Tuesday, April 28, 2015

International project "RealCruitment Rediscovering Productivity"





The project is a global innovation to re-focus human capital and job market, founded on intrinsic motivations and rewards, and methods of their incorporation in traditional industry and modern (social) enterprises.
The aim of the project is to create a contemporary classification for 'soft' criteria, a new career compass, and a reformative benchmark for happy people in productive careers.
The founders of the project are Kyiv National Economic University named after Vadym Hetman and Tiltin BV (LLC), owner of the brand and social enterprise “High Impact Data Index” (Amsterdam, the Netherlands), represented by Managing director Bert Spangenberg.

 1. Project Information
Project Title: "RealCruitment Rediscovering Productivity"
2. Organizations
Kyiv National Economic University named after Vadym Hetman (Kyiv, Ukraine) is the leading educational institution in economic sciences in Ukraine. Its mission is to contribute to development of the society by means of the scientific research, generation and dissemination of new knowledge, and teaching the competitive specialists and creative personalities. More than 36,000 students study in KNEU. Only in the main institution, they are taught by: 8 full and corresponding members of the National Academy of Sciences of Ukraine and sectorial academies, more than 127 professors and doctors of science, 507 candidates of science and associate professors. Activities: training of specialists of various professional skills, scientific researches, pre-university training of prospective students, scientific methodology, publishing, educational, financial/business and manufacturing/commercial activities.
SU “KNEU named after Vadym Henman” collaborates with many Ukrainian and international companies in the next directions:
- Creation of joint textbooks;
- Providing consulting and expert services to management;
- Joint improvement of educational and professional standards of training specialists in economics and management;
- Involvement of university faculty to the process of development company’s personnel;
- Internships and employment of university’s students and graduators.
Among university’s partners are Novokramatorsky Machinebuilding Plant, Global Bilgi, E&Y, ProCredit Bank, PWC, Bosch, Coca-Cola, Nestle, Unilever and many others. In particular, Employment Relations and Students Job Placement Centre “Perspektyva” has 65 active and constant companies-partners.
 Titlin BV (LLC), owner of the brand and social enterprise “High Impact Data Index” (Amsterdam, the Netherlands).

3. Performers
As professionals in human resources management, we have built a highly effective team led by Professor Anatoliy Kolot which is ready to work for our target. It is our competitive advantage. We are team-players with various combinations of skills and knowledge in different types of activities. This provides us multifaceted view on the problem and ways of solving it. All team-members are united by desire of continuous improvement at the professional level and readiness to hard and productive work. We are goal oriented, highly motivated, responsible and creative. Moreover, we are supported by experienced mentors and the significant scientific basis of the university.
The majority of projects our team realized concerns social responsibility and youth's involvement at the labor market. We took part in the second and third International competition on CSR "Development of Programs of corporate policy and volunteering of Ernst and Young and Amway". Most of projects we organize and coordinate are available at Kneu-job.com.ua, kneu.edu.ua. Projects in scientific area relate to corporate policy, management, motivation and other fields of our professional interest.
There are competencies that helped us to reach such results: developed communication and delegation skills, information gathering and analytical skills, ability to think conceptually and strategically, capability to focus on the desired result of one's own or one's unit's work, ability to develop and communicate goals, to provide motivation support, capability to function effectively both as team members and as team leaders, ability to demonstrate support for innovation and for organizational changes.
We are aware of the problems in the Ukrainian labor market. Numerous statistical data and our personal experience attest that they are characterized with incomprehension between employees and employers.
The research based on existing authoritative scientific studies will help us determine the main principles and steps for building an effective industry with intrinsically motivated people.
Our wide connections with employers, employees and students will be useful in spreading the results of the study and its practical implementation in order to increase the quantity of happy people in productive careers. Therefore, our team can do what others cannot.

Project Manager: Anatoliy Kolot
Degree: Doctor of Economics. Academic title: Professor
Place of employment: State University "Kyiv National Economic University named after Vadym Hetman"
Post: Vice-rector on scientific and pedagogical work, Head of Human Resources and Labour Economics Department
Work phone number: +3-044-456-70-00, fax: +3-044-459-62-76, home phone number: +3-044-419-52-19
Team leader Anatoliy Kolot is a Member of the Advisory Board on compliance with labor rights at authorized representative Commissioner for Human Rights in the Verkhovna Rada of Ukraine, a member of the Presidium of the Scientific and Methodological Board of the Ministry of Education and Science of Ukraine on "Economics and entrepreneurship" and the chairman of the subcommittee on personnel management and labor economics. He is awarded by Diploma of the Verkhovna Rada of Ukraine, the honorary sign of the Federation of Trade Unions of Ukraine "For the development of social partnership" in 2010. He is also actively involved in the preparation of laws and regulations on labor economics, social policy, labor market and industrial relations.

Research performers:
1. Bert Spangenberg, Managing director, Tiltin BV (LLC);

2. Volodymyr Machuskyy, Ph.D. in Law, Associate Professor of Theory and History of State and Law Department SU “Kyiv National Economic University named after Vadym Hetman”; is a community mediator in Ukraine of HIDI Social Innovation Research and Exercise; the author of 5 books: “Insurance Law”, “The Legal Basis of Business” and others; completed an internship at the Vienna University of Economics and Business under the guidance of Prof. Dr. Peter Doralt.

3. Valentyna Turchyna, Ph.D. in Economics, Senior Lecturer of Human Resources and Labour Economics Department SU “Kyiv National Economic University named after Vadym Hetman”; is a member of working group of Social project "International employment exchange" handed by Independent Institute of Judicial Examination with support of European Arbitration Chamber; cooperates with Ukrainian and Russian universities, Centre of CSR Development in Ukraine, Ebert Foundation, Ukrainian Association of Management Development and Business Education.

4. Victoria Gumeniuk, the third year student of a specialty Human Resources SU “Kyiv National Economic University named after Vadym Hetman”; is a member of international organization AIESEC; a prizewinner of University Competitions; an active participant in volunteer activities.

5. Ganna Nesyna, the fourth year student of a specialty Human Resources SU “Kyiv National Economic University named after Vadym Hetman”; is a translator, literary editor and a corrector of  book "Strategic Marketing for Nonprofit Organizations" by Philip Kotler, Alan Andreasen; a spokesperson in Students Scientific Conversions; a participant of the fifth Ukrainian personnel meeting.

6. Roman Skrebov, the third year student of a specialty Human Resources SU “Kyiv National Economic University named after Vadym Hetman”; is the author of scientific work in the field of provision of labor market flexibility in Ukraine; a researcher of single-server queuing.

7. Victoria Ludvichenko, the fourth year student of a specialty Commercial Law SU “Kyiv National Economic University named after Vadym Hetman”; is keen on social media.

4. SUMMARY:
The purpose: The purpose of this project is to create the contemporary classification for ‘soft’ criteria, career compass, and reformative benchmark ensuring successive occupations and excellent professional output and to establish the methodological and practical recommendations and tools for their usage.

There is real credibility when a person can see, feel, and touch the wonders of research and implement them in practice. The project is expected to provide this by designing:
A. the contemporary classification for 'soft' criteria
B. a reformative benchmark
C. a new career compass for happy people in productive careers

The sources of collected hard data are state statistics, research results of others known companies and universities, results of social polls etc.

5. RESEARCH SITUATION AND PROBLEMS:

Reasoning the Need and Urgency in Ukraine in RealCruitment proposal

Situation: What are the disadvantages of the current employment situation (employee engagement and satisfaction)?
People’s targets differ from companies’ vision. Many people are engaged in uninteresting for them work or feel unappreciated by companies. This misunderstanding causes growth of economic loss and decreases labor potential. The specialists in recruitment often say that these days, as always, we are short of professional, experienced and well-educated potential candidates. Recruiters, both external and internal are constantly searching the market with the only purpose to identify and attract the best available talent (often starting almost with the candidates' first years at university).
55 per cent of Ukrainian employed staff in 2014 were looking for more interesting jobs. Completely satisfied with their jobs were 13% of knowledge workers. Every third during 2014 year changed his employer. Thoughts on career change come to almost every specialist, but not all of them are implemented. On the other hand, one out of 10 will leave the company only when a business closes.
38 per cent will leave the company in case of a "very lucrative offer" from the new employer.
18 per cent hesitate, weighing all the possible pros and cons of the current work, while considering other jobs.
A major problem for employers is the difficulty in retaining recruited staff and achieving high performance level.

What are the reasons for this?
Almost everything we believed to be true about (workplace) management is based on the theories of Frederick Taylor Scientific Management (propelled into Mass Industry - Politics - and Finance, by Henry Ford and other industrialists worldwide). His studies founded management consultants like Mckinsey, Booz, PWC, etc. Big consultancies’ influence has seriously declined since 2006. Not only because Taylor allegedly falsified his studies, and consultants are realizing their ‘matrixes’ aren’t doing the job they’re supposed to, but times they are a changing as well, and Scientific Management has certainly passed its expiration date. Management ‘represents’ Inequality in the eyes of the worker, and Inequality is driving people out of the economy, and onto the worlds’ city squares to protest (unproductivity in action). This is the deeper problem going on.
Inequality in management leads workers to discomfort and occurs primarily at the highest level of the enterprise (at the level of Directors, HR department, etc.) and leads to a kind of discrimination. It starts at the strategic unit (a set of principles that are used to manage and determine the basic direction of development). The main rule that should be done with the help of this unit is the policy of equal opportunities for all employees in the company. The policy includes creation and implementation of standards that help to ensure equality at all stages of management, as well as the discovery of the each employee’s potential. The next block is informative, which regulates all methods, tools and techniques aimed at constructive personnel management. Take in attention these blocks is essential for normal operating of the company and also avoid any conflicts between employees because trust relationships at work mean the success of the company. There are numerous other problems of inequality in management. Errors can be present not only in the management mechanism, but also in professionalism of workers. There is a known factor named as "human factor", which causes dissimilar attitudes to different employees. Unfortunately, we can often encounter a similar situation, if we do not follow all mentioned rules or allow unprofessionalism in the workplace. We consider that this to be a big problem, so want to add to our research another task: to identify the main reasons for inequality in management, its affection on the employees, and norms of their behavior in such situations.
In 1930, John Maynard Keynes made two predictions about economic growth: living standards in “progressive countries” would be four to eight times higher by 2030 (right) and workers would enjoy a 15-hour workweek (really wrong). In this heady essay in Jacobin, Mike Beggs uses a host of economic theories to explain Keynes’ miscalculation. Theoretically, we could spend our increased wages by choosing to work less, as Keynes predicted, but we don’t. Instead, we use choose to spend our excess cash on commodities — which seems irrational since all of us complain about our lack of free time. So why don’t we make choices that maximize our pleasure? Well, it’s not so easy, especially since our work habits — productivity over play — is the result of social norms. A shift to more free time can happen, Beggs notes, but only if it’s “a collective one.” The good news: this isn’t impossible as it sounds. Take HBR author Leslie Perlow, whose research shows that productivity increases at companies that make planned and uninterrupted time-off a top priority. Everyone wins, right? Luckily, we still have 18 years to make Keynes an oracle.
According to a survey, carried by personnel portal HeadHunter Ukraine in October 2014, 49 per cent of employees make decisions of changing their work on their initial stage of working there - during the probationary period. Moreover, the main factors are the size of the company and number of employees: the larger the company is, the more difficult it is to adapt for a new employee. To find the reason of that the inquiry concerning the attitude of workers to the "probationary period" was conducted. The results showed that 26 per cent consider it as interesting and positive stage in their professional activities, 35 per cent express that this is only part of the normal working process and 39 per cent perceive this stage as the stressful part of work activity. Worker usually takes the decision to change the place of work by his own initiative, less often - on the recommendation of the employer. This is due to non-compliance with working conditions (improper wages, too much stress or excessive amounts of duties entrusted to employee) and not matching to the working team (conflicts, excessive fault-finding, mismanagement in company).
In line with another survey carried out by personnel portal HeadHunter Ukraine, one of five office employees is ready to change his region of living to obtain a good job. For example for the top-managers such stimulus is higher wage while for IT-specialists it is the accomplishment of new exciting tasks. The main reasons for changing work are insufficient wages and working conditions. Today a common phenomenon is work abroad: this tendency has become actual for people aged under 25 years who reported additional stimulus for that are the opportunity to travel and get new experiences (32%), programmers and marketers are ready to leave the country to gain new experiences (26%), while top-managers and professionals have no motivation, so prefer working in Ukraine.
The next reasons of changing place of work are:
- Lack of awareness and the complexity of acceptance the company’s goals (for example, less than 20% of respondents are engaged in disliked occupation)
- Lack of support from the direction
- Unfair assessment of the employee's performance
- Lack of the desired level of training and professional development
- Lack of opportunities for unleashing the potential at work
- Uncertainty in career growth and higher wages
- The absence of recognition the manager as a leader
- Failure to fulfill by employers their duties to the staff
- The willingness of companies to recruit a candidate from the capital with lack of experience and to teach him and to provide a higher position.
- Possibility to find a good job in the region with not so high salary, what is offset by the difference in prices
Almost half (39.5%) of managers plan to change jobs soon because of the reasons mentioned above. Every third person thinks about leaving the company; at least 26.2% of workers do not plan to change their career. In order to avoid the outflow of personnel from the companies, employers should use different instruments to encourage, motivate and retain personnel (the most common way is to create a system of compensation and benefits). It is very important for workers to gain compensation of different types: basic salary, bonuses and allowances (provided by law and approved by the company), premiums and social benefits, opportunities for training and professional development, career opportunities, and satisfactory working conditions, organization of corporate events and creation of favorable atmosphere in the team.

Problem: Probably dissatisfied/inappropriate people are not sufficiently effective and company operates less successfully? Is the structure for staff cost optimum?
Extremely low use of labor potential in Ukraine is demonstrated by the fact that this country lags behind developed countries in about 4-5 times on labor productivity in industry, and in 7-8 times in agriculture. If Ukraine’s one agricultural worker can feed 15 people, one worker in the agricultural sector of developed countries creates the average number of products that can meet the needs of at least 120 people. Among the losses of labor potential is reduction of work activity as well as the reduction of life expectancy and reduction of the number of human resources.
It is not just a UA problem, but a downward productivity spiral across the globe: UA is in the unique position, where the pressure to reform is most felt by both policy makers and society.
The existence of such factors as low quality of life, insufficient funding of human development and loss of positions in the development of human potential leads to negative social and economic consequences. Among them should be highlighted the depreciation of human capital, which affects both general (knowledge, skills and mental habits that people get in the system of formal education) and specific human capital (knowledge and skills that employees acquire in the course of their professional activities in the workplace). The mass devaluation of the educational potential has become one of the main drivers of a sharp decline in productivity.
Provided further reduction of human development in Ukraine should be expected the following major hazards and risks related to the development of the problem situation.
1. The sharp reduction in the competitiveness of Ukrainian human capital.
2. Expanding the range of marginalized populations, the emergence of the so-called category "neomarginals", namely people with sufficiently high educational and professional level, which have not found an acceptable way to implement it. As a result a significant part of the employed population will appear in poverty, often combining different forms of secondary, tertiary employment and employs more than legally prescribed working hours in order to achieve a socially acceptable level of income. The effort exerted by the government in this direction, in particular to strengthen basic social protection of the population is deficient in comparison with the effect of factors that enhance the poverty of population.
3. Depreciation of investment in education. Distorted motivation for higher education does not prevent deformation of the demand in the labor market; there is a further devaluation of diplomas of higher education.

Implication: Thus, RaelCruitment project aims to understand the ulterior motives and needs of the people and alter them into explicit and real. People wish to be interested in their work and, given the right conditions, will enjoy it. Motivated by the wish to achieve, and to have their achievements recognized, most people will work to the best of their capabilities, creativity, and ingenuity. People who will found their calling, their niche, will bring the double benefit: more satisfaction with work plus more efficient work owing to emotional invested talents and people’s powers comparing to unsuitable employees.
Next stage is to respond to motives and needs through systematized tools improving human motivation and performance. Introduction of new job market classification will help to reckon in people’s motives, needs, talents and drives in getting people, especially young ones, in satisfying jobs. Presentation of Reformative Benchmark is important for UA educational and employment reforms and specifically Kyiv National Economic University as the leading institution of higher economic education.
This emerging research which provides new insights into improving human motivation and performance, suggests that Ukraine’s employment relations must make key adjustments to make people more happy and productive in their careers, as well as more commitment to their work and employers.
The most appropriate work for candidates is position in a stable and growing company with a regular payment, where their experience is useful and professional and personal growth are obvious. Regular payment concerns Reliability and Trust, as well as being able to make plans for the future. Professional activities of employee depend on many factors. One of them is job satisfaction. Intrinsic motivations affect the quality of the work, and as a consequence, the opportunities for career growth.
A person is experiencing job satisfaction in general only if two conditions are met: 1. content and nature of work corresponds to the internal motivations; 2. rewards suit financial and social needs of employee. In turn this promotes professional development and self-realization.
An average Ukrainian worker assesses his level of job satisfaction on a hard six of ten. But wages are satisfied by only 5 points. Each 10-th employee is not satisfied with his salary, and each fifth is not substantially satisfied.
Engaged workers know what is expected of them; use their innate talents every day, are connected with the mission and purpose of their organization; know that their opinions are taken into account by the direction of their company.
Instead of automatically rewarding top performers with a promotion, companies have to determine what talents their subordinates have to. For example, if people have talent to manage, they should be rewarded with a promotion to management. Those who do not have a talent to manage, move into alternative career pathways where their talents are held in equal regard with those on the managerial track.
Engaged teams of top performers can provide both happy professionals and productive careers developing traditional industries and creating innovations in social enterprises.
Investments in innovation and R&D in the field of recruitment and employment conditions are caused by need for job market reform and are important to Ukraine’s future social and economic growth stability. World is captivated with the latest technology, but the Ukrainian labour market remains underdeveloped in comparison with other countries, so we need to invest in innovation in the field of recruitment and motivation to target employers and candidates for new trends and opportunities.
6. Expected results of the project (Need-Payoff:):

A. Modern Classification System

Static model/diagram of all relevant ingredients for happy people in productive careers; the ingredients

1.    - to reveal intrinsic motivations and rewards, soft skills, biological drive;
2.    - to ground classification for ‘soft’ criteria
3.    - to justify the characteristic features of ambitions, motivations and rewards and their changes with age, to reveal their components in general and dominants in particular in order to allow candidates in different life phases to choose roles that matches their life and professional phase;
4.    - to define focused tasks appropriate to different combinations of intrinsic motivations;
5.    - to find out the skills required for effective execution of particular tasks;
6.    - to develop a model of different levels of competencies needed for revelation the specific skills;


B. Reformative Benchmark (SOLL)

Exploring the social and economic nature of happy people in productive careers, how people and companies get there; an effective recipe and why it works

1.    – to expand innovative employment paradigm for responsibilities towards employees, customers and markets, which can be encountered differ depending on type of company;
2.    - to develop a balance of peoples’ talents and drives that are requisite for companies with different mission statements, corporate social responsibility policies and ethics;
3.    - to identify patterns and problems of inefficient use of people's talents and drives;
4.    –to advance theoretical and methodological foundation of the development and implementation of reformative benchmark for managing professional careers based on internal motives;
5.    - to examine the social and economic substance of the intrinsic rewards and propose a new incentive model linked with inherent motivations;
6.    - to justify the theoretical and applied principles empowering people with certain functional responsibilities according to their roles and job titles;
7.    - to carry out a theoretical and methodological basis of economic, organizational and social mechanisms and tools that can be applied for building industry with intrinsically motivated people;
8.    - to make a study on innovative mechanisms of assessment underutilized ‘people powers’ that could create new markets, products and services, that do not exist in traditional industry, but fit perfectly in social enterprise portfolios;
9.    - to discover career paths including innovative mechanisms and instruments of identifying and incorporation the individual strengths for revealing the potential paths to professional success;
10.   - to make a prediction of optimal structure of employees in traditional industry and social enterprises;
11.   - to develop conceptual approaches for improvement of mechanisms and tools of application underutilized ‘people powers’;

C. Career Compass/Paths for ‘Inside-Out Productivity’

Applying RC to get individuals and organizations, from IST to SOLL (Development of KNEU/Perspektiva HRM Advisory Services)

1.    - to develop an “infographic” summarizing all research results and interrelationships between the structural elements capable to be a tool in the process of recruitment and career choices;
2.    – to incorporate research results in traditional companies and modern social enterprises;
3.    - to develop proposals to improve the educational process aimed at the forming competencies and consolidate skills;
4.    - to propose amendments to the hierarchy of educational levels certifying professional roles and job titles;
  1. – to use research in action for feedback and optimization of RC
Scientific Researches:
1.    “Development of relationships in the area of labor and social and labor infrastructure” (KNEU, 2006-2010)
2.    “Innovative mechanisms of labor management in conditions of knowledge economy” (KNEU, 2009-20010)

Authors’ publications of researches over the past three years
1.    Kolot A. M., Tsymbalyuk S. O. Personal motivation: textbook, 2011
(Approved by the Ministry of Education and Science, Youth and Sports of Ukraine)
2.    Kolot A. M., Lukyanenko D. G., Poruchnyk A. M., Stolyarchuk Y. V. Resources and models of global economic development: monograph, 2011
3.    Kolot A. M. Asymmetries of development social and labor realm
Actual Economic Problems, 2012
4.    Kolot A. M., Grishnova O. A. Social Responsibility: theory and practice of development: monograph, 2012
5.    Turchyna V. M. Project of Research the Main Principles for Perfect Study and Work
Collection of Materials of International Scientific and Methodological Conference of Scientists and Teachers of University “Scientific Component of Educational Process and Innovative Technologies of its Development”, Volume 1, April 2011
6.    Turchyna V. M. The Study of Influence Qualitative and Quantitative Characteristics of Work Process and Conditions
Innovative Development of Russian Economy: institutional environment, Volume 4, April 2011
7.    Turchyna V. M. Formation of Professional Competence in the learning process as a precondition for future high-performance work
Collection of Materials of International Scientific and Practical Conference “Work in the 21st century”, Volume 2, April 2011
8.    Turchyna V. M. Maintenance of High Social Performance of Labor as the Direction of Development of Ukraine on the Path to the European Welfare State
Special Collection of Papers “A Market Economy: Ukraine on the Path to the European Welfare State”, May 2011
9.     Turchyna V. M. Labor Performance in Different Models of Regional Development
“Taurian Economic Journal”, Number 6, December 2011
10.   Turchyna V. M. Evaluation of Company Management Aimed at Achieving High Performance Work
“Labor Relations: Theory and Practice”, Number 1, 2011
11.   Turchyna V. M. The study of Performance Management Work in the Company (in Case Ltd. “Target Construction”)
“A Market Economy”, Issue 26, Part 1, 2011
12.   Turchyna V. M. Informative and Programmed Providing of Labor Performance Management
Professional Collection of Scientific Papers “Scientific Announcer of PUCCU”, 2011
13.   Turchyna V. M. Pre-conditions of Providing the High-quality Labor in a Regional Aspect: Evaluation and Prospects of Increase
Special Issue “Regional Development of Ukraine: Problems and Prospects”, Part 2, 2011
14.   Turchyna V. M. Social and Economic Priorities of Development Labor Potential of Organization
Market Economy Formation, Volume 2, 2012
15.   Turchyna V. M. Efficiency of Innovative Labor: the Principles of Evaluation
Innovative Development of Russian Economy: Scenarios and Strategies, Volume 2, April 2012
16.   Turchyna V. M. Social Effectiveness as Indicator of Innovative Economy Development
Innovative dominants of social sphere, May 2012
17.  Turchyna V. M., Chub O. V. Awareness of the realities of the labor market through training "Organization of effective job search»
II National Scientific and Practical Internet Conference “Training Technologies in Education and Business: Experience and Prospects of Application", February 2014







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