The European working population on 35% consists of youth, and their share in total unemployment is decreasing every year, but still, in 2017 it was equal to 17 percent. The unemployment rate among young people without work experience during their education was 15.7%, while for persons with work experience outside the curriculum – was 8.1%. This indicates the necessity to introduce practical knowledge subjects in the high education curriculum, to strengthen the recruitment of young graduates.
Different researches show, that the practical knowledge and work experience are important for enabling young students acquire work-relevant skills, both technical and soft/behavioral (like team work, language skills, multicultural awareness and ability to collaborate and be able to make a presentation to others), and improve their overall employment perspectives, compared to those students engaged only in theoretical classroom-based learning. A lack of practical knowledge and workplace experience, with related skills and competencies, are one of the major contributing factors to high EU youth unemployment rates since 2008.
This lack of practical knowledge results in skills shortage in every industry, but most often it is seen in the financial and administrative services. Research shows that nearly 45 percent of employers cannot find employees with the skills they require, both technical and behavioral/soft. Skills mismatches become a serious challenge and raising serious concerns witnin the EU. There are two main factors behind skills mismatches: slow adaptability of education and training system to the introduction of new skills and learning methods, new subjects; and low labor mobility across economic activities and regions.
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As companies digitalize, automate and transform, finding candidates with the right blend of technical/hard and human strength/soft skills is very important. 27 percent of employers admit that applicants lack either the hard or the soft skills they need. Globally, more than 56 percent of employers acknowledge that communication skills, written and professional verbal skills, are their most valued human strengths followed by professional cooperation, negotiation, and problem-solving skills.
The range of study programmes for financial professionals offered by public and private universities is very wide and the programmes’ curriculums are developed following the national and international economic situation and trends. Though, employers are not formally involved in the design of curriculums. At the same time, their involvement by way of designing of the practical module and provision of work-based practice can enhance the quality and relevance of students’ knowledge and skills. It can also decrease the skills mismatches in that industry since employers will be participating in creating studying materials and directing higher education institutions for the new hard and soft skills they are looking for in their potential employees. Also, it will create the link between higher education institutions and employers or enterprises.
Involvement of professional organizations will further increase the relevance of students’ knowledge and their changes for prospective employment. It will add transparency and recognition of financial skills and qualifications on national and international levels, and will positively influence labor mobility.
