Cooperation of MYTILINEOS with the organization Equal Society for the implementation of the project: Assessment of the social value of the program "ENGINEERS IN PRACTICE" through the advanced international methodology SROI
MYTILINEOS was founded in Greece in 1990, has been listed on the Athens Stock Exchange since 1995 and is a member of the FTSE LARGE CAP high capitalization index and a leading international industrial and energy company. The Company is active in the fields of Metallurgy, Electricity and Natural Gas, Sustainable Development Projects, and the Renewable Energy Development and Storage Sector, with more than 4,800 direct and indirect employees and more than 9,000 overseas employees. Its complex business activity is a driving force for the Greek economy, while it has a dynamic presence on all 5 continents with a consolidated turnover of € 2.6 billion.
MYTILINEOS pioneers applying the SROI (Social Return on Investment) methodology for the first time in Greece, in the field of Industry, in paid vocational training programs in order to highlight the great social value they produce so that other large companies can follow this example. contributing to reducing the skills gap between university training and the demands of the modern market but also to integrating new graduates into the labor market.
Despite the excellent results of the program, with the most important one being the integration in the labor market of the 11 new engineers three months after its completion, MYTILINEOS proceeded to the application of the SROI methodology in the specific program, with a dual goal:
To measure its generated social value and to fully capture all the advantages that such actions have for the substantial support of society as a whole and
To contribute to the more prudent use of its social resources, contributing to a society with more equality in a sustainable environment.
The results of the analysis were presented as a case study in the official presentation of the "GEFYRA" program of the Greek CSR network. where MYTILINEOS is one of the first companies to declare their formal commitment to consolidate partnerships between the business and academic community and, above all, to create a new model for companies to offer quality "preparation for employment" positions for young people, reducing the gap contributing to tackling brain drain, boosting youth entrepreneurship and helping to reduce youth unemployment for the period 2017-2019.
Businesses, in order to be competitive in global markets, need young people with knowledge, skills and abilities. The mismatch between the supply and demand of skills in Europe and internationally has resulted in a significant potential human capital remaining untapped. We live in an age of rapid technological developments, where the promotion and encouragement of innovative ideas, especially by the younger generation, is imperative as it contributes greatly to business. Based on the above, it is understood that the issues of youth training and employment are and will be relevant in all areas of work in order to achieve sustainable growth and innovation to a greater extent. MYTILINEOS is actively and practically responding to this challenge, which has made the support of young people one of the main priorities of its Social Responsibility, with the aim of contributing to the reduction of unemployment and the enhancement of social development. With confidence in the potential of the young graduates of the country, MYTILINEOS supports innovative initiatives but also takes care to provide incentives and opportunities to gain valuable experience and know-how. In this context, it implements the social program of 12 months of paid vocational training "MECHANICAL PRACTICE".
The recent OECD report (especially for Greece) states that the unemployment rate has remained steadily close to its highest level since the crisis began (27.2% in May 2014) and predicts that unemployment will remain high (about 27%) by the end of 2015. The report also states that in Greece the total risk of becoming unemployed and the expected duration of being unemployed is very high, while the insurance mechanisms against unemployment (the coverage with benefits and the generosity of unemployment insurance) are among the weakest among OECD countries. In the main areas of activity of MYTILINEOS the unemployment rates are as follows: Attica: 27.9%, Thessaly - Central Greece: 26.2%. Enhancing employment is an internationally recognized goal of economic and social development. MYTILINEOS continues to analyze the impact of its investment decisions in the field of job creation and, where this is economically viable, to create jobs through these investments. In addition, it supports its supply chain in terms of the percentage that can be spent on local suppliers, thus indirectly supporting the maintenance and creation of jobs in their companies.
Benefiting young engineers
Sustainable Development Agencies
July - September 2017
The Social Return on Investment (SROI) methodology provides a framework for measuring and calculating the broader socio-economic value generated. This methodology measures the results of an action based on the experience of the stakeholders themselves. It tells the story of the change that the activity has brought to each involved through the measurement of social, environmental and economic results and uses monetary values to evaluate them. This allows the calculation of a benefit / expense ratio.
The SROI methodology is based on 7 principles which are: the direct involvement of all stakeholders, the understanding of the theory of change, the attribution of book value to what has value, the selection of results that are important, the avoidance of over-claiming results, transparency and results verification.
Following the basic principles, the final index of social impact is calculated, which is the ratio of benefits / costs of the action or organization we are studying. It should be emphasized that the SROI index does not focus on monetary units, but because money is a common unit of measurement, it is a useful and acceptable way of converting and measuring the value that is created. In essence, the SROI index shows the social value that is created or destroyed as a result of an activity, taking into account the results / changes experienced by those involved, but turning them into accounting terms. For example, a SROI ratio equal to 2: 1 means that a 1 euro investment produces 2 euro social value.
Although the report of the actions already taken is very important, the most important advantage of SROI is the possibilities it offers for the strategic planning of new activities of each organization through the participation of the final beneficiaries in the realization of the study and the definition of the desired results. .
The participation of those involved was carried out with electronic questionnaires and semi-structured telephone interviews. More specifically, for the beneficiary engineers the study was carried out using electronic questionnaires and telephone interviews.
Three telephone interviews were conducted to identify the changes experienced by the employees who participated in the program.
Telephone interviews were also conducted for the other stakeholders, MYTILINEOS and ALUMINUM OF GREECE with the representatives of each stakeholder.
In addition, secondary and statistical data were used in the analysis as recorded and maintained by MYTILINEOS and the Metallurgy Sector.
The purpose of this analysis was to assess the social impact of the program "ENGINEERS IN PRACTICE" implemented by MYTILINEOS.
The total costs of the action amounted to 235,000.00 euros. Taking into account the changes experienced and reported to us by those involved in the program, it was estimated that the total social present value produced for the period under review amounted to € 997,109. The final index that emerged through the SROI methodology is equal to € 4.24. This means that for every 1 euro invested in this program, 4.24 euros of social value were produced.
According to the results of the analysis, the high index is formed by the highest percentages of change that result from the psychosynthesis and the dynamics that the beneficiaries acquire, from the networking and the immediate finding of their next employment, from the new full-time staff that joins the ranks ALUMINUM OF GREECE while MYTILINEOS is experiencing significant changes mainly through the social sensitivity developed by the employees involved.
The distribution of the social value (997,109 €) to all involved is as follows:
Beneficiary Engineers: 50.36%
Aluminum of Greece: 40.88%
Employees who participated in the program: 1.54%
Beneficiaries (11 young graduate Engineers who participated in the program)
The beneficiaries, through their 12 months of paid work and the training that took place for a total of 100 hours, experienced significant changes. More specifically, the beneficiaries through the training they received as well as through their occupation, acquired knowledge about the operation of a modern working environment, significantly improving their professional skills, such as management, people management, crisis management, etc. .
As it has already been mentioned, all the Engineers are already in corresponding positions of big companies such as Syngenta, Nestle, Phillip Morris, La farge, Motor Oil, Bic, Famar, Hellenic Gold, ALUMINUM of GREECE. Beneficiaries also stated that they feel satisfied in their subsequent work.
Through the program, the beneficiaries gained more optimism and boosted their self-confidence, receiving enough supplies for their professional careers. From the reports of the respondents of the program it was found that the level of their job searches has increased or they are claiming better financial gains.
The changes experienced by the young Engineers are enough, however, to avoid the possibility of a change being duplicated in the analysis, because there is an interaction between them, the following are listed and evaluated: 1) Improvement of Professional Skills, 2) Finding a Job after the program , 3) Increase of their personal income, 4) Enhancement of self-confidence and optimism, 5) Knowledge about the operation of a modern working environment, 6) Job Satisfaction in their later work and 7) Acquisition of Expertise and professional experience in their specialty .
Below is the distribution of the social value created for the beneficiary Engineers (502,144 €), of the main target group of the program.
We observe that most of the social value that is created concerns:
Finding a job after the end of the program: 57%
The increase of their personal income: 17%
Gaining professional experience in their field: 14%
Change of knowledge of a modern professional environment with participation in the produced value of its order: 5%
The remaining changes contribute a total of 7%.
It is noted that for the calculation of the total value produced each result / change recorded during the analysis were included as a percentage of the change three important parameters that contribute to the net assessment of the impact of activities.
Displacement: What other activity / change did the action replace?
Attribution: Who else has a share of responsibility for change?
It is also taken into account that the effect of a result decreases with the passage of time (drop off) which is defined as 10% as a percentage reduction of the effect of the results on those involved.
The analysis took into account a five-year time horizon as, over the years, more and more factors affect the stakeholder and not just the change itself. Therefore, the future value of the results was calculated over a five-year period with a discount rate of 3.5% for each year.
Working with Organization
The implementation of the project was done in collaboration with the certified body in the application of the methodology SROI (Socila Return on Envestment) Equal Society.
(Employees of the Metallurgy Sector, employees of the Central Human Resources Services and Corporate Social Responsibility Service)
Benefits for Οrganization
The program "ENGINEERS IN PRACTICE" produced a high index of SOCIAL VALUE creating an absolutely positive social impact by providing significant changes and benefits to those involved.
The analysis showed that this program has a positive index and is higher than the unit (4.24: 1) which means that the social return on investment in this program was greater than its operating costs. As evidenced by the analysis the psychological uplift and the professional security of the beneficiaries, the highlighting of the dynamics of the CSR department. of MYTILINEOS and the fact that ALUMINUM OF GREECE, acquired trained productive executives who were arrested with their work in achieving the goals of the company are the greatest achievements of the initiative.
Metallurgy Sector (ALUMINUM OF GREECE)
The characteristic change that occurred in ALUMINUM OF GREECE is that on the one hand he gained similar experience and know-how in such programs (graduate programs) and on the other hand the moral satisfaction from their implementation as he helps to deal with the phenomenon of high unemployment among young graduates. work due to lack of professional experience. Also, through the program, ALUMINUM OF GREECE acquired trained productive executives who were arrested with their work in achieving the goals of the company. The only issue here is the burden of the man-hours of the employees who were already involved in the program.
The Human Resources Divisions of ALUMINUM OF GREECE and MYTILINEOS were mainly involved in the candidate selection process. Also, the heads of the main Directorates of the companies participated in the initial training of the new Engineers. The participation of the Managers and the supervisors in the coaching and the continuous evaluation of the new engineers they had in their department was essential. The employees of both MYTILINEOS and ALUMINUM OF GREECE who participated in the program "ENGINEERS IN PRACTICE" feeling professional satisfaction through their work have acquired more knowledge in their professional field and more skills, thus increasing their efficiency. Through their work and their involvement in such actions they have become more aware of various social issues. The three main changes that resulted from the evaluation of the reports are the following: 1) Acquisition of New Professional Experiences, 2) Development of Social Awareness, 3) Improvement / Development of professional knowledge & skills.
MYTILINEOS as involved in the program gained several benefits and experienced changes mainly in terms of strengthening its Corporate Social Responsibility, which led to awards and distinctions and made the company stand out. In addition, MYTILINEOS benefited in terms of staff renewal as for one year it employed 11 new people who offered the benefits of a new employee such as new ideas and different perception. In addition, the business needs of the company were covered through the program.