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SOCIAL AND ECONOMIC PROBLEMS OF INDUSTRIAL DEVELOPMENT
UDC 331:374 doi: 10.15407/econindustry2017.04.097
Vasyl M. Petyuh,
PhD in Economics, Professor E-mail: vpet@ukr.net; Ludmila V. Schetinina,
PhD in Economics, Ass. professor E-mail: sludval@ukr.net; Olga M. Zinchenko Kyiv National Economic University named after Vadym Hetman 01011, Ukraine, Kyiv, boul. of Victory, 54 E-mail: zinchenko.olga11@gmail.com
THE PROFESSIONAL PERSONNEL DEVELOPMENT PROVISION AS A COMPONENT OF THE DECENT WORK CONCEPT
In the paper modern trends of professional development in Ukraine are investigated. The analysis of survey results have defined that there are differences in beliefs of people depending on their age, development level and social status. However, the formation of an effective and sustainable economic growth of an enterprise is impossible without human development of employees, their knowledge and skills. The existence of professional development helps to reduce employee turnover, to increase their commitment and loyalty to the company and to create a favorable social and psychological climate within the collective. Development in an enterprise gives social life a sense of order and stability to workers and additional social guarantees of their employment. This is the main aspect, which allows connect an increase of the staff's qualification level and provision of decent working conditions. In spite of this, an employer often wants to reduce expenses on vocational education and staff training because now the economic situation in the country (Ukraine) is unstable and there is a lack of necessary funds. For this reason, new technologies and development programs of staff are rarely implemented in the labor market. In particular, the disregard for the personnel needs in training leads to decrease in productivity, work motivation, reduction commitment to a company, loss of confidence and positive social interaction with colleagues and top managers. On the other hand, professional development increases business efficiency and competitiveness. Up-to-date methods of vocational training on the labour market of European Union member countries were analyzed with the aim of improving the Ukrainian training system. The experience of foreign companies is important, because they have long realized that the human capital and economy of knowledge become a source of economic growth of the enterprise.
Key words: professional development, decent work, employees, employers, labor market.
JEL codes: J2, I25.
New realities of a modern world require transition to a new level of social relations. The scientific and technological revolution, as well as high technologies and modern standards of management, related to
it, dictate existence of professional qualities of workers, their high qualification, mobility and efficiency. In such situation the key to success and competitiveness of each enterprise is qualified personnel, capable to gen-
© V.M. Petyuh, L.V. Schetinina, O.M. Zinchenko, 2017
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erate new ideas, to bring expected result and to reach goals set forth, be adaptable to frequent changes, occurring in the world. Therefore, decent work is not only productive, free, safe, established on the principle of equal payment for equal work, but also a kind of work, that doesn't humiliate dignity and develops high potential of a person. However, today in Ukraine, employers frequently ignore the training needs of staff for various reasons. The result is a decrease in the labour share, a decline in employees' motivation, a reduction of devotion to the company, a loss of trust and of personal interaction with colleagues or senior staff etc.
Professional development represents changes of mental functions and personal qualities, which arise at interaction with profession, in the course of vocation education and professional activity [3].
In other words, one should understand that professional development is a personal development as a subject of professional activity. Many researches of outstanding foreign and Ukrainian scientists in the field of economics were dedicated to investigating a set of issues on staff development, notably - M. Armstrong, who conducted a detailed implementation analysis of effective vocational training of personnel [2]; M. Novikova and M. Borovik considered the need for system organization of knowledge management and identified its main constituent elements [5]; O. Grishnova analyzed the complex of organizational and economic actions of the enterprise in the course of personnel professional development and revealed their value for formation of business social responsibility [4]; A. Kolot defined the role of a person, interrelation of economy and human development, socialization perspective of relations in the working sphere [6]; V. Savchenko investigated theoretical principles of system organized process of employees' continuous professional training, their preparation for implementing
new production functions and vocational qualification promotion [8]; I. Shvets identified the importance of professional staff development for the formation of a competitive enterprise [10]; S. Shekshnya recognized the development of personnel as the process of employees' training in order to implement new production functions and new challenges by them [11].
Considering historical routes of investigating the subject activity category in psychology, one can notice, that directly an individual development problem has received the greatest development in the works by B. G. Ananiev.
This scientist revealed a concept meaning of the subject and connects it to activity, subject, tools and operative technique, expected output. He emphasized, that the subject was much more, than just subjective phenomena: the structure of human beings as actors integrated individual properties and the identity. It defines readiness and ability to implement activities and to achieve some degree of productivity. A creation of an active subject is not completed, as long as activities are carried out. It's a kind of permanent process which concerns every person of any age. Numerous studies show, that the extending occupational activity and development lead to the overall increase in life expectancy [1]. However, taking into account fast changing economic processes in a country, the system of increase of personnel professional level at enterprises is gradually modified and improved. Therefore, there is a need in more detailed researches.
The aim of the paper is to identify current trends of providing professional development in domestic labor market through a prism of the conducted research and justification of the need to increase the personnel qualification level by ensuring decent work conditions at enterprises.
- EmHOMim npoMucnoBocmi Economy of Industry
In modern conditions of employment transformation there is a question of employers' resistance or inability to promote the career and personnel professional development, which makes impossible for them to provide a workplace with decent work conditions [5]. Domination in the world of the concept of economic growth over a long period of time is the reason of such situation. This concept is based on the idea, that the main indicators of the success of socio-economic governance at all levels (country, region or businesses) are high growth, labor productivity, high gross domestic product and average income per capita. The concept dominates in the world via thinking and beliefs of people, because its essence is quite simple and straightforward. The same cannot be said about its effectiveness in practice.
However, in transition to the 21th century it is clear, that to satisfy only the economic achievements is not enough. They aren't the destination point, but constitute only a means to reach the goal. The incomes of the society are significant factor, but they should be directed on achieving the decent employed social security payments of and creation of a safe, comfortable environment in the workplace. However, the quality of working life does not always coincide with the level of material incentives. If people were only interested in the money earned in the workplace, it is unlikely, that there would have been so many successful and rich people. A worker is driven not only by the financial conditions, but also by passion, interest, ability of self-fulfillment and individual professional growth.
Studies confirm the abovementioned statements. They were carried out at the beginning of 2017 among different categories of respondents: students of universities without working experience (they express their view, wishes about the future place of
employment), working students (they act as wage earners, able to evaluate subjectively the current situation of their workplace due to the inner feeling about all positive and negative aspects of the working process) and entrepreneurs, who act as employers. Respondents had a chance to answer a number of questions, which defined their attitude to different subjects of social and labor relations to the problem of professional training of the staff within the companies, industrial enterprises.
The results of the study revealed that not long ago common Human Resources (HR) strategy - to fire an employee in case one is not satisfied with his or her qualifications and to find the right person in a labor market - slowly, but go back to the past. On the way to increase productivity and efficiency, companies prefer to spend resources on professional training of their employees. They want to form a qualified and competent staff, able to create products and services that could compete with foreign goods and services. It is confirmed by the survey data. It turns out, that 83,3% of enterprises are carried out vocational training, and only at 16,7% of them this aspect of working life is not defined. This situation shows the positive shifts that occur in the Ukrainian society. They are reflected in the real actions and understanding that learning is a key for training staff to come to a correct decision, to analyze a wider range of tasks and to provide the highest level of efficiency. It will not only increase the level of workers' knowledge and develop the required professional skills, but will form their system of values and attitudes, which corresponds to modern realities and the market organizational strategy of a company.
Comparing the views of three categories of participants in social-labour relations (employers, employees and students as potential applicants), we found that
more than half (51,16%) of respondents-entrepreneurs to an extent consider providing professional development aspect, which will give a workplace with decent
working conditions (Fig. 1). At the same time, the rest of respondents to the survey assessed the value of this indicator as less important.
Employees; Impact of intangible incentives on the staff labor behavior; 0,4848 Employers; Impact of intangible incentive the staff labor behav
0,4298
tudents (potential iloyees); Impact of gible incentives on taff labor behavior;
0,333
Employers; Prospects for professional development as a decent work component;
°,51Einployees; Prospects for sional development as nt work component; 0,4545
udents (potential loyees); Prospects for onal development as nt work component;
0,333 Employers; Influence of the expansion professional learning forms to in level of job 0,2
Employees; Influence
of the expansion professional learning forms to increase the level of job satisfaction; 0,303
Students (potential employees); Influence of the expansion professional learning forms to increase
el of job satisfaction; 25%
□ Employers □ Employees □ Students (potential employees) Source: calculated by the authors
Fig. 1. Priorities of various social groups in professional development
Such a paradoxical situation can be explained by the existence of practical experience of employers and rational way of thinking that helps to achieve positive results in business. They realize the value of the human development concept, according to which there has to be a person at the center of a society development, but not just economic indicators. An ultimate goal and a criterion of progress success is expansion of opportunities for people, a better satisfaction of their needs and realization of human potential. The same idea is also put in the concept of decent work: it is not enough for a person to have a workplace and to earn a financial reward carrying out his or her working duties. In such conditions an employer also cannot expect productivity growth and accumulation of social wealth.
The formation of effective and sustainable economic growth consistently bring it to a logical result achieved by the expanding capabilities of people, the fulfillment of their economic, political rights and freedoms, satisfaction of spiritual and material needs of present and future generations of population. Expanding capabilities means improving the human potential, knowledge, skills, physical and mental abilities [8].
Fig.1 shows that the distribution of priorities for the other two indicators, namely, the impact of intangible incentives, including professional development on the labour behaviour of the employee and expansion of professional learning forms of vocational training to increase the level of job satisfaction, differs from that described above. The results of the survey show that
- EKOHOMiKa npoMucnoBocmi Economy of Industry
all subjects of industrial relations are below the average level._However, employees have motivation to receive in the workplace intangible acknowledgement of work results (48,48%) and diversification of professional education forms (30,3%). With these measures, an employee feels a greater loyalty to a company that gives him or her work, his or her own affiliation with it. If HR policy shows and marks the value, appreciates the results of each staff member, it is automatically doomed to create a favorable image of such an employer in the community and beyond.
It turns out that employers show less interest in diversity in vocational training of their employees (27,91%). This effect could arise from a number of factors such as unstable economic and political situation in the country, which led to straightened circumstances and inability to implement new
While the average job satisfaction is expressed by 57,6 % of respondents, the low one is expressed by 6,1% of them. The values of the indicators correlate with the staff proportion that underwent training once in two years, less than once in three years or had no such a possibility in the company.
An interesting difference is observed in the responses of workers and students who do not work. Training was not conducted at all in the workplace for 54.55% of employees, at that time 54.17% of students believe that it should be implemented annu-
modern technologies, staff development programs. The students' proportion, who gave positive answers, helped to define the weight of these indicators. In the overwhelming majority youth shows the desire to receive material incentives for the results of work. Young people want to get financial independence. So at this stage of their personal formation, they do not allocate additional opportunities as too important and do not pay them due value.
Companies, which have a regular professional training, allow the workforce feel satisfaction with working conditions. This is evidenced by the data, obtained in the result of the survey. As it is become evident, 36,4% of staff appreciated the degree of received satisfaction from employment and 39,4% of employers annually provide the improvement of staff qualification at the company's cost (table. 1).
ally. This tendency proves that people are focused on professional growth, and the employer seeks to economize on this.
This reason is often crucial for employment. The choice falls on the company that is able to provide the candidate the need for self-improvement. The staff development program contributes to the formation of personal integrity, raises the intellectual level of its participants and expands the range of person's communication skills. Therefore, the employee begins to have more knowledge and a strong motivation to
Table 1.
The respondents' answers on the frequency of employees' professional training _at the company's cost_
The period of study The proportion of respondents, %
Employees Students (potential employees)
Every year 39,4 54,17
Every two years 3,03 20,83
Every three years - 12,5
Less than once in three years 3,03 8,33
Vocational training was not conducted 54,55 4,17
Source: compiled by the authors
do tasks standing before him. Also an improvement of the moral and psychological climate in structural divisions of the organization is happening due to this that reduces staff turnover. The employee perceives the company's business as his or her own and believes that it is his or her own duty to contribute to its prosperity. Thus, for the sake of securing their economic interests, the employers should strive to cut the gap that has emerged between the perceptions and desires of potential employees with the realities that came in force in the domestic labor market (table. 1). The company could improve the situation by organizing regular events for professional training at least once a year.
Vocational training assigns to workplace the rank of worthy. It is confirmed by 57% of staff respondents. The development within the enterprise provides more employment security and a sense of stability due to reducing risks of frequent staff transferring from one company to another. Conversely, frequent transfers of personnel in search of better salary lead to horizontal shifts along the corporate ladder for them with the loss of opportunities for growth. On average, the adaptation of an employee in a company takes about a year. It means that only in a year an employee is fully mastered in the new team, gets acquainted with the orders and rules, the technical specifics of tasks [6]. In a year the employee begins his or her to professional development. Therefore, if a specialist transfers from one company to another each year, then he or she will constantly be in the process of adaptation, rather than development. This will lead to a situation, when he or she will be lagging behind requirements of employers and will go down the corporate ladder. If a person changes jobs every two years, the adaptation will take about half the time, which remains from the current tasks on development. The same applies to an employer. In case when an employer is in constant search for and
hiring of the best employees, he or she spends more time and money to acquaint new staff member with the team, requirements, tasks, that is, with the process of adaptation. Therefore, it is more rational to develop skills of a company's already working employees. The company must give them a range of opportunities to advance their knowledge, abilities, set new goals for them, which in turn will strengthen social protection and improve working conditions in Ukraine. Besides, a fair system of vocational training and better quality of such training, of course, could greatly contribute to the reduction of inequality in incomes of the society, thus implementing aspects of the concept of decent work.
Special attention should be noted on most attractive to employees forms of vocational training. Respondents identified the top three forms that they would preferred. These forms are: Master of business administration - MBA (66,7%), two- or three-days training course (54,2%) and extension courses (45,8%). The intermediate results goes for internships (41,7%) and seminars within enterprises (37,5%). Round tables (25%), scientific conferences and seminars outside of enterprises are uninteresting (Fig. 2).
However, the current financial situation with costs on training in Ukrainian companies differs from budgets of leading companies of the world. According to a survey, conducted by the International consulting company Hay group in 2015, the budget for staff training amounted to 9,7% of the total HR budget in the average market in 2015 [13]. The majority of Ukrainian companies planned to keep spending on staff training and development unchanged in 2016. Increase of the budget for training and development was provided only by 16,4% of analyzed companies, 7,3% of them were going to enhance the filling of the training package while saving the budget. So, the most common methods of staff training in Ukrainian companies are the following:
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mentoring and training during work; cours- experts; audio and video courses; specialists es, seminars, workshops, carried out outside rotation; exchange of knowledge within the the enterprise with the calling of external company.
□ Pagl; MBA Program Training Course; 66,70%
□ Pagl; Two-, three-day trainings ; 54,20% □ Pagl; Refresher courses ; 45,80%
□ phäi; □ Pagl; Seminars Internship ; within the
41,70%
company ; 37,50%
□ Pagl; Scientific-□ Pagl; Seminars practical outside the conferences,
company : 25%
round tables ; 25%
Source: compiled by the authors
Fig. 2. The respondents opinion about forms of vocational training
Employers, representing Ukrainian companies, believe that the achievement of high results is possible only by an imply-cation of an integrated approach, combining different methods that take into account peculiarities of the audience. For example, the best combination of master classes, conducted with the assistance of competent professionals, and video courses that will help to combine the knowledge for the applied skills development of staff of industrial enterprises. Professional conferences, creative competitions are best suited for improving the professional qualities of employees of advertising, sales and development departments, etc. Non-standard teaching methods are best suited to improve the professional level of top managers. Unconventional training, theater performances, metaphorical games and other unusual methods of teaching career and personal growth could be
given even to the most experienced and competent managers.
To improve Ukrainian system of staff development it is necessary to adapt the EU experience. The transfer of skills in the structure of continuing professional education in European companies traditionally is associated with workspace, supplemented in modern conditions by a range of different training forms: conference, seminars, job fairs, lectures (51%), self-study (for example, e-learning) (30%); participation in training cycles and quality (18%); work rotation, exchange or study visits (18%), etc. The problem of staff development in Europe is considered by such scholars as K. Cohen, V. Bartz, H. Shibl, A. Sorge and etc. [9]
It is important to note that in the framework of the strategy of education throughout life the formal professional education is an alternative to independent self learning. About one-third of European or-
ganizations practice various forms of stuff self-study. The distribution of different forms of employees' self-training depends on the size of organizations. Various forms of self-education in the system of continuous vocational education reduce costs for enterprises of different sizes. Self-education also means greater autonomy in time scheduling and content of training for employees. New opportunities are opened up by multimedia technologies, including open and distance learning. [9]
The company CegosGroup is a world leader in the field of vocational training during the last century. It conducted the study among 2640 employees in 6 European countries (France, Germany, UK, Spain, Portugal and Italy) in 2016 [12]. It was determined that compared to 2015 the company increased the training provision in enterprises. The largest breakthrough is observed in
spreading such method of human potential development as coaching (Fig. 3). Personal trainer can achieve good results because a lot of attention is paid to the present and future goals, ways to succeed them by trainees. The coach helps to learn how to find independently a way out of difficult situations through a prism of stimulus, positive emotions and the desire to form, change and improve oneself.
Individual mentoring is effectively used in industrial plants, because it ensures continuity of management and the best disclosure of human potential decreases the employees' turnover and increases the interest of new employees in the production. Communicational skills are forming and corporate culture increases, developing each of staff's abilities and skills with the smallest expenses from the firm's side.
□ 2016; Individual mentoring, coaching; __33%
□ 2015; Individual mentoring, coaching; 22%
□ 2016; The combination of learning inside and outside the enterprise ; □ 2015; The combination 35% of learning inside and outside the enterprise ; 26%
□ 2016; Distance learning ; 38%
□ 2015; Distance learning ; 29%
□ 2016 □ 2015
2016; Group seminars within the company ; 93%
2015; Group seminars within the company ; 91%
Source: calculated by the authors based on [12]
Fig. 3. Methods of vocational training of European workers in 2015-2016
According to the abovementioned results, foreign companies have long come to realize that human capital and knowledge economy are becoming an increasing source
of economic growth. Investments in human capital are the most cost-effective. Therefore, in the Millennium Declaration, adopted at the special summit in September 2000,
- EmHOMim npoMucnoBocmi Economy of Industry
the Heads of all United Nations' (UN) states members identified issues directly related to the expansion of human capabilities as one of the main tasks of the international community.
In the resulting document of the new program "Transforming Our World: The 2030 Agenda for Sustainable Development" sustainable development goals were defined as a result of the negotiation process with 193 UN member states as well as involvement of an unprecedentedly wide range of civil society groups and other interested parties.
Among the 17 comprehensive goals particular attention was paid to fair high-quality education, including vocational one. The challenge is in providing an adequate level of education and training, productivity, employment and economic growth that will bring huge social and economic benefits. It is planned to develop strategies to promote youth employment, integrated balancing growth and job creation targeted interventions, such as help in job search, or support of young entrepreneurs [14].
Such measures are necessary to form good conditions in the national labour market. Additionally, the elimination of mismatches between key skills and job requirements is of incredible importance that can be done by ensuring that the training programs meet the needs of the labour market and the components of providing work experience in the field of technical vocational education and training.
Conclusions. The reorientation of the Ukrainian economy in an innovative direction has caused significant shifts in social and economic relations, changes in their essence and the needs of their rethinking. The value of human life increases significantly due to the high pace of technology. The development strategy aims to define the priorities and directions of economic and social
programs realization aiming at optimal allocation of resources and efforts.
Modern approaches to the organization management are based on the staff, because it is a key factor, determining the efficiency of all other resources. As experience shows, the most successful domestic and foreign companies invest in staff, create conditions for the employees' professional growth and enhancing their professional skills, that give 2-3 times higher returns than expenses, directed on solving production tasks only. The dynamics of changes that occur in business, the rapid deterioration of acquired knowledge encourages organizations to continuously keep up a process of their staff intellectual potential development.
However, it was defined that in Ukraine, employers do not want to spend money on professional development of their staff due to financial reasons, while employees need this. The research shows, that society call workplace as a decent one in cases, where there is a practice of professional training of personnel. Therefore, training activities not only bring positive results, worth the resources invested, but also a chance to raise the company's competitiveness in the labour market. Besides, it is necessary to view the successful experience of international companies and adapt it to national conditions. The authors of the paper suggest adapting such European forms of vocational training as individual mentoring, coaching, job rotations, distance learning, group workshops, etc. Their implementation in practice is capable to bring a positive effect of training to Ukrainian enterprises, including industrial ones. Thus, the formation of a good system that ensures continuous learning and staff development organization, becomes one of the most pressing issues that need further consideration.
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Василь Миколайович Петюх,
канд. екон. наук, проф.
E-mail: vpet@ukr.net;
Людмила Валернвна Щетшша,
канд. екон. наук, доц. E-mail: sludval@ukr.net; Ольга МиколаТвна Зшченко
ДВНЗ «Кшвський нацюнальний економiчний ушверситет
iMeHi Вадима Гетьмана» 01011, Украна, Кшв, пр. Перемоги, 54 E-mail: zinchenko.olga11@gmail.com
ЗАБЕЗПЕЧЕННЯ ПРОФЕС1ЙНОГО РОЗВИТКУ ПЕРСОНАЛУ ЯК КОМПОНЕНТА КОНЦЕПТУ Г1ДНО1 ПРАЦ1
Дослщжено тенденцп професшного розвитку в Укрш'ш, враховано думки р1зних категорш учасниюв сощально-трудових вщносин. Визначено головш аспекти, яю до-зволяють пов'язувати тдвищення квал1ф1кацшного р1вня персоналу та забезпечення гщних умов прац1. Проанал1зовано актуальн1 методи професшного навчання на ринку пращ Украши та краш GC.
Ключовi слова: професшний розвиток, г1дна праця, наймаш прац1вники, робото-давц1, ринок пращ.
JEL codes: J2, I25.
Василий Николаевич Петюх,
канд. экон. наук, проф.
E-mail: vpet@ukr.net;
Людмила Валерьевна Щетинина,
канд. экон. наук, доц.
E-mail: sludval@ukr.net; Ольга Николаевна Зинченко
ГВУЗ «Киевский национальный экономический университет
имени Вадима Гетьмана» 01011, Украина, Киев, пр. Победы, 54 E-mail: zinchenko.olga11@gmail.com
ОБЕСПЕЧЕНИЕ ПРОФЕССИОНАЛЬНОГО РАЗВИТИЯ ПЕРСОНАЛА КАК КОМПОНЕНТА КОНЦЕПТА ДОСТОЙНОГО ТРУДА
Исследованы тенденции профессионального развития в Украине, учтены мнения различных категорий участников социально-трудовых отношений. Определены основные критерии, которые позволяют связывать повышение квалификационного уровня персонала и обеспечение достойных условий труда. Проанализированы актуальные методы профессионального обучения на рынке труда Украины и стран ЕС.
Ключевые слова: развитие, достойный труд, наемные работники, работодатели, рынок труда.
JEL codes: J2, I25.
Cite this publication:
Petyuh V.M., Schetinina L.V., Zinchenko O.M. The professional personnel development provision as a component of the decent work concept. Economy of Industry. 2017. № 4(80). pp. 91-108. doi: 10.15407/econindustry2017.04.097
Petyuh, V.M., Schetinina, L.V., & Zinchenko, O.M. (2017). The professional personnel development provision as a component of the decent work concept. Econ. promisl., 4(80), pp. 91-108. doi: 10.15407/econindustry2017.04.097
Recieved 25.09.2017
- Економта промисловост1 ^^ Economy of Industry
