Managing of skills and talents during crisis time – what for ?

1. Managing of skills and talents during crisis time –what for ? Ewa Matuska Hanseastic Academy of Management , Slupsk Poland Vilnius 22-23. X. 2009

2. Introduction Focus on human talents and skills

3. Background - the Lisbon Strategy • adopted by the European Council in 2000, placed new emphasison knowledge, education and training • the European Council set itself a new strategicgoal for the upcoming decade: to become “the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with moreand better jobs and greater social cohesion” (European Council, 2000)

4. Goals • 1. To enhance economic competitivenessthrough improvements in human capital. Skills, knowledge and competenciesare increasingly seen as crucial factors toachieveproductivity and competitiveness of EU economy. • 2. To promote social inclusion- in the view of Lisbon, competitivenessshould be achieved “with more and better jobs and greater social cohesion”, and not atthe cost of greater inequality or social marginalisation.

5. Coherence by skills and jobs • …..”A dynamic and competitiveeconomy should benefit all, and the entire European population must be involved inand benefit from reform and development. • The „knowledge society” is a society of notonly full employment but “all-employment”. • It is “an information society for all”- in which: “every citizen must be equipped with the skills needed to live and work”,where “info-exclusion” and illiteracy must be prevented, and where special attention isgiven to the disabled”………..(European Council, 2000).

6. Lisbonstrategy during economic crisis time

7. Labour market disturbances • The current economic crisis has destabilized the labour markets in many European countries and has caused problems for various enterprises and many workers in both the west and the east of Europe • An efect : large-scale job lossesreported in many countries worldwide and on EU market • In the Global Employment Trends report of May 2009 estimations that unemployment of EU could increase by between 29 million (lowest scenario) and 59 million (highest scenario)unemployed people in the year 2009 versus that of 2007, with a middle scenario of 39 million.

8. Unemployment for Developed Economies and European Union(source: Global Employment Trends Update , ILO 2009, p.35)

9. Situation of EU migrant workers • Migrant workers and their right to free intra-EUmovement have caused general reduction in job vacancies across Europe- what creates a number of jobproblems, especiallyfor them. • Problems they face in their host countries arestill less than the problems they have in the country of origin - due to the unavailability of good jobs in their home country, • However : staying outside the labour market – abroad or in their own country - would rapidly worsen their professional skillsand chances for goodjobinfuture !

10. Case of Poland - reemigrationin 2008 less thanexpected(amountsinthous. )

11. Case of Poland - double marginalisation of reemigrants ( research 2009)BeforemigrationAftercoming back homeemployedunemployed

12. Double effects of current crisis for talents/ skills shortages in EU Negative Positive • Economic restructuring, especially job’s positions restructuring will last as structural effect on skills demand. • Job creation through current stimulus packages , will cause a rise in public employment, jobs in infrastructure and carbon-neutral building, retrofitting, renewable energies and energy efficiency. • Revitalised labour markets will require differentskill profiles from job applicants – including migrant workers. • Increasedunemployment may push a number of people into long-term unemployment and labour market withdrawal . • Intensification of de-skilling and social marginalisation. • Aggravating the situation of labour shortages in the EU. • Thebraindraininsome of EU members will grow up.

13. Skills and labour shortagesinthe UE During time of significant unemployment

14. Shiftsinoccupationsdemand and jobplaces • Phenomenon of jobpolarization: 1996-2006 high employment growth inskill- intensiveoccupationsand inelementaryoccupations - as a result of technologicalchanges and off- shoring of manufactoring. • An actual pan-European forecast of occupational skills demand in Europe suggests that this trend will continue. • In its low scenario - a net increase of 8 million jobs in 2006 – 2015 , mostly in services and the loss of 2.3 million jobs in the primary sector and 1.25 million in manufacturing and construction (Cedefop, 2008). • An evident problem of theageing of the EU labour force.

15. Demand by broad occupational group in the EU-25, Norway and Switzerland, 2006-2015 (change in millions of jobs): Low scenario Source: Calculated from Cedefop 2008, based on the low scenario of expansion demand. Note: Data for Bulgaria and Romania not available

16. UE companiesneeds for skilledworkers/ Manpower Report, 2009

17. UE countries needs for skilled workers / Manpower Report, 2009

18. Skills composition of employment • Trend towards up skilling - the share of secondary and tertiary educated workers has increased significantly in all occupational groups, including elementary occupations. • Thismay signify the substitution of qualifications - as a result of skills mismatches , as well as - a rise in educational attainment levels of the European workforce, which are pushing skills levels on the labour market upwards • But questionarise: as to whether available skills are being utilizedoptimally,when nearly half of elementary jobs in the EU are currently occupied by medium and high - skilled staff ?

19. EU migrants - waste of talents and skills ? • Migrant workers - mostly those from new EU -12 member states ,working in the EU-15, demonstrate comparable skill levels to those of the domestic workforce, but are employed disproportionately in low-skilled jobs, • The result : positive contribution to productivity in host coutries or de-skilling and underperformance of such workers ? • How it fits to the goal of social cohesion from Lisbon Strategy ?

20. Intra EU mobility Benefit of EU membership or the risk of brain drain ?

21. EU-15 and EU-12 • Common problem : occupations experiencing shortages ( similar list) • Basic difference : EU -12 are suffering shortages due to the migration of workers with the requisite occupational skills to the EU-15

22. The top 10 jobs that employers are having difficulty fillingpositions/ Manpower Report , 2009

23. Common EU problems • Skill/labour shortages are an European-wide problem, requiring European level policy measures . • Thesemeasuresinclude: - Efficient job-skill matching, - Investment in the right skills for the labour market, specifically targeting increases in labour productivity, - Activitiesaimed for increasing labour force participation - especially among women and older workers - Regulated migration .

24. EuropeanQualificationFrame From brain drain to brain gain ?

25. What for to compare skills? • The proper aggregation of skills could help to minimize the negative effects of skills migration, that is the brain drains, and especially - brain wastes. • Portability of skillsby national or international qualification frameworks, could help migrant workers to obtain employment that is appropriate to their skills level and in the same – to adopt to the full competencies of the labour market of their host country.

26. Portability of skills According to the Human Resource DevelopmentRecommendation (2004), the portability of skills is defined in two dimensions: • Employable skills that can be used productively in different jobs, occupations and industries ; • Certification and recognition of skills within national and internationallabour markets.

27. ISCED and EQF - Formal Qualifications vs. Broader Competences • ISCED(the International Standard Classification of Education) and EQF(the EuropeanQualification Framework)are two different approaches to setting standards for thecategorisation of job competences and qualifications. • The ISCED framework represents the traditional approach, focuses on formal educationalactivities designed to meet learning needs, excludes variousforms of learning that are not organized and the basic unit and analytical focus is the single educational programme, especially its scope (e.g.field) and level.

28. Adventages of EQF • In contrast, the EQF ( 2008)- represents a more modern approach linked to the contextof lifelong learning. • The EQF defines learning as taking place in formal as well as informalsettings. • The analytical unit and focus of the framework is the learning outcomewhich defines the competences of an individual at 8 different levels of reference. • EQF as the“translation instrument” between the different European education systems - employers and employees are to be provided with a facility for better comparing qualifications and competences.

29. EQF implementation plan • By 2010 – all EU countries will relate their qualifications systems or frameworks to the EQF • From 2012 –all new qualifications issuedhave to carry a reference to the appropriate EQF level ( from 1 to8) • Theneed for moreurgentsolutions ( as a steps to EQF): for example - recognition of expectedcompetences and comparablecertifications of migrant workers between sending and receiving countries, particularly - in sectors and occupations where migration is high and the demand for workers is stable

30. Summary : how to manage of talents and skills during crisis time ? • EU countries that are hosting a highly qualified migrant workforce could reap the benefits of them by investing in them before they will come to their labour markets. • The desirable skills and qualifications have to be extracted and defined on the basis of co-operation between branch representatives of companies in migrants sending and receiving EU countries. • Migrants have to be early identify as the probable important workforce by future hosting countries and informed by them about the competence requirements for concrete demandable positions.