Shaping the future of Human Resources

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Zawya’s TECHNOLOGY gives Shaping the future of Human Resources by Dr Ahmad Khamis, all the importance that is due to it in the GCC region.

The above image is for illustration and is of Entrepreneur.

The presence of rich data resources has enabled businesses to segment and personalise their products and services, which has provided an opportunity for these companies to rapidly expand into new spaces of innovation. All these adjustments have had a profound impact on the structure and functioning of the workplace. As a result, this has created a need for organisations to rethink how they hire, engage, develop, reward, and lead their workforce  

OPINION

Technology is changing the way we live and work, stirring businesses into adapting effortlessly. Every business, regardless of industry, now has the need and potential to evolve digitally and consequently, globally.

The presence of rich data resources has enabled businesses to segment and personalise their products and services, which has provided an opportunity for these companies to rapidly expand into new spaces of innovation. All these adjustments have had a profound impact on the structure and functioning of the workplace. As a result, this has created a need for organisations to rethink how they hire, engage, develop, reward, and lead their workforce.

From “for whom” to “with whom”

High performing organisations have begun to operate as empowered networks, coordinated through culture, information systems and talent mobility. This requires companies to redesign the organisation itself with new operational models to be implemented at different levels. The fast-paced business activities demand that firms are not encumbered by legacy practices, traditional systems, and behaviors that consume resources such as time and money but do not deliver the desired results in return. This has led to the popular question; “for whom do you work?” to be replaced by “with whom do you work?”

HR Management was primarily designed as a compliance function in an organisation, with a focus on managing talent, processes, and transactions. However, constantly changing business and organisational structures require a flexible, data-driven, and highly skilled human resource system that can attract, retain, and develop talents. HR is transforming into an innovative consultancy with a broader scope and responsibility to design, formulate strategies, and enhance the entire employee and employer experience.

Transforming a business environment requires a new HR system that is more tactical and strategic as opposed to administrative. A strategic HR team has the potential to build a team of employees most suited to the company’s requirements. Moreover, digitising functions will enable senior management to focus on functions such as increasing the market share of their business, growing their customer base, driving product innovation, increasing sales, and helping the company be more responsive to the market, among other operations.

Shifting to a company-wide interrelated function

An organisation’s HR has evolved from a silo away from core business plans and activities to a department that cofunctions with management, to further understand business needs, and most importantly, to enable and empower their key resource: employees. With the rise of disruptive technologies such as block chain, AI, machine learning VR/AR, and people analytics, the suitability of HR practices has greatly expanded. Every HR department owns a variety of data, including payroll, social media, employee engagement surveys, leadership assessments and developments, performance reviews, recruiting, and exit interviews, which if conducted correctly, can guarantee key insights for future business decisions.

The two shifts taking place that play a significant role in shaping this industry’s future are the options on how companies support traditional HR practices, and talent retention in an environment where employees are capable and eager to transfer to new workplaces. The GCC region has a stable regulatory framework, excellent infrastructure, and a diverse range of talents and capabilities among its residents and expats. Furthermore, the region’s present interest in harnessing technology and innovation is projected to assist GCC enterprises’ human resources departments. It is estimated by the World Economic Forum that 41% of all work activities in Kuwait are susceptible to automation, 46% in Bahrain and Saudi Arabia, 47% in the UAE, and 52%in Qatar. As compared to 2015, 21% of core skills required across all occupations was different in 2020 in the GCC.

Professionals that can combine extensive industry expertise with cutting-edge analytical tools to quickly modify corporate strategies will be in high demand. Crowdfunding sites, remote and virtual work, and other online platforms are gaining popularity. This necessitates HR departments in GCC organisations managing a distributed and virtual workforce, integrating freelancers, and mitigating the constraints of online work. Furthermore, it necessitates businesses to foster a culture of continuous learning and knowledge of the changing infrastructure among their staff.

Organisations can utilise people analytics and predictive talent modelling to identify pain points and prioritise future analytics investments. Data analytics can also help businesses correctly identify employees who are on the verge of leaving and persuade them to stay with more informed efforts. This not only increases customer satisfaction but also lowers costs.

Rebranding human resources

Several significant innovations are having an impact on today’s HR functions. Companies choose solutions that allow for ongoing performance monitoring, obviating the need for formal quarterly or half-yearly staff reviews. The process will become increasingly automated and streamlined as firms adopt a single data model to enable real-time KPIs to measure and analyse performance. Firms demand real-time management, and HR must respond by leveraging analytics and data in creative ways to improve staff management.

The majority of today’s workforce are incredibly tech-savvy and want a consistent and distinctive experience on a daily basis. The workforce will increasingly include millennials who expect cutting-edge technology to support them in their employment, necessitating the organisation’s ongoing invention of new ways to engage the workforce.

As the power of technology grows, technology needs to become a trusted partner at work, augmenting an individual’s role in smart ways so that the employees can focus on those aspects of the job that require human touch and skills. Artificial intelligence enables large-scale efficiencies and serves as a foundation for many of the new technologies that businesses are adopting.

In many firms, HR functions have been rebranded, with phrases such as “employee experience”, “people management”, and “human capital” to signal a shift in the brand. Organisations are still grappling with how digitisation will fundamentally alter human work and in what ways humans and the emerging machine co-workers will work together. This is likely to create new value for customers and the firm. It is high time to reimagine work across the enterprise and HR with digitisation and automation.

Dr Ahmad Khamis is the co-founder & CEO at BLOOVO, a technology company founded in 2014 specializing in the provision of AI-powered recruitment solutions. Ahmad is a seasoned private equity and venture capital professional boasting over 17 years of multi-national experience. His career has seen him in senior roles at several blue-chip companies in the MENA region and premier consultancies. He holds a bachelor’s degree in Economics from University College London (UCL), Diploma in Accounting and Finance from the London School of Economics (LSE), Masters in Finance from the University of Leicester and a Doctorate in Financial Economics from Manchester.

Labour Market Skills Gap In The MENA Region And Sub-Saharan Africa

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INJAZ Al-Arab And JA Africa partner with Oliver Wyman to explore Labour Market Skills Gap In The MENA Region and Sub-Saharan Africa

INJAZ Al-Arab and JA Africa have partnered with global consulting firm Oliver Wyman to explore labour market skills gap in the MENA Region and Sub-Saharan Africa in an effort to tackle the unemployment challenge.

The “Youth Employment Perception” survey was conducted in response to the realization that these incremental unemployment figures cannot solely be attributed to lack of opportunities in the formal labor market.

The study took place across thirteen countries, including Egypt, Saudi Arabia, Kuwait, Lebanon, Morocco, Qatar and the UAE in the MENA region, along with six countries in Sub-Saharan Africa i(Eswatini, Gabon, Nigeria, South Africa, Uganda and Zimbabwe).

The study looked at markets across four key areas to provide a dual-perspective from both youth and employers which included sectoral opportunities and challenges, qualifying the skills gap, bridging the gap, and the impact of COVID-19 on the labour market. Interestingly around 60% of youth are unable to secure employment due to lack of relevant work experience, while 70% believe they need updated education and upskilling to find employment, showing just how much a problem the skills gap currently is.

The study surveyed more than 350 employers across the Middle East and Sub-Saharan Africa, and over 2,000 youths across both regions. The employer respondents were selected from various industries to get a broad view, including education, public sector and nonprofit organizations, financial services, manufacturing, engineering, and professional services. The insights from the study will be used to influence the private sector and public policy in addressing these challenges.

AkefAqrabawi, President &CEO of INJAZ Al-Arab, said: “In keeping with our commitment to inspire and prepare a generation of Arab youth to become the leaders of tomorrow, we were pleased to collaborate with Oliver Wyman on a project that has the potential to support the MENA region and Sub-Saharan Africain tackling the unemployment challenge. The survey sheds awareness on the disparity between the skills that youth are currently being equipped with, and the requirements requested by today’s employers. We will continue our work at INJAZ-Al Arab by leveraging the insights garnered from this study to provide the necessary programs and mentorship opportunities to students to close this gap.”

Continuing to discuss the power of the partnership, Pierre Romagny, Partner at Oliver Wyman, said: “We were pleased to partner once again with INJAZ Al-Arab and JA Africa on such a pivotal project to deepen our common understanding of the skills gaps and youth-employer disconnects on the labor market. These insights are critical to point the private and public sectors alike in the right direction to start addressing these challenges. We are proud to have collaborated withINJAZ Al-Arab and JA Africa on this study: 13 program facilitators and 18 friends of the work-readiness programs (employers) across MENA and SSA have provided valuable insights on challenges and opportunities in their market. We look forward to leveraging this report to create awareness with employers and drive opportunities for youth across markets.”

JA Africa’s CEO, Simi Nwogugu, said,”Parts of Sub-Saharan Africa has some of the highest rates of youth unemployment in the world and the COVID-19 pandemic has exacerbated the situation, making it increasingly important that we develop solutions quickly as the region also has the largest and fastest growing youth population in the world. We are grateful for this partnership with Oliver Wyman which will inform the work we do at JA Africa over the next few years to equip youth with requisite skills for productive employment and entrepreneurship.” 

For further details on the survey findings and to download the report, visit https://owy.mn/3xS7IQP

Protecting migrant workers in the Gulf

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An Organisation for Economic Co-operation and Development (OECD) article advises the world about Protecting migrant workers in the Gulf: don’t build back better over a poor foundation

By Vani Saraswathi, Editor-at-Large and Director of Projects, Migrant-Rights.Org

The Gulf Co-operation Council (GCC) states need to completely revamp past policies, and not merely attempt to bridge gaps or provide a salve to deep wounds.

As of February 2020, millions of migrants –– primarily from South and Southeast Asia and increasingly from East African countries –– were holding up Gulf economies, working in sectors and for wages unappealing to the more affluent citizens. In countries with per capita GDP of US$62,000 or more, minimum wages ranged as low as US$200 per month.

Men were packed into portacabins and decrepit buildings, six to a room if lucky, hidden behind screens of dust and grime, away from the smart buildings they built and shiny glasses they cleaned. The women were trapped 24/7 in homes that are their workplaces, every movement monitored. It is accepted and normalised without question that these men and women will leave behind their families in the hopes of building a better future for themselves. That they may live all their productive life in a strange country, excluded from social security benefits and denied all rights of belonging, is seen as a small price to pay for the supposed fiscal benefits. The fact that the price is too steep is rarely discussed.

“Why did able-bodied, productive individuals struggle for food and shelter in some of the richest countries in the world?” #DevMattersTweet

Then came March, and a worldwide upheaval as the COVID-19 pandemic struck nations indiscriminately. The official response across the board ranged from well-meaning but knee-jerk, to discriminatory and short-sighted. Some of the strictest lockdowns were implemented in the most congested areas of Gulf cities, where migrants live. However, their labour was considered essential, as the process of nation-building could not be paused. Attempts to decongest were hopeful at best, but the majority continued to live in cramped quarters, were bussed into construction sites, and remained vulnerable to this new infection, as they had been to other infections and health perils.

The women, hundreds of thousands employed as domestic workers, have been invisible at the best of times because their ability to leave home and enjoy an off day or free time has always been at the discretion of their employers. The pandemic guidelines prevented even this thin leeway, with some countries explicitly prohibiting domestic workers from socialising, even when their employers were allowed to. Domestic workers, like a lot of other poorly-paid and badly-treated workers, were considered essential workers. With entire families working and studying from home, their workload increased exponentially. They were also exposed to strong chemical cleaning agents without proper protective gear. While their services were essential, even critical, the individual was considered dispensable and replaceable.

Force majeure rules allowed companies to reduce pay, terminate workers, or put them on leave without pay. Measures were introduced to ensure business continuity even if these measures infringed on workers’ rights. The lack of civil society and trade unions and inability to negotiate collectively –– all disempowering conditions that preceded the pandemic –– meant workers’ voices and representation were limited and muted. No mechanisms were established to challenge the unfair implementation of the measures. Access to justice was riddled with even more problems than before, as wage theft and other labour abuses from the pre-COVID era were yet to be resolved. This post is not even attempting to explore the vulnerabilities and exclusion of undocumented workers –– many of whom are forced into irregularity by the sponsorship or Kafala system.

“When a population has been dehumanised and othered for so long –– as being temporary, their labour merely transactional –– a pandemic will not magically correct decades of poor policies.” #DevMattersTweet

In the plethora of webinars that consumed the early months of the pandemic, human rights advocates and activists repeatedly spoke of the lessons being learnt, the new normal that awaited us at the end of the dark tunnel, with ‘building back better’ punctuating every discourse. What they failed to recognise is that when a population has been dehumanised and othered for so long –– as being temporary, their labour merely transactional –– a pandemic will not magically correct decades of poor policies.

In fact, we saw the opposite, with migrant workers being blamed for spreading infections, because of their living conditions over which they had no control over. Ten months into the pandemic, it is almost back to business as usual, with malls, offices, schools and even tourism, opening up in stages. Vaccination drives have begun, with a promise to include migrants in all of the Gulf Co-operation Council countries. But the most marginalised are still housed in deplorable conditions, their temporariness being reinforced. And the first sector that re-opened for recruitment was domestic work bringing in more women from impoverished countries reeling from the impact of the pandemic.  

If there is one takeaway for human rights advocates it is that a socio-economic environment devastated by the pandemic is not fertile ground for righteous policies. If anything, origin and destination countries may go lax on due diligence over corporations in the name of business continuity and impose tighter controls over migrants under the pretext of protection.

“The last year has seen an increase in wage theft, and there is an urgent need for transnational mechanisms to deal with this.”#DevMattersTweet

There are key questions we need to ask ourselves and the governments:

  • Why did able-bodied, productive individuals struggle for food and shelter in some of the richest countries in the world? What combination of policies and prejudices leads to this situation?
  • With so little public investment made in social welfare, the dependence on live-in domestic workers is only likely to increase. How do we ensure recognition of domestic work as work, and domestic workers as workers, formalising their status in the labour market?
  • How do we then break the monopoly of live-in domestic work that is inherently exploitative?
  • The ghettoisation of migrant labour is both the root cause and the result of discrimination. In many Gulf Co-operation Council states, migrants constitute the majority of the population and their needs are deliberately neglected in urban planning.
  • The last year has seen an increase in wage theft, and there is an urgent need for transnational mechanisms to deal with this.  

In the coming years, climate change, population imbalances and economic distress will increase migrants’ vulnerabilities, and solutions cannot be rooted in the current environment of inequity and discrimination.

Read more OECD’s articles :

Qatar firms’ failure to pay

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Qatar firms’ failure to pay leaves migrant workers destitute – report that details how ‘Despite government measures, thousands left struggling during Covid outbreak as companies withhold salaries and benefits, research shows’

by Pete Pattisson

Supported by

26 Nov 2020

Companies in Qatar have failed to pay “hundreds of millions of dollars in salaries and other benefits to low-wage workers since the coronavirus outbreak, according to new research by the human rights group Equidem.

Construction workers at Al Janoub stadium during a media tour in Doha, Qatar. The stadium is the second among eight stadiums being built for the Fifa World Cup 2022 in Qatar. Photograph: Ali Haider/EPA

In its report, Equidem describes how thousands of workers have been dismissed without notice, put on reduced wages or unpaid leave, denied outstanding salary and end of service payments, or forced to pay for their own flights home.

The report’s findings appear to amount to “wage theft” on an unprecedented scale, leaving “worker after worker” destitute, short of food and unable to send money home during the pandemic, in one of the richest countries in the world.Advertisement

“I came here to work for my family, not to be a beggar living on my own,” said a cleaner from Bangladesh, who said he had not received his salary for four months.

In separate research, the Business and Human Rights Resource Centre found that unpaid or delayed wages were cited by workers in 87% of cases of alleged labour abuse affecting almost 12,000 workers since 2016.

Around 2 million migrant workers – mostly from south Asia – work in Qatar, many on construction projects related to the 2022 World Cup.

Equidem praises some measures put in place by the Qatar government during the coronavirus pandemic. In March, the government made it mandatory for companies to continue to pay workers in quarantine or government-imposed isolation, and set up a £625m loan scheme to help companies do so, but the report warns of “widespread failure to comply” with this and other regulations.

The government later permitted companies that had stopped operating due to Covid restrictions to put workers on unpaid leave or terminate their contracts as long as they complied with requirements of the labour law, including giving a notice period and paying outstanding benefits.

The report highlights a number of companies that exploited or ignored this directive. Up to 2,000 workers employed by one construction company were laid off on the spot, workers claim. Most did not receive their outstanding salary or end of service settlement, a payment equivalent to three weeks’ salary for each full year of work.

“Many migrant workers are in an extremely vulnerable position with no real ability to assert their rights or seek remedy for violations,” says the report.

Mustafa Qadri, the director of Equidem, said the lack of a lawful right to organise or join a trade union has been particularly damaging. “It has prevented workers from having a seat at the table with government and employers to negotiate an equitable share of funds,” he said.

The report describes similar findings in the United Arab Emirates and Saudi Arabia, as well as policies in response to the pandemic which amount to racial discrimination. In both countries, the authorities required private companies to continue to provide wages and benefits to nationals, but allowed them to reduce wages or stop paying non-nationals.

In a statement, the Qatar government said its response to the pandemic, “has been driven by the highest international standards of public health policy and the protection of human rights”.

The government has provided free testing and treatment and said, “employers failing to pay their staff on time or withholding end of service payments have faced disciplinary action, including heavy fines and bans that prevent them from operating”.

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What is the State of Human Capital in the MENA Region?

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The answer to What is the State of Human Capital in the MENA Region? is given by Keiko Miwa, Regional Director, Human Development, Middle East & North Africa – World Bank and Jeremie Amoroso, Strategy & Operations Officer, Human Development, Middle East & North Africa – World Bank.


Countries in the Middle East and North Africa (MENA) have made good progress in improving human capital over the past decade. And yet a child born in MENA today can expect to achieve (on average) only 57 percent of her future productivity. On top of that, the COVID-19 crisis poses significant risks to hard-earned improvements in human capital in MENA. We can—and should—do much more to preserve and improve human capital in the MENA region.

The World Bank recently released the Human Capital Index 2020 (HCI). This update covers 174 countries—17 more than when the index was first launched in 2018. Not surprisingly, the HCI scores among MENA countries vary widely from 0.67 in the United Arab Emirates (UAE) to 0.37 in Yemen. Countries affected by conflict, such as Iraq and Yemen, score low on the index, which poses an important question on how to support the protection and enhancement of human capital even in the midst of conflict.

Looking at the 10-year trend, the HCI improved in 11 out of 14 MENA countries (with available data). Morocco, Oman, and the UAE registered the largest gains in the HCI during this period. School enrollment—at the preprimary and secondary levels—as well as harmonized test scores and adult survival, are the main drivers of the region’s HCI improvements. During this period, girls surpassed boys in educational attainment. On the other hand, enrollment declines in primary and lower-secondary school outweighed gains in other components of HCI for Kuwait, Tunisia, and Jordan.

Figure 1. Change in HCI 2020 and HCI 2020 in MENA countries

Source: World Bank. 2020. The Human Capital Index 2020 Update: Human Capital in the Time of COVID-19.

Note: Arrows indicate a decline in the HCI between 2010 and 2020. Data unavailable for Yemen, Iraq, Lebanon, and West Bank and Gaza for HCI 2010. See World Bank’s list of countries/economies by region.

WHAT’S NEW IN THE HUMAN CAPITAL INDEX 2020?

The HCI 2020 update introduces the Utilization-Adjusted Human Capital Index (UHCI). This is quite relevant in several MENA countries since there is a large gap between human capital and labor market outcomes. The utilization of human capital accounts for the fact that when today’s child becomes a future worker, she may not be able to find a job (Basic UHCI). And even if she can, it might not be a job where she can fully use her skills and cognitive abilities in better employment that increases her productivity (Full UHCI). When adjusting for the proportion of the working-age population who are employed, MENA’s HCI value declines by at least one-third—from 0.57 to 0.32 (Basic UHCI) and 0.38 (Full UHCI). Low female labor force participation rates in MENA countries are a key factor for the region’s low Utilization-Adjusted HCI.

Figure 2. The average MENA HCI value declines by more than a third when accounting for the proportion of the working-age population who are employed.
Source: World Bank. 2020. The Human Capital Index 2020 Update: Human Capital in the Time of COVID-19.

RISKS TO HARD-EARNED HUMAN CAPITAL

COVID-19 has cascaded into education shocks and the worst economic recession since World War II. At the height of the pandemic, almost 84 million children were out of school in MENA, and now countries that started to open schools are now reconsidering their decision due to the second wave. This could result in the loss of 0.6 years of schooling (adjusted for quality). Nevertheless, some MENA countries took early actions and adopted innovative measures to continue education. In Jordan, for example, the private sector and education officials collaborated to develop an education portal and dedicated TV channels for virtual lectures in Arabic, English, math, and science for grades one through 12. And Saudi Arabia’s universities achieved unprecedented results as more than 1.2 million users attended over 7,600 virtual classes, totaling 107,000 learning hours.

The HCI 2020 update uses data gathered as of March 2020—prior to the COVID-19 pandemic. It serves as a baseline for policymakers to track changes in human capital and inform policies to protect and invest in people through the pandemic and beyond. Previous pandemics and crises taught us that their effects are not only felt by those directly impacted, but often ripple across populations and, in many cases, across generations. COVID-19 is no exception. As a result, the region can—and must—build on its human capital progress amid the turmoil in three key ways.

First, the MENA region needs to continue building its human capital even during the pandemic or conflict. Crisis response measures that emerged out of necessity—such as distance learning and telemedicine—present new opportunities for building back better and differently the “new normal.”

Second, many countries in MENA have shown their sharp focus on protecting human capital by ramping up cash transfers and strengthening social safety nets since the onset of the pandemic. However, stronger efforts are still needed to preserve the human capital of internally displaced persons and refugees and to foster social inclusion for economic mobility.

Third, utilizing human capital is important to the immediate recovery and long-term development of MENA—the region with the highest youth unemployment in the world at more than 25 percent. Utilizing human capital requires job-focused policies as concerns about the future of work grow louder.

The HCI 2020 update shows that many MENA countries have made meaningful human capital progress over the past 10 years. As the pandemic threatens these precious gains, investment in human capital is more important than ever. Governments in MENA have launched promising initiatives that will help to build a better future. When today’s children in MENA become adults, hopefully, they will see how their region of the world turned the unprecedented crisis in 2020 into an opportunity to build stronger human capital.

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