PORTO NORTE talent map

Summary Presentation_2017.07.19 ACKNOWLEDGMENTS

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. INTRODUCTION

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.

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

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 CHALLENGE

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? METHODOLOGY ANALYSIS

Diagnosis of current and potential talent supply in the region

DEMAND Porto Norte Top recruiters

SUPPLY Universities PROFILES IT Academies Engineering Unemployed Finance & Account Languages Foreigners … …

…

Promotion of talent to support companies sustainability and growth METHODOLOGY

SUPPLY DEMAND

Companies

Emmigrants

Higher Education

High School

Training Academies

Unemployed talent map

Foreigners METHODOLOGY MACRO-REGIONS

• 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

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

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% METHODOLOGY TIMELINE

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.

2nd May 2,5 months 19 July

Higher Education Companies Other Entities IEFP Institutions (HEIs) 37 11 12 2

Private District

Universities Delegation Delegation Polytechnics Porto Braga District Aveiro District North Regional Center Regional

Support to foreigners

Acdemies & associations METHODOLOGY SOURCES | DEMAND

BIG EMPLOYERS IN PORTO NORTE REGION (#37 SURVEY)

Companies

Porto, Aveiro and Braga Districts METHODOLOGY SOURCES | SUPPLY

BIGGEST SOURCES OF TALENT (#24 SURVEY)

Higher Education Unemployed

• North Regional Delegation

• Center Regional Delegation

Training/Academies Foreigners

Porto, Viana do Castelo, Braga, Vila Real, Aveiro, Coimbra and Viseu districts METHODOLOGY SOURCES | GENERAL

ENTITIES WITH STRUCTURED INFORMATION METHODOLOGY SOURCES | MEETINGS

PRESENT MEETINGS (+28) DEMAND | COMPANY SURVEY SAMPLE

PARTICIPANT COMPANIES

SECTOR COMPANIES

11% IT 21 14% Financial Shared 7 Services 57% 19% Engineering/Industry 5

Customer Service 4 IT Financial Shared Services Engineering/Industry TOTAL 37 Customer Service DEMAND | COMPANIES SURVEY SAMPLE

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

Financial Engineering/ Customer IT Shared TOTAL Industry Service Services Companies 21 7 5 4 37 On 31.12.2016 2 535 954 6 871 10 519 20 879 1. Support companies in high Average nº of talent deficit sectors employees 121 136 1 374 2 630 564 (IT and Engineering) Forseen in 31.12.2017 3 993 1 085 7 675 12 866 25 619 Growth 1 458 131 804 2 347 4 740 3. Give visibility to areas Growth % 58% 14% 12% 22% 23% where there is still availability of talent • High growth: +10% in all sectors (F & A)

• Exceptional IT growth: +1,500 jobs/2 years 4. Promote new areas of • Customer service is a strongly employer supply (Law, Health ...) • Strong impact on the sustainability of local companies by the arrival of new large operations Source: COMPANIES SURVEY | DEMAND | BASE PROFILES

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 SUPPLY | HIGHER EDUCATION

HIGHER EDUCATION GRADUATES 2015 HIGHER EDUCATION ENROLLED 2015/16

Influence Area Nº % Influence Area Nº %

Porto macro-region 44 546 47,12 Porto macro-region 161 414 45,06

Lisbon macro-region 40 077 42,39 Lisbon macro-region 159 293 44,47

Rest of the country 9 914 10,49 Rest of the country 37 486 10,47

TOTAL 94 537 100,00 TOTAL 358 193 100,00 Source: DGEEC | 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 SUPPLY | HIGHER EDUCATION

STUDENTS MIGRATION

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

Placed and enrolled Source: DGES | 2. Promote the increase of higher education offer in • Porto district exports students: the net balance is the region 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 SUPPLY | HIGHER EDUCATION

RECRUITMENT SOURCES

FEUP - Faculdade de Engenharia 22% FEP - Faculdade de Economia 8% UP FCUP - Faculdade de Ciências 3% Outras faculdades 4% TOTAL 38% ISEP - Instituto Superior de Engenharia do Porto 16% IPP ISCAP - Instituto Superior Contabilidade e Adm. do Porto 5% Outras escolas 1% TOTAL 23% 1. Promote the analysis of all UM Universidade do Minho 17% courses by HEIs to be UA Universidade de Aveiro 6% known to the companies 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% 2. Attract students from UPT Universidade Portucalense 1% UFP Universidade Fernando Pessoa 0% Coimbra Outras Outras entidades de ensino superior 8% Source: COMPANIES SURVEY |

• 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) SUPPLY | FOREIGNERS

FOREIGNERS HIRING

Portuguese nationality 3 302 89%

Foreign nationality living in Portugal 262 7%

Foreign nationality living outside Portugal 136 4%

Source: COMPANIES SURVEY |

Brazil, United Kingdom, Uruguay, Poland, Georgia, • About 11% of the employees are foreigners (in line Turkey, Czech Republic, Ukraine, France, Romania, with the approximately 10% in higher education) India, Germany, Angola, Canada, Spain, Finland, Hungary, Iran, Italy, Poland, Romania, S. Tomé, • Phenomenon clearly in growth Syria, Venezuela, Mexico, Cape Verde, Finland, • Strong affluence of Brazilians, representing the Denmark, Switzerland, Venezuela, USA, Norway, greatest opportunity to attract foreign talent Colombia, Bulgaria, Netherlands, Austria, Sweden, Ireland, Russia • Recent influx of Venezuelans SUPPLY | FOREIGNERS

HIGHER EDUCATION 2015/16 | PORTUGAL

Type Nº Enrolled - Regular 19 815 1. Promote Enrolled - Mobility (Erasmus and others) 13 232 internationally the offer TOTAL 33 047 of higher education of % Total enrolled in Portugal 9,23% the city/region (as a Source: DGEEC | destination to study and live) • Foreign students are already a great source of talent in Portugal • 33,000 foreigners in higher education, almost 10% of 2. Add the regional HEIs students at national level to the international • Excellent opportunity for the region promotion of the regional offer • The growth results from the excellent promotion that higher education institutions have carried out internationally SUPPLY | FOREIGNERS

HIGHER EDUCATION 2015/16 | PORTO NORTE

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 1. Fix foreigners studying in East Timor 96 8 104 Ukraine 68 11 86 Other Countries 139 2 141 Mexico 29 35 68 the region, through Guinea-Bissau 55 2 57 USA 27 14 60 campaigns of attraction for Equatorial Guinea 1 0 1 Colombia 33 7 42 EUROPEAN UNION 634 2803 3722 Syria 29 1 38 companies 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 3. Conduct a survey of foreign France 58 157 231 Nigeria 27 2 29 students 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 4. Facilitate visas and Greece 16 66 91 Georgia 10 6 20 accommodation 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

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

ENGLISH LANGUAGE

Companies with English language mandatory 81% 1. Give visibility to foreigners who do not speak 89% Companies accept employees who do Portuguese that can work in not speak Portuguese the region Source: COMPANIES SURVEY |

• The English language is unavoidable 2. Teach English subjects in • Great foreign integration asset higher education • There is a low international visibility of foreigners about this reality 3. Promote the teaching of • There are HEIs with a low level of languages English in schools SUPPLY | FOREIGNERS

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 | IMMIGRANTS

RECRUITMENT OF EXPATRIATE EXPATS

Companies hired Portuguese expatriates (last 70% 2 years) Implement funding actions to disclose: Source: COMPANIES SURVEY |

1. Modern companies set • There are companies succeeding in the return of up in the North professionals from abroad and also from Lisbon • In addition to their homesickness, they return to the 3. Quality of life/family life local quality of life and the possibility of family life, particularly those who left young and now want to 5. Cost of living delta raise their children SUPPLY | UNEMPLOYED

UNEMPLOYED WITH HIGHER EDUCATION - MAY 2017

Influence Area Nº % Porto macro-region 27 028 49,07 Lisbon macro-region 23 005 41,77 1. Identify the skills of the Rest of the country 5 049 9,17 unemployed in the various TOTAL 55 082 100,00 areas of knowledge and the most sought after Source: IEFP| profiles and inform the companies of their • According to IEFP on May 2017 there were 27,028 availability unemployed persons with higher qualification in Porto macro-region. This figure represents almost half of the total in Portugal SUPPLY | UNEMPLOYED

UNEMPLOYED WITH HIGHER EDUCATION - MAY 2017

46% Companies that integrated employees enrolled in the IEFP (last 2 years)

Companies that have completed professional 1. Identify and disseminate 65% internships with IEFP (last 2 years) training courses and Companies that have conducted training in academies to enable the 76% partnership with IEFP (last 2 years) requalification of the unemployed Companies are available to hire candidates 76% over 40 years of age Source: COMPANIES SURVEY | 2. Promote the effective approximation of skilled • IEFP can play a relevant role in identifying potential candidates for companies unemployed with the companies • Significant collaboration between the IEFP and the companies • Age is not a problem SUPPLY | TRAINING & ACADEMIES

AREAS WHERE THERE SHOULD BE MORE TECHNICAL TRAINING

• IT development • IT assembly, SAP, data scientists, security and data protection, UX, database • Accounting and Finance • Languages • Mechanical engineering, electronics, automation and 1. Porto Council can promote industrial control, 3D drawing and disseminate Source: COMPANIES SURVEY | academies/trainings, bringing companies and • Training will be determinant and will expand according to market needs training entities together • 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 SUPPLY | TRAINING & ACADEMIES

IDENTIFIED COURSES | EXAMPLES

Typical Trainee Typical Trainee Area Demanded Profile Academies Duration Area Demanded Profile Academies Duration Profile Profile IT Developer / SW Engineer Abaco Graduate 30-1775h Electrotechnology ATEC N/A 1560h ATEC High School Electronic ATEC N/A 2045-3625h CBTalent AEP/CESAE Engineering Mechanics ATEC N/A 1475-3675h Rumos Services Tester / Quality Assurance Abaco Graduate 21-1510h Industrial ATEC Graduate 56-1560h High School ATEC Engineering Abaco APDC AEP Rumos Finance & Abaco Graduate 64-300h Data Scientist Abaco Graduate 159-400h Accounting AEP ATEC High School Auditory AEP N/A 128h APDC Business Analist / Analista Abaco Graduate 21-950h Controller AEP N/A 96-128h IT Services Financial & Funcional AEP/CESAE High School HR Services APDC Human Resources Abaco Graduate 32-736h Rumos AEP IT Support (Infraestruturas, ATEC High School 84-3250h Administratives AEP N/A 200-400h Base de Dados) AEP/CESAE AEP English AEP High School 200h Foreign APDC French 400h Languages Rumos Services Spanish 400h UX / UI / Webdesigner / AEP/CESAE High School 110-950h Italian 400h Multimedia APDC Source: TRAINING & ACADEMIES SURVEY | Digital Marketing AEP N/A 76-96h APDC SUPPLY | HIGH SCHOOL

AREAS WHERE THERE SHOULD BE MORE TECHNICAL TRAINING

Companies consider very or extremely important, 67% the availability of candidates with technical and professional training Promote specialized courses Source: COMPANIES SURVEY | in: 1. Languages • Technical-professional education seems to be an excellent alternative for candidates with many companies revealing 2. Programming good experiences 3. 2D / 3D Drawing • Many companies do not recruit in high school because they have enough graduates or because they do not have 4. Finance and Account enough qualification 5. ... • 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 mapa de talento | SIMULATION

• Based on the information gathered, two simulations of the methodology talent map 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)

Profile Demand Base Profile MT1’s* Graduates Requalification MT1's Graduates Group 37 companies IT Developer / SW Engineer 1 108 IT Core 3 539 STEM s/IT 27 171 Tester / QA 396 IT Core 3 539 STEM s/IT 27 171 Data Scientist 299 IT Core+Mathematics&Physics 3 974 STEM s/IT 27 171 IT Business Analist / Analista Funcional 274 IT Core 3 539 STEM s/IT 27 171 IT Support (Base Dados, Infraest.) 165 IT Core 3 539 STEM s/IT 27 171 UX / UI / Webdesigner / Multimédia 147 IT Core + Design 4 938 STEM s/IT 27 171 Digital Marketing 34 IT Core + Marketing 4 299 STEM s/IT 27 171 Electrotechnology 219 Electrotechnology 1 100 Eletronics 213 Eletronics 2 629 ENG Mechanics 147 Mechanics 1 534 Industrial Engineering 88 Mechanics + Chemistry 2 937 Finance & Accounting 651 F&A 5 229 Todos 44 493 Auditor 405 F&A 5 229 STEM c/IT 30 710 FIN Controller 239 F&A 5 229 STEM c/IT 30 710 HRs 106 HRs + Psychology 1 870 Administrativa 57 All 44 493

*MT - Talent Map classification mapa de talento | SIMULATION

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

Graduates Unemployed Ratio Profile Unemployed Graduates Graduates Graduates Graduates MT1 MT2 1st Job Group New Job Porto Braga Aveiro Coimbra (1) (2) (2/1) IT Core Electronics and Automation Computer Sciences 3 539 203 5,7% 562 1 582 678 369 569 Computers - Not classified in another training area Mathematics Physics IT & Physics Mathematics 435 30 6,9% 150 162 63 108 98 Statistics Design Audio-Visual and Media Production Design 1 399 412 29,4% 1 008 489 247 321 133 Marketing Marketing and Publicity 760 133 17,5% 752 386 75 129 78 Electrotechnology Electrotechnology and Computation (MT2:Electronics and Automation) 1 100 70 6,4% 275 590 29 67 216 Electricity and Energy Electronics Electronics and Automation 2 629 188 7,2% 473 1 290 450 259 386 Mechanics Metallurgy and Metalworking ENG Materials (Ind. Wood, Cork, Paper, Plastic, Glass and others) Construction and Repair of Motor Vehicles 1 534 140 9,1% 577 653 312 228 227 Engineering and Related Techniques Chemistry Chemical Process Technology Chemistry 1 403 239 17,0% 452 587 210 221 300 F&A Management and Administration Accounting and Taxation 5 229 632 12,1% 3 315 2 626 696 535 953 FIN Economy Finance, Banking & Insurance RHs Human Resources (MT2: Management and Administration/HR) 200 Languages Foreign Languages and Literatures 928 116 12,5% 638 294 184 230 155 Mother Language and Literature Law Law 2 130 297 13,9% 905 885 351 58 836 Psychology Psychology 1 670 364 21,8% 1 141 700 354 113 353 Sociology Sociology and other studies 694 138 19,9% 495 329 133 6 220 OTHERS Construction Civil Construction and Civil Engineering & Architecture Architecture and Urbanism 2 208 465 21,1% 1 728 1 158 380 112 364 Health Nursing Medicine Therapy and Rehabilitation 5 128 521 10,2% 798 2 520 554 370 1 072 Diagnostic and Therapeutic Technologies

*MT - Talent Map classification FINAL RECOMMENDATIONS

THREATS 1. Serious shortage of adequate talent 1. Promote PEER GROUPS by functional areas 2. Lack of regional integration of information, stakeholders and initiatives 2. Create a TALENT OBSERVATORY with regular monitoring of demand OPPORTUNITIES and supply from identified sources 1. Great openness of all stakeholders to be involved in solving this challenge 3. To promote nationally and internationally Porto Norte, as a 2. Effective availability of valuable information for the region to STUDY, WORK AND LIVE match demand/offer 4. Identify and disseminate MATCH 3. Porto Norte region is gaining national/international MEASURES between demand and attractiveness supply - training and higher education 4. Requalification and integration of the unemployed 5. Create PORTO TALENT OFFICE 5. Porto Council is seen by the regional community as with the mission to aggregate a natural aggregator and promoter of talent in the different initiatives region PORTO NORTE talent map

Summary Presentation_2017.07.19