SKILLS GAP ANALYSIS 2008

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SKILLS GAP ANALYSIS 2008 Powered By Docstoc
					USAID Competitiveness Project Serbia



                                             2008
                         Skills Gap Analysis
           In the IT, Film Production, Apparel and Education
                                 Sectors of the Serbian Economy
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CONTENT:

INTRODUCTION ............................................................................................................................................. 3
ABOUT THE PROJECT..................................................................................................................................... 3
METHODOLOGY ............................................................................................................................................ 3
1.     LABOR MARKET .............................................................................................................................. 4
     1.1.     DEMOGRAPHIC TRENDS AND PROJECTIONS ................................................................................ 5
     1.2.     LABOR MARKET REFORMS IN SERBIA ........................................................................................... 6
     1.3.     CONCLUSION AND RECOMMENDATIONS ................................................................................... 6
2.     COMPETENCIES .............................................................................................................................. 7
     2.1.     INTRODUCTION ............................................................................................................................. 7
     2.2.     WHAT IS A COMPETENCY? ........................................................................................................... 7
     2.3.     WHAT IS A COMPETENCY MODEL? .............................................................................................. 7
     2.4.     COMPETENCY MODELS AND PRACTICE IN SERBIA ...................................................................... 7
     2.5.     CONCLUSION AND RECOMMENDATIONS .................................................................................... 8
3.     SECTOR-FOCUSED SKILLS GAP ANALYSIS .......................................................................... 9
     3.1.     SECTOR: EDUCATION (FOCUSING ON BUSINESS/EXECUTIVE EDUCATION) ....................... 9
       3.1.1.        Nature of the industry and overview .............................................................................. 9
       3.1.2.        Industry organization......................................................................................................... 9
       3.1.3.        Recent developments and challenges ............................................................................ 10
       3.1.4.        LLL: Life-Long Learning .................................................................................................. 11
       3.1.5.        Financing ............................................................................................................................ 11
       3.1.6.        Major Donor Programs in Higher Education in Serbia ............................................... 12
       3.1.7.        Formal Education .............................................................................................................. 13
       3.1.8.        Foreign investors’ support for educational and training programs in Serbia.......... 14
       3.1.9.        University Career Centers ............................................................................................... 14
       3.1.10.       Executive Education Programs in Serbia....................................................................... 15
       3.1.11.       Conclusions from interviews with training providers: ............................................... 17
       3.1.12.       Recommendations ............................................................................................................ 18
     3.2.     SECTOR: INFORMATION TECHNOLOGIES (IT) ..................................................................... 19
       3.2.1.        Overview ............................................................................................................................ 19
       3.2.2.        Survey and interview findings........................................................................................ 20
       3.2.3.        High impact jobs ............................................................................................................... 22
       3.2.4.        Recruitment, retention, training, internships and cooperation with University ..... 24
       3.2.5.        IT Education....................................................................................................................... 24
       3.2.6.        Recommendations ............................................................................................................ 25
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     3.3.     SECTOR: APPAREL ................................................................................................................ 26
       3.3.1.        Overview ............................................................................................................................ 26
       3.3.2.        Anticipated Job Growth ................................................................................................... 29
       3.3.3.        High Impact jobs ............................................................................................................... 29
       3.3.4.        Educational institutions ................................................................................................... 31
       3.3.5.        Recruitment, retraining, training and cooperation with schools/universities ........ 31
       3.3.6.        Recommendations ............................................................................................................ 33
     3.4.     SECTOR: FILM AND PRODUCTION................................................................................. 34
       3.4.1.        Sector Overview ................................................................................................................ 34
       3.4.2.        Workforce........................................................................................................................... 35
       3.4.3.        Skills Gap Analysis ........................................................................................................... 36
       3.4.4.        High impact jobs ............................................................................................................... 36
       3.4.5.        Recruitment ....................................................................................................................... 37
       3.4.6.        Key Findings ...................................................................................................................... 37
       3.4.7.        Education ........................................................................................................................... 38
4.     REFERENCES ................................................................................................................................... 42
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Introduction

About the project

The Skills Gap Analysis (SGA) was initiated by Booz Allen Hamilton, implementer of the
USAID Serbia Competitiveness Project (www.compete.rs) to provide a more in-depth analysis
following the Opportunities and Constraints Study of Key Sectors of the Serbian Economy
(OCS), conducted in December 2007.1

The OCS identified that companies in Serbia are facing many challenges to their
competitiveness and future success. These run the gamut – from infrastructure to trade policy.
Some of the most complex challenges are those related to workforce, specifically the recruiting,
hiring, training, retraining and growth of talent. Despite continued overall softness in Serbia’s
labor market, many high demand occupations are short in the supply of satisfactory applicants.
This compromises competitiveness and undermines the country’s economic growth potential.

Therefore, the main objective of the SGA is to identify priorities for future workforce
investments and consider programs that would develop a reliable supply of qualified job
seekers for critical skills shortage occupations.

The skill gaps are examined in four (sub) sectors: IT, Education, Film & Production and
Apparel. SGA research was conducted from June 19-Aug 7, 2008, and the report was finalized in
November 2008.

Methodology

The Skills Gap Analysis research team employed both primary and secondary data and a mix of
research methods for the study. The primary data sources included face-to-face interviews and
questionnaires completed during the course of each in-depth interview, phone interviews as
well as collection of data via e-mail. The SGA team consulted university professors, consultants,
business support organizations, companies, cluster managers and associations related to
respective sectors and conducted a total of 60 in-depth interviews of which 70% were face-to-
face interviews, 10% phone interviews, and the remaining 20% were collected in questionnaires
via email.

Given the time available, as well as objectives of the project, the research team believed it was
important to choose the best-performing companies from respective sectors, with good business
results (growth in sales and exports, with steady job growth), and to investigate their key issues
related to workforce. The limitations, however, are that data are partial and not statistically
valid due to low and/or non-random sample size.




1 USAID Competitiveness Project subcontracted XAO Solutions, Serbia, to conduct background research
for the Skills Gap Analysis that is presented in this report.
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The literature review was acquired from secondary data sources which included consulting of
all available studies on the chosen sectors in Serbia that are relevant for workforce development,
labor market reform and educational reforms.

As there is no institution in Serbia tasked with developing, monitoring and analyzing work
activities of different occupations, or with defining the skill gaps within industrial sectors as a
basis for adapting curricula in schools, the team consulted the U.S. Bureau of Labor’s O*NET
occupational database and America’s Career InfoNet internet sites. In addition, the team
consulted the web pages and web links of foreign and domestic schools and training providers.

Findings from the literature reviews were used to identify key jobs/job families within each
sector and to profile the functions and required competencies for each job/job family. These
were then incorporated into the sector-specific questionnaires.

For the demand analysis, the project research team developed a data set of companies to target
within each sector, including their size, success in the market and contact information.
Respondents consisted of those individuals who were most knowledgeable about the firm and
its employees within each company. In most cases these individuals were owners, general
managers and/or HR or person responsible for hiring personnel. The results of these
questionnaires are included in the report.

From the demand-side analysis, the project team identified critical skill sets for each occupation
and extracted cross-cutting skills. While a thorough supply-side analysis was beyond the scope
of this study, given time limitations, the team investigated the educational capacity within the
critical occupations and sector-specific training service providers.

1. Labor market

The international definition of labor force includes the active population (both employed and
unemployed), aged 15-64, in a country. The unemployment rate is the percentage of
unemployed in the total labor force. The Serbian Bureau of Statistics reported that according to
its Labor Force Survey, unemployment in April 2008 in Serbia was 14%.

According to the data of the National Bureau of Statistics and Informatics, presented in the
monthly bulletin of NES (National Employment Service), 1,985,084 persons were employed in
Serbia in May 2008. In May, a total of 773,335 persons were registered as unemployed at the
NES. Out of the 773,335 unemployed, 54% were women. The largest number of unemployed
women was registered in the following areas of activity: textile industry; health care; education;
culture; art and media; economics; law and administration; social sciences and humanities; and
chemical and non-metal industry and typography.

The largest number of unemployed men was registered in: mechanical engineering and metal
processing industry; electrical engineering; transport; sport; public utility; upholstery and
painting services; forestry and wood processing; and, geodesy and civil engineering.
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Compared to the same period last year, employment growth in the first five months of 2008 was
recorded in the following fields of activity: public administration, defense and obligatory social
insurance (52.7%); fishing (39.3%); financial mediation (30.7%); public utility, social and
personal services (28.2%); real estate (17.9%); hotels and restaurants (12.3%); health and social
work (11.1%); civil engineering (10.1%); transport, storage and communication (8.7%);
processing industry (4.9%); trade (3.8%), agriculture, forestry and water industry (3.3%),
electricity, gas and water production and supply (2.6%), and ore and stone extraction (0.3%).

A decrease in job growth was recorded in education sector (8.3%) in May 2008 in comparison to
the same period in 2007. Between January and May 2008, some 324,183 vacancies were
registered (of that, 60.5% were for fixed-term contracts, and 39.5% for an indefinite period),
which was 6.7% more than in the same period last year. However, it is difficult to make any
conclusions as to which jobs are in demand, since vacancies are not analyzed per occupations
and/or jobs, but only for the level of education required and the field of activity. These analyses
are available in monthly bulletin of the NES.

One of the issues complicating this analysis is that Serbia has an uncoordinated information
system for monitoring the situation and tendencies in the labor market. Data is collected,
reported and analyzed within NES, and in the National Statistics Office using different
methodologies and indicators, resulting in significant differences in data.2

Data on the employed and the unemployed is reported per sector, economic activity and level of
education, gender, age, and time one spent searching for a job, geographic background and
other criteria. Again, there are no regular statistics reported per occupation and position. In
addition, Serbia has an outdated classification of occupations, adopted in 1989 and 1990, and
updated in 1992, which needs to be revised and adjusted to international standards, as it does
not correspond well to the realities of the market. It includes name of occupation and level of
education needed (from 1-8), without giving the details on required competencies. The need for
a new national occupational classification and better data collection and analysis is also
recognized in the Action Plan for Implementation of the National Employment Strategy for
2006-2008 of the Serbian Government. As reported by the National Statistics Office, a new
classification of occupations will be developed in 2009.

   1.1.    Demographic trends and projections

Demographic projections suggest that Serbia’s working age population will start to decline in
both relative and absolute numbers after 2010. Even though it is expected that the share of
working age population in the total population will increase from 67.1% in 2002 to 68.3% in
2012, the absolute number of working age population will drop almost 150,000, from 5,030,000
in 2002 to 4,885,000 in 2012, as a result of net population loss of some 350,000 in the ten-year
period. Consequently, between 2006 and 2012, an average annual drop in the working age
population of 15,000 is expected. In this period, the population aging will additionally intensify.

2 For more, see Mihail Arandarenko and Kosovka Ognjenović, (2007-8) Labor market reforms in Serbia and

Slovakia, Belgrade, January 2008.
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Working age population will decrease in absolute terms by some 200,000 between 2005 and
2020.3

       1.2.      Labor market reforms in Serbia

Changes of the Labor Law in 2001 and its revisions in 2005 led to some harmonization of labor
regulations in Serbia with EU standards, but also to labor market rigidities that are constraining
the private sector (Labor Law is criticized as a problem for the Serbian business climate in the
Foreign Investors Council White Book). The National Employment Strategy for the period 2005-
2010 was adopted and many projects have been initiated in the labor market field, financed by
the European Union, some European governments, the World Bank and others. The key
beneficiary of the project initiatives has been the National Employment Service (NES), which
aims to transform itself from a bureaucratic institution for record keeping and managing a
system of mandatory social security into a modern public employment service, oriented
towards client needs and representing a key institution in implementing employment policy.
There is a need for a labor market policy in Serbia to focus on solving employment problems
and improving labor force quality, and for better coordination among relevant Ministries and
institutions, education and the private sector to provide a more efficient response to changes in
labor supply and demand.4

       1.3.      Conclusion and Recommendations

              Demographic trends are negative, and are showing that Serbia will be challenged in the
              future by a reduced labor force. By 2020, working age population in Serbia will have
              decreased by 200,000 in absolute numbers.
              Labor market reforms in Serbia have been initiated but more needs to be done. The
              existing labor force information system does not provide a good foundation for
              workforce development policies. Essentially, if one would want to know how many
              computer programmers, or pattern makers, or digital animators, or film producers in
              Serbia are employed, or unemployed, what are the wages and the specific requirements
              for these occupations, demand and supply at the labor market, future forecast etc, this
              would not be possible. Some conclusions could be made by combining data from
              different sources, a very time-consuming effort, but even then, it would not be possible
              to arrive at exact numbers. Until this data is collected, analyzed and used, it is unlikely
              that adequate programs to increase employment can be efficiently developed. It is
              therefore crucial to modernize Serbia’s labor information system so that it tracks
              vacancies, occupations demand and supply and industry trends in a more timely and
              effective manner.
            A policy to increase employment rates through easier access to the labor market,
            especially for the age group 55-64 might be a strategic option over the short term. Over
            the long term, the increase in the active working age accompanied by an efficient

3   Ibid.
4   Ibid.
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          continuous training policy and by effective policies in the field of health will have to be
          taken into account.5


2. Competencies

      2.1.    Introduction

To analyze skill gaps – the difference between what exists and what is needed at the market –
the first step is to define the required competencies for certain occupations. The SGA team
identified serious weaknesses in this area: first and foremost, existing national occupational
standards are outdated, and Serbia does not have a National Competencies Framework. At the
same time, competencies-based curricula development occurs only at a few faculties. Use of
competencies in HR management in private companies is also a novel practice and occurs
mostly in large and predominantly foreign-owned, firms.

      2.2.    What is a competency?

Competency is the capability to apply or use a set of related knowledge, skills, and abilities
required to successfully perform "critical work functions" or tasks in a defined work setting.
Competencies often serve as the basis for skill standards that specify the level of knowledge,
skills, and abilities required for success in the workplace, as well as potential measurement
criteria for assessing competency achievement.

      2.3.    What is a competency model?

A competency model is a collection of competencies that define successful performance in a
particular work setting. Competency models are the foundation for important human resource
functions such as recruitment and hiring, training and development, and performance
management, because they specify what is essential to select for or to train and develop.
Competency models can be developed for specific jobs, job groups, organizations, occupations
or industries.6

      2.4.    Competency models and practice in Serbia

Defining competencies as a basis for curricula is not standard practice in Serbia. While some
private informal training providers and emerging private universities are using it increasingly
in their practice, this is considered to be a novel approach. It will take time before use of
competencies becomes standard practice, mostly for the following reasons:
        Lack of knowledge and/or practice about competencies, and building competency
        models among local experts
        Resistance to change in educational institutions


5Review     of Existing Labour Market Information in Sebia, Gopa Consultants, Public Report, 2007.
6   See http://www.careeronestop.org/competencymodel/competencymodel_users.aspx?etp=Y.
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       Weak capacities of institutions such as National Employment Service and relevant
       Ministries (Labor, Science, Education) to fully complete all necessary reforms including
       the development of National Competencies Framework and National Occupational
       Classification.

   2.5.    Conclusion and recommendations

       The fact that competencies are not defined for occupations in Serbia and as such
       implemented into curricula explains why available information on labor is
       contradictory. On the one hand, there is a sufficient number of qualified workers
       (required level of education), but on the other hand, companies are reporting difficulties
       in finding workers with adequate skills or they are reporting gaps in skills of current
       employees. To address this problem, the following activities may be undertaken:
       Support the development of competency models and build capacities of universities and
       other relevant education providers in area of higher and life-long learning to use
       competency models effectively for curricula development, training and retraining
       programs.

       Pilot a Worker Training/Retraining Program Using Quick Start Training Methodology.

Worker training programs must be matched to the job needs for the particular industrial cluster.
Typically, industry, training providers, and national employment services work together to
respond to industry needs. Rapid Skills Training, often referred to as Quick Start Training, has
been employed in the U.S. for more than thirty years and is a highly effective worker and
vocational training methodology. Quick Start is a streamlined, systematic learning process in
which the primary concern is that the trainee demonstrates the knowledge and skill required to
accomplish a series of learning objectives and tasks that are relevant to the selected industry.
When Quick Start is correctly and fully implemented, it provides trainees with training tools
which allow for short-term, on-demand, cost-effective, quality training that benefits the trainee
and the company. Quick Start uses a team approach which brings together management and
workers in the job analysis and curriculum development process in partnerships with private
and public training institutions. By targeting expanding SMEs, offering training stipends to
encourage their participation, and requiring those employers to hire trainees from the training
programs, Quick Start has proven especially efficient and effective with populations lacking
formal and/or modern vocational education.
Implementing institutions are:
       Employment centers, which conduct outreach to employers, provide training funds and
       oversee program implementation
       Businesses, which advise curriculum developers and often provide in-kind contributions
       such as facilities and equipment for the training
       Training providers.
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3. Sector-Focused Skills Gap Analysis

    3.1.     SECTOR: Education (focusing on Business/Executive Education)

    3.1.1.   Nature of the industry and overview

Education sector is responsible for teaching and training individuals to acquire knowledge and
skills. General characteristic of teaching at universities in the socialist non-market system was to
teach ex-cathedra and to focus on getting theoretical "knowledge". Other skills were not in the
focus of attention at universities. This is why it is so important for the countries in transition,
such as Serbia, to transform their educational system. This reform process is in progress now,
and efforts are being made on bringing the institutions of higher education in line with the
demands of the Bologna process.

In every country, the amount and type of education that individuals receive has a major
influence on the types of jobs they are able to hold, as well as on their earnings. In addition,
overall economic, social and cultural development of Serbia depends on the quality of
education. Education is a crucial industry for transition to the knowledge society and the
market economy.

The political elite in Serbia is still unaware of this importance and education policy is not a
government priority, not even nominally. This is why it is important for institutions of higher
education, which already have substantial autonomy, to focus on adapting their curricula to
market needs.

    3.1.2.   Industry organization

Formal education is dominating the overall education industry. Beginning in early 1990s, some
new informal educational institutions were established. Among them several institutions
developed into non-state (private) universities or faculties. These institutions were integrated
into the formal higher education system of Serbia with the Law on Higher Education (1995),
acquiring equal status as state universities.

Informal education development is in early phase, but specialized institutions of this type have
been established. There are several new independent education/training centers, mostly in the
field of management and business education. Various certified trainings are also organized by
Chambers of Commerce, employment agencies etc. In the field of language and computer skills
there is a large number of private schools and training centers.

During the 2005/06 academic year, there were 198 faculties in Serbia (86 public faculties, under
the umbrella of 7 universities; and 112 private faculties, some of which were within 7
universities)7. This number will likely be lower in the next year since there is now a more



7 Source: Statistical Yearbook 2006, Ministry of Education, Government of Serbia, and Center for

Education Policy, Belgrade, Serbia.
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rigorous accreditation system and all the current institutions of higher education are obliged to
reregister.

According to the data of the Statistical Office, during the 2005/06 academic year there was a
total of 229,355 students in Serbia, 56% of which were women (covers all higher education
institutions). Some 110,520 students (48% of the total number) were financed from the
government budget (Statistical Yearbook, 2006). There were 7,737 teachers (almost 85% full-
time) and 4,729 teaching associates (90% full-time). This means that the ratio of students to
teachers was 18:1.

In 2004, 22,047 students graduated of which 13,344 were women (60%). The number of students
is continually increasing: in 2004, approx. 56,000 students enrolled in the faculties for the first
time, almost double the number of students enrolled in 1990 (from the academic year 1990/91 to
2004/05). On the other hand, the number of teaching staff dropped in the same period.

Coverage, expressed as Gross Enrollment Ratio (GER, ratio of the total number of students of
basic studies (regardless of their age) to the total number of population whose age corresponds
to higher education/basic studies age) was 43% in 2002 for the entire higher education sector,
but it is important to know that the part which refers to university education was 26.6%.8

According to the Center for Education Policy’s (CEP) research on inclusiveness and efficiency of
higher education, it is estimated that about 40% of students do not graduate. This percentage
may be skewed by certain methodological problems in calculating completion and dropout
rates.

      3.1.3.   Recent developments and challenges

At the European Ministerial Summit in Berlin in 2003, Serbia joined the Bologna process. When
the Law on Higher Education was adopted in 2005, the system of studies was formally aligned
with the Bologna process requirements. The institutions were left to decide between the ‘3 +2’ or
‘4+1’ formula in terms of length of undergraduate and graduate studies, but limiting number of
years needed for students to acquire a postgraduate degree to five years. In 2006, enrollment in
new programs of studies should have begun but this did not occur in the majority of state
faculties and various private faculties.

It is not possible to fully estimate to what extent the old programs of studies have been
reformed since the previous system was very inefficient. CEP research on inclusiveness and
efficiency of higher education showed that in the period from 2004 to 2005, it took students 1.45
years on average to enroll in the next year of studies, and about 37% needed more than 1.45
years to enroll in the next year, demonstrating that many students do not pass all required
exams each year required to move to the next year.

Accreditation system introduced with the Law on Higher Education (2005) represents a solid
basis for evaluation of faculties and programs and for building the system of education quality

8   Source: CEP – Center for Education Policy, Belgrade, Serbia.
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control. In 2007, higher vocational schools underwent accreditation and a certain number did
not receive accreditation. Universities are now in the process of accreditation (2008-2009).

One of the important aspects of the Bologna process is diploma recognition. This system is still
not developed in Serbia and it is decided on a case-by-case basis by faculties who tend to be
slow and charge high fees. In majority of EU countries diploma recognition is free of charge. In
Serbia, the private sector is usually not interested in official diploma recognition by a local
university so this requirement only exists for employment in public institutions and in the
education sector.

     3.1.4.    LLL: Life-Long Learning

The crucial challenge of the Serbia’s education system is the underdeveloped life-long learning
system. The Former Yugoslavia had a well-developed system for adult education and training.
However, over the past 15 years, this system has essentially collapsed (European Training
Foundation 2005). Retraining programs provided through the National Employment Service
and other providers are very limited.9

Most universities tend to offer courses to a well-defined group of regular students and fail to
become the main provider of Life-Long Learning education and training. Universities in Serbia
are used to giving official diplomas and it is only very rarely that they organize trainings and
award certificates. The Law on Higher Education does not prevent universities to award
different non-academic certificates, quite the opposite: one of the major roles of the universities
under the Bologna process is to offer LLL courses, E-learning, and other types of education and
training, both academic and non-academic. The demand side and the potential size of the
market for different jobs are largely untested, though it is indicative that the number of private
non-academic education providers is growing.

     3.1.5.    Financing

It is estimated that Serbia spends about 0.7% of GDP on higher education (this refers only to
government spending). Public financing of educational activities depends mainly on the
number of enrolled students in the funded public education institution. Public universities have
other incomes as well, such as tuition fees (paid by self-financing students), various
administrative taxes, research projects, renting of premises, and other services.10 Research
activities are financed separately from teaching activities, from the budget of the Ministry of
Science and Technology rather than Ministry of Education. The application process is clear,
while the monitoring and evaluation of financed projects could be improved. Financing against
agreed milestones could be introduced as an important policy measure to promote education
reform.



9
 Review of Existing Labour Market Information in Sebia, Gopa Consultants, Public Report, 2007.
10For more information, see Vukasovic M. et al. (2009) Financing higher education in South-Eastern Europe:
Albania, Croatia, Montenegro, Slovenia, Belgrade: Centre for Education Policy.
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There is no tax or other incentives for private formal and informal education institutions. They
are financed from tuition fees only and from services given to third parties or projects.

     3.1.6.    Major Donor Programs in Higher Education in Serbia

Since 2001, international donors have supported Serbian universities with trainings, study tours,
equipment and books, and other activities aiming to improve the quality of education. New
possibilities for exchange of faculty and students were opened. Among major donors is WUS
Austria (World University Service), which recently equipped state universities with equipment
for e-learning. WUS Austria established its Belgrade Office in September 2001, and launched its
program "Support to the Universities of Serbia," financed by the Austrian Federal Ministry of
Foreign Affairs. It provided support to curriculum development, improvement of academic
infrastructure, human resource development, academic mobility, etc. WUS Austria’s Higher
Education programs are divided into the following sub-fields: (i) Curriculum and Course
Development; (ii) Academic Mobility; (iii) E-Learning; (iv) University Management and Quality
Assurance; and (v) Counseling and Information Service. Another important WUS initiative is to
increase linkages between education and the economy, ranging from knowledge transfer to joint
research projects.11

TEMPUS projects12 contributed to Bologna reforms in Serbia, by assisting with curriculum
development in different fields, university management, etc. TEMPUS is a European Union
program designed to assist higher education reform in Partner Countries13. It funds projects
linking the higher education sector in the EU and its 26 partner countries to facilitate university
modernization, mutual learning between regions and peoples and understanding between
cultures.

The Erasmus Mundus program is a co-operation and mobility program that aims to enhance
quality in European higher education and to promote intercultural understanding through co-
operation with third countries. It supports European top-quality Masters Courses and enhances
the visibility and attractiveness of European higher education in third countries. It also provides
EU-funded scholarships for third country nationals participating in these Masters Courses, as
well as scholarships for EU-nationals studying at Partner universities throughout the world.

Management education is a relatively new field at European universities in general, and it also
has a very short tradition in Serbia. Major universities still do not have Business Schools,
although they have graduate programs that cover many of business school topics.

In Serbia, the supply side is growing, but without input from the demand side. Therefore
universities tend to imitate Western programs, often missing key components, such as relevant
case studies and practical examples of relevance to the Serbian market. Teachers in this field are



11 http://www.wus-austria.org/projects/ongoing_content.htm#1
12 http://tempus.ac.yu/
13 http://ec.europa.eu/enlargement/countries/index_en.htm,

http://ec.europa.eu/external_relations/ceeca/index.htm
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a scarce resource: very often they are educated in general economics and move to management
because of its popularity.

      3.1.7.   Formal (Academic) Education

Formal education is the hierarchically structured, chronologically graded 'education system',
running from primary school through the university and including, in addition to general
academic studies, a variety of specialized programs and institutions for full-time technical and
professional training.14

At present there are many programs offered in management and marketing in Serbia. At state
universities management education is mainly organized within Economics faculties (this is the
case at the University of Belgrade, Novi Sad, Nis, and Kragujevac). The Engineering Faculty at
the University of Novi Sad has an undergraduate program in Engineering Management, and an
MBA program in cooperation with the United Business Institutes (UBI) from Brussels, Belgium.
The Economics Faculty at the University of Belgrade has a joint Executive MBA with HEC, one
of top business schools in France and Europe.

Notably, the Ministry of Science and Technology, in cooperation with the Engineering Faculty
at the University of Novi Sad and Serbian Chamber of Commerce, organizes a ‘Competition in
best technology innovation’ (www.inovacija.org). The aim of this competition is to promote
entrepreneurial spirit among young scientists, students, innovators and scientific teams by
awarding best innovation projects and providing consulting and trainings to winners for
commercialization of new products.

The Ministry of Science and Technology funded this initiative with 16,750,000 dinars in the
period 2005-2007 and 8,000,000 dinars in 2008.

The University of Novi Sad was additionally awarded with the UNESCO Chair for
entrepreneurial studies. The goal is to promote entrepreneurship among students and staff, to
integrate entrepreneurship as a subject in curricula at all faculties, to develop master studies in
entrepreneurship, to foster strong links and partnerships with the business community, and to
help create spin-offs and promote students projects (for more, see www.unescochair.ns.ac.yu).

There is an increasing number of private higher education institutions that have introduced
business and management education. Many of these schools seek profit but several, like FEFA
have an official mission of delivering quality education and have partnered with reputable
foreign academic institutions.

FEFA - Faculty of Economics, Finance and Administration (www.fefa.edu.rs) in Belgrade is part
of Singidunum University and is seeking to become a regional leader in education in economics
and management. They have MBA studies, and are cooperating with the Harvard Business
School and many Serbian and multinational companies. A number of outstanding Serbian
economists are teaching at this Faculty. The total number of students at FEFA is 300 and their

14   http://www.infed.org
14 | P a g e

mission is to continue to have a relatively small number of students, aiming to produce alumni
with higher level of expertise in economics, finance and business administration. Yet even FEFA
pointed out that it is difficult to find good teachers for management and marketing courses. In
contrast to FEFA, some other private schools focus on quantity rather than quality. Some have
thousands of students and an inadequate number of full-time/qualified academic staff. Their
ambition is to produce as many business graduates as possible.

A list of other Serbian schools offering business education and management and their curricula
is provided as an annex to this report (Annex 1: Education). Notably, MBA Fair15 is organized
twice a year in Belgrade where all programs are promoted to potential students.

      3.1.8.   Foreign investors’ support for educational and training programs in Serbia

Foreign investors have provided some examples of how private sector could work with
education providers to successfully improve the quality of workforce in Serbia. For instance, in
cooperation with Ministry of Education of the Republic of Serbia, Coca-Cola HBC has
developed a graduate trainee program in Serbia. Program trainees are talented young people
and future business leaders who undergo intensive development program where they acquire
skills needed to work with the company. The trainee program includes recruitment, heavy
training, coaching, and project management. The program lasts up to one year and the trainees
have the opportunity to spend time in each department and participate in the implementation
of projects that have specific business outcomes. After the program completion, successful
trainees are provided with an opportunity to become part of Coca-Cola HBC Serbia team. Some
of Coca-Cola HBC Serbia current middle and senior managers come from this program.

The Telenor d.o.o. company founded the Telenor Foundation in Serbia in March 2007. The
Foundation supports projects that provide effective, sustainable and developmental solutions
throughout Serbia. One of the key activities is the program “Youth and Education”, which
makes investments in talented people in Serbia, their education and professional advancement.
The Foundation initiates and carries out special programs, seminars, lectures and scholarships
aimed at further education and additional training for young experts in areas that are relevant
for Telenor’s operations. The Telenor Foundation established the “Professor Dr. Ilija Stojanovic”
award, granted in several categories to most successful students, young scientists and
researchers for their contribution in the area of telecommunications.

      3.1.9.   University Career Centers

Career Guidance and Counseling is a relatively new practice at Serbian universities, introduced
upon the initiative of Prince Alexander’s Foundation for Education. The first Career Centers
were established in 2005 and there are currently 10 such university centers: the University of
Belgrade, Kragujevac, Nis and Novi Sad; separately at the Faculty of Organizational Sciences
and Faculty of Economics at the University of Belgrade (state-owned); and at Singidunum
University and its faculties which include FEFA, Faculty of Media and Communications, and


15   http://www.mbafair.net/
15 | P a g e

the Business School in Valjevo. In addition, Belgrade Open School (a non-governmental
organizationn) engages in career guidance projects.

There is no academic degree in Career Guidance and Counseling at universities. There is one
course on professional development for students at Singidunum University. There is generally a
lack of appreciation among university management at state universities of the importance of
Career Centers since their budgetary funding is not linked to results, i.e., they do not benefit
from increased employment of their alumni. For this reason, Career Centers at state universities
face funding challenges. Career Centers at private universities, which perceive the private sector
as their key client, enjoy strong support but need training.

Some of the priority needs for the newly established Career Guidance Centers at Serbian
universities are the following: job placement training, equipment (computers, video projectors
and cameras), professional books and membership fees, translation and adaptation of
guidebooks, software (database management).

    3.1.10. Executive Education Programs in Serbia

Executive Education programs differ from traditional Master of Business Administration (MBA)
programs because they are designed for more experienced executives and managers who do not
have time to commit to a full-time advanced education programs. At the moment Faculty of
Economics in Belgrade and FEFA are the only academic institutions offering executive
education (at the moment sporadically rather than systematically), with most education
providers in this area coming from the informal sector, i.e., private companies and NGOs.

Informal education in former Yugoslavia has been organized through a network of so-called
“People’s and workers’ universities’’ and it still exists (Bozidar Adzija, Narodni univerizitet
Novi Sad, Subotica). They are generally known for organizing short courses for different
occupations such us sewers, hairdressers, even film workers, etc. combining theory with
practical work. In the last ten years informal education has been continually growing and more
and more private training centers have been developed. The first trainings started in early 90s,
mostly for NGOs on topics like organizational development, strategic planning, public policy
advocacy, facilitation, fundraising, communications, and NGO management. Later, NGOs
received training of trainers with donor support, and started to provide trainings to public
institutions, local government and to the general public. Some NGOs started to provide
business trainings combining local and foreign training practice. Consequently, although the
number of informal education institutions is still insufficient, there is a network of experienced
local trainers involved in the activities of newly established private training centers.

At present, trainings are provided by government agencies, NGOs, including industry
associations, and private firms. There are several local organizations established to support
women’s businesses such as: Association for Businesswomen, Belgrade; Association for
Businesswomen “PAZ” Novi Sad; Academy for Women’s Entrepreneurship, Kikinda; and,
Center for Women’s Entrepreneurship “Teodora” from Nis. Trainings provided by these
organizations are usually donor funded and offered free of charge, or at subsidized prices.
16 | P a g e

An industry association UTTI (Association for Improvements of Market Research,
http://uuti.org.rs) offers workshops in market research. UTTI was also the organizer of the
SEEMAR (South East European Market Research Conference), held in Belgrade in October 2008.

The Center for Education within the Serbian Chamber of Commerce offers various trainings in
strategic management, project management, quality standards, finance and accounting, HR
development, leadership, management, and corporate governance. These courses are usually
charged, while the government agencies (namely Agency for SME Development and regional
development agencies) usually offer courses that are free of charge.

There are also local government centers such as the Business start-up center in Kragujevac that
provides trainings in management skills, business communications, writing business plans, and
organization and company development. (http://en.bsckragujevac.org/content/view/1/4/).
Private training providers also focus on management and soft skills, often offering
foreign/international certificates.

Conclusions:

        Curricula are developed without assessing current and future needs of the Serbian
        market. There is very little research on the real needs of businesses in Serbia in terms of
        education, and in particular information on the needs of SMEs. There is a gap between
        the market needs and the real outputs of education due to the fact that competencies are
        not defined and standardized for occupations, and not used as basis for curricula
        development.
        Many teachers tend to believe that they can offer good quality teaching if they learn
        from books and imitate programs - often they do not see the need to be trained. Reforms
        in the education sector needs to improve not only the content of studies but also the
        teaching methods, communication with students, and approach to curricula and
        syllabus writing. There is a need for continuous learning among University professors.
        Teaching methods need to be improved, and examples given to students should also
        include local case studies.
        Special attention should be paid to teaching soft skills where there is a gap both in skill
        availability in the market and in teachers who are trained in teaching these skills. There
        is generally a resistance to teaching soft skills even within broader education topics,
        which has to be overcome to meet market needs.
        Cooperation with the private sector needs to be improved. Internships for students
        organized in cooperation with the private sector are often missing or are in early
        development phase.

The key private training providers are listed in Annex 1: Education and the following are key
conclusions from interviews with training providers.
17 | P a g e

    3.1.11. Conclusions from interviews with training providers:

        The interest/demand for training is increasing though financial constraints are a
        dominant decision factor when trainings are considered. Clients are mostly foreign
        companies operating in Serbia or larger local firms. Many private training centers also
        provide services to international donor organizations where trainees are local
        government, agencies and/or different state institutions. A small number of SMEs
        participates in training, due to the lack of time and resources in SMEs, and lack of
        awareness on importance of continuing education. Most of the business clients are
        coming from the following sectors: Fast Moving Consumer Goods, pharmaceutical,
        textile, retail, financial sector and, in the last year, the metal industry, civil engineering
        and IT (hardware). The greatest interest is for trainings in sales, finance and
        management.
        Trainings are offered as in-house trainings targeted for needs of specific clients, and
        open seminars. Groups consist of 3-12 participants.
        Training providers are generally small companies, and with few exceptions, have
        usually 2-5 employees. They often outsource trainers. The number of available trainers is
        limited, and there is a serious lack of trainers with specific industry expertise (e.g., sales
        in specific industry). There is also an insufficient number of trainers in project
        management, soft skills, and management in specific industry, business planning and
        marketing (with knowledge of the global market and trends).
        Content of the training programs is developed mostly by using examples from similar
        training centers abroad and adjusted to local market needs, or through a franchising
        system and licensed training programs (e.g. Adizes, and Franklin Convey).
        According to private sector training providers, skills gaps exist in many areas, including
        management, soft skills (communications, problem solving and teamwork) and
        marketing.
        Local private training providers are growing. To develop their businesses further they
        said they would benefit from: continuous education, books, trainings, certified training
        programs, memberships in training associations; know-how on how to run training
        business (content development and training organization). One specific skill identified is
        how to teach by using a case method.
        Finally, training providers emphasized a need for awareness-building among SMEs on
        importance of continuous education and training. The resources for trainings that SMEs
        are able to allocate are very limited, therefore programs that provide subsidies to
        companies for using local consulting services are very welcomed. Notably, the Business
        Advisory Services Program Serbia funded by the Government of Nederland and
        administrated by EBRD aims to support the development and competitiveness of
        Serbian SMEs through selecting the most suitable local consultants to solve specific
        business problems and to carry out particular consulting assignments; where the local
        expertise is not available to meet the particular needs of an enterprise, outside
        consultants are brought in to work and share their skills with the local consultants. The
18 | P a g e

        initiative is granted with up to 50% of the total net cost of a project to a maximum of
        10,000 Euros.16

     3.1.12. Recommendations

        Provide expertise and training for the introduction of competency models17 as a basis for
        curricula development and workforce development activities in the private sector. One
        specific output of that activity would be a developed competency model for
        management, marketing and entrepreneurship studies in Serbia that would be used in
        business schools (example of a competency model is available in Annex 1: Education)

        Provide training on Management competencies/skills for management and business
        teachers in several academic centers, training in developing competencies for teaching
        others18 (example of a training program is available in Annex I: Education)

        Support teacher development in soft skills teaching and training (e.g. communication
        skills), both at academic and non-academic education providers

        Financially support translation of best management, marketing and entrepreneurship
        text books to be used at management studies programs in Serbia

        Facilitate greater cooperation among educators, the private sector, and the Government
        on workforce development issues aiming to improve competitiveness of the local
        economy through different organizations, such as the National Competitiveness
        Councils, and other business forums19

        Support capacity building programs for established career centers (e.g. job placement
        trainings, office equipment, professional books and membership fees, translation and
        adaptation of guidebooks, software (database management)

        Initiate an advocacy campaign to introduce tax deductions that allow workers to deduct
        training expenses from their taxable income.20

        Bring professors from quality Western business schools to provide inputs for curricula
        and teaching methods, and deliver trainings to improve Serbian business schools.

        Pilot a Worker Training/Retraining Program Using Quick Start Training Methodology
        to support development of adequate vocational educational program to meet the current
        skills needs in a select sector (for more, see above)


16 www.bas-serbia.org
17 National Program for European Integration (NPI), Government of Serbia, Belgrade 2008
18 See http://www.phoenix.edu/about_us/about_university_of_phoenix.aspx
19 Envisaged by NPI, page 654., recommendation 6
20This is not a general rule in the European Unon, but several EU members have adopted this model.

Source: Skill Gaps in the EU: Role for Education and Training Policies, page 50.
http://www.cpb.nl/eng/pub/cpbreeksen/document/162/doc162.pdf
19 | P a g e

         Finance research on future skill needs and make it readily available to education and
         business sector

         Support non-academic education development by providing subsidies (e.g. voucher
         system) for a certain training program based on market needs

         Improve flexibility of the formal education system - to be better able to adapt to the
         changing skill demands

         Establish a comprehensive database on occupations and jobs that are needed in the
         market and conduct analyses on a regular basis (e.g., http://online.onetcenter.org/,
         http://www.onetcenter.org/links.html)

         Universities should be encouraged to develop a system of LLL and offer different
         courses for diversified target groups.21

3.2.     SECTOR: Information Technologies (IT)

     3.2.1.    Overview

Technical skills (software development, engineering, hardware design, IT services and System
Integration) are strong and stable, with total graduates in the technical areas relevant to ICT
work of 26,963 in 2005. Although such graduates are not always up to date with the latest
technologies, requiring additional on the job training, this has not been a strong impediment to
sector growth. However, a major gap exists at the management level, as there is a lack of
experienced managers who have been exposed to international best practices in both general
and software development project management.

Candidates for work in IT come from many fields, and with growth, the potential to attract
them is strong. Average wages are high, although there is believed to be significant
underreporting in this sector which impacts the reliability of salary data. Job growth is present.

Brain drain22 - The IT industry still faces a threat related to workforce development through the
brain drain, with the loss of talented technology professionals who can make significantly
higher incomes in Europe or the US. Large numbers of those with strong software skills have
left the country during the past decade, mainly to USA, Canada and Australia. This trend has
been declining, but continues because of better professional opportunities and benefits.

Workforce limitations23 - IT industry growth is also constrained by the educational and
workforce development systems. University technical education programs have some
outstanding faculty and curricula that provide students with a strong foundation in the
theoretical aspects of their technical fields. However, they generally do not provide the practical

21 Envisaged by NPI, page 653., recommendation 6
22  See IFC Report, Investing in Serbia's Internet and IT sector: Challenges and Opportunities, Public
Report, 2004.
23 Ibid.
20 | P a g e

experience students need to be productive workers, especially in relatively demanding higher
technology fields, or to offer the management skills that companies seek.

            o
Prospects to move sustainably into higher value markets, domestic and international are strong.
There are a number of markets that Serbian companies have not been able to access, largely due
to gaps in management capability and marketing. Various reports24 on the ICT sector in Serbia
stress that critical weaknesses of the ICT industry are primarily in the areas of management,
sales and marketing skills. These shortcomings hinder the companies’ ability to grow and to
compete in international markets.

                    etitive,
Serbia is cost competitive, has a technically strong workforce, and other advantages that can
                                                             shoring,
allow it to benefit from increased global demand for near-shoring, particularly in Western
Europe.

      3.2.2.   Survey and interview findings

In the surveyed IT firms in this study, 63% of employees are industry specific, while the
remaining 37% are in management and administrative positions. Some 21% of employees are in
general management positions, project management and sales.

     ICT, % of employees in all reported occupations, sample
                        1122 employees         Management
                                                       7%
                                                               Sales
                                                                8%

                                                                    Admin, support,
                                                                      customer
                                                                       service
                                                                        16%


                                                             Project
         Industry                                           Managers
          specific                                             6%
           63%


Chart 01 – IT, % of employees in all reported occupations, sample 1122 employees, 12 IT firms

                                                          only            01)
The number of marketing and sales managers is very low [only 1.6% (Table 01)], although these
positions are recognized by experts and local companies as very important for the future
                                   have
growth. The curricula at faculties have improved in regard to sales and marketing courses for
       ich
IT, which will assist future IT generations, while some short term programs will be needed to
address the present needs of companies in Serbia.




 Such as IFC report, Investing in Serbia’s Internet and IT sector, Opportunities and Constraints Study of
24

Key Serbian Sectors, USAID Competitiveness Project/Booz Allen Hamilton, 2007.
21 | P a g e

 ICT, % of employees reported in industry specific occupations, sample
                           755 employees
                         Technical writers      1.3%
                                                                     1.1%
             Multi-media artists and animators                     0.1%
                                                                    0.5%
                                               Engineers                                                                  20.4%
                                                                        1.9%
                Network and computer systems…                               4.0%
                                                                       1.5%
                      Computer systems analysts                        1.2%
                                                                                6.2%
       Computer software engineers, systems…                                 4.5%
                                                                                                                      18.9%
            Computer and Information System…                                        7.5%
                                                                                                                                 23.6%
         Computer and information scientists,…                                      7.3%

Source: ICT Skills Gaps Survey, companies’ questionnaires, Serbia 2008

The majority employed in industry specific occupations is in the group of computer
programmers, engineers, computer software engineers (system software), and computer
software engineers (applications).

The following table presents the number of employees in surveyed companies and their
positions/occupations within the companies:

                                                               number of
  ICT sector occupations, sample 12 companies,
                                                               employees
  1122 employees excluding telecommunication                    position                   difficulty with filing position, and why
                      firm                                                    %
                                         General Manager          12        1,07%
                                       Operations Manager
                                                                  17        1,52%   Lack of experience, skills. Not many candidates. Difficult to retain
                                        Marketing Manager
                                                                                    Require high salaries, low availability, insufficient knowledge (i.e.
                                                                   5        0,45%   online marketing) and education
                                             Sales Manager

                                                                  12        1,07%   Lack of relevant experience and knowledge. Require high salaries
              Computer and information systems managers           57        5,08%   Lack of soft skills, Lack of experience
                                          Finance Manager                           Wide scope of work within small companies, high salaries,
                                                                   4        0,36%   availability
                                               HR Manager
                                                                   2        0,18%   Lack of knowledge and formal education, insufficient experience
                                       Production Manager
                                                                   7        0,62%
                                        Quality Manager           11        0,98%   Insufficient experience
                        Purchasing Manager/Buyer/Agent             4        0,36%

                                         Retail Salesperson       10        0,89%

       Sales representatives, wholesale and manufacturing,
                           technical and scientific products      38        3,39%
                                           Sales engineers        34        3,03%
     Computer support specialists / systems administrators
                                                                  42        3,74%
                  Secretaries and administrative assistants       40        3,57%
                            Bookkeeping, accounting clerks        54        4,81%
                         Customer service representatives
                                                                  31        2,76%
                                                                                    Lack of qualified candidates, lack of experience, high demand, and
                                           Project Manager        58        5,17%   consequently, high salaries
22 | P a g e

                                                                             Positions generating huge interest, but difficult to fill due to brain
              Computer and information scientists, research   55    4,90%    drain and compensations


                                   Computer programmers       178   15,86%   Huge demand - high salaries and low availability
                 Computer software engineers, applications    129   11,50%   High salaries and low availability
             Computer software engineers, systems software    34    3,03%    Low availability
                              Computer support specialists
                                                              47    4,19%    Requires technical knowledge as well as customer orientation
                                Computer systems analysts      9    0,80%    Insufficient experience
                                   Database administrators    11    0,98%
             Network and computer systems administrators      30    2,67%
       Network systems and data communications analysts       14    1,25%
                                                 Engineers    154   13,73%   High competition
                                  Market research analysts     4    0,36%
                          Multi-media artists and animators    1    0,09%
                                         Graphic designers     8    0,71%
                                          Technical writers   10    0,89%    Lack of formal education
Source: ICT Skills Gaps Survey, companies’ questionnaires, Serbia 2008

Interviewed companies reported the 20% job growth forecast for the next 6 months to one year
is primarily for the following occupations: (20) or 55% in management, sales and administration,
and (79) or 45% are in industry specific occupations. The first three industry specific
occupations for IT are: computer programmers, computer software engineers (applications),
and engineers. These are also most difficult to recruit (Table 01). Interviewed companies
emphasized that it is not a problem to find computer programmers, but it was a big challenge to
find experienced software engineers and computer programmers with project management
skills and the ability to delegate work to other team members.

    3.2.3.      High impact jobs

Companies were asked in the survey to identify high impact jobs for growth and
competitiveness of their firms. These are:

                                                                    Computer Software Engineers
                                                                    Sales Engineers
                                                                    Computer and information scientists, researchers
     IT Industry Specific Occupations
                                                                    Information System Managers
                                                                    System engineers
                                                                    IT Architects
                                                                    Sales Managers
                                                                    Project Managers
         Cross Cutting Occupations                                  HR Managers
                                                                    Marketing Managers
                                                                    Customer Service
                                                                    (Network) Computer and information systems
                                                                    managers
    Telecommunication Industry High
                                                                    Marketing managers
             Impact Jobs
                                                                    Sales Managers
                                                                    Quality Managers
23 | P a g e

Faculty representatives reported that high impact jobs at IT Faculties, and at the same time
difficult to fill in, are expert positions with profound software engineering knowledge, expertise
in methods of projecting, development and software testing using the latest development tools.
In cases where such experts have been identified, they often do not have a PhD degree that is a
           ent
requirement to teach at a University, or they are employed in the industry where salaries are
much higher and therefore incentives to move to Universities are low.

Another concern mentioned is that the number of students interested in studying IT
development and science is generally low. To increase motivation of students to study IT the
Government could introduce incentives by providing stipends to students of IT      IT-related
faculties. Moreover, upon completion, they could be further supported with grants to start
  mpanies
companies and further develop IT services.

In the SGA survey companies were also asked to identify the skills their current employees are
lacking.

   Lacking skills for current positions, ICT sector

           Basics (attendance, appearance, attitude, etc

           Technology

                                            management,self-motivation,
           Soft skills (communication, time management,self
           problem solving, negoatiation skills etc.) 12%;

                          64%                         24%



 ource:                                    Questionnaires, Serbia 2008
Source: ICT Skills Gaps Survey, Companies’ Q

                                        have
The following types of skills gaps have been identified by surveyed companies for current
workers: 64% are soft skills, 24% technology skills, and 12% of basic skills such as attitude,
appearance etc. In the soft skills category, those mostly mentioned are:

        Communication skills
        Problem solving skills
        Time management skills
        Negotiation skills

If companies were to undertake any soft skill training over the next year, the following have
been identified as the most important:

     1. Project Management Skills                           4. Conflict management
     2. Problem solving skills                              5. Change management
     3. Communication skills                                6. Teamwork skills
24 | P a g e

If companies could do one thing to improve their abilities to hire and retain for the key positions
they would (as identified in the survey)

          Learn how to motivate people other than salary increases
          For key positions, offer company shares
          Provide trainings and certifications
          Establish a mentoring program
          Improve HR function and develop criteria for career advancement

      3.2.4.   Recruitment, retention, training, internships and cooperation with University

Unlike other sectors, the majority of the IT companies examined invest in training programs and
other benefits to retain employees. The trainings offered to employees are mostly related to
technical skills, and rarely to soft skills. Local companies report to be investing from 3,000 to
10,000 Euro per year in trainings.

ICT companies closely cooperate with universities in Belgrade and Novi Sad, and many have
established internship programs. Recruitment is done in various ways, through
recommendations, HR agencies, universities, and newspaper ads. Although cooperation with
universities exists, this is more due to individual efforts of companies and professors rather than
an institutionalized cooperation between private sector and education sector.

      3.2.5.   IT Education

Formal IT Education25:

          IT programs are available at several public and private universities:
          University of Belgrade, Faculty of Electrical Engineering: www.etf.bg.ac.rs
          University of Nis, Faculty of Electronic Engineering, Department for Computer Science
          and Informatics: http://www.elfak.ni.ac.yu/phptest/new/index.php
          University of Novi Sad, Faculty of Sciences:
          http://pmf.ns.ac.yu/index.php?update=1&lang=en
          University of Kragujevac: http://cimsi.kg.ac.rs
          Singidunum University, Faculty for Informatics and Management:
          http://www.fpi.singidunum.ac.rs
          Faculty of Information Technology: www.fit.edu.rs
          Information Technology School: www.its.edu.rs
          CET Computer Faculty: www.raf.edu.rs

Informal IT Education:

The leading Informal training and certification providers for technical skills are Microsoft and
Cisco.



25   Available programs of study are provided in Annex 2: IT.
25 | P a g e

Microsoft in Serbia has two major educational programs26; academic (MSDN AA and IT
academy) for accredited educational institutions in Serbia, and partner in learning program for
individuals and educational institutions providing trainings for teachers, instructional resources
and e-learning for teachers. IT Academy is a program that enables accredited local educational
institutions to organize high level programs on the most recent Microsoft technologies. The
program of IT academy prepares students for jobs such as: Network Administrators, Technical
support, Programmers, designers and programmers for MS office, and also for receiving
Microsoft certificates. In total five faculties and one University are members of Microsoft IT
academy.

CISCO27 in Serbia also provides trainings and certificates in various programs such as: IP
Communications, Routing and Switching, Security, as well as training for technical staff
including Curriculum Planning Service and access to comprehensive technical knowledge
library.

     3.2.6.    Recommendations

Possible sector level interventions28:

         Project Management Skills Capacity Building
         Support introduction of Project Management courses into curricula at IT Faculties.
         Increase number of PM trainers on the market through training of trainers (TOT), and
         through certification of local training providers/institutions
         CMMI Training
         At a more advanced stage, support CMMI training for a group of auditors and CMMI
         trainers, as specified in CMUSEI
         Support Development of Internship Programs In Serbian IT firms
         Provide know-how to university career centers and industry associations onhow to run
         effective internship programs. Promote internships among local IT firms and students
         Curricula Development
         Provide TA to IT Faculties to integrate soft skills into their curricula or as a part of LLL.
         Provide TA to IT Faculties, and training providers to integrate business fundamentals
         into their curricula or as a part of LLL
         Provide TA to IT faculties to improve course offerings in IT technical skills
         Promotion of the use of ICT among SMEs in all sectors
         Promotion of Life Long Learning among IT firms




26 http://www.microsoft.com/scg/obrazovanje/default.mspx
27 http://www.cisco.com/web/YU/learning_events/index.html, and
http://www.cisco.com/warp/public/437/services/ndm/aes.html and in Annex 2: IT)
28 Some recommendations for Serbian IT sector competitiveness improvement are made in the Report -

Defining and Strengthening Sector Specific Sources of Competitiveness in the Western Balkans, OECD,
2008., page 205.
26 | P a g e

Possible firm level interventions:

         Support Strategic Management, Marketing and Sales Trainings for IT firms
         Provide TA to local education providers and provide grants/voucher schemes. Provide
         TA to local companies to help develop marketing and sales strategies in their companies,
         and train staff that will work on implementation of these strategies
         Support Soft Skills Trainings: including: Problem Solving Skills, Communications
         Teamwork Skills, Conflict management. Provide grants to firms to be used for trainings
         and TA (e.g., ToT program) to training providers
         Support Project Management Training
         Training of IT professionals in Project Management (PMI/PMP)
         Assist HR Management in ICT companies
         Preparation of template job descriptions for small and medium sized IT companies
         Support Establishment of HR Departments in companies exceeding 30 employees
         Training of IT Managers dealing with HR, HR consultants and HR Managers
         Workshops on retaining strategies, incentives, motivation

3.3.     SECTOR: APPAREL

     3.3.1.    Overview

The textile industry in Serbia29 has a long tradition as a leading Serbian industry, with close to
45,000 people currently employed in more than 1,400 firms. As reported in the Statistical
Yearbook30 in 2006, 24,047 of the total employment in the textile industry was in apparel.
However, in comparison with 2004, the number of jobs decreased by 8,390.

At present, the apparel industry of Serbia has a plethora of experienced labor with many
unemployed textile workers, predominantly women, who lost their jobs through the
privatization process.

Sewers and technicians are educated in specialized secondary schools, evenly spread
throughout the country while higher levels of education at specialized vocational schools and
University faculties offer post-graduate education in related fields such as textile technology,
fashion design, apparel technology, and management in the textile31 industry.

Salaries in the apparel sector are extremely low. They are equal to only 34% of the average net
salary in Serbia, and 40% of the average salary in general manufacturing. The companies that
were surveyed for this analysis reported higher than average salaries for their manufacturing
workers at net 30,000 Dinars, which is at the level of the average salary in general
manufacturing (not in apparel manufacturing) in general in Serbia.



29  See also: Defining and Strengthening Sector Specific Sources of Competitiveness in the Western
Balkans, OECD, 2008., page 87.
30 Source: Statistical Year Book 2007
31 This is the new curricula introduced at the Vocational Textile School in Belgrade.
27 | P a g e

Average salaries and wages per           Gross salaries and         Net salaries and
employee - June 2008                     wages                      wages
Manufacturing                                   37.857,00 Din.         27.273,00 Din.
Manufacture of wearing apparel                  14.972,00 Din.         10.969,00 Din.

Source: Statistical Office of the Republic of Serbia, Publication
"Salaries and wages per employee paid in June 2008" (ZP11)


Although there are significant numbers of registered unemployed textile workers, apparel
companies are experiencing difficulties finding and retaining qualified workers. Although in
2005 there were over 14,000 graduates of programs that could contribute to the more skilled,
technical and managerial side, the challenge is to move these graduates toward a career in this
area since wages are low and there is a lack of career opportunities for workers with university
degrees in management, finance, fashion design and marketing. In urban areas where higher-
wage jobs are available, the unemployed are less motivated to enter the sector altogether.

In rural economies however, the situation is different. Where people are making a living from
primarily agriculture, having additional income from work in apparel – even if it is low-paid –
is an important contribution to household budgets. The loss of these jobs would be devastating
to many rural economies. The apparel sector therefore remains an important employer in Serbia.
Moreover, many of the textile/apparel vocational schools are located in rural communities,
offering the only opportunity for rural youth to pursue higher education.

The skills gap analysis showed that companies are concerned with the lack of technical skills,
but they are even more concerned with the fact that there are not enough university-educated
workers in management, finance, marketing and sales interested in careers in this industry.
Furthermore, many of those who are already filling these occupations lack modern industry
knowledge and expertise, market orientation, and knowledge of the global changes affecting the
industry.

The key issue for the majority of companies in apparel is their lack of a competitive strategy. To
develop and keep growing, these companies need stronger leadership and qualified
management.

  Sales and Exports of Surveyed Firms in 2007
         EXPORT OF
        TOTAL SALES,
            EUR
        5,909,177,96
            22%


                                                                         EUR
                                                                    20.369.772,26
                                                                    TOTAL SALES




In what occupations are workers employed among selected apparel firms?
28 | P a g e

A total of 67.7% of employees in the selected firms are sewing machine operators and retail sales
persons. Only 3.4% are in management positions. The most common top management position
is general manager, occupied often by the owner of the company or his/her family member.

Although all are production companies with a significant number of employees and expensive
equipment, only 6 of the 11 have a production manager, and only 3 reported having operations
managers. Only one company has a human resource manager, and only 4 companies have
marketing and sales managers. Owners and/or family members are performing the task of
fashion designers. Two companies with their own brands have no fashion designers formally
educated for this position. Only one company has a market analyst.

Table: % of currently employed in identified occupations within selected firms

Sewing machine operators                                                         46,7%
Retail Salesperson                                                               21,0%
Textile Knitting and Weaving Machine Setters, Operators, and Tenders              6,3%
Weighers, measurers, checkers, and samplers, recordkeeping                        3,8%
Cutters and Trimmers                                                              3,4%
Bookkeeping, accounting clerks                                                    2,2%
Sales Representatives (wholesale and manufacturing)                               1,9%
Patternmakers                                                                     1,9%
Stock clerks and order fillers                                                    1,8%
Fashion designers                                                                 1,6%
Tailors, dressmakers, custom sewers                                               1,5%
 Other                                                                            7,9%
Source: Skills Gap Survey, Companies’ Questionnaires 2008

Only 50% of the companies surveyed have job descriptions for the above positions. Some
reported they have job descriptions but they are not using them in practice.

                           Employees in apparel industry occupations             Tailors,
                                                                              dressmakers,
                                           Fashion designers                 custom sewers
                                                                                   2%
               Textile Knitting and   Engineers 3%
                Weaving Machine          2%
               Setters, Operators,                                      Cutters
                                                                                Patternmakers
                  and Tenders                                             and
                                                                                      3%
                       10%                                             Trimmers
                                                                          5%



                                          Sewing machine
                                             operators
                                               75%



Source: Skills Gaps Survey, companies’ questionnaires 2008
29 | P a g e

There is a concern whether there will be enough sewing machine operators in the future, given
that fewer people are interested in entering the sector due to the low wages. It is notable that
some companies have started to make their products in China where production costs are lower
and productivity higher.

For those who continue to produce in Serbia, much needs to be done in the area of productivity
improvements and quality control to remain competitive. Moreover if they decide to continue
production by subcontracting local firms they will need to build their capacities in outsourcing
management. The education sector needs to get involved more closely with the private sector to
address the current and future needs and help the apparel industry develop a sustainable
future, considering all global constraints.

       3.3.2.   Anticipated Job Growth

Surveyed companies reported expected job growth of 192 new jobs in the next six months to one
year for the following occupations: sewing machine operators (99 jobs), retail sales persons (47
jobs), management (13 jobs), and 33 jobs in other industry-specific occupations, including
among others pattern makers and fashion designers.

       3.3.3.   High Impact jobs

High impact jobs identified by companies as the most important for growth and
competitiveness of their businesses:

                                           Fabric and apparel pattern makers
                                           Fashion Designers
         Apparel Specific Occupations      Quality Control
                                           Weighers, measurers, checkers, and samplers,
                                           recordkeeping32
                                           Marketing managers
                                           Sales managers
           Cross Cutting Occupations       Production managers
                                           Operations managers
                                           Buyers

Companies identified several problems in finding people for high impact jobs:

           In the smaller cities and rural areas where many companies are based, it is hard to find
           workers such as textile engineers, experts for marketing, sales and finance.

           Mobility of employees is very low. Workers are not willing to commute to work. This is
           a problem as the majority of firms are outside main cities. Also, transport costs are
           significant for both employer and employees. Companies located closer to urban areas
           confirmed that they are already experiencing difficulties in finding workers. One



32   (in Serbian: normirci)
30 | P a g e

         company reported that all of their employees are from neighboring villages, and that the
         company is paying their monthly transportation costs.

         Companies also identified challenges with fashion designers, who are lacking in market
         orientation and flexibility. They reportedly have a hard time accepting the market's
         response to new collections and often refuse to make changes which would improve
         market acceptance. This is a direct result of an education system where a
         market/customer approach is completely missing from the curricula.

         There is also a deficit of pattern makers. Almost all pattern makers with experience are
         already employed. There are no available trainings in pattern making at the local
         market. The curriculum in schools is outdated and is not in line with modern
         technologies. This deficit could be mitigated by providing basic and advanced pattern
         making trainings such as those described below.

An example of curricula for pattern making is available in Annex: Folder Apparel

The Union of textile firms on Sept 1, 2008 opened a training center for the textile industry. Two
                                                  month-long
firms, Modus and Prestige, are organizing a 3 month long training in pattern making and
sewing for 15 candidates with degrees from textile and design schools (fashion designers and
pattern makers) more information is available at http://www.unijatex.com/index2.html

         Lack of skills among current employees

The surveyed companies identified a lack of the following s skills among current workers: 35%
are soft skills, 25% technology skills, 15% basic workplace skills, 15% foreign language skills,
and 10% basic literacy.

                           Lacking Skills for the Key Positions
          Soft skills                                              Basics (attendance,
    (communication, time                                          appearance, attitude)
      management,self-                                                     15%
     motivation, problem
        solving etc.)
             35%                                                         Foreign Language
                                                                               15%




                                                                      Literacy
                                                                   (Math/Reading)
             Technology                                                 10%
                25%

Source: Skills Gaps Survey, apparel companies’ questionnaires 2008
31 | P a g e

Interviewed companies identified the following trainings as the most important for the next
year:

          1.     Teamwork skills                           4.   Leadership
          2.     Problem solving skills                    5.   Technical job performance
          3.     Foreign Language Skills                        skills
                                                           6.   Communication skills
                                                           7.   Change management skills

If companies could do one thing to improve their abilities to hire and retain workers in the key
positions they would:

                  Offer better salaries
                  Provide staff training
                  Improve their internal structure and organization and have precise job
                  descriptions, which would lead to better performance

     3.3.4.    Educational institutions

Educational programs for apparel are organized at:

         Vocational School for Design, Technology and Management, Belgrade www.vtts.edu.yu
         Vocational technical school Zrenjanin, www.vts.zr.edu.yu
         Faculty of technology Leskovac,
         http://www.tehnoloski.burina.net/index.php?page=tekstil
         High Vocational Textile Technical School, Leskovac http://www.vttsle.edu.yu/english
         High Technical School, Arilje http://www.tehskola.edu.yu

Available curricula are available in Annex 3: Apparel)

     3.3.5.    Recruitment, retraining, training and cooperation with schools/universities

Companies are recruiting employees by using the National Employment Service (NES), through
ads in newspapers and referrals or HR professionals. One of the reasons for using the NES is the
financial incentives offered by the government for employing workers registered as
unemployed. The NES also organizes retraining programs for unemployed interested in apparel
jobs through the EU funded project “Working together to a job 33“. In 2008, they organized a
two-month long retraining course in tailoring for 45 unemployed. These trainings took place in
Sirmateks, a company for manufacturing and trade of textiles in Basaid, which was interested in
offering jobs for an indefinite period of time to successful trainees.

Companies are relatively satisfied with their cooperation with schools and while they are
working with professors, this cooperation is not institutionalized. One company reported that


33The project is financed by EU, and implemented by GOPA Consultants in cooperation with National
Employment       Service,  and    the  Ministry   of  Economy    and    Regional    Development:
http://www.radimozajedno.org/index.html
32 | P a g e

the local vocational apparel school is organizing practical work training in the company, which
is also a good way for the company to identify future workers34. All companies mentioned that
schools need to be educating students for more practical work, and that students are not well
prepared for future jobs.

Moreover, professors reported that there is resistance to changes and adjustments to new
technologies inside the educational institutions. Additionally, there is a need to invest in new
technologies (e.g. different software applications) and train professors to teach new skills using
new technologies.

Although companies generally believe that their workers are not well trained, they hardly ever
organize on-the-job trainings. When they do, this is for technical skills mostly, and rarely for
soft or management skills.

Two companies reported bonus programs for their employees although one gave incentives to
the group of workers if they exceeded norms. In such a low wage industry where workers are
motivated to earn more money and have the opportunity to do so on a regular basis through
bonuses, work team bonuses generally have a positive impact on efficiency, quality, and worker
satisfaction. This tends to be true if the work (bonus) teams are made of real interrelated
positions, not just people who work near each other.

While owners believe that there are no major obstacles for career progress in the industry, and
that the only things missing are motivation and commitment of employees. However, this
contradicts our findings since when it comes to employing new workers, particularly for
management positions or fashion designers, the owner and/or family members are filling these
positions and are not so willing to employ someone outside the company. On some occasions,
when someone outside the company was employed, family members resisted making changes
and refused advice. At the end of the day, new workers are just “helpers” to owners, and
instead of bringing added value to companies, their capabilities are underutilized. This may be
one of reasons the why apparel companies are finding it extremely difficult to find workers for
positions where a university degree is required, such us in management, sales, design etc.

There is no doubt that apparel is a labor-intensive industry; wages are lower and budgets for
retraining programs are scarce. On the other hand, unlike other sectors which we examined
during the course of our analysis, industry players in the apparel sector generally lack an
understanding that more expertise in management, operations, marketing and sales, would
help them operate more effectively and efficiently thereby increasing sales and exports. Such
training would enable firms to develop strategies for their future (e.g.,
outsourcing/subcontracting strategies) and be ready for challenges in the local and global
apparel industry.




34   Jasmil, Arilje
33 | P a g e

      3.3.6.   Recommendations

Possible firm level interventions:

          Support Strategic Management and Leadership Trainings
          Provide management and leadership trainings for owners and managers
          Provide trainings focused on formulating a competitive strategy
          Provide soft skills trainings on subjects such as motivating employees, effective
          communications, team building, problem-solving, etc.

          Marketing and Sales in Apparel Trainings
          Provide marketing trainings and sales trainings for management
          Provide market assessment and merchandising trainings for designers
          Provide retail sales trainings (customer support, retail store management and sales)
          Provide technical assistance to companies to develop marketing strategies, and to train
          staff that will work on implementation of these strategies

          Pattern Making Trainings35
          Provide pattern making trainings (basic and advanced), using advanced technologies
          Provide TA to companies to improve skills of employed pattern makers

          Provide Training and Technical Assistance for HR and Management
          Develop bonuses and incentive programs for employees
          Develop outsourcing and subcontracting plans for companies in need of increasing
          production capacity
          Develop on-the-job training programs in companies for current and new employees

          Provide Finance Training for Managers
          Profitability, cost calculations, budgeting, projections

          Provide Business English Courses
          Provide grants to apparel firms for business English course for management and
          marketing positions

          Support Development of Internship Programs in Local Apparel Firms
          Provide know-how to industry associations and university career centers on how to run
          effective internship programs

Possible sector level interventions:

          Introduce a Worker Training/Retraining Program using the Quick Start Training
          Methodology (as described above) to support development of adequate vocational
          educational programs and on-the-job trainings to meet the current skills needs in the
          sector


35   Resource link: http://www.apparelsearch.com/consulting_pattern_making.htm
34 | P a g e

         Increase Access to Information on Global Industry Developments and Trends
         Improve access to information about global trends and developments in the industry in
         the Serbian language (articles, books, news, case studies)

         Curricula Development
         Work with vocational schools and universities to introduce marketing in apparel in their
         curricula and train teachers (examples of marketing in apparel courses are enclosed in
         this report in Annex 3: Apparel)
         Work with schools and universities to introduce/improve pattern making in their
         curricula and train teachers (example of apparel courses are available in Annex 3:
         Apparel)

         Update Technologies
         Support universities with up-to-date technologies to be used in teaching (e.g. software
         for fashion design and pattern-making)

         Access to Finance
         Support companies in obtaining financing by informing them about all existing sources
         of finance, both local and international;36

3.4.     SECTOR: FILM AND PRODUCTION

     3.4.1.    Sector Overview

The Industry can be broadly divided to the three phases of filmmaking; preproduction,
production, and postproduction.

         Preproduction is the planning phase, which includes budgeting, casting, finding the
         right location, set and costume design and construction, and scheduling.

         Production is the actual making of the film. The number of people involved in the
         production phase can vary from a few for a documentary film, to hundreds for a feature
         film. It is during this phase that the actual filming is done.

         Postproduction activities take place in editing rooms and recording studios, where the
         film is shaped into its final form.

         Preproduction capacities in Serbia are underdeveloped. Most of production companies
         in Serbia are “start-ups”, established to carry one project (film) and to be closed after it is
         finalized. Postproduction companies are established businesses, while the rest are more
         freelancers. The number of permanent staff in most service providers in the sector is
         very small, up to 10 in the best cases, and this is mostly in postproduction companies.
         There are constant fluctuations, and work is limited to projects. This influences the
         strategic growth potential of the sector and future developments.

36Defining and Strengthening Sector Specific Sources of Competitiveness in the Western Balkans, OECD,
2008.
35 | P a g e

         Simply put, there are a limited number of filming activities in Serbia and, as a result,
         many production companies are making their living by working more in advertising
         and video production.

The Serbia Film Center37 through cooperation with the Ministry of Culture of the Republic of
Serbia manages funds38 that are available as grants to individual film projects that seek to
provide support to emerging independent producers, who have to compete with the previously
monopolist production studios. Calls for proposals are publicly announced, as are the results of
the calls. The use of funding opportunities could be improved from both sides in terms of
transparency of criteria, and the quality of proposals and/or funding applications to meet the
required criteria. However, these funds are used for developing Serbian content and do not
respond to the actual capabilities and needs of production firms.

Euroimage, which provides grants for European filmmakers, is another potential source of
financing. Serbian filmmakers won 11 grants from Euroimage in value of EUR 3 million in the
last three years. Notably, one large domestic investment has been made in this sector (Pink Film
International studios), and foreign film producers have secured financing for Serbian
production (2-3 films produced in 2007). Sony is providing two-year interest-free loans for
purchasing equipment to domestic filmmakers.39

Total funds approved by the City of Belgrade in 2008 for film are CSD 50 millions (EUR 625,000)
to co-finance production of 24 projects – documentary films, long and short featured films,
animation, and experimental. For the first time, the City will also support the production of
featured films for children.40 In Vojvodina, the Secretariat for culture approved funds for co-
financing of 28 projects in amount of CSD 19 millions (EUR 245,000).41

     3.4.2.    Workforce

Serbia has a reputation for high-quality film crews and a strong base of creative talent. The
country also has lower labor costs than most markets in the region, and other cost advantages in
lodging, food costs, etc., which create competitive advantages for filming in Serbia. One of the
main disadvantages, however, is the lack of tax incentives and adequate legislation to promote
growth of the industry. A draft Law on Cinematography, which is not yet adopted, would
provide authorization for tax incentives and other benefits to attract foreign film production.




37 http://www.fcs.co.yu/eng/generic.php?page=fcs (Film Center is a government organization)
38  http://www.fcs.co.yu/eng/generic.php?page=film_funds Film Center Serbia – Film FUND, City
Council of Belgrade - Film FUND,
www.beograd.co.yu, Autonomous province of Vojvodina - Provincial Department of Education and
Culture - Film FUND, www.psok.org.yu
39 Film Sector Opportunities and Constraints Study, USAID Competitiveness Project/Booz Allen

Hamilton 2007
40 Posted by: www.seecult.org on Wednesday, July 02, 2008 - 03:32 PM CET
41 http://www.psok.org.yu/PSK/index.htm
36 | P a g e

Wages in the sector are relatively high for Serbia. Few people are employed in industry-specific
occupations related to filming, but filming as such employs workers in every major
occupational group.

The range of skills required is broad (management, logistics, digital processing, sound,
production, etc.), making it hard to estimate the total skill level in the economy. However, there
are strong technical skills available in the local market, though certain specialized skills and
experience working on international sets is lacking. With sufficient training and salary levels,
the industry could attract the portion of over 12,000 estimated graduates in 2005 that have
relevant basic skills.

    3.4.3.     Skills Gap Analysis

The analysis considered current and future skills gaps/needs that are important to prepare the
workforce for future growth opportunities that may result from better access to local and EU
funds for filming, privatization of state film companies, and opportunities to attract foreign
investors to Serbia -- all of which should create more jobs.

The film industry in Serbia has an experienced workforce, including individuals who have
international and Hollywood experience and have returned to Serbia in recent years. Serbian
filmmakers and film crews are well recognized within the industry as being a regional leader,
with Serbian crews often working on productions in Bulgaria, Romania and all former Yugoslav
countries. However, the industry faces a multitude of difficulties keeping skills levels apace
with the changing needs of the industry. The industry also has, on average, an older workforce
with few structured, equitable routes in for new talent from a diversity of backgrounds.

Interviewed companies reported a need for: advertising, marketing, promotions, and public
relations; financial and sales managers; lawyers specialized film and equipment insurance and
contracting with international firms; computer specialists; experienced professional producers,
screenwriters, and sound engineering technicians; and camera, television, video and motion
picture operators.

    3.4.4.     High impact jobs

High impact jobs identified by companies and interviewed stakeholders as the most important
for growth and competitiveness of the industry are:

                                          Producers
                                          Writers (screenplay writers) and scenario developers
                                          Special effects specialists
                                          Sound engineering technicians
     Film Sector Occupations
                                          Camera operators
                                          Storyboard specialists (using specialized software)
                                          Specialists for color corrections (postproduction)
                                          Location managers
37 | P a g e

                                          Project Managers
                                          Operations Managers
                                          Finance managers
     Cross cutting occupations
                                          Advertising, marketing, promotions, public relations,
                                          and sales managers
                                          Outsourcing management/Subcontracting
                                          Legal Experts (insurance for film and equipment)

                                          Web designers
  Digital Animation Occupations
                                          Digital Animators



    3.4.5.     Recruitment

Most people working in the industry are getting jobs through a word of mouth rather than any
formal agency or advertisement process.

There is no casting agency in Serbia and no auditions for actors. Casting is not used as a
standard recruitment practice, and is very rare.

Film crews are usually hired on a temporary basis for a specific project. Although the daily rates
are very competitive for the region, the taxes and benefits that are required by the government
are exceptionally high.

    3.4.6.     Key Findings

Industry representatives emphasized that very often common filming process phases are not
followed, as well as roles that each professional in the process, with the result that for the same
film, an editor/film director can be ‘everything’ – from screenwriter and fundraiser to main
actor. Sometimes this is due to limited budgets, but very often this is a result of poor or no
preplanning prior to filming (i.e., scenario development) and an attitude that the editor/film
director knows best. This undermines the importance of each occupation in the industry and
limits professional development within specific job categories, which hinders overall growth of
opportunities in the entire sector/industry. This also results in serious delays, budget overruns,
dissatisfied crew, and reductions in the quality of the final product.

Company representatives reported that in general employees in the film industry in Serbia are
lacking flexibility and adaptability of skills, which is very important, since the nature of the
work in the film industry requires that people are able to easily adapt in response to
unpredictable or unexpected events, pressures, situations and job demands; effectively change
plans, goals, actions or priorities as necessary; and willingly embrace new approaches when
appropriate and discard approaches that are no longer working.

The preproduction sector is weak in some segments (budgeting, casting, location scouting and
management, financing, set and costume design and construction, and scheduling) and
consequently these skills are in deficit:
38 | P a g e

            Project management (planning and implementation)
            Fundraising skills including proposals writing, budgeting, and reporting
            Pitching skills
            Casting and audition
            Film budgeting and scheduling skills
            Lack of Locations management (data collecting, promotion, management). There are a
            number of skilled freelance locations managers but locations management in general
            needs to be more developed, and preferably incorporated if more films will be made in
            Serbia. There is a need for shifting from one-person knowledge and experience to a team
            that is able to provide full service data on locations, and promote and manage locations.
            An NGO has been identified through the SGA process - called “Location Hunters” – that
            has started to work on gathering the data on locations, and that could represent an
            important support vehicle to the entire film industry.

The SGA survey on film production workforce highlights the need to broaden recruitment and
tackle the barriers faced by those within it in order to cultivate and retain a new young
generation in the workforce, which can gain valuable skills and experience by working with the
more experienced members of the workforce.

The survey findings also point out the need for the film industry to be more open and recruit
from the widest possible pool of talent, while providing better skills training for new entrants
and those already working in the industry. At the moment the new talent has difficulties in
accessing opportunities in the film sector.

Developing the film production workforce must be strengthened with a commitment to
diversity, continuous training programs for those in the industry, as well as a more market
oriented approach through the education system.

Also, there is a need to keep the pace with new technologies – there is a major retraining issue,
affecting all sectors of the film industry.

    3.4.7.     Education

Formal education

In the film sector there are two public and three private faculties offering degree programs:

    (i)        Faculty of Dramatic Arts at the University of Applied Arts in Belgrade:
               http://www.fdubg.com/
    (ii)       Academy of Arts within the University of Novi Sad, Drama Department:
               http://www.akademija.ns.ac.yu
    (iii)      Megatrend University, Faculty of Arts and Design, Department of Film:
               http://www.fudmegatrend.net/
    (iv)       BK Art University, Art Academy, Art and Media Production Department:
               www.au-bk.edu.yu
39 | P a g e

      (v)      Singidunum University, new program for Documentary film - at present in the
               preparatory phase: http://www.fmk.singidunum.ac.yu/

Available study programs are enclosed in Annex 4: Film.

In general, there is a lack of connection between the market needs and trends and educational
programs. For example, the University of Applied Arts does not have an in-depth course on
digital animation; therefore there is a shortage of skilled digital animators for which there is
growing demand. As a result, the industry has limited capacity when it comes to this sub-sector.

The situation with privately owned Universities is slightly different – BK University, Megatrend
University have courses that are a bit more advanced - meaning the lecturers teaching these
courses are more open to changes in terms of following market demands and trends. Lectures
are more linked with the market and industry trends. They have also introduced new teaching
methods and involved students in the real projects.

At the Faculty for Media and Communications of the Singidunum University there is a plan to
launch a new curriculum for documentary movies as a result of a regional project with a
Macedonian film company “Trilema” and the French embassy. This also demonstrates a
reaction to market forces in adapting curricula.

Informal education

Informal education that includes film industry specific skills is underdeveloped. There are a few
courses available at “People’s University – Bozidar Adzija” for TV and media (sound specialists,
and camera specialists). There are also few film schools for animated film (in Vranje, and
Belgrade) and schools and trainings centers for documentary film Kvadrat and Varan.42 These
programs are not degree based and those who successfully complete a course obtain a certificate
of appreciation. Chiron, a private digital animation training center, is Alias Certified Training
Center whose students obtain Alias certificates. Some film schools, like Kvadrat Film School43,
have completely different practice – after completing a course the students create their own
movie instead of receiving a diploma.

Currently there are no internship programs (in very rare instances students collaborate on joint
projects with companies based on their own initiative). Some postproduction companies take on
students for a week-long practice.

General findings for education:

            The current curriculum does not provide relevant industry competencies, as the course
            literature and technology do not follow industry trends. As a result, the graduates enter
            the industry with no real understanding of the market and with a lack of key skills and



42   www.kvadrat-film.com/index_eng.htm, www.varan.org.yu/about/about
43   www.kvadrat-film.com/index_eng.htm
40 | P a g e

        preparedness for work at entry level. Many of the skills perceived as gaps are also in
        business and management.

    3.4.8.     Recommendations

        Bring industry and education sectors together to improve curricula to bridge industry
        skills needs and current study programs

        Provide relevant workshops and software to Universities that would allow for new
        curricula/skills in the following areas:

               -   Screenplay writing - Specialized workshops and software for screenplay
                   development (Final Draft, Movie Magic, Screen Writer) in order to produce more
                   skilled SP writers that would expand their capabilities and meet certain industry
                   criteria.
               -   Film Budgeting
               -   Scheduling
               -   Film pitching and promotion

        Introduce management, marketing and soft skills into curricula for producers

        Provide training/assistance for the industry to understand clear roles of each
        occupation in filming projects (what are the tasks, activities, skills, abilities, that one
        needs in order to successfully perform jobs using international standards and the most
        developed film industries. (Annex 4: Film - Examples of Occupation Descriptions). This
        will also support new curricula development so that whatever is included in the
        programs is linked to competencies.

        Have guest lecturers (prominent individuals from the industry – national and
        International as well as academic staff from other film related Universities from EU or
        US) at the Universities in order to: introduce New teaching methods to the professors
        and introduce the students with different curricula or work with them on particular
        assignments (digital animation, screen play writing, production)

    Internship Programs

        Ensure that both future and existing workers in the film industry are informed about the
        need and the opportunities available to develop/improve their film skills

        Create Internships and shadowing opportunities that would be encouraged and
        developed for freelancers and company employees so they can understand the nature of
        job roles in different parts of the supply chain.

        Support offering of specific career information and advice for the film industry
41 | P a g e

    Industry Training [outside of education sector]

       Provide training to film producers and other film management to improve skills in basic
       business skills, management and marketing, and soft skills (problem solving,
       communications, etc.)

       Provide trainings in: film fundraising and pitching, and project management (for more
       information, see http://www.ec.europa.eu/media “Where to be trained in Europe” and
       Annex 4: Film)

       Trainings in screenwriting, creative writing, synopsis writing etc.

       Trainings and courses addressing specific sector and subsector skills needs (Digital
       animation, Sound, Color, etc)

       Encourage collaboration and make links with training providers and adapt models of
       good practice from the European and US film industries.

       Establish stronger relationships with equipment companies and manufacturers: these are
       also essential for meeting individual and company development needs, in particular with
       new knowledge technologies and/or use of particular specialist software.

       Support advocacy efforts for the new Law on Cinematography to enable a better
       environment for the industry to grow and develop

       Promote diversity in the workforce by ensuring that all parts of the population have
       equal access to becoming involved in the film industry, making the most of potential
       talents available.
 42 | P a g e

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         Qualifications Frameworks, 2005 Published by: Ministry of Science, Technology and Innovation
         Bredgade 43 DK-1260 Copenhagen K, http://www.vtu.dk ISBN (internet): 87-91469-53-8
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