Polish Non-Governmental Organisations (NGOs) as workplace resources: from the point of view of provinces with the highest unemployment

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1 298 Int. J. Trade and Global Markets, Vol. 1, No. 3, 2008 Polish Non-Governmental Organisations (NGOs) as workplace resources: from the point of view of provinces with the highest unemployment Joanna Hernik Centre for Marketing, Department of Economics and Food Economy Organisation, University of Agriculture in Szczecin 47 Zolnierska str., Szczecin , Poland Abstract: The main aim of this paper is to show NGOs as potential workplaces, both as paid or unpaid places of employment. The research was carried out through the use of telephone interviews, contacting NGOs that were chosen randomly from provinces with the highest unemployment rates in the Republic of Poland. The results clearly show that more than 70% of the selected groups of NGOs need additional staff for everyday tasks. From these data, it can be safely assumed that NGOs, in part at least, can have a positive influence on today s labour market difficulties. These organisations could offer the possibility of gaining some early work experience, especially for young people. Keywords: non-profit activity; unemployment; Poland; development policy. Reference to this paper should be made as follows: Hernik, J. (2008) Polish Non-Governmental Organisations (NGOs) as workplace resources: from the point of view of provinces with the highest unemployment, Int. J. Trade and Global Markets, Vol. 1, No. 3, pp Biographical notes: Joanna Hernik is an Academic Lecturer with practical experience. She obtained her PhD in Economy in Now working as a Tutor in Centre for Marketing of Agriculture University in Szczecin (Poland). She has published over 50 papers connected with marketing, management, the development of rural areas, NGO activity and law determinants, as well as other works connected with Public Relations. Presently, she is conducting research into the role of non-governmental organisations in the improvement of different aspects of economic and public life and the form of NGOs management and regulation. She is the chairman of Polish Association of Women in Science Polsena. 1 Introduction The development of an economy is limited by many different factors, one being permanent unemployment. The Polish labour market is highly diverse, both in respect of unemployment and work vacancies/opportunities. The current unemployment rate in Poland (according GUS, September 2007) amounts to around 12%, a bit higher amount than our neighbours; the rate in Germany and Ukraine is at around 10%, Copyright 2008 Inderscience Enterprises Ltd.

2 Polish Non-Governmental Organisations (NGOs): as workplace resources 299 in Czech Republic only 7.5%, though in Slovakia the rate is an alarming 19%. In Poland, the most problematic regions, from an unemployment point of view, are in the west and north and it seems that there is not a clear solution to resolve this difficult situation. The remedies tried so far have not seemed to dent these solid numbers (Wolnicki et al., 2006) and there is an obvious necessity to find other ways to tackle this problem. One solution can be the opportunity of gaining experience and finding one s own place in employment by working for a Non-Governmental Organisation (NGO), of which there are currently 72,000 in Poland. Of course, work for any NGO cannot be seen as a way of earning a great deal of money or the direct path to a career, but on the one hand, there is the definite possibility of gaining essential early skills, and on the other hand, could be a way of making leeway towards other works and encouraging activity of some kind. There are two main factors that need to be addressed, the first, clear information on the NGO staff needs (Saregant et al., 2002); the second, appropriate local policy, enabling employment through financial support and focusing on new workplaces. With regard to these problems, the goal of this paper is an attempt to assess if the NGOs located in provinces with the highest unemployment can be considered potential workplaces and then, if they can be a solution to widen the opportunities for young people, i.e., those leaving high school and for those permanently being without any occupation. 2 Research and methodology To ascertain if people are able to find new work opportunities in NGOs, the survey utilised telephone interviews to collect data. Through the survey, those interviewed were asked if their organisation needed more staff to help; if yes, what generally this new person could do and if there would be the possibility of remuneration (fully or in part) for any work done. Because the research method was in the form of a telephone interview, it was relatively difficult to canvas a large amount of organisations, and so after about 150 calls, the research sample was closed at 40. This number was limited by the fact that either some of the telephone numbers were out of date, that there was nobody willing to talk about organisation s staffing or employment needs or in some cases the speakers refused to talk at all. This clearly shows that many Polish NGOs do not realise that delivering proper market information is important, and have no sense of Public Relations as a marketing tool. This problem has been seen again and again in many papers both here and abroad and shows that not only Polish NGOs are unable to see the importance of external relations (Gray et al., 2006). To widen the research sample, the study was repeated by a questionnaire that was sent to 200 NGOs. 190 of them were returned by s. Owing to this, the whole sample finally encircled 230 organisations. The research only took in provinces with the highest unemployment rate, focussing on four regions (Figure 1): warmińsko-mazurskie (unemployment according to GUS: 19.6%), zachodniopomorskie (17%), lubuskie (14.6%) and kujawsko-pomorskie (15.2%). The marked provinces have populations of more that six million people (stated as 16% of total national population) and average joblessness exceeds 16.5% (a year before it was 24%). Joblessness is characterised by sluggish adjustment to the demands of the work supply structure as well as lack of qualifications in work structure (i.e., inappropriate qualifications or regionally ill-prepared for employment, Chamberlin, 2006). The displayed information has been set out as characteristic of the provinces with the highest unemployment rates, in Table 1.

3 300 J. Hernik Figure 1 Provinces with the highest unemployment rate (as of the end of September 2007) Source: Own study based on the Polish Statistical Department (GUS), Table 1 Polish provinces with the highest unemployment rate selected data Average monthly salary Population Number of in gross income in Number of economic entities business section registered Province In thousands In zlotys* In euros** NGOs*** zachodniopomorskie warmińsko-mazurskie kujawsko-pomorskie lubuskie *According to GUS; II **According to National Polish Bank average exchange rate at ; ***According to data. Source: Own study 3 Results Data collected from interviews with NGO boards based in the zachodniopomorskie province suggests that 8 out of 10 organisations are in need of new staff; only six NGOs answered that they did not need anyone and all work was carried out satisfactorily by its members. In only a few cases was the organisation able to pay for the additional work needed; all others simply required volunteers. In lubuskie province, the situation is a little different, a greater number of the NGOs asked, stated that they do not need any help (40%). Those that are seeking new staff are involved mostly in social work and animal welfare, as well as sport. However, more NGOs in this region are able to pay, 3 out of the 10 stated that they would be able to offer money.

4 Polish Non-Governmental Organisations (NGOs): as workplace resources 301 The next region, kujawsko-pomorskie, is characterised by a slightly higher rate, because 70% of these organisations answered that they would readily accept new staff. These are organisations acting in welfare and educational areas. Tasks for new members would be connected to office work, such as preparing applications for EU funds, the taking care of children and arranging general events. In the warmińsko-mazurskie province, similarly to zachodniopomorskie, over 80% of the NGOs stated that they would be happy with more help at work. Most vacancies for volunteers are connected to forms of welfare. Only three organisations were ready to offer money for the job. Areas, according to the stated provinces, where new employees/volunteers are required, are shown in Figure 2. Figure 2 Work opportunities in the selected provinces Source: Own study Generally, taking into consideration the four provinces, more than 70% of the NGOs are in need of new staff, mostly as volunteers. Many people could find work in welfare (taking care of the terminally ill or childcare) as well as other NGOs in education and culture (for example, in an accountant s office, writing applications for EU funds, professional training as assistants, in establishing new schools). These data are shown in Figure 3. Figure 3 Main NGO areas where people can find work Source: Own study

5 302 J. Hernik It is worth noting which organisations do not seem to need extra assistance or volunteers these mainly being in the areas of educational publishing, acting for the victims of road accidents, those connected with the retired or elderly, seaman welfare and the organisation of youth exchange. All of these groups stated that they are all able to manage sufficiently well with their current staff and did not need any other individuals at that time. 4 Discussion 4.1 The essence of an NGO Before offering a conclusion to the subject of this paper, it is worth reiterating exactly what an NGO is. In Poland, it is stated in the Act of useful social activity and voluntary, where it is mentioned that an NGO can be recognised as an organisation that is not a unit of government financing and does not act for profit (act from 24 April 2003; Journal of Laws no. 96, item 873, clause 3). It can additionally be said that an NGO exists from the wishes of citizens. So, all organisations can be divided into governmental (1st sector), commercial (2nd sector) and NGOs (3rd sector). An NGO, according to the cited regulation, can carry out useful social activities in principle, but do not have to, because in clauses 6 8, it is stated that they can also do paid activity as well as take part in business activities, if this is set out in the organisation s charter. With regard to useful social activities, within the Polish act, many different types of work are allowed including welfare, charity work, supporting national tradition, activity for national minorities, health protection and promotion, activity for sexual equality (women s rights) as well as human rights, local community development, work connected to scientific disciplines as well as education and parenting, physical education and sport, ecology and the protection of nature heritage, etc. Thus, all these different activities or organisations are able to work in paid and unpaid forms. These statements can be used to conclude that NGOs can utilise market mechanisms and pursue financial gain within their activity, and thanks to this, it can open premises and offer work. Viewed from a legal organisational side, the NGO can exist as an association, associated union as well as a foundation. One specific kind of association is the one acting as a church organisation, though these were not considered in this paper. The dependences among NGOs and other non-profit organisations are shown in Figure 4. If one assumes that an NGO can make a profit, which clearly has to be used for its chartered goals, but comes from the running of a business, then this organisation can be called a socially responsible enterprise or company (SRC). Nowadays, according to the Association of Klon/Jawor research, about 8% of Polish NGOs declare business activity (Gumkowska and Herbst, 2007). So, if SRC is one of the forms of activity that freely takes into account social and ecological aspects into their business domain, there is no reason to not rank them as NGOs that are conducting business activity. It seems that with time, due to the increasing difficulties in gaining money from sponsors and grants, more and more NGOs will have to begin the process of operating their own businesses, and NGOs can be considered as an important factor for the galvanising of local society into action and as a source of potential workplaces (Kramer and Kania, 2006).

6 Polish Non-Governmental Organisations (NGOs): as workplace resources 303 Figure 4 NGOs among non-profit organisations Source: Own study 4.2 The chosen facts about labour market Despite the large unemployment rate in Poland, many work vacancies can be found. At the end of 2007, there were 366,000 workplaces vacant. So, even in provinces with the greatest unemployment problem, free workplaces are easily accessible, in public sector 88,000 places and in private sector 278,000. In 2006, there was a working population of 16,940,000 people in Poland (The World Factbook, If we consider that there are 24,038,800 people between 18 and 65 years old (according to GUS) of workable age, this means that only 53% are in work. A number of these are currently in education and some are unable to work due to illness; therefore, the official rate should be revised. Interestingly, when the number of working people in relation to the national population is considered, it turns out that 33.5% of the population are working for the 66.5% not in employment. 4.3 The NGO s role in the labour market NGOs pointed out earlier also exist in the current market. As mentioned, the basic legal form of NGOs in Poland is as associations or funds. To sum up, altogether there are 72,000 NGOs, around 75% do not offer any permanent employment or have paid staff and only 35% engage paid individuals (about 120,000 people are employed). The average monthly salary does not exceed 1000 zlotys (283 euro), and the maximum is 1600 zlotys as a gross sum. The majority, nearly 39%, are involved in work connected to sport, tourism and recreation. A large number are based around a local area, a mere 28% claim nationwide or a larger distance of their work. NGOs, in accordance with statutory law in force, can employ in the same way as another commercial firms working on market. So, it can be a full-time or part-time job or a type of errand, odd work (all kinds of agreements set out in the Labour Code, from 1974; the joined text was printed in 1998 in Polish Journal of Laws no. 21, item 94). It seems important to add that since 2003, NGOs can have staff on the basis of a voluntary agreement (cited as the Act of social useful ). With reference to this law, a volunteer is an assistant who willingly works without being paid, fulfilling tasks set by the NGO or another organisation, such as the city hall, for example.

7 304 J. Hernik On the basis of these data, it can be proposed that as NGOs are so prevalent, they are an excellent source of the first job or employment, especially for the young. The young could work for NGOs dealing with welfare as well as education and culture. Even if the work for an NGO will not lead directly to a large wage, it can offer the chance of experience and better understanding of the modern work market and working methods. To utilise NGOs as potential workplaces, two factors have to be clearly set out, the first that NGO boards as well as local government have to have competence and awareness of what is to be done; the second, the unemployed have to receive at least minimum financial aid (from local authorities) to work in an NGO, because as the survey clearly shows non-profit organisations are very seldom in a position to pay for work. An excellent advantage from the work is that those who have worked for an NGO will be more responsible and experienced and could even go on to create their own companies with socially responsible values (Prout, 2006). So, employment experience with an NGO can cause a shift in the attitude towards the economy as a whole and this attitude might, finally, alter developing countries like Poland. It is also interesting that NGOs could also offer opportunities to the disabled, who are still kept from actively entering the work market in Poland (80% have no occupation). Another important matter is not only economic growth of a given region (connected with a drop in unemployment, for example), but also social change, because people want to be needed and do something useful and constructive. So, NGOs do not only offer the chance of being a first workplace, but also a way of gaining a better, more positive frame of mind and protecting the individual from potential depression. It should also be mentioned that NGOs do not usually require any special skills, so many diverse members of society can become involved to gain experience and do something positive for society and themselves. 5 Conclusion In spite of the work vacancies available around Polish provinces, high unemployment rates in the northern and western areas of Poland are the cause of what could be called a maladjusted work market. Therefore, local governments ought to look for as many alternative methods to alleviate these problems as possible. One excellent method could be to utilise NGOs work activity, this could come from collecting wider information about the NGO s individual needs and offering better support to increase employment opportunities within them. As the surveys that were conducted show, many NGOs really have development potential but do not have the expertise to get more capital or know-how to involve more staff/volunteers in their activity, needing help in their offices or work connected with day-to-day running of the organisation. It seems clear that NGOs are involved in so many areas and activities, doing this with such flexibility, something noted in possible work areas earlier in the text, that this could be the beginning of a shift in employment methods and could be a kind of threshold of changing situation.

8 References Polish Non-Governmental Organisations (NGOs): as workplace resources 305 Chamberlin, G. (2006) The rise in European unemployment: a bargaining perspective, Journal of Economic Studies, Vol. 33, No. 1, pp Gray, R., Bebbington, J. and Collison, D. (2006) NGOs, civil society and accountability: making the people accountable to capital, The Journal of Accounting, Auditing and Accountability, Vol. 19, No. 3, pp Gumkowska, M. and Herbst, J. (2007) Basic Facts about Non-Governmental Organisations Survey Report 2006, Klon/Jawor Asoc., Warszawa, Kramer, M. and Kania, J. (2006) A new role for nonprofits, Stanford Social Innovation Review, No. 1, Prout, J. (2006) Corporate responsibility in the global economy: a business case, Journal of Society and Business Review, Vol. 1, No. 2, pp Saregant, A., Foreman, S. and Liao, M. (2002) Operationalizing the marketing concept in the non-profit sector, Journal of Non-profit and Public Sector Marketing, Vol. 10, No. 2, pp Wolnicki, M., Kwiatkowski, E. and Piasecki, R. (2006) Jobless growth: a new challenge for the transition economy of Poland, International Journal of Social Economics, Vol. 33, No. 3, pp Websites The World Factbook, GUS Polish Statistical Department,