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Framework of Actions for the Lifelong Development of Competencies and Qualifications - Cyprus
Source: European Union
In March 2002, the European social partners adopted a framework of actions for the lifelong development of competences and qualifications, as a contribution to the implementation of the Lisbon strategy.
Actions taken at national level
• to identify and anticipate competences and qualifications needs
In Cyprus this is primarily done through the Human Resource Development Authority (HRDA), as far as the adult population is concerned, i.e. the target group of interest to employee and employer organisations.
The HRDA’s mission is to create the necessary prerequisites for the planned and systematic training and development of the human resources of Cyprus. The main strategic objectives of the HRDA for 2004-2006 include inter alia:
- Participation in the formulation of a national strategy for the promotion of lifelong learning.
- Adjustment of the training system to the needs of the labour market with the improvement of the quality and effectiveness of training provided.
- Formulation of an integrated policy and promotion of the gradual establishment and operation of a System of Vocational Qualifications in Cyprus.
- Conducting research studies and surveys.
The social partners in Cyprus (employer and employee organisations) participate in the Board of the HRDA and hence in the decision-making process of the Authority which is a semi-state organisation by nature and operates on a tripartite basis.
The actions that the HRDA takes to identify and anticipate competence and qualification needs are:
- Analysis of the changes in the labour market through research studies on issues of strategic importance, which examine particularly human resource development, issues at the level of the economy, the level of economic sectors and occupational categories. Emphasis is also placed on employment forecasting. A study entitled "Employment Forecasts in Cyprus 2000-2010" was completed and published in 2004. The study covered 27 sectors of economic activity and 36 occupations. Additionally, on the basis of the same methodology, a short-term forecast study was published in 2004 entitled "Employment Forecasts in Cyprus 2004 & 2005" for the 27 sectors of economic activity and 36 occupations.
- Annual investigations for the identification of skill needs with the involvement of the social partners. Such a study was carried out in 2004 as well.
- Preparation of an annual document (in consultation with the social partners) that contains the thematic priorities for multi-company training programmes. Such a document was prepared for 2004 as well.
- Conduct of human resource studies focusing on the characteristics of selected groups such as the employed, the unemployed, the economically inactive, women, etc. Such studies were conducted in 2004 as well. In addition, the implementation of schemes (co-financed by the European Social Fund (ESF) to provide, through personalised guidance, core skills to disadvantaged groups such as the unemployed, economically inactive women and young secondary school leavers.
In addition, the social partners also conduct annual surveys amongst their members to identify their training needs so that they can proceed with the provision of the necessary training. Such surveys were conducted in 2004 as well.
• to recognise and validate competences and qualifications
The HRDA has responsibility (by law) for the promotion and gradual establishment of a System of Vocational Qualifications. More specifically, the law clearly places power and authority on the HRDA to “set standards of vocational qualifications for any category or categories of persons employed, provide for the assessment and issue the relevant certificates of vocational qualifications”.
The assessment of the findings of a special feasibility study, the formulation of an integrated policy and the promotion and gradual establishment of a System of Vocational Qualifications in Cyprus, in cooperation with all other competent agencies, is one of the Strategic Objectives of the HRDA for 2004-2006, formulated on the basis of Cyprus’s strategic goals.
The feasibility study was conducted in 2004 and a monitoring committee was formed in which all the social partners participated.
In addition, the Cyprus Chamber of Commerce and Industry is operating a scheme in Cyprus (the only one of its kind run by a Cypriot organisation) whereby it certifies competence in a number of computer-related subjects (e.g. word-processing, spreadsheets, databases, presentations, etc.) through professional examinations conducted by it.
• to inform, support and provide guidance
The social partners are primarily involved in the relevant activities of the HRDA, through their participation in its Board of Directors.
The HRDA has prepared a web page with information and advice on training opportunities. The HRDA also displays its research studies on the labour market, which include medium-to long-term occupational forecasts up to 2010. The HRDA presents the results of such studies and information on its schemes and the options available to parents, to secondary school students and to young secondary school graduates doing their service in the National Guard. Moreover, the HRDA, through its Consultancy Services Scheme, aims at increasing the productivity and improving the competitiveness of enterprises through the development and better utilisation of their human resources. This scheme helps enterprises identify the training and development needs of their human resources and prepare/implement a training plan.
In addition, the social partners inform and provide guidance to their members on a regular basis concerning the training opportunities that are available in Cyprus.
• to mobilise resources
The activities of the HRDA are financed by the Human Resource Development Fund where enterprises are obliged to pay a levy amounting to 0.5% of their total payroll. The funds are mainly used to subsidise initial and continuing vocational training for the employed as well as other developmental activities. In 2003, HRDA’s total expenditure was £5.3m (€9.1m), out of which £4.8m (€8.3m) represented expenditure on training activities.
A new form of funding is the co-financing of vocational education and training measures with the ESF as formulated in the Single Programming Document for Objective 3 - Human Resources for 2004-2006. As far as training is concerned, three new schemes will be developed and put in operation by the HRDA, to be co-financed by the ESF (50-50%). These schemes aim to promote the training and employability of young secondary school leavers, the unemployed and economically inactive women.
In addition to the levy paid to the HRDA, it is estimated that the employers in the private sector spend an additional 1-1.5% of payroll on training measures for their staff.
Finally, the government as an employer finances the training and development of civil servants. It is estimated that an amount of £0.5m (€0.87m) was expended in 2003 for this matter.
Actions taken at sectoral level
• to identify and anticipate competences and qualifications needs
These mostly include the relevant HRDA activities that deal with sectoral research / analysis as outlined above.
In addition, a number of sectoral associations, e.g. Association of Cyprus Travel Agents, Cyprus Hotel Association, Association of Commercial Banks, Cyprus Association of Certified Accountants, Cyprus Federation of Business and Professional Women, etc. conduct regular research amongst their members with a view to identifying their training, competence, qualifications needs.
• to recognise and validate competences and qualifications
A good example in as far as recognition and validation of competences and qualifications are concerned, comes from the banking sector.
The Cyprus Association of Commercial Banks, with the agreement of the Bank Employees Union of Cyprus, recognises the qualifications awarded by the Chartered Institute of Bankers of England and Wales and the American Institute of Bankers, as well as the Documentary Credits Certificate awarded by the International Chamber of Commerce. This recognition leads to salary increases and promotions.
In addition, the certificates awarded by the Cyprus Chamber of Commerce and Industry certifying competence in computer-related subjects are recognised for employment purposes by leading companies and organisations in Cyprus.
• to inform, support and provide guidance
The sectoral associations mentioned above provide relevant information and guidance services to their members.
• to mobilise resources
Resources in Cyprus are mostly not mobilised at sectoral level but at national level through the levy to the HRDA as mentioned above.
It is however mentioned that employers in the private sector are estimated to spend 1-1.5% of their payroll (in addition to the HRDA levy) on training measures for their staff, while the government as an employer also finances the training and development of civil servants. It is estimated that an amount of £0.5 m (€0.87m) was expended in 2003 for this matter. Also the large commercial banks systematically dedicate a share of their budget for the training and development of their employees.
Actions taken at company level
• to identify and anticipate competences and qualifications needs
The major banking institutions of Cyprus through their competent departments are continuously monitoring the training/skills needs of their personnel, particularly in light of the changes taking place in the banking/financial services environment, and provide the necessary training to their staff on a systematic basis.
• to recognise and validate competences and qualifications
The example of best practice is again from the banking sector. The sector as a whole but also the individual banks recognise the qualifications mentioned in the relevant part of "Actions taken at sectoral level" above.
• to inform, support and provide guidance
The leading banking institutions in Cyprus do provide such information and guidance services to their staff.
• to mobilise resources
As already mentioned, the large commercial banks dedicate a share of their budget for the systematic training and development of their employees.
Examples of good practice
The best practice examples at sectoral and company level come from the banking sector in all areas, i.e. identification of competences and qualifications needs, recognition of competences/ qualifications, provision of information/ support/ guidance, mobilisation of resources. Sections 2B and particularly 2C above provide details.
In addition and in as far as the national level is concerned, the best example is the existence of the HRDA itself which is effectively entrusted by law with the lifelong development of competences and qualifications and which represents social partnership in practice through its structure and composition. Amongst the notable activities of the HRDA is the subsidisation of training programmes, (accelerated, initial and continuing) the co-funding of the Apprenticeship System in Cyprus, the considerable research activity it undertakes, the Training Infrastructure Support Scheme it operates (aimed at strengthening the training infrastructure of companies and training institutions), the Consultancy Services Scheme that aims at increasing the productivity and improving the competitiveness of SMEs though the development and better utilisation of their human resources, its truly informational website and the activities for the development of a Competence-based System of Vocational Qualifications.
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