What are Insertion Companies?

Insertion companies are economic, profit-making initiatives with a social focus and the accompaniment and social insertion into work of unemployed people at risk of social exclusion and, as a result, with particular difficulties in entering the job market.
We are dealing with a Spanish model of support for people who are vulnerable in the face of easy employment, which focuses mainly on those affected by Law 44/2007, of December 13, as well as those affected by the Insertion Companies scheme, which was modified by the provision added in the twelfth of Law 27/2009, of December 30, on Employment Promotion. Hence the subtitle: “job opportunities that change lives”.

Insertion companies must meet a series of requirements:

• They are promoted by one or more commercial companies, cooperative societies and labor societies that are shareholders in the share capital corresponding to the Company of insertion in a given percentage (depending on the type of promoting company).
• To be included in the Administrative Register of Companies of the Autonomous Community, in addition to being included in the register that may correspond to their legal formation.
• Maintain a number of workers in the insertion process equivalent to at least 30% during the first three years of activity and at least 50% of the total table from the fourth year onwards (of employees).
• Not to carry out economic activities other than those of its corporate purpose.
  To apply at least 80% of the profits or available surpluses obtained in each financial year to improving or expanding its production and integration structures.
• Present an annual social balance of the company’s activity, including the economic and social memory, the degree of integration into the ordinary labor market and the composition of the tables, information on the integration tasks carried out and forecasts for the following year.
• Even so, the integration companies must have the necessary means to fulfill the commitments derived from the socio-occupational insertion itineraries.

The Case of the Region of Murcia: A Reference in Social Economy.

The Region of Murcia, located in the south-east of Spain, is one of the country’s 17 autonomous communities. Although its size could be considered one of the smallest, as it has only one province (also called Murcia), it has very interesting characteristics when we look for issues that can be transposed to other countries or territories. In terms of GDP (approximately 33,000 million euros), the Region of Murcia was ranked tenth among the Brazilian states. In terms of surface area (11,313 km2), it is approximately half the size of Sergipe and twice the size of the Federal District, while its population (1,500,000 inhabitants) is comparable to Sergipe itself (in its entirety), Tocantins and Rondônia.

The Benefits of Insertion Companies: Social and Economic Impact

ADEIRMUR is included in CEPES (Spanish Business Confederation of Social Economy – https://www.cepes.es/), as is COCETA (Spanish Confederation of Associated Work Cooperatives – https://www.coceta.coop/).
Today the president of CEPES (Juan Antonio Pedreño Frutos) is also the president of the European Union’s leading organization on the Social Economy (SEE: Social Economy Europe).
ADEIRMUR, the Association of Insertion Companies of the Region of Murcia, emphasizes in all its speeches that insertion companies help to build a more inclusive and fair society by facilitating employment opportunities for people in situations of social exclusion.
It is important that the insertion companies are associated, as this is the best way for them to relate to other public authorities and to demonstrate the design of policies that contribute to the development of a solidarity economy whose impact will be both economic and social.
At the moment, ADEIRMUR is planning the challenge of effectively complying with the Spanish Public Procurement Law, which requires 10% of contracts to be awarded to Insertion Companies (EI).
They insist that integration companies are “profitable”, estimating that € 1 (one) euro invested in supporting them has an economic return of €3 (three) euros. What’s more, as highlighted at the regional days celebrated in December 2023, because it is necessary to bear in mind the savings in benefits (linked to health guarantees and unemployment), the return could be €6 (six) euros for every euro invested.
The Murcian integration companies (Nostrum Integra, S.L.//Mobiliario & Stands Isol, S.L.//Totao Print Isol, S.L.//Traperos Recicla, S.L.//Proyecto Abraham//Actividades Deportivas y de inserción S.L.//Bici Go S.L.//Escob GO S.L.), in line with the motto “job opportunities to build a future”, offer different services related to printing, renovations, cleaning and maintenance, recycling, etc.
To recognize the success of integration companies as a modality, we have to take several factors into account.
Firstly, its impact on social inclusion, as it focuses on the long-term unemployed, people with disabilities, ex-offenders, immigrants, etc., in short, people at risk of social exclusion. It’s an approach that has a positive impact on the community and usually has the support of government and non-governmental organizations.

Challenges and Opportunities: The Future of Insertion Companies

However, we have to add the commitment to training and development, because these companies not only provide short-term work, but also offer training, capacity-building and professional development programs that improve the skills of their employees and help them enter the conventional labor market in the medium term.
Insertion companies also seek economic sustainability by offering products and services in a way that matches demand to supply or social purpose with a profitable business model, as far as possible.
There is no doubt that insertion companies are aligned with the social conscience and values of European countries, and are supported by consumers and institutions that take them into account in their Corporate Social Responsibility portfolio.

As a corollary:

“Insertion companies don’t make vulnerable situations disappear, but they are a means of dignifying people so that they can get out of social exclusion, thanks to the job opportunities they offer.”