Aid agencies could benefit from ‘pay-cations’

Sunday Business Post – Recruitment section – September 13 2009

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By part-funding gap year style working trips around the world, the government could help recent graduates through the economic downturn and boost exchequer funds, according to the organiser of this year’s Working Abroad Expo.

Stephen McLarnon, managing director of expo organiser SGMC Group, which takes place later this month, called on the government to consider implementing a part-funded ‘pay-cation’ scheme to support younger job candidates with limited opportunities in the domestic labour market. Such a scheme would benefit the economy by building on the professional experience and skill-sets of younger candidates, and boosting the government’s coffers.

‘‘We are not advocating that the government completely fund a gap year, but offer a fund-matching system for those considering taking a gap year,” said McLarnon. ‘‘A gap-year matching scheme for under-25s, offering up to €5,000 per person within a 12-month period, would offer immediate savings to the growing social welfare bill, while also assisting young unemployed people to gain new experiences and return to Ireland with something to offer.

‘‘It would keep people active, which is crucial, and it would give people a taste of life in less-well-off countries.”

A similar government scheme, under consideration in Britain, is proposing to fund up to 500 participants in overseas development projects. Under the scheme, participants would be required to raise funding of stg£1,000 (€1,140) and pay for their own flights and vaccinations.

‘‘The fact that Britain is looking at something similar gives the concept credibility,” said McLarnon. ‘‘Similar precedents exist here in Ireland, with the ESB earlier this year taking on approximately 300 apprentice electricians to help them qualify. PwC has offered graduates €5,000 to defer their entry into the firm until 2010.”

If properly managed, McLarnon believes such a scheme could raise vital funds for the exchequer.

‘‘An unemployed person, under 30 years of age and currently receiving unemployment benefit, gets approximately €10,000 per annum,” he said. ‘‘A fund-matching system, capped at €5,000,would immediately save the exchequer €5,000 per person. The government could include a 12-month exclusion from receiving any further social welfare benefits for participants in the scheme.”

The British government is piloting a gap-year programme in association with Raleigh International, a charity specialising in voluntary overseas placements. An Irish equivalent could target Irish organisations with overseas connections, McLarnon said.

‘‘The Niall Mellon Township Trust has done a fantastic job in South Africa, but is now suffering with less available funds from volunteers,” he said. ‘‘The trust, the government and Fás could come together and use the project for training apprentice plumbers, electricians and brick-layers. It would get nearly qualified trades people off the dole, qualified under the instruction of qualified trades people who have also lost their job, while also doing something worthwhile.”

‘‘NGOs such as Concern and Goal are being badly affected by cuts to their overseas aid budget,” McLarnon said. ‘‘Many of these organisations are laying off staff and closing centres in much needed areas. The government could again part-fund professionals to work with these organisations while diverting them from the ever-growing dole queues.”

McLarnon said that there had been a significant increase in the number of Irish people looking abroad for work in recent months.

‘‘The number of young people travelling overseas has seen a substantial jump over the last 12 months, with a 33 per cent increase – an extra 5,500 people – in those going to Australia on working holiday visas,” he said. ‘‘This takes the number currently in Australia on annual working holiday visas to a record high of over 22,000. Figures for Canada, New Zealand and other countries are not available, but the total number could easily exceed a further 20,000.”

Other destinations also offer employment opportunities, McLarnon said.

‘‘Opportunities exist all over the world. There is an aging population in Canada, Australia and New Zealand, so they have to import a huge amount of labour,” he said. ‘‘The US is experiencing its own unemployment issues, but parts of Latin America such as Brazil are enjoying some growth.

‘‘Canada has avoided much of the financial crises and is very much open for business. Britain is largely expected to come out of recession in the coming weeks, joining Germany and France.”

McLarnon said that the healthcare sector, in particular, offered global opportunities for skilled Irish candidates.

‘‘Health recruitment has bucked the trend globally, except in Ireland, where the HSE is not renewing contracts and a recruitment freeze largely remains in place,” he said. ‘‘With this in mind, we have 11 British NHS trusts exhibiting at our show in Dublin in our dedicated medical and nursing zone. It is widely known that there is a surplus of nurses in Ireland, with overseas employers queuing up to recruit them.”

There is also overseas demand for qualified Irish engineering and technology professionals, said McLarnon.

‘‘Fisher & Paykel, the big home-appliance manufacturers, are exhibiting at our Dublin show, looking for all the various different types of engineers, including automotive and quality assurance people, for New Zealand. People are starting to get back into R&D as the global economy revives,” he said.

Some candidates, who would otherwise head overseas in search of work, have unavoidable commitments in Ireland, McLarnon said.

‘‘Generally, individuals with a mortgage or young family will be less mobile. Those with mortgages in negative equity will be reluctant or unable to sell their properties,” he said. ‘‘Renting their property out is difficult, creating an economic trap for those that want or need to work abroad.”

McLarnon said candidates who had only just graduated had a tough time securing working visas for other countries.

‘‘Workplace experience is very important in getting working visas for Canada, Australia or New Zealand. People with a couple of years’ working experience are generally better placed to secure a visa,” he said.

Candidates with foreign language skills and travel experience are best placed to secure work overseas.

‘‘Huge opportunities exist in continental Europe for people with a second language. Having travelled before is not a biggie, but employers like to see people who have lived or worked abroad previously as, chances are, they will settle quicker,” said McLarnon.

Now in its fourth year, this month’s Working Abroad Expo will have more than 50 exhibitors, including government bodies, migration officials and recruitment agencies. Relocation experts will offer advice and assistance on starting a new life abroad.

‘‘These are undoubtedly challenging times, but opportunities do exist, and the Working Abroad Expo is designed to give people options, separate the myths from reality and give people the full facts, information, paperwork, contacts and job options they need for starting a better life abroad,” said McLarnon.

‘‘Employers and recruitment specialists will outline job opportunities in nursing, social work, engineering and various skilled trades in Canada, New Zealand, Australia, Russia, China and the Middle East,” he said. ‘‘There will also be seminars advising Irish tradespeople about meeting the increasingly high standards of the Australian construction, engineering and hospitality industries.”

The Working Abroad Expo takes place on September 19 and 20 in Dublin’s RDS and the Europa Hotel in Belfast on September 22 and 23. Tickets for the Dublin event cost €10. For more information, or to book a place, visit www.workingabroad.ie

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No break for travel industry

Sunday Business Post – Recruitment – Aug 23 2009

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A spate of redundancy announcements has rocked the Irish travel industry over the summer months, traditionally the busiest period for holiday-makers at home and visitors from overseas.

Last week, Sunway Holidays announced plans to close three outlets in Dublin, with the loss of nine jobs. The move followed 95 job losses at Budget Travel, which announced that it was to close 14 of its 31 Irish outlets earlier this month. The high-profile staff protests that followed Thomas Cook’s move to halt Irish operations, with 77 redundancies, pointed to wider unrest in a sector hit hard by the fall in consumer spending.

The numbers employed in the travel business have fallen significantly in the last year, according to Simon Nugent, chief executive of the Irish Travel Agents Association (ITAA).

‘‘The pattern this year has been about companies shedding staff, not recruiting,” said Nugent. ‘‘While the leisure travel side has dropped away a bit, the corporate travel side has dropped significantly. I would say pretty much all ITAA member firms have reduced their staff since last autumn.”

Falling employment According to the most recent available CSO figures, overseas visits to Ireland fell by 114,000, or 15 per cent, in June compared to the same month last year. Eamonn McKeon, chief executive of the Irish Tourist Industry Confederation, said further job losses were inevitable.

‘‘We reckon that, overall, jobs in the travel and tourism industry fell by about 10 per cent last year from a peak of 310,000,” he said. ‘‘Our ‘guesstimate’ is that it will reach about 250,000 this year, based on what we hear from our members. I am not aware of any sector of the travel or tourism industry, with the possible exception of family-run B&Bs or farmhouses, which has not had to let people go. The numbers are down everywhere, from hotels and restaurants to cruising companies and car rental firms.

‘‘The Dublin Airport Authority has been talking about rationalisation, as have the airlines. Every sector either has let staff go or did not take on the additional summer staff they would normally have taken on.”

Valerie Sorohan, marketing manager of Jobs.ie, said there had been a noticeable drop in the number of travel and tourism positions advertised online this year.

‘‘Jobs.ie has five different categories of travel and tourism jobs: chef jobs, hotels, pubs, bars and clubs, restaurants and catering, and travel and tourism,” said Sorohan. ‘‘This year, the number of jobs posted has decreased across all five categories by 50 to 70 per cent year-on-year.”

Study and training

Nugent said the shortfall in available positions had prompted candidates in the sector to consider new training and study options. Overseen by the ITAA, the Travel Professionals Skillnet has introduced several new courses this year, including a DIT-accredited Travel Professionals Higher Certificate and shorter training programmes focused on specific aspects of the travel business.

‘‘The Skillnet has been extremely important, as it allows us to improve staff skills and help travel companies put their best foot forward,” said Nugent. ‘‘Consumers have become more demanding, and people working in our sector now need an encyclopaedic knowledge of routes and destinations, the legalities and complexities of travel, visas and passports and insurance issues.”

McKeon said upskilling was a viable route for candidates unable to secure work in the sector.

‘‘There are lots of terrific courses available from Fás, and more directly tourism-related ones from Fáilte Ireland,” he said. ‘‘Some are distance learning, some are six weeks, others six months. There is something there for every skill. In all jobs, even craft-based professions, there is always a further level you can go to.

‘‘Courses that teach supervisor’s skills are a relatively attractive option for people. It is hoped that they can come away with a better CV and, when normal times return, they should be more employable and able to command a higher salary.”

Related sectors

Sorohan urged candidates to consider looking for work in a new or related sector or profession.

‘‘In these sectors, customer service is of huge importance, and people can perhaps transfer their skills Individuals could look at customer service jobs, waiting staff positions or others,” she said.

Nugent said other consumerfocused sectors, such as retailing or marketing, could offer employment opportunities to individuals with a professional background in travel or tourism.

‘‘To work in a travel environment, you have to be an extremely good ‘people person’ with a broad range of knowledge,” he said. ‘‘Having worked in the travel sector is very good training for any customerfacing role.”

Nugent said many of the candidates who have lost their jobs as a result of the downturn in travel and tourism were relatively recent arrivals to the country.

‘‘In 2006 and 2007, our members found it more or less impossible to recruit the staff they needed here,” he said. ‘‘They found very talented travel agency staff abroad, and lots of people had good experiences employing them. There is certainly then some mobility in the sector.”

Sorohan said the number of candidates applying for positions posted on Jobs.ie had fallen.

‘‘This January, employers could have expected to receive 66 applications, but in June this year that went down slightly to 45,” she said. ‘‘That would suggest that non-Irish workers unable to find a job in these industries this year have moved to seek employment elsewhere.”

Protecting jobs

Nugent said employers in the sector were keen to protect as many jobs as possible.

‘‘Companies have negotiated reductions in salaries and different part-time or other working arrangements with their staff,” he said. ‘‘Staff are entirely aware of the realities of the sector and have been quite understanding.”

Staff unhappy with the redundancy terms offered by Thomas Cook, following the closure of its Irish branches, with 77 redundancies earlier this month, staged a high-profile sit-in at the company’s Grafton Street branch.

However, Nugent said most redundancies in the sector were proving less contentious.

‘‘We provide a legal advisory service for our members that covers employment law and personnel management and doing right by your staff,” he said. ‘‘It is a difficult area, but in most cases things tend not to become confrontational.”

Further redundancies
McKeon said that, with no end to the downturn in sight, employers in the travel and tourism sector could announce further redundancies.

‘‘Travel people tend to be optimistic and hope that a recovery will come,” he said. ‘‘The problem is that we are now entering the off-season, and companies will not have built up the strong cash flows this summer to get them through next winter.

‘‘Huge discounting has been great for the consumer, but has only kept things ticking over. The lack of availability of credit is really going to test the survival capacity of lots of good businesses this winter.”

Despite this, the number of hospitality positions advertised on Jobs.ie in the first six months of the year were up on the same period last year.

‘‘From January to June, there was actually an increase in jobs being posted across all the five travel and tourism sectors by an average of 44 per cent, which is promising,” Sorohan said. ‘‘It suggests that these areas were hit hardest by the recession last year, but this year there are signs that each of these areas are picking up.

‘‘At present, the hotels category has the most number of jobs listed, and chef positions are also quite popular.”

Government cuts

Last month’s Bord Snip Nua report recommended a €12 million cut to the government supported Tourism Marketing Fund and a €15 million slice off Fáilte Ireland’s budget.

McKeon cautioned the government against implementing either measure.

‘‘The only thing that will keep jobs within the tourism sector is if visitors keep coming, so governments need to keep their marketing budgets in foreign markets,” he said. ‘‘It is a viciously competitive world out there, and if Ireland disappears from websites, trade promotions, media advertisements and all of that, we will lose market share.”

McKeon said discussions were under way with the government to give tourism companies access to the Enterprise Stabilisation Fund, which was announced earlier this month.

‘‘Foreign tourism is an export business, although domestic tourism is not,” he said. ‘‘We would be anxious to have the scheme extended to the travel and tourism sector.”

Future recovery
Nugent said the travel industry would recover quickly, once the wider economy stabilised.

‘‘What is good for the economy at large is good for the travel sector,” he said. ‘‘If the overall economy gets righted, it will kick-start growth for travel companies.”

When it emerges from the recession, Nugent said the sector would be leaner and more technologically advanced.

‘‘Travel is a very dynamic sector, and has been long before the recent fast economic growth and then sudden economic decline,” he said. ‘‘Our members are transforming their business models all the time and investing in the online capacity of their staff. ‘‘That is the way the sector is going.”

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Hotel reopens with an emphasis on true quality

Sunday Business Post – New Business Section – Apr 12 2009

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The downturn in the hospitality sector has afforded an unlikely opportunity for two entrepreneurs. For Patrick Dillon and Paul O’Shea, the opportunity to set out on their own came earlier this year, with the closure in January of the Quality Resort Hotel in Killarney, Co Kerry. Dillon was general manager of the hotel, while O’Shea was financial controller.

Following the closure, the pair agreed a lease deal with owner Hepton Developments to take over the majority of rooms, reopening the facility on the Cork Road on April 9. The new hotel will continue to trade as Quality Resort Killarney, offering the same food, beverage and leisure facilities as before, according to Dillon, who is now managing director of the hotel.

Despite its recent failure, Dillon is upbeat about future prospects for the hotel. The business strategy would, he said, be to focus on the Irish market, rather than seeking to attract overseas visitors.

‘‘Our key strategy is to focus on our core market, which is the Irish family holiday market. We are going to be chasing the local market in a big way, whereas before we were part of an international brand. Our strategy is to provide similar facilities as we did previously, but giving extra value,” he said.

Dillon said that the re-opening of the hotel created 60 jobs, while up to 200 positions would come on stream in the high season.

‘‘We had an open day for staff, and advertised online and on the Fás website. A lot of people have been handing CVs in at the front door,” he said.

Under new management, Dillon said the hotel would contribute more than €3 million to the regional economy this year alone.

‘‘This will generate more than €2 million in wages, and another €1 million to mostly local suppliers. Then there is the knock-on effect for bars, restaurants and other businesses around Killarney,” he said.

While Quality Hotel previously operated with a mix of hotel rooms, holiday homes and apartments, Dillon said the new business would operate on a more streamlined basis.

‘‘We are opening with 199 bedrooms, so it is a materially different business to what was there previously,” he said.

O’Shea is finance director of the new operation. He said the move to agree a deal with the hotel’s owners, Hepton Developments, following the collapse of the existing operator Carvanna Properties, was swift and decisive.

‘‘We knew other prospective operators were making proposals, so we said, ‘why not ourselves?’,” he said. ‘‘We believed that we knew the business better than anybody else, we had the figures and we started putting a business plan together. We approached the landlord with what we thought was a viable rent compared to what was being paid before, taking into account that we were not taking some of the rooms.”

Dillon and O’Shea have formed a new management company, Laethanta Saoire, to run the hotel. Dillon owns 75 per cent of the new company, with O’Shea owning the remaining 25 per cent. ‘‘We had to put in a certain amount of money ourselves. The banks were fairly supportive, as we had a realistic business plan. We were not looking for a large loan to redecorate, it was mainly working capital,” he said.

The new company is targeting 40,000 room nights this year. It plans to utilise its database of previous customers to drum up repeat business. ‘‘Forty-five per cent of our customers were repeat customers.

We will be doing a very large mail-shot to all of our past guests, along with general advertising.

‘‘The key message is that we are open again and ready to welcome people back.” Dillon said the hotel would compete on the basis of value for money, rather than offering below-cost room rates. ‘‘We do not want to create a business that is not sustainable. There are a lot of hotels out there, particularly in Dublin, slashing rates,” he said.

‘‘This is great in the short term, but will their businesses survive? A core part of our strategy is giving extra value to our customers so that they return.” Dillon, who has been in the business for 20 years, advised entrepreneurs in the hospitality and tourism sector in Ireland to keep costs down and prices realistic.

‘‘It is a difficult time for all businesses, and the key thing is trying to manage costs. You need to spend every penny you have very wisely. You need to have a realistic business plan and know your market. There is no point doing something one year that cannot be sustained after that. It is about being sensible,” he said.

Dillon said he expected the number of overseas visitors to Ireland to fall this year. He said this would be balanced out by the projected increase in cash strapped Irish holiday-makers opting for locations at home. ‘‘The forecasts are that the overseas market will be back by 8-9 per cent this year. The indications are that the home holiday market will be stronger this year, and that will be great for us,” he said.

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Career breaks can keep everyone happy

Sunday Business Post – Recruitment Feature – Dec 7 2008

Career breaks are an increasingly popular way to cut payroll costs while keeping ties with valuable employees, writes Dermot Corrigan.

Career breaks are on the table for many companies looking to move staff off the payroll until the economy rights itself.

Permanent TSB (PTSB) recently announced a scheme to incentivise staff to take a two or three-year career break or voluntary sabbatical. Employee reactions to the scheme have been broadly positive, according to a spokesperson for the company.

The financial services company offered employees up to €20,000 to take a two-year break and up to €35,000 to take three years off. The total sum was offered as an upfront payment to a maximum level of half the employee’s annual salary.

“It has been received extremely positively,” said the spokesperson. “Staff see it as innovative, and its voluntary nature is attractive. We have received feedback over the last couple of years that staff would appreciate more flexible work arrangements; they see this as an option which meets this need.”

While not releasing any figures on the take-up to date of the scheme, the spokeswoman said the company was happy with the number of applications thus far.

“We have received plenty of applications from all across the organisation,” she said. “There is a mix of all employees applying ranging from three to over 20 years service, male and female, both Irish and non-nationals – reflecting our employee base.”

“There is also a good balance between the two and three year option, depending on what people are planning to do during the career break.”

Innovative approach
Janet Wallace, HR solutions consultant with Russell Brennan Keane, said that the PTSB offer provided an innovative way to managing staff costs in a downturn.

“It is a good way for companies to reduce their payroll costs over a certain period, while ensuring you can get your skills back for when you need them in two or three years time,” said Wallace.

“You are not losing the investment you put into them from a recruitment and training point of view, and you keep the knowledge they have built up about your company. It is a lovely option to be able to give if you are an employer.”

While those who take up the PTSB scheme are guaranteed a role in the company, similar to their current job, upon their return, Wallace said not all companies could offer similar promises in the present economic climate.

“That is a risk that individuals considering a career break have to take,” she said. “However, in the current climate there are other people who are not sure if their job is going to be there in two months time, never mind two years. It depends on the employee and the situation they are in. Some people might have a partner who would be able to keep them financially secure.”

Wallace said candidates who did decide to take a career break, did so for a variety of reasons depending on their own circumstances.

“Over the past few years traveling has been a massive one for people, and especially younger staff might pick up on this,” she said. “Other people might want to go back and do further studies. Some other people might have family commitments, they might have young children and would like to take a couple of years out, knowing they had the security of a permanent job to go back to.”

Volunteering Derek Bambrick, business manager with recruitment firm Abrivia, said employers generally looked more favourably on staff who use their time out of the company to develop new skills or experiences.

“Employers often give career breaks to people who they value, but if they offer a career break they like to see the individuals putting something else on the table when they return,” said Bambrick. “If it is well planned and constructive, a career break can be advantageous to any employer.”

Bambrick said Abrivia had recently placed a candidate in a senior financial services position on his return from a two-year career break.

“This gentleman was an accountant and had six years experience post qualification,” said Bambrick. “He and his wife, who is a pharmacist, were just married. He decided he wanted to do some voluntary work, so he joined up with VSO (an international development charity) and worked in an international development role in Africa. He went away with numbers in his head, but he came back with very strong project management skills. He had the skills of a sales manager, and had the life experience to go into a country management type role.”

Upon his return, Abrivia was able to place the candidate with his old company – and in a more senior role.

“When he came back he had to renegotiate another contract,” he said. “He was so well thought of that they nearly created a job for him. As he had a whole new list of talents, and a new skillset, his career was given a boost.”

In general, however, it is not typical for employers to keep positions open for staff who leave the company for a year or more, Bambrick said.

“It depends on the relationship you have with your employer,” he said. “If you come back and reapply for a job, you will be in a good position with the new skills and experiences that you have picked up.”

Secure new role
Bambrick said those who take a career break, without any guarantee from their current employer, could find that new employers are interested.

“Somebody might want to do voluntary work, and another person might want to go to university or something like that,” he said. “But as long as they can show value to the job market, and attain new skills and keep up with the existing skills they have, they will do very well.”

Bambrick said more companies were introducing career breaks as part of outplacement programmes and redundancy packages.

“Some people choose to take a career break and do something else for a while,” he said. “We can do psychometric testing and give general advice on their options.”

Case study: Tina Kelly – a ‘better employee’ after her one-year career break

Tina Kelly, a consultant with recruitment firm Sigmar, recently returned to Ireland following a six month career break in Australia and New Zealand.

“I had spent a number of years in recruitment and had seen some very busy times in the market, and I felt that I needed a bit of a break,” said Kelly. “Some personal changes had also happened in my life at the time. I sat down and talked with my manager, she was very receptive to it, and I decided that I could take a year out and then come back after the year. I was told my job would be here when I came back.”

“I took a year out from Sigmar, and I went travelling to Australia and New Zealand, and then I spent some time at home here,” Kelly said. “I had a great six months away, and then I was back in Dublin for six months.”

Kelly said her experience differed significantly from the typical post-university gap-year trip.

“I was a little bit older than most people who take a gap year,” she said. “I was in my early 30s so I had some money behind me. I was able to do all the backpacking things, but I was also able to go for meals, get my hair done, and still maintain a good lifestyle.”

“I really enjoyed it, I met all kinds of different people, saw things I would not normally see, and I came back much more interested in my work and refreshed in how I looked at things. I was very motivated and I was happier in myself, and therefore a better employee.”

A growing number of candidates in Ireland have career breaks on their CVs, said Kelly.

“Quite, often I would come across candidates who have taken a career break,” she said. “It seems to be becoming a more common choice for people of all age groups, and all types of professions and careers.”

“You get a real mix of people taking career breaks for all kinds of different reasons. Sometimes it is for family reasons such as someone being sick, other times they want to travel. People often study while they were off, and voluntary work would also certainly come into it.”

“It depends on the individual. Some people come back and have decided that they do not want to return to their old job, and decide to try something different,” Kelly said. “Sometimes a change has occurred while they were away, and they now want to try something new. But a lot of people would look to get back into the same kind of role as before.”

Kelly said that employers were not generally worried about gaps in a candidates work history on a CV, once the candidate could explain how they used the time beneficially.

“I do not think career breaks harm people professionally,” she said. “I have never come across an employer who would have a problem with a candidate who has taken a career break.”

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