1. Germany’s Regional Unemployment Solutions Seminar: “Effectice Regional Unemployment Solutions” in Jekabpils / Valmiera 24 th / 25 th March 2014 Joachim Ossmann, Chairman of the board, Employment Agency Schwandorf

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3. Seite 3 Establishment of companies supported by the Employment Agency ●Laying the foundations ●Tasks during the decision process concerning the location ●Assistance during the establishment process Agenda

4. Seite 4 Parties involved in location decision and establishment processes Employer ●Provides specifications for the location evaluation ●Decides on location/establishment of new companies Consultancy firm ●Coordinates the process on the part of the investor ●Supports the investor in location evaluation ●Represents the investor in the case of anonymous investors Business development agency ●Local: Coordinates the process on the part of the location ●Regional: Decides on subsidies Employment Agency ●Gives assistance in personnel recruitment process (analysis of customer profiles; training, if necessary) ●Decides on subsidies City/administrative district ●Makes specific offers concerning properties, further assistance, if necessary Parties additionally involved depending on the case: real estate brokers, lawyers, educational institutions,... InvestorLocation

5. Seite 5 Networking of parties involved in location decisions/establishment of new companies as an essential requirement Observations ●In the case of location requests, it is essential that all parties involved are integrated at an early stage and that local interaction between them is smooth ●Furthermore, the local cooperation level is observable by the investor and influences his location decision Consequence Strong networking of the Employment Agency with the parties involved in location decisions is required ●Business development agency of the city/administrative district ●Business development agency of the state ●Cities/administrative districts

6. Seite 6 Required formats for the preparation of the establishment of new companies Objective Information on services of the Employment Agency Format Presentations Flyer Addressees Essential contents ●Investors ●Local/regional business development agency ●Further parties involved in establishment processes ●Labour market/capability of applicants ●Range of services of the Employment Agency ●Assistance for employers in personnel recruitment ●Range of services of the Employment Agency ●Assistance for employers in personnel recruitment

7. Seite 7 Establishment of companies supported by the Employment Agency ●Laying the foundations ●Tasks during the decision process concerning the location ●Assistance during the establishment process Agenda

8. Seite 8 Location decisions – Typical “hard” criteria for the location evaluation by investors General location (city, administrative district)Definite location (property) ●Future employees o Availability of required qualifications o Educational institutions/universities in the surrounding area o Income level ●Local branch situation of the investor ●International transport connection (flight connections) ●Standard of living/quality of life at the location o Educational and cultural offer (theatres, child care facilities,...) o Cost of living (rents,...) o Environmental quality... ●Availability of property (city/administrative district/other owners) ●Labour cost subsidies ●Qualification costs, training costs ●Further assistance** * Either directly or by providing transparency ** E.g. provisioning of rooms for temporary use or similar ●Land area/building space ●Construction density ●Investment costs, current expenses ●Location o Central/peripheral o Connection to public transport ●Terms/restrictions of use ●... Financial support Weighted differently by various investors Opportunity to take influence for the Employment Agency*

9. Seite 9 Location decisions – Typical “soft” criteria for the selection of location by investors Professionalism Willingness to cooperate Entrepreneurship ●Prompt and high-quality responding to requests ●Communication at eye level (Management of the Employment Agency!) ●Reliability of undertakings, dates, etc. ●Solution-focused approach: joint search for solutions when problems occur, flexibility ●Smooth collaboration between business development agency, city, administrative district, Agency and further parties involved on-site ●Treatment of establishment of new companies with high priority, communicating this attitude ●Active addressing of important issues – no purely reactive behaviour All points of high importance in the cooperation between the Employment Agency and business development agency/investor as well as for the entire process of establishing new companies! Subjects What is meant ?

10. Seite 10 Dealing with initial requests: Typical subjects for the Employment Agency and sources of information (1/2) Subjects Generally available sources Aspects Working hours ●Standard wages ●Real wages ●Standard working hours ●Usual working hours ●Overtime ●Working hours schemes ●Shift work ●Work at night, on weekends, Sundays and public holidays ●Unions; collective agreements, wage databases ●Employers’ associations ●State Statistical Offices ●Unions; collective agreements ●Employers’ associations ●State Statistical Offices ●Unions; wage scale regulations ●(Know-how of the Agencies) ●State Statistical Offices Important: Initial requests often require a very rapid reaction Wage level

11. Seite 11 Dealing with initial requests: Typical subjects for the Employment Agency and sources of information (2/2) Fixed-term contracts* Business figures of the specific location Co-determination at plant level Subjects Generally available sources Aspects ●Regional importance ●Number/turnover of companies ●Gross Domestic Product per resident ●Dynamics ●... ●Role/presence of unions* ●Unions ●State Statistical Offices ●(Know-how of the Agencies) ●Unions Important: Initial requests often require a very rapid reaction *Especially of interest for foreign investors

12. Seite 12 Specific assistance in establishment processes given by the Employment Agency “Standard portfolio” of the Employment Agency Further options of assistance Assistance ●Expert function in the labour market ●Recruiting/pre-selection of applicants, occupations, qualification; setting up a pool of applicants ●Precise preparation of applicants, it is checked whether training costs can be borne* ●Assistance during job familiarisation (traineeships) ●It is checked whether labour cost subsidies can be granted* ●Provision of bureaus in the Employment Agency for the conduction of information events, job interviews in initial phase ●Promotion of the employer via notice board, hand-outs, etc. Specific offer to be designed in accordance with the investor’s requirements * based on the individual case

13. Seite 13 Agenda Establishment of companies supported by the Employment Agency ●Laying the foundations ●Tasks during the decision process concerning the location ●Assistance during the establishment process

14. Seite 14 Essential activities after location decision – Start of operative assistance of the establishment process Communication Start of operational work Follow-up, keeping track of success Location decision ●Information of employees of the Employment Agency about establishment and planned proceedings ●Information of surrounding Agencies ●Determination of contact persons for further collaboration between Employment Agency and investor ●Generally: press briefing investor on location decision ●Fixed process how to proceed, formats ●Start of operational work with investor ●Further operative assistance of the establishment ●Status follow-up of success of activities (number of placements,...) ●Direct communication between investor and Management when problems occur