Speech by Chairman of «Samruk-Kazyna» JSC Umirzak Shukeyev at meeting on dual training

Ladies and gentlemen!

The National Welfare Fund «Samruk-Kazyna» is going to the new level of corporate governance, with priority emphasis on the issue of strengthening the social responsibility of employers. According tothe government-approved strategy of the Fund for the 2012-2022,social responsibility is one of the three main development priorities. The key element of social responsibility of the Fund are the issues of training and skills development.

In his keynote article, «Social modernization of Kazakhstan: Twenty steps to the welfare society of Labour», the President of Kazakhstan, Nursultan Nazarbayev said, that through the thorns of the global crisis in the twenty-first century is gradually becoming the new trend - the society of universal labor. In the XXI century only labor can provide all people in our country to welfare and achieve the new quality of life.

In this regard, an employee is the main foundation of the society work.

At the same time, the modern global economy is placing new demands on the quality of the modern desktop. Today,a worker - is not just the media production skills, but also he is required high creativity, taking initiatives, innovation, and talent management.

These requirements will allow our country to ensure the high efficiency of development, improve the competitiveness of the domestic economy.

Lee Kuan Yew, the founder of Singapore's success, he was able to turn an unknown country in Southeast Asia in the economic leader of the regionfor 30 years. This success was based on the preparation of the new generation of workers. He initiated the popular program «300 Spartans», aimed at nurturing talent of workers.

Nowhis quote is  widely known «To go from ''the third world country into the first world'', we had to train our people ... In the struggle for survival, we were guided by the simple principle: Singapore had to become more organized, more efficient and more energy than any other country.»

The leader of the nation of Kazakhstan Nursultan Nazarbayev setsthe high aims. We also intend to bring the training of our workers to the international level. According to the experience of the world's countries, we know that the cost increases by 20% for the preparation of one working today, will increase productivity by 30-40% tomorrow.

Today, a number of global companies such as Microsoft, IBM, GeneralElectric, Apple despite the general trend to lower yields is shown the opposite trend - the sensational growth, called the paradox of growing companies.

The key  factors of growth- the breakthrough in the creation of new markets, the innovative strategy «Tigers» and the bid on holding and training the most talented employees.

These companies invest huge amounts in education and average spend per employee is not less than thousand dollars a year. For comparison, the JSC «KazMunaiGas» training costs per employee are about $ 200 a year.

Around the world, improving the training of professional staff is through equal dialogue between the government, business and education, and the best form of interaction is the social partnership.

So, JSC «Samruk Kazyna» said that the signing of the Treaties of social partnership is the start, which will accelerate the cooperation between the state, enterprises and educational institutions.

Signing the agreement of social partnership is the result of the decision of three key issues in the group of the Fund:

1. to improve the system of workforce planning;

2. to define the eligibility requirements on the modern, and most importantly;

3. to develop the quality of vocational education.

What have we already done?

On the first set of issues, we reveal the needs of companies in the Fund's workers in detail.

Today, Kazakhstan is not sufficiently developed system of business workforce planning for the long term (5-10 years). This is due to the fact that there is no comprehensive system market, which is researchingthe labor market in terms of working professions. The result is the imbalance in the labor market: on the one hand - the shortage of highly skilled workers in the workplace, on the other hand - the lack of demand for graduates of education: colleges and universities.

What is the contribution JSC «Samruk Kazyna» in the solution of this problem?

We know the exact needs of the Fund for workers with the implementation of investment projects. In the next 5 years, in accordance with the Development Strategy of the Fund, it will be realized about 192 investment projects (including expansion and modernization of production) for $ 5 billion tenge.

It is expected to create about 10,000 jobs, including working of the new specialties in areas such as petrochemicals, petroleum, chemical industry, alternative energy and offshore industry, etc.

Starting this year, we formed the Corporate Standard of planning in the group fund, showing the number of employees by main professions and trades.

To increase the personal responsibility of each manager, one of the key performance indicators will be assigned the value (CAP), which will evaluate the quality of workforce planning and efficient implementation of the dual system of training in companies.

The second set of issues related to the ever-increasing requirements - standards that makes business and production of the modern worker.

As international experience shows, the basic requirements are developed by the employer to the worker through the introduction of professional standards - the quantity and quality (qualification) requirements for training.

Responsibility for the development of professional standards should take over the company and the state.

We have studied the experience of many companies in Kazakhstan, such as Agip, when training the workforce they are guided only by their requirements for qualification.

Right now we are working professionals from 721 specialties. We will hard work to establish professional standards for all our professions. One of the first work in this direction is JSC «KazMunaiGas». Since 2009, they have developed more than 300 professional standards.

We are working closely with the Ministry of Education and Science, the Ministry of Labour and Social Security to integrate our professional standards in the national qualificational system.

On the third set of issues formed the Foundation systemic vision of the main mechanisms to improve the quality of training of workers.

To improve the quality of workers' training , first, we are reducing the gap between the needs of companies in the training of workers and the quality of education in the technical and vocational training.

The survey revealed that about 60% of employers are not satisfied with the quality of teaching and the content of apprenticeship programs.

Today, companies require an employee to the deeper training. For example, «KEGOC» needs to work on the qualification of «Technician - Electric», owning the working profession «Electrician» is not less than 4-5 discharge. While the type system can be output to prepare the working level at 2-3 below.

The key mechanism of solving this problem is the model  of the dual training where vocational schools and enterprises will bear equal responsibility for the quality of training, bridges the gap between theory and practice.

There are a lot of work by the Fund in this sphere. The Fund developed the pilot curriculum, where the basis of qualification, such as operating machinery sits profession to the level of training that meets the requirements of the employer.

As a result, the college graduater will not have to complete their education in the enterprise.

In our view, the task of the state and the Foundation - is pilot projects implemented in all schools.

According to the signed agreements of the social partnership, we promote the development of material and technical base of TVE, provide college students with jobs during practical training.

The modern colleges need special mode that allows to create the production training facility. They need to be customs privileges, tax preferences. Financial preferences can be expressed in the first place, the release of the rent for the land released to the college for the construction of the material and technical base.

The second, we improve the quality of training centers of the Fund. The fund is the group of 19 corporate training centers. These centers trained only 44% percent of workers. The remaining 56% - study outside. It is because the quality of teaching and the level of equipment of these centers.

We have carefully analyzed the activity centers and broke them into 2 groups. The first favorable group, the so-called «green field» with 40%, it is equipped with such centers as the «Training Center of JSC» Kazakhstan Temir Joly ». As we see today this center is equipped laboratories, training ground for employees traveling facilities, equipped classrooms, training simulators, videos, multimedia tutorials, private library.

Unfortunately, about 60% of the centers fall under the red sphere, they do not have their own faculty, they have no manufacturing base. These centers require drastic modernization and equipping of production bases.

In this regard, we see several ways to solve this problem. We will carry out the modernization of existing training centers, improve their relationship with industry and science, and we will build the new training center. So, for example, it is planning to build the training center «United Chemical Company», which will train specialists in the petrochemical industry.

Perhaps we will invite foreign specialists in the training of our workers in the training centers. At the time, Lee Kuan Yew urged Japan, Germany, France and the Netherlands founded in Singapore own training centers for training of technicians. As a result, the oil industry in Singapore has grown significantly by the early 90's, the Singapore became the world's third-largest center of oil refining and oil trading center after New York and London.

The third, in the company's stock, we will strengthen the scientific and innovative components of the personnel training.

We recognize that the current model involves the creation of the single scientific-production cycle on the «research - development - training - industrial development.»

In this regard, we develop the implementation of scientific research into the industry that would create the single company's stock research and production cycles of this principle.

We've thought of the relationship with the Fund companies and Technopolis technology parks. For this purpose there was created the integrated model «Research centers - education - business.» In this regard, on the basis of technology parks we begin the implementation of joint projects with foreign and Kazakh research centers, training centers and Kazakh companies. This will allow the workers to study foreign experience, introduce the best of innovation, based on which to create the new technologies Kazakhstan.

We will increase the role of the worker as an innovator, which will generate ideas, develop innovations, know-how and patents.

It is revealing the words of James Goodnight, founder of SAS (SAS Institute Inc.),admited by the magazine «Fortune» as «The best leader» in the world: «Every night, 95 percent of the employees of the company are going home. My goal - to create the best conditions of work, that the next morning all these people have desire to go back. Creativity, which they bring to the company, creates the competitive advantage.We recognize the important social and economic function that performs modern working. Therefore, their work is worthy of the greatest public recognition and respect.

The Foundation is studying the innovative projects in the field of education and will implement the economic and technological developments in the field of professional training.

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