Miroslava Ivanova
Transcript of Miroslava Ivanova
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Miroslava IVANOVA
EUROPEAN FEDERATION FOR SERVICES TO INDIVIDUALS
Role of private companies in development and professionalization
of l ifestyle and home-care services
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EFSI European Federation for Services to Individuals
The European Federation of National Associations & Federations, the only group of active private companies in this f ield
To study, protect and promote the sector’s common professional interests at the European level
Mission
In order to : Accelerate the development of permanent employment in these services Create fair market condit ions : reduce undeclared work, promote incentive-
based policies foster demand for quality and professional services
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Services to individuals
Social , demographic and cultural developpments
Life expectancy (proportion of over 80s: 12% by 2050) High dependency ratio Breakdown of traditional family base More women in the workplace (60 -70% average) Right balance between family l ife and work
response to societal challenges in Europe
Massive demand for services
to outsource al l kinds of domestic and care tasks Overal l potential is very important
Awareness-raising actions are needed Understanding of sector’s issues Emphasize common interests
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A tool to fulfill objectives of the European strategy ‘Europe 2020’
Reduce poverty in promoting active inclusion80 million Europeans were at risk of poverty before the present economic downturn
Services to individuals
High potential of job creation (answer to expanding demand for services)
Increasing labour market participationUnemployement : 23 million = 10% of European active population develop active employment pol icy, adapted to gender issues (only 69% of women are in work compared to 76% of men) and reconcile work and family life
Job opportunit ies particularly suitable for the low-ski l led unemployed
Provide assistance for the most needy (older and dependent), which are also exposed to exclusion
A better social integration
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Employees & Citizens
Service providers
Enhancing performance • Greater purchasing power for specif ic needs• Simple and rapid use• Access to preferential offers • Improved qual ity of l i fe
Sharing benefits• Increased sales with low r isk payments • Development of cl ient loyalty
Macroeconomic impacts•Job creation•Turn informal economy into a formal act iv ity•Increased publ ic revenue through taxation
State
By offering companies opportunity to become an actor in this f ield (series of measures : tax incentives, using reduced VAT rates, services vouchers, …)
Services to individuals Increase supply and involvement of all actors
Voucher-based products drive key benefits for al l parties involved
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The role of businesses in a changing market: positive outcomes in some European countries
BELGIUM T ICKET SERVICES : Case study of a voucher systemService voucher system introduced in 2003 by the Belgian authorities.The system was opened to private companies approved by the federal government (which recorded significant growth: from 785 in 2004 to 2,500 in 2009).The objective was to create 25,000 jobs by 2007.
In 2009 more than 120,000 people employed thanks to the service vouchers system. It proves to be more and more successful and is widely accepted in the Belgian population.
Service vouchers enable low-skil led people to (re)enter into regular employment. According to a survey of the Ministry of Employment and Social Dialogue and the ONEM’s data:
92 % hold a certificate of secondary education at the maximum,40 % a lower secondary education
43% were unemployed60% have now a permanent employment contract
98 % of them are women
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The role of businesses in a changing market: positive outcomes in some European countries
Recent changes in law and regulationsJuly 2007 - Tax reduction for consumers of services (50% of total expenses)January 2008 - Same reduction for companies offering these services to their employeesJuly 2009 - Introduction of a new system : consumers pay only 50% (cash advance) while the companies apply for refund from the Tax authority. system easier and services more affordable for consumers
Positive effectsHousehold’s demand has increased by 50% (15,000 new consumers per month), which resulted in creation of jobs and diminution of undeclared work. 75% of employees were previously unemployed.
According to a survey conducted by Almega (the largest federation in the service industry in Sweden), 70% of the population supports the new system, which has turned out to be a wedge issue during the Swedish national election of Sept. 2010.
SWEDEN household services :Case study of a tax reduction and cash-advance system
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The role of businesses in a changing market: positive outcomes in some European countries
National Development Plan (July 2005)Simplify procedures and access to services (creation of CESU voucher)Stimulate demand (reduction of taxes and social contributions)To increase the sector’s professional standing (improving working conditions & services quality)
Positive effects400,000 jobs created since 2005 (following the ANSP’s data)Explosion of supply since 2005: 5,500 to 25,000 service providers Private companies => most spectacular growth : 500 to 12,000
These dynamics wil l continue: performing companies wi l l be needed- Challenge of dependence (financing, adapted services)- New demand, new needs (services in the workplace…)- New technologies, innovations
FRANCE Development Plan and CESU voucher : Case study of a mixed system
Market share %
Companies
Undeclared work
Individual employers
Associations
60 50 40 30 20 10 0
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Key factors of success
Better qual ity Professional ization of the sectorExpansion and sustainable development of these services stem from :
- increasing the professionalism of stakeholders - public or private - - improving the public image of these occupations.
Attractiveness Better working condit ionsPromotion and recognition of services
Competit iveness Regulatory stabil i tyThe dual nature of this sector must be acknowledged (social and market-based economy). The ‘entry’ of private actors signals an important change, but working together is the ingredient of success (e.g. in France, proposals prepared by all stakeholders were included in the government’s policy).
National policies are needed to achieve lasting results