How to Engage Private Sector in Skills Development for Employability, Equity and ProsperityCreating Jobs for Equity and ProsperitySub-regional Conference on Employment and Social Inclusion in the South East Europe and Turkey

17 April 2015

United Nations Development ProgrammeIstanbul International Center for Private Sector in Development

From Unemployment to Award Winning Designer

“The training made me realize what can actually

be done in the design industry. BUTGEM was a key to shape my future”

“At BUTGEM we had the opportunity to work with experienced trainers who are actually in the sector, with up-to-date and valuable knowledge”

Youth & skills mismatch

• High unemployment rates for disadvantaged groups, such as youth and women, in both LDCs and developed countries According to 2013 World Bank Report, 620

million young people are neither working nor studying

According to ILO, youth unemployment reached to 74.5 million in 2013

600 million new jobs are needed in the next 15 years to be able to integrate youth to the workforce

• Businesses do not have adequate access to skilled human resources, especially for technical and vocational jobs. 40% of employers can't fill entry jobs 45% of youth are in jobs that don't use their

skills

Skills training as a response

• Population is the only growing resource and it will play a critical role for sustainable development in the long run

• According to UN DESA Population Division (2009): World population will reach to 9 billion by 2050 People above 60 will exceed the youth population

• Skills development and vocational education and training as a response

Changing perspectives

Source: From ILO. N.D. The Changing Role of Government and Other Stakeholders in Vocational Education and Training. Image obtained from ACPET

UNDP Private Sector Strategy 2007

• Priority 1 – Establishing the Policy and Institutional Infrastructure

• Priority 2 - Facilitating Pro-Poor Value Chain Integration

• Priority 3 - Brokering Investments in Pro-Poor Goods and Services

• Priority 4 - Fostering Inclusive Entrepreneurship

• Priority 5 - Encouraging Corporate Social Responsibility in support of Inclusive Market Development and the MDGs

Skills for Inclusive Markets

• 2008 Growing Inclusive Markets report of UNDP has identified the absence of necessary knowledge and skills as one of the key constraints that limit the growth of inclusive markets.

• Without the required skills, integrating the disadvantaged to the market as consumers, entrepreneurs and employees is challenging.

• Low productivity caused by absence of skills and information becomes a significant barrier towards business growth.

• Thus, investing in human capital becomes key for achieving improved development outcomes and furthering the growth of the inclusive markets.

Case Studies from Turkey

Case Studies from Turkey - BUTGEM

• A non-profit vocational and technical training body establish in 2009 to respond to industry’s need for skilled labor and to improve the employability of youth

• Financed by Bursa CCI and industrialists

• Free-of-charge trainings on textiles, automotive metals, mechatronics, computer software, hardware, etc.

• Close proximity to productions sites• Employment rate for successful

trainees is %80. • 6, 432 people trained, 35% female

Case Studies from Turkey - MLMM

• Launched by Koç Holding and Vehbi Koç Foundation in a partnership with Koç Group Companies and the Ministry of Education in 2006

• Aims to promote youth employment through creating awareness among the public of the importance of vocational education and developing public-private partnership

• 8,118 scholars from 264 schools around Turkey

• 576 volunteer coaches and training of more than 400 teachers

• School-company partnership guide and several academic studies

• 29 laboratories, 7 training centers and one vocational college

Case Studies from Turkey - ÖZİMEK

• Launched in 2007 by the Istanbul Chamber of Commerce and other local public institutions

• Aim of addressing unemployment in Istanbul by providing vocational training courses to a wide range of social groups

• Use of idle capacity• Effective project management and

institutionalization as a single body• 37,751 trained• %70 of trainees received a job

offer, better salary or higher position

Case Studies from Turkey - SÜTAŞ

• Partnership with Uludağ University in 1996 to improve private sector–university collaboration in vocational education

• Partnership with the Turkish Ministry of Food, Agriculture and Livestock (MFAL) to train dairy farmers, animal keepers and technical personnel in dairy breeding

• «From Farm to Fork» value-chain approach

• Trained more than 15,000 people including farmers, producers, entrepreneurs and students

• 70% of trained farmers reported increase in milk productivity and 45% attained higher income and profitability

• 84% satisfaction rate among students

Case Studies from Turkey - UMEM

• Launched as a nationwide partnership by TOBB, TOBB Economy and Technology University and public institutions in 2010

• Increasing the effectiveness of vocational training

• Ensuring the participation of chambers of commerce and employers in vocational education and training.

• More than 70,000 trained with 70% employed

• 106 million TL (~ USD $40 million) worth of infrastructural investment

• More than 6,000 trainers trained • Formed provincial course structures

Sourcing

Training Standards & Content

Training Assessme

nt & Certificati

on

Placement

Post-Placem

ent

Highlights

How can the private sector contribute?

PS engagement in sourcing

• Supply-demand identification and placement linkages UMEM labor markets needs

analysis• Advocacy to increase

attractiveness of vocational education MLMM by Koç Holding NSDC’s «Hunar hai toh

Kadar hai» campaign Centum WorkSkills

mobilization camps

Training standards and content

• Contributing to identification of required skills and competencies

– National Qualifications Framework– Sector Skills Councils

• Curriculum and content development with the private sector

– Customizing content in line with private sector needs

– Utilization of visual, audio and kinesthetic content

• Training of trainers – Provision of sectoral skills to trainers, e.g. master

trainer system

Demand-oriented training delivery

Private sector support to counseling and choice of training

- Screening and aptitude tests

The acquisition of practical and industry-relevant skills through internships/apprenticeships, on-the-job trainings, mentorship, etc.

- Sütaş’ vocational college partnerships- BUTGEM trainings with up-to-date

equipment and machinery

Other innovative practices of the business community in skills delivery, such as the leveraging of technology- IL&FS Skills – K-YAN

Training for impact

Private sector-led and industry oriented skills delivery to disadvantaged

- Youth4Jobs Green skills for developing

skilled human resources for environment-friendly businesses

CSR initiatives focusing on skills development- Incentivizing the private sector, e.g. mandatory CSR law

Use of innovations for scale

Assessment & certification

• Certification brings empowerment and mobility, along with higher motivation.

• BUTGEM Cooperation with Middle East Technical University

and GSI-SLV Munchen to award internationally recognized “International Welding Engineering” and “German Welding Sodality” diplomas

Partnership with Potsdam CCI for certificates with international validity (approved by the German National Qualifications Center) in inert-gas and argon welding

Partnership with Aachen CCI for certification in argon welding, inert-gas welding, automation systems, textile design, metal plate design and CNC operator training courses

Placement

• Employment linkages and partnerships with the private sector

- Employment priority in MLMM

- ÖZİMEK’s human resources market

- Video resumes, job fairs, campus raids, etc.

Post-placement support

• Hand-holding activities • Assistance to career

progression and career ladder, such as workplace coaching

Skills for inclusion and employability

• Private sector ownership in the design and delivery of skills increases the effectiveness and scale of skills training initiatives, leading to employment through bridging the skills gap.

• Engagement of companies and business support organizations in multi-stakeholder partnerships for skills results in faster and more effective job placement for poor people.

• Skilled labor force will improve the productivity of the industries and will bring further growth and job creation opportunities.