Outline SUCCESS-M (INTERREG VB NWE proposal)

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1 Outline SUCCESS-M (INTERREG VB NWE proposal) Sustainable Creation of Competitive Enterprises by fostering needed Skills and Social integration of labour Migrants (SUCCESS-M) Introduction SUCCESS-M shall implement important elements of the Europe 2020 strategy and contribute to smart, sustainable and inclusive growth. Europe 2020 is the EU's long-term growth and jobs plan, built on five targets to be met by 2020, a central part of the EU's overall recovery strategy and a growth model for the future. It is based on investing in knowledge, a low-carbon economy, high employment, productivity and social cohesion. These are the ways to ensure the EU can compete on the world stage while preserving its unique social market economy. Relevance Why is the project necessary? This project proposal shall tackle several of the five headline Europe 2020 targets. They are not ends in themselves but rather a guide for growth policies at both national and EU level. The most important headline target for SUCCESS-M is the set target of 75% of year olds in employment by Therefore enterprises need to offer job opportunties while more potenial employees need to be further qualified. Large enterprises usually have a department specialiced on human resources management to find and train their staff whilst SMEs doesn t. Furthermore in many European regions, SMEs have problems to find qualified personell in several sectors (e.g. geriatric nurses, rescue services, craftsman, nurses, doctors, engineers etc.). In these cases of manpower shortage the regular job market is very limited. Moreover Europe needs to make full use of its labour potential to face the challenges of an aging population and rising global competition. Due to demographic change, workforce in North-West Europe is about to shrink. Whereas in the past, the international arena used to be the domain of large multinational companies only, nowadays, even many smaller companies will transcend geographic, economic, political and cultural boundaries. At a societal level, cultural diversity and globalization are not just buzzwords. Developments in the media, technology and politics have made the world smaller and increasingly interdependent and integrated. Both organizations and society are becoming more and more culturally diverse. As a result of this process, at both societal and organizational levels, it has become more and more important to be aware of national, and even regional, cultural differences, and to be able to manage culturally diverse organizations. This is especially true for Europe, where regional and national differences persist despite ongoing standardization and integration within the European Union (EU). Europe, especially North-West Europe, is an economic powerhouse with sustainably innovative corporations that operate on an international scale. In the light of strong and even intensifying 1

2 economic relations between Europe and the rest of the world, skills in SMEs 1 will be needed to appreciate (cultural) diversity and to deal with it effectively. Promoting competitiveness and innovation are key aspects of EU policy in relation to industry and enterprise, in particular for SMEs. According to a survey (Eurobarometer, Gallup 2007 Observatory of European SMEs. Analytical report), the two most important business challenges faced by SMEs include limited customer demand for products and services (46%) and a lack of skilled labour (35%). The challenge that the European economy faces, and by direct implication the SME sector, is that the supply of labour and the types of international markets are changing, and will continue to do so: potentially dramatically over the next decades. While population decline is already in evidence in several countries in Europe, at aggregate level (European Union and Europe as a whole) the population during 2014 still increased. The main driver of this population growth was once again migration, which counterbalanced the negative natural change. Whilst the population demographic in terms of immigration and ethnic minorities is set to change, there are also other major demographic shifts which will affect the characteristics of the labour force and potential markets. In addition to the concerns regarding changing demographics, a potentially shrinking workforce and declining economic growth rates, is the challenge that employers only access a limited section of the potential labour force....the EU has a substantial reserve of unused labour, with considerable scope for raising employment further, especially among such groups as women, older people and youth. (Employment in Europe 2006, European Commission Directorate-General for Employment, Social Affairs and Equal Opportunities). But the problems are not just limited to these three groups, as they also certainly and specially affect people from ethnic minority groups: Ethnic minorities typically have significantly higher unemployment rates, lower labour income, and they are less likely to find and keep their jobs than the majority population. (Study on the Social and Labour Market Integration of Ethnic Minorities, IZA, 2008) Relevance Novelty of approach At that point SUCCESS-M focuses on the scarcity of skilled workers and the potential of work force of migrants. That means SUCCESS-M will match the needs of SMEs with the potential work force of especially migrants. This project proposal aims the well-balanced combination of the vocational, social and culturel integration, which is the precondition for sustainable solutions. This is an innovative approach as up-to-date studies and policies look always at one side of the coin. 1 Small and medium-sized enterprises (SMEs) are the backbone of Europe's economy. They represent 99% of all businesses in the EU. In the past five years, they have created around 85% of new jobs and provided twothirds of the total private sector employment in the EU. The European Commission considers SMEs and entrepreneurship as key to ensuring economic growth, innovation, job creation, and social integration in the EU. ( ) 2

3 SME employers will need to think smarter about how and from where they recruit people and about the markets they access. The basis for this is thinking in a more diverse way about how this is done: the notion of Diversity. The aim of SUCCESS-M is to explain in simple terms how managing recruitment and marketing in a smarter and, as a result, more Diverse way will help to address the economic and demographic challenges outlined. Ultimately, the notion of Diversity is just good business sense: making sure employers get the right person durable for the job and the best chance to improve their turnover/profit, through new and existing markets. There are many different perceptions on the notion of Diversity, but to put it into simple terms it means: Convincing owner managers of SMEs to adopt a solid business process for recruitment and selection so they can maximise the potential of getting the right person for the job. And: an owner manager of a SME is more likely to get access to new markets (esp. where the migrants come from) and get the most out of existing employees (including innovative ideas) if they have a solid business case for employing people and managing employees. It is a well known fact that the majority of owner managers employ people because of word of mouth, recommendations and acquaintances and do not rely upon a business process for selection. However comfortable this employment approach by the help of friends and the familiy is for owner managers, it can lead to serious problems of inappropriate staff being hired, legal problems and personal difficulties. But most importantly it means employers who rely upon this approach are fishing in a very small talent pool, whilst some of their competitors, who have got the Diversity message, are gaining an advantage. Diversity management is not just how best to recruit the right person for the job (which for some SMEs is critical because they can make up 50% of the workforce!) it also about: Getting the best out the people you have already got. Giving fresh ideas and new perspectives the best chance of surfacing. Increasing the potential to exploit new and existing markets. Raising the profile and opportunities for working with large companies and institutions, who increasingly require evidence of Diversity activity. Helping SMEs deal with employment legislation requirements and red tape. Protecting owner managers from legal problems related to employee management. But mostly it is about creating a vibrant and dynamic workplace, with good morale, where people actively want to contribute to the success of the firm, rather than viewing their job as a series of tasks that need to be done to get paid. 3

4 SUCCESS-M will test a portfolio of diversity management tools in different surroundings, using e.g. the Turning Diversity into Talent & Competitiveness Package by the European Commission 2, the Equality and Diversity Forum approach Workplace equality. Turning policy into practice 3, the Diversity Management in SME by the project Diversity Management in Personalentwicklung (DiP) 4. As a result definitive answers will be given to the questions, which tools work with regard to which surroundings, what ressources they take, how effective and efficient they are. Evaluation shall take place amongst SMEs, employees and intermediaries. Potential employees need to be further qualified to the needs of the job market in general and SMEs in particular. This as a finding is not new as well as the answers to teach language and train people. But an innovative approach will be developed by SUCCESS-M combining vocational training with especially technical language skills and intercultural training by training centers together with SMEs. The new educational approach will be developed, implemented and evaluated with regard to different levels of qualifications from low to high. Therefore a main objective of this project proposal is to attract, to qualify (if necessary), to bind and to integrate people with migration background as important target group and potential of the regional economy. Migrants can solve the problems in understaffed occupation (in all levels of qualification including refugees) and strongly contribute to the economic success of their companies. Connecting SMEs with employees as a third pillar in SUCCESS-M means to create virtual platforms and real-live hubs: The precondition for successful training of migrants is a good and sustainable social integration of the workers and their families and to give them the feeling like home. As consequence this project proposal intends to provide low-threshold services in central hubs, e.g. in Kaiserslautern a hub called Houses of Nations. There these people will receive all information about employment and jobs, points of contacts and will have the possibility to attend qualification, intercultural and integration trainings. They can also meet fellows of their countries and can benefit from social care and take part at cultural events. In order to achieve the aim as mentioned above, the social and cultural integration of the migrant family as a whole and not only the working part of them is inevitable. The model-like character of this part of the project derives from the confluence of economic, social and cultural interventions which is never realized in running projects that we know. But this aspect seems to be the crucial reason, why many employment projects are not sustainable. Besides real-live hubs SUCCESS-M also plans to provide information and communication/connecting tools via technical online-plattforms. These intended platforms shall on the one hand offer information for SMEs, employees and intermediaries in the national language but also always in English. On the other hand SMEs and employees shall be able to meet virtualy and use other 2 European Commission 2008 Continuing the diversity journey, EC 2009 Turning Diversity into Talent & Competitiveness. BCFD-SME tools, EC 2008 Turning Diversity into Talent & Competitiveness. SME Business Case 3 McAndrew 2010 Workplace equality. Turning policy into practice 4 Pullen 2010 Studie Diversity Management in KMU. Erfolgreiche Umsetzungsbeispiele 4

5 languages which are acceptable for both sides. All the local-regional plattforms of the partners shall be linked, so that information and interaction can go beyond the local focus. Objective and expected result SUCCESS-M has the overall objective to create and strengthen competitive SMEs sustainable by fostering needed skills and social integration of labour migrants. Sub-objectives are to strengthen the SMEs themselves, to train and integrate labour migrants (and their families), to improve the knowledge of all (SEMs, potential employees, intermediaries) and facilitate the connection of all parties. About three local SMEs in every city/partner region will be involved, using and testing a portfolio of diversity management tools. So tested in different surroundings answers can be given to the questions, which tools work with regard to which surroundings, what ressources they take, how effective and efficient they are. Finally a SME business case and package Diversity Management will be created. A modulare curriculum combining vocational training with especially technical language skills and intercultural training with regard to different levels of qualifications by training centers run by intermediaries together with SMEs will be developed, tested, evulated and refined. Central real-live hubs run by intermediaries in every partner city/region will be adapted to provide low-threshold services where people will receive all information about employment and jobs, points of contacts and will have the possibility to attend qualification, intercultural and integration trainings, meet fellows of their countries, can benefit from social care and take part at cultural events. Every year after bringing the hubs into service an evaluation amongst the users and if necessary an adaption will take place. Online-plattforms will be implemented to provide information for SMEs, employees and intermediaries in the national language but also always in English. Further the platforms shall allow and support virtual communication and connecting amongst SMEs and employees. Partners will develop a common schema and all local-regional plattforms of the partners will be linked in a open network. Local networks of SMEs and intermediaries will be set up to ensure the process will take place as planned. These local partners will also be the linchpin to their local-regional networks to market and coomunicate the project and the results. 5

6 Partnership and 1 st Partner Meeting The project partnership consists preferably of partners who have a local competence to activate and to involve SMEs as well as potential employees especially labour migrants. In the search for partners it is emphasized that the partners in the project must fulfill a director s role as a local government or have a mandate to do this as a local organization. Individual SMEs shall benefit from this project by the implementation of local or regional projects and by the exchange of the overall experiences. The project is intended to be implemented in other medium-sized cities with a lack of qualified labour force after the project period. For this reason, it is recommended that the partnership is made up of partners of such cities/regions. Kaiserslautern was partner in several INTERREG NWE and other European funded projects. The City of Kaiserslautern will lead the submission of a project application (November 2015) and coordinate the preparation phase. Depending on the constitution of the final partnership, the City of Kaiserslautern will take the role of the lead partner, or transfer it to one of the other partners involved. The 1 st partner meeting will take place in Kaiserslautern, Germany ( at 24 th September If you have any questions with regard to the project or if you are interested in participating please get in contact with Lead Partner Supported by Gerhard Degen City of Kaiserslautern Willy-Brandt-Platz Kaiserslautern Germany gerhard.degen@kaiserslautern.de Daniel Zerweck Hugo-Heimsath-Str Dortmund Germany daniel@europize.eu 6

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