is genuinely dedicated to providing quality and transparent services to both employers and employees. This is in large part due to the wonderful team at FEA. Working with FEA staff has been an absolute joy the past month; I have not seen as many smiles or heard as many laughs in other workplaces I’ve visited. Everybody has been extremely welcoming and goes out of their way to answer any questions I have. With a cohesive team united under a compassionate humanitarian mission, it’s not hard to see why FEA has been so successful.
Since its doors opened in September 2014, FEA has fairly placed about 400 Filipino domestic workers in jobs. That means 100 years of salary that workers don’t pay to corrupt agencies before supporting their families. Though FEA’s business model has proven itself profitable, the real bottom line is in the social impact that FEA has and will continue to make in Hong Kong and across Asia.
FEA is growing quickly and it’s always working on a number of projects. This year, FEA is on track to place 800 more domestic workers. For a sense of scale, FEA estimates that the largest employment agency in Hong Kong places about 5,000 workers each year. FEA currently only places workers from the Philippines but it is also expanding to other countries like Indonesia. It is also building a training center in the Philippines to equip helpers with necessary work skills and to prepare them for moving and transitioning to Hong Kong. I’m currently working on collecting and analyzing data to gain insight on the success of employer-employee matches and on how FEA services can be improved. I am also responsible for assessing FEA impact on the community, industry, and current and potential employers and employees. The fun part of working at a growing social venture is that I’m exposed to all aspects of operations, so besides my official duties, I get to help out with a variety of events and activities like the FEA mobile app launch. It is really something to see how everybody’s contributions come together to create a self-sustaining model of ethical business practices that is already pressuring for comprehensive industry reform.
As recently as two years ago, Fair Employment Agency was just an idea floating around in the head of an HKU law professor. Today, it is a thriving organization committed to bettering the lives of both native Hong Kong residents and migrant workers. Working with FEA has allowed me to see the substantial tangible impact I can have on a community. I’m excited to see where my work will take me and FEA this semester and how FEA will grow over the next several years. If the world is even a tiny bit better as a result of my efforts, then I’ll be glad to have done it.
