EU funding in human resource development and its financial implications

Abstract

PURPOSE: The principal aim of this dissertation is to analyse the EU funding opportunities available to employers in the accounting industry that invest in their human capital, and determine the financial implications exerted on these firms. The study also analyses the application process to obtain EU funding and identifies reasons why firms did not benefit or apply for these funds. DESIGN: A qualitative research approach was undertaken to collect and analyse data to achieve the objectives of this study. A pilot study was conducted with a policy maker to gain an insight of EU funding. Subsequently, 4 semi-structured and 2 structured interviews were carried out with participants from the human resource department, an accountant and a director of EU advisory services. This study targeted both beneficiaries and non-beneficiaries of EU funding. FINDINGS: Accounting firms sought EU funding to aid in recruiting and training their employees. It resulted that not many firms benefited from EU funding, as the application process was very time consuming and some firms possibly did not have the necessary human resources to apply. Clauses were also introduced, thus restricting employers as to what they could apply for. Moreover, the application process was criticised for being too complex and it resulted that employers are discouraged from applying as the requirements have become much more onerous. Furthermore, fewer accounting firms benefited from EU funding as these funds do not cover national mandatory training. In addition to this, overall, the performance and competitiveness of the beneficiaries did not increase with the EU funding obtained as due to the size of the firms, these would have still been able to carry out the projects, even without the EU funds. However, employees benefiting from these funds gained knowledge on how to become better leaders and communicators. CONCLUSIONS: The study concludes that although desirable, EU funds are not as critical in large accounting firms as they are in smaller firms which might be more highly dependent on such income. The study also concludes that EU funds must be redesigned so that these can be accessed directly by employees. IMPLICATIONS: This study raises awareness of the need to increase promotion of the EU funds available to employers in the accounting industry, as well as the need to increase the allocation of EU funding to these firms. It is also hoped that the EU dedicates a new training fund to help in crisis situations and to help employees keep abreast of new developments.