Social, Cultural, Demographic
and Natural Forces
It is defined that Social and demographic changes could have a major impact on virtually all type of markets; being our project, a company focused in the segment of Recruiting, Screening, and Selecting the best candidates for any position in any organization, Social Forces would impact on factors, indicators and statistics of our interest.
There could be positive and negative social forces and they can have a profound effect on any company's ability to recruit and retain quality employees. By identifying those social forces, we can learn how to avoid the negative ones and use the positive forces to our advantage
Out of the factors listed, we have chosen those expected to impact directly our Project in Colombia.
http://www.indexmundi.com/colombia/demographics_profile.html
CHILDBEARING RATES
The total fertility rate (TFR) is a more direct measure of the level of fertility than the birth rate, since it refers to births per woman. A 2.07 children born/woman (2014 est.) is considered the replacement rate for a population in Colombia.
This rate could help us to understand potential of the workforce for the midterm future. It is important to know that nowadays child bearing rate has decreased approximately 50% and will let available a reduced workforce in the future.
The social and working environment will change and we have to be prepared to face it under a competitive strategy for and elder population.
http://knoema.com/atlas/Colombia/Topics/demographics/Fertility/Age-of-childbearing
http://www.indexmundi.com/colombia/demographics_profile.html
NUMBER OF SPECIAL INTEREST GROUPS
These are the managerial organizations that link the nation's agricultural, commercial, financial, industrial and professional elites.
Examples of specific interest groups could include unions, business associations and trade groups, and as a matter of fact some of them get special privileges for workers. Build conventions or associating with specific interests groups could give us a broad range of opportunities to grow. Some examples of these groups could be FENALCO, Fedemetal, ANDI, Asobanco, FedecafƩ, ANIF, Cooperative and Solidarity sector by type of industry, Pharmaceutical Associations, etc. In a near future as a result of the Peace Process, there will appear new groups of interest in the Agriculture and Mining sectors, and of course we need to be steady to take advantage of those new opportunities.
NUMBER OF MARRIAGES
This demographic statistic comes together with family growth and number of births. This could affect our project given the situation that the new maternity regulation, which pretends to extend the number of maternity weeks would impact women activities in the labor market, just because of the cost and administrative circumstances of this new labor proposal. The industry expects that this labor regulation do not increase labor costs. On the other hand, the numbers of single mothers in employment is increasing, but could be affected in the future due to parenting payments and the maternity allowances.
http://chartsbin.com/view/3232
http://www.unicef.org/infobycountry/colombia_statistics.html
NUMBER OF DIVORCES
Under the analysis the higher the number of single workers, the higher the availability of professionals and workforce. On the other hand both parents share the costs of bearing children, and this implies that a single prospect will have to prepare and be competitive to face the responsibility to raise a family. We do not see a relevant impact of this demographic in the Project. Anyway Divorce induces social effects, health effects, and educational effects and of course labors effects.
According to the SuperIntendencia de Notariado y Registro in Colombia proportionately for every registered divorce, 2.3 civil marriages are also registered. Under a different point of view, in 2014, civil marriages and divorces in Colombia increased 1.77 and 0.49 percent, respectively , when compared to the same period of 2013.
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http://www.portafolio.co/portafolio-plus/matrimonios-y-divorcios-colombia-el-2014
NUMBER OF BIRTHS
In the long term, as the population gets older there will be the need of having available a younger, updated and educated workforce. The profiles regarding professions and age would have to be adapted to this new working and social environment. We can see that the number of births per 1000 population has been decreasing, and again labor force will be getting older if we have in mind the increase in life expectancy.
Birth Rate: 16.47 births/1,000 population (2015 est.) country comparison to the world: 116
https://www.cia.gov/library/publications/the-world-factbook/geos/co.html
NUMBER OF DEATHS
This demographic could be seen from the Health, Safety, Environment and Quality point of view: In other words contribute to attain improvements in the work place safety, and demonstrate a remarkably high health.
A Project like ours should contribute to identify specific professions and educate the adequate profiles, trained to handle specific risks on specific Jobs. We must consider, having this statistic in mind when running our process for hazardous professional environments.
Death rate: 5.36 deaths/1,000 population (2014 est.)
https://www.cia.gov/library/publications/the-world-factbook/geos/co.html
IMMIGRATION AND EMIGRATION RATES
This demographic is better known as Net Migration Rate and includes the figure for the difference between the number of persons entering and leaving a country during the year per 1,000 persons. This is not a major factor, nevertheless globalization together with the growth of certain industries (i.e.: Petroleum, Technology) and a higher academic level of our professionals, are sufficient reasons to explain why our young professionals have been opening the doors and have originated a massive exodus to different countries, where they have found better professional expectations, and a better quality of living. Giving this situation, we will need to make our best effort to convince them to stay in our country.
The number of professionals coming from other countries is not a relevant subject, exception made of those professionals expatriated from branches located in other countries but working within the same organization.
http://www.semana.com/nacion/articulo/cerebros-fugados-de-regreso-colombia/365642-3
http://www.indexmundi.com/g/g.aspx?v=27&c=co&l=en
SOCIAL SECURITY PROGRAMS
Social Security remains as one of the most important programs and factors affecting a project like ours. It provides the foundation of income on which workers can build their future and plan for their retirement, providing valuable social insurance and health protection to workers, by making Social Security payroll tax and other contributions to build their pension plans, which guarantee a certain benefit level upon retirement.
Basically, the Social Security Rate is a tax related with labor income charged to both companies and employees; in Colombia there are these 4 social security programs
1. Unemployment benefit
2. Social insurance system
3. Old age pensions. Retirement program
4. Teachers, the armed forces and the police all have their own systems.
In Colombia Social Securityās deficits are permanent and growing. An excessively high cost of welfare payments could be seen as an obstacle to market dynamism, economic growth and employment generation.
Over-generous social benefit levels would also affect professional competitiveness, individual initiative and self-responsibility.
Following this logic, it has been said that a high level of social spending could be considered a cause of high unemployment and high labor informality just because employers have to pay an amount of payroll taxes on the workerās behalf and it could be seen as an expense.
LIFE EXPECTANCY RATES
Shifts in age structure generally result in new service demands and economic requirements. It is necessary to take account of employment characteristics in both the working-age and elderly populations and redefine the strategies for the economically active elder population. Aligned to a decrease in the number of births, as per the life expectancy average increases and the workforce gets older, we will face the need to identify a workforce with the latest knowledge and prepared to work under a new and advanced technologic surrounding.
http://www.indexmundi.com/g/g.aspx?v=30&c=co&l=en
Age structure:
0-14 years: 24.94% (male 5,967,860/female 5,688,106)
15-24 years: 17.81% (male 4,234,564/female 4,087,134)
25-54 years: 41.71% (male 9,653,094/female 9,841,546)
55-64 years: 8.62% (male 1,885,481/female 2,141,618)
65 years and over: 6.93% (male 1,349,613/female 1,887,712) (2015 est.)
https://www.cia.gov/library/publications/the-world-factbook/geos/co.html
PER CAPITA INCOME
According to DANE, the PER CAPITA INCOME registered a variation of 2.8% in the first quarter of this year, a figure that contrasts with the growth in the same period last year,It was 6.5%. This key variable affect us because it help us to see how the economy is changing and how the market will provide us new opportunities.
LOCATION OF RETAILING, MANUFACTURING AND SERVICE BUSINESS
A strategic location will provide us the opportunity of get known in the market and start positioning our bussiness by the service we are offering. Also, by having a strategic location we can establish our business near direct competition to analyses and be informed with all the changes that may occur in the market.
ATTITUDES TOWARD BUSINESS
This key variable is one of the most important keys for our company. The attitude toward business show us the restrictions that new companies need, it show the difference between independent workers and employees in big companies. Also, we can see the unemployed percentage that is our main interest in our companies. Due that our companies is looking for helping those that canāt get a job because they are just graduated and doesnāt count with experience, or those who doesnāt had a degree and canāt get a job easy (teen moms, maids, hard workersā¦etc)
In June 2015, the national unemployment rate was 8.2%. Compared with the same month of 2014, the unemployment rate 1.0 percentage points (9.2% in June 2014) was reduced.
LIFESTYLES
The lifestyle in Colombia depends in the economic level and the kind of work the person or family has. Colombia is divided in 6 stratification, in the stratum 1 and 2, the resources that they manage is low, they doesnāt count with clean resources like water, food, medical servicesā¦ etc that means that their main concern is to provide to their family the essential resources so they can survive. the stratum 3, in most of the cases count with a āāmaidāā someone that take care of the cleaning, order of the house and made the food while the owners work daily to pay public services and taxes. In the other hand, people who live in stratum 3 doesnāt count with the money of giving themselves the pleasure of expensive restaurants or leisure activities. The next one is stratum 4, this is called the middle and stable stratum, in this sector, people count with more benefits, like a maid, well paid salaries and they can provide them-self leisure activities, in most of the cases people who lived in stratum four had a stable job. The last ones are 5 and 6 this are the highest stratum, they count with luxuries, high salaries and more benefits than the others. Thus, those who have more financial power pay more for public services and contribute to the lower strata can pay their bills In our company, we want to provide a service that can help all the stratums helping them to find a stable job that can afford their necessities, according to EL DANE, unemployment is high in stratums 1,2 and 3 and helping them to acquire a better life style.
http://www.bbc.com/mundo/noticias/2014/09/140919_colombia_fooc_estratos_aw
http://www.portafolio.co/portafolio-plus/asi-estan-distribuidos-los-colombianos-estratos-sociales
TRAFFIC CONGESTION
According to a recent study made by experts, in Bogota about 46% of the road network in BogotĆ” is in a bad state, 18% are in a poor state and only 36% are in good condition. This result show that the traffic in Colombia have a large impact in the development on the city. This affect the economy growth because it will affect the distribution of products, the time spend developing a job and the punctuality with important business.
AVERAGE DISPOSABLE INCOME
The minimum wage in Colombia for 2015 will have an increase of 28,350 pesos, equivalent to 4.6 percent.
That means that the minimum wage that Colombians receive is 644,350 pesos.
TRUST IN GOVERNMENT
According to DANE:
ā¢ El 87,87% of Colombians between 18 years or more consider that democracy is the better way of government for Colombia in the other hand the 12,12% consider that it is not the better option.
ā¢ El 68, 21% of citizens shows to dont agree with the political movements, in the other hand the 31,78% says that is good for Colombia.
ā¢ Un 31,08% of the citizens said that they had no interest in the goverment of Colombia but the 29,48% shows to have some interest and 24,85% says to have a lot of interests
ā¢ El 37,21%, citizens who sympathize with the parties feel such an affinity for their ideas; the 34,15% just express their views because of family tradition .
This information for the industry is not relevant at all because despite of the fact that industries are regulated by the government, the service that we are providing doesnāt need the trust in the government with our customer and the future affairs.
https://www.dane.gov.co/files/comunicados/cp_ecp07.pdf
ATTITUDES TOWARD GOVERNMENT
As we said in the key before, despite the government regulate all industries, the opinion of our costumer toward the government doesnāt affect the service we are providing.
ATTITUDES TOWARD WORK
Acording to a study mady by trabajando.con and universia 66 % of Colombians doesnt work in their area of academic trainin. Thats why in our company we want to offer the opportunitie to work in their studies.
BUYING HABITS
In Colombia just the 20% of population has a high purchasing power, and the Price is the most important factor that influence Colombian consumers, also the consumptions habits are base on purchasing power. According to the chart in 2013 are spending 10.8 US dollars in billions, and is projected to increase by 34% in 2020. All of this will be reflected in the level of employed population and the improve of the productivity in Colombia, wich is a vital part of Sabana consulting to help to this happen.
ETHICAL CONCERNS
Our country can evaluate ethical concerns between Transparency International with corruption index. As The chart shows Colombia scored 37 points out of 100 on the last year corruption perception, on a scale of 0 (highly corrupt) to 100 (very clean) and is the 94 least corrupt nation out of 175 countries. We have an alarming rate of corruption, reflecting lack of ethics and values within the population, for the company is very important to evaluate these factors when is time to choose employees and organizations.
http://www.tradingeconomics.com/colombia/corruption-rank
ATTITUDES TOWARD SAVING
According asofiduciarias, colombian people actually hold far more cash than they think they should. Being realistic about economic risks, is very important, because one of those is represented by the expectation of a worst job market. This contemplation adds to the fact that they also expected that they can save more money in next years, as is shown in graphics below, allow our company to offer good new opportunities for people looking for salary increases and better lifestyle.
http://www.asofiduciarias.org.co/p/Diego%20Mora.pdf
SEX ROLES
According to studies, Colombia has issues about sex roles, although this is an issue that should be eradicated, insecurity and mistreatment of woman is something that make her the most vulnerable person in society. The chart is a clear example that woman is subestimate, and are more unemployment women than male. Our company provides an opportunity without discrimination gender, culture, sexual preference. If the person have the skills to occupation the charge in work, he or she will have a opportunity.
http://www.dane.gov.co/files/investigaciones/boletines/ech/ech_genero/Bol_Sexo_ene_mar_15.pdf
ATTITUDES TOWARD INVESTING
Colombia is a country with a lot of qualified people able to work and help companies around the world, for that reason foreign people are looking for new opportunities and investments and according to the graph Colombians lead interest in stock investing with 50%.
http://www.asofiduciarias.org.co/p/Diego%20Mora.pdf
RACIAL EQUALITY
Recruitment companies worldwide, and especially in Colombia are criticized because they usually have preconceived ideas about skin color, college, stratum, beliefs, sex, etc. One of the group's ideals Sabana Consulting is to believe that everyone deserves a chance of growing up and we do better than other companies.
USE OF BIRTH CONTROL
Colombia has a low use of birth control, because there are many factors that affect the number of births, like poor education system, families without parental figure and corruption. This variable affect us, because countries with highest birth rates develop young population, and that is our target market. According to the chart the use of birth control are increasing, but still there are many concerns about the Young people and number of births.
http://www.revistas.unal.edu.co/index.php/ceconomia/article/view/24109/31548
AVERAGE LEVEL OF EDUCATION
In our country, 42% of 25 to 64 year olds attend at least upper secondary education. Only Indonesia, Turkey, China, Portugal and MĆ©xico have smaller percentage. Also according to the graph, we see that is very low the percent the population who is studying, and this support our company to look the level of knowledge that the people will have, to recruit them or not.
http://www.dane.gov.co/index.php/esp/cultura-estadistica/89-sociales/educacion/3901-educacion-formal
GOVERNMENT REGULATION
This variable directly affects the company, because there are different standards depending on the type of organization, in our case for recruitment companies, they affect taxes, worker laws, contracts, salaries, pensions, work licenses, rights that are established by constitution. Also, payment of wages for service delivery, membership of the General Social Security System, affiliation to a family compensation fund, payment of social benefits, holidays, membership in an association.
ATTITUDES TOWARDS RETIREMENT
In Colombia a new reform was established the first of January of 2015 that the number of weeks a person have to work to retire is 1300. They increased the number of weeks to be able to retire, before people only had to work 1275 to retire. This means that old people would need jobs because they need to reach the 1300 weeks of work.
ATTITUDES TOWARDS LEISURE TIME
The leisure time in Colombia is a very important social factor that can affect in many ways the aspects of the society. The people that have more leisure time with their jobs are happier and productive that the ones that don't receive a good leisure time in the work place. We should think about that with our own employees so they can be happy and productive.
ATTITUDES TOWARD PRODUCT QUALITY
The new global economyās regulatory environment for business defines the indicators that measure and benchmark regulations applying to domestic small to medium-size businesses through their life cycle.
With the development of new free-trade agreements with the U.S. and different nations of Europe, Asia, and America, (Pacific Alliance, CAN, G3, Mercosur, etc) Colombia (has signed or is negotiating FTA with more than a dozen countries) needs to address some internal issues regarding, technology, education and Infrastructure, oriented to improve the Quality of products and services. Colombian Government is strategically addressing and reinforcing its policies and legislation, regarding education, technical regulations, taxes and subsidies aimed at improving the industrial competitiveness and quality of our products and services.
The sector of the industry where we plan to develop our Project is closely related to these elements, given the fact that we need to have in mind the educational, experiential and professional requirements of the new global environment. The World Bank has defined and ranked the performance in each of its āDoing Business indicatorsā under a global perspective. Colombian business environment (ranked 34) is really positive which opens the doors for foreign investment and gives our project an optimistic perspective
Rankings on Doing Business topics for Colombia
Scale from 0 to 100, where 0 represents the worst performance and 100 the frontier
ATTITUDES TOWARD COSTUMER SERVICES
It has been said that Customer Service is the best indicator of public attitudes toward government; as the quality of government service delivery increases, public attitudes toward government also increases.
Following with the Free Trade Agreements umbrella, the concept of trading professional services, closely follows the WTO General Agreement on Trade in Services (GATS) approach, which encourages the use of international standards and, in doing so, it also promotes the cooperation with the relevant international organizations.
Colombia and our Industry Segment must cover all four modes of supply of a service, as defined under the GATS, which addresses all services sectors. Assessing all the critical success factors will enable our project to understand the challenges we face, the level of support needed and the pace at which to enact change and supply a highly professional service.
This international legal framework that is being adopted by different Colombian governmental institutions (I.E.; Superintendencias de Industria y Comercio, Ministerio de Comercio Exterior, MineducaciĆ³n, etc.) will define our pathway regarding the new conditions, competitive taxes, and opportunities for foreign investment and local economic activity
https://www.wto.org/english/tratop_e/serv_e/20-prof_e.htm
POLLUTION CONTROL
Colombia and specially BogotĆ” is one of the most contaminated cities, because of that, government established rules to control the pollution. This variable does not affect us directly, but has a high impact in population.
ATTITUDE FOREIGN PEOPLE
Nowadays the globalization is a fact and with it, the relations between countries are increasing. This challenges will affect all the business, because foreign people, will join in our industry looking for a job and this will generate incomes and they have the same benefits as colombian population.
ENERGY CONSERVATION
Changes in economic structure also influence energy intensities.
The tertiarisation of the economy will decrease the final energy intensities, so this could decrease spending in energy and increase the incomes of the country, the tertiarisation apply for all kinds of business.
http://www.worldenergy.org/wp-content/uploads/2013/09/WEC-Energy-Efficiency-Policies-report.pdf
SOCIAL PROGRAMS
One of the most important social programs in the city is "Bogota Humana", its objective is to combat social segregation, corruption, insecurity and build a dignified and equitable city for everybody.
http://www.bogotahumana.gov.co/plan-de-desarrollo
NUMBER OF CHURCHES
Bogota is one of the most diverse cities in the country, a lot of churches and religions are part of the city because many domestic and foreign people come to reside in Bogota bringing their beliefs or cultures. According to a recent survey conducted by the Ministry of Planning There are 1,544 places of worship.
http://www.culturarecreacionydeporte.gov.co/bogotanitos/bogodatos/bogota-ciudad-de-iglesias
SOCIAL RESPONSABILITY
Corporate social responsibility refers to the act that made a contribution to the community in aspects as social, economic and environmental benefits so that there is a better collective advantage. For this reason, for our company is important to consider this aspect because we are in an increasingly competitive and globalized market so that social responsibility will always be important to reach greater competitiveness and added value compared to others.
http://www.dt.gob.cl/1601/articles-88984_recurso_1.pdf
ATTITUDES TOWARD CAREERS
We are in an increasingly globalized world where the market is very competitive and is constantly advancing so some of the attitudes towards the important work at the moment, it is to work every day with imagination and creativity so that they can make better and innovative processes daily, and because of that we can have added value in industry and closer relationships with our customers.
POPULATION BY AGE, SEX
In the graphics we see that female are in a bigger average than male, and that the population in Colombia was 47.7 million people in 2014.
http://populationpyramid.net/colombia/2015/
http://www.tradingeconomics.com/colombia/population/forecast#
ATTITUDES TOWARD AUTHORITY
Attitude toward authority in Colombia is an issue that does not develop in the best way, because problems such as crime, corruption and abuse of authority and power affect the daily life of all Colombians. This is something that greatly affects the industries and citizens of the country as affected by policies or laws imposed by a government that is not correct and so we see the situation of underdevelopment in Bogota and the country in general.
NUMBER OF WOMEN AND MINORITY WORKERS
This key variable is important for us because it let us know the percentage of women that are working in Bogota. With this we can see that Bogota has a high percentage of women working so that should make us take into account women when we offer our services to the unemployed people.
References: http://www.culturarecreacionydeporte.gov.co/portal/sites/default/files/boletin_mujeres_en_cifras_no1.pdf
NUMBER OF HIGH SCHOOL AND COLLEGE GRADUATES BY GEOGRAPHIC AREA
(High school)
(College)
This key variable is important because it is very useful to us knowing about the people who graduate from high school and college so we may know an average of the people who is looking for a job. With this graphs we can see that there are less people studying in high school therefor they are not having a proper academic formation to be able to find a job.
http://www.mineducacion.gov.co/sistemasdeinformacion/1735/articles-212352_bogota.pdf
RECYCLING
In Bogota there have been some recycling policies towards the organizations. This affects any organization including us because we have an office and have to follow certain rules of recycling.
Reference: http://www.alcaldiabogota.gov.co/sisjur/normas/Norma1.jsp?i=43118
WASTE MANAGMENT
Waste management all over the world is very useful and important because it reuses sources like wastes and makes something productive with them. This is an important aspect because it can lower costs and also be friendly with the environment.
AIR POLLUTION
Although air pollution can affect the consumers, in our service industry and our project it has not much of an impact.
WATER POLLUTION
Water pollution can affect us in a lower way such as being careful with the water we buy and use in our office and provide to our visitors.
OZONE DEPLETION
The ozone depletion does not cause a big impact on our service company because we donāt contribute directly to the ozone depletion.
ENDAGERMENT SPECIES
This problem does not affect our service company because we donāt have any direct or indirect interaction with anything regarding endangerment species.
