Port Moresby, Papua New Guinea, May 7, 2024 — A new report finds that businesses in Papua New Guinea (PNG) are losing the equivalent of 13.7 working days per employee per year, or an average annual cost of 1.3 million kina ($330,000) per company, due to a lack of support for working parents, highlighting a significant opportunity for businesses to boost their family friendly workplace policies.
Published by IFC, in partnership with the Business Coalition for Women (BCFW) and support from the governments of Australia and New Zealand, the first such study in the country -- Tackling Childcare: The Business Case for Employer-Supported Childcare in Papua New Guinea -- engaged with 29 PNG businesses collectively employing more than 13,000 people to assess the experience of working parents in the private sector.
The study recommends interventions in the workplace alongside government policy updates that would reduce lost workdays and drive broader economic gains including flexible work options and making workplace adjustments such as supporting breastfeeding solutions. The study predicts that these and other measures may boost female employment, enhance family earnings, and lower child malnutrition risk.
"We have found that working parents in PNG face significant challenges, which in most cases inevitably impacts business productivity," said Judith Green, IFC Country Manager for Australia, New Zealand, Papua New Guinea and the Pacific Islands. "This groundbreaking study shows PNG's private sector can create positive changes that support both working parents and businesses, which ultimately helps drive sustainable economic growth."
The study additionally found that 75 percent of working parents acknowledge their childcare responsibilities impact their work, with 43 percent noting it has led to career-impacting decisions for them or their partner. Women were found to be more likely than men to quit jobs, turn down promotions, or reject job offers because of the difficulty in balancing work and childcare.
"Access to childcare can have a profound impact on the lives of working parents and their children in Papua New Guinea, particularly for working mothers, who often contend with additional social and geographic challenges." said Diane Barclay, Minister-Counsellor at the Australian High Commission. "Supporting women's ability to enter and remain in the workforce will boost productivity and female participation, which in turn will drive economic growth, increase family earnings, and improve childhood outcomes."
"Better support for working parents in PNG is a win-win for businesses, families and the economy," said Evonne Kennedy, Executive Director of the PNG BCFW. "When the private sector provides innovative opportunities, backed by policy and regulation, parents can better flourish in their careers while also caring for children, promising stronger families, communities and economy."
"At the moment under the 1978 Employment Act parents working in the private sector have no entitlement to paid parental leave" said World Bank PNG Country Manager, Khwima Nthara. "The report calls for updated legislation to match the changing needs of families and businesses in PNG."
This study is part of a series IFC is conducting in emerging markets to highlight the business case for employer-supported childcare while also outlining best practices. Building on this research, IFC's Global Tackling Childcare Advisory program works with companies across regions and sectors to aid the implementation of family-friendly workplace policies that go beyond childcare to include flexible work arrangements, paid leave, and breastfeeding support.
Notes to Editors:
Download a copy of the report and factsheet.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
About PNG Business Coalition For Women (BCFW)
Business Coalition for Women is a non-profit organization that aims to help the private sector overcome challenges to women's participation in the Papua New Guinean workforce through advocacy and prevention strategies to addressing violence, promoting women's leadership and by implementing human resources policies and processes to help companies recruit, retain, and develop their female staff. 77 major PNG companies are members of the Business Coalition for Women.
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