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Measuring Skill Gaps in Qatar
                                                                        and the Arab World
About Us

  Tahseen Consulting is an advisor
  on strategic and organizational
  issues facing governments, social
  sector institutions, and
  corporations in the Arab World.

  You can read more about our
  capabilities at tahseen.ae




                                                                 Observations on the difficulty of scientifically measuring skills
                                                     ▲




Public Sector
                                                                 gaps in the region with a specific emphasis on Qatar
Social Sector

Corporate Responsibility
CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of Tahseen Consulting is strictly prohibited   www.tahseen.ae           | 1
Popular theories suggests intangibles are becoming a more important driver of modern
   economic growth in the transition to knowledge-based economies

                                                                         Knowledge-based
                  Through public policy and institutions,                   Economic
                  governments influence long-run growth                    Development




                                       Financial and
                                                                                                                         Intangible capital
                                   other tangible capital




                                                                                           Economic                                                            Computerized
  Capital markets                      Infrastructure       Capital equipment                                           Innovative property               information (programs
                                                                                      Competencies                                                            and databases)



                                                                                                Brand equity
                                                                                                                             R&D (patents, licenses and
     Economic growth can be affected by public policies                                (investments to retain or gain
                                                                                                                              general know-how) and
                                                                                       market share and investment
                                                                                                                                mineral exploration
     and Institutions concerned with                                                          in brand names)



     • International trade and openness                                                    Organizational capital
                                                                                                                                    Creative property
                                                                                         (investments in strategic
     • Education and training policies                                                     planning, adaptation,
                                                                                                                            (innovative/artistic content in
                                                                                                                                commercial copyrights,
     • Domestic and foreign Investment climate                                         organizational structures and
                                                                                                                                 licenses and designs)
                                                                                            business processes)
     • Macroeconomic and competitive policy
     • Financial markets
     • Institutional quality of government                                                 Firm-specific human
                                                                                            capital (employee
     • Security                                                                                   skills)
     • The availability of public services and infrastructure                                                                   Knowledge Components of KBE

Source: Corrado, Hulten and Sichel (2006)

                                                                                                                                                                        | 2
Knowledge-based economic development emerged as a policy goal in the early 90s due
to the regional commonality of several economic, socio-political, and cultural factors
                                          Regional Drivers                               Illustrative Regional Development Challenges
                                         1
                                                                                         • Dependence on foreign technologies
                                                                                         • Shortages/difficulty in finding/developing qualified employees
                                                                                         • Low capacity to transfer technologies
                                                                                         • Capital formation has not led to higher value industry or exports
                                                   Economic                              • Low levels of total factor productivity
                                                                                         • Suboptimal environment for business, entrepreneurship, and FDI
                                                                                         • Volatile oil prices leading to regional booms and busts
                                                                                         • Low R&D spending

       Knowledge-
                                         2
     based Economic
      Development                                                                        • Youth bulge
                                                                                         • Supply of highly educated youth has outpaced job creation
                                               Socio-political                           • Education systems are not well suited to the needs of KBED
                                                                                         • Political reform has proceeded at varying rates
                                                                                         • Work of international organizations has encouraged KBED


                                         3
                                                                                         • Religious importance of the quest for learning and knowledge
                                                     Cultural                            • Brain drain of prominent academics and scientists
                                                                                         • Perception the region is lagging behind in development
Sources: Al-Ali 1991, Sawhel 2009, Djeflat 2009, Program 2002, Hertog 2010, Program 2003, United Nations Educational 2010, Dhillion and Yousef 2009, Program 2010, Foundation and Program 2009, House
2011, Miller and Holmes 2011

                                                                                                                                                                                              | 3
Knowledge-based economic development in the Arab World is closely intertwined with
  economic and social development issues

     Emerging Thinking on Knowledge-based                         Empirically Established Links Between Human
     Economic Development in the Arab World                       Capital and Social and Economic Development
     Closely intertwined with policies that support               Several social and economic benefits are attributed
                                                                  to higher levels of human capital:
                     Economic integration and diversification
                     Innovation                                  Social Outcomes
                     Technology development
                     Entrepreneurship                            •   Higher levels of educational attainment
                     Job creation/workforce skills development   •   Increased health
                     Education and training system reform        •   Efficiency of consumer choices
                     Environmental sustainability                •   Higher levels of savings and charitable giving
                     Social development                          •   Social cohesion
                     Healthcare reform                           •   Increased self-reliance and econ. independence
                     ICT infrastructure development              •   Reduced Crime

                                                                  Economic Outcomes
                                        Significant
                                       emphasis on                •   Growth and competitiveness
                                      human capital               •   Enabling comparative advantage
                                                                  •   Increased productivity
                                                                  •   Domestic innovation
                                                                  •   Speeding technology adoption


Sources: Powell and Snellman 2004, Planning 2010, Rischard 2009

                                                                                                              | 4
Similar to Qatar in the QNV 2030, many Arab countries have embraced knowledge-based
economic development while stressing similar human capital development goals
                                     Justification for Knowledge-based                                       Specific Human Capital Objectives Identified
                               Economy as a Goal in National Development Plan                                        in National Development Plan
Country                                                                                               Improving Access   Improving Health, Increasing Female
                                       Economic       Economic        Environmental        Social       and Quality of      Safety, and     or Private Sector     Increasing
                      Job Creation    Integration   Diversification    Sustainability   Development       Education        Environment     Labor Participation Entrepreneurship

Algeria
Bahrain
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Sudan
Syria
Tunisia
UAE

 Explicitly stated as a justification for knowledge-based economic development goals or as a supporting human capital objective
  Not stated as a justification for knowledge-based economic development goals or as a supporting human capital objective



                                                                                                                                                                         | 5
Many of the Arab countries , including Qatar, face workforce skills deficiencies that slow
  knowledge-based economic development and negatively impact high skill industries
                                                                             10
       (as proxied by the World Bank Knowledge Economy Index Ranking)

                                                                                                                                                                                                High Skills Equilibrium
                                                                                                                                                     United Kingdom Germany
                                                                                 9   How does                                                                  Ireland
             Employer Demand for higher, knowledge-intensive skills




                                                                                                                                                Estonia                                   • Strong demand for high level skills
                                                                        High

                                                                                     Qatar make                                                   Czech Republic
                                                                                                                                                                    Spain
                                                                                                                                                                          Hungary
                                                                                                                                                                        Korea, Rep.
                                                                                                                                                                                          • Skills formulation institutions and the
                                                                                 8                                               Lithuania
                                                                                                                                                                                             enabling environment work in tandem
                                                                                     the transition?                                 Latvia
                                                                                                                                               Slovak Republic
                                                                                                                                            Poland       Croatia
                                                                                                                                                                    Portugal
                                                                                                                                                                         Greece           • Knowledge-based economies with
                                                                                                                                               Chile      Bulgaria                           lower levels of skills gaps
                                                                                 7                                  United Arab Emirates    Qatar
                                                                                                                               Romania                 Uruguay
                                                                                                                                       Bahrain        Malaysia      Costa Rica
                                                                                                         Kuwait
                                                                                 6                  Brazil                    Russia
                                                                                                                                                                 Serbia
                                                                                                                                                     Turkey                               • The perception of Arab employers
                                                                        Medium




                                                                                                                   Saudi Arabia        Jordan Oman                 Mexico Africa
                                                                                                                                                                      South
                                                                                                                                                                                             may deter entry into knowledge-
                                                                                                                      Belarus                                                                based industries which are perceived
                                                                                 5                                                               Colombia Lebanon
                                                                                                                                             China                                           to require skills unavailable in the
                                                                                                           Egypt                        Tunisia         Sri Lanka        Philippines         national workforce or too costly to
                                                                                                                               Morocco                Botswana Azerbaijan                    build internally
                                                                                 4
                                                                                                                                                    Bolivia             Vietnam
                                                                                                                      Cape Verde                                          Indonesia
                                                                                                                                          Syria    Honduras
                                                                                                                                                                  India
                                                                                                                                               Guatemala         Swaziland
                                                                                 3                                                                 Kenya
                                                                                                                                 Algeria
                                                                                                                                                                       Senegal
                                                                                                                                                                       Uganda
                                                                                                                                                                  Pakistan
                                                                                                                                                                             Ghana               Low Skills Equilibrium
                                                                                                                                          Zambia  Yemen Tanzania
                                                                                                                                                              Lesotho
                                                                                                                                         Burkina
                                                                                 2                                                                                        Nepal            • Employers face few skill gaps in a
                                                                        Low




                                                                                                                                           Faso           Mozambique Cambodia
                                                                                                                                                         Bangladesh
                                                                                                                                                             Ethiopia           Eritrea       predominantly low skilled workforce
                                                                                                                                                                      Rwanda
                                                                                                                                                                   Guinea
                                                                                                                                                                                           • Little incentive to participate in
                                                                                 1                                                                                                            education and training and raise
                                                                                                                                                                                              qualification levels and aspirations
                                                                                 0
                                                                                 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

                                                                                            Low                        Medium                                    High
                                                                                             % of firms with sufficient internal skills levels
Source:Author’s analysis of World Bank Enterprise Survey

                                                                                                                                                                                                                             | 6
Employers, particularly in the GCC, face both “skills shortages” as well as “skills gaps” that
limit performance and achievement of business objectives
                                                                 My Research Focus
                    Skills Shortages                                                     Skills Gaps
                         Skill Shortage

                                                                                            Skills Gap



                                                                          Desired
                Quantity of
                                                                          Internal
                  Workers
                                                                         Workforce
                  With a              Quantity of                                                                Current
                                                                         Skill Level
                 Particular             Workers                                                                  Internal
                   Skill                With a                                                                  Workforce
                 Required              Particular                                                               Skill Level
                                         Skill
                                       Available

  •   Genuine lack of adequately skilled individuals available    • Employers feel that their existing workforce has inadequate
      in the labor market with the type of skill being sought       skill types/levels to meet their business objectives

  •   Employers unable to recruit staff with the skills they      • New entrants to the labor market trained and qualified for
      are looking for at the going rate of pay                      occupations but still lack a variety of the skills required




                                                                     7
                                                                                                                              | 7
Skills deficiencies have severely negative impacts on firms in the region
                                                                                            Internal firm deficiencies
                       External labor market deficiencies

Skills                      Well Functioning Labor Markets                                Employers Require Effective
Formation                    Require Allocative Efficiency                          Firm-level Utilization of Workforce Skills
Objective
                                                                                Workforce skills levels meet the expectations of
                 Preparation of individuals with the skills, work experience,   employers either in terms of full occupational
Description      and qualifications in the quantity and quality to meet labor
of Objective                                                                    proficiency or in the ability to meet business
                 market needs                                                   objectives with current workforce skills levels

Impact on        Skills shortages requiring expatriate reliance for             Even when employees are hired, many still have skills
firm if skills   technical/commercial roles such as                             gaps requiring remediation through measures such as
formation         Technical Roles           Commercial Roles
                  Discipline Engineering    Finance                             • Increased training and trainee programs
system is         Geology/Geophysics        Business Analysis                   • More staff appraisals / performance reviews
weak              Process Engineering       Contracting & Procurement           • Implementation of mentoring / buddying schemes
                  Product/Process           Human Resources                     • More supervision
                  Research                  Information Technology              • Changing working practices and redefining jobs
                  Production Engineering    Sales & Marketing                   • Reallocation of work within the company
                  Production Technology     Supply & Distribution               • Outsourcing to external providers
                  Project/Facilities        Trading                             • Using government resources / funding
                  Engineering                                    O&G            • Incentives/rewards/recognition
                  Reservoir/Petroleum                          Example          • Sending employees for certification
                  Engineering                                                   • Providing cross functional exposure to the business
                  Well Engineering


Influence on     Medium to severe, but recruiting from outside                  Severe because skills gaps influence many
business         Qatar is a short-term solution to what is a large-             aspects of current operations including
operations       scale, systemic problem                                        efficiency, service, and profitability

                                                                                                                                        | 8
The changing demands of knowledge-based economic development create a need for
interdependence and collaborative networks for effective skills formation

        WORK IN PROCESS
         Education and Training System                                       Business Community
         • Ensuring Relevancy and Employability                                       • Workforce Investment
         • Quality Assurance                   Qualitative and                        • Workforce Development
                                               quantitative
         • Expanding Access                    supply-demand
                                               match                         Facilitate
                                                                             regular,
                                                                             on-the-job
                                                      National Skills        training and
                                                                             participation
                                      Link
                                                    Formation System         in skills
                                      economic       for Knowledge-          formation
                                      development         based
         • Coordination               with E&T        Development
         • Aligning
                                      system                                                 • Investment
                                                                                             Optimization
         Macroeconomic Policy                               Address policy,
                                                            informational, or
         With Skills                                        financial sources of             • Lifelong-learning
         Formation                                          underinvestment

         • Broad-based,                             Critical Government
                                                    Coordination Points
         Inclusive Skills Formation
                      Government                                                      Individuals


                                                                                                                   | 9
Yet several failures of the skill formation system can lead to skills gaps

  Market and Institutional                                1                                                      2                                                 3
  Failure Induced Skills Gaps                                          Transitional Skills Gaps                      Structural Skills Gaps
  A gap caused by structural policy or                                 A temporary gap between the skills of         A mismatch between employee skills and
  government institutional failure due to:                             current employees and the skills needed to    requirements of employers due to:
                                                                       meet business objectives which decreases
  Poor Macroeconomic Policy                                            as employees gain confidence in their jobs    Poor Staff Development and Retainment
  • Misalignment of education system with                              or complete training due to:
    development due to rapid technical and                                                                                 Staff Development
    organizational change or industrial policy                         Incomplete Orientation and Integration           • Failure to train and develop staff
                                                                       • Lack of experience                             • Inability of older staff to acquire
  Education & Training System Misalignment                             • Recently recruited                                necessary new knowledge and skills
  • Lack of funds, bureaucratic management,                            • Training program only partially completed      • Low or no training budget
    poor remuneration, and low standards                               • Recent merger/acquisition                      • Lack of commitment by senior leaders to
    leading to irrelevant curricula, poor teaching,                                                                        employee learning and development
    and an emphasis on abstract rather than                            Lack of Motivation
    practical training                                                 • Staff lack motivation                             Staff Retainment
  • Firms may hire staff requiring more training                                                                        • High staff turnover
    in the face of skills shortages                                                                                     • Retrenchments
  • Lack of specialized institutions to provide
    appropriate training                                                                                             Evolving Business Objectives
  • Lack of interaction between firms and
    specialized training institutions                                                                                Strategy-skill lag
                                                                                                                        • Changes in company strategy, goals,
  Insufficient Individual Investment                                                                                       markets or business models
  • Individuals may not know the future value of                                                                         • New products and services
    skills investments                                                                                                   • New working practices
  • Preference for more certain short term                                                                               • New technology
    returns to available jobs
  • Training offering no certification less                                                                          Changing job requirements
    attractive as value to other firms is reduced                                                                    • Inability of workforce to keep up with change
  • Legislation that raises wages above the                                                                          • Scope of job increasing
    market level reduces training investment
  • When pay and status are not linked to
    qualifications incentives are reduced

Source: (Acemoglu and Pischke 1996; Research 1996; Lall 1999; Ziderman 2003)

                                                                                                                                                            | 10
The GCC countries, in particular, appear to have significant levels of skills gaps

Rank     Country and Survey Year
                                    % of Total Firms Suveyed
                                     Which Have a Major or     Rank     Country and Survey Year
                                                                                                    % of Total Firms Suveyed
                                                                                                     Which Have a Major or     Observations
                                     Very Severe Skills Gap                                          Very Severe Skills Gap
 1     Brazil 2009                           73.03%             42    Oman 2007 MBRF                         33.00%
 2     Kuwait 2007 MBRF                      68.00%             43    Chile 2006                             32.06%
 3
 4
       Egypt 2007 MBRF
       Chad 2009
                                             66.00%
                                             57.33%
                                                                44
                                                                45
                                                                      Uzbekistan 2008
                                                                      Peru 2006
                                                                                                             31.97%
                                                                                                             31.33%
                                                                                                                               • Kuwait, Egypt, KSA, UAE
 5
 6
       Belarus 2008
       CapeVerde 2009
                                             55.31%
                                             53.85%
                                                                46
                                                                47
                                                                      China 2002
                                                                      Dominican Republic 2005
                                                                                                             30.73%
                                                                                                             30.67%
                                                                                                                                 amongst the top ten
 7     Saudi Arabia 2007 MBRF                53.00%             48    Estonia 2009                           30.40%
 8     UAE 2007 MBRF                           51%              49    Tunisia 2007 MBRF                      30.00%
 9     Kazakhstan 2009                       50.18%             50    Malawi 2009                            30.00%            • Maghreb countries and
                                                                51
10
11
       Russia 2009
       Argentina 2006
                                             48.90%
                                             48.35%             52
                                                                      Thailand 2004
                                                                      Egypt 2004
                                                                                                             29.96%
                                                                                                             29.80%              Egypt moved up the
12
13
       Morocco 2007 MBRF
       Romania 2009
                                             47.00%
                                             46.21%
                                                                53
                                                                54
                                                                      Kyrgyz Republic 2009
                                                                      Guatemala 2006
                                                                                                             29.36%
                                                                                                             29.31%
                                                                                                                                 ranking significantly
14     Algeria 2007 MBRF                     45.00%             55    Vanuatu 2009                           28.91%
15     Mauritius 2009                        44.97%             56    Yemen 2010                             28.72%
16     Micronesia 2009                       44.12%             57
                                                                58
                                                                      Kenya 2003                             27.64%            • Levant countries and
17     Ukraine 2008                          43.48%                   Slovak Republic 2009                   27.64%
18     Lithuania 2009                        43.12%             59    Samoa 2009                             27.52%              Bahrain in the lower 20s
19     Moldova 2009                          42.98%             60    Venezuela 2006                         27.40%
20     Tonga 2009                            42.67%             61    El Salvador 2006                       27.27%
21
22
       Latvia 2009
       Jamaica 2005
                                             41.70%
                                             41.57%
                                                                62
                                                                63
                                                                      Georgia 2008
                                                                      Turkey 2008
                                                                                                             27.08%
                                                                                                             26.82%
                                                                                                                               • Qatar and Oman in 30s
23     Gabon 2009                            41.34%             64    Bolivia 2006                           26.26%
24     Congo 2009                            40.40%             65    Algeria 2002                           25.47%
25     Guyana 2004                           40.37%             66    Honduras 2006                          25.46%            • Though there are some
26     Bahrain 2007 MBRF                     40.00%             67    Colombia 2006                          25.40%
27     Niger 2009                            38.67%             68    Benin 2009                             25.33%              differences in the data that
28
29
       Lebanon 2006
       Jordan 2007 MBRF
                                             37.96%
                                             37.00%
                                                                69
                                                                70
                                                                      Czech Republic 2009
                                                                      Laos 2009
                                                                                                             25.20%
                                                                                                             25.00%
                                                                                                                                 are hard to reconcile
30     Syria 2003                            36.33%             71    Malaysia 2002                          25.00%
31     Paraguay 2006                         36.22%             72    Armenia 2009                           24.06%
32     BurkinaFaso 2009                      35.79%             73    Namibia 2006                           23.71%
33     Zambia 2002                           35.75%             74    Uruguay 2006                           23.51%
34     Cameroon 2009                         35.26%             75    Botswana 2006                          22.22%
35
36
       Qatar 2007 MBRF
       Tajikistan 2008
                                             35.00%
                                             35.00%
                                                                76
                                                                77
                                                                      Mauritania 2006
                                                                      Croatia 2007
                                                                                                             22.03%
                                                                                                             21.64%
                                                                                                                               • 35% of private sector
37     Oman 2003                             34.63%             78    SriLanka 2004                          21.33%              employers in Qatar
38     Poland 2009                           34.51%             79    Morocco 2004                           21.06%
39     Albania 2007                          33.88%             80    Mali 2003                              20.78%              indicate a skills gap
40     Ecuador 2006                          33.13%             81    Bosnia and Herzegovina 2009            20.50%
41     Ivory Coast 2009                      32.32%             82    Bulgaria 2009                          20.14%



              Data Source:         MBRF-PWC Report             World bank Enterprise Survey

                                                                                                                                                         | 11
If generalizable to Qatar, graduates are lacking in both hard and soft skills
            Percentage of HR managers who agreed that newly hired                        Hard Skills
            students have appropriate skills                                             Soft Skills

                                                   University                   Vocational
                                         29        Graduates
                                                                          16    Graduates
            Egypt
                                      26                             12


                                    22                              10
            Jordan
                                      25                                  16


                                              33                                       36
       Morocco
                                         28                                      25


                                                            51                               41
            Saudi
            Arabia                                     45                               38


                                         29                                     23
            Yemen
                                      26                                   19
Source: e4e Employer Survey

                                                                                                   | 12
If generalizable to Qatar, training by employers is focused primarily on hard skills
                              Percentage of HR managers who indicated their firm provides training
                                                                                                          Hard Skills
                              in hard vs. soft skills
                                                                                                          Soft Skills
                                                                                                     94
                              Egypt
                                                                     45


                                                                                          79
                              Jordan
                                                              32


                                                                                               87
                        Morocco
                                                                   42


                                                                                     71
                              Saudi
                              Arabia                     26


                                                                                                     93
                              Yemen
                                                                          50
Source: e4e Employer Survey

                                                                                                             | 13
However, it is unclear what the normative threshold to which internal skills levels should be
 compared: Should surveys be measuring skills levels relative to proficiency performing a
 particular job or relative to achieving macro firm-level goals?

                        Skills deficiencies internal
                                                                         •
                                to the firm                                  How do firms prioritize training needs
                                                                             in an environment with significant
                                                                             hard and soft skills gaps? Do firms
                                                                             train to meet business objectives or
                                                                             for occupational proficiency? Who
Skills                                                                       should pay for general skills training?
Formation                  Effective Firm-level Utilization
Objective                        of Workforce Skills                     •   Is the training preference for hard
                                                                             skills more associated with meeting
                                                                             business objectives?
Description     Workforce skills levels meet the expectations of
of Objective    employers either in terms of full occupational           •   Soft skill training is risky due to
                proficiency or in the ability to meet business               poaching. Is there a bias towards
                objectives with current workforce skills levels              hard skill training due to employee
                                                                             poaching , preferences for public
                                                        Lack of              sector employment, and the wage
                                                      conceptual             premium in the public sector?
Evidence of    Skills Gaps                              clarity
a Deficiency                                                             •   Are competency assessments based
               • Current workforce has inadequate skill types/levels
                                                                             on occupational proficiency and the
                   to meet business objectives
                                                                             assumption of adequate soft skills
                                             OR
                                                                             suitable in an environment where
               •   Employers perceive current employees to be less
                                                                             there are large gaps in hard and soft
                   than fully proficient to perform their current jobs
                                                                             skills?




                                                                                                                | 14
The NDS advances several initiatives aimed at existing skills formation weaknesses, but few
are aimed at employees disadvantaged by previous skills formation failures
Priority                  Target Satements                                     Initiatives and Key Deliverables and Milestones
                          Target 1: Include work skills in the national
                                                                               • Align the national curriculum with the objectives for creating effective
                          curriculum including implmenting initiatives to
Increase awareness                                                               participants in the knowledge economy
                          foster student exposure to work environments
of skills required in
future work               Target 2: Operationalize work skills in the
                                                                               • Encourage schools to hold workshops with key employers to learn about
environments              national curriculum and enhance the
                                                                                 their skill requirements and gaps in the skills of new graduates
                          performance of academic and vocational
                                                                               • Career counselors in schools to advise on education and career paths
                          guidance in schools
                          Target 1: Increase the proportion of students        • Launch a campaign aimed at increasing enrolment in courses suitable
Prepare Qataris for       graduating with qualifications needed in the           for a knowledge economy
employment in the         knowledge economy by 65%-75%                         • Incentivize Qatari enrolment in knowledge economy courses
knowledge economy         Target 2: Provide diverse post-secondary             • Conduct studies on workforce needs and assess the gap between
                          education pathways to meet labor market needs          education output and requirements

Develop a regulatory                                                           • Appoint an oversight body and determine process model
                          Target 1: Define and implement standards tor a
framework to align                                                             • Determine the scope of the National Qualification Framework
                          National Qualifications framework
technical education                                                            • Decide on the reference model and structure
and vocational                                                                 • Build on the existing vocational education training initiative in deciding on
training with the         Target 2: Develop and implement a system of            international standards to be adopted by Qatar
education sector and      occupational standards for relevant professions      • Customize occupational standards
labor market needs                                                             • Appoint an oversight body and determine organizations and processes
                          Target 1: Develop and implement a plan
Align technical and                                                            • Determine and prioritize needs for the different types of TEVT
                          aligning TEVT programs with the needs of the
vocational training                                                            • Develop an implementation plan
                          labor market
programs and
outputs with the          Target 2: Develop and industry partnership           • Conduct a benchmarking study on best practices related to partnership
needs of society and      model accepted by all stakeholders                   • Determine key areas and projects for TEVT partnerships with industry
the labor market
                          Target 3: Establish a first partnership              • Integrate partnership into the regulatory framework
Increase prominence       Target 2: Incorporate TEVT options into career       • Develop a TEVT career counseling system, including the necessary
of TEVT programs          counseling                                             legislative and regulatory systems

      K-12              Higher Education              Technical and Vocational Education

                                                                                                                                                     | 15
International experience suggests several options for intervention in training markets
                                Policy Options
                                Government            Government
Reason for Intervention         Subsidy of Training   Provision of Training     Complementary Policies

 Externalities                                                                None

 Property rights (employer                                                            Levy-grant schemes
 fear of poaching)

 Market imperfections                                                                 Deal with sources of
 (economic and social                                                                 imperfections if
 policy distortion)                                                                   politically possible

 Inadequate Firm-based                                                                Build firm training
 training                                                                             capacity; levy-grant
                                                                                      schemes

 Weak private training                                                                Build up private
 provision                                                                            training capacity

                                                                                      Reduce subsidies to
 Create equal opportunity                                                             trainees' peers,
                                                                                      selective scholarships
                                                                                      Targeted training
 Disadvantaged groups                                                                 subsidies;
                                                                                      employment creation;
      Source: Ziderman (2003)                                                         income redistribution
                                                                                                      | 16
There are several changes which appear necessary to improve the measurement and
response to skills gaps; Here are a few thoughts …
  •   There are potentially major flaws in current measurement approaches that lead to several sources of
      bias and necessitate a 360 degree approach – HR, employee, direct line managers, CxOs

  •   To more effectively measure technical skills gaps, there needs to be standardization of occupational
      skills questions to go beyond identifying soft skills as a source of skills gaps

  •   There is a need to more effectively link particular skills with the achievement of firm objectives rather
      than focus on occupational proficiency exclusively; This allows us to relate particular skill gaps to
      achieving both business and national economic development objectives

           Skills gaps are generally resolved through training yet the criticality of a particular skills gap to
            achieving business objectives is usually not measured. This might mean training programs to
            resolve skills gaps are misguided in that they focus on skills which may not affect the macro level
            business objectives of the firm directly

  •   There is a need to pinpoint the source of skills gaps to suggest and determine an appropriate response;
      It is not always the education system at fault and potentially there are intervening labor market,
      organizational behavior, and socio-cultural issues at play

  •   There is a need for more rigorous academic work on the subject – single, direct question consulting
      surveys get headlines but don’t solve the problem

  •   Supply-side interventions in the education and training system are unable to backfill previous skills
      formation system failures which impact firms in Qatar now. What do we do once we identify skills gaps?



                                                                                                            | 17
Questions for group discussion

  1.   Assuming there was a national survey of skills gaps in Qatar, what would be the most
       appropriate threshold against which to assess current workforce skills levels? Should we be
       measuring gaps relative to a firm’s workforce to perform their present job or relative to current
       workforce skills sufficiency to meeting business objectives? Should we be asking:

            How many of your current employees are fully proficient to perform their current jobs? or
            Is the a gap between the skills of current employees and the skills needed to meet business objectives?

  2.   What are the main causes of some of your employees having skills gaps (See slide 10 for some
       common causes)?

  3.   At which level does your organization face the most skills gaps? In which departments of your
       organization is the skills gap most evident?

  For example, CEOs/ Board/Business owners, Senior Managers, Middle Managers, Skilled Trades, Sales and customer
  services staff, Administrative/clerical staff, IT staff, Other

  4.   What action, if any, is your organization taking to overcome skills gaps?

  Some common approaches include: Increased training activity spend or increased/expanded trainee programs, Increased
  recruitment activity/ spend, More staff appraisals/performance reviews, Implementation of mentoring / buddying scheme,
  More supervision of staff, Recruiting expatriate workers, Changing working practices, subcontracting more work, Automating
  certain tasks, Redefining jobs, Reallocating work within the company, Sending employees for certification, Providing
  employees with cross functional exposure to business, Building up team spirit/motivation, Making staff redundant/Disciplinary
  action, Increasing salaries, Incentives/rewards/recognition




                                                                                                                        | 18
Questions for group discussion
  5.   What barriers prevent your organization providing more training to overcome skills gaps?

  Some common reasons are: Lack of cover for training, Lack of time for training, Lack of funding for training, Lack of suitable
  courses, Unwillingness of staff to undertake training, High staff turnover, etc.

  6.   Do labor market conditions and preferences in Qatar shape the type of training firms provide?
       Is there a bias towards hard skill training in Qatar over general skills training due to employee
       poaching, early labor market exit by women, preferences for public sector employment, and the
       wage premium in the public and semi government sectors etc.?

  7.   In what ways do workforce skills gaps currently impact the performance of your organization?

  Some potential impacts might be: Loss of business or orders to competitors, Lower profits, Inability to meet business
  performance goals, Delay developing new products or services, Difficulties meeting quality standards, Increased operating
  costs, Difficulties introducing new working practices, Increased workload for other staff, Increased outsourcing of work,
  Difficulty meeting customer service objectives, Difficulties introducing technological change, The need to withdraw from
  offering certain products or services altogether, Restricted business development or withdrawal from markets, Loss of quality
  in the service, Loss of efficiency/increased waste, More strain on the management, Increased recruitment costs, More stress
  on employees, Lower staff morale, Losing some high performing employees etc.

  8.   What would be the most effective way to increase cooperation between the business
       community, education and training institutions, and the Qatari government to bridge current
       employee skills gaps?

  9.   What would be the most effective way to increase cooperation between the business
       community, education and training institutions, and the Qatari government to ensure firms are
       able to hire graduates with sufficient skills to avoid remedial training? Are the proposed
       interventions in the NDS enough?

                                                                                                                           | 19
Mind map: Measuring and Resolving Skills Gaps in Qatar                                       Proficiency vs. Business Objectives
                                                                                             • Depends on the level of employee/industry
• Lack of training                                                                           • 2 levels of proficiency: Basic level – should be
• Training needs not known due                                                                 agreed by industry; Industry-specific: should
  to lack of JDs for example                                                                   include more in depth skills in line with employee
• Weak relationship between            Causes                                                  proficiency and business objectives
  education and specific                (Q2, Q6)               National                      • At more senior levels business objectives more
  professions                                                   Survey                         important
• Must raise cultural awareness                                     (Q1)                     • Assess relative to perform their present job
  that each person is
                                                                                                                Remediation
  responsible for themselves
                                                                                                                • Restructuring training dep.
  and skills
                                                                                                                • Increased assessment
• Lack of career counseling and
                                                                                                                • Career cent. to reposition emp.
  role models in high schools
                                                                                                                • Mentoring
• Managers do not know
  themselves the skills needed                                    Skills                    Org.                • Conferences
                                                                                                                • e-learning
  = latency
                                                                 Gaps in                 Actions to             • Certification
• Culturally shaped lack of
  willingness to delegate                                         Qatar                  Overcome          Barriers
• On the job training is not                                                               (Q4,Q5)         • Fear of nationalization
  adequate                                                                                                 • No mechanism or incentive to
• Industry switchers need                 Impacts                                                            transfer expat knowledge
  training or a mentor                                                                                     • No link to KPIs/ comp.
                                            (Q3, Q7)
• Older employees hesitant to                                                              Current Gaps
  training                                                     Bus,                        • IAD exists which is focused on public sector training
                                                             E&T, Gov,                     • Government provides training funds through entities
• Customer service, dealing with work                                                      • Community service
  stress, interpersonal skills                              Cooperation                    • Informal professional network to arrange visits and
• Occur at all levels – entry level fresh grads,                  (Q8, Q9)                   experience sharing
  middle mgmt. to deal with senior and                                                     • Top down approach with MOE, MOL, and universities
  juniors, senior management due to Preventing Future Gaps                                 • Dictionary of titles with skills reference points for
  centralized decision making              • Work experience programs                        employers, schools, trainers etc.
• Reputational risk                        • University must increase link to specific     • Mandatory skills standards – Univ. encourages,
• Departmental and organizational             jobs roles through work experience,            employers ensure, govt. defines
  performance                                 career services center                       • Gov. and com efforts publicized
                                                                                                                                       | 20

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Measuring Skill Gaps in Qatar and the Arab World

  • 1. Measuring Skill Gaps in Qatar and the Arab World About Us Tahseen Consulting is an advisor on strategic and organizational issues facing governments, social sector institutions, and corporations in the Arab World. You can read more about our capabilities at tahseen.ae Observations on the difficulty of scientifically measuring skills ▲ Public Sector gaps in the region with a specific emphasis on Qatar Social Sector Corporate Responsibility CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of Tahseen Consulting is strictly prohibited www.tahseen.ae | 1
  • 2. Popular theories suggests intangibles are becoming a more important driver of modern economic growth in the transition to knowledge-based economies Knowledge-based Through public policy and institutions, Economic governments influence long-run growth Development Financial and Intangible capital other tangible capital Economic Computerized Capital markets Infrastructure Capital equipment Innovative property information (programs Competencies and databases) Brand equity R&D (patents, licenses and Economic growth can be affected by public policies (investments to retain or gain general know-how) and market share and investment mineral exploration and Institutions concerned with in brand names) • International trade and openness Organizational capital Creative property (investments in strategic • Education and training policies planning, adaptation, (innovative/artistic content in commercial copyrights, • Domestic and foreign Investment climate organizational structures and licenses and designs) business processes) • Macroeconomic and competitive policy • Financial markets • Institutional quality of government Firm-specific human capital (employee • Security skills) • The availability of public services and infrastructure Knowledge Components of KBE Source: Corrado, Hulten and Sichel (2006) | 2
  • 3. Knowledge-based economic development emerged as a policy goal in the early 90s due to the regional commonality of several economic, socio-political, and cultural factors Regional Drivers Illustrative Regional Development Challenges 1 • Dependence on foreign technologies • Shortages/difficulty in finding/developing qualified employees • Low capacity to transfer technologies • Capital formation has not led to higher value industry or exports Economic • Low levels of total factor productivity • Suboptimal environment for business, entrepreneurship, and FDI • Volatile oil prices leading to regional booms and busts • Low R&D spending Knowledge- 2 based Economic Development • Youth bulge • Supply of highly educated youth has outpaced job creation Socio-political • Education systems are not well suited to the needs of KBED • Political reform has proceeded at varying rates • Work of international organizations has encouraged KBED 3 • Religious importance of the quest for learning and knowledge Cultural • Brain drain of prominent academics and scientists • Perception the region is lagging behind in development Sources: Al-Ali 1991, Sawhel 2009, Djeflat 2009, Program 2002, Hertog 2010, Program 2003, United Nations Educational 2010, Dhillion and Yousef 2009, Program 2010, Foundation and Program 2009, House 2011, Miller and Holmes 2011 | 3
  • 4. Knowledge-based economic development in the Arab World is closely intertwined with economic and social development issues Emerging Thinking on Knowledge-based Empirically Established Links Between Human Economic Development in the Arab World Capital and Social and Economic Development Closely intertwined with policies that support Several social and economic benefits are attributed to higher levels of human capital:  Economic integration and diversification  Innovation Social Outcomes  Technology development  Entrepreneurship • Higher levels of educational attainment  Job creation/workforce skills development • Increased health  Education and training system reform • Efficiency of consumer choices  Environmental sustainability • Higher levels of savings and charitable giving  Social development • Social cohesion  Healthcare reform • Increased self-reliance and econ. independence  ICT infrastructure development • Reduced Crime Economic Outcomes Significant emphasis on • Growth and competitiveness human capital • Enabling comparative advantage • Increased productivity • Domestic innovation • Speeding technology adoption Sources: Powell and Snellman 2004, Planning 2010, Rischard 2009 | 4
  • 5. Similar to Qatar in the QNV 2030, many Arab countries have embraced knowledge-based economic development while stressing similar human capital development goals Justification for Knowledge-based Specific Human Capital Objectives Identified Economy as a Goal in National Development Plan in National Development Plan Country Improving Access Improving Health, Increasing Female Economic Economic Environmental Social and Quality of Safety, and or Private Sector Increasing Job Creation Integration Diversification Sustainability Development Education Environment Labor Participation Entrepreneurship Algeria Bahrain Egypt Iraq Jordan Kuwait Lebanon Libya Morocco Oman Palestine Qatar Saudi Arabia Sudan Syria Tunisia UAE Explicitly stated as a justification for knowledge-based economic development goals or as a supporting human capital objective Not stated as a justification for knowledge-based economic development goals or as a supporting human capital objective | 5
  • 6. Many of the Arab countries , including Qatar, face workforce skills deficiencies that slow knowledge-based economic development and negatively impact high skill industries 10 (as proxied by the World Bank Knowledge Economy Index Ranking) High Skills Equilibrium United Kingdom Germany 9 How does Ireland Employer Demand for higher, knowledge-intensive skills Estonia • Strong demand for high level skills High Qatar make Czech Republic Spain Hungary Korea, Rep. • Skills formulation institutions and the 8 Lithuania enabling environment work in tandem the transition? Latvia Slovak Republic Poland Croatia Portugal Greece • Knowledge-based economies with Chile Bulgaria lower levels of skills gaps 7 United Arab Emirates Qatar Romania Uruguay Bahrain Malaysia Costa Rica Kuwait 6 Brazil Russia Serbia Turkey • The perception of Arab employers Medium Saudi Arabia Jordan Oman Mexico Africa South may deter entry into knowledge- Belarus based industries which are perceived 5 Colombia Lebanon China to require skills unavailable in the Egypt Tunisia Sri Lanka Philippines national workforce or too costly to Morocco Botswana Azerbaijan build internally 4 Bolivia Vietnam Cape Verde Indonesia Syria Honduras India Guatemala Swaziland 3 Kenya Algeria Senegal Uganda Pakistan Ghana Low Skills Equilibrium Zambia Yemen Tanzania Lesotho Burkina 2 Nepal • Employers face few skill gaps in a Low Faso Mozambique Cambodia Bangladesh Ethiopia Eritrea predominantly low skilled workforce Rwanda Guinea • Little incentive to participate in 1 education and training and raise qualification levels and aspirations 0 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Low Medium High % of firms with sufficient internal skills levels Source:Author’s analysis of World Bank Enterprise Survey | 6
  • 7. Employers, particularly in the GCC, face both “skills shortages” as well as “skills gaps” that limit performance and achievement of business objectives My Research Focus Skills Shortages Skills Gaps Skill Shortage Skills Gap Desired Quantity of Internal Workers Workforce With a Quantity of Current Skill Level Particular Workers Internal Skill With a Workforce Required Particular Skill Level Skill Available • Genuine lack of adequately skilled individuals available • Employers feel that their existing workforce has inadequate in the labor market with the type of skill being sought skill types/levels to meet their business objectives • Employers unable to recruit staff with the skills they • New entrants to the labor market trained and qualified for are looking for at the going rate of pay occupations but still lack a variety of the skills required 7 | 7
  • 8. Skills deficiencies have severely negative impacts on firms in the region Internal firm deficiencies External labor market deficiencies Skills Well Functioning Labor Markets Employers Require Effective Formation Require Allocative Efficiency Firm-level Utilization of Workforce Skills Objective Workforce skills levels meet the expectations of Preparation of individuals with the skills, work experience, employers either in terms of full occupational Description and qualifications in the quantity and quality to meet labor of Objective proficiency or in the ability to meet business market needs objectives with current workforce skills levels Impact on Skills shortages requiring expatriate reliance for Even when employees are hired, many still have skills firm if skills technical/commercial roles such as gaps requiring remediation through measures such as formation Technical Roles Commercial Roles Discipline Engineering Finance • Increased training and trainee programs system is Geology/Geophysics Business Analysis • More staff appraisals / performance reviews weak Process Engineering Contracting & Procurement • Implementation of mentoring / buddying schemes Product/Process Human Resources • More supervision Research Information Technology • Changing working practices and redefining jobs Production Engineering Sales & Marketing • Reallocation of work within the company Production Technology Supply & Distribution • Outsourcing to external providers Project/Facilities Trading • Using government resources / funding Engineering O&G • Incentives/rewards/recognition Reservoir/Petroleum Example • Sending employees for certification Engineering • Providing cross functional exposure to the business Well Engineering Influence on Medium to severe, but recruiting from outside Severe because skills gaps influence many business Qatar is a short-term solution to what is a large- aspects of current operations including operations scale, systemic problem efficiency, service, and profitability | 8
  • 9. The changing demands of knowledge-based economic development create a need for interdependence and collaborative networks for effective skills formation WORK IN PROCESS Education and Training System Business Community • Ensuring Relevancy and Employability • Workforce Investment • Quality Assurance Qualitative and • Workforce Development quantitative • Expanding Access supply-demand match Facilitate regular, on-the-job National Skills training and participation Link Formation System in skills economic for Knowledge- formation development based • Coordination with E&T Development • Aligning system • Investment Optimization Macroeconomic Policy Address policy, informational, or With Skills financial sources of • Lifelong-learning Formation underinvestment • Broad-based, Critical Government Coordination Points Inclusive Skills Formation Government Individuals | 9
  • 10. Yet several failures of the skill formation system can lead to skills gaps Market and Institutional 1 2 3 Failure Induced Skills Gaps Transitional Skills Gaps Structural Skills Gaps A gap caused by structural policy or A temporary gap between the skills of A mismatch between employee skills and government institutional failure due to: current employees and the skills needed to requirements of employers due to: meet business objectives which decreases Poor Macroeconomic Policy as employees gain confidence in their jobs Poor Staff Development and Retainment • Misalignment of education system with or complete training due to: development due to rapid technical and Staff Development organizational change or industrial policy Incomplete Orientation and Integration • Failure to train and develop staff • Lack of experience • Inability of older staff to acquire Education & Training System Misalignment • Recently recruited necessary new knowledge and skills • Lack of funds, bureaucratic management, • Training program only partially completed • Low or no training budget poor remuneration, and low standards • Recent merger/acquisition • Lack of commitment by senior leaders to leading to irrelevant curricula, poor teaching, employee learning and development and an emphasis on abstract rather than Lack of Motivation practical training • Staff lack motivation Staff Retainment • Firms may hire staff requiring more training • High staff turnover in the face of skills shortages • Retrenchments • Lack of specialized institutions to provide appropriate training Evolving Business Objectives • Lack of interaction between firms and specialized training institutions Strategy-skill lag • Changes in company strategy, goals, Insufficient Individual Investment markets or business models • Individuals may not know the future value of • New products and services skills investments • New working practices • Preference for more certain short term • New technology returns to available jobs • Training offering no certification less Changing job requirements attractive as value to other firms is reduced • Inability of workforce to keep up with change • Legislation that raises wages above the • Scope of job increasing market level reduces training investment • When pay and status are not linked to qualifications incentives are reduced Source: (Acemoglu and Pischke 1996; Research 1996; Lall 1999; Ziderman 2003) | 10
  • 11. The GCC countries, in particular, appear to have significant levels of skills gaps Rank Country and Survey Year % of Total Firms Suveyed Which Have a Major or Rank Country and Survey Year % of Total Firms Suveyed Which Have a Major or Observations Very Severe Skills Gap Very Severe Skills Gap 1 Brazil 2009 73.03% 42 Oman 2007 MBRF 33.00% 2 Kuwait 2007 MBRF 68.00% 43 Chile 2006 32.06% 3 4 Egypt 2007 MBRF Chad 2009 66.00% 57.33% 44 45 Uzbekistan 2008 Peru 2006 31.97% 31.33% • Kuwait, Egypt, KSA, UAE 5 6 Belarus 2008 CapeVerde 2009 55.31% 53.85% 46 47 China 2002 Dominican Republic 2005 30.73% 30.67% amongst the top ten 7 Saudi Arabia 2007 MBRF 53.00% 48 Estonia 2009 30.40% 8 UAE 2007 MBRF 51% 49 Tunisia 2007 MBRF 30.00% 9 Kazakhstan 2009 50.18% 50 Malawi 2009 30.00% • Maghreb countries and 51 10 11 Russia 2009 Argentina 2006 48.90% 48.35% 52 Thailand 2004 Egypt 2004 29.96% 29.80% Egypt moved up the 12 13 Morocco 2007 MBRF Romania 2009 47.00% 46.21% 53 54 Kyrgyz Republic 2009 Guatemala 2006 29.36% 29.31% ranking significantly 14 Algeria 2007 MBRF 45.00% 55 Vanuatu 2009 28.91% 15 Mauritius 2009 44.97% 56 Yemen 2010 28.72% 16 Micronesia 2009 44.12% 57 58 Kenya 2003 27.64% • Levant countries and 17 Ukraine 2008 43.48% Slovak Republic 2009 27.64% 18 Lithuania 2009 43.12% 59 Samoa 2009 27.52% Bahrain in the lower 20s 19 Moldova 2009 42.98% 60 Venezuela 2006 27.40% 20 Tonga 2009 42.67% 61 El Salvador 2006 27.27% 21 22 Latvia 2009 Jamaica 2005 41.70% 41.57% 62 63 Georgia 2008 Turkey 2008 27.08% 26.82% • Qatar and Oman in 30s 23 Gabon 2009 41.34% 64 Bolivia 2006 26.26% 24 Congo 2009 40.40% 65 Algeria 2002 25.47% 25 Guyana 2004 40.37% 66 Honduras 2006 25.46% • Though there are some 26 Bahrain 2007 MBRF 40.00% 67 Colombia 2006 25.40% 27 Niger 2009 38.67% 68 Benin 2009 25.33% differences in the data that 28 29 Lebanon 2006 Jordan 2007 MBRF 37.96% 37.00% 69 70 Czech Republic 2009 Laos 2009 25.20% 25.00% are hard to reconcile 30 Syria 2003 36.33% 71 Malaysia 2002 25.00% 31 Paraguay 2006 36.22% 72 Armenia 2009 24.06% 32 BurkinaFaso 2009 35.79% 73 Namibia 2006 23.71% 33 Zambia 2002 35.75% 74 Uruguay 2006 23.51% 34 Cameroon 2009 35.26% 75 Botswana 2006 22.22% 35 36 Qatar 2007 MBRF Tajikistan 2008 35.00% 35.00% 76 77 Mauritania 2006 Croatia 2007 22.03% 21.64% • 35% of private sector 37 Oman 2003 34.63% 78 SriLanka 2004 21.33% employers in Qatar 38 Poland 2009 34.51% 79 Morocco 2004 21.06% 39 Albania 2007 33.88% 80 Mali 2003 20.78% indicate a skills gap 40 Ecuador 2006 33.13% 81 Bosnia and Herzegovina 2009 20.50% 41 Ivory Coast 2009 32.32% 82 Bulgaria 2009 20.14% Data Source: MBRF-PWC Report World bank Enterprise Survey | 11
  • 12. If generalizable to Qatar, graduates are lacking in both hard and soft skills Percentage of HR managers who agreed that newly hired Hard Skills students have appropriate skills Soft Skills University Vocational 29 Graduates 16 Graduates Egypt 26 12 22 10 Jordan 25 16 33 36 Morocco 28 25 51 41 Saudi Arabia 45 38 29 23 Yemen 26 19 Source: e4e Employer Survey | 12
  • 13. If generalizable to Qatar, training by employers is focused primarily on hard skills Percentage of HR managers who indicated their firm provides training Hard Skills in hard vs. soft skills Soft Skills 94 Egypt 45 79 Jordan 32 87 Morocco 42 71 Saudi Arabia 26 93 Yemen 50 Source: e4e Employer Survey | 13
  • 14. However, it is unclear what the normative threshold to which internal skills levels should be compared: Should surveys be measuring skills levels relative to proficiency performing a particular job or relative to achieving macro firm-level goals? Skills deficiencies internal • to the firm How do firms prioritize training needs in an environment with significant hard and soft skills gaps? Do firms train to meet business objectives or for occupational proficiency? Who Skills should pay for general skills training? Formation Effective Firm-level Utilization Objective of Workforce Skills • Is the training preference for hard skills more associated with meeting business objectives? Description Workforce skills levels meet the expectations of of Objective employers either in terms of full occupational • Soft skill training is risky due to proficiency or in the ability to meet business poaching. Is there a bias towards objectives with current workforce skills levels hard skill training due to employee poaching , preferences for public Lack of sector employment, and the wage conceptual premium in the public sector? Evidence of Skills Gaps clarity a Deficiency • Are competency assessments based • Current workforce has inadequate skill types/levels on occupational proficiency and the to meet business objectives assumption of adequate soft skills OR suitable in an environment where • Employers perceive current employees to be less there are large gaps in hard and soft than fully proficient to perform their current jobs skills? | 14
  • 15. The NDS advances several initiatives aimed at existing skills formation weaknesses, but few are aimed at employees disadvantaged by previous skills formation failures Priority Target Satements Initiatives and Key Deliverables and Milestones Target 1: Include work skills in the national • Align the national curriculum with the objectives for creating effective curriculum including implmenting initiatives to Increase awareness participants in the knowledge economy foster student exposure to work environments of skills required in future work Target 2: Operationalize work skills in the • Encourage schools to hold workshops with key employers to learn about environments national curriculum and enhance the their skill requirements and gaps in the skills of new graduates performance of academic and vocational • Career counselors in schools to advise on education and career paths guidance in schools Target 1: Increase the proportion of students • Launch a campaign aimed at increasing enrolment in courses suitable Prepare Qataris for graduating with qualifications needed in the for a knowledge economy employment in the knowledge economy by 65%-75% • Incentivize Qatari enrolment in knowledge economy courses knowledge economy Target 2: Provide diverse post-secondary • Conduct studies on workforce needs and assess the gap between education pathways to meet labor market needs education output and requirements Develop a regulatory • Appoint an oversight body and determine process model Target 1: Define and implement standards tor a framework to align • Determine the scope of the National Qualification Framework National Qualifications framework technical education • Decide on the reference model and structure and vocational • Build on the existing vocational education training initiative in deciding on training with the Target 2: Develop and implement a system of international standards to be adopted by Qatar education sector and occupational standards for relevant professions • Customize occupational standards labor market needs • Appoint an oversight body and determine organizations and processes Target 1: Develop and implement a plan Align technical and • Determine and prioritize needs for the different types of TEVT aligning TEVT programs with the needs of the vocational training • Develop an implementation plan labor market programs and outputs with the Target 2: Develop and industry partnership • Conduct a benchmarking study on best practices related to partnership needs of society and model accepted by all stakeholders • Determine key areas and projects for TEVT partnerships with industry the labor market Target 3: Establish a first partnership • Integrate partnership into the regulatory framework Increase prominence Target 2: Incorporate TEVT options into career • Develop a TEVT career counseling system, including the necessary of TEVT programs counseling legislative and regulatory systems K-12 Higher Education Technical and Vocational Education | 15
  • 16. International experience suggests several options for intervention in training markets Policy Options Government Government Reason for Intervention Subsidy of Training Provision of Training Complementary Policies Externalities None Property rights (employer Levy-grant schemes fear of poaching) Market imperfections Deal with sources of (economic and social imperfections if policy distortion) politically possible Inadequate Firm-based Build firm training training capacity; levy-grant schemes Weak private training Build up private provision training capacity Reduce subsidies to Create equal opportunity trainees' peers, selective scholarships Targeted training Disadvantaged groups subsidies; employment creation; Source: Ziderman (2003) income redistribution | 16
  • 17. There are several changes which appear necessary to improve the measurement and response to skills gaps; Here are a few thoughts … • There are potentially major flaws in current measurement approaches that lead to several sources of bias and necessitate a 360 degree approach – HR, employee, direct line managers, CxOs • To more effectively measure technical skills gaps, there needs to be standardization of occupational skills questions to go beyond identifying soft skills as a source of skills gaps • There is a need to more effectively link particular skills with the achievement of firm objectives rather than focus on occupational proficiency exclusively; This allows us to relate particular skill gaps to achieving both business and national economic development objectives  Skills gaps are generally resolved through training yet the criticality of a particular skills gap to achieving business objectives is usually not measured. This might mean training programs to resolve skills gaps are misguided in that they focus on skills which may not affect the macro level business objectives of the firm directly • There is a need to pinpoint the source of skills gaps to suggest and determine an appropriate response; It is not always the education system at fault and potentially there are intervening labor market, organizational behavior, and socio-cultural issues at play • There is a need for more rigorous academic work on the subject – single, direct question consulting surveys get headlines but don’t solve the problem • Supply-side interventions in the education and training system are unable to backfill previous skills formation system failures which impact firms in Qatar now. What do we do once we identify skills gaps? | 17
  • 18. Questions for group discussion 1. Assuming there was a national survey of skills gaps in Qatar, what would be the most appropriate threshold against which to assess current workforce skills levels? Should we be measuring gaps relative to a firm’s workforce to perform their present job or relative to current workforce skills sufficiency to meeting business objectives? Should we be asking:  How many of your current employees are fully proficient to perform their current jobs? or  Is the a gap between the skills of current employees and the skills needed to meet business objectives? 2. What are the main causes of some of your employees having skills gaps (See slide 10 for some common causes)? 3. At which level does your organization face the most skills gaps? In which departments of your organization is the skills gap most evident? For example, CEOs/ Board/Business owners, Senior Managers, Middle Managers, Skilled Trades, Sales and customer services staff, Administrative/clerical staff, IT staff, Other 4. What action, if any, is your organization taking to overcome skills gaps? Some common approaches include: Increased training activity spend or increased/expanded trainee programs, Increased recruitment activity/ spend, More staff appraisals/performance reviews, Implementation of mentoring / buddying scheme, More supervision of staff, Recruiting expatriate workers, Changing working practices, subcontracting more work, Automating certain tasks, Redefining jobs, Reallocating work within the company, Sending employees for certification, Providing employees with cross functional exposure to business, Building up team spirit/motivation, Making staff redundant/Disciplinary action, Increasing salaries, Incentives/rewards/recognition | 18
  • 19. Questions for group discussion 5. What barriers prevent your organization providing more training to overcome skills gaps? Some common reasons are: Lack of cover for training, Lack of time for training, Lack of funding for training, Lack of suitable courses, Unwillingness of staff to undertake training, High staff turnover, etc. 6. Do labor market conditions and preferences in Qatar shape the type of training firms provide? Is there a bias towards hard skill training in Qatar over general skills training due to employee poaching, early labor market exit by women, preferences for public sector employment, and the wage premium in the public and semi government sectors etc.? 7. In what ways do workforce skills gaps currently impact the performance of your organization? Some potential impacts might be: Loss of business or orders to competitors, Lower profits, Inability to meet business performance goals, Delay developing new products or services, Difficulties meeting quality standards, Increased operating costs, Difficulties introducing new working practices, Increased workload for other staff, Increased outsourcing of work, Difficulty meeting customer service objectives, Difficulties introducing technological change, The need to withdraw from offering certain products or services altogether, Restricted business development or withdrawal from markets, Loss of quality in the service, Loss of efficiency/increased waste, More strain on the management, Increased recruitment costs, More stress on employees, Lower staff morale, Losing some high performing employees etc. 8. What would be the most effective way to increase cooperation between the business community, education and training institutions, and the Qatari government to bridge current employee skills gaps? 9. What would be the most effective way to increase cooperation between the business community, education and training institutions, and the Qatari government to ensure firms are able to hire graduates with sufficient skills to avoid remedial training? Are the proposed interventions in the NDS enough? | 19
  • 20. Mind map: Measuring and Resolving Skills Gaps in Qatar Proficiency vs. Business Objectives • Depends on the level of employee/industry • Lack of training • 2 levels of proficiency: Basic level – should be • Training needs not known due agreed by industry; Industry-specific: should to lack of JDs for example include more in depth skills in line with employee • Weak relationship between Causes proficiency and business objectives education and specific (Q2, Q6) National • At more senior levels business objectives more professions Survey important • Must raise cultural awareness (Q1) • Assess relative to perform their present job that each person is Remediation responsible for themselves • Restructuring training dep. and skills • Increased assessment • Lack of career counseling and • Career cent. to reposition emp. role models in high schools • Mentoring • Managers do not know themselves the skills needed Skills Org. • Conferences • e-learning = latency Gaps in Actions to • Certification • Culturally shaped lack of willingness to delegate Qatar Overcome Barriers • On the job training is not (Q4,Q5) • Fear of nationalization adequate • No mechanism or incentive to • Industry switchers need Impacts transfer expat knowledge training or a mentor • No link to KPIs/ comp. (Q3, Q7) • Older employees hesitant to Current Gaps training Bus, • IAD exists which is focused on public sector training E&T, Gov, • Government provides training funds through entities • Customer service, dealing with work • Community service stress, interpersonal skills Cooperation • Informal professional network to arrange visits and • Occur at all levels – entry level fresh grads, (Q8, Q9) experience sharing middle mgmt. to deal with senior and • Top down approach with MOE, MOL, and universities juniors, senior management due to Preventing Future Gaps • Dictionary of titles with skills reference points for centralized decision making • Work experience programs employers, schools, trainers etc. • Reputational risk • University must increase link to specific • Mandatory skills standards – Univ. encourages, • Departmental and organizational jobs roles through work experience, employers ensure, govt. defines performance career services center • Gov. and com efforts publicized | 20