Towards a Qatar Oil and Gas Sector National Workforce Development Initiative


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This presentation suggests a roadmap for a workforce development initiative focused on the oil and gas sector in Qatar. Evidence suggests that current large-scale projects and the transition to knowledge-based economic development are compromised by current workforce skills levels in Qatar. Companies in Qatar face both skills shortages as well as skills gaps that limit performance and achievement of business objectives.

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Towards a Qatar Oil and Gas Sector National Workforce Development Initiative

  1. 1. Towards a Qatar Oil and Gas Sector National WorkforceAbout Us Development Initiative 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.aePublic SectorSocial Sector A roadmap for a workforce development initiative focused on ▲Corporate Responsibility the oil and gas sector in QatarCONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of Tahseen Consulting is strictly prohibited | 1
  2. 2. 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 objectiveSource:Author’s analysis of economic development strategies | 2
  3. 3. However, 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 Employer Demand for higher, knowledge-intensive skills Ireland Estonia • Strong demand for high level skills High Spain Qatar make Czech Republic Hungary Korea, Rep. • Skills formulation institutions and the 8 Lithuania Latvia enabling environment work in tandem the transition? 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 Serbia Brazil Russia 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 levelsSource:Author’s analysis of World Bank Enterprise Survey | 3
  4. 4. Employers, particularly in the GCC, face both “skills shortages” as well as “skills gaps” thatlimit performance and achievement of business objectives 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 | 4
  5. 5. For O&G companies in Qatar, skills deficiencies have severely negative operational impacts Internal firm deficiencies External labor market deficienciesSkills Well Functioning Labor Markets Employers Require EffectiveFormation Require Allocative Efficiency Firm-level Utilization of Workforce SkillsObjective Workforce skills levels meet the expectations of Preparation of individuals with the skills, work experience, employers either in terms of full occupationalDescription and qualifications in the quantity and quality to meet laborof Objective proficiency or in the ability to meet business market needs objectives with current workforce skills levelsImpact on Skills shortages requiring expatriate reliance for Even when employees are hired, many still have skillsfirm if skills technical/commercial roles such as gaps requiring remediation through measures such asformation Technical Roles Commercial Roles Discipline Engineering Finance • Increased training and trainee programssystem is Geology/Geophysics Business Analysis • More staff appraisals / performance reviewsweak 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 • Incentives/rewards/recognition Reservoir/Petroleum • Sending employees for certification Engineering • Providing cross functional exposure to the business Well EngineeringInfluence on Medium to severe, but recruiting from outside Severe because skills gaps influence manybusiness Qatar is a short-term solution to what is a large- aspects of current operations includingoperations scale, systemic problem efficiency, service, and profitability | 5
  6. 6. Skills deficiencies can be mitigated when the business community plays an active role inworkforce investment and development 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 based • Coordination development with E&T Development system • Investment • Aligning Optimization Macroeconomic Policy Address policy, With Skills informational, or financial sources of • Lifelong-learning Formation underinvestment • Broad-based, Critical Government Coordination Points Inclusive Skills Formation Government Individuals | 6
  7. 7. Typical sources of market and institutional failure in skills formation systems may serve aspoints of intervention for CSR workforce development initiatives in QatarSource ofMarket Failure Key Areas of Failure Potential Points of InterventionPoor 1 • Misalignment of education system with development due to • Upskilling the supply chain through procurement activity rapid technical and organizational change or industrial policy • Research and Technology CentersMacroeconomic • Sponsoring symposia and conferencesPolicy • Entrepreneurship training • Energy/Industry Strategic Qatarization Plan • Involvement in next Qatar National Development Strategy • Government sponsored training levy-grant scheme 2 • Individuals may not know the future value of skills investments • Training subsidies to ease public private sector transitionInsufficient • Preference for more certain short term returns to available jobsIndividual • Scholarships and Internships • Lack of certification of skills acquired during training makes it • Encouraging students to pursue technical fieldsInvestment less attractive since value to other firms is reduced • Targeted scholarships/internships for females • Legislation that raises wages above the market level or when pay and status are not linked to qualifications reduces the • Campus ambassador program, on campus recruiting, incentives of workers to invest in training supporting student events , awards and incentives • Raising awareness of Qatar’s natural resourcesEducation and 3 • Lack of information on current and future skill trends in industry • Endowed faculty chairs • Lack of funds, bureaucratic management, poor remuneration, • Research collaboration and fundingTraining System and low standards leading to irrelevant curricula, poor teaching, • Participation in university-industry advisory boardsMisalignment and an emphasis on abstract rather than practical training • Funds for new institutions and expansion to fill gaps in coverage, programs, etc. • Embed general skill training in university curriculumFailure of Firms 4 • Lack of specialized institutions to provide appropriate training (such as Diversity & Inclusiveness, Personal and Business or lack of interaction between these institutions and enterprises Skills, Leadership Development, HSSE etc.)to Invest in • If trainees leave for other jobs after training, a bias towardsWorkforce specific, non-transferrable skills or decreased training emerges • Build up capacity of private trainers in O&G fields • Link significant training investments with minimum service requirements to avoid poaching Source: (Acemoglu and Pischke 1996; Research 1996; Lall 1999; Ziderman 2003) | 7
  8. 8. • For Further Information About This ‫للمزيد من المعلومات عن هذه المبادرة‬ • Initiative ‫للحصول على العرض التقديمي الكامل لهذه المبادرة يرجى‬ To get a copy of the full presentation or to ‫االتصال بـ ويزلي شوالييه على العنوان‬ discuss the findings, please contact Wes Schwalje• For Inquiries About Our Services and ‫• لالستفسار عن خدماتنا ولعرض أفكاركم علينا‬ Requests for Proposals ‫لالستفسار عن خدماتنا أو عرض أفكاركم علينا يرجى االتصال‬ To inquire about our services or submit a ‫بنا عبر اإلنترنت باستخدام النموذج أدناه أو إرسال بريد‬ request for proposal, please contact us using ‫إلكتروني إلى‬ the online form or send an e-mail to• For Organizations Interested in Alliances ‫• بالنسبة للمنظمات التي لديها اهتمام بالدخول في اتفاقيات‬ ‫شراكة وفي تحالفات مع شركة تحسين لالستشارات‬ We are interested in opportunities where our technical skills and expertise can be used to ‫إننا مهتمون بالفرص التي يمكن من خاللها استخدام مهاراتنا‬ complement or diversify those of potential ‫وخبراتنا الفنية لتكميل أو لتنويع مهارات وخبرات شركائنا‬ partners to pursue specific government ّ ‫المحتملين بما يمكن من السعي للحصول على تمويل حكومي أو‬ funding opportunities, commercial contracts, or ‫عقود تجارية. لبدء نقاش حول الدخول في تحالف مع شركة‬ RFPs. To begin a discussion about entering into an alliance with Tahseen Consulting, ‫تحسين لالستشارات يرجى االتصال بوليد العرادي على‬ please contact Walid Aradi at ‫العنوان‬ ‫• بالنسبة للعاملين في الصحافة أو في وسائل اإلعالم‬• For Members of the Press or Media ّ ‫لالستفسارات المقدمة من قبل وسائل اإلعالم يرجى االتصال بـ‬ For media inquiries, please contact Wes ‫ويـزلي شـوالييه على العنوان‬ Schwalje at