Faced with the current international financial crisis, most companies have given up on their human resources development programs. But the alternative of using European Union funding could allow companies to train their staff or develop HR programs, as Romania has access to a large amount of European funding dedicated to human resources. Romania-Insider.com looks at funds for HR and at the companies that got them.

By Alexandra Fodor, Corina Saceanu

The Human Resources Development Program has been one of the operational programs that have been the most successful in attracting European funds so far. Such funds allow companies to maintain the staff they need for the development of their activity and properly train them in new areas to help reduce the company’s economic problems.

This year alone, EUR 1.9 billion in European financing has been approved for as many as 1,300 projects on human resources. The total value of the projects approved by the end of September this year is of EUR 2.3 billion and the difference will be covered by the project beneficiaries, according to data from the European Social Fund (FSE Romania).  Mid-May this year, there were only 720 approved projects.

For the period 2007-2013, the European Union has put aside EUR 3.6 billion for Romania's Social European Fund, which is 19.2 percent of the Structural and Cohesion Fund.

So far, in 2010, the Education Ministry, Universities, chambers of commerce, NGOs, hospitals, employers' associations, city halls, the National Penitentiary System, as well as private companies have applied for this source of financing.

KPMG audit company, telecom companies RCS&RDS and Orange Romania, Bostina & Asociatii law firm, Teraplast, Samusocial, the Motivation Romania foundation, the Association 'Alaturi de voi', Codecs Foundation, Salvati Copiii Romania, Junior Chamber Iasi, Siveco Romania,Asesoft, GDF Suez,  Actavis, Silcotub, UniCredit, Hidroelectrica, Lafarge, the Romanian Banking Institute, Netbridge Investments, Danone, Petrom, Continental Automotive, Titan SA, Banca Transilvania, Agrostar, the Brokers' Association, the Association of Business People in Romania (AOAR), the Soros Foundation, and HR Management have all received EU funding for HR. (See more details about a couple of EU-funded HR programs in the second part of the article)

The European funding is allotted through the European Social Fund (FSE Romania) and the institutions responsible for implementing this fund in Romania are the Ministry of Labor, Family and Social Protection and the Ministry of Administration and Internal Affairs.

On the HR side, companies have the opportunity to apply for projects such as training programs for qualifying employees, mentorship programs to encourage youth employment, financial aid for employing persons from vulnerable groups, occupational, health and safety programs, including purchasing of specific equipments.

A qualified labor force, with a high level of training, having the capacity to respond to the new technologies and to the changing needs of the market is essential for a competitive and dynamic  Romanian economy. And the use of funds through the Human Resources Development operational program could lead to this outcome.

FSE in Romania will finance two programs:

The Sectoral Operational Program for Human Resources Development (SOP HRD, or the short version in Romanian, POSDRU), with a financial allocation of EUR 3.4 billion – managed by the Labor Ministry

The Operational Program Administrative Capacity Development, with a financial allocation of EUR 208 million – managed by the Administration Ministry

Human resources development projects financed by EU funding

The banking sector was among the most active in accessing European funds. Volksbank has obtained European financing to train 782 employees, for a period of two years. The project received RON 5 million and its main purpose is to develop the skills and to increase the adaptability and competitiveness of the operational and executive staff. BRD Groupe Societe Generale is implementing a project called “Management education – key factor to improve competitiveness”. The main objective is to increase the managerial skills of 650 employees through general management trainings. Piraeus Bank Romania also uses European funds to implement a project that aims to improve the managing and technical skills of the employees.

Orange Romania will be training 450 employees using European financing. The company will implement a project called “Competitive Advantage for Romania: the development of the potential of top specialists”. The aim is to increase the competency level of top specialists within the company, through training on human management, process improvement, process management and innovation management.

Praktiker Romania will train 200 employees with focus on building their capacity to adapt to change and to learn faster, keeping a positive attitude towards change, effective management of stress and emotions, as well as improving leadership, communication and teamwork abilities. Praktiker Romania is the only company in the Romanian do-it-yourself market that has obtained European financing through the operational program Human Resources Development.

Baumix will train 35 employees - 31 from the production and logistic department and 4 from the research and development department. The six-month project called “Invest in people” aims to support actions in the area of human resources development, in particular to improve health and safety conditions at work and involves training activities like education, formation, health and psychological support.

alex@romania-insider.com, corina@romania-insider.com