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VAM-Velferd, arbeid og migrasjon

Sustained employment of hard-to-place citizens in small and medium sized enterprises: A mixed-method study in Norway and the Netherlands

Alternative title: Varig ansettelse av sårbare grupper i små og mellomstore bedrifter: En flermetodestudie i Norge og Nederland

Awarded: NOK 11.5 mill.

The project investigates how small and medium-sized enterprises can succeed in permanently employing individuals who are marginalized in the workforce, and how they can be effectively supported in doing so. Individuals from the marginalized group are those who are outside the workforce due to challenges such as psychological, cognitive, social, physical, or other issues. Permanent employment refers to the hiring of individuals from the marginalized group in regular, permanent positions over some time—distinguished from the use of work experience, which often does not lead to permanent jobs for this group. Studies indicate that a relatively small number of employers succeed in permanently employing individuals from this group, and the aim of the project is to increase knowledge about their actual practices, the support they receive from authorities, and how the experiences of these companies can be transferred to others. The study is conducted in Norway and the Netherlands. Several studies have been conducted: A) A systematic literature review explores success factors for the permanent employment of persons with disabilities (PWD) based on 126 articles. Inclusive work practices mentioned in the research include a) adapting the workplace and work practices to the needs of PWDs, b) cultural or informal practices that contribute to creating a sense of security and belonging for PWDs, c) Human Resource Management (HRM) practices, such as formal internal support within the company related to a buddy or mentor or the company's recruitment policy, d) leadership, especially the role of the immediate supervisor, e) involving PWDs in decisions that affect them, f) support from public employment services, and g) training and education of PWDs in work-related matters. Such practices, according to the literature, lead to various positive outcomes: positive experiences for PWDs, positive employment conditions for PWDs, positive experiences for stakeholders of the company, positive work performance for PWDs, and positive outcomes for the company. B) A qualitative study on inclusion efforts in a selection of SMEs with experience in hiring and including individuals from the target group in their businesses. The study includes 20 companies in Norway and 10 in the Netherlands, spanning different sizes, industries/sectors, and skill requirements. Two articles are being developed based on this data. One article, submitted to a journal, addresses different strategies for hiring individuals from the marginalized group. It identifies and discusses three strategies: recruitment orientation (relatively ordinary recruitment but for individuals from the marginalized group, often in collaboration with, for example, public employment services); business orientation (focus on individuals' strengths and creating a business around them, such as social enterprises), and growth orientation (focus on developing individuals from the marginalized group in terms of skills and mastery). The second article focuses on a theme that emerged in the empirical material: the potential resistance to hiring and including individuals from the marginalized group among other employees. Such resistance can be challenging to identify, both for researchers and managers (who are often the most engaged in the companies), but it can have significant implications for inclusion processes as these employees are likely to work together with individuals from the marginalized group on a daily basis. This article will be submitted for peer review in early 2024. C) A study using register data explores the significance of company size and the degree of implemented recruitment policies for PWD in the likelihood of permanent employment for this group. The study finds that employer size has a negative impact on employment, while implemented measures for individuals with reduced capacity have a positive effect, regardless of employer size. The article argues that a systematic assessment of such factors can help identify areas for improvement for employees with reduced capacity and discusses the implications for public policy. D) A survey was conducted among a representative number of small and medium-sized enterprises in Norway and the Netherlands. The survey included questions and existing questionnaires related to the knowledge, employment opportunities, motivation/attitudes, HR practices and leadership of companies/leaders, as well as characteristics of the company and the extent of employment. Data analysis is underway along two tracks. One study examines differences between inclusive and non-inclusive companies, and another focuses on characteristics and practices in inclusive companies. The preliminary results of the first study indicate that there are differences between non-inclusive and inclusive companies concerning knowledge and motivation/attitudes, but not regarding HR practices and leadership. The findings were presented at a conference in November 2023.

This proposed research project aims to develop new knowledge about how small and medium sized enterprises can contribute successfully to the sustained workplace inclusion of vulnerable 'hard-to-place' citizens, and can be supported effectively in doing so. With 'hard-to-place' citizens we refer to people struggling to obtain or retain a job due to mental, cognitive, social, physical or other disabilities. The project is situated in the context of active labour market policies seeking to engage employers and workplaces to take more responsibility for the inclusion of hard-to-place citizens outside the labour market. Despite an emerging literature on the role of employers in active labour market policies, knowledge about the more micro level organizational, HRM and workplace factors contributing to the sustained employment of hard-to-place citizens is meagre. This is especially the case in SMEs, which are highly common organizations (up to 250 employees) and provide considerable proportions of employment in European countries: close to 70% according to OECD data. At the same time, SMEs may often lack resources and competences to engage in inclusion efforts. This project starts from the key assumption that there is considerable social and economic potential in obtaining knowledge about how SMEs can become an increasingly powerful force for labour market inclusion in contemporary welfare states. The project aims to produce new and relevant knowledge for SMEs, service and education providers and policy makers on (a) successful inclusion practices at the level of the employing SMEs, (b) public/private services that meet the needs of the employing organizations and the jobseekers, and (c) the role of national policies in promoting inclusion efforts in SMEs. We will do so through a multi-method comparative study in Norway and the Netherlands, whose governments in agreement with social partners have initiated substantial, but differing, initiatives to mobilize employers.

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VAM-Velferd, arbeid og migrasjon