is your company ready for the 2020 workforce?

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Dr. Fida Afiouni American University of Beirut Lebanon [email protected] Is Your Company Ready For The 2020 Workforce?

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The demographic shifts happening in the Arab world are phenomenal. A simple projection to the 2020 workforce highlights two trends that companies cannot overlook: the increasing rate of women entering the workforce, and the increasing numbers of millennials with changing work and life attitudes. Fida will draw on research conducted at the American University of Beirut that uncovers the work family attitudes of various generations of men and women in the Arab region, and will discuss the implications of these changing attitudes on HR. Dr Fida Afiouni, Assistant Professor of HRM, Olayan School of Business at American University of Beirut

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Page 1: Is Your Company Ready For The 2020 Workforce?

Dr. Fida Afiouni

American University of Beirut

Lebanon

[email protected]

Is Your Company Ready

For The 2020 Workforce?

Page 2: Is Your Company Ready For The 2020 Workforce?

Outline

How to get ready for the 2020 workforce?

Current HR practices and policies

Workforce Perspective on work and life priorities

Overview of the 2020 workforce

Page 3: Is Your Company Ready For The 2020 Workforce?

An overview of the 2020

workforce

Forecasted Economic growth

• Gulf countries continue to enjoy

higher economic growth than the

global average, thanks to high oil

prices (Gulftalent, 2014).

Page 4: Is Your Company Ready For The 2020 Workforce?

GDP Growth Rate 2009-2014

(Gulftalent, 2014, p.6).

Page 5: Is Your Company Ready For The 2020 Workforce?

Economic growth and employment

are being affected by tensions in parts

of the Arab world

(Gulftalent, 2014, p.8).

Page 6: Is Your Company Ready For The 2020 Workforce?

An overview of the 2020

workforce • Nonetheless, the region is gaining

greater international prominence likely

to boost investment and employment

(Gulftalent, 2014)

Page 7: Is Your Company Ready For The 2020 Workforce?

An overview of the 2020

workforce

• Job creation among GCC

countries:

• 51 % of companies in UAE

increased headcount (Gulftalent,

2014) and this trend is likely to

continue.

Page 8: Is Your Company Ready For The 2020 Workforce?

Net percentage of firms which increased headcount

Page 9: Is Your Company Ready For The 2020 Workforce?

An Overview of the 2020

workforce

Workforce Composition

–The increased participation of

nationals

–The bursting pipeline of women

–The Youth Bulge

Page 10: Is Your Company Ready For The 2020 Workforce?

An Overview of the 2020

workforce

• Currently, the UAE have the largest

percentage of foreign labor (88%),

while in Saudi-Arabia and Oman this

percentage is respectively 72 % and

54 %.

Forstenlechner, I., & Rutledge, E. J. (2011); Mashood, N., Verhoeven, H., & Chansarkar, B. (2009, April)

Page 11: Is Your Company Ready For The 2020 Workforce?

An Overview of the 2020

workforce

• The commitment to reduce the

number of expatriates in the GCC via

state-led labor market policies of

Bahrainization, Omanization,

Saudization, and Emiratization will lead

to a higher number of nationals within

the workforce.

Forstenlechner, I., & Rutledge, E. J. (2011); Mashood, N., Verhoeven, H., & Chansarkar, B. (2009, April)

Page 12: Is Your Company Ready For The 2020 Workforce?

An Overview of the 2020

workforce

• The Bursting Pipeline of Women

• Women in UAE, Qatar, and Saudi

Arabia constitute 60 %, 62 %, and

57 %, respectively, of university graduates

Shehadi, R., Hoteit, L., Tarazi, K., & Lamaa, A. (2011).

Page 13: Is Your Company Ready For The 2020 Workforce?

An Overview of the 2020

workforce • The Bursting Pipeline of Women

• Despite these education levels, the

percentage of women in the labor

force in GCC countries is significantly

lower than other developed

economies

• Get Ready for the Bursting Pipeline!!

Page 14: Is Your Company Ready For The 2020 Workforce?

Women’s Workforce

Participation in the GCC PERCENTAGE OF TOTAL FEMALES, AGE 15+

Shehadi, R., Hoteit, L., Tarazi, K., & Lamaa, A. (2011). p.3

Page 15: Is Your Company Ready For The 2020 Workforce?

The High Education / Low Employment Paradox in Arab Countries

Labour Force Participation Rate 2009 (HDR 2011 pp 139-142)

Tertiary education -2010 (HDR 2011)

Tertiary education (Global education Digest 2011)

Female Male Gross enrollment

Female (with respect to

total enrollment)

Male (With respect

to total enrollment)

Qatar 49.90% 93% 10.20% 62% 38% Kuwait 45.40% 82.50% 18.90% NA NA U.A.E 41.90% 92.10% 30.40% 60% 40%

Bahrain 32.40% 85% 51.20% NA NA Oman 25.40% 76.90% 26.40% 59% 41% Jordan 23.30% 73.90% 40.70% 55% 45% Egypt 22.40% 75.30% 28.50% 53% 47%

Lebanon 22.30% 71.50% 52.50% 57% 43% Saudi Arabia 21.20% 79.80% 32.80% 57% 43%

Page 16: Is Your Company Ready For The 2020 Workforce?

An overview of the 2020

workforce

• The Youth Bulge

• At about 25%, the youth unemployment rate

in the MENA exceeds that of any other

region in the world

• Across the Gulf, unemployment is said to be

most acute among the young national cohort the “youth bulge” phenomenon

Ahmed, Masood, Dominique Guillaume, &Davide Furceri (2012); Spiess, A. (2010).

Page 17: Is Your Company Ready For The 2020 Workforce?

The Youth Bulge

Page 18: Is Your Company Ready For The 2020 Workforce?

Outline

How to get ready for the 2020 workforce?

Current HR practices and policies

Workforce Perspective on work and life priorities

Overview of the 2020 workforce

Page 19: Is Your Company Ready For The 2020 Workforce?

Workforce’s perspectives

on work and life priorities

• To get ready for the 2020 workforce, it

becomes important to answer the

following questions:

What does the Youth expect from their

employers? What attracts and engages them?

What Do women expect from their employers? What attracts and engages them?

Page 20: Is Your Company Ready For The 2020 Workforce?

Data Sources: My own research at the

American University of Beirut

• Survey conducted in 2012-2013 with 623 Arab Professionals of various age groups (1st study)

• Interviews conducted in 2013 and 2014 with 52 successful women in Lebanon and the UAE (2nd study)

• Interviews conducted in 2013 with 32 educated yet unemployed Arab women (3rd study)

Workforce’s perspectives

on work and life priorities

Page 21: Is Your Company Ready For The 2020 Workforce?

Employee’s perspective on work and life priorities (1st Study)

I look for added work responsibilities

(1 is low, 5 is high) Count Percentage

1 34 5.48%

2 59 9.50%

3 113 18.20%

4 225 36.23%

5 185 29.79%

No answer 5 0.81%

I continually look for new challenges in my work

(1 is low, 5 is high) Count Percentage

1 12 1.93%

2 53 8.53%

3 89 14.33%

4 223 35.91%

5 241 38.81%

No answer 3 0.48%

I want to have an impact and leave my signature on what I accomplish in life

(1 is low, 5 is high) Count Percentage

1 15 2.42%

2 57 9.18%

3 76 12.24%

4 178 28.66%

5 294 47.34%

No answer 1 0.16%

Employees thrive on challenging and

impactful assignments

Page 22: Is Your Company Ready For The 2020 Workforce?

My work is meaningless if I cannot take the

time to be with my family (1 is low, 5 is high) Count Percentage

1 65 10.47%

2 127 20.45%

3 133 21.42%

4 157 25.28%

5 133 21.42%

No answer 6 0.97%

Nothing matters more to me right now than balancing work with my family

responsibilities (1 is low, 5 is high) Count Percentage

1 63 10.14%

2 116 18.68%

3 136 21.90%

4 154 24.80%

5 149 23.99%

No answer 3 0.48%

Achieving balance between work and family is sacred for me (1 is low, 5 is high) Count Percentage

1 37 5.96%

2 92 14.81%

3 118 19.00%

4 184 29.63%

5 187 30.11%

No answer 3 0.48%

Work-life balance is A priority.

Family seems to weight heavier than

work

Employee’s perspective on work and life priorities (1st Study)

Page 23: Is Your Company Ready For The 2020 Workforce?

To what extent do the following statements

reflect your motivation to work?

[Because it’s important for me to have a

successful career]

(1 is low, 5 is high) Count Percentage

1 14 2.25%

2 30 4.82%

3 66 10.61%

4 204 32.80%

5 305 49.04%

No answer 3 0.48%

To what extent do the following statements

reflect your motivation to work?

[Because I like the challenge it

provides]

(1 is low, 5 is high) Count Percentage

1 13 2.09%

2 48 7.72%

3 91 14.63%

4 249 40.03%

5 217 34.89%

No answer 4 0.64%

Employees are Driven by Challenge and

Career development opportunities

Employee’s perspective on work and life priorities (1st Study)

Page 24: Is Your Company Ready For The 2020 Workforce?

To what extent do the following statements

reflect your motivation to work?

[Because I want to give back to the

community]

(1 is low, 5 is high) Count Percentage

1 50 8.04%

2 93 14.95%

3 156 25.08%

4 157 25.24%

5 161 25.88%

No answer 5 0.80%

To what extent do the following statements

reflect your motivation to work?

[Because I want to have an impact and

leave my signature on what I

accomplish in life]

(1 is low, 5 is high) Count Percentage

1 25 4.02%

2 68 10.93%

3 101 16.24%

4 170 27.33%

5 253 40.68%

No answer 5 0.80%

Impactful and meaningful job.

Giving back to the

community

Employee’s perspective on work and life priorities (1st Study)

Page 25: Is Your Company Ready For The 2020 Workforce?

Workforce’s perspectives

on work and life priorities

• Study 2: A zoom on women

• Among the 52 interviewed women in our

study, the meaning of work was mostly

related to intrinsic factors (Personal Choice, Achievement, Use of Education, and relational) with only 20% of the women mentioning that they work for extrinsic factors (money and status)

Page 26: Is Your Company Ready For The 2020 Workforce?

Workforce’s perspectives

on work and life priorities

• Study 2: A zoom on women

• The main challenges encountered throughout

their careers are organizational in nature:

• Working hours / Workload

• Little support from managers and colleagues

• Lack of organizational support in relation to mentoring and career development

• Little satisfaction with salary and benefits

Page 27: Is Your Company Ready For The 2020 Workforce?

Workforce’s perspectives

on work and life priorities

• Study 2: A zoom on women

• The main career development enablers

are governmental and family related:

• Societal Support for Career, Government

Support, Development Plans set by

governments

• Family support for education and family

support for a career

Page 28: Is Your Company Ready For The 2020 Workforce?

Women’s definitions of

Success

• (1) to reach goals through hard work;

• (2) to be recognized/appreciated by

others;

• (3) to raise successful children

• (4) to balance in order to not let the

family suffer

• (5) to have a positive impact on others.

Page 29: Is Your Company Ready For The 2020 Workforce?

Workforce’s perspectives

on work and life priorities

• Study 3: A zoom on unemployed Women

• The objective of this study is to

understand why young and educated

women remain unemployed in the Arab

Middle East.

Page 30: Is Your Company Ready For The 2020 Workforce?

Workforce’s perspectives

on work and life priorities • Study 3: A zoom on unemployed Women • Most of these women were working at some

point and had to quit their job due to 2 main reasons: • Poor working conditions such as long working

hours, lack of flexibility, lack of career development opportunities and poor pay

• The inability to achieve work-life balance, namely when they were founding a family

Page 31: Is Your Company Ready For The 2020 Workforce?

Workforce’s perspectives

on work and life priorities

• Study 3: A zoom on unemployed

Women

• Regarding their future employment plans, one third intend to return to work when their kids grow up, one third has been actively looking for a job without success and one third are still undecided.

Page 32: Is Your Company Ready For The 2020 Workforce?

Outline

How to get ready for the 2020 workforce?

Current HR practices and policies

Workforce Perspective on work and life priorities

Overview of the 2020 workforce

Page 33: Is Your Company Ready For The 2020 Workforce?

Current HR practices and

policies

Data Sources: My own research at the

American University of Beirut

• Survey conducted with 250 women working in the Lebanese banking sector (4th study)

• Survey conducted in 2011 with 85 HR managers in the banking sector in the Levant and GCC (5th study)

Page 34: Is Your Company Ready For The 2020 Workforce?

My family has played an important role in helping me meet my work demands (1 is low, 5 is high) Count Percentage

1 36 5.80%

2 97 15.62%

3 157 25.28%

4 215 34.62%

5 112 18.04%

No answer 4 0.64%

My company has played an important role in helping me meet my family demands. (1 is low, 5 is high) Count Percentage

1 81 13.04%

2 152 24.48%

3 158 25.44%

4 164 26.41%

5 62 9.98%

No answer 4 0.64%

Current HR policies and practices (1st Study)

Companies are not doing a good job in

supporting employee’s need for

balance

Page 35: Is Your Company Ready For The 2020 Workforce?

Current HR policies and practices (4th Study)

% Flexible work

schedules

Part time work

Work from home

Compressed work weeks

No 86.4 97.2 100 88.8

Yes 13.6 2.8 0 11.2

Page 36: Is Your Company Ready For The 2020 Workforce?

Average response on a scale from 1

(low)to 5 (High) To what extent do employees have to follow strict directives, rules, policies and standard operating procedures? 4.082353 To what extent are competent employees empowered to make decisions on their own? 3.117647 To what extent are work-life balance issues seen as important at your organization? 3.4286 To what extent is HR receptive to employees’ ideas? 3.6471 To what extent does HR succeed in retaining talent? 3.6588

Current HR policies and practices (5th Study)

Page 37: Is Your Company Ready For The 2020 Workforce?

Outline

How to get ready for the 2020 workforce?

Current HR practices and policies

Workforce Perspective on work and life priorities

Overview of the 2020 workforce

Page 38: Is Your Company Ready For The 2020 Workforce?

How to get ready for the 2020 workforce?

• Current government initiatives

• Suggested HR initiatives to get ready for the 2020 workforce

Page 39: Is Your Company Ready For The 2020 Workforce?

UNITED IN KNOWLEDGE –

A COMPETITIVE ECONOMY DRIVEN BY KNOWLEDGEABLE &

INNOVATIVE EMIRATIS

HARNESS FULL POTENTIAL OF HUMAN CAPITAL

SUSTAINABLE AND

DIVERSIFIED ECONOMY

KNOWLEDGE-BASED AND

HIGHLY PRODUCTIVE

Page 40: Is Your Company Ready For The 2020 Workforce?

Current government initiatives

• Implemented national policies—including a five-year plan, Human Resources Development Fund (HRDF) programs, and royal decrees—aimed at introducing women into the labor force

• Introduced aggregate nationalization quotas, and female nationalization targets for private companies, which called for 1.12 million additional jobs for Saudi nationals in 2014

Saudi Arabia

• The initiative by Dubai Women’s Establishment (DWE) focuses on activities such as conducting training programs to help equip the UAE women meet the requirements of the business world

UAE

Shehadi, R., Hoteit, L., Tarazi, K., & Lamaa, A. (2011).

Page 41: Is Your Company Ready For The 2020 Workforce?

Current government initiatives

• Qatar National Vision 2030 stresses on the importance of increased opportunities and vocational support for women.

• Qatar and Kuwait have launched business forums (Qatar Business Women Forum and Business Professional Women) for women with the aim of helping business women contribute to the economic development of their respective countries.

Qatar

Shehadi, R., Hoteit, L., Tarazi, K., & Lamaa, A. (2011).

Page 42: Is Your Company Ready For The 2020 Workforce?

Despite all these efforts,

Women’s capabilities are

underutilized in the GCC

Page 43: Is Your Company Ready For The 2020 Workforce?
Page 44: Is Your Company Ready For The 2020 Workforce?
Page 45: Is Your Company Ready For The 2020 Workforce?

How to get ready for the

2020 workforce?

1. Family-centrality is a common feature across all Arab countries (Afiouni, 2014, Afiouni and Karam, 2014; Karam and Afiouni, 2014) that cannot be ignored

a) The 2020 workplace needs to be a flexible workplace that allows for work-life balance

b) Work Life Balance affects employee satisfaction, stress, turnover rates, absenteeism and work-family conflicts. Implementing Work-Life balance policies would increase productivity.

Page 46: Is Your Company Ready For The 2020 Workforce?

How to get ready for the

2020 workforce?

2. The workforce is going to be increasingly diverse with a mix of locals/expatriates, men/women, young/mature workers

a) Progressive diversity policies are going to place you as an employer of choice

b) This requires you to walk the talk and ensure that there are no barriers to entry and career progression for locals, the youth and women.

Page 47: Is Your Company Ready For The 2020 Workforce?

How to get ready for the

2020 workforce? 3. The 2020 workforce thrives on

meaningful and impactful jobs

a. Engage your workforce in your CSR

initiatives

b. Turn your CSR initiatives internally

Page 48: Is Your Company Ready For The 2020 Workforce?

شكراً

Thank you

Page 49: Is Your Company Ready For The 2020 Workforce?

References

• Afiouni, F. (2014). Women’s careers in the Arab Middle East: understanding institutional constraints to the boundaryless career view. Career Development International, 19(3), 4-4.

• Afiouni, F., & Karam, C. M. (2014). Structure, Agency, and Notions of Career Success: A process-oriented, subjectively malleable and localized approach. Career Development International, 19(5).

• Afiouni, F., Karam, C. M., & El-Hajj, H. (2013). The HR value proposition model in the Arab Middle East: identifying the contours of an Arab Middle Eastern HR model. The International Journal of Human Resource Management, 24(10), 1895-1932.

• Afiouni, F. and Karam C.M. (2014). Identifying Career Patterns Of Arab Professionals Using the Kaleidoscope Career Model. Presented at the 13th International Human Resource Management Conference 2014, Cracow, Poland.

• AlMunajjed, M., Sabbagh, K., & Insight, I. C. (2011). Youth in GCC Countries: Meeting the Challenge. Booz & Company Inc.

• Amin, M., Assaad, R., al-Baharna, N., Dervis, K., Desai, R. M., Dhillon, N. S., & Galal, A. (2012). After the spring: Economic transitions in the Arab world. Oxford University Press.

• Forstenlechner, I., & Rutledge, E. J. (2011). The GCC's “Demographic Imbalance”: Perceptions, Realities and Policy Options. Middle East Policy,18(4), 25-43.

• the GCC: security risks, constraints and policy challenges. In Conference policy paper presented at the.

Page 50: Is Your Company Ready For The 2020 Workforce?

References • Gulftalent. (2014). Employment and salary trends in the Gulf

2014. http://www.gulftalent.com/home/Employment-and-Salary-Trends-in-

the-Gulf-2014-Report-37.html.

• Kapiszewski, A. (2006, May). Arab versus Asian migrant workers in the GCC

countries. In United Nations Expert Group Meeting on International Migration

and Development in the Arab Region, Beirut, May (pp. 15-17).

• Mashood, N., Verhoeven, H., & Chansarkar, B. (2009, April). Emiratisation,

Omanisation and Saudisation–common causes: common solutions?.

InProceedings of the Tenth International Business Research Conference,

Crowne Plaza Hotel, Dubai, 16-17 April. Butterworth Heinemann.

• Masood, A., Guillaume, d. and Furceri. D. "Youth Unemployment in the MENA

Region: Determinants and Challenges."Addressing the 100 (2012).

• Matherly, L. L., & Hodgson, S. 2014. Implementing Employment Quotas to

Develop Human Resource Capital: A Comparison of Oman and the UAE.

• Shehadi, R., Hoteit, L., Tarazi, K., & Lamaa, A. (2011). Educated, ambitious,

essential: Women will drive the GCC’s future. Booz & Company. Retrieved

on,11(19), 12.

• Spiess, A. (2010). Demographic transitions and imbalances in the GCC:

security risks, constraints and policy challenges.