Provide technical assistance to conduct research on incentives for SMEs to contribute to social insurance schemes in the framework of the Estidama ++ Project in Jordan.

1. Background

 

The Government of Jordan has made significant efforts in extending social security as part of its medium-term development agenda. Despite this progress, the number of unregistered workers remains large, and the extension of coverage of social security to vulnerable workers is hampered by a number of operational and financial barriers to workers. Only a quarter of Jordanian female workers (and even fewer non- Jordanian female workers) are registered in social security, compared to three-quarters of all working Jordanian men. Lack of access to social protection is particularly concerning for non-Jordanian workers, with an estimated 80% of non-Jordanian workers not being registered with the Social Security system.

Building on the regulatory framework of the Jordan Social Security Corporation (SSC), the ILO’s Estidama++ programme has been designed as a new facility for synergetic response to support SSC’s previous initiatives on ensuring greater inclusiveness of social protection and addressing structural imbalances in coverage, while enlarging the scope of Estidama that is targeting formal workers regardless of their nationality, legal or migration status with a special focus on refugees.

In working towards this overall development objective, the Estidama++ programme design will directly support vulnerable workers to participate in the Jordanian SSC by:

• Providing a contribution subsidy and coverage reward to incentivise registration and reduce the financial barriers to support vulnerable workers to make their contributions over the course of the project.
• Institutionalising the Estidama++ programme and strengthening wider legal and regulatory frameworks to support the extension of social protection to vulnerable workers.
• Undertaking outreach campaigns to create awareness around social insurance rights and the Estidama++ programme.

While the focus of Estidama++ in this first step is on incentivizing registration of workers and formalization of SMEs to increase outreach and inclusiveness of the social protection system, the sustainability and success of the programme in the long run will also depend on employers’ willingness to support the system, and registration of their workers under the scheme. Estidama++ is therefore in parallel already thinking about possible incentives for employers to support registration of their workers and/or ways to reinforce such incentives to stay longer in the system. As the bulk part of workers, and particularly non-Jordanian workers, is employed by SMEs, Estidama++ will need to think in particular about possible strategies to reinforce or create incentives for SMEs to contribute to the social security system and transition to formality.

Within this framework, the ILO seeks to hire a national consultant to support an action-oriented research to identify conducive sectors for implementation and to better understand market actors’ behaviours as well and existing and/or potential market incentives, which will inform the design of systemic and adapted interventions for Estidama++. These terms of reference details out the activities, tasks and objectives related to the delivery of this assignment.

 

1. Objectives of the Assignment

 

The national consultant will support the ILO team in conducting an action-oriented research for the Estidama++ project in Jordan. The research will be focused on:

1. identifying sectors or value chains in Jordan where the appeal for SMEs to contribute to social insurance is highest, including for non-Jordanian and female workers, and that therefore can be targeted by Estidama ++ to increase sustainability and scale of the programme;
2. analysing sectors’ dynamics, actors’ behavior and practices, as well as the key rules, regulations and norms influencing the incentives (and disincentives) of employers and workers to contribute to insurance scheme in these sectors; and
3. designing schemes in selected sectors that will unlock, reinforce and/or create additional incentives for SMEs to contribute to social insurance schemes for their (non-Jordanian, female and youth) workers.

To achieve the above-mentioned objectives, the consultant and the ILO team will apply the ILO’s ‘value chain development for decent work’ and the ‘Approach to inclusive market systems for Refugees and Host Communities (AIMS)’ methodologies and adjust these in a way that will place SMEs and their incentives to contribute to social insurance schemes at the centre of the research.

 

1. Activities

 

The assignment will focus on, but not be limited to, the following steps and activities:

 

Step 1: Preparation and sector selection

1. Kick-off: The consultant will participate in a kick-off call with the ILO research team, which will include an onboarding training on the ILO VCD methodology. Timeline for the assignment will be defined and the terms of collaboration between the national consultant and the ILO team in carrying out the research will be clarified (see also section 3. Management and Supervision). 
2. Review sector selection criteria: The consultant will support the ILO research team in fine-tuning the sector selection criteria (see ILO VCD methodology chapter 2) by taking into account the Jordanian socio-economic context and the national framework for social insurance schemes as well as the characteristics of sectors and sub-sectors with regards to:

• Potential for extension of social insurance schemes to SMEs: this could include sectors where clear benefits and thus a clear business case exists for SMEs to contribute to social insurance schemes for their workers (e.g. labour shortages or high turnover, image and reputation, access to public procurements or highly regulated markets, and/or productivity boost though motivation and work-quality) or  sectors where there is a potential to design schemes to unlock, create or reinforce incentives for SMEs (e.g certifications, tax incentives, access to training or BDS ).
• Relevance to Estidama++ target groups: the sectors selected shall be sectors in which non-Jordanian and female Jordanian and non-Jordanian workers traditionally find employment, so as to ensure that efforts to encourage SMEs contributions to social insurance schemes will ultimately result in increased social insurance for non-Jordanian, female workers and youth.
• Feasibility of implementation: the sectors should align with Government and ILO’s priorities in Jordan but also offer a conducive environment for action as well as potential motivated and capable partners to implement innovative interventions.

1. Conduct an initial desk research to identify a short list of 6-8 sub-sectors or value chains: the consultant will conduct an initial desk research on existing and relevant literature, including market assessments, social protection or sectorial studies, project reports, and national strategies to inform the identification of a short list of 6 to 8 sub-sectors or value chains that responds to the above-mentioned sector selection criteria. The results of this initial research will be shared in a well-documented power point presentation with a comparative table to support a brainstorming session with the ILO team for the validation of the short-list.
2. Conduct a quick field research to select at least 1-2 high-potential sub-sectors or value chains: the consultant will take the lead in organizing a schedule of semi-structured interviews with key stakeholders relevant for the long list of sub-sectors for approximately one-week field research. Stakeholders to be interviewed include: key market actors and enterprises in the sub-sectors, key government representative (relevant ministries for both the sectors and social insurance), sectorial associations and chambers of commerce, development partners, workers associations, etc.  The field research team will include one staff from the ILO HQ, the national consultant and a staff member from the ILO project team.
3. Present the results of the sector selection during a validation workshop: the consultant will present the results of the field research in a well-structured power point with clear recommendation for sector selection as part of a validation workshop with the ILO team and other key partners of Estidama++. The workshop will result in the final selection of sub-sectors. It will be important for the consultant to document the sector selection process (intermediate and final results) to be able to draft the “sector selection” chapter of the final research report (see Step 2).     

Outputs Step 1

• Reviewed set of sector selection criteria
• Power point document and presentation to deliver the results of the desk review
• Short list of 6-8 sub-sectors validated by the ILO team
• Interview schedule for sector selection fieldwork, which includes the stakeholder names and contact information
• Power point document and presentation to deliver the results of the field research and propose the sectors to be selected during a validation workshop
• At least 1-2 sub-sectors are selected and validated by the ILO team

 

 

Step 2: Analysis of selected sectors

 

1. Quick fieldwork for the preliminary mapping of the sub-sectors and value chains: the consultant will start mapping out the market system ‘donut’ of the selected sub-sectors and value chains following the methodology outlined in the ILO “Value chain development for decent work”. As part of this mapping, the consultant will conduct semi-structured interviews in a fieldwork of approximately one week to identify key market actors and SMEs (formal and informal) engaged in the sectors, market transactions, roles and position of the target group (type of job, contracts, conditions, etc.) relevant supporting functions (BDS providers, financial service providers, meso-level institutions linked to the SCC, insurance companies, employment services, etc.), and institutions that shape rules and regulations that influence the sector (SCC, relevant Ministries, standard-setting and certification agencies, etc.). Particular emphasis should be given on identifying the underlying causes influencing the incentives or disincentives for employers and workers to contribute to the social insurance schemes in the selected sectors. The results of this preliminary mapping will be outlined in a short preliminary report (max. 15 pages), which will include clear overview of challenges and opportunities to unlock, create or reinforce incentives of SMEs to contribute to social insurance schemes for women, youth and non-Jordanian workers to be further explored and analysed in the next step of the analysis. The report will be unpacked during one working session with the ILO team.
2. In-depth fieldwork and analysis on the entry points to unlock business incentives: based on the results of the working session with the ILO team, the consultant will identify key stakeholders to be interviewed during an in-depth fieldwork, which will focus on unpacking the challenges, opportunities and entry points in the selected sectors to facilitate market linkages and support new business models and sectorial development strategies in a way that creates or reinforces incentives for SMEs to contribute to social insurance schemes. The consultant will organize the schedule of semi-structured interviews for approximately a one-week fieldwork that will be include one staff from the ILO HQ, the national consultant and a staff member from the ILO project team. During this fieldwork, the consultant will help the ILO team with keeping track of the data collected through the interviews by taking notes which could be used during the drafting of the research report (see Step 3). The results of the fieldwork will be analysed jointly with the ILO team as part of at least 3 brainstorming sessions during and after the fieldwork.

Outputs Step 2

• Interview schedule for preliminary map out fieldwork, which includes the stakeholder names and contact information
• Short preliminary report (max. 15 pages) mapping out the market systems of the selected sectors, including a clear overview of challenges and opportunities to unlock, create or reinforce incentives of SMEs to contribute to social insurance schemes for women, youth and non-Jordanian workers to be further explored and analysed in Step 3
• 1 working session with the ILO team to unpack the results of the preliminary report
• Interview schedule for in-depth fieldwork, which includes the stakeholder names and contact information

Step 3: Support Report Drafting and Intervention Design

1. Contribute to the drafting and review of the research report: while the ILO team will lead the drafting of the research report, the consultant should be able to contribute to the drafting by providing strategic inputs and review based on the fieldwork and by sourcing any additional documentation or complementary data needed. In case of need, the consultant should be able to organize up to 5 complementary interviews to fill any information gap identified by the ILO team.
2. Advise on intervention design: the final research report will include a section providing concrete recommendations on strategic interventions that project could implement to unlock, reinforce and/or create additional incentives for SMEs to contribute to social insurance schemes for their (non-Jordanian, female and youth) workers in the selected sectors. During the drafting phase, the consultant is expected to contribute to the design thinking by joining at least 2 brainstorming sessions with the ILO team and by reviewing the intervention section in the final research report.
3. Support the facilitation of the validation workshop: the preliminary version of the research report, including the intervention section, will be presented by the ILO team and the consultant during a validation workshop with Estidama++ partners and key stakeholders. The consultant will contribute to the presentations and will support any facilitation of activities and discussion during the workshop.

 

Outputs Step 3

• Written inputs and technical review of the research report (including intervention section) drafted by the ILO team
• In case of information gaps during the drafting process, support with sourcing of additional documentation and data and up to 5 complementary interviews.
• At least 2 brainstorming session with the ILO team on intervention design
• Support presentations and facilitation of the validation workshop

 

 

1. Management and Supervision

The consultant will perform his/her assignment under the overall supervision of the ILO Estidama++ project team with support of the ILO AIMS Global Coordination team. All technical clearances will be obtained by the ILO AIMS Global Coordination team, which will technically supervise and participate to the research process and draft the final research report.  The local consultant will be responsible to facilitate, organize and carry out most of the field data collection while advising the ILO AIMS team on the specificities of local context socio-economic contexts and politics.

In carrying out this assignment, the consultant will work in close collaboration with a research team, which will be comprised of:

• National Consultant on Market Systems and SMEs Development (object of these TORs) – to liaise the research team with the field and lead the field research and data collection during the sector selection and the analysis of the sectors selected. The consultant will deliver several presentations during the brainstorming sessions and the validation workshops. He/she will  draft a short preliminary report during the analyse phase (see section 2 Step 2) and will provide written inputs to the research report, which will be drafted by the ILO AIMS team.
• AIMS Technical officer (ILO AIMS Global team) – to lead the research process and provide technical and strategic direction on the ILO market systems methodology and the objective of the research.  The technical officer will be responsible to lead the day-by-day of the research process, facilitate the brainstorming sessions and decision-making and validate outputs and products of the national consultant. The officer will join part of the fieldwork during the sector selection and the analysis phase and will lead the drafting of the final report (including intervention design).    
• ESTIDAMA++ Project team – to ensure that each step of the research process is aligned with  Estidama++ project objectives and to contribute to decision-making with regards to the choice of sub-sectors and of the topics and the stakeholders to be prioritized in the analysis. Estidama, with technical support from ILO ROAS Social Protection Specialist and SOCPRO, will also advise on key aspects of local mechanisms and dynamics of social insurance schemes so that they are taken into account and captured in each of the sections of the study. To the extent possible, members of the project team will join the fieldwork, the brainstorming session as well as the validation workshop.

 

 

1. Timeframe

The assignment will take 35 workdays from September to December 2023 with the anticipated timelines (exact dates tbd) for each intermediate step as identified below

 

Phase

Rough

Dates

Activities

Number of workdays for consultant

Preparatory work and  Sector selection

Sept-Oct

• Participate in kick-off call
• Review of sector selection Criteria
• Desk review and short list of sub-sectors
• Quick field research for sector selection
• Validation Workshop 1

 

 

10 days

Quick fieldwork for the preliminary mapping of the sub-sectors

Oct

• Fieldwork for preliminary map out of the sub-sectors
• Short preliminary report (max. 15 pages) mapping out the market systems of the selected sub-sectors and topics to be prioritized during in-depth analysis
• working session with the ILO team to unpack the results of the preliminary report

10 days

In-depth fieldwork and  analysis

Nov

• In-depth fieldwork on the entry points to unlock business incentives
• Brainstorming sessions

9 days

Support Report Drafting and Intervention Design

Dec

• Written inputs and technical review of the research report (including intervention section) drafted by the ILO team
• In case of need, support with sourcing of additional documentation and data
• Brainstorming sessions with the ILO team on intervention design
• Validation workshop

6 days

Total

35 days

 

 

 

 

 

 

1. Qualifications and Experiences of the Consultant

• At least Master’s degree in Business Management, Economics, Social Science or related discipline
• A track record in conducting market and value chain research. Previous experience in conducting research on social protection and/or labour markets will be an advantage
• Strong knowledge on SMEs sector development or value chain development in Jordan
• Excellent reporting and communication skills in English and Arabic
• Strong social, organizational and knowledge management skills required in order to coordinate research schedule and keep track of data
• Capacity to produce high-quality reports.

 

1. Payment schedule

The payment schedule for this assignment is the following:

Payment 1_30%: Upon completion of the Power point presentation delivering the results of the field research and proposing the sectors to be selected, to the satisfaction of the ILO by 15th of October 2023 at the latest.

Payment 2_40%: Upon completion of a short preliminary report (max. 15 pages) mapping out the market systems of the selected sectors, including a clear overview of challenges and opportunities to be further explored and analysed in Step 3 to the satisfaction of the ILO by the 15th of November 2023 at the latest. 

Payment 3_30%: Upon completion of at least 2 brainstorming sessions with the ILO team on intervention design and submission of the final research report, to the satisfaction of the ILO by 15th of December 2023 at the latest.

 

1. Application Process

The following documents/information are required to apply for this assignment:

1. Technical proposal
2. Financial proposal
3. Consultant CV
4. Work samples for similar assignments, if any

The application must include all the documents requested and shall be submitted by email to Elisa Mandelli mandelli@ilo.org under the email subject “Consultancy Market Analysis Estidama++” not later than Friday 22.09.2023.

 

1. Special terms and conditions

 

Confidentiality Statement and Intellectual Property of Data

All data and information received from the ILO and the stakeholders for the purpose of this assignment are to be treated confidentially and are only to be used in connection with the execution of this ToR. All intellectual property rights arising from the execution of this ToR is assigned to ILO according to the grant agreement. The contents of written materials obtained and used in this contract may not be disclosed to any third parties without the express advance written authorization of the ILO.

Unsatisfactory or incomplete work

For the assignment, the ILO’s Standard Rules and Procedure for External Collaborators (EXCOLL) shall be applicable. In event that the service delivered is unsatisfactory or fails to conform to the conditions set out above, the ILO reserves the right, as appropriate to interrupt it, to request that to be corrected or modified, or to refuse to accept the service.