Human Capital Greek Market Insights Powered by 2 Human Capital is one of the major factors for successful business investments. Is the Greek Market attractive in terms of workforce characteristics and local labor law? Study conducted by The Adecco Group Greece, October 2020 2 3 4 Contents EXECUTIVE SUMMARY 6 Employment Contracts Duration 38 THE ADECCO GROUP 8 Fixed-Term Contracts Termination 38 Global Overview 9 Employee’s Salary 39 The Adecco Group Greece 10 Indicative Salaries for Different Profiles 40 Making Greece More Global, More Attractive, More Competitive 10 Working Schedule 43 MARKET OVERVIEW GREECE 12 Overwork 44 General Information 13 Overtime 44 LABOR MARKET OVERVIEW GREECE 14 Types of Leaves 45 Short Overview of Major Geographic Regions 14 Annual Leave 45 Attica 15 Sick Leave 45 Central Macedonia 15 Parental Leave 45 Central Greece 16 Maternity Leave 46 South Aegean 16 Childcare Leave 46 Unemployment Rates in Greece 17 Special Leave for the Protection of Maternity 46 Population, Labor Force, Unemployment Rates per Region 17 Education and Study Leave 46 Population, Labor Force, Unemployment Rates per Age Groups and Genders 18 Labor Cost Examples (As per the Current Labor Law October 2020) 47 POPULATION, LABOR FORCE & TALENT POOL CHARACTERISTICS GREECE 20 Minimum Base Salary Thresholds for Employees 51 Literacy Rates per Age & Gender Criteria 21 Non-Mandatory Benefits % of the Base Gross Salary 51 Academic Education Rates 22 Private Insurance 51 Distribution of Greek Tertiary Students by Field of Study 22 Travel Allowance 51 Number of Undergraduate / Postgraduate / PHD Graduates from Greek Universities 24 Night Shift Allowance 51 Distribution of Greek Tertiary Students by Region 25 Foreign Language 51 Languages Proficiency Levels 28 Employee Benefits Prescribed by Law 51 Overview 28 Obligatory Content of Employment Contract 52 Key Figures per Age Group 28 Social Security Costs 52 WORLD TALENT RANKING 30 Social Security Contribution Rates 52 Global Talent in the Age of Artificial Intelligence 34 Type of Social Insurance (rates paid by the employer and employee) 53 Global Talent Competitiveness Index (GTCI) 2020 || Greece - Country Profile 35 THE CURRENT TREND OF SHARED SERVICES CENTERS & BUSINESS PROCESS OUTSOURCING IN GREECE 54 GENERAL CONCEPTS IN PERSONNEL ADMINISTRATION GREECE 38 CONCLUSION 56 4 5 6 EXECUTIVE SUMMARY The unemployment rate (Q1 2020) stands at 16,2%. A key finding from breaking down this number to different age groups is that the largest unemployment rate is between 15 - 30 years old. This contradicts with the literacy rate of Greece (97,64%) and especially in the ages of 15 to 24 where it reaches 99,16%. In 2017, most of the graduates were studying in the fields of Business, Administration and Law (20,25%) as well as Engineering, Manufacturing and Construction (16,91%). Social Sciences, Journalism and Information accounts for the 13,41%. Greece has an extremely talented and skilled labor force especially in the fields of Economic, Engineering, Sciences etc. In the past couple of years, the Greek students have become more aware of the trends of the market and started following fields that are promising for the future. IT professionals, for example, increase steadily filling the gap between “supply and demand” of IT profiles in the country. Furthermore, 40% of Greek population can speak and understand The following study was conducted by The Adecco Group Greece, in order to identify how ap- English fluently with a steady rise of this number within the past few years. French and Ger- pealing is the pillar of Human Capital for new investments in Greece and is targeted to be used man are among the top 3 languages spoken in Greece. as a reference both by government and business. Population and workforce characteristics, In Global Talent Competitiveness Index 2020, Greece is ranked 47th out of a sample of 132 geographical & labor law overview are combined with The Adecco Group Greece expertise in countries. The country’s main strength relates to the pillar Retain, especially the sub-pillar Human Recourses industry in order to conclude to the key findings. Lifestyle. The greatest scope for improvement, meanwhile, is in the pillar Attract, where Ex- Greece is increasingly attracting new investments, and this is due to a variety of reasons. ternal Openness is the weakest sub-pillar. Segmenting Greece in four main regions we can point out that Attica is the region where the In terms of general personnel administration, the study includes detailed information regard- most investments take place and where most of the available employees are located, Central ing contracts’ durations, working schedule, types of leaves, along with labor cost elements Macedonia gets the second largest amount of investments. Investors are interested also in (salaries, benefits and social security). Indicative examples are included as well. Central Greece and South Aegean where there are many opportunities for the agricultural and Last part of the study refers to the trend of shared services centers, and business process 6 tourism sectors. outsourcing with geographical and business sector’s split. 7 8 Global Overview The Adecco Group offers a wide variety of services that fall into the broad categories of temporary staffing, perma- nent placement, career transition and talent development, as well as outsourcing and consulting. THE ADECCO The company is based in Zurich and has over 35,000 internal employees in more than 60 countries. At Adecco Group we transform the world of work one job at a time. We provide more than 1,000,000 people with permanent and GROUP flexible employment every day, while our colleagues are serving more than 100,000 organizations with the talent, HR services and cutting-edge technology they need to succeed in an ever-changing global economy. The Adecco Group is powered by nine global lead brands: Adecco, Adia, Badenoch & Clark, General Assembly, LHH, Modis, Pontoon, Spring Professional and Vettery. As a Fortune Global 500 company, we lead by example, creating shared value that fuels economies and builds better societies. These values resonate with our employees, who voted us number 7 on the Great Place to Work® - World’s Best Workplaces 2020 list and number 6 on the Great Place to Work® - Europe’s Best Workplaces 2020. Our vision is to ensure that people across the globe are inspired, motivated, trained and developed to embrace the future of work. To be in environments where they are empowered to thrive, stimulated to succeed and given every chance to make their individual futures better and brighter than ever before. At The Adecco Group we don’t just understand the changing employment landscape – we work with our clients to ensure they can embrace it. Because we understand that businesses across the globe must become more fluid, more flexible and more open to new ways of working. 35,000 60 360o 9 €23.4 47 experts in the countries service leading global billion in young talents have world of work offering brands revenues 2019 the opportunity to be a CEO for 1 month Ranked 7th in A Fortune 26.000 1 million + 11,000 colleagues, clients & 7,000 people work with apprenticeships “World’s Best associates doing athletes work with us every day within the Group 500 Win4Youth sports us on ensuring their Workplaces” success in sports & or with our clients Global company together to give 8 2020 something back in work 9 10 The Adecco Group Greece The Adecco Group launched its activity in Greece in 2000, with a portfolio of 3 brands: Adecco, Atlas and LHH. Since the beginning of our operations in the local market we have expanded our network of branches to cover the needs of businesses in Attica, Thessaloniki and the whole Greek region. Adecco’s structure has our branches at the core of our operations. Our branches offer integrated services to compa- nies and candidates that visit us or contact us. The Adecco Group Greece was ranked 5th in Great Place to Work’s ‘Best Workplaces Hellas’ list 2020. Making Greece More Global, More Attractive, More Competitive Enterprise Greece is the state agency, under the auspices of the Ministry of Foreign Affairs, designed to assist foreign investors and enterprises to do business in Greece, to contribute to the outward looking orientation of the Greek economy, to attract foreign investment and to provide key investment and business information. Enterprise Greece showcases a wide range of investment sectors in which Greece excels. In addition, it promotes Greek products and services to the global marketplace and helps Greek businesses reach new markets, find new business partners, and become more competitive and attractive. 10 11 12 General Information Greece is located in south-eastern Europe, at the meeting point of three seas: the Ionian Sea to the west, the Mediter- MARKET ranean Sea to the south and the Aegean Sea to the east. Traditionally, Greece was an agricultural country, but today OVERVIEW the importance of agriculture is declining, and tourism is Greece’s biggest industry, with shipping second, accounting for 4.5 percent of GDP. The Greek-owned maritime fleet is the largest in the world, with 3,079 vessels accounting for GREECE 18 percent of the world’s fleet capacity. Before the pandemic hit, the Greek economy had been expanding for over three years at just below 2% average annual growth. Structural reforms, high primary budget surpluses and debt measures by European partners had sustained Greece’s recovery and rebuilt confidence. Rising goods and tourism exports had supported growth and jobs, reducing unemployment and buttressing private consumption. According to the World Bank, Greece’s GDP per capita (2019) was $19,582 at nominal value and $31,399 at purchasing power parity. Greece is a developed country with an economy based on the service (80%) and industrial sectors (16%), with the agricultural sector contributing an estimated 4% of national economic output in 2017.