PORTO NORTE

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Summary Presentation_2017.07.19

We would like to thank Porto Council, in the person of Prof. Ricardo Valente and Cláudia Soares, for taking on this challenge and mobilizing the means for its execution.

A big thank you to all the companies, universities and polytechnics, IEFP North and Center Regional Delegations, training entities and various public and private entities, who gave their time and knowledge to answer 3 major surveys carried out in the Study and in the various

face-to-face meetings.

Participated by Talent Portugal®: Luis Sottomayor, Miguel Peixoto, Ana Veva, Alberto Caria and Paula Garrido.

ACKNOWLEDGMENTS

The present study - Talent Map Porto Norte - was developed by Talent Portugal® for the Economic Development Department of Porto Council.

This is an innovative and integrated approach that allows mapping the demand for talent by companies in Porto and Northern region, in response to the growing challenge of the search for qualified talent by companies that have chosen the region to install their global operation centers.

Three aspects related to demand, skills and talent supply were analyzed. The needs presented by national and international companies were identified. The most sought skills and available resources were evaluated, namely: students of higher education, unemployed, foreigners, expatriates, academies and requalification, among others.

INTRODUCTION

The conclusions below are the result of interactions with more than 60 stakeholders. According to the observations, meetings and experience of Talent Portugal community, it was sought to clarify and sustain conclusions through statistical data sources and detailed questionnaires sent to representative entities.

For each variable the challenges and/or opportunities were identified, suggesting actions accordingly.

Subject to analysis criteria, this is a starting point promoted by Porto Council for discussion and taking of actions to the talent community of Porto Norte region.

The collection of information was very extensive, being presented partially in this study. For further information, please contact the Economic Development Department of Porto Council or Talent Portugal®.

talent map Talent Portugal® concept for integrated mapping of skills, talent demand and supply

1. Porto Norte region has attracted more and more international companies

2. In the region, there are many technology-based global companies

3. The key resource of these operations is talent, generating a strong demand for qualified human resources

FRAMEWORK

This strong increase in demand for qualified talent in the region raises new challenges:

• What information can be given to the companies about the talent available?

• How to respond to accelerated demand for qualified talent?

• In what sectors/skills are there more shortage?

• How to increase the availability of resources? • Which companies are recruiting the most and how do they have visibility

to the talent?

It’s necessary to perceive and map the drivers that move the involved stakeholders: • Where and what kind of talent is available?

• What are the candidates looking for in the companies? • What do companies look for in the candidates?

• How to make the talent known and their common interests?

• How to bring companies closer to talent? • How to adapt the supply of talent to the needs of the companies?

CHALLENGE

SUPPLY Universities Academies

Unemployed Foreigners

…

DEMAND Porto Norte Top recruiters

PROFILES IT

Engineering Finance & Account

Languages …

…

Diagnosis of current and potential talent supply in the region

Promotion of talent to support companies sustainability and growth

ANALYSIS

METHODOLOGY

Higher Education

Unemployed

Training Academies

High School

Foreigners

Companies

Emmigrants

SUPPLY DEMANDta

lent

map

METHODOLOGY

• 2 macro-regions with proximity and capacity of attraction to the 2 largest Portuguese cities • Cover district capitals within a radius of 150 km from the main cities

Coimbra district was incorporated into Porto macro-region by criteria of proximity and dimension, with the following representation:

Inhabitants 429 714 9,3%Higher Education Enrolled 34 935 21,6%Higher Education Graduates 8 846 19,8%Unemployed 2 803 10,5%

MACRO-REGIONS

METHODOLOGY

Porto macro-region Districts: Porto, Aveiro, Braga, Coimbra, Viana do Castelo, Vila Real e Viseu

Lisbon macro-region Districts: Lisbon, Setúbal, Leiria, Évora e Santarém

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37 11 12 2

2nd May 19 July2,5 months

Meetings with more than 60 stakeholders: companies, universities and academies, IEFP North and Center Regional Delegations, academies, associations, etc.

According to the registered observations, it was sought to clarify and sustain from statistical data sources, or through inquiries to the various entities.

For each situation, the challenge and/or opportunity was identified and suggestions for action were taken accordingly.

TIMELINE

METHODOLOGY

Porto, Aveiro and Braga Districts

Companies

BIG EMPLOYERS IN PORTO NORTE REGION (#37 SURVEY)

SOURCES | DEMAND

METHODOLOGY

Higher Education

• North Regional Delegation

• Center Regional Delegation

Unemployed

Training/Academies Foreigners

Porto, Viana do Castelo, Braga, Vila Real, Aveiro, Coimbra and Viseu districts

BIGGEST SOURCES OF TALENT (#24 SURVEY)

METHODOLOGY

SOURCES | SUPPLY

ENTITIES WITH STRUCTURED INFORMATION

METHODOLOGY

SOURCES | GENERAL

PRESENT MEETINGS (+28)

METHODOLOGY

SOURCES | MEETINGS

11%

14%

19%57%

ITFinancial Shared ServicesEngineering/IndustryCustomer Service

PARTICIPANT COMPANIES

DEMAND | COMPANY SURVEY SAMPLE

SECTOR COMPANIES

IT 21

Financial Shared Services 7

Engineering/Industry 5

Customer Service 4

TOTAL 37

• High growth: +10% in all sectors

• Exceptional IT growth: +1,500 jobs/2 years

• Customer service is a strongly employer

• Strong impact on the sustainability of local companies by the arrival of new large operations

NUMBER OF EMPLOYEES IN PORTO NORTE REGION, BY SECTOR (PORTO, AVEIRO AND BRAGA DISTRICTS)

1. Support companies in high talent deficit sectors (IT and Engineering)

3. Give visibility to areas where there is still availability of talent (F & A)

4. Promote new areas of supply (Law, Health ...)

ITFinancial Shared

Services

Engineering/ Industry

Customer Service TOTAL

Companies 21 7 5 4 37On 31.12.2016 2 535 954 6 871 10 519 20 879Average nº ofemployees 121 136 1 374 2 630 564Forseen in 31.12.2017 3 993 1 085 7 675 12 866 25 619Growth 1 458 131 804 2 347 4 740Growth % 58% 14% 12% 22% 23%

DEMAND | COMPANIES SURVEY SAMPLE

Source: COMPANIES SURVEY |

NUMBER OF EMPLOYEES TO BE HIRED BY PROFILE (NEXT 2 YEARS)

Source: COMPANIES SURVEY |

• The most sought profile is IT Developer, representing almost half of the demand for IT profiles

• Demand for engineering profiles is strongly growing

• In F&A, the most requested profile is accountant and financial

• Knowledge in languages is transversal to the other profiles, highlighting English as common language

DEMAND | BASE PROFILES

HIGHER EDUCATION GRADUATES 2015

SUPPLY | HIGHER EDUCATION

HIGHER EDUCATION ENROLLED 2015/16

Source: DGEEC |

• Porto macro-region has more students than Lisbon, but lower demand, thus greater availability resources at lower cost

• However, Lisbon has greater attractiveness, greater market and employment opportunities, better wages, albeit with lower quality of life and higher costs

Influence Area Nº %

Porto macro-region 44 546 47,12

Lisbon macro-region 40 077 42,39

Rest of the country 9 914 10,49

TOTAL 94 537 100,00

Influence Area Nº %

Porto macro-region 161 414 45,06

Lisbon macro-region 159 293 44,47

Rest of the country 37 486 10,47

TOTAL 358 193 100,00

Source: DGEEC |

1. Analyze in detail the migration of students from Porto district

2. Promote the increase of higher education offer in the region• Porto district exports students: the net balance is

996 students (it generates more students than it can absorb)

• On the contrary, in the Lisbon district, there is a positive net balance: + 2,923 students

Placed and enrolled

STUDENTS MIGRATION

Source: DGES |

SUPPLY | HIGHER EDUCATION

RECRUITMENT SOURCES

UP

FEUP - Faculdade de Engenharia 22%FEP - Faculdade de Economia 8%FCUP - Faculdade de Ciências 3%Outras faculdades 4%TOTAL 38%

IPP ISEP - Instituto Superior de Engenharia do Porto 16%ISCAP - Instituto Superior Contabilidade e Adm. do Porto 5%Outras escolas 1%TOTAL 23%

UM Universidade do Minho 17%UA Universidade de Aveiro 6%UC Universidade de Coimbra 3%IPC Instituto Politécnico de Coimbra 0%

IPCA Instituto Politécnico do Cávado e do Ave 1%UCP Universidade Católica do Porto 4%UPT Universidade Portucalense 1%UFP Universidade Fernando Pessoa 0%

Outras Outras entidades de ensino superior 8%

• Students come mainly from great universities (UP, IPP, UM) • Porto Norte region doesn't attract students from Coimbra... (although

they represent around 20% of the region's graduates)

1. Promote the analysis of all courses by HEIs to be known to the companies

2. Attract students from Coimbra

SUPPLY | HIGHER EDUCATION

Source: COMPANIES SURVEY |

FOREIGNERS HIRING

Brazil, United Kingdom, Uruguay, Poland, Georgia, Turkey, Czech Republic, Ukraine, France, Romania, India, Germany, Angola, Canada, Spain, Finland, Hungary, Iran, Italy, Poland, Romania, S. Tomé, Syria, Venezuela, Mexico, Cape Verde, Finland, Denmark, Switzerland, Venezuela, USA, Norway, Colombia, Bulgaria, Netherlands, Austria, Sweden, Ireland, Russia

Portuguese nationality 3 302 89%

Foreign nationality living in Portugal 262 7%

Foreign nationality living outside Portugal 136 4%

• About 11% of the employees are foreigners (in line with the approximately 10% in higher education)

• Phenomenon clearly in growth

• Strong affluence of Brazilians, representing the greatest opportunity to attract foreign talent

• Recent influx of Venezuelans

SUPPLY | FOREIGNERS

Source: COMPANIES SURVEY |

• Foreign students are already a great source of talent in Portugal

• 33,000 foreigners in higher education, almost 10% of students at national level

• Excellent opportunity for the region

• The growth results from the excellent promotion that higher education institutions have carried out internationally

1. Promote internationally the offer of higher education of the city/region (as a destination to study and live)

2. Add the regional HEIs to the international promotion of the regional offer

HIGHER EDUCATION 2015/16 | PORTUGAL

Source: DGEEC |

Type Nº

Enrolled - Regular 19 815

Enrolled - Mobility (Erasmus and others) 13 232

TOTAL 33 047

% Total enrolled in Portugal 9,23%

SUPPLY | FOREIGNERS

1. Fix foreigners studying in the region, through campaigns of attraction for companies

3. Conduct a survey of foreign students

4. Facilitate visas and accommodation

HIGHER EDUCATION 2015/16 | PORTO NORTE

Source HEIs: UP, IPP, UFP, UCP Prt, UPT, UC, UA, UM |

Regular Mobility TOTAL Regular Mobility TOTAL

CPLP 3770 1431 5307 OTHER COUNTRIES 985 612 1772

Brasil 2583 1405 4091 China 93 165 277

Angola 434 5 442 Turkey 20 91 153

Cape Verde 351 1 352 Iran 120 2 125

Mozambique 167 10 177 India 80 15 96

East Timor 96 8 104 Ukraine 68 11 86

Other Countries 139 2 141 Mexico 29 35 68

Guinea-Bissau 55 2 57 USA 27 14 60Equatorial Guinea 1 0 1 Colombia 33 7 42

EUROPEAN UNION 634 2803 3722 Syria 29 1 38

Spain 182 566 819 Russia 18 16 35

Italy 132 487 681 Pakistan 30 3 33

Poland 22 362 419 Ecuador 29 4 33

Germany 72 189 277 Argentina 9 23 32

France 58 157 231 Nigeria 27 2 29

Czech Republic 5 147 164 South Korea 2 23 25

Belgium 11 120 134 Venezuela 23 2 25

Romania 31 83 125 Peru 15 8 24

Slovakia 6 93 101 Chile 8 14 22

Netherlands 14 81 97 Egypt 15 6 21

Greece 16 66 91 Georgia 10 6 20

Lithuania 22 56 90 Other Countries 300 164 528

United Kingdom 21 47 72

Other Countries 42 349 421 TOTAL 5 389 4 846 10 801

SUPPLY | FOREIGNERS

• The English language is unavoidable

• Great foreign integration asset

• There is a low international visibility of foreigners about this reality

• There are HEIs with a low level of languages

Companies with English language mandatory81%

Companies accept employees who do not speak Portuguese89%

ENGLISH LANGUAGE

1. Give visibility to foreigners who do not speak Portuguese that can work in the region

2. Teach English subjects in higher education

3. Promote the teaching of English in schools

SUPPLY | FOREIGNERS

Source: COMPANIES SURVEY |

FOREIGNERS ATTRACTION

STUDY, WORK & LIVE IN PORTO

1. Create full package for talent attraction

2. Promote the city/region as a destination to study, work and live

Fonte: SCALEUP PORTO |

SUPPLY | FOREIGNERS

• There are companies succeeding in the return of professionals from abroad and also from Lisbon

• In addition to their homesickness, they return to the local quality of life and the possibility of family life, particularly those who left young and now want to raise their children

Companies hired Portuguese expatriates (last 2 years)70% Implement funding actions to

disclose:

1. Modern companies set up in the North

3. Quality of life/family life

5. Cost of living delta

RECRUITMENT OF EXPATRIATE EXPATS

SUPPLY | IMMIGRANTS

Source: COMPANIES SURVEY |

• According to IEFP on May 2017 there were 27,028 unemployed persons with higher qualification in Porto macro-region. This figure represents almost half of the total in Portugal

1. Identify the skills of the unemployed in the various areas of knowledge and the most sought after profiles and inform the companies of their availability

UNEMPLOYED WITH HIGHER EDUCATION - MAY 2017

Source: IEFP|

Influence Area Nº %

Porto macro-region 27 028 49,07Lisbon macro-region 23 005 41,77

Rest of the country 5 049 9,17

TOTAL 55 082 100,00

SUPPLY | UNEMPLOYED

Companies are available to hire candidates over 40 years of age76%

Companies that integrated employees enrolled in the IEFP (last 2 years)

Companies that have completed professional internships with IEFP (last 2 years)

Companies that have conducted training in partnership with IEFP (last 2 years)

46%

65%

76%

• IEFP can play a relevant role in identifying potential candidates for companies

• Significant collaboration between the IEFP and the companies

• Age is not a problem

1. Identify and disseminate training courses and academies to enable the requalification of the unemployed

2. Promote the effective approximation of skilled unemployed with the companies

SUPPLY | UNEMPLOYED

Source: COMPANIES SURVEY |

UNEMPLOYED WITH HIGHER EDUCATION - MAY 2017

• IT development

• IT assembly, SAP, data scientists, security and data protection, UX, database

• Accounting and Finance

• Languages

• Mechanical engineering, electronics, automation and industrial control, 3D drawing

• Training will be determinant and will expand according to market needs

• IT requalification program is a great opportunity • Companies have good experiences with academies • Large opening of companies to receive the IEFP and

participate in the curricula and program content of higher education

1. Porto Council can promote and disseminate academies/trainings, bringing companies and training entities together

AREAS WHERE THERE SHOULD BE MORE TECHNICAL TRAINING

SUPPLY | TRAINING & ACADEMIES

Source: COMPANIES SURVEY |

IDENTIFIED COURSES | EXAMPLES

Source: TRAINING & ACADEMIES SURVEY |

Area Demanded Profile Academies Typical Trainee Profile Duration

IT Services

IT Developer / SW Engineer Abaco Graduate High School

30-1775hATECCBTalentAEP/CESAERumos

Tester / Quality Assurance Abaco Graduate High School

21-1510hATECAPDCRumos

Data Scientist Abaco Graduate High School

159-400hATECAPDC

Business Analist / Analista Funcional

Abaco Graduate High School

21-950hAEP/CESAEAPDCRumos

IT Support (Infraestruturas, Base de Dados)

ATEC High School 84-3250hAEP/CESAEAEPAPDCRumos

UX / UI / Webdesigner / Multimedia

AEP/CESAE High School 110-950h

APDCDigital Marketing AEP N/A 76-96h

APDC

Area Demanded Profile Academies Typical Trainee Profile Duration

EngineeringServices

Electrotechnology ATEC N/A 1560hElectronic ATEC N/A 2045-3625h

Mechanics ATEC N/A 1475-3675h

Industrial Engineering

ATEC Graduate 56-1560hAbacoAEP

Financial & HR Services

Finance & Accounting

Abaco Graduate 64-300hAEP

Auditory AEP N/A 128hController AEP N/A 96-128h

Human Resources Abaco Graduate 32-736hAEP

Administratives AEP N/A 200-400h

Foreign Languages

Services

English AEP High School 200hFrench 400hSpanish 400hItalian 400h

SUPPLY | TRAINING & ACADEMIES

Companies consider very or extremely important, the availability of candidates with technical and professional training

67%

• Technical-professional education seems to be an excellent alternative for candidates with many companies revealing good experiences

• Many companies do not recruit in high school because they have enough graduates or because they do not have enough qualification

• There is a great lack of candidates with professional courses

• Currently IEFP technical courses lost students because there is little interest in the courses themselves

Promote specialized courses in:

1. Languages

2. Programming

3. 2D / 3D Drawing

4. Finance and Account

5. ...

SUPPLY | HIGH SCHOOL

Source: COMPANIES SURVEY |

AREAS WHERE THERE SHOULD BE MORE TECHNICAL TRAINING

• Based on the information gathered, two simulations of the methodology were applied to the base profiles identified in this study

• Given the specific needs of company profiles, the available talent pool is elaborated from the automatic aggregation of different sources of talent supply through selected filters (location, higher education, type of unemployed, etc.)

EXAMPLE 1: SEARCH FOR BASE PROFILE VS. HIGHER EDUCATION OFFER (PORTO MACRO-REGION)

talent map

Profile Group Base Profile Demand

37 companies MT1’s* Graduates Requalification MT1's Graduates

IT

IT Developer / SW Engineer 1 108 IT Core 3 539 STEM s/IT 27 171Tester / QA 396 IT Core 3 539 STEM s/IT 27 171Data Scientist 299 IT Core+Mathematics&Physics 3 974 STEM s/IT 27 171Business Analist / Analista Funcional 274 IT Core 3 539 STEM s/IT 27 171IT Support (Base Dados, Infraest.) 165 IT Core 3 539 STEM s/IT 27 171UX / UI / Webdesigner / Multimédia 147 IT Core + Design 4 938 STEM s/IT 27 171Digital Marketing 34 IT Core + Marketing 4 299 STEM s/IT 27 171

ENG

Electrotechnology 219 Electrotechnology 1 100Eletronics 213 Eletronics 2 629Mechanics 147 Mechanics 1 534Industrial Engineering 88 Mechanics + Chemistry 2 937

FIN

Finance & Accounting 651 F&A 5 229 Todos 44 493Auditor 405 F&A 5 229 STEM c/IT 30 710Controller 239 F&A 5 229 STEM c/IT 30 710HRs 106 HRs + Psychology 1 870Administrativa 57 All 44 493

mapa de talento | SIMULATION

*MT - Talent Map classification

EXAMPLE 2: HIGHER EDUCATION & UNEMPLOYED OFFER BY MT* (PORTO MACRO-REGION)

mapa de talento | SIMULATION

Profile Group MT1 MT2

Graduates

(1)

Unemployed 1st Job

(2)

Ratio

(2/1)Unemployed

New JobGraduates

PortoGraduates

BragaGraduates

AveiroGraduates Coimbra

IT

IT Core Electronics and AutomationComputer SciencesComputers - Not classified in another training area

3 539 203 5,7% 562 1 582 678 369 569

Mathematics & Physics

PhysicsMathematicsStatistics

435 30 6,9% 150 162 63 108 98

Design Audio-Visual and Media ProductionDesign 1 399 412 29,4% 1 008 489 247 321 133

Marketing Marketing and Publicity 760 133 17,5% 752 386 75 129 78

ENG

Electrotechnology Electrotechnology and Computation (MT2:Electronics and Automation)Electricity and Energy

1 100 70 6,4% 275 590 29 67 216

Electronics Electronics and Automation 2 629 188 7,2% 473 1 290 450 259 386Mechanics Metallurgy and Metalworking

Materials (Ind. Wood, Cork, Paper, Plastic, Glass and others)Construction and Repair of Motor VehiclesEngineering and Related Techniques

1 534 140 9,1% 577 653 312 228 227

Chemistry Chemical Process TechnologyChemistry 1 403 239 17,0% 452 587 210 221 300

FIN

F&A Management and AdministrationAccounting and TaxationEconomyFinance, Banking & Insurance

5 229 632 12,1% 3 315 2 626 696 535 953

RHs Human Resources (MT2: Management and Administration/HR) 200

OTHERS

Languages Foreign Languages and LiteraturesMother Language and Literature 928 116 12,5% 638 294 184 230 155

Law Law 2 130 297 13,9% 905 885 351 58 836Psychology Psychology 1 670 364 21,8% 1 141 700 354 113 353Sociology Sociology and other studies 694 138 19,9% 495 329 133 6 220Construction& Architecture

Civil Construction and Civil EngineeringArchitecture and Urbanism 2 208 465 21,1% 1 728 1 158 380 112 364

Health NursingMedicineTherapy and RehabilitationDiagnostic and Therapeutic Technologies

5 128 521 10,2% 798 2 520 554 370 1 072

*MT - Talent Map classification

THREATS 1. Serious shortage of adequate talent

2. Lack of regional integration of information, stakeholders and initiatives

OPPORTUNITIES 1. Great openness of all stakeholders to be involved in

solving this challenge

2. Effective availability of valuable information for the match demand/offer

3. Porto Norte region is gaining national/international attractiveness

4. Requalification and integration of the unemployed

5. Porto Council is seen by the regional community as a natural aggregator and promoter of talent in the region

1. Promote PEER GROUPS by functional areas

2. Create a TALENT OBSERVATORY with regular monitoring of demand and supply from identified sources

3. To promote nationally and internationally Porto Norte, as a region to STUDY, WORK AND LIVE

4. Identify and disseminate MATCH MEASURES between demand and supply - training and higher education

5. Create PORTO TALENT OFFICE with the mission to aggregate different initiatives

FINAL RECOMMENDATIONS

PORTO NORTE

tale

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Summary Presentation_2017.07.19