Germany’s Regional Unemployment Solutions Seminar: “ Effectice Regional Unemployment Solutions” in Jekabpils / Valmie

1. Joachim Ossmann, Chairman oftheboard, Employment Agency Schwandorf Germany’s Regional Unemployment SolutionsSeminar:“Effectice Regional Unemployment Solutions”inJekabpils / Valmiera24th/ 25thMarch 2014

3. Agenda • Establishment of companies supportedby the Employment Agency • Laying the foundations • Tasks during the decision process concerning the location • Assistance during the establishment process

4. Parties involved in location decision and establishment processes Investor Location • Business development agency • Local: Coordinates the process on the part of the location • Regional: Decides on subsidies • Employer • Provides specifications for the location evaluation • Decides on location/establishment of new companies • Employment Agency • Gives assistance in personnel recruitment process (analysis of customer profiles; training, if necessary) • Decides on subsidies • Consultancy firm • Coordinates the process on the part of the investor • Supports the investor in location evaluation • Represents the investor in the case of anonymous investors • City/administrative district • Makes specific offers concerning properties, further assistance, if necessary Parties additionally involved depending on the case: real estate brokers, lawyers, educational institutions,...

5. Networking of parties involved in location decisions/establishment of new companies as an essential requirement • Observations • In the case of location requests, it is essential that all parties involved are integrated at an early stage and that local interaction between them is smooth • Furthermore, the local cooperation level is observable by the investor and influences his location decision • Consequence • Strong networking of the Employment Agency with the parties involved in location decisions is required • Business development agency of the city/administrative district • Business development agency of the state • Cities/administrative districts

6. Required formats for the preparation of the establishment of new companies Format Addressees Essential contents • Labour market/capability of applicants • Range of services of the Employment Agency • Assistance for employers in personnel recruitment • Investors • Local/regional business development agency Presentations Objective Information on services of the Employment Agency • Further parties involved in establishment processes • Range of services of the Employment Agency • Assistance for employers in personnel recruitment Flyer

7. Agenda • Establishment of companies supportedby the Employment Agency • Laying the foundations • Tasks during the decision process concerning the location • Assistance during the establishment process

8. OpportunitytotakeinfluencefortheEmployment Agency* Location decisions – Typical “hard” criteria for the location evaluation by investors General location (city, administrative district) Definite location (property) • Land area/building space • Construction density • Investment costs, current expenses • Location • Central/peripheral • Connection to public transport • Terms/restrictions of use • ... • Future employees • Availability of required qualifications • Educational institutions/universities in the surrounding area • Income level • Local branch situation of the investor • International transport connection (flight connections) • Standard of living/quality of life at the location • Educational and cultural offer (theatres, child care facilities,...) • Cost of living (rents,...) • Environmental quality • ... Weighted differently by various investors Financial support • Availability of property (city/administrative district/other owners) • Labour cost subsidies • Qualification costs, training costs • Further assistance** * Either directly or by providing transparency ** E.g. provisioning of rooms for temporary use or similar

9. Location decisions – Typical “soft” criteria for the selection of location by investors Subjects What is meant ? • Prompt and high-quality responding to requests • Communication at eye level (Management of the Employment Agency!) • Reliability of undertakings, dates, etc. Professionalism All points of high importance in the cooperation between the Employment Agency and business development agency/investor as well as for the entire process of establishing new companies! • Solution-focused approach: joint search for solutions when problems occur, flexibility • Smooth collaboration between business development agency, city, administrative district, Agency and further parties involved on-site Willingness to cooperate • Treatment of establishment of new companies with high priority, communicating this attitude • Active addressing of important issues – no purely reactive behaviour Entrepreneurship

10. Dealing with initial requests: Typical subjects for the Employment Agency and sources of information (1/2) Subjects Aspects Generally available sources • Unions; collective agreements, wage databases • Employers’ associations • State Statistical Offices • Standard wages • Real wages Wage level • Unions; collective agreements • Employers’ associations • State Statistical Offices • Unions; wage scale regulations • (Know-how of the Agencies) • Standard working hours • Usual working hours • Overtime • Working hoursschemes • Shiftwork • Work atnight, on weekends, Sundaysandpublicholidays Working hours • State Statistical Offices Important: Initial requests often require a very rapid reaction

11. Dealing with initial requests: Typical subjects for the Employment Agency and sources of information (2/2) Subjects Aspects Generally available sources • Unions Fixed-term contracts* • Regional importance • Number/turnover of companies • Gross Domestic Product per resident • Dynamics • ... Business figures of the specific location • State Statistical Offices • (Know-how of the Agencies) • Unions Co-determination at plant level • Role/presence of unions* Important: Initial requests often require a very rapid reaction *Especially of interest for foreign investors

12. Specific assistance in establishment processes given by the Employment Agency Assistance • Expert function in the labour market • Recruiting/pre-selection of applicants, occupations, qualification; setting up a pool of applicants • Precise preparation of applicants, it is checked whether training costs can be borne* • Assistance during job familiarisation (traineeships) • It is checked whether labour cost subsidies can be granted* “Standard portfolio” of the Employment Agency Specific offer to be designed in accordance with the investor’s requirements • Provision of bureaus in the Employment Agency for the conduction of information events, job interviews in initial phase • Promotion of the employer via notice board, hand-outs, etc. Further options of assistance * based on the individual case

13. Agenda • Establishment of companies supportedby the Employment Agency • Laying the foundations • Tasks during the decision process concerning the location • Assistance during the establishment process

14. Essential activities after location decision – Start of operative assistance of the establishment process Location decision • Generally: press briefing investor on location decision • Further operative assistance of the establishment • Status follow-up of success of activities (number of placements,...) • Direct communication between investor and Management when problems occur • Information of employees of the Employment Agency about establishment and planned proceedings • Information of surrounding Agencies • Determination of contact persons for further collaboration between Employment Agency and investor • Fixed process how to proceed, formats • Start of operational work with investor