The
SECRET FORMULA OF HUMAN RESOURCES S P E CIA L S U P P L E ME N T
D I P L O M AC Y & CO M M E RC E 2016
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SERBIA IS GETTING CLOSER TO SUCCESSFUL MODERN COUNTRIES The entire government considers boosting employment and achieving better quality of life for all our citizens as its primary goals. Through its numerous activities, the Ministry is continuing to work on improving the labour legislation, combating unregistered labour and stimulating employment in accordance with the relevant legislation
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he Ministry of Labour, Employment, Veteran and Social Issues is going to have a very dynamic year ahead during which it would continue working on the labour laws, fighting shadow economy and further boosting employment. Additionally, the Ministry is in charge of taking care of migrants. We are talking to Minister Aleksandar Vulin about the Ministry's results in 2016 and the tasks ahead. Which reforms, that your Ministry is in charge of, are the most important for creating a favourable business environment? › Since 2014, the Ministry has been conducting reforms in labour legislation (e.g. the Law on Amendments and Supplements to the Labour Law which came into force on 29th July, 2014), and this is something that we will continue to do. In cooperation with our partners in social issues, we have formed four task forces that are preparing draft laws, namely: the Law on Temporary Recruitment Agencies which is
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supposed to eliminate unfair competition among the agencies and improve the business environment; the Law on Temporary Seasonal Employment, which is going to contribute to combating shadow economy in agriculture (where unregistered labour is the most widespread) since it will legally regulate the issue of unregistered workers; the Law on Amendments and Supplements to the Law on Peaceful Settlement of Labour Disputes, and the Law on Strike Action. The goal of the amendments and supplements to the Law on Peaceful Settlement of Labour Disputes is, first and foremost, improving the legal framework in this area where the role of the State Agency for Peaceful Settlement of Labour Disputes will become more pronounced in order for as many individual and group labour disputes to be settled in a peaceful and efficient manner without the need to go to the court. The new Law on Strike Action is supposed to harmonize the workers right to go on strike with the prin-
INTER VIEW
A L E K SA N DA R VULIN Ministry of Labour, Employment, Veteran and Social Issues
ciples and guidelines set out by the International Labour Organization, and allow social partners to participate in determining the minimum work process. How successful have the amendments to the Labour Law been and what are the best results achieved after implementing the amendments so far? › The Law on Amendments and Supplements to the Labour Law, which is considered one of the reform laws, has improved the conditions for doing business, and reduced administration and labour costs. By doing so, this law has significantly contributed to creation of a more favourable business environment. In this respect, Serbia has now moved closer to successful, modern countries. In 2012, unemployment in Serbia was 23.9% and, when we look at the unemployment in the Q2 of 2016, we can see a noticeable difference, with the unemployment rate now standing at 15.2%.
Collective negotiations have been raised to a higher level
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The novelty that this law brought is also that the fact that payslip is now treated as a public document. In the period from 1st January to 4th October, 2016, 2,616 workers managed to get their outstanding salaries in the total amount of 199,208,545.45 Dinars thanks to this change in regulation. It is important to mention that labour costs have also been reduced, employment has gone up and many of unregistered workers are now properly registered. The Law gave a better stipulation of reasons for termination of employment and a simplified procedure for termination of employment by employer. Another very important thing is that collective negotiations have been raised to a higher level as they are now given preference over unilateral regulation of employer’s rights, obligations and responsibilities. The changes made to the aforementioned laws have also improved the work done by the Committee for Determining the Representativeness of Trade Unions and Employers' Associations because decisions are now made by majority vote rather than by consensus. How much can the Ministry contribute to combating shadow economy within its scope of work? › We have been trying really hard to help those companies that want to do business legally and to make their business profitable. Compared to previous years, inspection supervision has been improved. In the first nine months of this year, labour inspectors found 26% more unregistered workers relative to the same period in 2015. In 2015, they found 16,408 unregistered workers which was a 181% hike compared to 2014 (when 5,831 workers were found). The good effects of the work done by the inspectors can also be seen in the fact that, following the inspections, employers have hired close to 80% of the unregistered workers in line with the relevant regulation. On two occasions this year – in July and September – labour in-
spectors carried out additional inspections in those companies that, during the earlier inspections in 2016, had three or more unregistered workers. The reason for this was that they had noticed that certain employers, which had unregistered workers in the past, continued with the same practice after a while, i.e. again hiring unregistered workers, while some went as far as to remove their employees from the employment records kept at the Pension and Disability Insurance Fund, and keep them in the company but as unregistered workforce. The effects of fighting shadow economy can also been seen in more employees now being registered for pension and disability insurance. From 7th December, 2013 (when a ban on hiring civil servants came into force) to 20th November, 2016, the number of civil servants was reduced by 7.38%, and the number of workers engaged outside the public sector rose by 12.73% which means that the number of workers now registered for pension and disability insurance also rose by 4.70%. As of 18th November, 2016, the money paid into the pension and disability insurance fund went up, compared to the projections, by 6.7 billion Dinars, i.e. by 2.1%. The revenue from salary contributions, as of 18th November this year compared to the same period last year, rose by 4.2% or by 13 billion Dinars. The goal of the active employment measures, implemented by the National Employment Office, is to promote and stimulate formal employment which, again, has a positive effect on reducing unregistered labour. I would also like to underline the importance of incentives for new jobs for employers who hire people that are not easily employable, and self-employment subsidies. When is the draft Law on Labour Leasing Agencies and Seasonal Employment going to be finished? › The Ministry has to adhere to the relevant procedure whereby we, before submitting the draft law to the Government, have to conduct
DRAFT LAW
DEADLINE The expected deadline for submitting the draft Law on Temporary Seasonal Employment to the Government and the Parliament is July, while the deadline for the Law on Temporary Recruitment Agencies is December next year.
a public debate, and acquire the opinions from the line ministries, the Socio-Economic Council and the European Commission. The expected deadline for submitting the draft Law on Temporary Seasonal Employment to the Government and the Parliament is July, while the deadline for the Law on Temporary Recruitment Agencies is December next year. What is the Ministry going to focus on in 2017? › The entire government considers boosting employment and achieving better quality of life for all our citizens as its primary goals. For next year, the Government has allocated 2.8 billion Dinars for active employment measures, and 550 million Dinars for subsidies for employing people with disabilities. Also, our Ministry has a mission to represent ordinary people, to deal with their concerns and worries, their virtues and flaws. We are going to continue shutting down illegal housing, combating shadow economy and fighting against domestic violence. We have been working on changing the regulation concerning legal protection of families, creating the so-called social cards, social inclusion of welfare beneficiaries into
For next year, the Government has allocated 2.8 billion Dinars for active employment measures, and 550 million Dinars for subsidies for employing people with disabilities
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the main reason for our successful dealing with the issue was the fact that the state was the coordinator of all the said activities which aim is supporting and assisting the migrant population in Serbia.
PROBLEM
BUDGETARY ASSISTANCE Serbia would like to receive a direct budgetary assistance and it advocates a fair utilization of the EU funds although it is not a full-fledged EU member considering the burden it had to carry and its humane approach to this problem.
various activities (education, acquiring skills, and helping them in getting treatment for addictions, as well as their inclusion into the society, the National Employment Office programmes, public works and similar). We are doing all of this while respecting their decision to do this voluntarily and adhering to the relevant regulation because we know that finding employment for them will result in stronger individuals and stronger families. Our priorities in 2017 will be definitely centered around the Chapters 2 and 19 in the EU accession negotiations which pertain to freedom of movement for workers, and social policy and employment respectively. How successful is Serbia in dealing with the refugee crisis for which Europe is yet to find a comprehensive solution? ›Despite the European Union and Turkey concluding an agreement in March 2016, the West Balkan immigration route is still not closed off. The best illustration of this is the fact that, since the beginning of this year, over 108,000 people have illegally crossed into Serbia. Currently, there are over 6,000 migrants in Serbia. We are going to continue implementing a responsible and humane
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policy towards the migrants, while fully respecting their human rights but also being mindful of the interests of the Serbian citizens. The Government did adopt the Reaction Plan which covers the winter period and stipulates protection measures for the migrants in Serbia and protection of our state border. We are going to continue acting in a humane manner, and every man, woman and child in need will get meals, a bed, clothes, shoes, medical and psychological / social support just as before. However, Serbia cannot deal with this crisis alone. The European Union needs to have a vision and allocate more funds to solve the migrant crisis. Serbia would like to receive a direct budgetary assistance and it advocates a fair utilization of the EU funds although it is not a fullfledged EU member considering the burden it had to carry and its humane approach to this problem. We have had several constructive meetings in Brussels where we have been promised additional financial assistance on which we are counting on. All this time we have been a good example how to successfully and responsibly manage the migrant crisis. We have established an excellent cooperation format with NGOs and international organizations, but
Considering that there were quite a few children among the migrants, who came to Serbia without adult supervision, are they an additional burden for our social services? › In 2015, Serbia took care of 136 minors who came to our country without adult supervision. Up to 18th November, 2016, the Centres for Accommodation of Foreign Minors Unaccompanied by Adults in Serbia (located in Belgrade, Niš and Subotica), took in 241 children. So, the burden on our social services did increase because, in all of these cases, we have put unidentified minors without adult supervision into temporary foster care. Also, the social services centres in the areas of transit in Serbia, especially around Preševo, Dimitrovgrad, Zaječar, Belgrade, Kanjiža, Subotica, Sombor and Šid, also act as reception centers for particularly vulnerable groups of migrants.
We have been a good example how to successfully and responsibly manage the migrant crisis
How involved is the Ministry is searching for new solutions for permanent integration of the Roma people from the re-admission? › The Ministry is actively involved in integrated the Roma population. The Ministry had also officially proposed the 2016-2025 Strategy for Social Inclusion of the Roma People in the Republic of Serbia which the Government adopted in March this year. This strategic document stipulates the measures covering education, employment, healthcare, accommodation and social protection. It also stipulates the measures for integrating the Roma population from the re-admission. We are currently working on a two-year action plan for the implementation of the said Strategy which contains all the activities pertaining to the integration of the Roma population from the re-admission. ‹
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WE'LL GET YOU TO THE REAL OPPORTUNITIES ON THE IT MARKET Adecco Information Technology Serbia connects the best IT experts with the right job opportunities in leading IT companies. In an increasingly complex IT market our mission is to understand properly the needs for hiring technology talent and help companies fulfill them
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decco Information Technology Serbia is a team of dedicated consultants specialized in providing recruitment and HR services in the IT industry. "To succeed in the complex world of technology, you need exceptional connections – to the right experts, the right opportunities and the right answers. Our consultants are always at the disposal of both companies and professionals to make these connections, and we do it every single day", Andreja Đorđević, Senior IT Recruitment Consultant and Jelena Mrčarica, Professional Staffing Manager at Adecco say. What can Adecco Information Technology offer to its clients? › As the global leader in HR services, Adecco has a number of specialized daughter companies, including Modis, a team of experts that focus solely on providing recruitment and staffing services for the IT industry. Drawing from their best practices in larger markets, such as the US, UK or Italy, Adecco Information Technology Serbia is operating along the same principles to connect the best IT experts with the right employment opportunities in leading IT companies. Are the companies you support delivering their
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products and services on the Serbian market, or are they looking to outsource some part of their business for foreign markets to Serbia? › Most of these companies are developing software solutions for foreign markets which is the driving force behind such a rapid development of our IT market. However, in the last year, we have noticed a significant increase in the number of IT companies developing their own products on the local market. Companies of this type are prevalent on developed markets and they provide more challenging and interesting projects for IT professionals. According to your experience, how difficult is to find IT professionals of different profiles in Serbia? › The fact remains that there is an imbalance between demands for and availability of IT experts on our market, as is the situation on a global scale. Applying our international expertise and a different, tailor-made approach to the IT market and job candidates in general, Adecco Information Technology has been very successful in providing clients with adequate candidates for a variety of job profiles. Our estimates show that there are around 20,000 IT professionals
A N D R E JA ĐORĐEVIĆ Senior IT Recruitment Consultant
INTER VIEW
J E L E NA M RČ A R I C A Professional Staffing Manager
Hiring in our IT industry has recorded a 7% growth in the last year which puts Serbia in the top 5 countries in Europe with the fastest development in this segment
working on the Serbian market amongst which the demand is the highest for software developers who have experience and skills related to the most widely used technologies, such as Java, .NET or PHP. Of course, other candidate profiles are also in demand, like those that work with the newest or less common technologies. The candidates for these kinds of positions are few and far between. Through having an open communication with companies and by setting joint goals, our team has managed to successfully respond to different demands both in the case when more typical candidate profiles were wanted, and when experts from a narrower niche were requested. Which new trends in IT business have you noticed and how much do they affect further development of the IT market in Serbia? › Hiring in our IT industry has recorded a 7% growth in the last year which puts Serbia in the top 5 countries in Europe with the fastest development in this segment. Still, our growth is somewhat slower compared to the global one. This percentage could be much higher if we had more IT professionals with adequate know-how and skills. One of the ways of overcoming this problem would be to intro-
duce a faster, more agile approach in education and training of IT professionals. This, of course, entails important changes in our education system which could provide a more specialized focus on technologies that the market recognizes as relevant. Most of the IT job candidates in Serbia come from the University of Belgrade (the three faculties in particular – electrical engineering, organizational sciences and natural sciences), as well as from the University of Novi Sad and the University of Niš. Over 2,000 young graduates from these universities have found employment in the last three years. Furthermore, our survey shows that 15% of the people employed in the IT industry have changed companies in the last year which is much higher compared to the 6% average in other industries. The IT industry is very dynamic and we continuously work on the development of this part of our service. Our team consists of specialized experts in this field who fully understand the local IT market and follow the trends in this sector. The goal is clear - to provide companies with support and advice in growing their teams, and candidates with what is most important for them, the right offer for their professional progress. ‹
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SKILLS THAT EVERY SUCCESSFUL HR MANAGER SHOULD POSSESS
In order to become an HR manager, you need, first and foremost, a proper education and the so-called soft skills which make working with people more pleasant and more productive, at the same time B US I N E S S AC A D E M Y Address: Cara Dušana 34, 11080 Zemun, Belgrade, Serbia
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he HR manager position is one of the most important and most responsible positions in any given company or organization. Since HR managers pick the members of the team that is working together towards the same goal means that these professionals are expected to find a proper balance between the company’s ambitions and individual needs of every employee. In other words, HR manager has to make sure that everything is functioning successfully in the company. Here are the 6 skills that every successful human resources manager should possess: EXCELLENT TIME MANAGEMENT Time management is a skill that every good HR manager has to have. If you are a HR manager, you are responsible for many work tasks that are of great importance for other employees mainly their promotion, work environment, protection of their rights etc. Hence, it is important that you perform your job duties on time and within the set deadlines. By doing so, you’ll avoid stress and become a good example to other employees. MULTITASKING IS NECESSARY It is exceptionally important for HR managers to do several things at the same time and easily shift fo-
cus from one topic to another. If you want to be an HR manager, you have to be prepared to conduct several interviews with job candidates in your company, to work on planning of long-term strategy, organizing team building and solving employee problems on the go. NEGOTIATION AND MEDIATION As an HR manager, you’ll often find yourself in an ungrateful position of a mediator between two sides with opposing views and goals. Hence, the negotiation skills play a big role in this profession. Your goal should be to keep both sides happy with the end result, i.e. for an employee to be satisfied with the working conditions while, at the same time, being expert at performing their tasks within given deadlines. This is the only way to create a pleasant atmosphere and you are the sole person responsible for it. ALL FORMS OF COMMUNICATION Communication skills are one more thing that a person who wants to be a successful HR manager has to possess. This is not only related to verbal skills, but also to the way in which you communicate in writing or present ideas in front of a large group of people. Let’s say that you are opening a new vacancy. Where are you going
Web: www.biznis-akademija.com E-mail: office@biznis-akademija.com
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It is exceptionally important for HR managers to do several things at the same time
to place a job ad? How are you going to describe job duties? How are you going to talk to candidates? All of these nuances can greatly affect your work which is why you should never underestimate good communication skills. DISCRETION AND EMPATHY Every job, that entail directly communicating to people, entails a well developed empathy. If employees feel like sharing their problems with you, it will be easier for you to resolve them which is why it is important for you to earn their trust. On the other hand, it is your duty to remain discreet. Relations with employees have to be strictly professional and you have to maintain a professional attitude. By doing so, you will be a good example to others.
SO FT SKILLS
DREAM If you want to work in the HR department of a company that employs hundreds of people, or maybe you dream of working in a highly specialized HR agency, BusinessAcademy will give you all the knowledge and soft skills you need that will guarantee success.
BEING PERCEPTIVE WILL LIGHTEN YOUR WORKLOAD Are you able to properly assess people at the very first interview? In big companies that employ hundreds of people, job interviews are conducted almost every week. If, during the very first interview with a candidate, you are able to perceive whether the candidate is sincere, honest and qualified enough for the advertised position, you will save yourself a lot of time and work because if you are wrong, you will have to re-do the entire selection process. As you can see, the job of an HR manager is very challenging and requires many special skills, good communication and dedication. However, with the training provided by a prestigious business school like BusinessAcademy, you will acquire all the skills that you need to become a successful HR manager and to advance in your career. ‹
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FROM PEOPLE FOR PEOPLE
Good HR processes can help with the implementation of the KPI organization, and when they do, than HR performs its strategic function
E XI S T E N C E
OUR PEOPLE For us, where contemplation and creativity is what sets us apart, it is our people. And this has been true for almost 20 years, which is how much I&F McCann Grupa has been in existence.
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or me, the HR sector is an important, strategic service, as well as support service. Different organizations have different HR sector set-ups. In some companies, HR is still a payroll, hiring and laying off service”, says Maja Gabrijan, HR Director of I&F McCann Grupa in response the question of what makes this group of agencies different and how can a small, regional HR department respond to the demands of different agencies in our region.
A big part of what the HR development sector does contributes to accomplishing the key performance indicators (KPI) or goals of a certain organization. However, very often HR is not aware, or sure, or even capable of contributing to this. Or are we wrong? › We, in I&F McCann Grupa, have one regional office in Belgrade which goal is to implement the same standards and procedures that people on different markets experience employers the same. There is five of us in the HR department and we are working with a big number of agencies with some having as many as 70 employees and some less than 10. Maybe it is this difference in agency structure that is the most interesting aspect of our business. And let me try to answer your question regarding the KPI... Apart from the financial and measurable value, each organization also produces the immeasurable value. HR is somewhere in
INTER VIEW
M A JA GA B R I JA N HR Director of I&F McCann Grupa
Intelectual capital is today the most important asset for any company
between. HR can be an excellent tool for understanding the needs of employees and supporting them.If an organization manages to strike a balance here, it will maximize its results. This is not simple to do, but I feel it is necessary. The role of each person in the structure of an oragnization has to be geared towards accomplishing KPI, including the entire HR department. The link between HR responsibilities and attained results compared to the responsibilities of line managers and their achievements is always more implicit than explicit. › I would say it is a dual role. On one hand, you have to keep track of business objectives and KPI, while, on the other, you have to care for your employees and be a fair employer. You can always calculate how much investing in people, or quality selection, or keeping good employees with the company is directly correlated to every financial success. Intelectual capital is today the most important asset for any company and I thinhk that the role of the HR sector, focusing on people, is the only one that will be profitable in the long term. How would you describe your HR management? How much do you invest in employees, in which way do you educate them, how do you find them and how do you keep them with the company? › We are a group of agencies that
employ people of different profiles – from creative people to financial experts. Searching for the best in every field is certainly very challenging. We use all the tools – advertisements, referrals and head hunting agencies. Most of all, we like referrals that we get from employees. We think that that has a special value because it is your brand ambassadors that have concluded that the company is a good employer. In our profession, it is vital to acquire knowledge daily. Advertising, planning and media buying, digital segment – all of this is rapidly changing and keeps you on your toes. You have to constantly come up with a new and different approach, and have a new angle that will bring better visibility for the client and better connection to consumers. Our great advantage is that there are many different know-hows in agencies that are cooperating together, there is a partnership relation and, of course, we often try to come up with entirely new knowledge. HR team is constantly searching for the best of the best to teach us new techniques and know how, and refresh what we already know. On the other hand, we have partners that are tried and tested and that we work with regularly. Education is a very important tool for keeping the employees and their growth, but it is different today than what it was five or ten years ago. Today, there is an added importance of the individual coaching approach and this is what we practice. Coaching makes it pos-
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sible to give an individual all the tools to find the right answers in a relatively short period of time, and to find another way, and even new motivation to change. This entails individual work with the person, while helping them to accomplish better results and properly use their capacities and intersts through guided interviews. Today, more than ever, change and capacity for change are the prerequisites for growth and development. Today, organizations have internal coaches. Are you going to do the same? › That is a very interesting concept for big companies and can yield excellent results. The most efficient thing is to establish coaching culture where employees will learn how to be internal coaches themselves, and also draw out the best out of every interlocutor. Because of our internal structure, we have decided to use external coaches, but we have been guiding the management to develop and perfect themselves in this direction. People management can be very efficient if managers possess the knowledge on how to use different techniques and thus bolster their biggest strength – their employees. In which way did the overall digitalization change HR processes? What is HR like in digital era? › HR is very fast and even a little bit de-personalized. Digitalization changed everything and will continue to change everything. As far as HR processes go, one of the biggest changes was using social networks for recruitment or getting quicker in touch with the desired employer. Today, you need to process more CVs in order to get to those infamous top three candidates that completely fit the required position. This is the reason why our office has a regional reach and often conducts Skype interviews. Another flaw with this speed is general lack of focus. And with duller focus, more mistakes are made in recruitment, for instance. Through HR, we try to use what digitalization has on offer, to automate the employee evaluation process, to open up all communcation channels, to be present even in those places where we can be phys-
ically present, to interview people from three different towns in the same day and laugh at all situations like we see them for the firs time – like trying to set up a computer screen if we have interviewees from two different towns. We also try to react in the best way possible when a candidate shows up for our Skype interview in a bathrobe. HR is faster and more fun because of the technology but we really have to be careful not to make it superficial. Direct human-to-human communication is still the most important. It is really not like in George Clooney’s movie ’Up in the Air’ when he fires people left and right over Skype. What is the crucial tool in creating a highly efficient organization? › I believe that different professions have different answers to these questions. Some would say that that is a good work process, some good control process, and some the latest technology. For us, where contemplation and creativity is what sets us apart, it is our people. And this has been true for almost 20 years, which is how much I&F Mc-
Our employees are our best tool and our biggest strength
Cann Grupa has been in existence. Our employees are our best tool and our biggest strength. As a group we are strong as much as each and everyone of our employees is strong, as well as strong as their cummulative total. I am confident that, in our profession, this will remain the biggest value that should be invested in. Also, I would say that efficiency will not be the measuring tool for company's success. Today, self-actualization is one of the key topics, as is measuring the level of happiness in an organization. When you put this into the equation of company's survival, than it becomes clear that only those companies who respect their employees, listen to them and invest in them will survive. Only in this way, they will be able to constantly increase their market value. I am referring both to individuals and organizations here. Agencies are somewhat quirkier than other, more rigid systems. Agencies foster freedom, imagination, creativity, and individualism. Bearing in mind all of that we have an even bigger task ahead of us that we are going to enjoy in when building such systems. ‹
HR team I&F McCann Grupa
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GLOBAL PREMIER PROVIDER OF EXECUTIVE SEARCH HR SOLUTIONS
We are the global premier provider of executive search HR solutions, with services ranging from recruitment to executive search, top-management recruitment, strategic management assessment, executive coaching, training and human resources capital advisory
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The Search Begins We initiate the search process on a client’s behalf immediately upon receipt of authorization. We strive to complete most assignments within specific budget allowances and time limitations, and with speed and accuracy. Once the search process is initiated, it is our policy to quicken the pace, fre-
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Comment
SA ŠA MILOŠEVIĆ Director, Link Consultants International d. o .o
Making an Offer Upon completion of the interviewing process, we work closely with the client in developing the strategy of an offer to the selected candidate. Follow-up Process Following a placement, we make regular periodic contact with both the client and candidate to ensure that the transition has been smooth and to assist with any queries or issues outstanding. HR ADVISORY Our international experience, commitment to excellence of services are our reference for the successful cooperation with our clients. We offer HR Advisory serviced that includes development of HR Strategy and Implementation though several phases - Audit of the current state of working units, - Proposal of structuring new HR organization
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BUSINESS TRANSFER – SITUATION IN SERBIA Many small and medium, and large also, enterprises in Serbia will soon face the challenges of transferring ownership from the founder to the second generation of owners which could become a make or break point for many companies
sion. In February 2017, the eight generation will embark on a two-year-programme of professional development. Furthermore, through our 2040 Club, over 80 second generation members have been exchanging experiences from their family-run businesses and have been establishing business contacts for decades to come.
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dizes SEE has conducted a survey about this process and the need for support that these companies have during the ownership transfer process. The book 'Development of Family Business', written by John Ward and published by Adizes SEE in 2006, is the first step in dealing with the topic of family companies and business transfer in Serbia. In preface it is underlined the fact that all privately-owned companies are facing challenges of family run businesses which the owners become aware of only when their children grow up. In the minds of business owners, the term family business was usually associated with artisan and trade stores. Today, this image has changed and the transition of family companies is now associated more with small and medium enterprises. In practice, this transition is also heavily felt by owners, successors, families and large companies alike. FOUR SEGMENTS OF PREPARATION To prepare a company for a transfer entails four segments. The first is to prepare the company and make it as professional as possible so that it can operate without the presence of its
founder. The second is to prepare the founder, i.e. to determine what he would do when he retires. The third is to prepare the successors, in a sense that they have a proper education ,and to enable their gradual involvment in the family business. The fourth segment is preparing the family, namely who is going to inherit what, what would happen if one child worked and the other didn't, deciding whether the company should be sold or not etc. The founder is the one who needs to instigate the process of transferring from enterpreneurship to professional management of the company. We are proud of the fact that we have carried out many successfull professionalization processes of family run businesses along with the support of conscientious and responsible owners. The founder also needs to decide when and how he is going to relinquish the running of the company. He is also responsible for preparing his family. The fourth – preparing the successors – is not something that he is responsible for. Everyone who has decided to ask Adizes to help with becoming managers under the Adizes Leadership Programme, has mastered the required skills and tools of managerial profes-
BORIS VUKIĆ Partner at ADIZES SEE
FACT
WHAT WILL HAPPEN TOMORROW? The European Union documents, which speak about the importance of the proper transfer of ownership in small and medium enterprises, state that 450,000 companies in the EU, which have a total of 2 million employees, undergo the business transfer process every year. The estimates have shown that close to 30% of those companies do not have a proper approach to the transfer which can jeopardize around 600,000 jobs. The problem of business transfer in Serbia is exacerbated by the fact that there will be a huge number of business transfers in the years to come unlike in the developed West European countries which have a long tradition of entrepreneurship. Ser-
bia doesn't have the developed support mechanisms for companies in the business transfer process, and there are no relevant statistics covering this segment, or successfully implemented business transfer processes in small and medium enterprises. Adizes SEE is currently conducting a survey into the business transfer processes in small and medium enterprises in Serbia. The aim of the survey is to ascertain the number of companies which founders are over 55 years of age, their attitude towards business transfer, the way in which they are planning to implement the process, and the need for support during the process. Based on the survey analysis, we are going to come up with certain conclusions and recommendations for establishing a support system, and devise activities and measures that would contribute to the SME proprietors successfully facing the challenges of business transfer. The established support mechanisms will directly lead to more companies becoming sustainable and continuing to grow even after their owners, who had been running the business successfully for years, withdraw from them. ‹
PROCESSES We are proud of the fact that we have carried out many successfull professionalization processes of family run businesses along with the support of conscientious and responsible owners.
Members of the 2040 Club at a meetting in Mostar, April 2016
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THE SECR ET
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Formula of Human Resources