Let’s make this

a good

Working Day

Labour Relations and Social Responsibility

Flexibility in the Labour Market - WIN – WIN - WIN

PARE HRM Conference 2004, Tartu, Estonia

Fredrik KarlssonMarjo Lipponen

Manpower Oy

Times have changed How about us?

1980 – average 2,5 children perhousehold

2004 – average 2,5 households

per child

Culture and values are changing rapidly

– are we ready?People

Can we adapt ourselves to new demands on flexibility?

1995 – 1 job ad / 300 applicantions

2004 – 30 job ads / 1 application

Loyalty changes!

What´s important?

- we ”consume” jobs- we search for attractive brands- we search for common values- we want development and flexibility - we want to choose our own boss- we look for added individual values

- if we´re not happy – we leave!!People !!

Labour Market Development

Traditionalwork andstaffing

Transfer to low cost countries Out-sourcing Sub-contracting

Efficiency

Fixed term contracts”Substituting”

Flexible staffing incl.Employer’s

responsibilities

Fle

xib

ilit

y

EU-average 3%Finland 0,4%

Spain 19%Finland 16%

Labor Market Flexibility vs.Good employment rate?

- high flexibility < 6% (BeNeLux/UK…)- low flexibility > 6% (Nordics, Spain…)

- flexible Labour Law?- flexible Union Agreements?- flexible Employment Services?

Internal flexibility

• overtime• organisational changes

External flexibility

• fixed term• temporary staffing• external services

Flexible Staffing Solutions

Time

Em

plo

yees

at

wo

rk

Own permanent staff

Fixed term or project staff

”Yesterday”

TimeE

mp

loye

es a

t w

ork

”Tomorrow”

Global & EU regulations

- ILO Convention 156- antidiscrimination- general ethics- efficient employment

- EU ”Agency Work Directive”?- assignment period?- assignment ”chains”?- user comparability?- employee security?

McKinsey report 2003

- 4 million new Jobs in the EU 2010- providing enough flexibility- giving opportunities for Agency Work- ”hidden” Jobs to be exploited

- related to Estonia +10.000 new jobs- if penetration rate 3% additionally

20.000 jobs created

Social Responsibility of the ”Flexible” Employer - Manpower Style

• Strong corporate values; management by values

• Thorough selection process

• Clear and legally waterproof contract terms

• Competitive wages

• Care and respect of individuals

• Participation in social responsibility actions

• Membership in the Employers’ Federation, application of Union Agreement terms

• Training and networking opportunities for all personnel

• Flexible career opportunities according to life style and life cycle

• Long term employer–employee partnership!

people knowledge innovation

we care we share we dare

Manpower Global Values

Management by Values – the Manpower Perspective

•Employer image and brand

• Individual in focus

•Our clients: companies and job seekers

•Changing values – are they or we up-to-date?

•Measurement of living up to values

•Values generate profitable business

Temporary Staffing Contracts

Employee

Manpower

Client

Temporary Staffing Contracts

Employee

Manpower

Client

Temporary Staffing Contracts

Employee

Manpower

Client

Temporary Staffing Contracts

Employee

Manpower

Client

- short fixed-term contracts- substitution for sick leaves, extras for production peaks etc- typically low-skill jobs- no notice period, no income security for personnel- typical in Finland during 1960’s – 1990’s- still the common model in several countries

“Body-

Shopping”

Temporary Staffing Contracts

“Added

Securit

y”

Employee

Manpower

Client 4 weeks4 weeks

2-4 weeks2-4 weeks

2-4 weeks2-4 weeks

- average length of fixed-term contracts several months- jobs even on the expert and managerial level- notice period for all parties; part of the risk carried by the client- terms of employment contracts regulated by union agreement - used in Finland after 2001 (New Act on Employment Contracts)- gives added employment security for employees

Employee

Manpower

Client

Guarantee

paypay

- permanent job contracts- employee works on different client projects but retains same employer- guaranteed salary of 50-100% paid during project “gaps”- optimal employment security- required by law in e.g. Sweden and Germany- offered in Finland for loyal employees; market demand on special skills has to be considered

Temporary Staffing Contracts

“Perm

Model”

Client Manpower

Employee

Social Responsibility of the Employer

Client Manpower

Employee

Social Responsibility of the Employer … and the winner is..?

Employmentrate

Employers

Employees

Flexibility of the Labour Market … and the winner is..?

Our Role in the Labour Market

Manpower Mission Statement

”We are working for a more flexible and efficient labour market

by giving people interesting career opportunities

and producing a diversity of high quality HR-solutions and services which enable our

clients to work in a cost-efficient way and focus on their core business.”

Manpower

The Perfect Match

Operating in Tallinn by April 2004Estonia Pst 1/3Regional Manager: Heigo Kaldra

Karaoke Capitalism – Management for Mankind

”Welcome to the age of the individual! The individuals are prepared to grasp the microphone and make their voices heard.”

”It is up to the leaders to create the fertile ground where each individual can grow his or her individual strengths.”

”The game of chance is over. Lives are instead shaped by choice. Satisfaction is based on choice.”

”In the karaoke world, identity is no longer linked to production, but to consumption. You shop, therefore you are.”

”Talented individuals are mobile monopolies with global passports. They control the key to competetiveness, the scarcest resource: competence. Managers and politicians will have to learn how to deal with people who are free to know, go, do and be.”

”On the cinema screen 007 is still the hero but, in the real world of competence-based competition, the true champion is Q. The nerds really have won!”

Jonas Ridderstråle

Kjell A. Nordström