Businesses seek skills that few individuals possess, so one highly pragmatic solution to this problem is to do the training in-house. A popular trend in the US in this regard, and one that is now on the rise in Italy, is the “corporate university”.
The latest statistics published in the 2014 report of the International Labour Organization (ILO), which show that the economic recovery that is currently under way is failing to create new jobs quickly, further reiterate the gap that exists between education (both universities and vocational schools) and the job market (source: Il Sole24Ore, 21 January). Entitled “Global Employment Trends 2014: The risk of a jobless recovery”, the report clearly points to an increase in unemployment throughout the world. In Italy, the situation is expected to remain critical for quite some time to come, with unemployment having risen from 10.7% in 2012 to 12.2% in 2013, a figure which is expected to climb to 12.6% in 2014 and to 12.7% by 2015. In 2007, before the worst of the Great Crisis, unemployment was at just 6.1%. Jobs are being lost, as are professional skills, as both service and manufacturing firms close their doors, and with them opportunities are disappearing for large part of the young people who are now entering the job market.
In recent years, many paradigms of business have undergone radical change (as lifestyles and consumption habits have changed in response to the crisis), but education and other strategies for adapting to the job market have not kept up with this change. This is not only a matter of culture, but also reflects a lack of investment. According to the ILO, OECD nations should be allocating at least 1.1% of GDP to funding efforts to better match supply and demand in the job market, whereas the average is currently at just 0.6% (with the exception of several nations in northern Europe, namely Germany, the Netherlands, France, Austria, Belgium, Finland and Denmark, which all surpass the minimum threshold recommended by the ILO). In short, there is a lack of education, a lack of skills, and no jobs.
The figures published by the ILO, backed by a study presented by McKinsey & Company in Brussels in January (including an introduction that bore the heading “Europe’s rocky journey from education to employment”), also confirm the alarming fact that Italy is actually lagging behind the rest of the EU nations studied, with 47% of all businesses stating that they are unable to find the skills they need. In other words, nearly half of all businesses are unable to grow at the pace they would like due to a lack of workers, a lack of education and specific skills, and a lack of the tools that are in demand among the businesses that are wanting to hire (for example, just 23% of Italians looking for work possess English skills at the level needed by potential employers).
The situation in Italy is critical precisely in this “knowledge economy” in which human capital and advanced skills are the leading means of staying competitive. Measures being implemented by the Italian government (based on EU recommendations) to promote career training and internships are an initial response to help close this gap, but it is closing all too slowly.
As such, businesses are taking matters into their own hands in the form of the corporate university, an innovative educational tool to create better jobs which has two goals: to train new hires and to provide lifelong education for middle and upper management in order to keep pace with changes in processes, products and the marketplace. Already common in the US (there were already more than 1,000 corporate universities in 1997, and the number is expected to reach 4,000 by 2015), the phenomenon is now on the rise in Italy, where Assoknowledge (an association within Confindustria) estimates there are already 39 corporate universities within organisations both large (e.g. Eni, Enel, Pirelli, Ferrero, Barilla, Generali and others) and not so large, such as the automotive firm Landi Renzo and the engineering firm Lombardini.
And what do they teach? Both technical subjects related strictly to production and more generalised topics that include leadership, problem-solving, team-building, communication, economics, safety, and even environmental issues. In other words, strategies for enhancing the culture of enterprise and for providing employees with both skills related to production processes and, above all, skills needed in order to face today’s rapidly changing world – the ability to deal with complexity and to put decisions into action in an organisation’s various business processes.
Within Pirelli’s school of management and our professional academies (in which most of the training is handled in-house after having “trained the trainers”), both skilled blue-collar workers and for up-and-coming managers receive training that focuses on quality and safety, production processes, the supply chain, finance, management and operations, as well as on topics such as “driving change”, diversity management (which is crucial in a large multinational organisation), leadership, creating value, and the values that Pirelli has taken on over the course of the organisation’s long history and gradually adapted to the changing times. The Pirelli experience is unique among corporate universities, such that it has become one of the benchmarks in the open discussion taking place within Confindustria concerning how to innovate in education in order to meet the needs of today’s businesses.
The message is clear. Memory and a constant quest for innovation in both culture and technology. Training people and giving them the tools they need to get by in a new world. And isn’t that what education is all about?
Businesses seek skills that few individuals possess, so one highly pragmatic solution to this problem is to do the training in-house. A popular trend in the US in this regard, and one that is now on the rise in Italy, is the “corporate university”.
The latest statistics published in the 2014 report of the International Labour Organization (ILO), which show that the economic recovery that is currently under way is failing to create new jobs quickly, further reiterate the gap that exists between education (both universities and vocational schools) and the job market (source: Il Sole24Ore, 21 January). Entitled “Global Employment Trends 2014: The risk of a jobless recovery”, the report clearly points to an increase in unemployment throughout the world. In Italy, the situation is expected to remain critical for quite some time to come, with unemployment having risen from 10.7% in 2012 to 12.2% in 2013, a figure which is expected to climb to 12.6% in 2014 and to 12.7% by 2015. In 2007, before the worst of the Great Crisis, unemployment was at just 6.1%. Jobs are being lost, as are professional skills, as both service and manufacturing firms close their doors, and with them opportunities are disappearing for large part of the young people who are now entering the job market.
In recent years, many paradigms of business have undergone radical change (as lifestyles and consumption habits have changed in response to the crisis), but education and other strategies for adapting to the job market have not kept up with this change. This is not only a matter of culture, but also reflects a lack of investment. According to the ILO, OECD nations should be allocating at least 1.1% of GDP to funding efforts to better match supply and demand in the job market, whereas the average is currently at just 0.6% (with the exception of several nations in northern Europe, namely Germany, the Netherlands, France, Austria, Belgium, Finland and Denmark, which all surpass the minimum threshold recommended by the ILO). In short, there is a lack of education, a lack of skills, and no jobs.
The figures published by the ILO, backed by a study presented by McKinsey & Company in Brussels in January (including an introduction that bore the heading “Europe’s rocky journey from education to employment”), also confirm the alarming fact that Italy is actually lagging behind the rest of the EU nations studied, with 47% of all businesses stating that they are unable to find the skills they need. In other words, nearly half of all businesses are unable to grow at the pace they would like due to a lack of workers, a lack of education and specific skills, and a lack of the tools that are in demand among the businesses that are wanting to hire (for example, just 23% of Italians looking for work possess English skills at the level needed by potential employers).
The situation in Italy is critical precisely in this “knowledge economy” in which human capital and advanced skills are the leading means of staying competitive. Measures being implemented by the Italian government (based on EU recommendations) to promote career training and internships are an initial response to help close this gap, but it is closing all too slowly.
As such, businesses are taking matters into their own hands in the form of the corporate university, an innovative educational tool to create better jobs which has two goals: to train new hires and to provide lifelong education for middle and upper management in order to keep pace with changes in processes, products and the marketplace. Already common in the US (there were already more than 1,000 corporate universities in 1997, and the number is expected to reach 4,000 by 2015), the phenomenon is now on the rise in Italy, where Assoknowledge (an association within Confindustria) estimates there are already 39 corporate universities within organisations both large (e.g. Eni, Enel, Pirelli, Ferrero, Barilla, Generali and others) and not so large, such as the automotive firm Landi Renzo and the engineering firm Lombardini.
And what do they teach? Both technical subjects related strictly to production and more generalised topics that include leadership, problem-solving, team-building, communication, economics, safety, and even environmental issues. In other words, strategies for enhancing the culture of enterprise and for providing employees with both skills related to production processes and, above all, skills needed in order to face today’s rapidly changing world – the ability to deal with complexity and to put decisions into action in an organisation’s various business processes.
Within Pirelli’s school of management and our professional academies (in which most of the training is handled in-house after having “trained the trainers”), both skilled blue-collar workers and for up-and-coming managers receive training that focuses on quality and safety, production processes, the supply chain, finance, management and operations, as well as on topics such as “driving change”, diversity management (which is crucial in a large multinational organisation), leadership, creating value, and the values that Pirelli has taken on over the course of the organisation’s long history and gradually adapted to the changing times. The Pirelli experience is unique among corporate universities, such that it has become one of the benchmarks in the open discussion taking place within Confindustria concerning how to innovate in education in order to meet the needs of today’s businesses.
The message is clear. Memory and a constant quest for innovation in both culture and technology. Training people and giving them the tools they need to get by in a new world. And isn’t that what education is all about?