This document discusses the challenges facing the Italian labor market and provides suggestions and examples of good management practices. Specifically: The Italian market does not require highly specialized graduates and prefers secondary school graduates due to many small family businesses. However, employing graduates results in higher wages and employment. The document suggests Italian businesses reconsider how small family businesses can innovated and utilize skills and technology. It provides the example of how Benetton has changed its management, targets, products and communication through teamwork, focusing on emerging markets, ethics, and new technologies.

1. A Italian Family: example of good
management
This project has been funded with support from
the European Commission.
This publication reflects the views only of the
author, and the Commission cannot be held
responsible for any use which may be made of
the information contained therein.

2. THE PROBLEMS OF THE ITALIAN
MARKET
• The Italian market does not require highly
specialised hypergraduated or graduated
students (who, consequently, are forced to move
abroad)
• It doesn’t consider knowledge a crucial factor:
less than 100.000 companies focus their interest
on young graduated students
• It prefers secondary school graduates because
Italian companies are mainly small family-
businesses, with few employees; moreover,they
are now no longer competitive
• Titles and certifications frighten the
establishment

3. SUGGESTIONS
• The Italian market should reconsider small
family-run businesses in order to render these
more flexible and open to innovation. This
through use of intellectual capacity, innovation
and management. Competition cannot simply be
based on lowering labour costs.
• Give importance to the development of internal
skills
• Use of more advanced technologies and
implementation of personal talent
Sources: Cerved 2009 and AIDP (Italian association of Staff manager
directors)

4. SOME DATA
• Labour market is getting more and more atypical
with reduction in employment of graduated people
between 2008 and 2010 (an 18 % reduction of
executive personnel)
• An increase in employment of graduated people in
non-qualified activities (30%)
• A low percentage of graduates in Italy (20%)
against an OCSE average of 38%
BUT
• The percentage of employed graduates is 11%
higher than that regarding non-graduates. The
wages of the graduates are 50-55% higher.
Sources: report Ires CGIL; censuses; Federmanager

5. AN ITALIAN MODEL OF
ENTREPRENEURSHIP
The BENETTON case and its new trend
Recently the Benetton group has radically changed
targets, management, creations, communication
and merchandising.
IN WHAT WAY?
1)Passage of management from father (Luciano,
aged 76) to son (Alessandro, aged 47)
2) Team work, enhancement of human resources
and creativity
3) Analysis of new opportunities
Source: La Repubblica, Affari e finanza, 21/11/2011

6. 4) Analysis of world market data and trends and
analysis of forecasts; medium and long term
projecting. (e.g.: in ten years 50% of total
turnover won't come from Europe but from
“emerging” States) (Data from market surveys)
5) Diffusion of ethic and moral values through
advertisement campaigns (communication &
identity).
COMPETITIVENESS through creativity
6) Investments in new technologies (80% of
investments are carried out in the digital field in
order to establish direct contact with consumers)