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Flexibility in the Labour Market: WIN-WIN-WIN

This presentation discusses the changing nature of labour relations and social responsibility in the modern workforce. It explores the need for adaptability to meet new demands, the rise of flexible staffing solutions, and the balance between labour market flexibility and good employment rates. The presentation also examines the social responsibility of employers in creating a flexible and supportive work environment.

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Flexibility in the Labour Market: WIN-WIN-WIN

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  1. Let’s make this a goodWorking Day

  2. Labour Relations and Social Responsibility Flexibility in the Labour Market - WIN – WIN - WIN PARE HRM Conference 2004, Tartu, Estonia Fredrik Karlsson Marjo Lipponen Manpower Oy

  3. Times have changed How about us? 1980 – average 2,5 children per household 2004 – average 2,5 households per child Culture and values are changing rapidly – are we ready? People

  4. Can we adapt ourselves to new demands on flexibility? 1995 – 1 job ad / 300 applicantions 2004 – 30 job ads / 1 application Loyalty changes!

  5. 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 !!

  6. Transfer to low cost countries Out-sourcing Sub-contracting Labour Market Development Efficiency Traditional work and staffing Flexible staffing incl. Employer’s responsibilities EU-average 3% Finland 0,4% Flexibility Fixed term contracts ”Substituting” Spain 19% Finland 16%

  7. 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? vs. • Internal flexibility • overtime • organisational • changes • External flexibility • fixed term • temporary staffing • external services

  8. ”Yesterday” • ”Tomorrow” Employees at work Employees at work Time Time Fixed term or project staff Own permanent staff Flexible Staffing Solutions

  9. Global & EU regulations - ILO Convention 156 - antidiscrimination - general ethics - efficient employment - EU ”Agency Work Directive”? - assignment period? - assignment ”chains”? - user comparability? - employee security?

  10. McKinsey report 2003 - 4 millionnew 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

  11. 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!

  12. we care s we share s we dare Manpower Global Values people knowledge innovation

  13. 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

  14. Temporary Staffing Contracts Employee Manpower Client

  15. Temporary Staffing Contracts Employee Manpower Client

  16. Temporary Staffing Contracts Employee Manpower Client

  17. Temporary Staffing Contracts Employee “Body- Shopping” 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

  18. Temporary Staffing Contracts 2-4 weeks Employee “Added Security” 2-4 weeks Manpower 4 weeks Client • 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

  19. Temporary Staffing Contracts Employee Guarantee pay “Perm Model” Manpower Client • 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

  20. Social Responsibility of the Employer Client Manpower Employee

  21. Social Responsibility of the Employer … and the winner is..? WIN WIN Client Manpower Employee WIN

  22. Flexibility of the Labour Market … and the winner is..? WIN WIN Employment rate Employers WIN Employees

  23. 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.”

  24. Manpower The Perfect Match Operating in Tallinn by April 2004Estonia Pst 1/3Regional Manager: Heigo Kaldra

  25. 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

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