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Purpose of the toolkit
The mandate of all employers' organizations (EOs) is to represent and support the interests of its members, be they large, medium or small enterprises. Unfortunately in some cases, EOs are not fully representative of small and medium enterprise (SMEs), which often make-up more than 90 per cent of enterprises in their countries. These EOs tend to be orientated to the needs of larger enterprises and do not reach out to SMEs, and the SMEs sensing that the EO is for big businesses, are not inclined to join.
 The purpose of this electronic toolkit is to change that. It has been developed jointly by the International Labour Organization (ILO) and the
International Organisation of Employers (IOE) to foster the inclusion of the interests and concerns of SMEs into all aspects of the operations and activities of employers' organizations (EOs). But this kit does not only carry a message; it also gives support to that message by suggesting how that engagement with SMEs can be achieved and what are some of the tools needed to achieve that objective.
Part of broader effort to strengthen employers' organizations
The toolkit is part of a broader effort on the part of the ILO, together with the IOE, to strengthen the capacities and expand the activities of employers' organizations around the world, but notably in developing and transitional countries. As such, the ILO's Bureau for Employers' Activities has also produced a four-part package called
The Effective Employers' Organizations. The guides contained in that package focus on governance, strategic planning, advocacy and revenue-building. That package and this toolkit complement each other and can be used together to strengthen EOs and to broaden their outreach among SMEs.
A target audience
This toolkit is designed for the managers, directors and staff of employers' organizations (and other business associations) that want to fully represent employers – all employers – in their respective countries.
What does the toolkit contain?
Mini-guides
 The kit is structured around four mini-guides that help your organization think about the key aspects of preparation, representation, advocacy and services. These mini-guides are easy to read and are not designed to tell you how to strengthen your overall operations, but they do suggest the main areas to concentrate on when you plan actions related to SMEs. The mini-guides provide links to the other elements of the kit.
Tool summaries
The summaries provide a two-page synopsis of over 20 tools, most of them developed by the ILO, that can help an EO attract and support SME members. These "tools" are guides, manuals and other aids that can assist your organization to, for example, analyse the policy environment for small enterprises, plan a recruitment strategy or offer training that improves productivity through better employee relations. Half of the tools are training materials that an EO may consider offering to improve the performance of its smaller members.
Self-assessment tools
The kit also contains three interactive self-assessment tools (one each for representation, advocacy and service provision). Your organization is presented with a short series of multiple-choice questions about SMEs, to which you respond based on your current situation. The tool then generates a response, assessing the organization's performance and offering suggestions for improvement.
Case studies
The kit contains more than a dozen short case studies outlining what has been tried and achieved by employers' organizations in various parts of the world. One case explains how the employers' organization in the Republic of Ireland created a differentiated membership structure so that small enterprises could choose between a more advanced industrial relations service with a higher membership fee, or could forego the service and pay a lower fee. Another case focuses on the involvement of the Employers' Confederation of the Philippines in the Big Enterprises – Small Enterprises programme designed to support sub-contracting linkages.
One of the more dramatic stories highlights how a business organization in Canada was formed after its (future) leader realized that the government planned to tax SMEs at twice the rate of large ones.
Four-part organization
The kit is organized around four phases or areas of activity that the EO should consider when developing its outreach to SMEs. The initial preparatory phase advises the staff of the organization how to present the case for SME outreach to the Board of Directors. The three other phase relate to the main activities of the organization: representation, advocacy and service provision.
Phase One: Seeking the Board's approval
The first phase advises the staff of an EO how to bring the issue of SMEs to the Board of Directors. This phase discusses the key points that should be raised, what data is needed as support and how the staff can respond to questions. For example, the staff can provide figures on the proportion of all enterprises in the economy that are SMEs and how much they contribute to employment and output. These figures can be compared with the proportion of SMEs that are currently members. The goal of the preparation phase is to get the "green light" or the "go-ahead" from the Board to develop a strategy and action plan for reaching out to SMEs.
Phase Two: Strengthening representing SMEs
This second phase focused on how to recruit and retain SMEs as members. A major problem in many countries is that the EO is perceived to represent only very large companies. When this is the case, the organization needs to break this perception, not only with words but with actions. For their part, SMEs will behave like discerning consumers: they will want to know how they can benefit from joining the employers' organization. Therefore, this phase stresses that the recruitment strategy needs to be linked with the overall SME outreach programme. The organization must be able to explain in concrete terms what it is doing (or plans to do) for its smaller members.
Phase Three: Advocating for SMEs
The third phase is focuses on how to design an appropriate strategy that combines the advocacy strengths and experiences of the organization with the concerns of SMEs. Key issues discussed are: how to determine what policies matter most to SMEs; how to ensure that SME issues are taken up by the key advocates of the organization; and whether to use a "soft" approach (working with the bureaucracy and policymakers) or a "loud" approach (putting pressure on politicians in the public arena).
Phase Four: The challenge of providing services to SMEs
 Service provision is a challenge because of its financial aspects. While many EOs have relied on donors to fund training courses and other services, most often this does not lead to sustainable service delivery. EOs need to cost their services, apply user fees and develop other financing techniques (i.e. a differentiated membership structure) to generate revenue. Many services, such as networking or basic information about topical issues, can be provided cheaply; but in the area of training EOs need to be more cautious. They should consider whether: to act only as a referral point for other service providers; to hire-in providers to provide training to members; or to offer services directly by their own staff. A fourth option is to avoid the area of training altogether. This is a worthwhile option for small EOs and those located in countries where the private market for training is competitive and well-established.
Access to the toolkit
The three versions are currently the same, although the internet versions (executable on-line, downloadable) will be updated and expanded in the future.
For further information or to order a copy of the CD-ROM please contact us.
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