United Nations Public Service Awards Case Studies

The labour-market situation of the Southern Great Plain region - where the initiative was introduced - is worse than the national average in Hungary. The region’s activity rate is only 53% and its unemployment rate is 8.5% compared to the national 55% and 7.7%.
In November 2008 67.400 unemployed people lived in the region 39% of whom had 8 grade qualification or even less than that. Most of them were unskilled workers.
It is generally true for the labour market situation of the Southern Great Plain Region that it has to face the problems of both the lack of labour force and unemployment. Companies in certain industries are not able to satisfy the demands of their contracting parties with qualified workforce. At the same time, employees do not have qualifications that match the demands of the economy.

The Labour Centre conducted a survey in order to bring to light the factors preventing the registered unemployed from finding a job. They found that the workforce is not available for the profit-oriented organizations at the proper place and time, which makes finding a job difficult. The fact that employers do not really take part in the organization of trainings is the source of additional problems. There is no direct co-operation between employers and training institutions and practical training lacks the necessary institutional background.

Though qualified workforce is available, vacancies are often not filled with it because beside proper qualification, employability requirements and key competencies and are also inevitable conditions of the employment. The last two can only be revealed with direct communication with the employers.

The labour centre decided to create a training system satisfying labour-market demands, and it worked out the model of the Demand-led Vocational Training System in cooperation with the employers. The main objective of the system is finding balance between the demands of the economy and that of the training. Employers’ involvement is the prerequisite of the implementation. The former model of the training process that used to involve three actors (job-seekers, training institution and labour centre) was extended with employers. Major employers were contacted personally and asked to fill in questionnaires. That method proved to be an efficient way of co-operation revealing their exact demand for qualified workforce and human resource development plans. Priority was given to the demand for qualified workforce and to the would-be employees’ key competencies and abilities for the position. In the new system employers play important role in selecting the people to be trained, working out the training programme, providing background for the practical training and employing those who finished the trainings. The infrastructure was well-developed enough for operating the model, but the labour centre had to reorganize its working processes in order to make necessary human resource available.

What is the initiative about? (the solution)
Since the Demand-led Vocational Training System is based on economic factors it is able to implement sustainable development, to provide workforce satisfying the demands of the employers, and to reveal the requirements employees have to meet. With the information gained from the employers it helps disclosing their human resource development plans and future labour-market demands. With hosting practical trainings employers make it possible for their employees to have an insight into their future workplace. A connection is established between the employer and the job-seeker already at the stage of the practical training, which provides opportunity for clarifying the expectations on both sides. An additional advantage of the system is that it eliminates the risks of the probation period and reduce the number of cases of short-term employment. Therefore, it contributes to saving extra costs of temporary employment and avoiding psychological damage caused by failures. It is also beneficial from the point of view of the families since the breadwinner gains in prestige if (s)he does not have to face unemployment. It gives great opportunity especially for the civil organizations for transmitting good practices and facilitates better co-operation between different organizations, e. g. between the municipalities and labour centres. It is a significant achievement that the services provided by the labour centre has become much more widely known. The operation of the Demand-led Vocational Training System achieved important results in the field of employment policy as well. On the basis of the survey on economical demands the orientation and types of trainings can be defined more precisely, and a well-grounded training programme can be worked out. A continuous survey of the job-seekers’ needs is also an integral part of the process. The questionnaires, available for all the job-seekers visiting the job centres, make invisible training needs visible, and bring to light whether the job-seeker is really ready for training or work. In case the job-seekers do not prove to be ready for work, the questionnaire helps finding out the reasons preventing them from it, and if needed counselling, rehabilitation programmes can be provided for them. Those who take part in trainings solely with the purpose of making a living for a while and do not intend to find a job after finishing the costly courses, can be revealed with that method. The questionnaire survey helps distinguishing those really in need of rehabilitation from people who do not really want to find employment. Most of the applied methods are based on personal contact, filling in questionnaires, statistical analysis, monitoring and feedback. Finding employment after finishing the trainings, measuring employers’ and job-seekers’ satisfaction are elements of great importance within the implementation of the system. The introduction of the system strengthened the team spirit among members of the stuff working for the Southern Great Plain Regional Labour Centre. It proved that commitment can be the basis of great achievements.

Who proposed the solution, who implemented it and who were the stakeholders?
The basic concept of the Demand-led Vocational Training System is in conformity with the strategic policies and objectives of the management of the Southern Great Plain Regional Labour Centre. For improving the efficiency of work, fighting unemployment and reducing the duration paying benefits revision of former practices and applied processes proved to be necessary. After the problem was identified colleagues working for different organizational units of the labour centre discussed the ways each department could contribute to the improvement of the performance indicators. The first step of finding solution for the problem (normally it is the last one) was the identification of the output. That is, employers used to get in touch with the job-seekers only after the training, which proved to be very risky. Besides, a great deal of uncertainty also made employment doubtful. These were taken into account when working out the principles of the Demand-led Vocational Training System. The aim was to find a solution with which the would-be employer and job-seeker can get to know each other as soon as possible. They found that employers’ level of involvement in the training system was not at all satisfactory, and the role they were given seemed to be unacceptable. With changing the order of the different steps employers became involved in the preparation of trainings and it became possible for them to turn into active participants of the process. The possibility of taking part in the selection process of the participants of trainings and having a say in designing the training programmes were great new opportunities for the employers. They saw huge potential in these since it allowed them to determine and measure the personal characteristics, competencies and abilities they wished to find in their employees. They could compare their requirements with the employees’ abilities. Besides, mutual agreement between the employer and the employee can be made on basis of the potential employee’s prior knowledge about the organization. A further advantage of the system from the point of view of the employers is that training materials can be extended with topics they consider useful. Employers played active role in working out the syllabus, implementing the training, and finally they employed those who finished it. Information exchange is of great significance since it affects training institutions’ economic role. Therefore, it contributes to a training policy satisfying labour-market demands. The system was worked out by the management of the Southern Great Plain Regional Labour Centre and the directly concerned organizational units. The profit-oriented organizations became involved only after the introduction of the system. Therefore, the two former participants of the training process –training institutions and job-seekers – were joined by the employers, and indirectly (with the help of information exchange) also by municipalities and civil organizations.

Describe how and when the initiative was implemented by answering these questions
a. What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
The basic strategic objective of the Demand-led Vocational Training System is strengthening the co-operation among the actors of the labour-market in order to reduce unemployment and increase the social security of those in employment. It aims at using the resources available for vocational training in an efficient, practical way based on the demands of the economy, to facilitate the most efficient operation of the labour organization. The basic objectives of the system: • Getting to know which qualifications are in demand by the employers in the region and providing them with properly qualified workforce. • Facilitating cooperation among the actors concerned in employment (employers, adult education institutions, municipalities, civil organizations, employment organizations). • Determining the orientations of trainings based on the demands of the economy. • Improving the efficiency of labour-market trainings, reducing the risk of dropout • Continuous follow-up of the implementation of the training programme, making improvements on the basis of the feedback • Using the budget available for vocational training in the possible most efficient way. The demand-led vocational training system suited to the needs of the economy has four basic principles. The first one is determining the orientation of trainings taking into account the registered labour force demand, the changes in the structure of employment, labour-market prognoses, employment rate of people finding jobs after the trainings, the recommendations of the regional labour council, the supervising council of the regional training centres, the chambers and the local offices. Being aware of the employers’ demand for workforce is of key importance for the successful operation of the system. At that stage of the work the local offices of the labour organization identified the circle of employers in the region and made contact with them. Employers employing more than 100 people were contacted in person and asked to fill in questionnaires with the purpose of initiating dialogues with them. Medium and small sized enterprises were asked to send back the questionnaires via e-mail or regular post. The purpose of the phase of selecting people to be trained was to find out what do job-seekers’ expect from the trainings and their measuring their willingness to work. During that phase job-seekers not being able to work were identified and the proper type of rehabilitation was offered to them. The potential employers took part in the selection process. The third phase contains the implementation of the training following the above mentioned preparation work by employers, training institutions and the labour organization that made agreements on the conditions of co-operation and the place and date of admission exams. Most of the monitoring also took place in that phase. Placements of those finishing the trainings justified the introduction of the Demand-led Vocational Training System. After the trainings were finished the labour organization conducted a survey measuring both job-seekers’ and employers’ satisfaction, and monitored the placements, which are of key importance for the successful operation of the system.

b. What were the key development and implementation steps and the chronology? No more than 500 words
The introduction of the Demand-led Vocational Training System proved to be necessary because of low placements rates. The schedule of the programme is made up of four main phases: preparation, planning, implementation and feedback. 1. Preparation 01 March, 2007 – 31. March, 2007 The regional labour centre conducted a survey for bringing to light the reasons behind the unfavourable placement indicators. The survey examined the connection among the participants of the training system, the level of their involvement, their tasks, and the components and content of the applied work processes. They found that employers’ involvement in the training process is extremely little and it has a negative effect on the outcome of the training process and on the chances of finding employment after the trainings. Employers did not have the right connection points. Therefore, they tried to find an another connection level for them making an effort not to interfere with the processes that worked well. 2. Planning 01. April, 2007 – 31. August, 2007 In that phase the operation of the new training system was worked out, the participants were identified, and the new connection points among them were determined. The employers to be involved in the process were selected, the most economical way and method of getting in touch with them were defined, and the necessary documents and questionnaires were worked out. They emphasized the importance of giving publicity to the initiative. The management of the labour organization and the staff involved were asked to give feedback on the draft, which was followed by the necessary corrections. A pilot introduction was considered necessary first, and they also decided on the starting date of the complete implementation. 3. Implementation continuous from 01 September, 2008 3.1 Pilot introduction continuous from 01 March, 2008 3.2 Complete implementation continuous from 01 September, 2008 Implementation started with surveying employers’ demands and working out the regional training plan. Within the framework of the survey 3559 employers were provided with information, out of which 1555 were contacted personally. As a result of the survey the training of 2548 people proved to be economically established. The interaction and co-operation among employers, training organizations and the Training Department was an innovative element of the programme making it possible to find balance between the training needs and the content of the trainings. The preparation of the call for training offers and working out the training programmes were followed by the selection process of the training institutions, of people to be trained (with the active participation of the employers) and, finally, with progress monitoring. After the trainings the placement of those who finished the trainings was a key element of the programme. Conducting and processing satisfaction surveys were the final activities of the implementation phase. 4. Feedback continuous from 01. September, 2008. Feedback is the central component of the whole process. The bellow listed activities make up that phase: assessment of employers’ co-operation, analysis of placement indicators and satisfaction surveys, feedback on the results and working out development strategies.

c. What were the main obstacles encountered? How were they overcome? No more than 500 words
The main obstacle the Southern Great Plain regional Labour Centre faced during the introduction of the Demand-led Vocational Training System was employers’ reluctance. Most of the employers have always felt uncomfortable when they were asked to give out information. Many employers neglected long-term results and considered surveys on labour-market prognosis a waste of time. Some of them refused to answer the questions in general or did not want to talk about their development plans, because of unpredictable economic situation. Although employers were participants of key importance in the system, on basis of former experiences their resistance to taking part in it was expected. Therefore, the designers of the system laid special emphasis on winning them for the case and they decided on making personal contact with them. They supposed that a face to face meeting after prior arrangement on its date, providing adequate information would make co-operation easier. Employers were provided with information on the bellow listed topics: • benefits of mutual co-operation • the regulations, conditions of gaining training support • the advantages of taking part in the selection of people to be trained for the employers • the advantages of providing practical background • the advantages of employing workforce trained for the position • the way, method of registering vacancies and training needs The meetings with the employer were short in order not to occupy much of their time. The employers were provided with all the relevant information and they had opportunity to ask questions. On basis of the experiences so far, the possible achievements of the system raised the employers’ interest and they are ready for the co-operation. The biggest problem was that the introduction of the system meant too much overwork for the staff working for the labour organization. It was evident from the start that the conducting the survey, processing the data, analysis of the results and progress monitoring require much administration. The labour organization should either take on more personnel, or appoint subcontractors for the tasks, but both of these solutions seemed to be too costly. Therefore, they reorganized the working processes and worked out a system containing the least overwork for the stuff. The initiative was unprecedented, and everybody taking part in it was inexperienced. A pilot introduction seemed to cause the least disruption to the operation of the labour organization. After discussing all the pros and cons of testing the programme in different places and taking into account their disadvantageous situation, they decided to ask the local offices in the small region of Szeghalom to do it. These local offices had to reorganize their work in order to become able to fulfil their new duties related to the Demand-led Vocational Training System and, at the same time, keeping up their regular operation. After the positive experiences and feedback on the pilot introduction the Southern Great Plain Regional Labour Centre extended the introduction of the Demand-led Vocational Training System to all its organizational units.

d. What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
The Southern Great Plain Regional Labour Centre used its own human resources and infrastructure for the operation of the Demand-led Vocational Training System. The pilot introduction of the system in 2008 justified prior expectations since 120 people were trained for different vocations and found jobs after it. The labour centre spent 65 million HUF on the training of job-seekers, which covered the costs of the training itself and the benefits, together with the supplementary costs, the participants received monthly during it. No other charges incurred during the implementation of the Demand-led Vocational Training System, but, on the other hand, it resulted in significant savings. The placement of job-seekers finishing the trainings resulted in significant savings. After filling the positions at their new workplaces they ceased to be registered unemployed living on benefits, which was very costly for the state. Finding a job contributed to their better standard of life and relieved the damages caused by their failure. The possibility to work helped them to overcome the negative effects of insecurity they lived in before. It is more economical to prevent illnesses caused by psychological burdens than its medical treatment. Finally, the tax paid by those in employment is a further, very relevant, source of income for the state. Most of the job-seekers who were trained did not have the necessary qualification, which prevented them from finding employment. It would have cost much for the state if they had remained unemployed living on benefits permanently. Taking into account the regulations of paying the supports and benefits, the 120 unemployed people would have received the maximum of 45 million HUF support on the course of 9 months. In addition to the benefits, the state must have paid further social allocations. If these 120 unemployed people did not take part in the trainings and finding jobs afterwards, the benefits paid for them would have cost the state more than 53 million HUF in 2008. In addition, regular social allocations/income support should have to be paid by the state as well in 2009. 120 people would have cost 3 million HUF per month. That totals up to 36 million HUF in 2009. For two years the state should have paid 90 million HUF for 120 people. On the average, they were registered job-seekers for 3 months before the trainings. The benefit they received during these 3 months and the costs of the training add up to 85 million HUF. For the duration of two years the operation of the system proves to be profitable. As a result of the programme people in employment seeking job cost much less for the state, and after 15 months they become taxpayers. The well-organized working processes of the Southern Great Plain Regional Labour Centre, the exploitation of their new possibilities and the widening of the range of their external connections all contributed to the great achievements. The co-operation among the organizational units, solutions to arising problems made economical use of available tools and resources possible.

Is the initiative sustainable and transferable?
The Demand-led Vocational Training System is sustainable and adaptable in the long run. The tools and resources necessary for its implementation are available (on different levels) everywhere in the world. The challenges employment organizations have to face are not identical in the different countries, but they are basically the same in all the civilised societies. Every well-developed society intends to ensure economic growth, sustainable economic development, and increase employment rates. Therefore, it is everybody’s interest to introduce efficient methods and good practices in their employment policy. The dissemination of the project is of great significance, since it is not restricted to transferring its experiences and methods and drawing the consequences. The direct achievements of the system ensure the economic interests of wide range of social groups and create social security for job-seekers. It is suitable for finding new types of employment, determining new labour-market demands, and satisfying already existing labour-market demands efficiently. A well-grounded training plan, based on labour-market demands, has been worked out, and the training system was altered in a way to fit the demands of the economy. It facilitates high level co-operation beneficial for all the parties, and makes it possible for new actors to become involved in the system. The employers’ active participation in the selection process, in working out the training plans, in the implementation of the practical training and in the placement of those finishing the trainings threw new light upon the content and orientation of the training. The system prevents passing on the drawbacks related to unemployment and reduces the number of the long-term unemployed. It helps distinguishing between unemployed people really entitled to social allowances and those who are ready to work. The introduced training system achieved significant results in the field of employment policy. Training orientation can be determined much more precisely with taking economic demands into consideration, and it indirectly facilitates increase in employment. Job-seekers’ plans for the future and willingness to take part in trainings and work turned out with the help of the survey on their demands. That method revealed who are those people who take part in the trainings solely with the purpose of making a living for a while and do not intend to find employment after finishing the costly courses. The labour centre is planning to ask the chambers to get more involved in the system from January 2009. Their main objective is to find further possibilities for co-operation within the framework of the Demand-led Vocational Training System and working together with training institutions using state-of-the-art technology. In 2009 the questionnaire for employers will be extended with further questions because of the effects of the recession. Employers will be asked to answer questions on the situation of their employees. It will be done with the purpose of finding out what kind of further trainings, re-trainings should people do in order not to loose their jobs. The primary purpose of these trainings will be to help people keeping their jobs and to facilitate their employment indirectly.

What are the impact of your initiative and the lessons learned?
The Southern Great Plain Regional Labour Centre has initiated and implemented several new, innovative, complex labour market programmes successfully, which serve as models in the whole country. Throwing light on existing problems and readiness to act are the prerequisites of the successful implementation of the initiative. However, goals can only be attained if all the participants are able to identify with them. An unprecedented system of limited financial and human resources was introduced with the commitment and perseverance of the personnel working for the labour centre. The expertise and empathy achieved the expected results. Keeping employers well-informed was the basis of collaboration. The labour centre introduced the training system with due foresight. Before the complete introduction they gained experiences and spotted mistakes with testing the new training system in the form of a pilot application. More than 500 new vacancies were registered as a result of the survey mostly for people with qualifications listed in the National Qualification Register. In the framework of the pilot application 20 courses were held for 300 people. After the trainings based on the demands of the economy were finished 120 people passed the exams and found employment. Initial experiences proved the efficiency of the system. Its operation is expected to be profitable within two years, at the end of 2009. Although the programme was implemented with a relatively small national budget, it gave chance for many job-seekers to find employment, become taxpayers and live a better life. The initial experiences of operating the system are positive. Making joint efforts helped resolving mutual prejudices between employers and employees. Job-seekers were ready to take part in trainings since they knew that it would really help them finding a job. As a result of the pilot application in the Szeghalom small region, people who already gave up hope were able to find employment in their own settlements. Successful co-operation made it possible for the labour centre to determine the orientation of all its trainings on the basis of economic demands. Within the framework of the survey 3559 employers were provided with information and offered the possibility of collaboration with the labour centre in the region in 2008. The introduction of the training system opened up new perspectives in making new connection points with profit-oriented organizations, of getting to know their human resource development plans and of working out well-grounded training plans that satisfy employers’ demands. It can help eliminating the risks of the probation periods and reducing the number of cases of short-term employment. Employers participation in the selection process of people to be trained, in working out the training programmes and the implementation of practical trainings threw new light upon the content and orientation of the training. By the introduction of the Demand-led Vocational Training System, the Southern Great Plain Regional Labour Centre has implemented an exemplary model project in co-operation with partners having a concern in employment and vocational training, which is suitable for national introduction as well.


Institution Name:		Southern Great Plain Regional Labour Centre
Institution Type:		Public Agency
Contact Person:		Ágnes Dr. Nagy
Title:		chief director
Telephone/ Fax:		0036 66 444 211
Institution's / Project's Website:		0036 66 441 221
E-mail:		drnagya@lab.hu
Address:		Árpád sor 2/6.
Postal Code:		5600
City:		Békéscsaba
State/Province:		Békés County
Country:		Hungary

The Problem

Solution and Key Benefits

Actors and Stakeholders

(a) Strategies

(b) Implementation

(c) Overcoming Obstacles

(d) Use of Resources

Sustainability and Transferability

Lessons Learned

Contact Information