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Master thesis. What is the attitude of Belgian companies towards international recruitment as a possible solution for the increasing shortage of knowledge workers?. Elena Secuianu and Maxime Driesen UNIVERSITY OF ANTWERP Master of Applied Economic Sciences - Business Administration - PowerPoint PPT Presentation
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What is the attitude of Belgian companies towards international recruitment as a possible solution for the increasing shortage of knowledge workers?
Elena Secuianu and Maxime Driesen
UNIVERSITY OF ANTWERPMaster of Applied Economic Sciences - Business AdministrationStrategy and organisation
Promoter:Prof. Dr. Carolyn Declerck
Be Wanted:Marc Van Hoof, Tine Soers & Koenraad D’helft
Master thesis
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• Unemployment rate 2012: 7,4%
• Certain vacancies remain openDemand for highly skilled employees is growing strongly
• Mismatch at the labour market: bottleneck professions
• Tension indicator = number of unemployed job seekers per vacancy- Belgium: low tension indicator
tight labour market- Important factor: aging
retirement of the baby boom generation
Current situation of the labour market
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• Causes on the demand side- Nature and image of the function/
business/sector- Recruitment behavior and selection
procedures
• Causes on the supply side- Income- Geographical mobility- Qualifications- Labour market behavior
• Causes due to intermediaries- Lock in-effect- Alignment between offered courses
and the needs of employers
• Environmental factors- Economic cycle- Demography- Government policies- Education
Causes of the bottleneck professions - VDAB
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• Paradox of the labour market (worldwide):WEF: “Movements such as the Arab Spring and Occupy Wall Street are fuelled in
part by anger about high youth unemployment and the mismatch between the skills that people have and those demanded by business. Understanding and harnessing talent mobility is now more critical than ever.”
• Imbalances in human capital markets: talent shortages high unemployment rates
• Talent Mobilityapply when it is a win-win solution and when it is feasible
International recruitment – Is it a solution?
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Purpose of our empirical research
General objective:
Investigate the attitude of Belgian companies towards international recruitment.
Methodology:
• Quantitative research – Survey1. Are Belgian companies aware of shortage in knowledge jobs? Does it affect
their business? Do they expect a greater shortage in the future?2. Are they willing and prepared to fill in vacancies with international recruits?3. What are the experiences of firms who have hired highly educated workers
in the past?
• Qualitative research – Case Study
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• Number of respondents: 53- Experience with international recruitment: 29- Mostly visitors of the HR Xpo (Kortrijk), however equal distribution over Flanders
• 64% is currently experiencing a shortage of knowledge workers- 51% expect a larger shortage in the future
• Most critical functions- Engineers (VDAB 2012: 0,6)- Technicians (VDAB 2012: 1,6)- Informaticians (VDAB 2012: 1,7)
Quantitative research - survey
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Negative impact on continuity
• Most important causes: - number of graduates too low- qualitative gap between education and required competencies
Administrative assistant
Distribution
Salesman
Marketeer
Representative
Finances
Human Resources
IT specialist
Engineer
Technician
1.00 2.00 3.00 4.00 5.00 6.00 7.00
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Current handling of the deficit
International recruitment from sister companies
International recruitment via third parties / recruitment agencies
Internal mobility (detachment on project basis)
Initiatives towards educational system
Investments towards campus recruitment / employer branding
Redistribution of tasks within existing organization
Vacancies remain open
0% 10% 20% 30% 40% 50% 60% 70%
• 2/3 of the vacancies remains open
• Redistribution of job responsibilities: durable solution?
• 30% willing to recruit internationally
• What holds them back?
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Negative reactions of current employees
Financial costs
Time-consuming
Retention problem
Equivalency diplomas / competency differences
Legal and administrative problems
Cultural differences / integration
Language differences
0% 10% 20% 30% 40% 50% 60% 70%
Difficulties
Companies who cooperated with an external recruitment agency consider all difficulties as less restraining compared to companies who have handled it internally. All differences are significant or marginal significant.
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Advantages
Better quality / knowledge
Higher flexiblity
Higher creativity / synergies
Extension contacts
Diffentiation among employees
Faster completion of vacancies
1 2 3 4 5 6 7
Although companies with experience value the benefits of international recruitment slightly better, the difference with companies lacking experience is not significant.
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Added value of an international recruitment agency
Negative reactions of current employees
Retention problem
Financial costs
Equivalency diplomas / competency differences
Language differences
Cultural differences / integration
Legal and administrative problems
Time-consuming
1 2 3 4 5 6 7
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Workers - low level of education
Workers - high level of education
Employees - low level of education
Employees - high level of education
Executives - low level of education
Executives - high level of education
Management - low level of education
Management - high level of education
0% 10% 20% 30% 40% 50% 60% 70%
Foreign recruitment per statute
International recruitment is often used for high-level functions.
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South America
Australia
Africa
South Asia
North America
East Asia
Northern Europe
Southern Europe
Eastern Europe
Neighbouring countries
0% 10% 20% 30% 40% 50% 60% 70%
Geographic preference
International recruitment mainly from neighbouring countries.
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Recruitment process
Integration process
General
Performance of foreign labor
1 2 3 4 5 6 7
Satisfaction
Companies who cooperated with an external recruitment agency value a slightly greater satisfaction (only based on integration and recruitment process).
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• In-dept interview with Vicky Welvaert – HR Director of ASCO Industries
• HQ in Zaventem with circa 1000 employees
• ASCO Industries is a world leader in the design and manufacturing of functional components for the aerospace industry.
• Production of high qualitative components through continuous technological innovation and creativity
high need for technically skilled workers (CnC-operators)
Qualitative research – case study
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• National solutions:- Redistribution of tasks- Employer branding- Multiple recruitment channels- Close contacts with technical schools
• International solutions:- 20 (technically skilled) workers from Poland- Profile, background, language- Cooperation with a recruitment agency
ASCO Industries
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• Potential obstacles1. Legal and administrative difficulties2. Cultural differences3. Equivalence of diplomas4. Language and integration
• Advantages of international recruitment- Finding the right workers to fill the vacancies- Increase of the differentiation and creativity
No disadvantages if one cooperates with an external recruitment agency.
ASCO Industries
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• Strong congruence between survey and case study
• Most fundamental obstacles: - Language and cultural differences- Inequivalence of diplomas- Legal and administrative conditions- Personal restrictions
• Most critical functions- Techinicians- Engineers- Informaticians
Conclusion of empirical research
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• Divided opinions regarding the added value of an external recruitment agency- Survey: moderate satisfaction of international recruitment- Case-study: high satisfaction of international recruitment
potential obstacles can be overcome!
• Belgian companies do not (yet?) consider international recruitment as a full solution for the increasing shortage of knowledge workers
Conclusion of empirical research
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1. 72% of the respondents indicated that they would rely on the services of an external recruitment agency, although in practice this often not the case.
Personal conviction vs. general organizational policy?
What are the influencing factors? (e.g. recruitment budget)
2. 40% of the respondents indicated their willingness to recruit from abroad, although only 20% of companies actually made use of this solution. Why is this?
3. Difference between VDAB-analysis (2012) and own research regarding the importance of aging on the Belgian labour market.
Literature: very decisive for the shortage of knowledge workersSurvey: moderate impact on the shortage of knowledge workers
Future research recommendations