Impact Sourcing Chapter UK&I

Mapping digital employment opportunities for refugees

Hiring refugee talent remotely is both good business sense and socially beneficial. How can the business community in the United Kingdom lead the charge?

By Jennifer Ghikas, Senior Policy Officer, UNHCR United Kingdom

The world of work is changing in profound ways. In the next few years, the number of jobs that are global and digital — jobs that can be performed from anywhere, using a computer — is expected to jump 25%. The United Kingdom is one of the countries responsible for driving this trend; as the second-largest demand country after the United States, it accounts for more than 8% of global demand for online platform workers. The country also boasts a thriving domestic technology and innovation sector with ambitious goals for growth requiring a steady flow of talent. This represents a key opportunity for refugees — and refugees are a significant potential talent pool for UK businesses.

Digital work for people forced to flee is a realistic way for the private sector to improve refugee self-reliance and ease pressure on host countries, in accordance with the core objectives of the Global Compact on Refugees and the Sustainable Development Goals. Access to the digital economy transforms the refugee experience by channelling incomes across borders to refugee communities, enabling them to support themselves and contribute economically while also benefitting business by addressing global talent shortages.

UNHCR, the UN Refugee Agency, has been working to understand ways to support refugees into online work for the benefit of businesses and refugees alike. UNHCR’s Digital Transformation Strategy recognises the range of opportunities for the forcibly displaced due to growth in the use of digital channels and associated technologies. UNHCR — as part of a Prospects Partnership project on the Promotion, Inclusion and Protection of Refugees in the Gig Economy, funded by the Ministry of Foreign Affairs of the Netherlands and implemented in collaboration with the International Labor Organization — has researched the experiences of refugees seeking to access online work and documented emerging practices that support access to the digital economy in supply countries.

Now, we’re working to map and analyse the perspectives of businesses and employment partners in the UK who could have a role in digital employment for refugees. The UK is the focus for this initial scoping exercise due to the strength of its business and tech sectors, its significance to the global digital economy, and existing UNHCR partnerships with private sector actors established through its national fundraising partner UK for UNHCR. Lessons from this exercise will inform our work in the UK to grow digital jobs for refugees, but it will also support further scoping activities and other related work in countries around the world.

Filling key UK talent needs

Today, the combination of dwindling funding for humanitarian and development work alongside ever-growing humanitarian needs makes the support of private business more critical than ever to reduce aid dependency and support refugee self-reliance. Evidence suggests that drawing on refugee talent pools can also be highly beneficial to UK businesses, filling key talent gaps while demonstrating responsible business practice. For example, UK consumers are more likely to buy from companies hiring refugees77% of large businesses in London said it was likely they would hire refugees in the future, and 65% of London businesses who employed refugees said they primarily did so to provide support.

Sectors that can benefit from a remote work force, such as creative industries, digital and technologies, and professional and business services, have been prioritized by the government because they offer the highest growth opportunity for the economy and business. It is anticipated that there will be 1.4 million new jobs in the UK by 2035, with the strongest growth anticipated in business and other services. Digital and computing occupations are projected to grow by 6–13%, while it is estimated that digital skills shortages are costing the UK economy £63 billion a year in lost growth potential. Many of the services in which the UK enjoys a comparative advantage can be exported digitally, and labour market opportunities in the digital services trade have been highlighted.

UK consumers are more likely to buy from companies hiring refugees, 77% of large businesses in London said it was likely they would hire refugees in the future, and 65% of London businesses who employed refugees said they primarily did so to provide support.

The global refugee population of 32 million contains talent pools well suited to the UK market. People forced to flee — many of whom are highly skilled — could help to address UK talent gaps in artificial intelligence, software development and engineering, marketing and other digitally deliverable services. Refugees bring with them knowledge of global markets as well as diverse insights, and they are a motivated and loyal workforce with high retention rates. With analysts suggesting that future workforces will require agility and the ability to cross-skill and operate across different functions, refugees — who are adept at overcoming obstacles — often bring the necessary adaptability, resilience, and entrepreneurial spirit.

Existing models to engage remote refugee talent

Tools and expertise on managing remote work have advanced significantly since the COVID-19 pandemic. Data shows that, in the UK and US, rates of hybrid and remote jobs have stabilized — at around 30% for hybrid and 10% for fully remote. There are a variety of different models for engaging remote employees, each of which suit the different structures and interests of businesses. Global mobility and remote work sectors have developed tools to streamline the process of managing the compliance risks associated with remote hiring, and experience managing global workforces is becoming increasingly routine.

A direct remote hiring arrangement could be utilised and may be considered for refugees located in a country where a business already has an established presence. Alternatively, Employer of Record providers are third-party organizations that take on the legal and administrative responsibilities of employing workers on behalf of another organization. Other flexible employment models can be used to access refugee talent remotely, such as online labour platforms, individual contractors, and/or business process outsourcing intermediaries, who provide access to pre-vetted talent.

Feedback from businesses and partners in the UK suggests that companies with flexible internal structures and talent strategies are likely to have the interest and ability to capitalize on remote refugee talent. Businesses with remote and flexible working arrangements in place as well as small/medium-sized and social enterprises are thought to have the necessary agility within their systems to consider different remote hiring models. Refugee entrepreneurs and immigrant founders, who make up 40% of UK startups, are also likely to have the motivation and flexibility to engage remote refugee talent.

Larger businesses, who may find it hard to adopt direct remote hiring practices, can use existing contingent workforce channels to access refugee workers through outsourcing partners. In the UK, it is estimated that 48% of companies are already outsourcing work and the inclusion of refugees within talent strategies via an impact sourcing model is a practical method for business to benefit from talent while helping refugees access livelihoods.

UNHCR partners with intermediaries who are working with refugee communities to build talent pipelines and have found ways to help global employers to de-risk and safely harness the benefits of global refugee talent. These experiences have demonstrated that methods for refugees to meet the talent needs of UK employers do exist and that, with clear direction and better linkages between refugee communities and employers, there are opportunities for expansion.

Unlocking remote refugee access to the UK labour market

In countries of talent supply, UNHCR and partners are developing the enabling conditions for refugees to embark on digital work through supportive digital infrastructure, financial systems, regulatory environments and documentation. In the UK, the diverse business community — many of whom are interested in pairing economic growth with social impact — could be the early adopters who benefit from scaling up remote refugee hiring practices.

UK policy enablers could unlock refugee access to the labour market through industry-led advocacy that is mindful of the benefits and potential of refugee talent. UK trade associations, academia, and business leaders are powerful and active influencers of government policy; they could advocate for clarity on regulations related to flexible working and the gig economy, better forecasting capabilities to anticipate labour market needs, and evidence of the positive business and social impacts of a wide and diverse talent pool including remote hiring arrangements.

UK corporate recruitment, legal, and human resources actors can help to drive scale by mainstreaming remote refugee talent within talent strategies and systems. This could be achieved by raising awareness on how to identify remote refugee workers, offer decent work standards through remote models, and align remote refugee hiring with UK regulatory requirements. Guidance on ways to facilitate access to refugee contingent workforces through impact sourcing models could also be explored.

Actors focused on skills development in the UK can connect with refugee talent pipelines outside of the UK to ensure that capacity building is aligned with UK market needs and skill gaps, thereby increasing remote employment prospects. Computing and tech trade associations can offer training and certification relevant to the UK market. Employability training and mentorship tailored to the UK workplace would help refugees connect with employers, strengthen workplace language skills, and bridge into relevant professional networks. Closer linkages between UK actors responsible for skills development and refugee talent pipelines could also inspire confidence for the use of skills-based hiring methods and flexible approaches to education and certification requirements.

Building the UK’s remote refugee talent ecosystem

Digital inclusion gives refugees hope and the opportunity to rebuild lives through connections with the outside world, online learning, and — critical to this article — digital work. In today’s digital world, the possibilities for global employers to be part of this transformative employment journey have drastically expanded in scope.

Our scoping exercise to understand the perspectives of partners in the UK who could have a role in digital employment for refugees is in its early stages. In the months ahead, we plan to break down barriers to online work in select refugee hosting countries, provide work infrastructure and skills building opportunities, and build direct links to opportunities with employers in the UK and elsewhere to further test the potential of digital employment.

Digital and technological trends, labour market needs and the benefits of working with refugees all suggest that remote refugee employment is an inevitable component of future digital workforces. A UK talent demand ecosystem could proactively harness the future potential of remote refugee talent — who will be its driving members?

Ready to boost your business by exploring how to hire refugees remotely? Find out more about our work on digital employment and get in touch with us at hqdiinnov@unhcr.org.

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