10 Point Plan

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Sigmar Recruitment Consultants Ltd. Is one of Ireland's best known and most successful Recruitment Companies. Sigmar recruit for all areas and have offices in Dublin, Cork, Galway, Cavan and Warsaw. In 2009, Sigmar was among the Top 10 companies to work for in Ireland and ranked 20th in the European Top Companies to work for, being the highest ranking recruitment company in Europe.

Please Note Cost benefit analysis for each recommendation has been carried out. Recognising the difficult economic context, some initiatives recommend redeployment of a small amount of resources with minimum cost.  Our report represents individual recommendations from individual and joint contributors, although all recommendations in this report are not necessarily supported by all contributors.

 

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1. Job Creation Tsar

Objective
To appoint a Job Creation Ambassador (Non Executive Evangelist), whose objective it is to centrally coordinate all employment initiatives amongst all the relevant stakeholders. The stakeholders include Government Departments, State Agencies, Business Groups, Academic Groups, Employers and Jobseekers. This remit would incorporate linking any employment strategies within the private sector to state funded training and education which in turn would be linked to policies in Government and State agencies. Responsibility for launching a "shared commitment" initiative through a sponsored national marketing campaign would also be a critical aspect of the role.

Outline
A central appointment of an influential Ambassador who is experienced in business growth, job creation and inward investment, is familiar of working within HR/recruitment spheres and has a knowledge of how the public sector functions. A mandate will be given to the Ambassador to create jobs and remove unnecessary restrictions for jobseekers which can be achieved through directly linking policy makers in Enterprise Ireland, FÁS, IDA, Forfás and other State agencies with employers in the private sector. To create a One Stop Shop for all initiatives and incentives for employers, therefore optimising job creation. The Ambassador will be responsible for identifying unnecessary restrictions and work with the relevant stakeholders to overcome them, facilitating practical initiatives being implemented. The role includes responsibility for centrally collating all approved initiatives and incentives for job creation and to undertake a national marketing campaign to highlight the benefits to employers.

This appointee would additionally recommend Employment Ambassadors within all industry institutions, federations and business groups to promote the same message amongst members. Included in the remit would be the responsibility to link Higher Education 7 learning institutions in with "Ambassador Group" to explore what incentives/initiatives are working effectively amongst employers, thus creating a 360 degree communication sphere. As part of the "Shared Commitment" campaign, all employers would be encouraged to be accountable for job creation and to appoint one job seeker under the proposed incentives/initiative (where possible).  An "Employ Ireland" website will be created to centrally compile all initiatives and incentives, with cost calculators for employers, benefit listings and other relevant data.

This initiative is more important now than ever before and ties in with FÁS being relocated coupled with valuable recommendations being proposed. It could also be described as timely in terms of the wider economy showing early signs of recovery.

Benefits to Employer
Direct access to all approved incentives and job creation initiatives which have never before been available in one place. A channel to communicate job creation ideas and give constructive feedback on others. Additional resources to hand coupled with financial incentive/ benefits.

In 2009 companies cut expenditure and largely adopted a “wait and see” approach. Over the first quarter of 2010 there appeared to be clear signs of recovery in many sectors, with a subsequent appetite now emerging whereby businesses wish to grow once again and vie for market position in advance of any significant uplift.

Benefits to Job Seeker
Job creation. Direct training intervention, specifically targeted towards current market demand. Access to initiatives/incentive information to support job applications.

Benefits to Government

Revenue generation: (Income tax, Employers PRSI, reduction in live register cost). Joined-up thinking amongst State Agencies, Government Departments and the relevant Private Sector bodies. Positive marketing.

2. National Jobseeker Database

Objective
To set up a National Database of jobseekers who are on the live register.  Candidates who are available for work will be asked to register on the Central Database.

This database will be available free to all registered employers.

Outline
To list all jobseekers who are on the live register on a central database, listing skills, work experience, achievements and qualifications. Give free access to all employers, allowing them to actively target potential candidates.

Currently employers have to advertise a vacancy and wait for a reactive response with no controls and screening. A National JS Database would allow employers to proactively source suitable jobseekers while eliminating time spent screening a high volume of responses.  This would help redeploy resources from reactively responding to applications, to proactively searching the database and contacting relevant candidates. The database would allow employers to take advantage of the Employers’ PRSI Exemption Scheme announced in Budget 2010.  Also has the potential to link to FÁS website. Database to be administered through FÁS with 1000 employers set up as users.

Benefits to Employer
Offers direct access to suitable jobseekers, eliminating time and resources spent on responding to applications. Also increases control in availing of the Employers’ PRSI Exemption Scheme. This eliminates recruitment agency fees and advertising costs.  Rewards proactive companies and gives employers more control of the database.

Suitable for all companies across the ROI from SME’s to MNC’s, across all industry sectors.

Benefits to Job Seeker
Exposure to a new channel of job opportunities. Allows them direct access to employers with no third party involvement. 

Benefits to Government
Reduced numbers on live register. Revenue generation: (corporation tax, Income tax, PRSI). Greater use of financial incentive.

Attractive to companies investing in Ireland.

3. Enterprise Placement Scheme

Objective
Companies to exploit opportunities in new markets through the use of resources from the live register. To bring new ideas to life in businesses through a nine month placement programme on a shared cost scheme. Short Competency Intervention courses for jobseekers of two – four weeks duration to be developed and executed through FÁS (four stages) allowing a “plug and play” transition.

Outline
To assist employers in developing new markets or sectors in which a clear opportunity has been identified but wherein the initial staff costs are prohibitive to further exploring the opportunity. Once a company has identified new markets, resource requirements and skills gaps are to be identified. Once the job seeker has successfully completed the nine month placement and the business activity merits it, they can then be placed on an additional nine month placement. This second placement may be repeated to seek new opportunities or the job seeker may move to the next stage. Through undertaking the next Competency Conversion course, the job seeker will be following the activity the previous placement generated. Employees are therefore partly responsible for the sustainability of their employment. Alternatively employers can engage resources from any stage of the competency framework to suit their business needs. The placements are funded through a Shared Cost scheme, allowing the employer subsidise JS’s allowance.

Core competency conversion courses:

Stage1.
Business Analysis: Research, PM and business process competencies focused on feasibility studies. JS demographic: researchers, technicians, engineers, Architects.

Stage2
Business Delivery: Operational competencies focused on operational and supply chain delivery. JS demographic: Operations, supply chain and procurement professionals from industry or construction.

Stage 3
Business Development: Sales and service competencies focused on increasing sales and delivering improved service. JS demographic: Retail, customer service.

Stage 4
Business Support: Web administration and order processing competencies focused on supporting growth in demand. JS demographic: Admin and secretarial.

Jobseekers can avail of the above on an individual modular basis or can create the opportunity to transition from one set of competencies to another, driven by business requirements.

Shared Cost Scheme (shared risk sliding scale):
- First 9 months: Full allocation of JS Allowance subsidised by max €100 p/w salary (under Employers PRSI Exemption scheme)

- Second 9 months: 50% reduction in JS allowance subsidised by max €300 p/w salary
(under Employers PRSI Exemption scheme)

- Third 9 months: 75% reduction in JS allowance subsidised by max €400 p/w salary
(under Employers PRSI Exemption scheme)

- Fourth 9 months: No JS allowance entitlement. Salary and Employers PRSI paid in full.

Benefits to Employer
Reduced labour cost specifically geared towards business growth. Skilled resources with defined competencies geared towards business requirements. Flexible modular appointments on a nine month commitment. 

Benefits to Employee
Geared competency framework training transferable to most industries coupled with job placement. Retains job seeker allowance with subsidised pay. Essentially creates the opportunity within the business allowing sustainable placements.

Benefits to the Government

 Shared cost and risk with employer. Self sustainable work placements with no additional stimulus. Uplift in corporation tax with increases sales. PAYE increases and reduces Live Register.

4. Open Data Scheme

Open Data is a philosophy and practice requiring that certain data is freely available to everyone, without restrictions from patents or other mechanisms of control.  It allows new and existing companies to exploit the data commercially.

Objective
To make public data accessible to the public. To promote innovation through the use and re-use of Government data-sets. To set up an on line system allowing free access to all Government data, to be re- used without restriction. Present data in a consistent format allowing standard application and analysis. Data can be used in business intelligence gathering, enterprise research and academic research. This will unlock innovation and increase competiveness.

Outline
To establish a public service mandate to develop an index of available Government data. Make up- to- date, non personal data accessible to all.  The core elements of a modular, sustainable system are; Open Standards, Open Data and Open Access. Government data is typically produced in PDF formats, making it difficult to access datasets under any given application. Present data in API format to allow seamless access and user friendly formatting.

Begin by establishing a steering group of academic, public and private sector advisors to agree specific datasets that will be made available straight away. Open data will be a scaled service with certain data that could be made available upon request.

Open Data movement has recently been introduced in the US (Jan 2009) and in the UK (Jan 2010) allowing the web world exploit the data commercially.

Benefits to Employer
 -  Unlock Innovation: Create ecosystem with unlimited opportunity allowing expediential growth in
“Digital Ireland”
-  Web companies will spring from reusing the data commercially.
-  Enhance current service offering for many employers across multiple sectors.
-  Increased competition: Create level platform for all companies pitching for public tenders and for all
deregulation or increased regulation in certain sectors.

Benefits to Job Seeker
Tremendous web talent in Ireland currently on live register. Will allow self employment and business start up at a low cost.

Benefits to Government
Increased trust with public through establishment of system of transparency and accountability.

Increase in social enterprise and public collaboration. Building communities and working with and through them (both inside Government and outside). Reducing numbers on live register and generating return for exchequer.

5. SME Graduate Programme

Objective
The creation of a Sustainable Future Programme for SME’s using the skills, knowledge and experience of recently qualified unemployed graduates to work with the Irish SME base to enhance innovation and sustainability, to create employment and further implement the recommendations of the Innovation Taskforce.

Outline
Develop a one year graduate placement programme where unemployed graduates will be employed by SME’s (through the Shared Cost framework in Initiative 3) to focus on a range of areas where SME’s do not traditionally focus.

Develop a template for use by these graduates to allow them to quickly and effectively assess the business they are placed in, specifically around the areas of strategy, growth, innovation, development of new products, breaking into new markets and developing the tactics and an implementation plan to assist the SME’s in rolling out recommendations.

If required develop a short “conversion” course for graduates to ensure they understand the tool and the core issues for the SME sector.

Ensure that outputs include a smart business plan which is relevant and pertinent to the SME’s and which is achievable and implementable by the management team

The one year programme can be broken down as follows:
- Month 1 – Understand the business.
- Month 2-3 – Assess key business challenges and requirements for sustainability and growth
- Month 4-5 – Outline plan and tactics to achieve sustainability and growth
- Month 6-12 – Commence implementation of agreed tactics

Graduate groups meet at the end of each placement, to discuss their findings and to further innovate.

Benefits to Employer
- Ensure a focus on important over the urgent
- Allow a transfer of knowledge and skills which might otherwise not be available
- A focus on areas where traditionally SME’s have not had the time to focus
- An input of fresh objective ideas from highly trained graduates
- An agreed business and implementation plan designed to ensure sustainability and focus on innovation into the future.

Benefits to Job Seeker
- Productive and meaningful employment where skills can be utilized
- Practical experience in the entrepreneurial culture of SME’s
- Gaining knowledge and experience of working within SME’s in various sectors
- The ability to create new opportunities for themselves and the SME’s

Benefits to Government - Increased employment at a minimal cost

- Ensuring that the “brain drain” of recent graduates will not continue - Bringing practical innovative and entrepreneurial experience to graduates

- Provide support to our SME sector, innovators and entrepreneurs through knowledge transfer from graduates to business - Strengthen and implement a practical link between education and innovation

6. Self-Employment Initiative

Objective
To establish an online forum to facilitate jobseekers to prepare collaborative tender responses to public and private tenders. To set up a partnership framework within a limited company, which jobseekers can use based on having a Sole Trader status in their own right to tender for business. The forum would be supported by a business mentoring program with appropriate public and private sector tendering experience.

In parallel with the development of the forum and supporting technology for collaboration, the National Public Procurement Policy Unit (NPPPU) and the National Public Procurement Operating Unit (NPPOU) would be approached to agree a policy for qualification of bidders for Public Sector Contracts that do not automatically exclude small and medium size businesses or sole traders.

Assuming public sector procurement policy can be agreed with the relevant authorities the initiative would work with a number of leading private sector companies to develop an equivalent approach to encourage participation. (Potentially create the Private Sector Equivalent of E-Tenders to publish private sector tenders to the community.)

Outline
To set up an online “Shared Tender” site, listing service offerings of jobseekers. Set up a shared "Limited Company" structure, complete with; company number, VAT clearance certificate, public liability insurance etc which can be used by jobseekers when tendering for business. To have jobseekers qualify as "Sole Traders" (under the Back To Work Enterprise Allowance) and to eliminate the costs of registering a company for a max period of up to six months.

Jobseekers retain their job seeker benefits while tendering for projects, allowing them to create work opportunity with little risk. Introduce a time restriction of a maximum of 6 months for usage of the status, so the initiative won't be abused. Jobseekers can target; domestic services, business to business services and public tenders. This initiative will act as a catalyst for start up companies, while removing barrier to entry and in turn increasing competition. Recommend relaxing criteria for “start up” companies for specific public procurement contracts, based on real risk of work being undertaken.  Not to exclude “Shared Tender Companies” on qualification criteria.

In tandem with the shared structure, create a networking platform (social media/ website/ specific locations) where individual jobseekers can bolt on other job seeker services to enhance their service/ product offering. Base “Innovation Centres” in all FÁS training centres, to allow jobseekers meet and use facilities. This platform will naturally bring innovative, like- minded jobseekers together and will provide a natural support structure and a central point for sharing ideas and expertise.

Set up a central website with easy step- by- step approach to starting a micro business and build in central taxation advice, bureau payroll service and other support services (pre procured) to allow the owner/ principal get on with generating revenue. This may initially be propelled through a one day "Start Your Own Business Course" (currently being offered). The networking platform may be supported through Business Mentors, who can offer guidance. Mentors may be acquired direct from the live register, they themselves acting as sole traders for up to 18 months. They will retain their job seeker allowance,  incentivised by numbers of jobseekers placed off the live register through the initiative. Mentors from the private sector may also be sourced on a voluntary basis.

Offer web development service (under the BTWEA) and bolt on Microsoft’s BizSpark Programme, offered  to start up companies, offering free software and support for entrepreneurs and startups.

Benefits to Employer 
Startup companies will be created through this initiative.

Benefits to Job Seeker
Will result in higher number of self employed jobseekers. Removes risk and cost to jobseekers starting their own enterprises. Provides extended network of people with the same goals and objectives sparking innovation and motivation. Network will enhance individual's offerings substantially allowing more scope for enterprise. Guidance and advice provided from the offset.

Benefits to Government

- Reduced numbers on live register. Revenue generation: (corporation tax, Income tax, PRSI). Innovative business start ups. Largely self sustained though utilizing unemployed professionals as business coaches. - Reduce untaxed work.

7. Export Ireland Initiative

Objective
To promote Ireland as the European centre of excellence for food products (or other) and build a sustainable sales and distribution framework to support it. To establish an “Export Centre” as a vehicle to promote Ireland’s strong heritage and credibility in producing high quality fresh and natural foods. The “Export Centre” consists of a call centre and distribution network, acting as a new international channel for small boutique food/drink producers.  High level intensive sales and marketing training delivered to call centre staff in advance. Export Ireland supported by online portal to promote Ireland as a specialist producer of Organic/ Homestead Food products and services. (In line with Gateway Ireland and Innovation Taskforce recommendations).

An Export Centre can be developed around similar niche sectors.

Outline
Firstly provide a formalised structure around marketing, branding, financial management and distribution to help these firms develop and expand a domestic sales and marketing network, to enable them to create the scope and size to take on export markets. Define specific categories of food product offerings (organic, consumer etc) and promote Ireland as European/ WW leader in “Organic Food”. Establish a call centre (location to be agreed) on an 18 – 24 hour operation to resell pooled products or services to markets worldwide, i.e. establish specific sales and distribution channels for organic food products, boutique food and drink products. Leverage off volume to provide considerable cost savings in getting products to market. This structure may provide new markets for primary producers.  Implement six Sigma Lean Processes to the centre to achieve a highly productive route to market with a very high levels of professionalism.

Brand Ireland as centre of excellence for Organic Food Products using quality and regulatory framework as “Organic Ireland’s” USP. Introduce a high Quality Standard for joining on quality/visibility which will put up barriers to entry.  The same model could be replicated for other countries looking to access the new European Quality Supply Chain and therefore become a European hub of excellence for that given market. Partner with a European logistics company to establish ambient, chilled and frozen supply chains.

Develop and deliver World Class FMCG Sales training through the Institute of Professional Selling administered through FÁS.

Benefits to Employer 
Small food producers get access to a professional sales force as well as access to new markets., 

Economies of scale
This occurs when overall production increases while certain fixed costs (rent, machinery) remain constant. The ability of large firms to utilise machinery and other technology that require a large initial investment (outside the reach of smaller firms) yet increase cost efficiency in the long term is a common source or economies of scale. External economies of scale exist outside of the firm and are the result of location. A firm may be located near a large market which makes mass production profitable, offers more efficient and comprehensive distribution and transport systems, or is near to a specialised workforce. 

Economies of scope 
If a sales force is selling several products they can often do so more efficiently than if they are selling only one product. The cost of their travel time is distributed over a greater revenue base, so cost efficiency improves. There can also be synergies between products such that offering a complete range of products gives the consumer a more desirable product offering than a single product would. Economies of scope can also operate through distribution efficiencies. It can be more efficient to ship a range of products to any given location than to ship a single type of product to that location.

Further economies of scope occur when there are cost-savings arising from by-products in the production process. An example would be the benefits of heating from energy production having a positive effect on agricultural yields.

A company which sells many product lines, sells the same product in many countries, or sells many product lines in many countries will benefit from reduced risk levels as a result of its economies of scope. If one of its product lines falls out of fashion or one country has an economic slowdown, the company will, most likely, be able to continue trading. 

Benefits to Job Seeker
- New jobs created in FMCG which has taken a hit in Ireland
- Exposure to International Markets
- Further growth opportunities
- New career path for sales professionals in Insurance/Utilities/Finance call centers. 

Benefits to Government
- New jobs created

- Not cannibalising other jobs. - Ancillary jobs in other sectors such as transport

- Further growth opportunities - Chance to establish Ireland as a European/ World leader in a niche sector, which we have traditionally been strong in.

8. Piece Work Initiative

Objective
Introduce piece work method of remunerating jobseekers where tangible units of work can be produced at a fixed cost, in compliance with the Minimum Wage Act 2000.  To shift jobseeker's exclusive focus on permanent and contract employment to a productive, innovative, accountable method of working - cultural shift from looking for "employment" to looking for "work".

Outline
Establish a website “Piecework.ie” to increase access between employers and jobseekers. Establish a central control system with payroll bureau to ensure payment of tax. Employers to change their traditional view of employing permanent and contract staff shifting towards high productivity piece work. This method is traditionally used in the construction sector, where a price is agreed for the completion of unit of work e.g. price for pole erected, meter of cable installed etc. Where work activities can be measured in hours this can be converted to price per activity or unit produced from that activity. 

Employers to source jobseekers through the National Job Seeker Database who have elected themselves available for work.

Cultural shift required by jobseekers in how they approach employment versus work. Jobseekers to take more responsibility in “innovating” themselves. Networking forums to be set up in similar to the Work Search 2.0 (Job Club currently operating on a voluntary basis).

Benefits to Employer 
Self regulating and performance enhancing method where labour costs are directly linked to production and variances in percentage of labour to turnover are minimal. The level of direct supervision is now concentrated on quality as production is self driven. Direct access to a pool of jobseekers happy with the method.

Benefits to Job Seeker
Increased control over work search, opening direct access to flexible work options. Central payroll service, avoiding accounting costs and ensuring compliance.

Benefits to Government

 Revenue generation: (corporation tax, Income tax, PRSI). Innovative business start ups.  Avoids untaxed labour.

9. National Recruitment Body

Objective
To set up a National Recruitment Body, based on private sector recruitment agency model, where experienced recruitment professionals place jobseekers at no cost to the employer.

Outline 
Set up a state led recruitment body, with a specific focus on placing professional and executive jobseekers back into employment. An estimated 3,000 recruitment consultants have themselves been made redundant in the last 18 months and likely to be available and potentially interested in resourcing this initiative. Initially set up a medium sized recruitment body with 30 ex- recruitment consultants and five support staff redeployed from public sector. Initially set up central recruitment body in Dublin with the view of extending it throughout six key locations (Dublin, Cork, Galway, Dundalk, Waterford, Limerick). House the recruitment body in accessible government/ public sector buildings with adequate interview rooms.

The ex- consultant will have had relationships with employers across all industries and are experienced in proactively placing candidates in suitable jobs. There is no cost to the employer and the body is funded through the first three months PRSI and PAYE contribution.

The body may also offer "Career Coaching services", providing coaching in: career assessment and road mapping, self evaluation, self realisation, CV design and formatting and interview techniques. This will enhance their ability to compete for a new career.  

This initiative is directed at professional and executive level jobseekers who are highly marketable and who don’t see a natural fit between themselves and current employment services.

Benefits to Employer 
Free recruitment service. High quality search and selection service. Qualified, prepared candidates presented for interview.

Benefits to Job Seeker
High quality career service, designed specifically for their level. Career support coaching. Direct access to current opportunities. Proactive placement approach.

Benefits to Government

 Reduced numbers on live register. Revenue generation: (corporation tax, Income tax, PRSI). Cost neutral professional service for merging demographic of "recently unemployed". Direct intervention, while retaining jobseeker's motivation and competitiveness.

10. Life-Long Learning Initiative

Objective
To re-skill jobseekers from the construction and manufacturing sector around competitiveness, innovation and commercial awareness. Continue support to upskilling of low skilled workers in employment.  To adopt the Cadbury “Life Long Learning Initiative” as a recommended approach for implementation on a national level.

 Outline
To re-skill low skilled jobseekers in line with current demand in the market:

Low skilled

Retail professionals

Semi skilled jobseekers

Executives and professionals

Re-skilled in corporate communication, computer applications, customer service, telesales.

Re-skilled in corporate business development, professional sales support, lead generation, account management and career coaching.

Re-skilled in research, competition analysis, spend analysis to undertake feasibility studies to target new markets

Start your own business/ self employment/ franchise options.

To continue funding Government initiatives such as ‘skills for work’ and ‘learning at work’ to reduce the risk of redundancy and enhance employee contribution to competitiveness which will contribute to job creation. A relevant case study: is the “Life Long Learning programme” which was developed at Cadbury.  In total 17 courses at FETAC level 3 and Level 4 were run in computers, communication skills and personal effectiveness in 2009/10. The programme targets mainly factory operatives but is also available to office clerical staff. Over 130 employees from all shift patterns completed more than 8,000 training hours. The first graduation ceremony took place recently.

Benefits to Employer
Upskilled jobs seekers trained to seamlessly enter a corporate work environment.

Increased capability and contribution. Facilitates the restoration of competitiveness through investment in technology and people. Increased employee commitment, engagement and participation, resulting in employee’s desire to take on additional new accountabilities. Significantly benefits continuous improvement and productivity initiatives.

Benefits to Job Seeker
Opens new opportunities in new sectors where there is demand. Increases jobseekers’ commercial awareness and ability to be innovative and therefore better placed for sustainable employment.

Benefits to Employee
Increases individual employee productivity and self awareness of their contribution to the bottom line. Improved commitment to company goals. Indirectly position a company to create new jobs.

 Benefits to Government Life Long Learning initiatives will result in creating a more innovative, flexible and capable group of employees who will play a key role in sustaining and ultimately creating additional sustainable employment in areas of the economy. Increased tax receipts.