© Capacent 0 Capacent IKU - Denmark How we help people reentering the job market September ’09Erik Bernskov

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2 Indhold Briefly about Capacent IKU The Danish job market Public and private employment services Who pays for what? Benefits of the Danish system Questions

© Capacent 3 About Capacent IKU Established in 1987 as an outplacement company Subcontractor to the public employment services since 2002 One of the biggest Danish players within private employment services More than 25 offices spread all over Denmark Turnover appr. 70 Mio. DKK Became a part of Capacent on March 1st 2008 Outplacement Recruitment

© Capacent 4 The Danish job market In one year unemployment has grown from ca to more than Mostly the unskilled workers are affected by the effects of the economic crisis Different expectations to the future unemployment

© Capacent 5 Unemployment in Denmark juli ’09

© Capacent 6 Job swaps in Denmark Every year ca persons change job

© Capacent 7 Most job openings are never announced….. Out of job openings every year in Denmark: ca. 17% are annonced (lower at present) ca. 11% are filled out by temp agencies (lower at present) ca. 72 % are filled out via networking and by informal contacts ca. 20 % of all newly employed stop within the first year of employment!

© Capacent 8 Activities divided between jobcenter and private enterprises After registration at a jobcenter: One meeting at the jobcenter Within the first 4 weeks outsourced to a private company Weekly meetings in ”quick start” programme for 13 weeks If the candidate does not find a job he/she is outsourced to another (or same) private company for 52 weeks = so called ”contact period” (kontaktforløb) The private company has the full responsibility for the candidate. Unemployment payment handled by the ”a-kasse” After 52 weeks the candidate is outsourced to another private company

© Capacent 9 How much is outsourced? With unemployment benefits: All unemployed people with a university degree or education of similar length – after 4 months of unemployment. Different groups which have need for specific expert help Young persons with little or no education – years Persons above 55 years Special groups with little or outdated education years Each jobcenter has it’s own policy Without unemployment benefits: Typically those furthest away from the job market.

© Capacent 10 How do we help people reenter the job market? The 52 weeks contact period Meetings with candidates every 6 weeks Early activation Jobfinding courses (our own) Subordinated jobs in private companies Subordinated jobs in public organisations 4 weeks practice in a private company Courses for improving certain skills Our own jobfinding courses 6 weeks with focus on opening job perspectives – geographically and tradewise Specific help in finding ordinary or subordinated jobs

© Capacent 11 Contents of the contact meetings Update on the job search activities Plan for activation Reviewing marketing material Plan for the activities until next meeting Making an activation job plan

© Capacent 12 Contents of the jobfinding courses Your carreer platform – competences and where they can be used Broadening job goals CV (resume) Applications Personal network Job meeting preparation Collecting information Specific help from a ”enterprise consultant” Marketing plan and job search strategy Maintaining motivation

© Capacent 13 The motivation…

© Capacent 14 Who pays for what? All private companies has given a price which includes everything All courses – internal or external All expenses for the 52 weeks Of the price offered 25% is paid as a fixed price/week 75% is paid as a bonus after the candidate has been in job for 13 weeks out of 26. Exception: The state pays for up to 6 weeks courses for candidates without much education

© Capacent 15 Benefits of the Danish system Private companies are paid for getting candidates into jobs and are not spending money on educating people. The private companies provides a different experience and a different approach. Outsourcing is cheaper than when the jobcenter handles the candidates. The private companies are able to scale up and down according to changes in the market or in the politics. Integrated IT system used by all players makes things much easier

© Capacent 16 Disadvantages of the Danish system Each jobcenter can decide how much it wants to outsource (except for candidates with long educations) The payment terms provides difficult finance conditions for the private companies. High focus on price instead of quality. There is no minimum garantee to the private companies, who take all the risks. The private companies have very little motivation for paying education/courses.

© Capacent 17 Questions?

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