Post Comprehensive sectoral analysis of emerging competences and economic activities in the European Union
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Post Comprehensive sectoral analysis of emerging competences and economic activities in the European Union European Commission
Submitted to the European Commission, DG Employment, Social Affairs and Equal Opportunities Executed by: TNO Netherlands Organisation for Applied Scientific Research SEOR Erasmus University Rotterdam ZSI Centre for Social Innovation DG EMPL project VC/2007/0866 Post This report is published as part of a series of forward-looking sector studies on New Skills and New Jobs in the frame of the project Comprehensive Sectoral Analysis of Emerging Competences and Economic Activities in the European Union. This publication is commissioned under the European Community Programme for Employment and Social Solidarity - PROGRESS (2007-2013). This programme is managed by the Directorate-General for Employment, social affairs and equal opportunities of the European Commission. It was established to financially support the implemen- tation of the objectives of the European Union in the employment and social affairs area, as set out in the Social Agenda, and thereby contribute to the achievement of the Lisbon Strategy goals in these fields. The seven-year Programme targets all stakeholders who can help shape the development of appro- priate and effective employment and social legislation and policies, across the EU-27, EFTA-EEA and EU candidate and pre-candidate countries. PROGRESS mission is to strengthen the EU contribution in support of Member States’ commitment. PROGRESS will be instrumental in: 1. providing analysis and policy advice on PROGRESS policy areas; 2. monitoring and reporting on the implementation of EU legislation and policies in PROGRESS policy areas; 3. promoting policy transfer, learning and support among Member States on EU objectives and priorities; and 4. relaying the views of the stakeholders and society at large For more information see: http://ec.europa.eu/employment_social/progress/index_en.html The information contained in this publication does not necessarily reflect the position or opinion of the European Commission. © photos 123RF For any use or reproduction of photos which are not under European Communities copyright, permission must be sought directly from the copyright holder(s). European Commission
Post Comprehensive sectoral analysis of emerging competences and economic activities in the European Union Executive Summary The full study is available under the link http://ec.europa.eu/restructuringandjobs European Commission Directorate-General for Employment, Social Affairs and Equal Opportunities Unit F3 Manuscript completed in 2009
Neither the European Commission nor any person acting on behalf of the Commission may be held responsible for the use that may be made of the information contained in this publication. © 123rf For any use or reproduction of photos which are not under European Communities copyright,permission must be sought directly from the copyright holder(s). More information on the European Union is available on the Internet. (http://europa.eu). Europe Direct is a service to help you find answers to your questions about the European Union Freephone number (*): 00 800 6 7 8 9 10 11 (*) Certain mobile telephone operators do not allow access to 00 800 numbers or these calls may be billed. © European Communities, 2009 Reproduction is authorised provided the source is acknowledged.
Preface Education and of society and the economy, as a training, in the means to increased competitive- context of a life- ness and growth, as well as to long learning greater social cohesion, in Europe. perspective, are an indispensable This is more important than ever in means for pro- the current situation of crisis that moting adaptability and employabi will undoubtedly lead to substan- lity, active citizenship, personal and tial changes in economic activities professional fulfilment. in Europe coming years. Investment in human capital With this in mind, the Commission through better education, and the has elaborated a set of analysis of development of skills and compe- emerging competences in 18 sec- tences should be increased. It is tors. Those analysis are available important to anticipate skills needs to all economic, social and profes- — and also skills gaps — which are sional organisations, educations emerging in the European labour and training institutions, etc. They market, as well as to improve the can help them to refine their stra matching of knowledge, skills tegies and to engage into forward- and competences with the needs looking actions. Robert Verrue Director-General, Employment, Social Affairs and Equal Opportunities DG 3
Post Aims and methodology The renewed Lisbon strategy and by a number of other initiatives over European Employment strategy the oncoming year and beyond. The stress the need for Europe to place current economic crisis calls for the more emphasis on a better antici- reinforcement of policies aimed at pation of skill needs together with developing the employability of the the need to reduce labour markets workforce. This project fits within mismatches. These policies aims this policy objective. also at minimising social costs and facilitating adaptation during 18 sector studies, restructuring processes through one methodology a better anticipation and positive management of change. Globalisa- The results of this study aim to serve tion, technological change, climate as a guide in launching further EU change and demographic develop- and other actions to promote the ments (including ageing and migra- strategic management of human tion) in that respect pose huge chal- resources and to foster stronger lenges, comprising both risks and synergies between innovation, opportunities. In that context, the skills and jobs, taking into account Commission has launched recently the global context and encourag- the New Skills for New Jobs initiative ing adaptations to national and together with other related Euro- regional level. pean projects aimed at identifying future job and skills needs using To validate, add and complement quantitative modelling approaches. the findings of the project and While having advantages of robust- to make sure that results are dis- ness, stakeholders as well as the seminated as broadly as possible European Commission identified a across Europe, relevant stakehold- clear need for complementary more ers including European social part- qualitative forward-looking analy- ners, other services from the Com- sis. Consequently, the European mission with the expertise in the Commission commissioned in 2007 sectors analysed, representatives a series of 18 future-oriented sector from the European Parliament, studies (horizon 2020) on skills and the European Economic and Social jobs following a uniform, qualita- Committee, the Committee of the tive methodology. Results of these Regions, Eurofound and Cedefop studies have become available in were involved in the project from summer 2009, and will be followed the beginning. 4
Aims and methodology Sectors Covered Automotive industry Defence Textiles, wearing apparel and leather products Printing and publishing Chemicals, pharmaceuticals, rubber and plastic products Non-metallic materials (glass, cement, ceramic…) Electromechanical engineering Computer, electronic and optical products Building of ships and boats Furniture and others Electricity, gas, water & waste Distribution, trade Hotels, restaurants, catering and related services Transport Post and telecommunications Financial services (bank, insurance and others) Health and social work Other services, maintenance and cleaning A standard predefined methodol- for emerging competences and ogy was developed by a panel of occupation profiles in terms of experts under the direction of Prof jobs expanding, transforming or Maria João Rodrigues and applied declining, and their implications to all 18 studies to ensure consis- in terms of strategic choices and tency and comparability of the subsequent recommendations for results, the studies being produced companies, education and train- by different contractors. ing systems, social partners and public authorities at all levels. This Based on the basic methodologi- foresight methodology implies an cal framework, each contractor approach combining desk research executed 7 defined steps, starting and expert knowledge. with the mapping of main trends, key drivers of change, leading to At the end of each sector study a scenarios of plausible evolution final European workshop for the and their implication for employ- sector was organised by the Com- ment at the year 2020 time horizon, mission to validate results as well the identification of implications as refine recommendations. In 5
Post addition to European Commis- of all sections were summarised sion and Eurofound staff, about 20 in a SWOT analysis and were used experts per workshop from indus- as input to identify key drivers. try, academia and sector organi- sations including workers and Drivers of change employers’ representatives with a sound knowledge of jobs and On the basis of the mapping of skills were invited to comment and the sector, a set of key drivers, provide recommendations to the sector specific or not, was identi- report as part of the methodology. fied. Literature review and expert knowledge of the sector were Brief description of then used to define a conclu- the methodological steps sive list of sector-specific drivers. Drivers were classified as exog- Mapping enous or endogenous depend- ing on the ability for the sector’s The main purpose of this analy- stakeholders and policymakers sis was to provide factual back- to influence them. These lists of ground to identify key drivers drivers were also discussed in the used in the subsequent scenario experts’ p anel workshops. development. Consequently, the Report analysed recent sector Qualitative scenarios and impli- developments and trends and, at cations for employment trends the same time, depicts the current state of play in the sector with an The set of selected sectoral drivers emphasis on innovation, skills of change served as an input to and jobs. It was based on an anal- develop scenarios for the evolution ysis of available time series data of the sector and implications for and relevant existing studies. It different occupations (composition analysed 1) structural character- of employment / emerging compe- istics (production, value added, tences) in the period 2008 to 2020. employment in various dimen- sions, and related factors); 2) Implications of scenarios and the value chain; 3) technological emerging competences change and innovation; 4) trade and international competition as Scenarios were built to assess the well as 5) regulation. The results implications for the level (absolute 6
Aims and methodology demand) and composition (relative were looked at in this step of the demand compared to other job methodology, focussing more functions) of employment of dif- particularly on the specific role ferent job functions by 2020. New to be played by sectoral organi- and emergent skills required by dif- sations, educational institutions ferent job functions were identified and governments such as a stron- based on the analysis of the evolu- ger cooperation between stake- tion of past data on employment holders or an increased flexibility by occupation, on the analysis from through modularisation of educa- the present situation and of experts’ tion and training. comments during the workshop. The focus was on identifying and Recommendations describing key and critical com- petences for the future for each of Each sector study contains spe- the major occupational function in cific recommendations to the relation to the different scenarios sector. However, with the studies elaborated. These formed the basis analysing Europe as a whole, the for the strategic choices identified recommendations remain gen- in a next step. eral and need a follow-up at the national and regional level. The Strategic choices for companies to intention of the project especially meet emergent competence needs in the follow up phase is to use the results to stimulate stakeholders Each sector study assessed possible at lower territorial levels (national strategic choices in terms of feasi- / regional) to work out results in bility and actor involvement. The more details, repeat and adapt this options comprised recruiting work- exercise to local needs rather than ers from other sectors, countries, providing standardised solutions. recruiting graduates, re-training Some general recommendations employed workers as well as chang- call for an intensified co-operation ing work organisation. between relevant stakeholders, the need to invest strongly in human Specific implications capital, more standardised regu- for education and training lations, enhanced VET to increase social mobility and coordinated Options to improve or to adapt National and European Vocational education and training systems Qualifications. 7
Post The post sector – main characterisation The post sector comprises postal communication (e-mail, Internet) services (‘national post activities’) and doing business (B2B; B2C; e-bill- and courier activities. It includes ing, e-banking) have importantly activities such as pickup, transport altered the sector, and have led to and delivery of letters and parcels new products and new demand, as well as the use of the universal most importantly for express par- service infrastructure (including cels. Post services have gradually retail locations, sorting and process- shifted from an industry based on ing facilities) and carrier routes to two-way communication (mail and deliver the mail. An important dif- parcels) to an industry rendering ference exists between companies transportation (parcels, packages, with a universal service obligation freight) and advertising services. for specific mail items such as letters Liberalisation and IT developments and other companies with no such have stimulated competition, have obligation. Universal Service Provid- enabled the entry of new com- ers (USPs), have to provide services petitors (express companies) and nationwide for all customers. The have increased overall efficiency ‘other’ companies deliver primarily in the sector. USPs and traditional express parcels, a service not related mail and parcel services have faced to universal mail service. decreases but new services (e.g. hybrid mail; advertising/direct The post sector is characterized by mail) and express companies have strong change and dynamics. The shown strong growth. huge increase in IT-based ways of 8
Main economic and employment trends Main economic and employment trends Value added of the post and tele- EU economy (2.3%) as a whole dur- coms sectors combined amounted ing the period 1995-2006. Most of to €307 bn for the EU-27 in 2006, this growth, again, was observed in with the bulk of value added being telecoms. The NMS almost showed generated by the telecoms sector. double digit annual growth of Value added in post amounted to 9.6%, three times as much as over- €59.6 bn in 2004, of which almost all GDP growth. two thirds were generated by national post activities (USPs) and About 40,000 enterprises were one third by courier activities (Euro- active in the post sector, of which stat, 2008). USPs in the EU showed 37,000 in courier activities. Alto- below world average growth in the gether, they employed 1.94 mil- period 1995-2000, but much higher lion people or 0.89% of overall EU growth in 2000-2006. The express employment in 2006. Almost 81% of industry, the main competitor of all jobs in the sector were based in USPs after liberalisation, is one of the EU-15. Two thirds of total sector Europe’s fastest growing sectors, employment was in national postal with a yearly turnover growth of activities. Employment in post in 12% in 1998-2003. Although still the EU grew with 1.7% annually small compared to its ‘old’ EU-15 during the period 2000-2006, and counterpart, the express indus- in the New Member States even try has risen fivefold in the new with 2.7%. Most of this growth was Member States (NMS) during the in courier services, with the express same period. Value added annual sector showing an employment growth of the post and telecoms growth of 13% per year during the sector together was - with 5.6% - period 1998-2003. more than twice the growth of the Employment, state-of-play 2006 and changes 2000-2006 Post and courier Level 2006 Annual Share in EU Change in activities (times 1,000) growth share EU 1 944 1.7 100 0 EU 15 1 718 1.6 88 -1 NMS 225 2.7 12 1 Source: Eurostat/TNO. Post and courier services: NACE 64.1. 9
Post The majority of firms (97.2%) in the only 7.7%, respectively 4.8% of all post and telecoms sector together employment, even though their is small firms employing less than share has been increasing with 2.5 50 employees. 1.9% are medium- and 2.3% points during the period sized firms and only 0.9% are large 1995-2006. Large firms account for firms with more than 250 employ- 87.5% of employment, however ees. However, small firms and with a decreasing share. medium-sized firms account for Employment trends by job function: shares (2006) and changes in shares (in%), 2000-2006 Post and Shares, 2006 Changes in shares, 2000-2006 telecommunications EU15 NMS EU EU15 NMS EU Managers 9 9 9 -2 1 -2 Engineers 8 9 8 1 4 1 Other professionals 17 18 17 -8 4 -6 Clerks 40 47 41 1 2 1 Service workers 2 3 2 -2 -4 -2 Electronic equipment 5 5 5 2 -5 1 mechanics Craft workers. plant 7 5 7 7 -3 6 operators. drivers Elementary 12 4 11 1 2 1 occupations Source: Eurostat Labour Force Survey/TNO The impact of IT on substitution of express companies), other pro- (postal mail by Internet, by e-mail fessionals (i.e. sales & marketing), and by mobile messages), on engineers and IT professionals, and e-business (parcels) and on adver- sorting staff and mail carriers (see tising obviously affects the skills Table above: both drivers and ele- mix. Most jobs in post are in the mentary occupations). The share categories ‘clerks’ (administrative of women in overall employment and sales personnel in, for exam- of post and telecoms combined is ple, post offices and back-offices 36% in the EU-15 and 53% in the 10
Main economic and employment trends NMS. Almost half of all employees were achieved in the decrease of is younger than 40 years. Low edu- the number of employees needed cated workers in post and telecoms to staff the sorting centres as a are almost all found in post. By much larger share of letters and 2000 the percentage of employees parcels are sorted mechanically in USPs without qualification was nowadays. Other changes apply 57%. For other operators this share to sales & marketing professionals is with 43% also substantial even (decreasing in EU-15 and increas- though it decreased strongly, down ing in NMS), technicians (increasing from 55% in 1995. Improved and in EU-15, strong decrease in NMS) new technologies have allowed and engineers and IT professionals companies to increase efficiency (a gradual upward change in the EU of their logistics processes dra- as a whole). matically. Most efficiency gains Employment by gender, age and education: post and telecoms, 2000-2006 EU EU 15 NMS Level Change Level Change Level Change Women 39 1 36 0 53 -4 Age < 40 48 -4 48 -4 54 3 Age 40 – 50 30 0 30 0 27 -4 Age > 50 22 4 22 4 19 1 Low education 21 -4 25 -2 4 -4 Mid education 57 2 52 -1 71 -5 High education 22 2 23 3 25 9 Entrepreneurs 3 n.a. 2 n.a. 4 n.a. Definition Level % Total Level % Total Level % Total 2006 change % 2006 change % 2006 change % 2000-2006 2000-2006 2000-2006 Source: TNO/Alphametrics based on Eurostat Labour Force Survey 11
Post Liberalisation and technological to more-IT intensive production progress have resulted in a reduc- and newer services the nature of tion in the number of staff employed the business has changed to more in traditional postal services and a consultancy-type and technology- change in the composition of the driven services, requiring more labour force, with more part-time high skilled labour. Basic IT skills jobs and less full-time jobs. The shift have become more important for in job and skills structure reflects a operators and postmen; advanced change in technologies (automat- IT skills have become more impor- ed sorting, automation, Internet, tant for technical and professional IT), markets (packages and freight, operators. However, IT skills are not new services) and business mod- even the most important skills to els (competition from new com- be acquired, as will be shown in the petitors but also from ICT and new section on scenario implications. media companies). With the shift 12
SWOT Analysis and Identification of Main Drivers SWOT Analysis and Identification of Main Drivers The Strengths-Weaknesses-Oppor- ifferentiation was made between d tunities-Threats (SWOT) analysis exogenous drivers (drivers that and the expert-based search for form a “given” at sector level)1 and main drivers of change both yield endogenous drivers (drivers that important building bricks for the can be influenced at the sector lev- design and further elaboration el, for instance by national or Euro- of the scenarios (see Table SWOT pean policy-making, or by collec- and Table Main Drivers). A further tive effort from within the sector). SWOT Post Sector Strengths Weaknesses • Stable demand (might go down in future) • Old culture incumbents • New companies act as initiators • Universal service provision • Dense network • Oligopoly (potent players drive the sector) • New IT technologies •License obligations (entry barrier) • Diversification of job profiles • Enhanced automation leads to lower- • Trusted brands quality-lower-paid jobs • Universal service provision Opportunities Threats • Liberalisation • Security problems • IT • Less interesting jobs due to insecurity • New products and services • Relocation of enterprises • Diversification of products and services • Increasing regulation – acting as a barrier • Growth new EU members and global to growth if unclear growth • Transparent, long term and foreseeable regulation • New forms of cooperation between public/ private and private/private • High skilled job opportunities, need for up-skilling • Adaptation to new needs Source: TNO/SEOR 1 With the exception here of Technology, parts of which which can be influenced at firm level. For reasons of internal consistency of the scenarios, this driver is never- theless categorised as exogenous. 13
Post Scenarios and implications for employment Four future scenarios have been degree of uncertainty indicating explored: 1) Snail-mail, 2) Post-all, 3) possible paths for flexible anticipa- Post-IT, and 4) Email-round (see Fig- tion. In constructing the scenarios, ure). The scenarios depict plausible those drivers have been selected and credible futures for the post sec- that scored high on the criteria tor in Europe by 2020. Rather than relevance, impact and uncertainty. wishful pictures (‘dreams’, ‘crystal The relevance criterion was used ball gazing’) of the future, sce- to focus and tailor the scenarios narios are founded on drivers and to the aim at hand, i.e. drawing trends observed and are derived in inferences on the future of jobs a logical and deductive way, hence and skills and knowledge needs by making inferences about plausible 2020. Impact and uncertainty were future developments. Rather than used to define distinct directions in predictions or forecasts based on the four scenarios which have been a model, the scenario outcomes depicted in the figure below, with in this study are based on expert the exogenous drivers on the hori- opinion. The bandwidth between zontal axis and the endogenous the most extreme scenarios can drivers on the vertical axis. be interpreted as indicative for the 14
Driver Is this How How Are subs- Are subs- Are subs- Short, Are subs- Are subs- driver relevant uncertain tantial tantial tantial medium or tantial tantial relevant is this is this impacts impact impacts long run diffe- diffe- for the driver driver expec- expected expected impact? rences rences sector? for the for the ted on on S M L expec- expec- Y/N sector? sector? on the employ- new ted ted Scale Scale volume ment skills? between between Category 0-10 0-10 of compo- Y/N (groups sub- employ- sition? of) coun- sectors? ment? Y/N tries? Y/N Y/N Y/N Income per capita Y 8 5 Y N N Y Y Y Y N and household Increasing global Y 5 3 Y N N Y Y Y N Y Main drivers of change: Post sector competition Emerging Y 3 3 N N Y N N Y N N Economic economies driving global growth (new market demand, especially BRICs) Advances in IT Y 5 6 N N Y N Y Y N N impacting on organizational structures & new business models Internet changing Y 10 0 Y Y Y Y Y Y N N production and consumption patterns (e-business; etc.) 15 Scenarios and implications for employment innovation New types of Y 5 0 N Y Y Y Y Y Y N work organization (teams-based, sociotechnique, etc.) Technology, R&D and product and process New/additional Y 10 0 Y Y Y Y Y Y N N value-added services
Driver Is this How How Are subs- Are subs- Are subs- Short, Are subs- Are subs- 16 driver relevant uncertain tantial tantial tantial medium or tantial tantial Post relevant is this is this impacts impact impacts long run diffe- diffe- for the driver driver expec- expected expected impact? rences rences sector? for the for the ted on on S M L expec- expec- Y/N sector? sector? on the employ- new ted ted Scale Scale volume ment skills? between between Category 0-10 0-10 of compo- Y/N (groups sub- employ- sition? of) coun- sectors? ment? Y/N tries? Y/N Y/N Y/N Trade and market Y 10 0 Y Y Y Y Y Y Y N liberalisation (national level) EU integration – Y 5 5 Y Y Y N N Y Y N broadening (bigger domestic market) Quality of Y 10 0 Y N N Y Y Y Y Y institutions (judiciary, transparency, corruption, business climate, structural rigidities) Institutional / Political Labour market Y 10 3 Y N N Y Y Y N N regulation Environmental Y 5 3 Y Y Y Y Y Y N N regulation Security and safety Y 7 5 N N Y Y Y Y N N regulation Source: TNO-SEOR-ZSI.
Scenarios and implications for employment Four future scenarios for the post sector and main underlying drivers Endogenous, sector specific drivers: - Trade and market regulation - Labour market regulation - Quality of institutions Open market, flexible labour market regulation, high quality institutions Exogenous drivers: - Technology: • Value added services - Moderate Post-all Email-round - F ast • Process innovations - Moderate - F ast • Internet changing - Moderate - F ast consumption patterns - Lifestyle - Local Snail-mail Post-IT - Virtual community community - Income - Low -H igh Restricted competition, inflexible labour market regulation, low quality of institutions Source: TNO-SEOR-ZSI Source: TNO-SEOR-ZSI. 17
Post Note that the demographics – age- through and the quality of regula- ing (less young, more retirees) – and tory bodies is low. The demand for its effects on labour supply have not traditional and ‘new’ (IT-based) ser- explicitly been identified in select- vices is supposed to be stable over ing the drivers, as demographics time. in the time frame of 2009-2020 are relatively certain (i.e. predictable) Scenario II: Post-all and play a role across all scenari- os. Education and training, which Post-all depicts a world character- stricto sensu could be perceived ised - like in Snail-mail - by mod- as endogenous factors, have been erate technological progress, low excluded. They form - together with income growth and a community a number of other strategies and/or focus. Main difference is that com- policies - the solutions and hence a petitive market regulation and high possible response to the impact of quality institutions are present, the scenario on skills, knowledge with liberalization ensuring a high and jobs. The key features of the level of competition. The larger four scenarios can be described as corporations face increasing com- follows: petition from smaller niche players, both in the traditional postal and Scenario I: Snail-mail in the express markets. Communi- ties and local presence are major Snail-mail depicts a world charac- drivers; the search for further cost terised by a low level of change. efficiency as a result of low income Income growth levels are low, growth and moderate technologi- which result in small increases in cal progress lead to restructuring demand. The local community is by incumbents, lay-offs and wage important and technology does decreases. not change very fast. This stimu- lates ‘old’ patterns of postal services Scenario III: Post-IT to survive. Change is also not stim- ulated by competition, with large Post-IT depicts a world character- incumbents not being challenged ised by fast technological progress but rather becoming less market- and virtual communities becoming driven and inward-looking. The more important than personal con- intended next steps in postal mar- tacts. The express segment is grow- ket liberalisation are not carried ing as a result of rising incomes 18
Scenarios and implications for employment and more Internet shopping, while new entrants compete heavily. traditional postal activities are lag- Express companies are diversify- ging behind. Incumbents are not ing into other mail segments, with very efficient, as competition is their ability to service items quickly restricted and the quality of institu- giving them significant advantage. tions is low. Also companies have Flexible labour markets and ditto consolidated in order to cope with regulation facilitate this process. diminishing market demands and to try to increase efficiency, but at a prize: making them inflexible and unable to change quickly to chang- ing market conditions. Often, new entrants are absorbed by the incumbents. Consumers turn to other sectors to provide them with the services they require, leaving companies overstaffed in various departments and forcing them to reorganise. Scenario IV: Email-round In Email-round technological progress is fast, communities are going virtual and income develops favourably. Competition is further stimulated by liberalisation and deregulation. Traditional mail is on the way back, with the number of deliveries going down, offices closed down and remuneration of low educated workers going down. However, companies grow and develop many new value added services, creating new chances for workers but requiring news skills and knowledge. Incumbents and 19
Post Implications of scenarios for jobs, skills and knowledge by job function Job volume changes. All scenarios change is large, but with very differ- lead to substantial change in the ent different institutional settings, structure of employment and skills most importantly the continuation requirements, with the overall job of market liberalisation and deregu- volume change being negative in lation (Email-round) or a halt (Post-IT). all scenarios, and with more dynam- Although job numbers will go down, ics in Post-IT and Email-round (see the main differences between the Table). Post-all and Snail-mail are scenarios is in skills and knowledge the scenarios where technology has changes. Substantial differences will least impact. In Post-IT and Email- continue to exist between new com- round the impact of technological panies and ‘old’ incumbents. Implications of scenarios: job volume changes by function, 2009-2020 Snail-mail Post-all Post-IT Email-round Managers M D M M Business professionals D M I I Operations professionals M D M I Sorting staff and mail M D D D carriers Cashiers M M D D Administrative staff M D D D Technicians M D M M Transportation workers D D D D Source: TNO-SEOR-ZSI. Note: D = decrease, I = increase, M = maintain. In all scenarios except Post-all the leading in Post-all to a decrease in number of managers is expected the number of managers. In Email- to stabilise, however, for differ- round, the decrease evens out as ent reasons. With little competi- frequent changes, with high levels tion managers use their power to of diversification, decentralisation, remain in position, with not much new start-ups and concentration, external pressure to reduce man- need to be managed. The number agement layers. Under high com- of business professionals is expect- petition such pressure does exist, ed to increase in the scenarios with 20
Implications of scenarios for jobs, skills and knowledge by job function fast changing market conditions (sorting: automation; carriers: part- and technological change. In Post- time and flex workers). In high com- IT and Email-round, more business petition/fast technological change professional are needed, both to scenarios, the position of the sort- generate and execute new high ing and mail carriers is under pres- value added products and ideas. sure, resulting in further job losses. In Snail-mail and Post-all, there is This is also because of high substi- not much need for business profes- tution effects from other (technol- sionals. The reason for this is that ogy-induced) services. Snail-mail competition is little and techno- is the only scenario in which sort- logical change slow. Only in Post-all ing staff and mail carriers maintain involving important restructuring, their position, at least in numbers, business professionals are more in with local communities playing an demand. Demand for operations important role and competition professionals which includes ICT and technological change being and other engineering profession- low. A notable divide in wage pay als but also logistics specialists, is and conditions exists between old for most part driven by technologi- and younger mail carriers. New cal development and supply of new companies are hiring a new type high value added services. In Email- of distribution worker Active rede- round, their number increases. A ployment is one of the main chal- similar trend is observed in Post-IT; lenges for the coming years. The however, with the number of com- number of sales personnel stabi- panies reducing, overall demand lizes in Snail-mail and Post–all in maintains. In Snail-mail their num- which local communities play a ber is stable: as the number of role, with companies showing local companies is more stable and since presence. In Post-all incumbents infrastructure and operations are are under pressure to cut costs, focal, demand for their services can losing market share in niche mar- be expected to be stable. kets, but winning also market share because of local presence. In fast Sorting staff and mail carriers rep- paced technological growth sce- resent the bulk of employment in narios where communities become the postal sector. Their number is even more virtually oriented, local mostly dependent on demand for presence is not required anymore, postal services, but also fed by effi- providing the incentive to com- ciency measures, i.e. cost reduction panies to cutting back on costs. 21
Post Expected changes for administra- However, the latter is not expected tive personnel are similar as those to offset the decrease in demand. for sorting staff and mail carriers; Active redeployment of this cat- regarded mostly by management egory of workers is one of the main as overhead, this category is subject challenges for the coming years. to job cuts when profits are falling behind. Also competition and tech- Identification of emerging nological change forces companies competences, skills and to cut costs. Only in Snail-mail their knowledge needs number is expected to maintain. By taking the scenarios and drivers The expected growth of the num- as a starting point, logical infer- ber of technical staff is expected to ences (‘guestimates’) of skills and maintain in high paced Email-round knowledge needs were made for and Post-IT, with more value added each of the identified job functions. services being offered (requiring Skills refer to the ability to apply new equipment and maintenance), knowledge and use know-how to but decreasing demand for letter complete tasks and solve prob- mail. In Post-all reduction of over- lems. In the context of the Europe- head costs is important, stimulat- an Qualification Framework (EQF), ing companies to reorganise sort- skills are described as cognitive ing and other technical facilities as (involving the use of logical, intui- well as to cut costs by economis- tive and creative thinking) or prac- ing on maintenance. The demand tical (involving manual dexterity for transportation workers under and the use of methods, materials, fast paced technological growth tools and instruments). Knowledge decreases as part is replaced by refers to the outcome of the accu- digital items (Post-IT and Email- mulation of information through round). In Snail-mail local presence learning. It is the body of facts, requires local delivery and trans- principles, theories and practices port to local offices, although trans- that is related to a field of work or portation workers remain vulner- study. In EQF context, knowledge able to efficiency gains and hence is described as theoretical and/or outsourcing (viz. Post-all). USPs try factual. Competences refer to the to reduce the number of transport proven ability to use knowledge, workers but new start-up com- skills and personal, social and/ or panies require transport workers. methodological abilities, in work 22
Implications of scenarios for jobs, skills and knowledge by job function or study situations and in profes- elaboration of future skills and sional and personal development. knowledge needs for the purpose Competences thus defined come of this study, both have been fur- actually close to what is generally ther ‘disentangled’ to result into six understood nowadays as ‘soft skills’. clusters of similar and related skills In EQF context, competences are and knowledge needs (see Box). described in terms of responsibil- ity and autonomy. In the practical Overview of skills and knowledge needs identified for each job function and scenario Knowledge (‘hard skills’) • Legislative / regulatory knowledge (environmental / safety / labour / contracting); Language*; e-skills; Marketing skills; Technical knowledge; Product knowledge; Product development Social Skills • Team working skills; Social perceptiveness (listening / understanding); Communication; Networking; Language*; Intercultural Problem-solving Skills • Analytical skills; Interdisciplinary; Initiative, Multi-skilling; Creativity Self-management Skills • Planning; Stress and time management; Flexibility; Multi-tasking Management skills • Strategic & visionary; Coaching and team building; Change management; Project management; Process optimizing; Quality management; People skills crucial for collegial management style Entrepreneurial skills • Supplier and customer relationship / understanding; Business understanding / development; Trend setting / trend spotting Source: TNO-SEOR-ZSI 23
Post Future skills and knowledge Managers. Developments in the needs by job function postal sector, even in scenarios with strong technological change, are Across all job functions soft skills not as fast as in the telecoms and will become increasingly important, other sectors. Skills and knowledge especially so for high skilled profes- changes are therefore less dramatic sional job functions. The general overall, but still have a substantial trend of up-skilling across job func- impact for managers. For manag- tions is bound to continue in the ers Email-round, with strong tech- coming years. Due to the changing nological change and competition, nature of jobs, predefined technical has the largest skills impact as it knowledge capabilities will become drastically changes the business. somewhat less important while skills Snail-mail with slow technologi- to adapt and learn new competenc- cal change and little competition es and life-long learning will be put departs from current practices in at a premium. Certain knowledge – that the local community plays a notably e-skills – will become more more decisive role in competition important. Emerging competences and managing a company with a of higher skilled jobs mostly refer to community focus requires different how to learn, communicate, inter- techniques than the more tradi- act and adapt to changing environ- tional management skills. Knowl- ments in addition to a high quality edge is a major asset for managers. education. Emerging competences In Post-IT and Post-all regulatory in medium-educated job functions knowledge is vital in successfully that mostly execute defined tasks acquiring other companies. In sce- and processes refer mostly to spe- narios with strong technological cific knowledge sets that can be change technical knowledge and taught through learning.We illus- e-skills will become more influen- trate the key emerging skills and tial, as managers need to keep up knowledge needs for two of the with developments. In all scenarios eight distinguished job functions, social skills are needed, but with notably managers, and operations different emphasis. Most important professionals.2 is social perceptiveness. In the local community scenarios social per- 2 F or a summary of future skills and knowledge needs for these and other job categories, see the tables at the end ceptiveness is important in ident- of this summary. More extensive and detailed accounts fying what the community wants, on skills and knowledge needs can be found in the main report, with further differentiations made by scenario. and align the company accordingly. 24
Implications of scenarios for jobs, skills and knowledge by job function In scenarios where efficiency and t echnological growth. In Email- technological development are round with bottom-up change, important, social perceptiveness managers need to be approach- is directed also internally, towards able and have a more collegial employees, as many organisational management style. In all scenarios changes will affect them. Manag- leadership emerges as critical skill, ers need to be able to communi- especially leadership for guiding cate and explain. In scenarios with changes that are under way. strong technological change it is important to understand custom- Operations professionals. Logisti- ers in order to foresee develop- cal efficiency is the prime concern ments and to identify new oppor- of operations professionals who tunities. New opportunities require are involved in everything related (more) problem solving skills, most to planning and distribution sys- notably analytical skills and cre- tems, including ICT and web relat- ativity. These skills are needed in ed services. In Post-all and Post-IT, order to understand technologies where companies focus on reduc- and to be able to combine them ing costs to cope with competition, into business opportunities. Ana- operations professionals play an lytic skills are also important in important role in streamlining the restructuring. In scenarios with organisation: improving the effi- forced reorganizations (Post-all ciency of processes and systems, and Post-IT), coaching, team build- and integrating new services. In ing and change management skills Email-round the focus is on inte- are in high demand. In fast paced grating new value added services. scenarios flexibility is key; planning In Snail-mail characterised by little skills are more important in sce- change and little competition, narios of slow paced technological companies focus on process reli- growth. Marketing, business devel- ability and coherence of business opment and trend spotting skills operations with local communities. are most relevant in scenarios with strong technological change. In all E-skills, operational and logistical scenarios it is crucial that manag- technical knowledge as well as man- ers understand their suppliers and agement knowledge are important customers.Most diversity occurs for operational professionals, espe- in management skills, with strate- cially in scenarios with strong tech- gic skills in scenarios with strong nological change. In scenarios with 25
Post slow technological progress, social efficiency). Business development perceptiveness is an increasingly and understanding consumers and required and challenging skill, with suppliers skills are key in all sce- the role of local communities being narios. Trend setting and spotting vital for the organisation. Network- are very important in Email-round. ing skills, communication skills and All scenarios require some form of team working skills are especially new management skills. Strategic key in scenarios of strong techno- and visionary skills are especially logical change, in convincing man- relevant in Email-round and Post- agers and business professionals of IT. As companies economise on the need to allocate more means to overhead, quality management new technologies. Strong techno- becomes an issue. In dynamic sce- logical change also requires more narios change management and problem-solving skills, including project management skills are signalling changes and to acting required, either to deal with forced accordingly, as well as analytical changes or to develop new pos- skills. Interdisciplinary skills are sibilities. Moreover in all scenarios important, as new value added process optimising skill are highly services are dependent on many relevant. different technologies. Changes in the business environment require These examples show that there the operational professionals to will not only be a continuous trend adjust themselves to new circum- of up-skilling in the coming years, stances. The most obvious related but also that skills and knowledge self management skills are flexibil- needs – and related gaps and ity in Email-round (fast changing shortages – need to be addressed technologies) and better planning flexibly, taking in mind the trajec- skills in Email-round, Post-IT and tory of strategic change of both the Post-all (improving organisational firm and the sector. 26
Main strategic choices to meet skill and knowledge needs Main strategic choices to meet skill and knowledge needs In order to meet future skills and overall longer-term business strat- knowledge needs, apt and timely egy, also for SMEs. Some solutions solutions – referred to here as stra- will be found within the company tegic choices - are required (see itself, e.g. through reorganising table below). Strategic choices functions within or between plants, refer and relate to the medium- and by offering (re)training trajecto- longer term, even though emerg- ries or by active global sourcing ing skills and knowledge needs in of personnel. For SMEs and espe- practice may also apply to the now cially for micro-enterprises such and tomorrow. Essential in seeking longer-term, more strategic human appropriate solutions is to keep resource management often will this longer time perspective in be more difficult to organise and mind. Rather than focusing on one operationalise. single solution, a set of linked stra- tegic choices will in most cases be In order to address the identified the best strategy to follow. Prioritis- future skills and knowledge needs ing both in time (what first, where in an encompassing and timely to follow up) and in allocation of manner, appropriate joint action is resources (including budgetary needed by all stakeholders, includ- focus) followed by further fine-tun- ing the industry (firms, sector ing is a clear necessity to guarantee organisations and social partners), that skills needs are targeted and training and education institutes, solved. Skill needs can be identi- intermediary organisations and, fied at various levels, ranging from last but not least, government at assessments at the national or even all levels (EU, national, regional and European sector level to more pre- local). Collaboration is needed in cise assessments at the regional order to agree on and implement and company level. Increasingly the a package of feasible solutions. identification of skills and knowl- Timely, targeted and reliable infor- edge needs but also the search mation to make decisions – i.e. ade- for adequate solutions will have quate monitoring and analysis - is to become an integral part of an an essential prerequisite. 27
Post Conclusions Implications, conclusions and (higher) education; recommendations refer to two distinct levels: the individual job 4) Increase flexibility by pro- function (micro) level focusing on moting e-learning and blended available options by job function learning; and the more aggregate generic ‘meso-level’ level. They are aimed 5) Pro-actively re-train and up- at sectoral stakeholders (firms, skill employees and those made social partner, education and redundant; training institutes and others) and policy-makers. The preceding 6) Train the trainers – keep voca- table summarises the micro-level tional training up-to-date; options and highlights the main findings by category. At the meso- 7) Improve the provision of infor- level a further distinction is made mation on future skills and train- between education and training ing needs to both students and on the one hand and ‘other’ main trainers; conclusions and recommenda- tions on the other, as follows: 8) Provide career guidance for labour market entrants and Conclusions and employees; recommendations on education and training 9) Actively promote multi-skilling; 1) Adapt and modernise voca- 10) Provide special training and tional education and training support to self-employed and (VET) and general education sys- part-time employees; tems, but do this nationally rather than at the EU level; 11) Take special courses and sup- port for older workers seriously; 2) Modernise VET by enhancing flexibility and addressing emer Main other conclusions ging training needs by modulari- and recommendations sation; 1) Improve the image and attrac- 3) Work towards closer collabo- tiveness of the sector in view ration between companies and of attracting high-skilled and 28
Conclusions technical staff; 2) Collaborate with all relevant stakeholders and intensify co- operation: Partnerships for Inno- vation and Job creation and Social Dialogue; 3) Recognise prior learning, pro- mote skills assessments and their validation and stimulate the international and intersectoral acknowledgement of qualifica- tion certificates; 4) Invest strongly in human capital and and enhance the possibilities to engage in life-long learning. 29
30 Snail-mail Post-all Post-IT Email-round Post 1. Employment volume M D M M change 2. Skills changes 3 9 15 19 counted 3. Emerging skills needs Self-management, Management, Social, Entrepreneurship, Entrepreneurship, Social, Entrepreneurship, Self- Management, Management, Social, Entrepreneurship management Knowledge, Social, Entrepreneurship, Self-management, Self-management, Managers Problem-solving Problem-solving 4. Most important In-house development; In-house development; In-house In-house development; solutions recruiting from other recruiting from other development; recruiting from other sectors sectors recruiting from other sectors sectors 5. Most important actors C C C C 1. Employment volume D M I I change main players in anticipatory action by scenario 2. Skills changes 2 9 12 22 counted 3. Emerging skills needs Social, Social, Management, Social, Knowledge, Entrepreneurship, Entrepreneurship Entrepreneurship, Management, Management, Knowledge, Problem- Entrepreneurship, Self-management, solving Problem-solving Problem-solving, Summary of job volumes, skills changes, strategic choices and Social, Knowledge Business professionals 4. Most important Recruit Recruit, (Re)train Recruit, (Re)train Recruit, (Re)train solutions 5. Most important actors C C C C
1. Employment volume M D M I change 2. Skills changes 4 9 16 18 counted 3. Emerging skills needs Entrepreneurship, Management, Problem solving, Problem solving, Management, Social Entrepreneurship, Management, Management, Social, Self- Knowledge, Knowledge,Entre- management Entrepreneurship, preneurship, Social, Social, Self- Self-management management Operations professionals 4. Most important Recruit Recruit, (Re)train Recruit, (Re)train Recruit, (Re)train solutions 5. Most important actors C, E C, E C, E C, E 1. Employment volume M D D D change 2. Skills changes 2 7 6 8 counted 3. Emerging skills needs Social Self-management Self-management Self-management (stress), Social, (stress), Problem- (stress), Social, Problem-solving solving, Knowledge Knowledge 4. Most important Retrain, Information Retrain, Recruit, Retrain, Recruit, Retrain, Recruit, solutions Information Information Information Sorting staff and mail carriers 5. Most important actors C, E, S, U C, E, S, U C, E, S, U C, E, S, U 31 Conclusions
32 Snail-mail Post-all Post-IT Email-round Post 1. Employment volume M M D D change 2. Skills changes 3 9 8 8 counted 3. Emerging skills needs Social Social, Problem solving Knowledge Knowledge (regulatory), (regulatory), Self-management, Self-management, Problem solving Problem solving Sales personnel Entrepreneurship Entrepreneurship 4. Most important (Re)train, Information (Re)train, Information (Re)train, Information (Re)train, Information solutions 5. Most important actors C, E, S, U C, E, S, U C, E, S, U C, E, S, U 1. Employment volume M D D D change 2. Skills changes 2 6 8 13 counted 3. Emerging skills needs Management, Problem solving, Problem solving, Problem solving, Entrepreneurship Management, Self- Management, Self- Self-management, management management Entrepreneurship, Management Administrative staff 4. Most important (Re)train, Information (Re)train, Information (Re)train, Information (Re)train, Information solutions 5. Most important actors C, E C, E C, E C, E
1. Employment volume M D M M change 2. Skills changes 3 2 9 9 counted 3. Emerging skills needs Self-management, Self-management, Problem solving, Self- Problem solving, Self- Social, Entrepreneurship management, Social, management, Social, Entrepreneurship Entrepreneurship Entrepreneurship Technicians 4. Most important (Re)train, Information (Re)train, Information (Re)train, Information, (Re)train, Information, solutions New courses New courses 5. Most important actors C, E C, E C, E C, E 1. Employment volume D D D D change 2. Skills changes 1 2 2 2 counted 3. Emerging skills needs Self-management Self-management Self-management Self-management 4. Most important (Re)train, Information (Re)train, Information (Re)train, Information (Re)train, Information solutions Transportation workers 5. Most important actors C, E, U C, E, U C, E, U C, E, U C=Companies; S=Sectoral organisations, U=trade Unions; E=Education and training institutes; G=Government (EU, Member State, regional, local). Notes: 1) The term ‘skills’ includes knowledge (needs). 2) The second row ‘skills changes counted’ refers to the number of skills categories in the most extreme scenario that are up to change. 3) Indicated in bold: skills or knowledge sub-categories up for the strongest upgrade need. 33 Conclusions
Where to find more information? The following information can be found on the Europa website under the address: http://ec.europa.eu/restructuringandjobs The other 17 sector studies on the analysis of the sector’s evolution and future skills needs The Restructuring in Europe report The thematic restructuring forums The checklist and the toolkit on restructuring processes The training guide for SMEs The national seminars on restructuring in 27 EU countries Official documents related to restructuring policies
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