UITP COMMISSION ON BUSINESS AND HR MANAGEMENT MISSION, ROLE AND ACTIVITIES

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1 COMMISSION ON BUSINESS AND HR MANAGEMENT MISSION, ROLE AND ACTIVITIES Rio November 2014 Joe Kenny Chair of the Commission on BHRM 1

2 AGENDA 1. Background & Work Framework 2. Observatory of Employment 3. Attractiveness of the Driver s job survey 4. Attractiveness as PT company as an employer 5. Motivational measures for increased satisfaction and higher performance 6. Conclusion

3 MEMBERSHIP BODIES Cliquez pour modifier les styles du texte du masque Deuxième niveau Troisième niveau Quatrième niveau Cinquième niveau 3

4 CREATION OF THE COMMISSION ON BHRM Commission on Business and HR Management has been created end This is the result of the merger of the former Commissions on Human Resources and the Commission on Corporate Management created in only. Focus on the change of business culture. This evolution is linked to the strategy PTX2_Grow with PT of the sector and its chapter Create a new business model. 4

5 SECTOR STRATEGY Grow with PT 2025=PTX2 (1/4) 5

6 SECTOR STRATEGY Grow with PT 2025=PTX2 (2/4) 1. Financial crisis and economic development: PT empowers the economy by creating jobs, and jobs you can t relocate Climate change/pollution: PT helps reducing polluting emissions and save energy 3.Congestion in cities: PT alleviates congestion 4. Social exclusion: PT brings everyone everywhere 6

7 SECTOR STRATEGY Grow with PT 2025=PTX2 (3/4) 5 strategic axes for PT actors in order to make the ambition of PT x 2 come true 1. Develop visionary policies 2. Create a new business culture 3. Secure stable funding and investment schemes 4. Use stick-and-carrots tactics 5. Deliver lifestyle services to become the mode of choice of choice of citizens 7

8 SECTOR STRATEGY Grow with PT 2025=PTX2 (4/4) 8

9 URBAN TRANSPORT SCENARIO Public transport operators' jobs (millions) (BAU) 2025 (PTx2) Doubling PT modal share by 2025 = doubling the number of jobs in operating companies From 7 to 14 million Based on labour productivity increase of 1% 9

10 PEOPLE EMPLOYED BY PT OPERATORS BY REGION IN 2009 (IN THOUSAND)

11 URBAN TRANSPORT SCENARIO Latin American situation (source: Latin American Office) The labour market in Latin America is very informal, this is reflected on public transport sector, but on a much smaller proportion than in other sectors. The jobs in PT has experienced strong formalization and also move an important part of economy; it is estimated around 2% of the total GDP of the Latin American region. 11

12 URBAN TRANSPORT SCENARIO The triple challenge for PT companies worldwide Recruit in large number Higher qualified staff Motivate and retain staff This triple challenge puts into question the attractiveness of the PT sector as an employer, the business culture and the HR managerial practices. 12

13 THE TRIPLE CHALLENGE RAISES THE ATTRACTIVENESS OF THE PT SECTOR AS AN EMPLOYER Develop education and training programmes to raise the level of qualification necessary to work in a formalised public transport system; Improve the recognition of the driver's job and value the job s competences Enhance the image of public transport and public transport companies and enhance the status of jobs in public transport in order to promote public transport companies as an attractive employer.

14 THE TRIPLE CHALLENGE RAISES THE ATTRACTIVENESS OF THE PT SECTOR AS AN EMPLOYER In Latin America, there are different realities between the rail and the bus sector: The rail industry historically has formal jobs through its origin in public enterprises. Staff generally have higher qualifications and a more professionalised structure. The bus sector is often made of small family businesses and is in a slow process to formalize.

15 THE TRIPLE CHALLENGE RAISES THE ATTRACTIVENESS OF THE PT SECTOR AS AN EMPLOYER Attracting young talent often difficult in Latin America because young people (engineers) may not know the opportunities in PT sector Need for more promotion of the PT sector as an employer Need to develop technical and academic programmes (training, qualifications, education, diplomas specific to the Transport sector) Lack of drivers: sometimes because cargo sector is more attractive in terms of salary, PT driver can be seen as stressful because of customer interaction.

16 AGENDA 1. Background & work framework 2. Observatory of Employment 3. Attractiveness of the Driver s job survey 4. Attractiveness as PT company as an employer 5. Motivational measures for increased satisfaction and higher performance 6. Conclusion

17 OBSERVATORY OF EMPLOYMENT General objective: providing key figures and arguments in order to support the advocacy of and its members regarding the importance of employment and recruitment in the public transport sector. Phase 1: report April

18 BEST-IN-CLASS PROVIDERS OF GREEN JOBS AND INCLUSIVE GROWTH Number of jobs in the PT sector worldwide in Estimate: 13 million (2009) Operators: 7,3 million OA: Industry: 5 million

19 OBSERVATORY OF EMPLOYMENT Position paper: Employment in PT: stimulating the economic recovery and green growth locally. Direct, Indirect and Catalyst effects Employment in PT operators and authorities boosting the local economy Employment in PT industry supply chain: a dynamic and innovative growing sector Beyond employment in PT, the huge benefits of PT investments for the local economy and growth 19

20 WHY ARE PT SECTOR JOBS GREEN AND INCLUSIVE? ILO definition: qualified and stable jobs Due to its nature and mission, PT creates green and local jobs that cannot be offshored or moved out of the local area PT sector as a major employer High quality PT helps cities and regions to attract businesses, it often generates commercial activity and boosts the economy

21 AGENDA 1. Background & work framework 2. Observatory of Employment 3. Attractiveness of the Driver s job survey 4. Attractiveness as PT company as an employer 5. Motivational measures for increased satisfaction and higher performance 6. Conclusion

22 ATTRACTIVENESS OF THE DRIVER S JOB SURVEY (SUB-CHAPTER OF OBSERVATORY OF EMPLOYMENT) A survey to identify good practices to recruit drivers and make them loyal. Selecting and using indicators that enable us to identify and analyse good HR managerial practices that make a company attractive to employees. 22

23 ATTRACTIVENESS OF THE DRIVER S JOB SURVEY -Collection of quantitative and qualitative data Project promotes PT as an attractive employer including: - Attract young and talented profiles - Development of careers - Strengthen motivation, loyalty, employability - Fight against stress and illness 23

24 ATTRACTIVENESS OF THE DRIVER S JOB SURVEY publication of 3 reports 2011, 2012, 2013 a first in the PT sector lack of common definitions and standardised methodologies

25 ATTRACTIVENESS OF THE DRIVER S JOB SURVEY - European survey report - Benchmark Asia and Europe report-sitce Singapore - Launch of survey in Latin America March Workshop, Hannover, Germany, March

26 AGENDA 1. Background & work framework 2. Observatory of Employment 3. Attractiveness of the Driver s job survey 4. Attractiveness as PT company as an employer 5. Motivational measures for increased satisfaction and higher performance 6. Conclusion

27 ATTRACTIVENESS OF PT AS AN EMPLOYER BUILDING A CLEAR AND DISTINCTIVE EMPLOYER BRAND Being an employer of choice = being part of the top 5 employers? Often Fierce competition with other industries. Key to success is to achieve high hygiene factors and strong motivation factors in terms of people management.

28 ATTRACTIVENESS OF PT AS AN EMPLOYER BUILDING A CLEAR AND DISTINCTIVE EMPLOYER BRAND Hygiene factors Factors that can affect job satisfaction in a negative manner if not present: basic working conditions, company policies, relations with co-workers and pay. Motivation factors Factors that affect job satisfaction in a positive manner: achievement, recognition, responsibility and advancement

29 ATTRACTIVENESS OF PT AS AN EMPLOYER BUILDING A CLEAR AND DISTINCTIVE EMPLOYER BRAND Hygiene factors are important but not imperative to maintain the employee s desire to continue working. Regardless of the type of industry, most important to employees is a meaningful job with personal development and fulfilment.

30 ATTRACTIVENESS OF PT AS AN EMPLOYER BUILDING A CLEAR AND DISTINCTIVE EMPLOYER BRAND Strong Employer Brand and a unique Employer Value Proposition Employer brand + commercial brand + corporate brand = employer positioning Internal identification and external differentiation PT should focus more on people, lifestyle when communicating instead of infrastructure and hardware.

31 ATTRACTIVENESS OF PT AS AN EMPLOYER BUILDING A CLEAR AND DISTINCTIVE EMPLOYER BRAND Employer Value Proposition What makes your company unique in terms of company s commitment to employee growth, management development, ongoing employee recognition, community service EVP = combination of rewards and benefits the company promises to provide employees in return for their performance and efforts.

32 ATTRACTIVENESS OF PT AS AN EMPLOYER BUILDING A CLEAR AND DISTINCTIVE EMPLOYER BRAND Employer Value Proposition The EVP is key to attract the right profiles to the company and the corporate culture. The EVP is also a driver for engagement and retention and reflects the conditions created by the employer to ensure performance and loyalty of the staff. SSB Stuttgart, Germany I am free to shape my work and have meaning in what I do.

33 BENEFITS OF GENDER DIVERSITY FOSTERING WOMEN EMPLOYMENT The benefits of gender diversity can be measured in terms of financial, managerial and commercial performances. Regarding financial performances, the presence of female directors has been linked to higher market capitalization, higher revenues and better corporate governance. Regarding managerial performance, the presence of women generally provides new perspectives and generates different learning paths and can develop equity of treatment and ban discrimination as well as helping to attract and retain new talents and reduce labour shortages and staff turnover. As far as commercial performance is concerned, the presence of women builds organizational legitimacy and corporate branding, as well as a deeper understanding of and access to desirable customer bases and markets, such as female consumers. 33

34 BENEFITS OF GENDER DIVERSITY FOSTERING WOMEN EMPLOYMENT encourages public transport stakeholders to address the barriers to the sector faced by women (the most common of which are gender stereotypes) by: - developing women-friendly recruitment, training and retention policies that offer clear objectives and development opportunities; - offering variable and suitable working conditions for a better reconciliation of work and social life ; - analysing the scale of the salary gap between men and women and tackling the effects of a masculine working culture. 34

35 BENEFITS OF GENDER DIVERSITY FOSTERING WOMEN EMPLOYMENT European joint recommendations between ETF- signed in April 2014: increasing the share of female employees in urban public transport (who are particularly under-represented in leadership and technical positions), from the current average of 17.5% to at least 25% by 2020 and at least 40% by

36 AGENDA 1. Background & work framework 2. Observatory of Employment 3. Attractiveness of the Driver s job survey 4. Attractiveness as PT company as an employer 5. Motivational measures for increased satisfaction and higher performance 6. Conclusion

37 MOTIVATIONAL MEASURES FOR INCREASED SATISFACTION AND HIGHER PERFORMANCE Impact on level of absenteeism. Question of employability. Motivational policies are complex because PT offers very heterogeneous jobs in terms of qualifications, skills and competences.

38 MOTIVATIONAL MEASURES FOR INCREASED SATISFACTION AND HIGHER PERFORMANCE Actions and good practices - meeting with management for every member of - staff once a year - Leadership training - Health care system, healthy eating - Part time and flexible working - Mixed jobs job rotation - Flexible shifts models - Defined career paths - Re-skilling and career changes

39 MOTIVATIONAL MEASURES FOR INCREASED SATISFACTION AND HIGHER PERFORMANCE Three main recommendations 1. Develop the culture of local management for more personalised care 2. Strengthen local management supported by leadership training 3. Take measures to make the staff proud of their job and of their company.

40 Motivational measures for increased satisfaction and higher performance Regardless of the region, the attractiveness of jobs is the result of a complex combination of factors mixing socio-economic and regulatory environment with managerial and HR practices. - Creating a sense of belonging and pride amongst staff is a top priority, and in return more satisfied employees boost productivity and increase passenger satisfaction.

41 CONCLUSION ATTRACTIVENESS AND PERFORMANCE Action should simultaneously be taken in the fields of: - service improvement - organisation - human resources Innovation to bolster the relation of service between quality of service create a culture of engagement. Self-perpetuating virtuous circle whereby investment in quality of PT services leads to enhanced attractiveness of the jobs

42 CONCLUSION Invest in PT Invest in increased professionalism Increase performance & revenues Recruit qualified staff + create the conditions to support staff to deliver high quality services Increase attractiveness of services and jobs in PT Improve services & efficiency Enhance PT image & increase staff's pride and satisfaction Increase customers'satisfaction

43 Thanks for your attention! Muchas gracias! Obrigado!

44 INTERNATIONAL SOCIAL DIALOGUE WITH ITF UNIONS Signature of a historic MoU in December 2013 Combined vision of promoting the development of high quality public transport globally. ITF and have agreed to work together to promote the development and expansion of public transport worldwide as a motor for sustainable growth and the creation of green jobs as well as environmental protection in reducing congestion and pollution. 44

45 INTERNATIONAL SOCIAL DIALOGUE WITH ITF UNIONS Set-up of a Steering Committee Develop joint recommendations in vocational training, staff security and the promotion of formal (and the reduction of informal) employment in public transport Represent the interests of public transport employers and workers in international organisations (eg. EU, ILO), to promote the high quality employment that public transport offers in urban areas. 45

46 PARTNERSHIP WITH ILO The signature of the MOU: an entrance door to ILO in order to expand the advocacy of the vis-àvis another UN agency after UN-Habitat, UNEP, etc. Stronger voice of the sector >>> better heard among institutions responsible for socio-economic questions and helps strengthen its work aimed at enhancing the visibility of the sector and promoting the positive impacts of PT on the economy and employment. 46

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