Global Developments Global Developments of Human Resource of Human Resource

ServicesServices26-27 June, 200826-27 June, 2008

G. HultinG. Hultin

Caden Corporation S.A.Caden Corporation S.A.

Global Developments of Global Developments of Human Resource Services – Human Resource Services –

international lessonsinternational lessons Legislation and regulation of private Legislation and regulation of private

employment servicesemployment services A historical perspectiveA historical perspective Current trendsCurrent trends

The range of private employment The range of private employment servicesservices

ILO Convention 96 ILO Convention 96 (1949)(1949)

Called for the progressive abolition of fee-Called for the progressive abolition of fee-charging for profit employment agenciescharging for profit employment agencies

Where an fee-charging employment agency Where an fee-charging employment agency exceptionally is allowed, theyexceptionally is allowed, they shall be subject to the supervision;shall be subject to the supervision; shall be required to be in possession of a yearly shall be required to be in possession of a yearly

license;license; shall only charge fees fixed by competent shall only charge fees fixed by competent

authority;authority; shall only place or recruit abroad if permitted shall only place or recruit abroad if permitted

by the authorityby the authority

International policy reform International policy reform processprocess

Ratification rate ILO Conventions, %Fee-charging agencies

0%

5%

10%

15%

20%

25%

1950 1960 1970 1980 1990 2000

C96 ratifications

ILO Convention 96 policy ILO Convention 96 policy remained until 1994-97remained until 1994-97 1980s, ratifications peaked at 1980s, ratifications peaked at

22%22% Growth of private servicesGrowth of private services Policy denouncements in Policy denouncements in

1990s1990s 1994 ILO policy reform 1994 ILO policy reform

process startsprocess starts Recognizes the need for Recognizes the need for

labour market flexibilitylabour market flexibility Recognizes the positive Recognizes the positive

contribution of private contribution of private employment agencies for employment agencies for effective functioning of effective functioning of labour marketslabour markets

Convention 181 (1997)Convention 181 (1997) Legalizes fee-charging employment servicesLegalizes fee-charging employment services Provides the legal framework and regulatory Provides the legal framework and regulatory

conditions for fee-charging employment agencies conditions for fee-charging employment agencies Recognizes the workers rights in terms of inter Recognizes the workers rights in terms of inter

alia alia non-discrimination, protection of personal data, non-discrimination, protection of personal data,

freedom of association, collective bargaining, freedom of association, collective bargaining, minimum wages, working time and other working minimum wages, working time and other working

conditions;conditions; statutory social security benefitsstatutory social security benefits

Confirms principle of no charge to job seekerConfirms principle of no charge to job seeker Drops requirement service fees set by authorityDrops requirement service fees set by authority

Liberalization of private Liberalization of private employment servicesemployment services

Source: ILO

1994-97 governments 1994-97 governments start labour policy start labour policy reform to legalize reform to legalize private employment private employment servicesservices

Triangular employment Triangular employment relations remain subject relations remain subject of policy debateof policy debate

C181 ratifications C181 ratifications increasingincreasing

Process of liberalizing Process of liberalizing private employment private employment services still on-goingservices still on-going

Major issuesMajor issues for national for national level legislationlevel legislation

How to ensure that temporary How to ensure that temporary employees are fairly treated? employees are fairly treated?

How ensure that flexible forms of How ensure that flexible forms of work do not replace permanent work do not replace permanent employment? employment?

How to ensure that employment How to ensure that employment and working conditions of regular and working conditions of regular jobs are not eroded? jobs are not eroded?

Restrictive Liberal

Lifting of sector constraints + Extension maximum length of assignment (2004)

Opening to permanent recruitment (2005)

Legal recognition (1997), lifting of reason restrictions + opening to HR services (03)

Legal recognition (2001)

Lifting of sector constraints (2004), time limitations (2002)

Extension maximum length of assignment (1997), lifting of sectors constraints (2001)

Legal recognition (94), removal of extra costs (06)

Lifting time limits and sector restrictions (98)

Extension maximum length of assignment, opening to HR services (1999)

Extension of grounds for use (2004)

Germany

Spain

Portugal

Belgium

France

Italy

Poland

Greece

Japan

Netherlands

Finland

Denmark

Ireland

UK

USA

Temporary agency workTemporary agency worklegislative and regulatory legislative and regulatory

trendstrends

Source: CIETT

Temporary agency workTemporary agency work% of total work force% of total work force

Source: CIETT

5.0%

4.0%

2.5%

2.1% 2.0% 2.0%

1.4% 1.3% 1.2% 1.2%1.0% 1.0% 0.9% 0.8%

0.6%

0.2% 0.1%

Private employment agencyPrivate employment agency Temporary work 0.1-5% of total Temporary work 0.1-5% of total

workforceworkforce Europe, share of permanent Europe, share of permanent

placement doubled since 2001placement doubled since 2001 Belgium, agencies are involved Belgium, agencies are involved

in 10% of permanent in 10% of permanent recruitmentrecruitment

Netherlands, agencies handle Netherlands, agencies handle 15% of permanent recruitment15% of permanent recruitment

one fourth of the workforce in one fourth of the workforce in Belgium has at some point Belgium has at some point worked for a temporary work worked for a temporary work agencyagency

Among blue collar workers the Among blue collar workers the number is even higher with number is even higher with about 50% having worked for an about 50% having worked for an agencyagency

France, 65% of unemployed France, 65% of unemployed registered with private agency registered with private agency are gainfully employed with a are gainfully employed with a yearyear

Towards better functioning Towards better functioning labour marketslabour markets

The makings of successful private The makings of successful private employment businessemployment business

1.1. Compliance with lawCompliance with law

2.2. Adherence to industry and company Adherence to industry and company code of conductcode of conduct

3.3. Development of superior serviceDevelopment of superior service To client companiesTo client companies To job seekersTo job seekers