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Employment Social Events A Word From Executive Director of AmCham Issue 31 Dear members, Credits I am pleased to welcome you to the 31st edition of IMPACT Azerbaijan magazine, devoted to Human Capital AmCham Executive Director: Development. Natavan Mammadova In today's business world it is vital to believe in human capital development – raising the most superior and loyal workforce, so that organizations and individual employees Editor: can accomplish their business goals in service to customers. Aykhan Nasibli I am pleased to witness that businesses in our country have acknowledged the rising demand for an increasingly skilled Articles contributed by: workforce and the companies are sustainably investing Gulnur Ismayil in human capital development. This is an essential asset to organizations’ future Zaur Allahverdizade success and sustainable business practices. Herein, member companies of AmCham Azerbaijan are forerunners with implementation of best practices. Various Rena Veliyeva suggestions on this area have also been reflected on our White Paper 2018, which Elnur Eyvazov will be going out very soon. Shabnam Abilova, Amina Bakhshiyeva As we all know, transforming oil capital into the human capital is on the top of the Gumru Eyvazova country’s agenda, which explains why Baku has submitted its candidacy to host Ellada Alishova World Expo 2025 under the motto of "Human Capital". Hosting World Expo 2025 Sarkhan Babayev will not only become a natural progression of Azerbaijan’s established experience in delivering large-scale international events, but will also once again demonstrate Kamran Karimli ourselves as an open and tolerant center for intercultural dialogue and cooperation. Narmin Huseynzadeh Moreover, it would also draw attention of both businesses and government to Ziba Mustafayeva the significance of human capital concept in generating long-term economic Farid Mammadov development. Rustam Rojkov I am especially happy to note that AmCham member companies and AmCham Gunay Shahbazova relevant Committees are mindful of the effective promotion of human development which is the backbone of human development and subsequently economic Alena Edisherova, Murad Namazov development. As a reflection of a public-private dialogue, this edition of IMPACT Azerbaijan magazine represents a contribution by members of the Chamber to the Advertisers: government’s agenda on human capital development. BP Azerfon Best regards, Turkish Airlines Natavan Mammadova PRIVE Steak Gallery Iteca Caspian Editor’s Comment Publisher: Dear friends, dear members. Welcome to 31st edition of IMPACT Azerbaijan magazine, American Chamber of Commerce devoted to Human Capital Development. This interesting in Azerbaijan topic goes beyond the basis of the private sector. Herein, Azerbaijan is the candidate country for the World Expo 2025. Tel: (+994 12) 497 13 33 Within this edition, first of all, you will be able to read the Fax: (+994 12) 497 10 91 approach of the Ministry of Labor and Social Protection of www.amcham.az Population of Azerbaijan emphasizing to various dimensions of human capital development. Furthermore, it is not a www.impact.az coincidence that for this edition the authors from member companies were active enough to contribute with their Advertising opportunities: articles. The coverage of topics is quite wide; from artificial intelligence to regulation Please contact the Editor at of data protection, from talent development to impact for economic development, [email protected] and many more. It should be mentioned that this edition could not be developed without the financial support of BP, Azerfon, Turkish Airlines and Prive Steak Gallery. We appreciate for The articles in IMPACT Azerbaijan authors and companies who see deep value in this magazine. express the opinions of the authors and do not necessarily reflect the position of Enjoy reading! the American Chamber of Commerce in Azerbaijan Sincerely, Aykhan Nasibli contents IN FOCUS 4 24 Enhancing Cooperation with Human Capital as the Greatest Business Associations Remains Intangible Asset a Priority For Us Anar Aliyev Ellada Alishova Head of Apparatus, Ministry of Labor and Social Group HR Manager, Nobel Oil Services Protection of Population 26 10 Developed and Updated Human Developing Talent Capability Capital as Reliable Economical in Organizations Basis of Strong State Sarkhan Babayev Gulnur Ismayil General Director, DET-AL Aluminum Director of Career Management Center, ADA University 27 Digital Transformation’s Impact on 12 Human Capital EU General Data Protection Regulation Kamran Karimli HR Business Partner, Antaris Zaur Allahverdizade Legal and Compliance Officer, Rapid Solutions 28 How Activity Based Costing (ABC) 16 Principles and Methodologies Can Managing Through Reward Boost HR Efficiency? Narmin Huseynzadeh HR Director, Workplace Rena Veliyeva Senior, People Advisory Services, EY Azerbaijan AMCHAM AZERBAIJAN 39 18 About Us Artificial Intelligence and Future Implications for Human Capital Development 40 Elnur Eyvazov Business Events Professor at School of Business, ADA University 20 Personal Data in the Context of 42 Employment Social Events Shabnam Abilova, Amina Bakhshiyeva Deloitte Legal Azerbaijan 47 AmCham Legal Update 2 Issue 31 SMELL MORE WITH THE AIRLINE THAT FLIES TO MORE COUNTRIES THAN ANY OTHER JAPAN in focus Enhancing Cooperation with Business Associations Remains a Priority For Us Anar Aliyev Head of Apparatus, Ministry of Labor and Social Protection of Population the reforms implemented by the Ministry of Labor and Social Protection of Population (MLSPP) today are based on the transparent, modern and, at the same time, based on the full assurance of social justice and impartiality in the implementation of social programs, active labor market arrangements, disability assessment and rehabilitation. Reforms in the labor market serve to the establishment of an effective regulatory mechanism of the labor market based on progressive world practice, and the improvement of the state control system over the broad application of ICT, especially in the field of labor law enforcement. These reforms aim at forming labor relations control system with a broader application of ICT in the form of electronic monitoring, electronic protocol mechanism, ensuring that the system has a flexible and active role in ensuring the legitimate interests of workers and employers, prevention of informal employment. Dear Mr. Aliyev, reforms are being carried out in all fields Meanwhile, the creation of a unified employment portal, that of activity of the Ministry of Labor and Social Protection increases the accessablity of employeers and jobseekers to of Population. What are the goals in the field of labour the employment opportunities, and provides full transparent and employment? employment in the labor market, also, expanding active One of the important factors indicating the overall level labor market programs, increasing the material and technical of development of each society is the extent to which the capacities of the current vocational education system in overall economic development is embodied in the lives of order to increase the labor skills of the workforce, and target members of the community and the welfare of the citizen. - oriented, transparent organization of cooperation with Human factor and civic well-being ensured in the center of employers and the expansion of vocational training network the national development strategy, founded by our national network throughout the country constitute the main goals of leader Heydar Aliyev and successfully continued by President our reforms. Obviously, in every aspect of these reforms, the H.E. Ilham Aliyev in the past 15 years. Dynamic economic importance of active cooperation with business organizations development in our country is accompanied by a strong is considered, and relevant work is being implemented in this social policy, significant steps are taken in the direction of field. building a prosperous community and providing social welfare. Successful social policy has led to the creation of The development of human capital is one of the new jobs, sustainable growth in the labor market, continuous prerequisites of President H.E. Ilham Aliyev’s socio- employment opportunities, and a secure social protection economic policy. What is being done by the MLSP for the system that plays an important role in the well-being of improvement of labor skills, and what are the targets? socially vulnerable human groups. State policy on socio-economic development initiated by the According to the President H.E. Ilham Aliyev’s instruction, President H.E. Ilham Aliyev, has been shaped by practical 4 Issue 31 in focus the short and medium term had been identified in the “Strategic Road Map on the National Economy and Economic Sectors”, approved by the Presidential Decree No. 1138 of 6 December 2016. As the driving factors for these goals, the improvement in quality of all educational levels, ensuring continuity the development of employees ‘knowledge and skills through trainings, adaptating qualified personnel to labor market requirements, stimulating investment in companies’ research and development, and efficient use of existing human capital had been identified. As it was mentioned above, the importance of helding qualified staff training according to the requirements of the labor market becomes even more urgent in regard to increasing demand for labor force in competitive labor markets. Presently, based on advanced international experience for improving the
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