Kingdom of Bahrain Labour Fund Strategic Plan

Transcription

1 2007 Kingdom of Bahrain Labour Fund Strategic Plan

2 1. Situation & Aspiration 2. Labour Market Behaviour 3. Strategic Intent 4. Proposed Initiatives

3 1. Situation & Aspiration 2. Labour Market Behaviour 3. Strategic Intent 4. Proposed Initiatives - Quality of Life Index - Measuring our success

4 Low Quality of Life Index High The quality of life (the living standards) in Bahrain has scored moderate in comparison to similar economies. Accordingly, the Labour Fund s key aspiration is to elevate Bahrainis standards of living. Targeted Position Ireland Currently, Bahrain s Quality of Life Index falls within the lowest quartile when compared to similar economies. Kuwait Cyprus Bahrai n Qatar US A Therefore, the target is to enhance living standards beyond its current standing and to be among the best in the world. UA E Low GDP US$ (PPP) High Source: Economic Intelligence Unit Quality of Life Index

5 Job Opportunities To raise Bahrainis standard of living, it is important that value added jobs are being occupied by Bahraini Human Capital Executive Management Raising Bahrainis standard of living would require: Middle Management Improving the skills set of Bahraini human capital Position Bahrainis in higher level jobs Supervisory Level Subordinate Level Average Wages (BD per Month) 5

6 1. Situation & Aspiration 2. Labour Market Behaviour 3. Strategic Intent 4. Proposed Initiatives - Labour Market Driving Forces -Labour Market Policies -Talent Pool -Market/Business Performance

7 Understanding the challenge of the labour market driving forces is the key to derive the Labour Fund s strategic plan. Value Added Jobs In order to comprehend the labour market dynamics and challenges, a thorough assessment and analysis must be considered in: 1- Labour Market Policies 2- Talent Pool 3- Market conditions & performance Labour Market Policies 7

8 Labour Market Driving Forces 1 Labour Market Policies 2 Talent Pool 3 Market/Business Performance

9 Improving the labour market policies would require setting skill standards and enforcement mechanisms. Symptoms Conditions Strategic Thrust Current market behaviour indicates lack of: - Absence of formalised skill standards - Recruitment process not linked to competencies - Improper implementation of Labour Law Insufficient enforcement and standardisation within the labour system Improve Labour Market Policies Defined skill standards Deficiencies in labour law implementation and enforcement - Absence of enforcement Source: 1 st Consultative Labour Fund Strategy Forum (December 2006); Labour Market Survey LF (2006) 9

10 Labour Market Driving Forces 1 Labour Market Policies 2 Talent Pool 3 Market/Business Performance

11 Enhancing current low Bahraini penetration in vital sectors through upscaling talent, defining standards, and would result in positioning Bahrainis in valueadded jobs. Symptoms Conditions Strategic Thrust - Limited career progression - Low wages / benefits - Low work ethics / discipline - Absence of formalised skill standards - Absence of career development / planning culture Skill Gap Deficiencies Optimise Talent Pool Talent pool assessment indicates Bahrainis are performing low due to low skills and low work ethics and a lack of other factors such as: Growth planning Quality Defined skill standards have a negative impact as well. - Talent pool low skills - Training infrastructure deficiencies Source: 1 st Consultative Labour Fund Strategy Forum (December 2006); Labour Market Survey LF (2006) 11

12 Providing career counselling, awareness, and channelling are of significance in order to resolve career path and placement challenges. Symptoms Conditions Strategic Thrust Bahrain faces structural labour market issues due to lack of: Job channelling Career counselling - Ineffective employment channelling - Long periods of job search Limited Career Awareness Optimise Talent Pool Resulting in ambiguities in employment opportunities for Bahrainis in higher level valueadded jobs. - Absence of career guidance Source: 1 st Consultative Labour Fund Strategy Forum (December 2006); Labour Market Survey LF (2006) 12

13 An intensive awareness campaign to correct cultural issues is of essence in order to increase penetration in low attractive jobs. Symptoms Conditions Strategic Thrust Low job penetration is due to: Cultural resistance Gender disparity - Gender Disparity Low Bahraini Penetration Optimise Talent Pool Is resulting in missing opportunities to place Bahrainis in value-added jobs. - Cultural resistance Source: 1 st Consultative Labour Fund Strategy Forum (December 2006); Labour Market Survey LF (2006) 13

14 Labour Market Driving Forces 1 Labour Market Policies 2 Talent Pool 3 Market/Business Performance

15 Supporting the private sector to overcome growth challenges will help in fuelling business and employment opportunities. Symptoms Conditions Strategic Thrust - Slow privatisation / underutilisation of infrastructure - Slow development of sectors - Under-utilisation of foreign trade agreements - Limited promotion of sectors - Limited marketing efforts - Unclear investment guidance -Undefined direction for sector development Stagnating Business / Employment Opportunities External Issues Enable Enterprise Growth Enterprise growth is hindered by challenges related to: Limited business growth and opportunities Government promotional and investment strategies Limited market access - Limited market access - Minimal cross-sector linkages - Limited access to financing Source: 1 st Consultative Labour Fund Strategy Forum (December 2006); Labour Market Survey LF (2006) 15

16 Resolving corporate structural bottlenecks would ensure sustainable and robust business environment which would result in supplying solid value added job opportunities. Symptoms Conditions Strategic Thrust - Low technology infusion - Low competitiveness - Absence of R&D - Limited e-commerce - Deficiency in service quality - Low corporate leadership - Absence of market leader - Few large players Low Business Performance Internal Issues Enable Enterprise Growth Corporations in Bahrain are faced by structural challenges related to performance excellences key issues include; Leadership Strategic direction customer focus Technology infusion Which are resulting in low competitiveness. Source: 1 st Consultative Labour Fund Strategy Forum (December 2006); Labour Market Survey LF (2006) 16

17 An assessment of sectors based on GDP contribution, labour intensity, wages, acceptance, and sustainability has revealed that transport & communication, manufacturing, trade GDP Labour Wage Acceptance Finance GDP Labour Wage Acceptance Transport & Communication Selected sectors have shown: High GDP contribution Labour intensity Average wages Acceptance; and Sustainability Sustainability Manufacturing Sustainability Trade However, the finance sector has not been considered due to its maturity and continued sustainable growth. GDP GDP Labour Labour Wage Wage Acceptance Acceptance Sustainability Sustainability Source: Labour Fund Analysis

18 social & personal services Social & Personal Services GDP GDP Labour Labour Wage Wage Acceptance Acceptance Sustainability Sustainability Real Estate & Business Electricity & Water Construction Only health care of the social and personal services has been selected for its potential to growth due to government intentions to privatize the sector. Real estate, electricity & water, and construction have not been selected due to their low performance. GDP Labour Wage Acceptance Sustainability GDP Labour Wage Acceptance Sustainability Source: Labour Fund Analysis

19 as well as tourism have the greatest potential for growth. GDP Labour Wage Acceptance Sustainability Tourism GDP Labour Wage Acceptance Sustainability Agriculture & Fishing Tourism has been selected due to its high potential for growth regardless of its low GDP contribution. While on the other hand, the agriculture and fishing sector has been eliminated to its insignificant GDP contribution and limited potential for growth. Source: Labour Fund Analysis

20 Number of planned projects Bahrain has been experiencing an economic boost mainly fuelled by major projects in key economic sectors. As a result, the Labour Fund should focus on developing talent and establishing strategic links with the upcoming projects. Planned Projects up to the year Transport & Communication Trade Social & Personal Services Tourism Manufacturing By 2011, a total of 108 projects, with an estimated value of BD 9.2 billion* (US$ 24.4 billion) are expected to be launched in Bahrain. These projects are expected to create approximately 44,000 new jobs over the next 5 years Investment ($ Million) * MEED estimates total investment size at BD 10.7 billion (US$ 28.5 billion) Source: Labour Fund Analysis, Zawya and MEED (2006) 20

21 Large-scaled firms are potential employment channels for value-added jobs, hence, enlarging smaller firms is a key strategic direction for the Labour Fund The wage analysis indicated that Bahrainis tend to earn higher wages as the size of the firm increases. Size of Company (Number of Employees) Average Wages (BD per month ) Source: Labour Fund Analysis, General Organisation for Social Insurance (2005) 21

22 The Labour Fund should ensure that employment pushes are being driven towards value added and financially rewarding jobs. High Wage Occupation Categories (Targeted High-end Wages in BD) Maintenance Plant Operations Inventory Control Engineers Production Procurement Technician Surgeons GPs Nutritionists Physical Therapists Nursing Pharmacists Recreation Facilities Management Manufacturing Health Tourism & Lifestyle Pilots Aviation Engineers Air Hosts Telecom Engineers Systems Administrator Software & Network Engineers Data Managers Operators Retail Operations Logistics Management Transport Telecoms Trade Value-added jobs have been selected on the basis of the highest financially rewarding job categories in the selected sectors. Source: Labour Fund Analysis, General Organisation for Social Insurance (2005) 22

23 The Labour Fund would also focus on developing the most rewarding and demanded occupations across sectors Executive Management Occupation Clusters Human Resource Management Engineering Finance Types of Occupations Distribution & Customer Support In addition to sector specific occupations, the Labour Fund would also focus on crosssectoral occupations due to: High demand Rewarding careers Project Supervisory Program Manager Administration Recruitment Performance Management Training Staff Development Electric & Electronic Engineering Maintenance Engineering Mechanical Engineering Civil Engineering Network & Software Engineering Process Engineering Financial Controlling Accountancy Internal Auditing CRM Communications Sales Product Marketing Branding Source: Labour Fund Analysis, General Organisation for Social Insurance (2005) 23

24 1. Situation & Aspiration 2. Labour Market Behaviour 3. Strategic Intent 4. Proposed Initiatives - Problem Definition & Ethos - Guiding Principals

25 PROBLEM DEFINITION & ETHOS PROBLEM DEFINITION STATEMENT Stagnating wages are fuelling the expansion of the lower class and diminishing standards of living due to low skill development, low business performance, and poor policy enforcement and standardisation LABOUR FUND ETHOS The Labour Fund aspires to improve living standards for Bahrainis through three key pillars: optimising talent, enabling enterprise growth, and improving labour market policies

26 GUIDING PRINCIPALS VISION A Distinguished Career for Prosperous Living To be an enabler and driver in offering rewarding employment opportunities to attain prosperous living for Bahrainis MISSION We will work towards developing talented Bahraini competencies, enabling enterprise growth, and improving policies and standards This will be achieved through investing in human capital, supporting growth and development of business activities, and collaborating with key policy and decision makers

27 OBJECTIVES & STRATEGIES OBJECTIVES Optimising talent Enabling enterprise growth Improving labour market policies STRATEGIES Capitalise & develop value-added Bahraini talent & skills in rewarding careers Support, develop & attract new industries Enhance & leverage existing industries

28 1. Situation & Aspiration 2. Labour Market Behaviour 3. Strategic Intent 4. Proposed Initiatives - Initiatives

29 Improving, standardising and enforcing labour market policies would assist in resolving the existing challenges Strategic Thrust Objectives Initiatives Two initiatives were developed to assist in improving labour market policies: - Systems Standardization National Skills Standardization Program National skills standardisation program; and Employment standards index Improve Labour Market Policies - Policy Enforcement and Utilization - Information Preparedness Employment Standards Index 29

30 In order to resolve the challenges, the talent pool can be optimised by tackling skill gaps, career awareness and low Bahraini penetration Strategic Thrust Objectives Talent Pool Optimization Initiatives - International Apprenticeship Program - Work Ethics Training & Awareness In order to meet the objectives required to improve & develop the talent pool, the Labour Fund has identified a number of initiatives that need to be successfully completed: Talent Pool Skill Standards Enforcement - Human Capital Program Development - Talent Resource Utilization - Knowledge Enforcement -Talent Management Training - Specialised Training for Skill Gaps -Training for Career Progression - Career Market Acceptance & Awareness Campaign International apprenticeship program Work ethics training & awareness Talent management training Specialised training for skill gaps Training for career progression Career market acceptance & awareness campaign 30

31 In order to resolve the challenges, enterprise growth can be nurtured by tackling the lack of business and employment opportunities Strategic Thrust Objectives Market/Resource Optimization Initiatives - Diversifying Businesses The following initiatives have been identified to over come the issue of stagnating business and employment opportunities: Enterprise External Issues Sector Profiling Venture Proliferation - Attracting Investment & Sourcing Talent - B2B e-marketplace -Venture Capital Investment Diversifying Businesses operating in Bahrain Attracting Investment in various sectors Developing local talent Improving services provided to businesses operating in Bahrain Setting up a venture capital fund to promote start up businesses or assist existing businesses to expand and mature 31

32 In order to resolve the challenges, enterprise growth can be nurtured by tackling the lack of business and employment opportunities Strategic Thrust Objectives Initiatives The following initiatives have been identified to over come internal issues facing enterprises: Enterprise Internal Issues Enterprise Competitiveness Enterprise Management - Corporate Performance Excellence (QualityCorp) - Enterprise Growth Management Program Improve business competitiveness Improve the performance of companies and generate extra revenue that can be used for training of employees Allow companies to develop and mature 32

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