Presentation on theme: "1 What is the attitude of Belgian companies towards international recruitment as a possible solution for the increasing shortage of knowledge workers?"— Presentation transcript:
1 What is the attitude of Belgian companies towards international recruitment as a possible solution for the increasing shortage of knowledge workers? Elena Secuianu and Maxime Driesen UNIVERSITY OF ANTWERP Master of Applied Economic Sciences - Business Administration Strategy and organisation Promoter: Prof. Dr. Carolyn Declerck Be Wanted: Marc Van Hoof, Tine Soers & Koenraad D’helft Master thesis
2 •Unemployment rate 2012: 7,4% •Certain vacancies remain open Demand for highly skilled employees is growing strongly •Mismatch at the labour market: bottleneck professions •Tension indicator = number of unemployed job seekers per vacancy -Belgium: low tension indicator tight labour market -Important factor: aging retirement of the baby boom generation Current situation of the labour market
3 •Causes on the demand side -Nature and image of the function/ business/sector -Recruitment behavior and selection procedures •Causes on the supply side -Income -Geographical mobility -Qualifications -Labour market behavior •Causes due to intermediaries -Lock in-effect -Alignment between offered courses and the needs of employers •Environmental factors -Economic cycle -Demography -Government policies -Education Causes of the bottleneck professions - VDAB
4 •Paradox of the labour market (worldwide): WEF: “Movements such as the Arab Spring and Occupy Wall Street are fuelled in part by anger about high youth unemployment and the mismatch between the skills that people have and those demanded by business. Understanding and harnessing talent mobility is now more critical than ever.” •Imbalances in human capital markets: talent shortages high unemployment rates •Talent Mobility apply when it is a win-win solution and when it is feasible International recruitment – Is it a solution?
5 Purpose of our empirical research General objective: Investigate the attitude of Belgian companies towards international recruitment. Methodology: •Quantitative research – Survey 1.Are Belgian companies aware of shortage in knowledge jobs? Does it affect their business? Do they expect a greater shortage in the future? 2.Are they willing and prepared to fill in vacancies with international recruits? 3.What are the experiences of firms who have hired highly educated workers in the past? •Qualitative research – Case Study
6 •Number of respondents: 53 -Experience with international recruitment: 29 -Mostly visitors of the HR Xpo (Kortrijk), however equal distribution over Flanders •64% is currently experiencing a shortage of knowledge workers -51% expect a larger shortage in the future •Most critical functions - Engineers(VDAB 2012: 0,6) -Technicians(VDAB 2012: 1,6) -Informaticians(VDAB 2012: 1,7) Quantitative research - survey
7 Negative impact on continuity • Most important causes: - number of graduates too low - qualitative gap between education and required competencies
8 Current handling of the deficit • 2/3 of the vacancies remains open • Redistribution of job responsibilities: durable solution? • 30% willing to recruit internationally • What holds them back?
9 Difficulties Companies who cooperated with an external recruitment agency consider all difficulties as less restraining compared to companies who have handled it internally. All differences are significant or marginal significant.
10 Advantages Although companies with experience value the benefits of international recruitment slightly better, the difference with companies lacking experience is not significant.
11 Added value of an international recruitment agency
12 Foreign recruitment per statute International recruitment is often used for high-level functions.
13 Geographic preference International recruitment mainly from neighbouring countries.
14 Satisfaction Companies who cooperated with an external recruitment agency value a slightly greater satisfaction (only based on integration and recruitment process).
15 •In-dept interview with Vicky Welvaert – HR Director of ASCO Industries •HQ in Zaventem with circa 1000 employees •ASCO Industries is a world leader in the design and manufacturing of functional components for the aerospace industry. •Production of high qualitative components through continuous technological innovation and creativity high need for technically skilled workers (CnC-operators) Qualitative research – case study
16 •National solutions: -Redistribution of tasks -Employer branding -Multiple recruitment channels -Close contacts with technical schools •International solutions: -20 (technically skilled) workers from Poland -Profile, background, language -Cooperation with a recruitment agency ASCO Industries
17 •Potential obstacles 1.Legal and administrative difficulties 2.Cultural differences 3.Equivalence of diplomas 4.Language and integration •Advantages of international recruitment -Finding the right workers to fill the vacancies -Increase of the differentiation and creativity No disadvantages if one cooperates with an external recruitment agency. ASCO Industries
18 •Strong congruence between survey and case study •Most fundamental obstacles: -Language and cultural differences -Inequivalence of diplomas -Legal and administrative conditions -Personal restrictions •Most critical functions -Techinicians -Engineers -Informaticians Conclusion of empirical research
19 •Divided opinions regarding the added value of an external recruitment agency -Survey: moderate satisfaction of international recruitment -Case-study: high satisfaction of international recruitment potential obstacles can be overcome! •Belgian companies do not (yet?) consider international recruitment as a full solution for the increasing shortage of knowledge workers Conclusion of empirical research
20 1.72% of the respondents indicated that they would rely on the services of an external recruitment agency, although in practice this often not the case. Personal conviction vs. general organizational policy? What are the influencing factors? (e.g. recruitment budget) 2.40% of the respondents indicated their willingness to recruit from abroad, although only 20% of companies actually made use of this solution. Why is this? 3.Difference between VDAB-analysis (2012) and own research regarding the importance of aging on the Belgian labour market. Literature: very decisive for the shortage of knowledge workers Survey: moderate impact on the shortage of knowledge workers Future research recommendations