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A Future Skills Strategy for Bahrain (2009 to 2016)

Skills Gaps Research Study

June 2009

Report to Tamkeen, Kingdom of Bahrain

Disclaimer

INFORMATION ON WHICH THE SURVEY RESULTS ARE BASED IS REPRESENTATIVE OF THE BEST INFORMATION AVAILABLE AT THE TIME OF THE STUDY’S FIELDWORK, CONSULTATIONS AND PUBLICATION. ALTHOUGH GREAT CARE WAS TAKEN TO ENSURE DATA QUALITY, LABOUR FUND (TAMKEEN) DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF THE SURVEY OR OF ANY INFORMATION PRESENTED HERE.

NEITHER THE LABOUR FUND (TAMKEEN) NOR ANY AGENCY THEREOF, NOR ANY OF THEIR EMPLOYEES NOR ANY OF THEIR CONTRACTORS, MAKES ANY WARRANTY, EXPRESS OR IMPLIED, OR ASSUMES LEGAL LIABILITY OR RESPONSIBILITY FOR THE ACCURACY, COMPLETENESS OR ANY THIRD PARTY’S USE OF THE INFORMATION CONTAINED IN THIS DOCUMENT.

The Allen Consulting Group ii

The Allen Consulting Group Pty Ltd

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Suggested citation for this report: Allen Consulting Group 2009, Skills Gaps Research Study: Final Report — A future strategy for Bahrain (2009 to 2016), Canberra, Australia.

Disclaimer: While the Allen Consulting Group endeavours to provide reliable analysis and believes the material it presents is accurate, it will not be liable for any claim by any party acting on such information.

© The Allen Consulting Group 2009

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The Allen Consulting Group iii

Contents

Glossary Report overview

vi 1

Future Skills Strategy: Vision and goals 1 The need for a Future Skills Strategy 3 Skills gaps in Bahrain 4 Implementation challenges 5 Four key focus areas 6 Future Skills Strategy: Assessing performance 12

Chapter 1 15 Introduction 15

1.1 Background to the study 15 1.2 Skills Gaps Research Study 17 1.3 Methodology for this report 19

Chapter 2 23 A future skills strategy for Bahrain 23

2.1 Rationale for a skills strategy 23 2.2 The future Bahrain labour market 24 2.3 Future skills strategy 26 2.4 Four focus areas 28 2.5 Possible solutions 29

Chapter 3 30 Overall skills initiatives for Bahrain 30

3.1 Introduction 30 3.2 Better matching of labour supply to labour demand 31 3.3 A national vocational apprenticeship program 34 3.4 A national transitions framework and careers education 35 3.5 Short courses and programs 36 3.6 National internship and scholarship programs 36 3.7 Investment in joint initiatives 37

Chapter 4 38 Focus area 1 — manufacturing 38

4.1 Manufacturing overview 38 4.2 Future labour market 38 4.3 Proposed solutions 40

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4.4 Short-term proposed solutions (2009-2012) 40 4.5 Long-term proposed solutions 46 4.6 Summary 52

Chapter 5 53 Focus area 2 — health 53

5.1 Health overview 53 5.2 Future labour market 53 5.3 Proposed solutions 55 5.4 Short-term proposed solutions (2009 to 2012) 55 5.5 Long-term proposed solutions (2012 to 2016) 61 5.6 Summary 63

Chapter 6 65 Focus area 3 — tourism and hospitality 65

6.1 Tourism and hospitality overview 65 6.2 Future labour market 66 6.3 Proposed solutions 67 6.4 Short-term proposed solutions (2009 to 2012) 67 6.5 Long-term proposed solutions (2012 to 2016) 75 6.6 Summary 78

Chapter 7 80 Focus area 4 — a strong infrastructure and service base 80

7.1 Overview 80 7.2 Future labour market 81 7.3 Proposed solutions 82 7.4 Short-term proposed solutions (2009 to 2012) 82 7.5 Long-term proposed solutions (2012 to 2016) 86 7.6 Summary 89

Chapter 8 91 Education 91

8.1 Education overview 91 8.2 Future labour market 92 8.3 Proposed solutions 93

Chapter 9 94 Transport and logistics 94

9.1 Transport and logistics overview 94 9.2 Future labour market 95 9.3 Proposed solutions 96 9.4 Short-term proposed solutions (2009 to 2012) 96 9.5 Long-term proposed solutions (2012 to 2016) 101 9.6 Summary 104

The Allen Consulting Group v

Chapter 10 106 Construction 106

10.1 Construction overview 106 10.2 Future labour market 107 10.3 Proposed solutions 108 10.4 Short-term proposed solutions (2009 to 2012) 109 10.5 Long-term proposed solutions (2012 to 2016) 115 10.6 Summary 116

Chapter 11 118 Trade 118

11.1 Trade overview 118 11.2 Future labour market 119 11.3 Proposed solutions 120 11.4 Short-term proposed solutions (2009 to 2012) 120 11.5 Long-term proposed solutions (2012 to 2016) 123 11.6 Summary 125

Appendix A Criteria for proposed solutions

127 127

Appendix B 130 References 130

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S K I L L S G A P S R E S E A R C H S T U D Y : A F U T U R E S K I L L S S T R A T E G Y F O R B A H R A I N

Glossary

BAPCO Bahrain Petroleum Company

BCCI Bahrain Chamber of Commerce and Industry

BIHM Baisan Institute of Hospitality Management

BIRD Bahrain International Retail Development

BLZ Bahrain Logistics Zone

BTI Bahrain Training Institute

CPP Career Progression Programme

CSB Civil Service Bureau

DMS Document Management System

EDB Economic Development Board

GDP Gross Domestic Product

GOSI General Organisation for Social Insurance

GPIC Gulf Petrochemical Industries Company

IATA International Air Transport Association

IBSA Innovation and Business Skills Australia

IHT International Health Tourism

ILO International Labour Organization

IMF International Monetary Fund

LMRA Labour Market Regulatory Authority

NESS UK National Employer Skills Survey

NIE National Institute of Education

OECD Organization for Economic Co-operation and Development

RCSI Royal College of Surgeons Ireland

RPL Recognition of Prior Learning

SCTH Specific Council for Training and Hospitality

SME Small Medium Enterprises

TNA Training Needs Analysis

UB University of Bahrain

UNCTAD United Nations Conference on Trade and Development

UNESCO United Nations Educational, Scientific and Cultural Organization

UTS University of Technology Sydney


The Allen Consulting Group 1

Report overview

It should be noted by the reader that the data for the Skills Gaps Research Study was collected during 2008 with the conclusions being finalised in June 2009. This data is relevant to each of the four reports in the series of the Skills Gaps Research Study.

Tamkeen has commissioned the Allen Consulting Group to conduct a comprehensive study to analyse current skills in Bahrain’s labour market, as well as future and emerging skills requirements, and to assess any current or projected skills gaps. The key output of this study is a Future Skills Strategy (2009-2016).

Future Skills Strategy: Vision and goals

The Allen Consulting Group propose a Future Skills Strategy (2009-2016) that is based on the key objectives of Bahrain’s Economic Vision: 2030, with some additional development around how these objectives can be met through skills development. This vision is one that:

• continues and builds on Bahrain’s national competitiveness — especially

within the Gulf States, through improving the skills competency of the labour force

• enables Bahrain to be the preferred country within the region to create and

grow a business — through increased Bahraini labour force participation and building on and improving the skills base of Bahraini workers

• contributes to improved social cohesion and inclusion — by increasing the

skills and participation of Bahraini women and improving the productivity of low-skilled workers in the labour market, with an intent to contribute to an increase in income per capita to 2015.

The Future Skills Strategy (2009-2016), including the strategy’s vision and goals is illustrated in Figure 1.



Figure 1 FUTURE SKILLS STRATEGY (2009-2016)

Source: (Allen Consulting Group and Eidos).

In order to move in the direction of this vision, the Future Skills Strategy is based on seven goals. These goals include a Future Skills Strategy that:

• builds on current skills initiatives — that are making a significant contribution

to closing overall and sector-specific skills gaps, through strengthening and refinement

• improves the skills competency of the labour force in prioritised economic

sectors — each sector has its own unique requirements and there are some sectors where the requirements for future skills are particularly acute. Further, some sectors requiring a focus on specific technical skills for highly-skilled workers, while other sectors require broad based foundational skills improvement for low-skilled workers



• improves Bahraini labour force participation — in line with the key goals of the National Strategy for Bahrain to ensure that labour reform is based on Bahrainis as the employees of choice for the growing private sector

• better meets the need of labour demand — through a flexible approach so that

the labour market and educational institutions can adjust to changing demands and emerging needs

• enables a responsive labour market — with business, government, the

education system and workers providing input into the strategy’s success. Including to ensure that initiatives and action plans are well understood, accepted and “owned’ by these key stakeholders

• contributes to an improved eduction and training system — one that achieves

outcomes (skills development) required to improve productivity in all sectors of the economy

• monitors performance — using the data from this study as a base, an ongoing

process of monitoring of progress towards goals and evaluation is in place to ensure that continuous improvement is sought in light of the input for the responsive labour market and review.

These goals have been developed based on the key principle that through their achievement, the goals help to meet the vision outlined above. In order to determine the appropriate set of goals, information was drawn from the inputs of the study (for example, stakeholder consultations and international literature) and the intellectual property of the Allen Consulting Group and Eidos project team to create a list of potential goals. From this initial task, those goals that best met the key principle, and would most likely help to meet the strategy’s vision, were selected to form the basis of the Future Skills Strategy.

Envisaging the achievement of the seven goals, the overall impacts of the Future Skills Strategy (as shown in Figure 1) are to:

• improve the overall skills competencies in the Bahrain labour market

• improve the stability of the labour market in the medium to long-term

• to improve the quality of life for people in Bahrain, through social cohesion

and inclusion.

The need for a Future Skills Strategy

A Future Skills Strategy is essential to support skills development to address labour shortages in key occupations across Bahrain. Understanding and capturing the skills and workforce needs of employers, and industry and translating them into future strategies lie at the centre of a responsive and flexible system for skill and workforce development.

However, these will be managed through a commitment to a strong and integrated process, which meets the needs of industry and employers. The key drivers of this strategy are:

• skills gaps in Bahrain at both the high and low end of the labour market

• a high expatriate workforce



• changed industry requirements not reflected in the education system

• that the labour market is increasingly competitive

• that each of the identified sectors have different needs

• that sectors with low skills gaps have a high level of Bahraini employment

• to prioritise key areas to prevent dilution of effort.

Skills gaps in Bahrain

As identified above, one of the key factors that drive the need for the Future Skills Strategy is that there are skills gaps present in the Bahrain labour market.

The international evidence suggests that global skills shortages are emerging at the high and low end of the skills spectrum — producing a polarised labour market where there will be increasing demand for both manual/craft oriented skills and higher level skills based on advanced computational skills and abstract thinking.

In addition, it is likely that there will be growing competition internationally to attract skilled labour. In the future, Bahrain will compete with other GCC States, the United States, Western Europe, India and China for skilled labour. With an increasingly mobile labour force, additional pressure will be placed on economies, like Bahrain, that rely on imported foreign labour for both high and low skilled workers (see Report 1 for greater detail on the international evidence on global skills shortages and the growing competition for skilled labour).

This study shows that these international trends in skills gaps/shortages hold true in Bahrain. In particular, the findings of the employer and employee surveys (which are detailed for each economic sector in Report 2) undertaken as part of this study, show the following:

• there are skills gaps at both ends of the skills spectrum, higher than demand for

middle management or intermediate skills

• there are skills gaps for broadly based skills in areas such as communication, English language and customer relations skills. This suggests that the demand for foundational, broad-based skills is high, more so than specific technical skills and that a focus on skills development should be in this area

• a lack of vocationally trained ‘work ready’ graduates to fill existing vacancies

and to cater for future growth

• a growing number of female university graduates seeking highly skilled positions in a number of economic sectors

• Bahraini graduates and employees have a preference to work in specific

sectors — for example, in public administration, business services, and finance and banking. There was a lower preference (and potential future participation) in other sectors, such as tourism and hospitality, manufacturing and construction. Financial, cultural and perceived work environment factors were identified as the major reasons behind these preferences.

Further, some of these findings have also been drawn from the outcomes of the Skills Gaps Conference and scenario planning activity, both of which are detailed in Report 3.



In addition to these findings, it is important to note that the occupational analysis, drawn from the employer survey, highlighted a number of specific occupations that will be in demand over the next 3 years (see Report 2 for further information by economic sector). These identified occupations cover the spectrum of skills needs — for highly skilled technicians to employees with a need for greater foundational skills. This information together with the findings from the employer survey itself re-iterates the need for skills development in both the high and low ends of the skills spectrum.

Bahrain faces similar skills and labour challenges as it GCC neighbours — it is very similar in terms of the age profile of the labour force, expatriate workforce composition and unemployment trends. Where the difference is most marked is in the makeup of employment — Bahrain has a more diverse workforce than its neighbours, which provides an opportunity to carve out a distinctive competitive position (see Report 1 for greater detail on the demographics of Bahrain’s labour force compared to other GCC States).

The present global economic crisis will in the immediate future mask the underlying trends, with a prospect of a return to rising global unemployment in the next three to five years. As mentioned above, over the longer term, the likelihood is that there will be increased competition for skilled labour globally. This places an even greater premium on the importance of taking advantage of current economic conditions to build future skills for the Kingdom of Bahrain.

Key proposals have been utilised in the strategy with an aim to address the problem of skills gaps in the labour market. These proposals include:

• better matching of labour supply and labour demand

• introducing a national vocational apprenticeship program

• a national transitions framework and careers education

• increasing the number of short courses and programs

• expanding the national internship and scholarship program

• investing in joint education initiatives with international universities.

The evidence of skills gaps in Bahrain, in addition to the presence of the other key drivers identified above highlight the skills problem that faces Bahrain’s labour market. Key proposals have been identified that will enable clear action to be taken to address this problem, for which the Future Skills Strategy provides guidance and planning.

Implementation challenges

This Report provides a series of proposed detailed actions to be undertaken in both the short-term and the long-term future in order to address skills gaps, in line with the strategy outlined previously. Implementing these actions will be challenging: they will require a strong commitment of time and attention; financial and staffing resources; political, industry and community support; and ongoing data collection so as to track progress in achieving desired outcomes.



The main challenges identified in earlier reports were based on evidence from focus groups, interviews and scenario planning. They included:

• teaching is a relatively low status profession – a characteristic of many

developed economies, not only Bahrain (see Report 2, p. 51). This will be constraint on the action plans. A shortage of skilled, high quality teaching and training professionals will limit the capacity of Bahrain to fill skills gaps through education programs, whether in the school and higher education sectors directly or through short courses

• engagement of skilled staff can be time consuming and complex (for example,

see Report 2, p. 83, in relation to health professionals)

• reported poor working conditions in some sectors (for example construction, see Report 2 page 124) were seen as discouraging Bahrainis from working in the sector

• some sectors such as tourism and hospitality have difficulty attracting a skilled

workforce for cultural reasons: for example, where positions involve working with alcohol or extensive contact with non-Muslim customers; skills formation will not be able to address these deeper concerns (Report 2, chapter 14).

These concerns were also important considerations in a high-level scenario analysis and canvassed in a regional conference on skills (see Report 3).

The most important strategy for addressing the challenges – especially, limitations on the capacity to implement actions due to a shortage of training staff – is to set priorities so as to allocate limited resources to their most valuable use. The following two sections of this Report provide more detail on this approach.

Four key focus areas

For this action to take place, some level of prioritisation needs to be included to ensure that this action is in sectors where there is likely to be the most benefit to the labour market and economy as a whole. Prioritisation is especially important given it is clear that the labour market is increasingly competitive and that different sectors have different skills needs.

For the purposes of this strategy, prioritisation will focus on those sectors where there is an acute skills gap and that are expected to be key strategic sectors in the future. In order to determine key focus areas (economic sectors), a subjective assessment was undertaken on sectors that best meet the following criteria:

• a significant contribution to economic growth

• significant skills gaps

• solid current strengths and future opportunities for skill development

• potential of skills formation to enhance Bahrain’s international

competitiveness

• consistency with the Economic Vision 2030.

Education reform will have significant impact on relevant skills gaps. However, for all economic sectors, this impact of changes to the education system was assessed as high and was constant across the key focus areas.



Using these criteria as a subjective assessment tool, the following sectors were identified to be the key focus areas under the Future Skills Strategy:

• health

• manufacturing

• tourism and hospitality

• infrastructure and service (including public administration, business services,

telecommunications and information technology).

Possible solutions under each of these focus areas were developed (some possible solutions were also developed for the other economic sectors) to create action plans. To identify, out of all of the possible solutions, which should be selected as part of the Future Skills Strategy, a similar subjective assessment approach to identify the key focus areas (described above) was used. In this case, possible solutions were selected based on those that best met the following six selection criteria (see Appendix A for further information):

• meets a goal (or goals) of the strategy

• is achievable

• is likely to be cost-effective

• has some support among stakeholders consulted

• provides an outcome quickly

• aids development of a strong private sector.

Each of the key focus areas, the possible solutions (short-term and long-term) that form sectoral ‘action plans’, and how these solutions address the goals of the strategy are summarised below.



Manufacturing

The manufacturing sector was selected as the first key focus area because it is expected to have a high contribution to economic growth, has high levels of skills gaps, a moderate number of current strengths and future opportunities for skills development, and is also a sector that holds consistency with the Economic Vision 2030. The possible solutions for the manufacturing sector are illustrated in Figure 2.

Figure 2

POSSIBLE SOLUTIONS — MANUFACTURING




Health

The health sector was selected as the second key focus area because it is expected to have a moderate contribution to economic growth, has high levels of skills gaps, a number of solid current strengths and future opportunities for skills development, and is a sector that holds consistency with the Economic Vision 2030. The possible solutions for the health sector are illustrated in Figure 3.

Figure 3

POSSIBLE SOLUTIONS — HEALTH




Tourism and Hospitality

The tourism and hospitality sector was selected as the third key focus area because it is expected to have a moderate contribution to economic growth, has high levels of skills gaps, a number of solid current strengths and future opportunities for skills development, and is also a sector that is consistent with the Economic Vision 2030. The possible solutions for the tourism and hospitality sector are illustrated in Figure 4.

Figure 4 POSSIBLE SOLUTIONS — TOURISM AND HOSPITALITY




Infrastructure and service

The groups of sectors that make up the final key focus area — infrastructure and service include:

• public administration

• business services

• telecommunications

• information technology.

As a group, this key area was selected because it is expected to have a high contribution to economic growth, has moderate levels of skills gaps, extensive solid current strengths and future opportunities for skills development, and is also a sector that is vital to the Economic Vision 2030. The possible solutions for the infrastructure and service key focus area are illustrated in Figure 5.

Figure 5

POSSIBLE SOLUTIONS — INFRASTRUCTURE AND SERVICE




Future Skills Strategy: Assessing performance

The Skills Strategy presents an integrated set of solutions aimed at developing a continuous improvement cycle for review. The following elements should be undertaken in a disciplined manner to monitor performance:

• performance management

• performance indicators

• continuous improvement

• review.

Tamkeen will continue to measure the performance of the Skills Strategy over the lifetime of the strategy. Quantifiable performance measures will allow a true indication of Bahrain’s performance.

Implementation of the Skills Strategy will follow an annual cycle to 2016. The implementation cycle will incorporate yearly updates of the Skills Strategy, including the announcement of any new initiatives. Tamkeen will maintain responsibility for updating and maintaining the currency of the Skills Strategy.

The active involvement of Tamkeen allows for the first time in Bahrain, a strategic approach to skills development and highlights a need in Bahrain to act across a set of targeted areas. Many of the possible solutions are demanding and a coordinated and concerted effort by employers, education institutes, industry and the government will be required to meet them. Collaboration in the development and implementation of skills, infrastructure and innovation strategies will continue throughout the life of the Skills Strategy.

The Skills Strategy will drive Bahrain’s skills development activity alongside other key strategies being developed, such as those from the Economic Development Board and other educational institutions.

Foundational skills and education

A skills gaps strategy needs to strike an appropriate balance between skills identified as important for specific industry sectors, and broadly based skills that have general applicability across a range of sectors. Both are important for building a highly skilled, competitive labour force. As identified in the United Kingdom Report Prosperity for all in the global economy - world class skills (the Leitch review of skills):

There are a large number of different types of skills and they can be split into a number of different categories. Basic skills, such as literacy and numeracy, and generic skills, such as team working and communication, are applicable in most jobs. Specific skills tend to be less transferable between occupations. (Leitch, 2006)

As outlined in Report 2, the data derived from interviews, focus groups and surveys strongly support a conclusion that basic and generic skills are in high demand. In the context of Bahrain, a more accurate term might be foundational skills. Foundation skills are those that Bahraini employers see as providing a firm base on which further industry specific skills can be built, either through training courses or through on-the-job learning. A summary of these findings is in Box 1.1 below.



Box 1.1 FOUNDATIONAL SKILLS – FINDINGS FROM REPORT 2

In the education sector, the most commonly identified skills required by private education providers were communications skills (15 per cent of those surveyed) and leadership and management skills (also 15 per cent). The top skill sets identified by employees as highly important to their work were literacy, work communication, checking skills, problem solving skills and customer communication. In health, although a technical sector where specialized skills were in high demand, there was nevertheless strong demand for management skills, and identification by health education institutions that English language skills were in need of development for a significant number of students. The public sector was one where comparatively skills gaps were lower (due to the high skills profile and level of Bahrainisation in the sector); here the foundational skills in most demand were management and leadership skills. Survey participants in the construction sector identified communications, problem solving and checking skills as in high demand; employers noted that technical know-how and physical skills were the most important needs, but these were followed by literacy and work communications skills. In the transport and logistics, information technology and telecommunications sectors, aside from the high level technology skills required in these sectors, the most important identified gap was in management skills. In business services and trade, the predominant foundational skills identified were business communications, literacy, and customer service skills (more frequently identified in interview data than in other data source for these sectors). Manufacturing skills gaps were identified in areas such as computational and communications skills, although – uniquely to this sector - there was a significant number of responses identifying engineering as a crucial skills gap. In tourism and hospitality, employers, employees and graduates surveyed identif ied workforce communication and customer communication as key skills. Interviews and focus groups strongly reinforced these findings.

Source: Surveys, interviews and focus groups

These results suggest that a skills strategy for Tamkeen will need to foster foundational skills as well as sector-specific training. A high level of foundational skills in common across the Bahrain trained workforce would have the additional benefit of encouraging labour market mobility, which will assist the Bahrain economy to be more adaptive to changes in economic conditions. The foundational skills in highest demand across all sectors were:

• management

• literacy

• communications

• customer relations.

The proportion of spending to be allocated to foundational skills, versus direct industry skills, will need to be determined by the Tamkeen Board. As a starting point for consideration, the evidence from stakeholder consultations would suggest that a high proportion (for example, fifty per cent or more) of spending on skills gaps should be targeted to meeting foundation skills needs.



Part A

Introduction



Chapter 1

Introduction

1.1 Background to the study

Tamkeen

Tamkeen (formerly Labour Fund) was founded in 2006 with the primary objectives of developing the private sector and making Bahrainis the preferred choice for employers. Tamkeen’s goal is to create high-value added jobs for Bahrainis.

Tamkeen’s strategy focuses on:

• capitalising and developing value added Bahraini talents and skills in

rewarding careers

• supporting the development and attraction of new and emerging industries

• enhancing and leveraging existing industries.

More recently Bahrain has taken vital steps towards comprehensive labour reform aimed to develop its human capital, support the private sector and liberalise and improve inherent market systems, standards or policies.

Successful reform of Bahrain’s labour market will affect the whole economy. In particular, it will raise Bahraini living standards by challenging private and public sector establishments to improve employment services, policies and standards and the working conditions within Bahrain.

Economy in brief

Bahrain has a long history as a regional centre for trade and commerce. In more recent times, since the 1930s when oil was discovered, the country’s economic prosperity has been based largely on oil revenues. These have been the main contributors to national income over the past half-century. Oil revenues have enabled development of extensive, high quality national infrastructure, and allowed the government to provide Bahraini citizens with services such as free education and free or very low cost health care, with minimal taxation. More recently, other industry sectors — notably banking and finance — have become increasingly important.

Bahrain’s policy makers have identified the need for longer-term investment outside the oil sector, for two main reasons.

Firstly, there are the dangers of natural resource income distorting patterns of economic development. Secondly, Bahrain’s oil resources are limited, and the government has prudently sought to develop a strategy for a future where the country will not be able to rely on oil as the major source of national income. Current economic development strategies and initiatives aim to mitigate the potentially significant impacts of this situation. Prominent among these to date, has been the successful effort to develop Bahrain as a regional provider of financial services and establish its position as a leader in Islamic banking and financial services.



Bahrain’s economic diversification strategy, shifting focus to non-oil sectors and industrial and commercial success, has been making notable progress over the last two decades. As a result, 75 per cent of Bahrain’s Gross Domestic Product (GDP) in 2007 was attributable to non-oil sectors (Central Informatics Organisation 2008).

Among the economic successes of the nation, there remain some key issues that have the potential to act as barriers to future economic diversification. An example is that income inequality is high compared to other developed nations with few middle-income households and many low income households.

In addition, the labour market is expected to change significantly over the coming decade. These changes include:

• new Bahrainis will enter the labour market, many of whom will be recent

graduates (from either high-school or post-secondary studies)

• an increasing number of Bahraini women will enter the labour market

• those currently unemployed and lacking skills to enter the labour market will improve their skill base in order to participate in the workforce (Economic Development Board 2004).

Continuing the aim of economic diversification, Bahrain’s Economic Development Board (EDB) has been focussed on a sustainable future for Bahrain. In 2004, the EDB launched a comprehensive National Strategy for Bahrain to ensure future sustainability. This strategy aims to:

• re-capture Bahrain’s leadership position as the pre-eminent economy in the

region

• become the preferred country within the region to create and grow a business, by both nationals and foreigners

• achieve a more than two fold increase in income per capita by 2015 (Economic

Development Board 2005).

The strategy consists of three components, which are outlined in Error! Reference source not found..

Box 1.1 COMPONENTS OF THE NATIONAL STRATEGY FOR BAHRAIN

Enabling the private sector: • the removal of barriers to growth such as access to capital, land, judicial and legal

infrastructures • specific sector initiat ives to accelerate growth in strategic sectors • dedicated Small Medium Enterprise (SME) initiative and investment promotion. Transforming government: • reducing red tape • moving from owner-operator to facilitator • creating a modern civil service. Investing in people: • labour market ref orm • education system reform.

Source: (Economic Development Board 2005)



The reforms aim to ensure that the private sector is the driver of future growth in Bahrain and that Bahrainis are the employees of choice for this growing private sector (Economic Development Board 2005).

Bahrain has made a strong investment in education, skills and diversification. There has been a rapid increase in educational standards since the 1980s, and at the same time a strong increase in the size and value of the services sector. However, the reliance on foreign workers to address the shortage of skilled labour during a period of rapid growth, perpetuated by mismatches between the profile of skills possessed by Bahraini nationals and those required in the labour market, is a significant issue to be addressed.

Economic observers (including the United Nations, IMF and others) have commented on the importance of resource rich nations investing in human capital. Bahrain has adopted a far-sighted program to do exactly this. This Skills Gaps Research Study is one element of that broader strategy.

1.2 Skills Gaps Research Study

Tamkeen has commissioned the Allen Consulting Group to conduct a comprehensive study to analyse current skills in Bahrain’s labour market, as well as future and emerging skills requirements, and to assess any current or projected gaps and needs.

The study aims to build on reforms in place and improve the quality and quantity of skills being developed, in order to ensure that Bahrain maintains a strong competitive economy and high quality of life.

The project will provide an information base to underpin strategies to improve labour force participation, and responsiveness to the demand for skills using a flexible, market based approach. The objectives of this project are outlined in Box 1.2.

Box 1.2 OBJECTIVES FOR THE SKILLS GAPS RESEARCH STUDY

1. To establish a detailed understanding of the current composition of the Bahraini

workforce — the deliverable at this stage will be a set of data on current labour market conditions, skills and components.

2. To provide analysis of the gaps in the current skills makeup in light of projected future demands. This will be identified on the basis of in depth analysis of the likely demands from both current employers and prospective new industry sectors.

3. To develop a strategy for overcoming such gaps. The strategy will be based on the most contemporary thinking in economics and labour market analysis.

4. Provide action plans that give clear guidance for identified priority sectors on how to implement the strategic directions proposed.

These objectives have been addressed in a series of four related reports (see Box 1.3).



Box 1.3 SKILLS GAPS RESEARCH STUDY — REPORTS

Report 1: Skills Gaps Research Study: A Comparable Country Scan: This report provides an outline of the international environment in which Bahrain operates and which determine Bahrain’s points of national advantage. It also considers how a sample of other comparable countries have aided skill development in the past. Report 2: Skills Gaps Research Study: Sectoral and Skills Gaps Analysis: This report outlines a baseline for the labour market and associated skills in Bahrain’s industry sectors, forecasting the labour and skills needs for each sector into the future (assuming no predicted changes to the status quo) and identifying skills gaps within each sector. It also identifies strengths, weaknesses, opportunities and threats in terms of the labour market in each sector and associated skills gaps. Report 3: Skills Gaps Research Study: Future Skills and Workforce Needs: This report summarises the key lessons drawn from the scenario planning exercise and the Regional Conference on Skills Gaps, conducted in Bahrain in November 2008. The report highlights key f indings that will contribute to the outcomes of the future strategy. Report 4: Skills Gaps Research Study: Final Report This report identifies the future needs of the Bahraini labour market and associated skills gaps using the information collected in each of the previous reports and incorporating economic modelling of this inf ormation.

The report provides an overarching strategic framework and includes sectoral action plans that will address the future strategy.

The Skills Gaps Research Study is one piece of a broader spectrum of issues that relate to the labour market and skill development. Other key issues such as labour market reform (including skill development concessions such as the current training levy scheme), wage policy, labour laws, the education system structure and Bahrain’s inherent cultural and social values are not addressed within the scope of this study (see Figure 1.1). Although these are important areas for consideration in national skills policy, they are well beyond the mandate of an external consultants’ report; rather, they are matters for national determination by senior policy makers in the Kingdom of Bahrain.

This study has been specifically targeted to identify and create strategies to address future skills gaps in Bahrain. Specifically, the Allen Consulting Group are using a definition of skill as ‘a proficiency or facility that is acquired or developed through education, training or experience’ to ensure that the study meets its objectives (see Box 1.2).



Figure 1.1 THE MANY FACETS OF THE LABOUR MARKET


The Skills Gaps Research Study builds on previous work undertaken in Bahrain on skills development, such as a skills development analysis by McKinsey & Company for Tamkeen, and a study of Skills Gaps & Competency Requirements for the Financial Services Industry by Ernst & Young Bahrain for the Human Resources Development Fund. Although the Skills Gaps Research Study is based on a unique methodology, key findings and lessons from these and other previus research programs have been drawn on to inform the study.

1.3 Methodology for this report

The methodology for Report 4 draws on the information collected and analysed in all of the previous three reports that make up the Skills Gaps Research Study. The objective of Report 4 is to:

• develop a strategy for overcoming future skills gaps based on the most

contemporary thinking in economics and labour market analysis

• provide action plans that give clear guidance for identified priority sectors on how to implement the strategic directions proposed.

The strategy and action plans in this report do not consider the petrochemical or banking and finance sectors, given that both sectors are well developed and already have well developed skills strategies in place. However, they do provide excellent models for an effective Bahraini approach to addressing skills gaps, and the experience of those sectors has provided valuable insights to assist in developing action plans for other sectors.

In order to develop an effective future skills strategy for Bahrain five main tasks were considered:

• understanding the rationale for the future skills strategy for Bahrain, including

the objectives of the strategy

• determining an effective skills strategy framework to highlight how the objectives of the skills strategy will be met



• developing a high-level skills strategy including focus areas in order to prioritise skills gaps in economic sectors

• identifying the overarching skills initiatives for Bahrain from which the

majority of the solutions in each of the focus areas can be drawn

• developing action plans for each of the focus areas (and in a shorter form for other economic sectors) that detail ‘what to do’ and ‘how to do it’ as a means of achieving the strategy’s objectives.

Each of these five tasks have been completed and documented in Part B and Part C of this report. The action plans in Part B have been prioritised given the importance of the focus areas identified and hence are more detailed than the action plans in Part C.

In addition to developing action plans, a structure has been drawn to ensure that action plans (particularly for focus areas) are viable, effective, and provide sufficient detail of ‘what to do’ and ‘how to do it’. Each action plan considers the following:

• an overview of the skills gaps, and future occupation and qualification issues

that face the economic sector and were highlighted in Report 2

• the future labour market for the economic sector, predicted to 2012, based on sector-specific assumptions additional to the status quo forecast outlined in Report 2

• short-term solutions — to be considered between 2009 and 2012, including

detail on the method, responsibility, cost and priority of each possible solution

• long-term solutions — to be considered between 2013 and 2016, including detail on the method, responsibility, cost and priority of each possible solution

• a summary of the action plan to be used as a high-level planning tool for each

focus area or economic sector.

Structure of Report 4

The remainder of this report is structured as follows:

• Part B presents a future skills strategy for Bahrain, including the following components:

– Chapter 2 outlines the rationale for a skills strategy, what the future

Bahrain labour market is expected to look like and presents the high-level future skills strategy for Bahrain, including the four focus areas that underpin the strategy

– Chapter 3 provides detail on a set of overall, high-level, overarching skills

initiatives for Bahrain from which the majority of the solutions in each of the focus areas can be drawn, including an overview of how the education system can be improved to better match labour supply to labour demand

– Chapter 4 through Chapter 7 details the short-term (2009-2012) and

long-term (2013-2016) action plans for the four focus areas that underpin the future skills strategy for Bahrain.



• Part C (Chapter 8 through Chapter 10) details the short-term (2009-2012) and long-term (2013-2016) action plans for the other economic sectors included in the Skills Gaps Research Study.



Part B

A future skills strategy for Bahrain



Chapter 2

A future skills strategy for Bahrain

2.1 Rationale for a skills strategy

Bahrain’s future skills strategy needs to be based on a set of objectives that illustrate the key issues facing employers, employees, the education system and the Bahrain Government in terms of skills gaps. Drawing on the information and analysis undertaken in the three previous reports for the Skills Gaps Research Study, the four key objectives for a future skills strategy are to:

• increase the skills competency of the labour force

• increase Bahraini labour supply participation

• better meet the needs of labour demand

• contribute to an improved education system to aid skills development.

The strategy also targets and prioritises solutions that best achieve the set of strategy objectives.

Figure 2.1 illustrates a mechanism to target the strategy and solutions purely dependent on an industry sector’s contribution to economic growth. If those sectors that most directly impacted on Bahrain’s economic growth were chosen as target areas for a future skills strategy, drawing on the labour market pool, education system and the infrastructure and service base, potential targeted economic sectors include:

• health

• manufacturing

• construction

• petrochemicals

• banking and finance


• transport and logistics

• trade.

Section 2.4 takes this targeting mechanism one step further using the information and analysis undertaken in the previous Skills Gaps Research Study reports to identify four strategic focus areas.



Figure 2.1 INTERACTION BETWEEN SECTORS TO ACHIEVE ECONOMIC GROWTH


In order to help prioritise the strategy and solutions, proposed solutions can also be measured against the extent to which they assist in meeting the strategy objectives. This measurement has been conducted through subjective scoring to determine priorities — assigning a high, medium, or low score against the four objectives as well as an average priority score as a means to determine ‘high priority’ solutions relative to others.

2.2 The future Bahrain labour market

For the purposes of the Skills Gaps Research Study, the future Bahrain labour market is being considered in two segments:

• the future labour market comprising the 11 economic sectors selected for this

study

• other economic sectors (such as the petrochemical and banking and finance sectors) that make up the entire Bahrain labour market.



2

The Labour Market Regulatory Authority (LMRA) estimated the total labour market to equal 439 174 employees (both Bahraini and non-Bahraini workers, but excluding domestic workers) in December 2007. Assuming the status quo, the labour market would be forecast to equal around 694 000 employees in 2012 (excluding domestic workers). However, given the current and expected economic climate, an estimate using the status quo alone is not considered a reasonable basis for forecasting. Therefore, assumptions on how the labour market may change between 2007 and 2012 have been made for each of the 11 economic sectors selected for the Skills Gaps Research Study and are described in Chapter 4 through Chapter 10. In addition to these assumptions regarding the 11 economic sectors, some assumptions were made on the extent of future employment in all other sectors contributing to the total labour market, including:

• an increase in Bahraini labour of 5 per cent

• a decrease in non-Bahraini labour of 5 per cent.

Using the historical data available from the LMRA and including these shocks in the 2008 year, an autoregressive 1 period model was applied to the entire dataset to

1

forecast the total future Bahrain labour market, which is shown in Figure 2.2. Under these assumptions the total Bahrain labour market is estimated to comprise of around 592 300 employees in 2012 (an increase in the labour market of 34 per cent from 2007). This estimate excludes domestic workers. Of this total, 75 per cent would be employees in the 11 selected economic sectors and 25 per cent would be employees in other economic sectors .

Further, of those employees in the 11 economic sectors, 23 per cent (102 000 employees) are estimated to be Bahraini and 77 per cent (344 000 employees) are estimated to be non-Bahraini. In 2007, 30 per cent of the total labour market was made up of Bahraini workers. However, these results assume that no additional mechanisms are introduced to improve the participation of Bahrainis in the labour market.

1 An autoregressive 1 period model is a tool to forecast data based on historical information. A series is formed from the one previous period in addition to the historical base. The formula used in an autoregressive 1 period model is Labour_Force(t) = b(t) + α(t) Labour_Force(t-1) + error.

2 The total labour market for the 11 economic sectors does not separately identify the labour market in the ICT sector (as this data is included in the telecommunications sector). Further, public health and education labour is not included as these values are captured in the public administration sector labour force.



Figure 2.2 THE FUTURE BAHRAIN LABOUR MARKET TO 2012

Note: Domestic workers have been excluded from the data from 2007 onwards and explain the reduction in the total labour market in 2007. Source: (Allen Consulting Group and Eidos); (Labour Market Regulatory Authority 2008); (Civil Service Bureau (CSB) 2008); (General Organisation for Social Insurance (GOSI) 2008).

2.3 Future skills strategy

To assist the Government of Bahrain deliver its ambitious agenda for addressing the skills shortages across 11 economic sectors as outlined in the Skills Gaps Research Study a future skills strategy is essential to support skills development to address labour shortages in key occupations. The development of future skills strategies for Bahrain as outlined in this report will aim to enhance rather than constrain labour market diversity.

Skills shortages have a number of causes and the strategies suggested in this report reach beyond purely training-based solutions by taking a workforce development approach to addressing the skills gaps. These are both short-term and long-term and will require collaboration between government, industry and the workforce. The majority of the strategies in this report are premised on this type of collaboration although not all of the strategies require equal input from all parties.

To determine what future skills strategies should be considered for meeting the needs of the labour market in Bahrain a skills strategy framework was developed (see Figure 2.3). This framework considered the results of the research from Report 2, the analysis undertaken through the surveys and also took into account the current initiatives being introduced by Tamkeen.



Figure 2.3 SKILLS STRATEGY FRAMEWORK


A comprehensive response to the skills gaps challenges requires a set of overarching strategies that address and strengthen each need. The outcomes of the analysis in this area identified that each of the key strategies should address the high likelihood to contribute to future growth and fall in the category of having a high level of skills gaps. The following four dimensions were considered within the skills strategy framework:




• contribute to an improved education system to aid skills development.

To ensure that the strategies put in place are being addressed and continuous improvement is being made the final part of the skills gaps strategy implementation process is monitoring and evaluation.

This not only involves monitoring the progress of action plans but also conducting evaluations at the conclusion of each of the implemented strategies to ensure the goals have been met.



2.4 Four focus areas

It is difficult to predict with any certainty the required skills mix to meet both the demands of employers and the requirements for effective participation in the wider workforce over the longer term. However, the projections contained in Report 2 and this Report provides a broad indication of the occupations and sectors in which additional skills will be required. Given that, and the analysis undertaken in Report 1 to Report 3, it was determined that there are four focus areas under the overall skills strategy, as highlighted in Figure 2.1 which include:

• manufacturing

• health


• a strong infrastructure and service base, including components of the Public

Administration, ICT, Telecommunications and Business Services sectors.

These selected sectors were considered to show projected growth and would continue to be a key component of Bahrain’s enterprise base. After considering the existing strengths and opportunities for further development and growth in these high value-added sectors along with the desired outcomes already identified by the economic vision 2030 strategy for Bahrain it was decided to develop detailed action plans for these four focus areas.

A key component of this strategy is the focus across four of the 11 economic sectors outlining the proposed solutions to address the skills gaps in each area. This consists of action plans being developed for all sectors and in particular for four key areas as identified in Figure 2.4 below which highlights the high priority elements of the action plan described in the remainder of this report.

Figure 2.4

FUTURE STRATEGY KEY FOCUS AREAS




2.5 Possible solutions

Possible solutions under each of these focus areas were developed (some possible solutions were also developed for the other economic sectors) to create action plans. To identify, out of all of the possible solutions, which should be selected as part of the Future Skills Strategy, a similar subjective assessment approach to identify the key focus areas (described above) was used. In this case, possible solutions were selected based on those that best met the following selection criteria:

• meets a goal (or goals) of the strategy — which is necessary in order to be able

to achieve the goals and, in turn, assist to meet the Strategy’s vision;

• is achievable — or is an implementable solution given the economic, labour market and sectoral environments

• is likely to be cost-effective — will see significant outputs and outcomes in line

with, or exceeding, the cost of the possible solution

• has some support among stakeholders consulted — is in line with the many interviews that were conducted as part of the study

• provides an outcome quickly — so that there is a mix of possible solutions that

include both those that have a long term measurable outcome, but also staged solutions that will show the impact of the Future Skills Strategy across its entire timeframe (i.e., not just outcomes at the end of the timeframe, but all along the time continuum)

• aids development of a strong private sector — which is a key objective of the

EDB and one of the primary drivers behind the creation of Tamkeen.

The subjective assessment of the key focus areas and other economic sectors are outlined in Appendix A.



Chapter 3

Overall skills initiatives for Bahrain

3.1 Introduction

It is clear from the analyses undertaken in this study that Bahrain has already taken considerable steps forward in reforming its labour market and education-training system in order to improve productivity, competitiveness and a thriving private sector (all goals of the Economic Vision 2030 statement).

In particular, the Ministry of Labour and Tamkeen have played a leadership role in facilitating the development of the skills needed by Bahrainis for the Kingdom to be a productive, globally competitive economy. Consultations with stakeholders suggest that most of the initiatives being undertaken by government in reforming the labour market and the education-training system are moving the economy in the right direction.

This study confirms that some sectors of the Bahraini economy are both productive and globally competitive: in these leading sectors most employees are well qualified, highly skilled Bahrainis and there are relatively few skills gaps.

On the other hand, some sectors have become increasing reliant on non-Bahraini labour, and at best make a modest contribution to the development of a ‘broad middle class’ of skilled, productive and pioneering Bahrainis.

The evidence from these consultations suggests that there are some imbalances and weaknesses in the skills and attitudes of entrants to the labour markets that hamper progress in the policy of Bahrainisation and efforts to improve the productivity and competitiveness of under-performing sectors.

The analysis undertaken in this study has focused on identifying the skills gaps of major sectors of the economy. Not surprising, the analysis reveals that each sector has its own unique requirements; there are some sectors where the requirements for future skills in particular fields are particularly acute, and action plans for dealing with these are outlined in following chapters of this report.

At the same time, there many areas in which the skill requirements now and in the future are common to all sectors. Some of these skills are broad based: computational and mathematical, Arabic and other language skills, customer service, development and maintenance of networks, communications skills and the like. These were raised not only in surveys but were mentioned time and again in stakeholder consultations. These skills needs are identified in each sectoral chapter of the report.

In addition, there is an important set of future skills needs that neither survey nor interview methodologies can identify: skills required for industry sectors that may emerge in the future as a result of new technologies, processes or investments but which at present do not exist in the Bahrain economy.



A skills strategy should balance individual sectoral needs with the development of flexible, robust institutional mechanisms that allow the labour market to adjust to changing demands and emerging needs. The purpose of this chapter is to identify areas where the current institutional framework might be adapted to provide this additional flexibility, including an overview of how the education-training system can be improved to better match labour supply to labour demand.

In suggesting initiatives that might be considered, it is important that:

• skills initiatives undertaken in the light of the results of this study contribute to

the strengthening and refinement, rather than the abandonment, of current initiatives that are making a significant contribution to closing overall and sector-specific skills gaps

• existing and new overall and sector-specific initiatives form a coherent

framework of priorities for action that are essential for reforms of the labour market and the education-training sector to be effective in realising the national vision

• initiatives and action plans are well understood, accepted and “owned’ by key

stakeholders (government, public and private employers, workers, entrants to the labour market, education and training providers)

• government labour market and education-training policies provide the

incentives needed to encourage implementation of key initiatives

• using the data from this study as a base, an ongoing process of monitoring of progress towards goals and evaluation is in place to ensure that necessary adjustments and refinements are made in the light of feedback.

Drawing on the information and analysis undertaken in the three previous reports for the Skills Gaps Research Study, key objectives of any overall skills initiative are to:




• contribute to an improved education-training system that achieves the

outcomes (skills development) required to improve productivity in all sectors of the economy.

Six areas in which overall skills initiatives seem to be needed in Bahrain are identified.

3.2 Better matching of labour supply to labour demand

In consultations and focus groups for this study, one of the most common complaints from employer groups was that the supply of labour from the formal education-training system does not match the skill demands of their enterprise and sector.



The most common observation was that the education-training system has not produced enough Bahrainis with scientific, technological and technical qualifications, but instead too many arts-social science-humanities graduates and school leavers leading to high levels of youth unemployment. While the education system cannot be expected to provide all the industry-specific skills demanded by employers, it is expected to ensure that those leaving the system have the generic skills and work-attitudes critical for any worker in a modern economy to be productive.

The current EDB Education Reform program provides a comprehensive framework for the overall reform of the education-training aimed at improving the quality and relevance of education, that is, closing the skills gaps. The initiatives set out below need to be considered within the framework of the EDB Education Reforms.

Tighten links between education, training and industry

The strategic approach most likely to succeed is to build on the success of initiatives of sectors where the match between supply and demand is sound, the links between education, training and the industry are close, skills gaps are minimal, and the level of Bahrainisation is high.

The petrochemical sector (in particular, the scholarships and training initiatives of companies like BAPCO and GPIC) and the Banking and Finance Sector (particularly the Bahrain Institute of Banking and Finance) provide casebook studies of what works. Both sectors have a long history of investment in the development of the human capital they need to be productive and internationally competitive, one in which strong leadership has been provided both by the management and the government over a prolonged period. They provide a workable, Bahraini model of how to develop an institutional approach that matches supply with demand.

Bahrain’s Government should consider making it mandatory for education and training providers to ensure adequate industry involvement in course design, teaching, practiciums and assessment as a condition for funding support and accreditation of vocationally oriented courses. This would ensure that the roles played by the Ministry of Education (particularly the Educational Research and Development Centre), the Bahrain Higher Education Council, the High Council for Vocational Training and its Specific Councils, and the Bahraini Quality Assurance Agencies are strengthened in:

• mapping skills requirements, graduate employment rates and employer

satisfaction with skills of recent graduates

• ensuring that courses provided by schools, training institutions (like BTI, Bahrain Polytechnic and private colleges) and universities focus on developing key skills and competencies, and meet international standards and benchmarks

• refusing accreditation or re-accreditation of courses and institutions failing to

meet requirements of industry involvement and/or standards required for professional or trade certification

• establishing a National Qualifications Framework

• encouraging industry involvement in course design, work experience

programs, internships and apprenticeship programs



• introducing a compulsory training levy for within-industry training, and legislation requiring all companies with more than 50 employees to provide vocational competency development programmes, as in Korea).

Increased variation in funding levels would be a useful signalling mechanism

Long lead times in the design and delivery of educational courses are common, in Bahrain and in higher education sectors worldwide. The investment required to develop a curriculum recruit and train teaching staff, and develop course material, are all reasons why secure, long term funding is desirable.

However, too high a degree of security in funding means that existing provision can be locked in at the expense of emerging needs. There is a balance that needs to be struck between certainty of funding in order to promote long term planning and responsiveness to the immediate needs of the economy. Consultations with industry suggested that a majority of industry leaders perceive rigidity of funding as a problem with the higher education system in Bahrain, and would prefer the balance to be shifted towards responsiveness.

Options for increasing the level of funding variation to help close the gaps between supply and demand could be based on the budgetary allocations to higher education bodies (e.g. provision of a higher funding base for University and BTI faculties where major supply gaps are evident, reduction for those where there is an over- supply of graduates) or built around incentives (e.g. scholarships, government supported-internships) aimed at attracting more students to areas where private sector finds it difficult to recruit Bahrainis with the appropriate qualifications and skills. These are proposals that are to be considered within the context of broader education reform – they are covered here in recognition of the employer interest in improving responsiveness, but the report recognises that overall education reform is outside the scope of the project.

Greater transparency in labour market information

A well-functioning market is characterised by widespread dissemination of information. This applies equally to labour as to commodities markets. Information that is relevant, accessible and up to date is a crucial factor in encouraging the matching of supply and demand.

As shown in the findings outlined in Report 2, there is a considerable amount of information on Bahrain’s skills and occupations available from official sources. However, little of this information is published in a form that assists potential employees, parents, or employers, to match their aspirations and needs. The relative paucity of online information on trends in employment patterns and in demand for skills is a potential barrier to further labour market reform.

As a first step, the publication online of information currently collected on labour numbers and trends would improve the capacity of the Bahrain labour market to anticipate and react to emerging pressures and demands.



3.3 A national vocational apprenticeship program

A number of sectors report skills shortages in key technical and skilled trade areas. Whereas BAPCO has long had an apprenticeship programme to ensure that it has the skilled tradesmen it needs, it is evident that there is an overall skills gap – one filled largely in other sectors by non-Bahrainis. The BAPCO experience was noted in a large number of industry leaders interviewed in the consultations for this report as a model that could be applied elsewhere. This was particularly so in relation to manufacturing and transport industries.

A possible approach would be for Bahrain to consider establishing a national apprenticeship scheme.

The scheme would focus on technical and craft apprenticeships in areas of high demand across sectors identified in this study (such as electrical trades; refrigeration and air-conditioning; welding; health, laboratory, IT technicians; administrative and clerical workers; small business management), particularly where those areas in which the level of Bahrainisation is low.

Appropriate Diploma and Advanced Diploma courses would need to be established or further developed by BTI (and potentially the Bahrain Polytechnic) allied with on-the-job apprenticeship programs where job-specific skills can be learned.

In establishing a national program, the experience of BAPCO as well as that of international organizations (e.g. UNESCO-UNEVOC, ILO) and countries with a long tradition of apprenticeship systems within a governmentally supported framework (such as Austria, Great Britain, Germany, Australia and New Zealand) should be sought in the design and implementation of the programs. This should also apply in the harmonisation of a national (and regional) system of standards, assessment and accreditation.

Of course, for such an initiative to work, employers would need to be willing to participate in the program, to take on apprentices, to provide them with on-the-job training generally over a two to three year period, to accept that they need blocks of time for formal training at BTI or an approved training provider. As in many countries, a considerable effort needs to be made to improve the status and image of technical and craft trades, and thus this would need to be a focus of a public information campaign.

During training, apprentices are engaged in working for an employer and being trained on-the-job by them as well as being engaged in a formal training program provided by approved vocational education/training provider such as BTI. For apprentices, the level of income provided during training is a key issue. Ideally the monthly income of an apprentice should not be much lower than that of a semi- skilled employee of the same age; although life long earning potential is higher for a more highly skilled employee, the immediate incentives effects of a lower income while training would discourage potential trades apprentices. This suggests that an allowance around BD300 per month in present values would be required to encourage take up of apprenticeships.



To proceed, this proposal would require both a detailed business case for funding, and consideration within the overall Bahrain education strategy. In addition to the costs of supporting apprentices, the costs of training itself would need to be found either from employers, government, or some agreed combination of both. Additional funding would also need to be provided to BTI and the Bahrain Polytechnic to enable them to hire or enter into joint agreements with overseas counterparts to ensure that the training and standards reached are comparable with those achieved by Bahrain’s major trading partners.

3.4 A national transitions framework and careers education

For many students completing their studies at secondary school, a training institute or university, the transition to work is a hazardous one. UNESCO and international experience suggests that transition problems can never be eliminated, but for many students transition is made easier by provision of information, advice and counselling. Career and transitions services assist students in planning for a career and to prepare and support them to make successful transitions to post-school, college and university destinations.

Such services need to include career guidance and information on the changing nature of work and the labour market and the work ethic expected by employers, public and private. Information can be disseminated via online programs, classroom teaching, careers advice, events such as open days and career markets, and simulation exercises focussing on career pathways and “resources generators” that allow access to, and sharing of career development resources and experiences of graduates during the transition period.

Governments have a variety of options to encourage such services. They can be made a regulatory requirement through legislation or government instructions; comprise a condition for licensing or funding schools and tertiary institutions; or be funded directly by governments in whole or in part. The options available to the Kingdom of Bahrain include a mix of these approaches.

In the first instance, a pilot program for a transitions service could be developed jointly between a leading institution (the University of Bahrain is an obvious candidate) and a government agency such as Tamkeen. The introduction of a transitions service via a pilot program would be a low risk approach allowing lessons to be learned on how best to introduce such a service in Bahrain before any regulatory or funding program were developed more generally.

Other possible elements of a transition program might include assistance for students to experience work while they continue to study at university. Internships – short placements with employers that allow students to experience possible future work options – are a common feature of transitional programs in many countries. They provide on-the-job experience as a complement to university study. A remuneration component for students is necessary (to be paid possibly in part by employers and the Government of Bahrain) to trigger interest in such a program. The internship program could focus on sectors that make up Bahrain’s infrastructure and service base, including the public administration, business services, ICT and telecommunications sectors, if it were designed to support the development of these services within an overall economic development plan.



A complementary approach to development of a transitions program would be for better information about future skills needs to be provided to school-leaving students through significant expansion in career guidance and counselling at the schools level. As with other education reforms, this is a broader question than can be dealt with in this project, but would be a desirable further linkage to be pursued. It reflects a strong strand of commentary in both surveys and in discussions with employers that school leavers had unrealistic expectations about their future work prospects.

The findings of this project in themselves would be a starting point for dissemination of information about emerging skills gaps. Tamkeen would be ideally placed to lead in provision of public information to raise awareness of national, regional and international trends in labour markets, skills gaps and areas of over and under supply, areas in which demand for labour will be increasing and those in decline, and sectors to be given high priority in government economic development plans.

3.5 Short courses and programs

Tamkeen has already committed to strengthening the strategic alignment between the skills gaps that currently exist by introducing a significant number of short courses that will develop Bahrain’s human capital and effectively support the growth and development of the national work force.

The results of the employer surveys show that the most common skills gap identified by employers was communication skills, followed by customer skills. These foundational skills are established through schooling and further education, but can be reinforced by targeted training initiatives. Tamkeen’s program of courses could readily meet the need identified in the employer surveys through encouraging a greater emphasis on communications and customer relations skills.

3.6 National internship and scholarship programs

The Government of Bahrain should consider a program for students to experience work while they continue to study at university. Internships would run for a short number of months and would provide on-the-job experience as a complement to university study. The internship program would focus on sectors that make up Bahrain’s string infrastructure and service base, including the public administration, business services, ICT and telecommunications sectors. A remuneration component for students is necessary (to be paid possibly in part by employers and the Government of Bahrain) to trigger interest in such a program.

Further, the Government could enhance the current scholarship program available through a program (perhaps bonded) for students to train either within Bahrain or Internationally that would be targeted to sectors that are a priority for the Government of Bahrain.



3.7 Investment in joint initiatives

The Government of Bahrain should invest in joint initiatives with international universities. For example, a ‘train the trainer’ type of program that utilises external expertise at an existing facility (such as BTI or the Polytechnic) to train a group of employees. From this group a small number may then become trainers in this field themselves, with an aim to grow expertise and teaching skills in particular area over time. For example, joint initiatives could focus on trades such as plumbing and electrics.



Chapter 4

Focus area 1 — manufacturing

4.1 Manufacturing overview

The skills gaps in Bahrain’s manufacturing sector were highlighted in Report 2 and fall into two main areas:

• technical skills — employers reported a shortage of personnel with the

necessary skills to operate and maintain machinery and manufacturing instruments — a shortage that is likely to be exacerbated by the projected expansion of the manufacturing workforce

• higher-level manufacturing skills (such as engineering) — while there was a

considerable divergence of views among manufacturing organisations about whether there was a significant gap in these skills that needed to be addressed, many of the stakeholders consulted were concerned that a lack of highly- skilled workers would hinder the competitiveness of Bahraini industry and potentially force companies offshore.

Results from the employer survey and the current skills gaps identified in the labour market analysis have been used to determine an approximate number of specific occupations required in 2012, including the future need for approximately 31 000 positions:

• 14 000 manufacturing trades

• 2000 engineers and technicians

• 1600 managers

• 1400 services and sales staff

• 1100 administrative staff.

More detail on these gaps, including occupational classifications within the broad categories, is outlined in Report 2 of this study.

Qualifications gaps in the manufacturing sector are forecasted for employees who have completed secondary school, followed by primary and preparatory school. The employee and employer surveys, however, suggest that there may be greater demand for qualifications at the Certificate/Diploma and Bachelor degree levels.

4.2 Future labour market

The labour market analysis in Report 2 revealed that the manufacturing sector workforce was equal to 63 436 in 2007, or 12.6 per cent of Bahrain’s total labour force. There were more non-Bahraini employees than Bahraini employees (by a factor of three to one), and significantly more male workers than female workers (by a factor of nine to one).



Assuming the status quo, the manufacturing sector workforce is predicted to equal around 98 500 in 2012 — an increase of 55.3 per cent. Given the current and expected economic climate, however, an estimate relying solely on the status quo is not considered reasonable for forecasting. Consequently, the revised workforce projections for the manufacturing sector, include the following assumptions:

• forecasting the Bahraini labour force using an autoregressive 1 period model

• a decrease in the non-Bahraini labour force in 2008 of 2 per cent and a forecast

using the historical data plus this shock in the labour market using an 3

autoregressive 1 period model.

On the basis of these assumptions, it is expected that the total manufacturing workforce will reach around 85 000 employees in 2012 (see Figure 4.1). This represents a 33.8 per cent increase in the labour market compared to 2007, a significant decrease from the status quo prediction noted above.

Employment for Bahrainis is expected to decrease by 14 per cent compared to an increase in employment by 50 per cent for non-Bahrainis. However, these results assume that no additional mechanisms are introduced to improve the participation of Bahrainis in the manufacturing sector.

Figure 4.1 FORECAST LABOUR MARKET — MANUFACTURING SECTOR TO 2012

Source: (Allen Consulting Group and Eidos); (General Organisation for Social Insurance (GOSI) 2008).

3 A 2 per cent decrease in the non-Bahraini labour market was selected as a conservative assumption based on recent International Monetary Fund (IMF) and International Labour Organisation (ILO) projections of growth in Middle Eastern Gross Domestic Product (GDP) (as a proxy for the labour market) considering the current economic climate. The IMF highlights a decrease in GDP growth in the Middle East from 6.1 per cent in 2008 to 3.9 per cent in 2009 and the ILO identifies a decrease in GDP growth in the Middle East from 6.0 per cent in 2008 to 5.1 per cent in 2009. On this basis, a 2 per cent reduction in the labour market appears to be a conservative estimate of the flow on impact from a decrease in market growth to the labour market International Labour Organization. (2007). "Key indicators of the Labour Market Program - Chapter 7." Retrieved 13 August 2008, from http://www.ilo.org/public/english/employment/strat/kilm/download/kilm18.pdf. , International Monetary Fund (2009). World Economic Outlook Update. January 2009. Washington DC.

http://www.ilo.org/public/english/employment/strat/kilm/download/kilm18.pdf



4.3 Proposed solutions

Although the manufacturing sector has grown and is expected to continue to do so in the future, demand for technical and high-level manufacturing skills already outstrips supply. The prospect for Bahrain’s manufacturing sector is thus dependent on the country’s ability to attract and train a workforce that will be able to fill these positions, drawing in particular on young Bahrainis.

The proposed solutions to address skills gaps in the manufacturing sector are detailed in the sections below.

4.4 Short-term proposed solutions (2009-2012)

There are three short-term proposed solutions to address skills gaps in the manufacturing sector that government and industry should consider. These are:

• a joint initiatives project focusing on manufacturing trades, for up to 5000

students

• a regular stocktake of manufacturing skills needs and education provider capacity

• assisting manufacturing companies to hire non-Bahrainis to fill skills gaps in

the short-term.

Each of these proposed solutions is discussed in turn below.

Proposed solution 1: Joint initiative focusing on manufacturing trades

The Government of Bahrain and key manufacturing companies should adopt the joint initiative concept outlined in Chapter 3 to address skills gaps in the manufacturing sector — particularly with regard to technical skills. This solution would involve an education provider (most likely BTI or the Polytechnic) commissioning external expertise to provide training solutions that they would otherwise by unable to provide. The benefit of this arrangement is that it:

• allows the education provider to expand its capacity in a cost-effective and

timely manner (benefiting both the provider and the manufacturing sector, which is able to utilise the new capacity)

• exposes the education provider to broader ideas, knowledge and techniques,

allowing the provider to expand its capacity indigenously sometime in the future.

It is recommended that a joint initiative should focus on manufacturing trades (particularly those relevant to the aluminium, shipbuilding and textile industries) and seek to provide education and training solutions for up to 5000 students. The most likely source of external expertise would be the vocational systems in developed countries (primarily in Europe, North America and Australasia).



Method

To establish this concept, a designated vocational education provider (either BTI or the Polytechnic) would first need to identify ‘gaps’ in its current training capacity, and then align these gaps with pressing skills needs of the manufacturing sector. The stocktake outlined above aims to provide a useful informational base for this process.

Second, the provider would need to identify potential sources of external expertise. This could be achieved through pre-existing networks and informal contacts. Alternatively, the provider could establish contact with government bodies responsible for vocational education providers in other countries. To choose external expertise, the provider would need to take into account:

• the quality of the services on offer

• their reputation for working in partnership with other providers

• their price.

Once the source of external expertise has been chosen and a contract has been entered into, the provider needs to advertise its joint initiative and develop a training program that will maximise the number of possible attendees. This may involve:

• a mixture of day and night classes

• on-site training options

• intensive short courses (for example, a semester’s worth of training taught over

a two week period).

Responsibility

BTI and the Polytechnic should have primary responsibility for establishing joint initiatives with external sources of expertise. Possible measures of performance include:

• teaching hours provided by the external experts relative to the cost of contract

• number of attending students

• number of attending students that have achieved a satisfactory result.

Cost

It is difficult to estimate the costs associated with this solution, as these will be determined by:

• the identity of the joint initiative partner

• the length and type of training services provided under the joint initiative.

These difficulties notwithstanding, we estimate the costs associated with this initiative are moderate.

Priority

This solution is a moderate priority as it will provide a relatively cost effective and timely means of bolstering the training capacity of BTI and/or the Polytechnic.



Proposed solution 2: Regular stocktake of skills needs and provider capacity

During consultations with stakeholders, concerns were raised about the responsiveness of education providers to meet the skills and training needs of manufacturing companies. This could be addressed by the Government of Bahrain (through Tamkeen) to undertake a regular stocktake of:

• the skills and training needs of the manufacturing sector

• the capacity of the education sector to provide training and education services

relevant to manufacturing.

Tamkeen would act as an intermediary between the manufacturing and education sectors, facilitating the distribution and transfer of information. This increased awareness may allow:

• manufacturers to exploit previously unknown services to meet their training

and skills needs

• education providers to increase student numbers by better aligning their services with the demands from industry.

Method

It is recommended that the stocktake be based on two surveys. The first of these would be an employer survey, similar to the UK National Employer Skills Survey (NESS) (see Box 4.1). This would seek to collect quantitative and qualitative data from manufacturing employers about the:

• satisfaction levels with the quality of Bahrain’s education providers (including

the quality of recent graduates)

• nature and extent of any skills problems faced by employers

• desired solutions to address identified skills problems.

The second survey should be sent to relevant Bahraini vocational and higher education providers (such as BTI and the University of Bahrain). It should seek to collect data about the courses they offered (including associated teaching staff and student numbers), and steps they have taken to address any skills problems identified in previous skills surveys.

Box 4.1 NATIONAL EMPLOYER SKILLS SURVEY

The NESS is a large-scale annual survey, undertaken by the United Kingdom’s Learning and Skills Council. It provides detailed information on the incidence, extent and nature of skills problems facing employers, in terms of both recruitment and skill gaps within their existing workforce. It also explores employers' activities and expenditure in relation to training. The most recent survey (2007) was undertaken by telephone with about 79 000 employers. It was followed by a supplementary survey undertaken with about 7000 employers that had funded or arranged training.

Source: (Learning and Skills Council 2009)



It is estimated that undertaking this task would take approximately six months, and would involve:

• reviewing overseas examples (such as the NESS)

• consulting with industry and education providers

• analysing results and making recommendations to influence relevant

decision-makers.

Box 4.2 provides a breakdown of the likely stages involved in undertaking a stocktake.

Box 4.2 INDICATIVE STAGES

• Notify education providers about imminent distribution of survey • Distribute survey relating to previous academic year • Remind education providers about survey • Education provider survey closes • Collate and analyse data from education provider survey • Notify manufacturing companies about imminent distribution of survey • Distribute employer survey • Remind manufacturing employers about survey • Employer survey closes • Collate and analyse data from employer survey • Draft and publish stocktake, including recommendations for improvem ent

Responsibility

Tamkeen should be responsible for developing and administering the survey. Manufacturing companies and education providers would be responsible for completing their respective surveys in a timely and accurate fashion.

We suggest that Tamkeen’s performance be measured by:

• the response rate to the employer and education provider surveys

• the completion rate of the employer and education provider surveys.

If after two surveys (four years) the response and completion rates of the surveys exhibit no signs of improvement, we recommend reviewing the future of this initiative.

Alternatively, an organisation such as the Bahrain Chamber of Commerce and Industry (BCCI) would also be well placed to undertake this responsibility.

Cost

The costs associated with this solution are low. We estimate that developing the employer and education provider surveys would cost the Government of Bahrain BD25 300. This includes:



• approximately BD16 800 to cover the wages of four staff for six months (assuming an average monthly wage of BD700 for public sector employees) (Labour Market Regulatory Authority 2007)

• approximately BD8500 to cover indirect costs associated with the functions of

the above staff – including use of facilities, ICT support and stationery use (we assume indirect costs are equivalent to 50 per cent of each salaried position).

Administering the stocktake is estimated to cost approximately BD37 700 per instance. This includes:

• approximately BD25 200 to cover the wages of four staff for nine months

(assuming an average monthly wage of BD700 for public sector employees) (Labour Market Regulatory Authority 2007)

• approximately BD12 500 to cover indirect costs associated with the functions

of the above staff — including use of facilities, ICT support and stationery use (we assume indirect costs are equivalent to 50 per cent of each salaried position).

Priority

Relative to other proposed solutions this solution is a low priority. It is an important undertaking, as it will provide an informational base from which improvements to the relationship between the education and manufacturing sectors will hopefully arise. In the short term, however, the Government of Bahrain would be better placed addressing the already-identified skills gaps through more direct measures (such as vocational apprenticeships).

Proposed solution 3: Assist manufacturing companies to hire skilled non- Bahrainis

No matter how quickly it acts or how much money it is prepared to spend, it will take time before the Government of Bahrain will be able to experience progress in reducing skills gaps in the manufacturing sector. As a consequence, the Government of Bahrain should seek to address manufacturing skills gaps in the immediate term by assisting manufactures to hire appropriately skilled personnel from overseas — concentrating primarily on personnel with high-level manufacturing skills, such as engineering.

This assistance should take the form of a payment to companies that would partially offset the costs associated with identifying and recruiting skilled personnel from overseas. Ideally, this payment would be paid on a per successful placement basis and would vary depending on the skill level of the person recruited. For example, an engineer with multiple post-graduate qualifications would attract a higher payment then a skilled metal fitter.

This program should have a fixed timeline (2012), to ensure it is only temporary and does not reduce the impact of other initiatives. Furthermore, the Government of Bahrain should require that all work contracts for non-Bahrainis hired under this scheme are standardised to ensure knowledge transfer at the end of employment. This could be undertaken through a mentoring program with Bahraini staff at participating organisations.



Method

To establish an assistance payment program, the Government of Bahrain will have to undertake three main tasks. First, it would need to develop a reporting mechanism to allow companies to claim the payment. As part of this, the Government of Bahrain will need to determine the nature and extent of evidence it would require from companies. We propose that companies would need to prove that:

• they have hired new personnel from overseas — for example, by providing

copies of passports and registrations with GOSI

• these employees have relevant and sufficient skills/qualifications (to help determine what level of payment is required) — for example, by providing copies of academic transcripts and contact details of previous employers.

A hardcopy form is likely be the most appropriate reporting mechanism, given that employers will have to submit the form with documentary evidence.

The second task is to establish an internal unit to process claims for payment. This unit would need clear guidelines about:

• determining whether companies have provided suitable levels of evidence

• authorising payment to compliant companies.

We propose that the assistance payment would only be processed at the end of each financial year. Consequently, the Government of Bahrain may be able to staff this internal unit by temporarily seconding personnel from other sections and/or by hiring new employees on short-term contracts (approximately three months).

The third task is to communicate the existence and requirements of the assistance payment program to manufacturing companies. This could include:

• a short advertising campaign

• direct contact with key manufacturing companies

• a series of information sessions to answer queries from industry.

Responsibility

The Government of Bahrain (with an agency as lead) should be responsible for developing and administering the assistance payment program. Manufacturing companies should be responsible for claiming the payment in an honest and timely manner. Possible measures of performance include:

• number of companies participating

• total amount of payments paid

• average processing time for each application.

Cost

The costs associated with this solution are low. We estimate that establishing an assistance payment program would cost the Government of Bahrain around BD27 000 comprising:



• approximately BD17 000 to cover the wages of four staff for six months (assuming an average monthly wage of BD700 for public sector employees) (Labour Market Regulatory Authority 2007)


of the above staff — including use of facilities, ICT support and stationery use (we assume indirect costs are equivalent to 50 per cent of each salaried position)

• approximately BD2000 to cover communication costs, including BD1000 to

inform manufacturing companies about the existence and details of the assistance payment program (primarily print and radio advertising) and BD1000 to conduct two information sessions (including room hire and publication of relevant materials).

Administering the payment program is estimated to cost around BD15—500 per year, including:

• approximately BD10 500 to cover the wages of five staff for three months



the above staff — including use of facilities, ICT support and stationery use (we assume indirect costs are equivalent to 50 per cent of each salaried position).

Priority

This solution is a moderate priority because sourcing skilled personnel from Bahrain is a preferred objective. However, companies will need to exploit the global labour market while they wait for other initiatives to have effect.

4.5 Long-term proposed solutions

Further to the short-term proposed solutions, there are three long-term proposed solutions to address skills gaps in the manufacturing sector that government and industry could consider. These include:

• a vocational apprenticeship program, focusing on technical skills

• a manufacturing careers exhibition (to improve perceptions of manufacturing

careers among younger Bahrainis)

• subsidising the payment of tuition fees for Bachelor of Engineering degrees.

Each of these proposed solutions is discussed in turn below.

Proposed solution 4: Vocational apprenticeships

The Government of Bahrain should utilise the national vocational apprenticeship program detailed in Chapter 3 to encourage participation and address skills gaps in the manufacturing sector — particularly the skills gap relating to technical skills. This solution would involve manufacturing companies providing students from BTI (and potentially the Polytechnic) with work experience and on-the-job training over a semester. The students in turn would earn credits to put towards their Diploma/Certificate.



The objective of this solution would be to enhance the technical skills of students enrolled in vocational training, as well as providing these students with greater awareness of the opportunities that exist in manufacturing.

To trigger student interest in undertaking apprenticeships, the Government of Bahrain could adopt one or both of the following options:

• include a remuneration component for participating students — jointly funded

by the Government of Bahrain and the relevant manufacturing company

• provide participating students with extra credits, so that the apprenticeship program is seen by students as a means of expediting their studies.

Method

To establish a vocational apprenticeship program, the Government of Bahrain would first need to encourage manufacturing companies to participate in the program and receive students. This could be achieved by:

• advertising the apprenticeship program in the national press — employers

would be asked to register their interest with Tamkeen

• directly contacting manufacturing companies (such as Alba) that are perceived as having the capacity and willingness to participate.

Second, BTI (and potentially the Polytechnic) would have to integrate the apprenticeship program into their systems and devise a means of recording:

• what companies are willing to receive students, how many students they are

willing to receive, and when (for example, for all semesters or only one)

• which students are willing to participate, and for which companies.

Third, BTI (and potentially the Polytechnic) would have to inform students about the existence of the apprenticeship program and fill the places that are available.

Table 4.1 outlines an indicative timeframe for running the apprenticeship program each year.

Table 4.1 INDICATIVE TIMEFRAME – VOCATIONAL APPRENTICES

Stage Period

Notify manufacturing companies of apprenticeship program — through advertising and direct contact.

Collect information from interested companies about how many students they are willing to receive and when.

Notify students about apprenticeship program. This would involve them enrolling in the program, if interested.

April May to June July to August

First semester placement. September to January

Second semester placement February to June



Responsibility

Responsibility for administering the vocational apprenticeship program (for manufacturing specifically) should reside with BTI (and potentially the Polytechnic). Suggested measures of performance include:

• numbers of participating companies and students

• the length of time it takes graduates of the program to find employment

• the extent to which graduates of the program secure employment in the

manufacturing sector.

To ensure transparency, these measures of performance should be published in an annual report.

Cost

The costs associated with this solution are low. We estimate that developing a vocational apprenticeship program to cover the manufacturing sector would cost around BD12 600. This includes:

• approximately BD8400 to cover the wages of four staff for three months



the above staff — including use of facilities, ICT support and stationery use (we assume indirect costs are equivalent to 50 per cent of each salaried position).

Administering the apprenticeship program would cost approximately BD26 800 per year. This includes:

• approximately BD16 800 to cover the wages of two staff (assuming an average

monthly wage of BD700 for public sector employees) (Labour Market Regulatory Authority 2007)


the above staff — including use of facilities, ICT support and stationery use (we assume indirect costs are equivalent to 50 per cent of each salaried position)

• approximately BD1500 to cover communication costs, including BD1000 to

inform manufacturing companies about the existence and details of the apprenticeship program (primarily print and radio advertising) and BD500 to inform students about the existence and details of the apprenticeship program (primarily pamphlets in both hardcopy and online formats).

Priority

This solution is a high priority for the Government of Bahrain. It will provide a swift and targeted means of reducing the skills gap in manufacturing relevant technical skills — the largest of the skills gaps identified in Report 2. A vocational apprenticeship program has the dual advantage of:

• enhancing the technical skills of participating vocational students



• increasing their exposure (and possible receptiveness) to the manufacturing sector.

Proposed solution 5: Manufacturing careers exhibition

Report 2 identified that many younger Bahrainis generally do not consider manufacturing as a viable and worthwhile career choice, which affects Bahraini participation in the manufacturing sector. The Government of Bahrain should seek to improve perceptions of a career in manufacturing among young Bahrainis for example by hosting an annual manufacturing careers exhibition.

The objectives of such an exhibition would be to highlight the:

• variety of career paths in the manufacturing sectors, ranging from technical

and scientific positions to management roles

• benefits associated with a career in manufacturing — not only focusing on remuneration, but also work/life balance issues and the opportunity for professional development

• importance of manufacturing to the future of the Bahraini economy — thus

imbuing manufacturing careers with a sense of purpose.

Method

In order to organise a manufacturing careers exhibition, the Government of Bahrain will need to undertake a range of organisational tasks such as those listed below:

• choosing a date for the exhibition — an ideal time would be during the middle

of the second semester of the academic year, allowing students to absorb the information provided by the careers exhibition and act on it in the next academic year, if required

• inviting manufacturing companies and education providers to set up

informational stalls at the exhibition — the Government of Bahrain may have to provide guidance about the type of information that organisations may want to include in their stalls

• putting together a program of speeches and presentations to complement the

stalls and guide the day’s activities — key-note speakers could be drawn from large manufacturing companies and education providers

• organise a suitable venue for hosting the exhibition

• advertise the exhibition amongst secondary school, vocational and university

students — such a campaign would likely involve television advertisements, as well as working closely with schools and higher education providers.

To maximise student attendance at the exhibition, the Government of Bahrain may want to organise visits from schools (such as through paying for buses to transport students to and from the exhibition) and to consider such incentives as giveaways and prizes.



Responsibility

Tamkeen will be responsible for hosting and organising the careers exhibition. Possible measures of Tamkeen’s performance include:

• numbers of stalls and attending students

• a survey of manufacturing company participants, seeking their views about the

value of the exhibition

• a survey of attending students, to test whether the exhibition had changed their perceptions of the manufacturing sector.

Cost

The costs associated with this solution are moderate. We estimate that organising a manufacturing careers exhibition would cost the Government of Bahrain around BD62 500. This includes:

• approximately BD21 000 to cover the wages of five staff for six months



of the above staff — including use of facilities, ICT support and stationery use (we assume indirect costs are equivalent to 50 per cent of each salaried position)

• approximately BD20 000 to hire a venue to host the exhibition (this is based on

an estimate of hiring 2500sqm of space at the Bahrain International Exhibition and Convention Centre)

• approximately BD11 000 to cover communication costs, including BD10 000

to inform students about the timing and purpose of the careers exhibition (primarily through a television advertising campaign) and BD1000 to supply schools and higher education providers with promotional materials relating to the exhibition.

Priority

This solution is a high priority as it addresses negative perceptions of manufacturing careers among younger Bahrainis is a key requirement to boosting long-term Bahraini participation in the manufacturing sector.

Proposed solution 6: Subsidising tuition fees for Bachelor of Engineering degrees

The Government of Bahrain should utilise a variant of the national scholarship program detailed in Chapter 3 to encourage participation and address skills gaps in the manufacturing sector — particularly regarding high-level manufacturing skills. This solution involves the Government of Bahrain subsidising two thirds of the tuition fees of all students enrolled in a Bachelor of Engineering degree at the University of Bahrain. This would hopefully act as an incentive for Bahrainis to undertake engineering degrees and increase the numbers of engineers from which manufacturing companies could draw.



It is recommended that the Government of Bahrain subsidise Bachelor of Engineering degrees for a pilot period of three years. After this, the government should review the scheme and determine whether it should continue (either in its current form or modified) or be cancelled.

Method

To establish this solution, the Government of Bahrain and UB will need to establish a mutually-acceptable system of reporting student enrolment numbers in engineering degrees and transferring funds to cover tuition fees. We propose that UB could compile a list of engineering students and their relevant student loads four weeks after the start of each semester. The government should then transfer the relevant amount of funding to cover two thirds of the tuition fees. We recommend that an independent audit be undertaken at the end of each financial year to assess the number of students paid for, whether they continued their studies, and if additional funding is required.

Responsibility

The Government of Bahrain should be responsible for providing funding to cover the costs of two thirds of the tuition fees for all students enrolled in a Bachelor of Engineering degree. UB would be responsible for accurately reporting its student enrolment numbers to the Government. Possible measures of performance include:

• the number of Bachelor of Engineering enrolees (before and during the subsidy

scheme)

• the total value of the subsidy provided by the Government.

Cost

The costs associated with this solution are high. It is estimated that developing a subsidy scheme for Bachelor of Engineering degrees will cost the Government of Bahrain around BD6300. This includes:

• approximately BD4200 to cover the wages of two staff for three months



the above staff – including use of facilities, ICT support and stationery use (we assume indirect costs are equivalent to 50 per cent of each salaried position).

We estimate that subsidising Bachelor of Engineering degrees by two-thirds over the three years from 2013 to 2016 will cost the Government of Bahrain between approximately BD340 000 and BD370 000. The lower estimate assumes:

• annual tuition fees of BD300 per student (assuming a cost of BD8 per credit)

• enrolment numbers of 570 (the average number of enrolled engineering

students at UB over the past six years, as indicated in Report 2) over the three years of the scheme. This solution would, however, expected to see an outcome of a greater number of students and so this is a conservative estimate of cost.

Conversely, the higher estimate assumes:

• annual tuition fees of BD300 per student (assuming a cost of BD8 per credit)



• that the subsidy will act as an incentive and increase student numbers by 7.5 per cent each year — thus 570 in the first year, 615 in the second and 660 in the third.

Priority

This solution is a medium priority as it will provide a relatively straightforward means of providing incentives to young Bahrainis to undertake engineering degrees — an outcome which, in turn, will boost the recruitment pool for manufacturing companies.

4.6 Summary

Table 4.2 summarises the possible solutions outlined above that make up an action plan to address skills gaps in Bahrain’s manufacturing sector (2009-2016).

Table 4.2

ACTION PLAN — MANUFACTURING

Possible solution Method Responsibility Cost Priority Short-term proposed solutions: Joint initiatives focusing on manufacturing trades

Identify training capacity gaps and skills needs of industry Identify potential partner Develop training solutions

Bahrain Training Institute Bahrain Polytechnic

Moderate Moderate

Stocktake of manufacturing skills needs and education provider capacity

Develop surveys of manufacturing skills needs and provider capacity Distribute surveys Analyse and disseminate results

Tamkeen Manufacturing companies Education institutes

Low Low

Assist manufacturing companies to hire skilled non-Bahrainis

Develop reporting and compliance mechanism Establish internal processing unit Inform industry about program

Government of Bahrain

Low Moderate

Long-term proposed solutions: Vocational apprenticeship program

Identify participating companies Integrate program into curriculum Develop system to record participating companies and students Inform students about program

Bahrain Training Institute Bahrain Polytechnic (potentially)

Low High

Manufacturing careers exhibition

Choose date and venue Invite companies and education providers to participate Develop program of speakers and events Advertise

Tamkeen Moderate High

Subsidise Bachelor of Develop reporting, payment and Government of High Moderate Engineering degrees at auditing system Bahrain University of Bahrain University of Bahrain




Chapter 5

Focus area 2 — health

5.1 Health overview

Report 2 highlighted the skills gap in Bahrain’s health sector, which fall into three main areas:

• health care specialists — health organisations have reported the shortage of

specific specialists and the general difficulties in filling positions. Projections of the health sector workforce show that these shortages will persist for Bahraini national employees at least for the next three years (specifically for employees with a bachelor degree, equal to 900 jobs).

• health management and coordination (including human resources and health

workforce planning) — skills gaps cited by the WHO in 2005, these skills will be crucial to continue to develop to maintain the current performance of the health system for Bahrain’s population. The Ministry of Health also highlighted its own weaknesses in human resources management in 2002

• administration — a large number of employers identified this skills gap.

Administration training was the one aspect of training where the number of organisations with the current capacity to provide this training in-house fell short of the number of organisations that highly prioritise this type of training.

Results from employer survey and the current skills gaps identified in the labour market analysis were used to determine an approximate number of specific occupations required in 2012, including the future need for:

• 400 health professionals

• 500 managers

• 1500 other health workers

More detail on these gaps is outlined in Report 2 of this study.

Further, qualification gaps projections for 2012 confirm the issue apparent from current qualifications data. By 2012, it has been projected that there will be a shortage of several types of qualifications in the industry. There will be a shortage of Bahraini staff with Diplomas, secondary education and at the PhD level. Non-Bahrainis with Bachelor degrees, Diplomas, secondary education, high diplomas, masters and PhDs are expected to fall short of demand.


The labour market analysis in Report 2 identified that in 2007, the health sector labour market (private and public) was equal to 9600 in 2007. There were more non-Bahraini employees than Bahraini employees in the private sector, but in the public sector, the number of Bahraini employees was significantly greater than non- Bahraini employees.



Assuming the status quo, the labour market is predicted to equal 11 300 by 2012. However, given the current and expected economic climate and the extent to which health infrastructure will increase in the near future, an estimate using the status quo alone is not considered reasonable for forecasting. Therefore, a revised scenario for the health sector has been predicted to 2012, including the following assumptions:

• the new King Hamad Hospital will require additional labour to the status quo.

This additional labour is equal to 3.9 staff per bed minimum for medical services (based on current services at the Salmaniya Hospital). With 312 new beds, this will equal 1200 staff in addition to the current labour market (Health Information Directorate 2008)

• on the above estimation, the forecast labour force should follow a linear trend

to 2012 with an increase to the total labour market pool by 15 per cent in 2010 for public sector employment and a forecast using the historical data plus this shock in the labour market using the existing linear trend to forecast 2011 and 2012 estimates (see Chapter 4)

• with an expected decline in growth in tourism (see Chapter 6), health tourism

is expected to remain an objective for growth, but may not flourish before 2012 — no adjustment to the forecast labour market required.

On the basis of these assumption, it is expected that the total health workforce (public and private) will reach 12 200 by 2012 (a 27 per cent increase compared from 2008). Employment for total non-Bahrainis will grow by 41 per cent compared with 18 per cent for Bahraini nationals. From 2008 to 2012, the public sector is projected to grow by 22 per cent whereas the private sector is projected to grow by 44 per cent in this period.

Figure 5.1

FORECAST LABOUR MARKET — HEALTH SECTOR TO 2012

Source: (Allen Consulting Group and Eidos); (Civil Service Bureau (CSB) 2008); (General Organisation for Social Insurance (GOSI) 2008).

The health sector has strong links with the tourism and hospitality sector (through health tourism), but also has secondary links with all other economic sectors because the participation of the labour force relies on employees with a strong health status and access to health care services to aid their ability to participate in the labour market.




A number of potential solutions should be utilised to address skills gaps in Bahrain’s health sector. Although the health workforce has grown and will continue to do so in the future, demand for health specialists, which is also growing, already outstrips supply. The future of Bahrain’s health sector will be dependant on the country’s ability to attract and, importantly, train a future medical workforce that will be able to fill these positions.

Each of these categories and the proposed solutions for consideration are detailed in the sections below.

5.4 Short-term proposed solutions (2009 to 2012)

There are four short-term proposed solutions to address skills gaps that should be considered in the health sector:

• expand the private sector to maintain high quality health care

• expand existing training facilities to enhance the health workforce

• fund bonded scholarships

• target young female Bahrainis.

Each of these proposed solutions is discussed below.

Proposed solution 1: Expand private sector to maintain high quality health care

A key health sector goal is to expand the future private sector in a sustainable manner that maintains a high quality of health care. In the short term, Bahrain could continue to attract foreign health specialists to work in Bahrain’s private sector to relieve current shortages.

Method

Under this solution, foreign health specialists should be targeted for health tourism projects as a means of growing the private health sector. Private health organisations will undertake the recruitment of foreign medical specialists. However, the government can assist in providing an incentive for foreign doctors while they are working in Bahrain.

In order to attract medical specialists from overseas to Bahrain on short-term contract, the Government of Bahrain could implement a continuing professional development program, utilising international module-based training programs and providing international speakers to conduct seminars as a means of providing foreign doctors with an incentive to provide health services in Bahrain temporarily. Further, the government should fund a marketing campaign to highlight the benefits of Bahrain as a ‘stop-over’ in their career development. The focus of this marketing campaign would be outside the GCC States, for example, in India and Europe.

This solution would address the key skills gap in the health sector — health care specialists and would assist in bridging the gap for health professionals (expected to be equal to 850 employees) by 2012.



Although outside the scope of this project, private health organisations may need to address wage gaps with the public sector (especially for nurses) to attract a greater share of the medical workforce to work in the private sector.

Responsibility

Private health oragnisations would be responsible for recruiting foreign medical specialists in the short-term. However, this recruitment process would be assisted by the Government of Bahrain, through eased visa requirements for this particular group of non-Bahraini employees.

Further, the Government of Bahrain would be responsible for a continuing progressional development program and marketing campaign to attract foreign medical specialists to Bahrain on a short-term working arrangement.

Cost

The costs associated with this solution are low as the majority of the cost of recruitment, travel and per diem expenses lies with private health organisations.

The cost to the government will be minimal in terms of easing the number of visa requirements for foreign health specialists. However, the government would incur a cost through the associated marketing campaign. The cost to government would total about BD40 000, but could fluctuate depending on the extent of the international marketing campaign.

Priority

This proposed solution is a moderate priority given the need for medical specialists in the short-term and the time that it takes to train Bahrainis in the skills required. Without this proposed solution there may be an impact on the overall health status of Bahrainis as demand for specialist services may move further away from the available supply. However, given this proposed solution does not focus on directly improving the skills of Bahrainis in the future, it should not hold as high priority over some of the other solutions proposed for the health sector.

Proposed solution 2: Expand existing training facilities to enhance the health workforce

Current training facilities and programs should be expanded to enhance Bahrain’s status as a health education provider and attract future students to study in Bahrain. There are two key tasks that should be considered in the context of expanding training facilities in the health sector:

• train more Bahraini nurses

• provide training in different types of nursing specialities.



Method

Firstly, the capacity within the College of Health Sciences and the RCSI could be expanded for nursing graduates to meet the needs required in 2012 and beyond. This proposed solution would see an addition 280 nurses trained between 2009 and 2012 at these two education institutes (33 per cent of the gap in health professional expected in 2012). The places would be split with three quarters of places at the College of Health Sciences and one third of places at the RSCI. In 2007, there were approximately 730 nurses studying at the two education institutes. This solution would see a 38 per cent increase in training participants by 2012 (Health Information Directorate 2008).

As a second task, leveraging on the increased number of nursing graduates, tiered nursing training options (such as nurse practitioners, nursing aids, and registered nurses) could be considered to alleviate future primary health care health service demand. These training options could be introduced into the existing coursework available to nurses at the College of Health Sciences and the RSCI, or could be introduced as additional short courses (perhaps held in the evenings or at other suitable times) for trained nurses to improve their skills. This proposed solution would have a direct impact on the structure of the future health workforce, as nurse practitioners could be used to alleviate some of the work undertaken presently by general practitioners, having a positive impact on future primary care service provision overall.

Responsibility

Education institutes, in particular, the College of Health Sciences and the RCSI would be responsible for providing the additional courses in nursing and nursing specialities. However, these additional places will be provided in agreement with the Government of Bahrain (in particular, the Ministry of Health and Ministry of Education to determine and appropriate curriculum).

Cost

The costs associated with this proposed solution are high. The government would provide funding for 280 nursing places between 2009 and 2012. The average cost per student at the College of Health Sciences in 2007 was around BD650, therefore government funding (mainly through the Ministry of Health) for 280 nursing places would be equal to around BD182 000 for each year or study (Health Information Directorate 2008). It is assumed that the number of places would increase disproportionately in 2011 and 2012, with a smaller number of places in the first two years.

Priority

This proposed solution is a high priority given the positive impact that an additional 280 nursing places will have on the Bahraini health workforce in the short-term. Nursing was a skill that was highlighted as medical speciality skills gap by a number of stakeholders, including respondents to the employer survey. Further, a change in the variety of nursing specialities available in Bahrain would have a direct impact on the structure of the future health workforce, as nurse practitioners would have a positive impact on future primary care service provision overall.



Proposed solution 3: Fund bonded scholarships

The Government of Bahrain could also utilise the national scholarship program detailed in Chapter 3 to encourage participation and address skills gaps in the health sector. This solution would include the Ministry of Health funding 25 bonded scholarships for students to undertake their studies overseas with an obligation to return to Bahrain and provide health services for three years following completion of their training. Scholarships would be limited to medical specialities to address this identified skills gap.

Method

Initially, the government will need to choose a destination (or destinations) for students participating in the bonded scholarship program. Given the health sector internationally draws on a vast number of world-class education institutes to provide medical speciality training, a small number of universities could be approached to be part of the bonded scholarship program (for example, universities in the United Kingdom, United States and across Western Europe).

Prior to this step, the government would consider eligibility criteria and conditions for the scholarships. For example:

• develop eligibility criteria — recognised undergraduate degree in medicine,

allied health, other medical speciality, or other related field with a letter of intent.

• develop conditions — work for 3 years in the Bahrain health sector on

completion of study overseas. Students will be required to apply for jobs upon receiving their offer for a scholarship. Students should be able to seek future bonded employment in either the public or private sector.

The Government of Bahrain would then make contact with universities to establish relations as part of the scholarship program prior to seeking student involvement.

Responsibility

The scholarships will be funded through the Ministry of Health, but could be coordinated and administered through another organisation if the Government of Bahrain considered this more appropriate. An additional role is to ensure that participants are adhering to the work conditions following completion of their degree.

Cost

The costs associated with this proposed solution are high. The Government of Bahrain would initially fund 25 scholarships per year, which include both education and living expenses. Tuition fees equate to BD10 000 per student as medical degrees generally attract higher university fees (for example, the Medical University of Bahrain attracts fees of around US$35 000 per year for a Bachelor of Science Medicine). Living expenses would be BD4500 per student.

In addition, the cost to the Government of Bahrain of one full time program coordinator would be around BD9000 per year. The total cost of this proposed solution to the Government of Bahrain would be around BD370 000 per year.



Priority

This proposed solution is a moderate priority as the cost of the solution is high relative to the time required to see the impact on the health labour market (which would be at least 6 years until the first round of students graduate and return to Bahrain). However, in time, the merit of a bonded scholarship program will result in increase Bahraini medical specialist participation.

Proposed solution 4: Encourage young female Bahrainis

A final short-term solution to consider is to encourage young Bahraini females to participate in the health sector, addressing an opportunity to draw on this growing pool of educated, yet unemployed Bahraini women. Although this solution would focus on public awareness, there is also an opportunity to encourage employers to provide alternative training and employment options (such as part-time study and employment, evening classes, and subsidised child care) to increase the attractiveness of study and labour participation in the health sector.

Method

There are two tasks that would be completed to encourage young female Bahrainis to participate in the health labour market. Firstly, a wide-ranging public awareness campaign would be undertaken to promote the benefits of the health workforce to young Bahraini women. Some particulars of the public awareness campaign would be:

• target Bahraini women who are in their final year of study (university,

vocational and secondary)

• target Bahraini women who completed their studies some time ago, but have not been participating in the labour market

• highlight the benefits of the health workforce to young women (for example,

career development and progression, ‘new’ flexible working arrangements, working in a sector that is highly Bahrainised)

• use television and print media to deliver the message

• the public awareness campaign would run for a pilot period of 12 months,

including the design and delivery of public awareness material.

Secondly, a series of information workshops would be conducted with health sector employers and education institutes to promote flexible working/studying approaches that would increase the attractiveness of study and labour participation for young Bahraini women in the health sector. Particulars of the information sessions would be:

• target employers and education institutes that have a high level of female

employment, or show potential to fill future labour demand with female employees/students

• hold 2 hour information workshops that are run like discussion groups with

key stakeholders to highlight the benefits of flexible working arrangements for women (including part-time work/study, evening classes and child care subsidies)



• highlight the impact of increased female participation in the health sector on the overall success to the sector in the future, including the contribution of the sector to economic growth and growth in other related economic sectors (such as tourism and hospitality)

• up to 15 information workshops would be held in the pilot phase of 12 months.

The performance of this solution can be measured through:

• growth in female enrolment into health related courses in the semester following the pilot phase (relative to previous periods)

• growth in female enrolment into health related courses and into the health

workforce that have not participated in the labour market in the previous 2 years

• number of female attending students that have achieved a satisfactory result

• an increase in the number of organisations that implement flexible work/study

arrangements that directly impact on the participation of women in their organisation.

Responsibility

Tamkeen would be responsible for the public awareness campaign in conjunction with the Ministry of Health. Further, Tamkeen would be responsible for running information workshops with health sector employers and education institutes to promote flexible working/studying approaches that would increase the attractiveness of study and labour participation for young Bahraini women in the health sector.

Cost

The costs associated with this proposed solution are moderate. The cost of the public awareness campaign and information workshops is estimated to equal BD50 000. This cost includes:

• approximately BD8400 to fund the wages of 2 full time staff for six months



the above staff – including use of facilities, ICT support and stationery use (we assume indirect costs are equivalent to 50 per cent of each salaried position)

• approximately BD37 000 to cover communication costs, primarily through a

television advertising campaign, but also through publicity at universities and vocational training providers.

Priority

This proposed solution is a high priority as young Bahraini women are one of the largest single groups that complete university or vocational training but then do not follow through with participation in the labour market. Encouraging young Bahraini females to enter the health workforce would be a major step in improving the stability of the future Bahrain labour market and utilising the skills already learned by this population group through increased labour participation.



5.5 Long-term proposed solutions (2012 to 2016)

Further to the short-term solutions to address skills gaps, additional long-term proposed solutions complement the solutions presented above. Key long-term proposed solutions include to:

• further develop medical specialities

• provide short courses in health management and coordination.


Proposed solution 5: Further develop medical specialities

Drawing on the progress made in Solution 2 (to 2012) to develop Bahraini capabilities in medical specialties (specifically nursing), further development could be considered for other medical specialities. This further development could include the introduction of a new medical speciality school with an international affiliation and utilising existing medical schools (such as the Royal College of Surgeons Ireland) to provide courses on other health specialities, such as obstetrics, cardiology, occupational therapy and pharmacy.

Method

There are four tasks required to achieve this solution. Firstly, a health-specific needs analysis should be conducted to determine the exact medical specialities that are least meeting demand. The Skills Gaps Research Study has identified specialists in obstetrics, cardiology, occupational therapy and pharmacy do not meet current levels of demand. However, there may be others that are as important as those identified. This needs analysis would focus on occupations rather than ‘skills’ as such and could be undertaken through a survey of health service providers and users combined with utilising current health service data provide by the Health Information Directorate.

Secondly, once a full set of medical speciality needs has been finalised, a small number of medical specialities would be selected in agreement with the Ministry of Health and other government agencies for further skills development. These areas, likely to include obstetrics and pharmacy at the very least, will become a set of focus occupations for medical specialities.

Thirdly, for these medical specialists, new courses in Bahrain’s existing education infrastructure could be introduced, including affiliations with international medical schools (which have assisted in training Bahrainis in the health sector in the past). Up to 75 places for training in these specialities would be provided through existing education institutus, likely to include the College of Health Sciences and the RCSI).

Finally, new international relationships will be developed to increase Bahrain’s capacity to provide world standard education and create an attractive environment within which Bahrainis want to be employed. The Government of Bahrain should provide an incentive for one international university to provide up to 75 medical speciality places in Bahrain. In the timeframe of 2013 to 2016 it is likely that only a small number of graduates will be placed, as the commencement of such infrastructure can be slow to start.



Responsibility

Education institutions would be responsible for providing the additional medical speciality places. However, the Government of Bahrain would be responsible for creating links with an international university to provide services and would be responsible for providing an incentive to one university develop infrastructure (both physical and teaching) in Bahrain.

Cost

The costs associated with this proposed solution are high. The government would provide funding for 150 medical specialist places between 2012 and 2016. The average cost per student at the College of Health Sciences in 2007 was around BD650. However, it is expected that the cost of a medical specialist place would be higher than this amount, assumed to be closer to BD1000. Therefore government funding (mainly through the Ministry of Health) for 150 medical specialist places would be equal to around BD150 000 for each year or study (Health Information Directorate 2008). It is assumed that the number of places would increase disproportionately in 2015 and 2016, with a smaller number of places in the first two years.

In addition, the Government of Bahrain should provide a subsidy to one international medical education institution to set up infrastructure (both physical and teaching) in Bahrain — similar to the infrastructure and services set up by the RCSI in 2004. A grant of up to BD300 000 would be provided as an incentive to provide medical speciality education services in Bahrain.

The total cost for this solution is estimated to equal up to BD450 000 in 2013 (at a maximum) with an ongoing cost of up to BD150 000 per year to 2016.

Priority

This proposed solution is a high priority as many stakeholders identified health specialities as key skills gaps in the health sector. Although this solution comes at a high cost, new places in health specialities will provide training to meet a direct need in the health sector in the long-term and will better meet the demand for obstetrics, cardiology, occupational therapy and pharmacy in the future.

Proposed solution 6: Provide short courses in health management and coordination

In the short-term there has been a focus on expanding the capabilities of medical professionals, however in the long-term, once the Bahraini health workforce has addressed these specific and necessary skills gaps, the health sector should focus more on health management and coordination to better manage and plan health services.

Method

One proposed solution is to leverage on the short courses (at BTI and the Polytechnic) discussed in Chapter 3 and provide short courses to existing health sector administration workers and the potential (predominately female) health labour force in health management areas, including:

• human resources management

• health services planning



• project management.

Once the series of short courses has been selected (in agreement with education institutes, the Ministry of Health and Tamkeen), the provider will advertise and develop a training program that will maximise the number of possible attendees. This may involve:

• a mixture of day and night classes

• on-site training options

• intensive short courses (for example, a semester’s worth of training taught over

a two week period).

In addition, the Ministry of Health and other government agencies may pre-select existing staff that would attend the provided short courses as part of their continuing professional development, in line with future career progression in the health management field.

Responsibility

Education institutions would be responsible for providing new short courses in health management. The Government of Bahrain would be responsible for providing some financial assistance to contribute to the provision of such courses. Possible measures of performance include:

• teaching hours provided relative to the cost of contract

• number of attending students

• number of attending students that have achieved a satisfactory result.

Cost

It is difficult to estimate the costs associated with this solution, as these will be determined by the length and type of training services provided under this initiative. These difficulties notwithstanding, we estimate the costs associated with this initiative are moderate.

Priority

This proposed solution is a high priority, as short courses will provide a relatively cost effective and timely means of increasing access to health management training, which was identified as one of the three major skills gaps in the health sector.

5.6 Summary

Table 5.1 summarises the proposed solutions outlined above that make up an action plan to address skills gaps in Bahrain’s health sector (2009-2016).



Table 5.1 ACTION PLAN — HEALTH

Possible solution Method Responsibility Cost Priority

Short-term proposed solutions:

Expand the private sector to maintain quality health

Expand existing training facilities to enhance the health workforce

Fund bonded scholarships

Target young female Bahrainis

• Target private health sector and health

tourism • Implement a continuing professional

development program • Undertake a marketing campaign • Fund 280 more nursing places • Expand capacity for nursing within existing

education institutes • Leverage on increased number of nursing

graduates to introduce tiered nursing options to alleviate future primary care dem and

• Determine eligibility criteria and condit ions • Approach a small number of international

universities to participate • Seek student involvem ent • Design a compliance and monitoring

program • Target Bahraini women in their final year

of study • Target Bahraini women who com pleted

their studies some time ago and have not participated in the workforce

• Undertake a public awareness campaign • Undertake a series of information

workshops to health sector employers and education institutes on flexible work/study arrangements

• Evaluate the performance of the initiative through increase Bahraini female participation

• Private heath

organisations • Government of

Bahrain • Education

institutes • Government of

Bahrain • Ministry of Health • Tamkeen • Ministry of

Education • Tamkeen • Ministry of Health

• Low • Moderate • High • High • High • Moderate • Moderate • High

Long-term proposed solutions:

Further develop medical specialties

Provide short courses in health management and coordination

• Undertake a medical specialty needs

analysis • Select a small number of specialt ies to

concentrate • Fund new places in existing education

institutes • Provide an incentive for one international

education institute to provide medical speciality training services in Bahrain

• Select a series of short courses in health

management and coordination • Develop a training program and will

maximise attendees • Pre-select existing staff to increase their

skill base.

• Education


Bahrain • Education


Bahrain

• High • High • Moderate • High




Chapter 6

Focus area 3 — tourism and hospitality

6.1 Tourism and hospitality overview

The tourism and hospitality sector has skills gaps in two key areas as discerned from the findings of the labour market analysis, surveys and other reports. These are in:

• generic skills — which have stemmed from a lack of training provision

• soft skills — including motivation to work in the tourism and hospitality

sectors (especially for Bahraini employees) and to enhance this motivation, attracting skilled candidates to jobs within the sector.

Results from employer survey and the current skills gaps identified in the labour market analysis can be used to determine an approximate number of specific occupations required in 2012, including the future need for:

• 1800 other tourism workers

• 1700 services and sales workers

• 1000 managers

• 800 business professionals

• 650 administrative staff.


The shortage of training provision within the sector is multifaceted, affecting employees in specific job types and the skills of employees across the sector. Stakeholders indicated that specific examples of skills gaps were skills for human resource managers at hotels and the need for additional training for airport workers. They also indicated a shortage of food and beverage, kitchen, and housekeeping staff. On a more general level, stakeholders noted that a greater emphasis on ‘soft skills’ for employees was needed, such as communication, people and relationship skills. Employer survey participants noted that improvements were necessary for communication, customer service and work ethic skills for employees.

Evidence from the employer survey indicates that employers in the tourism and hospitality sector experienced difficulties in attracting good candidates and were dissatisfied with existing employees. Employers more broadly noted that recruitment was mainly achieved through already-established contacts such as family and friends or networking as well as through newspaper advertisements. A greater focus on human resources skills undertaking recruitment through public means (such as newspaper advertisements and employment websites) rather than through already established contacts may assist to address this problem. Employers reported higher levels of in-house training, particularly induction training and administration training.




In 2007, the tourism and hospitality sector employed 23 500 people, comprising 4.7 per cent of the labour force. Non-Bahraini males accounted for almost 80 per cent of all employees in the sector.

Assuming the status quo, the labour market was predicted to increase to 31 429 jobs by 2012. Although Bahrain’s growing luxury tourism infrastructure and development is potentially exposed to the deterioration in external economic conditions. As a result, an estimate using the status quo alone is not considered reasonable for forecasting. Therefore, a revised scenario for the tourism and hospitality sector has been predicted to 2012.



using the historical data plus this shock in the labour market using an autoregressive 1 period model (see Chapter 4).

On the basis of these assumptions, it is expected that the total tourism and hospitality workforce will reach around 30 000 employees in 2012 (see Figure 6.1). This represents a 28.0 per cent increase in the labour market compared to 2007, a decrease from the increase of 34 per cent in the status quo prediction noted above.

Employment for Bahrainis is expected to increase by 10 per cent compared to an increase in employment by 30 per cent for non-Bahrainis. However, these results assume that no additional mechanisms are introduced to improve the participation of Bahrainis in the tourism and hospitality sector.

Figure 6.1 FORECAST LABOUR MARKET — TOURISM AND HOSPITALITY SECTOR TO 2012


The tourism and hospitality sector is closely related to the construction sector, transport and logistics sector, and increasingly to the trade sector and health sector. The Bahrain International Airport, King Faud causeway, and Gulf Air are the country’s key transport infrastructure supporting the sector. The 45km Qatar-Bahrain Friendship Bridge will connect Bahrain and Saudi Arabia, linking the entire region. Key development projects include Durrat al-Bahrain (Pearl of Harbour), Salam Resort Bahrain, Amwaj Islands, and 15 new five-star hotels.



As part of its Business Friendly Bahrain campaign, Bahrain is aiming to position itself as a destination to host conferences, meetings and exhibitions, thereby attracting business visitors who are potential leisure visitors. These efforts should have a very positive impact on Bahrain’s trade sector. Further, the link between the tourism sector and health sector will strengthen as initiatives to promote health tourism in Bahrain are developed and implemented.


The Bahrain training system must ensure hospitality and tourism workers receive ongoing training and development and new entrants are equipped with the skills necessary to meet the high expectations of international visitors and premium establishments. Similar to other countries, improving perceptions of a career in the sector among Bahrainis is a major challenge; a challenge made difficult by the ongoing barriers to attractiveness i.e., low wages, social stigma, long working hours, and seasonal variations in demand for workers. These factors have led to a sector dominated by non-Bahraini male, part-time, and casual employees.

A number of potential solutions could be utilised to address skills gaps in Bahrain’s tourism and hospitality sector. Each of these categories and the possible solutions for consideration are detailed in the sections below.


There are five short-term proposed solutions to address skills gaps that could be considered in the tourism and hospitality sector:

• encourage Bahraini participation in tourism and hospitality sector

• develop a cultural tourism short course

• develop an e-tourism short course

• review Bahrain’s health tourism workforce

• adopt strategies to improve the generic skills of new entrants and existing

employees

Proposed solution 1: Awareness raising of the sector to Bahraini workers

As stated in Report 2, Bahrain’s tourism and hospitality sector is experiencing many workforce challenges that are common to tourism and hospitality sectors and services industries in other countries. Firstly, attracting and retaining a sufficient supply of suitably trained employees, and particularly in Bahrain’s case, providing employees with the highest standards of training to meet the expectations of international visitors and premium establishments. Secondly, changing the perception among the Bahraini population that jobs in the sector are not desirable.

Also important is increasing employer awareness that improved staff skills developed through training have the potential to increase their competitive advantage, increase productivity, and raise levels of customer satisfaction, which can lead to additional business through word-of-mouth advertising and increased amounts of repeat business (Freeland, 2000).



Method

The Bahrain Tourism Authority in partnership with industry, training providers, and employee representatives should develop, implement and evaluate a 12-month communication strategy to raise awareness of education and training options and career pathways in the sector.

The communication strategy would begin with a research component involving:

• an evaluation of the impact of any previous campaigns

• an analysis of the awareness of Bahrainis about careers in the sector; the

characteristics of those Bahrainis who regard themselves as having a successful career in the sector; and any country-specific factors that are influencing the attraction and retention of Bahraini workers.

Findings of the research component will inform the objectives of the communication strategy and the choice of communication tools to achieve its objectives. Tools used could include information kit, advertisements, information sessions, career expo, dedicated tourism careers website, and hotline.

The communication strategy would target five main audiences:

• Target group 1: Potential employees (e.g., students) — promote tourism as

offering vocations and jobs of choice — exciting, flexible, mobile, challenging, changing, portable and global.

• Target group 2: Existing workers — promote benefits of ongoing training and

development, including opportunities for recognition of their existing skills.

• Target group 3: Employers (all sizes) — promote benefits of training employees, including access to any available incentives.

• Target group 4: Employers (small to medium size) — promote the benefits of

establishing a network to share and identify new training solutions.

• Target group 5: Young female Bahrainis — promote professional career opportunities in the sector, such as accountancy, human resources, and public relations.

• Target group 6: Career counsellors — promote education and training options,

career pathways, and career resources.

This strategy is timely given Tamkeen’s recent investment in 1870 training places in the hospitality sector.

Responsibility

The Bahrain Tourism Authority is a key outcome of the Tourism Masterplan. It will be responsible for licensing, destination marketing, skills training, and overall coordination of the sector (Oxford Business Group, 2008). The Authority is expected to receive Parliament’s approval in 2009 (Bahrain Gulfway to the Gulf 2008c). The Authority will work closely with key stakeholder groups (i.e. industry, training providers, and employee representatives) to develop, implement and evaluate the communication strategy.



Evaluation technique (dependent on strategies used):

• hits to key websites (e.g., strategy site, training provider sites)

• number of hotline calls

• course applications, enrolments and completions

• increase in employer-funded training

• feedback from employers about the impact of training on worker performance and productivity (12 months after communication strategy)

Cost

The cost of the development and evaluation of the communication strategy (including the research component) is expected to be low to medium. The major cost is the implementation of the strategy which could be medium to high, depending on the communication tools selected.

The Bahrain Tourism Authority, industry, and training providers should cover the cost of the communication strategy.

Priority

The priority of this solution is high.

Without any actions to change the perceptions of Bahrainis about working in the sector and to encourage greater investment by employers and individuals in training, the country will continue to rely heavily on non-Bahrainis to fill jobs. Current forecasts indicate a 30 per cent increase in employment of non-Bahrainis compared to a 10 per cent increase in employment of Bahrainis by 2012. These estimates include demand for an extra 2000 managers, positions requiring higher levels of knowledge and skills. Non-Bahrainis will fill the majority of these positions if the issues of attraction and retention of Bahraini employees are not addressed.

Proposed solution 2: Develop a cultural tourism short course

Like many countries, Bahrain is seeking to develop tangible and intangible cultural assets as a means of developing comparative advantage in an increasingly competitive tourism marketplace (OECD 2008). Bahrain has positioned itself as a ‘boutique’ destination in the Gulf, promoting its museums, heritage, arts, and handicrafts such as its UNESCO World Heritage site, Qal’at Al-Bahrain. The Kingdom’s six-week celebration of cultural events, Spring of Culture, is one of the largest festivals in the Gulf celebrating the very best of art and performance, and showcasing Bahrain’s architectural and cultural heritage (Bahrain Economic Development Board 2007).

Typically, employees who work in cultural tourism are employed in specialised guiding or interpretive roles, operating with significant autonomy and responsibility. Other employees are in sales positions, developing and promoting cultural products. Employees must be knowledgeable about these products, know how these products compare to those in other GCC States, and/or have good awareness of the consumer groups attracted to these products.



Many countries offer courses that focus on cultural tourism. For example, Australia’s Certificate in Tourism (Natural and Cultural Heritage) includes the units of:

• prepare and present tour commentaries or activities

• research and share general information on Australian indigenous cultures

• plan and implement minimal impact operations

• plan and develop interpretive activities

• prepare specialised interpretive content (flora, fauna and landscape)

• prepare specialised interpretive content (marine environments)

• prepare specialised interpretive content (cultural and heritage environments).

Canada’s University of Victoria offers a six-day cultural tourism course that includes the units of:

• cultural tourism: globalisation and emerging new regional economies

• community tourism development strategies

• issues of the arts, heritage and culture as product

• heritage, arts, and culture in the city: renewal and development

• from principles to practice.

Nelson Marlborough Institute of Technology offers a course that focuses solely on the marketing and development of cultural tourism in New Zealand. The course covers the structure of the industry, the marketing process and the cultural tourism participants, and experience tourism environments in New Zealand.

Method

Bahrain Training Institute, in partnership with an international training provider or organisation specialising in cultural tourism, develops and delivers a 40 hour course in cultural tourism to 50 employees and employers. The course developer will customise existing cultural tourism courses to align with the Bahrain’s cultural and heritage products and target markets.

Responsibility

Bahrain Tourism Authority, Ministry of Culture & Innovation, and Bahrain Training Institute in partnership with an international training provider or organisation specialising in cultural tourism.

Evaluation:

• course applications and enrolments

• participant evaluation of course — end of course evaluation and post-

evaluation (six months after course)



• client/visitor evaluation of services — pre-course evaluation and post-course evaluation (6 months after course) of services provided by participating organisations

• impact on sales of participating organisations (12 months after course).

Cost

Cost includes the development of the course, delivery to 50 participants, and any modifications after its delivery to the first group of participants.

Cost of course development and modification is estimated at BD10 000.

Cost per participant at BD100 is based on funding provided by the Specific Council for Training in Hospitality to deliver 227 618 hours at a cost of BD538 149 in 2006 (Ministry of Labour 2008).

The Bahrain Tourism Authority to pay for the development and any modifications to the course after its delivery, and the Specific Council for Training in Hospitality to fund the first course via the Training Levy Scheme.

Future courses — fee-for-service paid for by employers and/or employees.

Priority

The priority of this solution is high. Culture and heritage are core products in Bahrain’s tourism and hospitality sector.

Proposed solution 3: Develop e-tourism short course

E-tourism links sustainable tourism and ICT-based tools, enabling countries to organise and promote their tourism services, develop new tourism products, improve the quality of their services, and foster public-private partnerships to improve the competitiveness of the sector (UNCTAD, 2005). E-marketing and online sales are rapidly replacing the traditional forms of advertising in the sector i.e. printed brochures, posters and TV advertisements. Over 40 per cent of information that tourists retrieve is provided through internet and more than 30 per cent of all bookings are made online. The aviation industry, particularly budget airlines, has embraced e-business solutions such as e-ticketing, customer- service service, bar-coding and boarding passes.

In 2003, the European Commission (2006) established the e-Skills Forum, a taskforce to assess the demand and supply of ICT and e-business skills and to develop policy recommendations for the tourism industry. It identified improving e- business skills, especially among SMEs, as an important policy issue, and urged tourism colleges and vocational training institutions to include ICT-related developments and understanding of e-business opportunities in the curricula.

Some of the programs at the Bahrain Institute of Hospitality Management and Bahrain Training Institute include courses on technology and e-ticketing but courses devoted to e-tourism do not appear to exist.

UNCTAD e-Tourism Initiative (2009) offers a four-day ICT and Tourism course that aims to provide participants with relevant instruments for assessing the opportunities and impact of information and communication technologies in the



tourism sector; and to highlight the different responsibilities of parties involved in the definition of national e-tourism. Modules include:

• relationship between ICT and tourism

• destination management systems (DMS): an outcome of the Internet revolution

• formulation of a national strategy for e-tourism: a prerequisite for the

implementation of a DMS

• examples of private-public partnership in the field of e-tourism: Madagascar (LDC), Tunisia (developing country) and Quebec (developed country)

• role play on the implementation of a national e-tourism strategy around a

DMS.

The target groups for this short course include Government officials in the ministries of tourism, economics, planning, finance, transport, trade, environment, energy, equipment, and the interior; local policy-makers and communities; relevant NGOs; relevant associations of interests (consumers, national federations, etc); and regional organisations. The delivery mode is group training combined with individualised studies.

UNCTAD will soon offer the Introduction to e-Marketing course in partnership with the Ministry of Tourism of Quebec. The course aims to demonstrate the importance of electronic marketing in tourism promotion, and to give participants the necessary basics for the development of an integrated strategy in electronic marketing. Delivery modes will include face-to-face seminars and distance learning.

Some of the e-business competency standards from Australia’s Tourism Training Package are:

• Trade online

• Implement and monitor delivery of quality customer service online

• Evaluate e-business opportunities

• Develop an e-business strategy

• Manage the business aspects of a website

• Manage online sales systems

• Develop online customer service strategies

• Develop a business website strategy

• Build online customer loyalty

• Participate in co-operative online marketing initiatives for the tourism industry.

Bahrain’s Tourism Masterplan aims to double tourism income over the next seven years and generate 10 per cent of GDP from the sector by 2014. Bahrain will need to embrace e-tourism to help achieve this target. Bahrain was one of a number of GCC States that participated in the International Arab Conference in e-Tourism and e-Marketing held Sharm el Sheikh, Egypt, in December 2008. Like many of the



new ultra-modern cyber-cities in the Middle-East, Bahrain has modern infrastructure and the most up-to-date technology (eTN 2009). The challenge is creatively adapting the international e-tourism models and technology to the Bahrain context and providing those responsible with the skills and knowledge to do so.

Method

Bahrain Training Institute, in partnership with an international training provider or organisation specialising in e-tourism, develops and delivers a 40 hour course in e- tourism to 50 employees, employers, Government representatives, and other relevant stakeholders.

Responsibility

Bahrain Tourism Authority and Bahrain Training Institute in partnership with an international training provider or organisation specialising in e-tourism.

Evaluation:

• Course applications and enrolments

• Participant evaluation of course — end of course evaluation and post-

evaluation (six months after course)

• Client/visitor evaluation of services — pre-course evaluation and post-course evaluation (6 months after course) of services provided by participating organisations

• Impact on sales of participating organisations (12 months after course)

Cost

Cost includes the development of the course, delivery to 50 participants, and any modifications after its delivery to the first group of participants.

Cost of course development and modification is estimated at BD10 000.

Cost per participant at BD200 is based on:

• funding provided by the Specific Council for Training in Hospitality to deliver 227 618 hours at a cost of BD538 149 BD or BD2.36 an hour in 2006 (Ministry of Labour 2008).

• additional costs to cover the use of ICTs in course.

The Bahrain Tourism Authority to pay for the development and any modifications to the course after its delivery, and the Specific Council for Training in Hospitality to fund the first course via the Training Levy Scheme.

Future courses — fee-for-service paid for by employers and/or employees.

Priority

The priority of this solution is high. Given the proximity and size of Bahrain together with consumer preferences for online tourism solutions, the use of e- tourism technologies and marketing strategies is vital to increasing global awareness of the country’s tourism products.



Proposed solution 4: Stocktake of Bahrain’s health tourism workforce

Health or medical tourism is the act of travelling to another country to seek specialised or economical medical care, wellbeing and recuperation of acceptable quality with the help of a support system (Deloitte 2008). Many patients are increasingly using health/medical facilitators to coordinate health tourism programs, including logistics and travel arrangements. Facilitators include hotel groups and travel agencies, which are independent groups venturing into health tourism; and medical travel planners and provider groups which are businesses dependent on international medical travel (Deloitte 2008).

The Gulf region is one of the ten hot spots for health tourism in the world (Deliottes 2008). Bahrain is committed to becoming the hub for medical services in the GCC region and a health tourism destination in its own right (Arab Medical Tourist, 2006). It has invested in its first health resort, the Al Farabi Care Centre in Busaiteen a $34US million health resort for elderly people that includes a four-star hotel, six apartment buildings, a commercial complex, health spas, clubs and clinics, and greens spaces. Bahrain continues to host the annual International Health Tourism (IHT) exhibition that attracts exhibitors from hospitals, clinics, medical organisations, health resorts and spas, travel agents who offer health tourism packages, airlines, medical referrers, tourism promotion boards, hotels with special health facilities, health ministries and specialised publications. It recently hosted the International Health Products and Green Expo. Over coming years, Bahrain will need a highly skilled health tourism workforce if it is to achieve its vision of becoming a well known health tourism destination.

Method

Conduct a study to determine the current supply of and demand for health tourism specialists; identify the skills sets of health tourism facilitators working in a global marketplace; review the skills sets of health tourism facilitators working in Bahrain (or who work in other locations promoting health tourism in Bahrain) against international skills benchmarks; and recommend solutions to address any current and/or projected skills shortages and gaps.

Responsibility

Bahrain Tourism Authority, Ministry of Health, and organisations providing health tourism services for Bahrain (some of these organisations may be located outside of Bahrain).

Evaluation:

• solutions proposed in the report are supported and implemented

• increase in the number of health tourists (longer-term)

• patient feedback on services (longer-term).

Cost

The cost of the study is estimated to be low to medium. The cost of implementation of solutions is estimated to be moderate.

Priority

The priority of this solution is moderate.




Further to the short-term solutions to address skills gaps, additional long-term solutions could be considered as a complement to other solutions. The key long- term solution:

• Include the tourism and hospitality sector in a national vocational

apprenticeship program.

This proposed solution is discussed below.

Proposed solution 5: Include the tourism and hospitality sector in a national vocational apprenticeship program

Bahrain has an established itself as a provider of internationally accredited tourism and hospitality training programs, and is committed to increasing the number of well-trained Bahrainis working in the sector. For example:

• Baisan Institute of Hospitality Management (BIHM) offers programs in

hospitality, travel and tourism and retail studies that range from entry-level to Higher Degree-level

• Bahrain Training Institute offers Foundation, Diploma, Advanced Diploma and

Bachelor programs that are accredited by Cambridge University and the International Air Transport Association (IATA). Students can take the BTI courses as a full package, and are required to undertake on-the-job professional work experience and project work. BTI also offers a number of short courses

• both BIHM and BTI are investing in world class training facilities — BIHM is

building a BD1.5 million state-of-the-art hospitality college with a vast campus, hostel facilities, resource centre and other infrastructure facilities. BTI is establishing two hi-tech laboratories equipped with major Global Distribution Systems and a simulated workplace, the first of its kind in the Gulf (Gulf Daily News 2008)

• the Specific Council of Training in Hospitality (SCTH) has launched a major

campaign to encourage more Bahrainis to take up jobs in hotels and other hospitality establishments (Gulf Daily News 2008)

• the Specific Council for Training in Hospitality provided funding for 964

trainees to complete 227 618 training hours at a cost of around 538 149 BD in 2006 (Ministry of Labour 2008)

• Tamkeen is funding BIHM to train 1870 Bahrainis in diverse fields of the

hospitality sector. The program will run for five years and offer 6 to 48 month programmes. The funding will provide for 1500 trainees in diverse entry-level positions, 300 middle-level positions, 50 participants in the BSc. in Hospitality Management, and 20 participants currently working in the HR departments of the hospitality sector to complete their professional HRM qualifications (Tamkeen 2008). The hospitality training programmes will be delivered based upon internationally recognised curriculum.



Despite these achievements, the tourism and hospitality sector continues to experience general skills gaps from a lack of effective training provision and difficulties in attracting skilled candidates to jobs within the sector. The impact of Tamkeen’s latest initiative in terms of attracting and retaining Bahraini employees will not be known for some time, particularly the extent to which 1500 trainees remain in entry-level positions that are associated with low wages, social sigma, and long working hours.

Chapter 3 recommends the introduction of a national vocational apprenticeship program. The tourism and hospitality sector would benefit from involvement in the program due to the following program benefits and features:

• competency-based apprenticeship system that is industry led and demand

driven

• employer confidence in an education and training system for the recognition of the skills and competencies acquired by working in the sector

• responds to current and emerging needs of industries, firms and individuals

• structured learning on- and off-the-job, in the workplace or in an educational

institution

• individuals are provided with clear career and training pathways, and assisted to overcome barriers to education, training and employment

• recognition of prior learning (RPL) initiatives to encourage the industry to up-

skill and provide qualifications to existing workers, and to address any barriers to the take-up of RPL by employers, employees and training providers.

Method

The development of an apprenticeship program for the tourism and hospitality sector would need to incorporate the following features:

• flexible employment-based training models that include:

– skills development opportunities outside of normal business hours

– school-industry partnerships to provide work experience

– personnel to mentor apprentices and trainees

– effective distance learning facilities, including self-instruction packages

– decentralising delivery, taking training provision to enterprises

– ‘train-the-trainer’ programs to provide staff with skills required on the job

– Professional tourism body responsible for formally recognising and

accrediting individuals against prescribed qualifications and training, or at least a representative body of key stakeholders advising the accrediting body about the needs of the tourism and hospitality sector.

• given high labour turnover in the sector, skills development focussing on

generic skills which are more readily transferred between industries; although the diversity of enterprises and occupations in the sector means that developing ‘standard’ skills may be problematic.



The program for the tourism and hospitality sector must take into account the age, literacy and numeracy levels of new entrants and existing workers as well as workplace conditions. It needs to offer different models of employment-based training to acknowledge that different learners, with varying capacities, will need different amounts of time to develop occupational knowledge (Choy et al., 2008). Examples of models identified by Choy et al. (2008) are:

• ‘Traditional’ entry-level training model (new entrants): this reflects the current

apprenticeship/traineeship model. It features sets of learning experiences in both the workplace and educational institutions across the duration of the entry-level period of training.

• ‘Accelerated’ entry-level training model (new entrants): the purpose of this

model is to assist selected worker–learners to progress speedily through the process of skill development by receiving more effective and intense experiences in both the workplace and the educational institution.

• Internship entry-level preparation model (new entrants): this model provides

for a period of employment-related learning beyond the completion of an expedited entry-level training process and would initially lead the worker– learner to be afforded the status of ‘intern’. This would provide them with recognition and the interim authority to practise their occupation. After a further stipulated period of employment-related learning experience (for example, one year), both the employer and educational institution will finally assess and recognise the learner as being fully certified for the occupation.

• Extension model of entry-level preparation (existing workers): this model is

intended for mature workers and the kinds of work where frequent day release or block release is not possible or desirable. Full-time employment is likely to be supported by weekend, evening or flexible provisions of learning experiences and support through educational institutions and courses.

• Extension model for further development (existing workers): this model is

intended for mature workers or those who have already completed their initial occupational development and have some experience. It is based more strongly on employment-based experiences, supported by educational provision that will mainly occur outside work time, and will not require attendance at the educational institution during the working day. Instead, to assist the worker– learners to develop their occupational capacities, the employment-based experiences will be augmented by an extension kind of further educational provision (for example, in the evening, at weekends, or by distance).

It is proposed that a study is undertaken to determine the features of effective employment-based training (EBT) models for the tourism and hospitality sector in Bahrain. This study would:

• examine and critically analyse existing employment-based training models in

Bahrain

• assess the suitability of existing and alternative EBT models by including views of key stakeholder representatives, new entrants and existing workers

• recommend employment-based training models that ‘best fit’ the needs of

sector and what (if any) modifications are required.



The study will focus on occupations where demand is high and occupations that Bahrainis are more likely to regard as attractive i.e. those with better wages, work conditions, and career prospects.

Responsibility

The National Education Reform Project Management Office in partnership with the Ministry of Education and Specific Council for Training in Hospitality.

Cost

The cost of the study is estimated to be low to medium. The cost of implementing a model as part of the introduction of a national vocational apprenticeship system is significant.

Priority

The Skills Strategy Framework in Chapter 2 has identified the need for a national vocational apprenticeship program as high. Government efforts to double tourism income over the next seven years and generate 10 per cent of GDP from the sector by 2014 (note, the sector generated 2 per cent of GDP in 2007) will not be successful without effective and flexible training options.

6.6 Summary

Table 6.1 summarises the possible solutions proposed in this section. These solutions aim to attract and retain a sufficient supply of skilled employees; address negative perceptions about working in the sector; increase investment in training in the tourism and hospitality sector; ensure the availability of employees with specialist knowledge and skills in niche markets as well as in e-tourism technologies and marketing strategies; and generate effective and flexible training options.



Table 6.1 ACTION PLAN — TOURISM AND HOSPITALITY

Possible solution Method Responsibility Cost Priority Short-term proposed solutions: Awareness raising of the sector to Bahraini workers

12-month communication strategy

Bahrain Tourism Authority (BTA)

Low to medium (research component) Medium to high (implementation)

High

Develop a cultural tourism short course

Develop and deliver course to 50 participants

BTA, Ministry of Culture & Innovation, Bahrain Training Institute, international partner

Low to medium H igh

Develop an e-tourism short Develop and deliver BTA, Bahrain Training Low High course course to 50 participants Institute, international

partner Stocktake of health tourism Study BTA, Ministry of Health, Low to medium Medium facilitators and health tourism

service providers Long-term proposed solutions: Include tourism in a national vocational system

Study to determine effective models of employm ent-based training in the sector

National Education Reform Project Management Office, Ministry of Education, Specific Council for Training in Hospitality

Medium to high High




Chapter 7

Focus area 4 — a strong infrastructure and service base

7.1 Overview

In order for the other sectors discussed in this report to be effective, it is essential that supporting sectors (such as public administration, business services and the information technology and telecommunications sectors) have the appropriate skills to drive longer term economic performance in Bahrain. Report 2 highlighted the skills gaps in these sectors, which fall into three main areas:

• public administration — the current skills levels of Bahrain’s public

administration sector are above national averages and compare favourably to other sectors. Report 2 suggested there are few skills gaps within the lower echelons of public organisations, however, there is general consensus that there are significant management and leadership skills gaps that need to be addressed. In addition, there is considerable need within the sector to accommodate an increasing number of female graduates predicted to enter the sector.

• information technology and telecommunications — both the information

technology (IT) and telecommunications sectors are becoming increasingly skill dependent. Although the quality of training provided by both sectors in Bahrain is high, the number of Bahraini’s undertaking training is not, thus leading to a shortage of Bahraini trained staff offset by expatriates. Drawing from the findings of UK research, it is envisaged that the IT and telecommunications sectors of the future will require staff with skills to work in a range of occupations including ICT and IT management skills, telecommunications and software technical skills, IT strategy and planning skills, as well as sales, customer service and marketing skills.

• business services — the business services sector is expected to experience total

labour market growth over the period 2007-2012. This growth will see an anticipated shortfall in the number of workers with managerial and technical skills over that period. This will require Bahrain to implement strategies for both attracting suitably qualified staff, as well as increasing the level of post- school training (especially vocational education and training) of workers currently in the sector. Key skills gaps in the business services sector include specialist legal and accounting skills, management and coordination skills, and paralegal and legal clerical skills.

Results from employer survey and the current skills gaps identified in the labour market analysis were used to determine an approximate number of specific occupations required in 2012, including the future need for each sector. These have been summarised in Table 7.1.



Table 7.1 CURRENT SKILLS GAPS IDENTIFIED

Public administration Information technology and telecommunications Business services IT Telco

1800 administrative staff 1300 services and sales 120 engineer technicians 1200 service and sales staff

720 engineering/technical 1200 managers 70 managers 900 business professionals staff

171 managers (mainly at 1100 70 services and sales staff 550 m anagers the Director level) engineers/technicians

650 scientists/technicians 400 administrative services


Further, qualification gaps projections for 2012 confirm the issue apparent from current qualifications data. By 2012, it has been projected that there will be a shortage of several types of qualifications in the industry. In particular, there will be a shortage of Bahraini staff with masters, executive and PhD level qualifications in the public administration, ICT and telecommunications sectors, while there will also be a shortage of vocationally trained workers in the business services sector.


In 2007, the labour market made up of the four economic sectors totalled 22 654, including:

• 14 119 public administration employees (excluding public health and

education) in Bahrain. Among all Bahrainis, 27 per cent were employed within the public sector in 2007

• 5713 employees in the ICT and telecommunications sectors

• 2822 employees in the business services sector.

Assuming the status quo, the labour market was predicted to increase to 33 300 jobs by 2012, including 15 400 employees in public administration, 12 100 employees in ICT and telecommunication and 5800 employees in the business services sector. A total increase in employment across the sectors of 47.0 per cent compared to 2007.

These sectors are likely to be exposed to the deterioration in external economic conditions. As a result, an estimate using the status quo alone is not optimal. Therefore, a revised scenario for the infrastructure and service base has been predicted to 2012, including the following assumptions:

• an increase in Bahraini labour of 5 per cent and a forecast using the historical

data plus this shock in the labour market using an autoregressive 1 period model

• a decrease in non-Bahraini labour of 5 per cent and a forecast using the

historical data plus this shock in the labour market using an autoregressive 1 period model.



On the basis of these assumption, it is expected that the total infrastructure and service base workforce (public and private) will reach 36 300 by 2012 (a 61 per cent increase compared to 2007). However, these results assume that no additional mechanisms are introduced to improve the participation of Bahrainis in the infrastructure and services base.

Figure 7.1

FORECAST LABOUR MARKET — INFRASTRUCTURE AND SERVICE BASE TO 2012


These four sectors provide services and support to other sectors of the Bahrain economy. For example, the ICT sector develops and supports IT applications used throughout the Bahrain economy. Similarly, through the administration of policies and regulations, the public sector supports the operations of the Bahraini Government, and the range of services provided such as education and health. Business Services provides support to several other economic sectors, mainly the banking and finance sector.


A number of proposed solutions should be utilised to address skills gaps in Bahrain’s public administration, IT and telecommunication, and business services sectors. The number of solutions offered below is relative to the total level of employment within each sector.


There are four short-term solutions to address skills gaps that could be considered in the public administration, IT and telecommunications, and business services sectors:

• establish a skills council to improve linkages between supporting sectors and

training providers

• develop industry internships for Bahrainis undertaking formal training for the IT and telecommunications sectors

• extend the ‘regular stocktake of skills needs and provider capacity’ to the

public administration, business services, and IT and telecommunications sectors



• strengthen achievement in mathematics and science in secondary schools.


Proposed solution 1: Establish a skills council to improve linkages between supporting sectors and training providers

Weaknesses were identified in linkages between industry and training providers during consultations with stakeholders. In particular, concerns were raised by industry that training providers, particularly universities, were not providing students with the range of skills needed in the modern Bahrain economy. In a number of countries improved linkages between industry and training has been achieved through the establishment of a skills council, comprising representatives of industry, training providers and government. It is considered appropriate that a skills council be established in Bahrain comprising key stakeholders in the supporting sectors.

Internationally, there are good examples of effective skills councils:

• within Australia there are 10 skills councils covering a wide range of sectors.

A key example is Innovation & Business Skills Australia (IBSA), which covers a range of industries including Business Services and Information and Communication Technologies. IBSA develops competency standards and qualifications for workforce skills development and training recognised throughout Australia

• a similar body also exists in the United Kingdom, known as e-skills UK

(formally known as the Sector Skills Council for Business and Information Technology). e-skills UK brings together employers, educators and government to collaboratively address skills issues no one party can solve on its own.

This skills council within Bahrain would build upon the existing sub-committees attached to the Bahrain Chamber of Commerce and Industry’s (BCCI).

Method

The design of the skills council should draw heavily upon models operated in other jurisdictions such as United Kingdom and Australia. It is important that the skills council have a clear mandate set by government, including the need for regular reporting on operational and financial performance.

A typical model would involve a board comprising representatives from training providers, industry and government. Industry representatives may include both employers and employees. Supporting the board would be a secretariat comprising a number of full-time staff. Consideration should be given to incorporating this skills council into the existing structure of subcommittees of the BCCI.

Responsibility

It is considered appropriate for government, especially Tamkeen, in conjunction with the BCCI to take a leadership role in the development and early operation of the skills council. In the long-term, it is desirable that this skills council is self- governing, with members appointed by government.



Cost

The number of staff within the secretariat will largely determine operating costs of the skills council. It is desirable to establish a small, highly skilled body to provide coordination between each skills council and to ensure their activities reflect the policy objectives of government. Based on the Australian experience in establishing a similar secretariat (Skills Australia), the composition of the secretariat might include:

• a Director to manage the affairs of the secretariat and report to ministers and

Board members

• two manager level staff to oversee a team of administrative assistants

• a university graduate to assist managers in undertaking analytical work

• three administrative assistants to provide secretarial support.

Additional staffing costs will include notional payments made to board members, and payments to external experts providing advice to the secretariat. There will also be costs associated with accommodating the council secretariat.

It is anticipated that the annual running costs to government of the secretariat will range from BD1.5 million – BD3 million.

Priority

This solution is a high priority initiative due to the potential to pull together industry intelligence on skills needs and gaps.

Proposed solution 2: Develop industry internships for Bahrainis undertaking formal training for the IT and Telecommunications sectors

It is proposed that industry internships be rolled out over several years. This solution will encompass all four priority areas as discussed in Chapter 2.

Initially, effort in the short-term should be put into developing an industry internship program. There may also be scope to implement internships under a ‘pilot scheme’ in the short-term.

Following detailed development of industry internships, they could then be rolled out on a large-scale in the long-term (discussed in section 7.5).

Internships will address skills shortages in the various supporting sectors in two ways. Firstly, they will raise the attractiveness of formal training in IT and telecommunications, providing opportunities for students to apply their knowledge gained during study. Australian universities, such as the University of Technology Sydney (UTS), feature internships as part of their degree programs. At UTS two six-month internships are undertaken as part of the engineering degree. Interns are typically paid a wage that is commensurate to their skills and experience, and is in line with average monthly earnings.

Method

The development of industry internships will require close interaction between industry and training providers.



Much consideration will need to be given to the design of an internship program in the Bahrain context. This will require consultation with a range of stakeholders, including industry, training providers, and students. It is also appropriate that consideration be given to internship programs in operation in other jurisdictions to inform program design.

It is appropriate that a small trial be undertaken in the development phase of the internship program. This trial would identify any areas that need improvement in the program design.

Responsibility

It is desirable that the internship program be operated by a partnership between training providers, industry and government. However, it is envisaged that this will not be feasible until the program has been fully developed.

Accordingly, initial responsibility for development of industry internships should be held by the Government of Bahrain. A key facet of the Government role will be to bring together both training providers and industry, and to lead development and co-ordination of the internship program.

Cost

The costs associated with the internship program

• government leadership role in development and coordination

• training providers and industry spending time on program development, and operation of the trial

• wage costs associated with students undertaking internships. Based on an

average public sector wage of between BD21 000 – 25 000 per year (2006 averages) an internship program of 50 students will cost between BD1 050 000 and BD1 250 000 per year. It is suggested that wage costs be shared equally between employer and government.

Priority

This solution is a medium-level priority — it is considered important, but not imperative, for the strengthening of skills in the IT and telecommunications sectors.

Proposed solution 3: Extend the ‘regular stocktake of skills needs and provider capacity’ to the public administration, business services, and IT and telecommunications sectors

In a closely related initiative to the ‘quality review’ it will be important to extend to regular stocktake proposed in Chapter 4 to the public administration, business services, and IT and telecommunications sectors. This will provide the Government of Bahrain with detailed information on the incidence, extent and nature of the skills problems facing employers, as well as the training activities and expenditure patterns of employers.

Method

The proposal is based on an internationally recognised survey undertaken in the UK (see Box 4.1 for further detail regarding the National Employer Skills Survey (NESS)). This survey would seek to collect quantitative and qualitative data from employers about their:



• satisfaction with the quality of Bahrain’s education providers (including the quality of recent graduates)

• the nature and extent of any skills problems they may face

• desired solutions to address identified skills problems.

In addition, it will be necessary to implement a second survey of relevant Bahraini vocational and higher education providers (such as BTI and the University of Bahrain). This survey would seek to collect data about the courses they offered (including associated teaching staff and student numbers), and steps they have taken to address any skills problems identified in previous skills surveys.

The information gained from these surveys would then be used for longitudinal planning and policy making within government. In particular, it could be used to directly address the current concerns expressed by national stakeholders about the responsiveness of Bahrain’s vocational education and training system.

Responsibility

As described in Chapter 4, Tamkeen would be responsible for developing and administering the survey. Public sector organisations, private companies and education providers would be responsible for completing their respective surveys in a timely and accurate fashion. These would also serve as performance measures for Tamkeen.

If after two surveys (four years) the response and completion rates of the surveys exhibit no signs of improvement, we recommend reviewing the future of this initiative.

Cost

It is anticipated that an extension of the stocktake to include these sectors would increase the cost of the survey by 15 per cent (reflecting the proportion of the total workforce that these sectors comprise).

Priority

This solution is a low level priority as it will assist government planning and decision making through the development of up-to-date longitudinal data about skills.


Further to the short-term solutions to address skills gaps, additional long-term solutions should be considered as a complement to other solutions. Key long-term solutions include:

• strengthen achievement in mathematics and science in secondary schools

• establish a National School for executive training in governance, public policy

and public sector administration.



As identified in Report 2 the public sector has relatively few skills gaps in comparison with other parts of the Bahraini economy. A detailed action plan for the sector is therefore not a priority. However, the one area where there is an additional need to address the skills gaps issue is for high-level management skills in the public sector.

Each solution is discussed below.

Proposed solution 4: Strengthen achievement in mathematics and science in secondary schools

The development of additional Bahrainis with the skills required in the supporting sectors, particularly IT and telecommunications, is heavily dependent upon the strength of mathematics and science skills obtained in secondary school. At the present time it is understood that even if there were an increase in the number of students applying to undertake university studies in IT and telecommunications, it is likely that they would not have the requisite science and mathematics skills. Accordingly, action is required at the school and university level to improve the skills of students leaving school.

Method

Four concurrent activities will be required to implement this solution:

• encourage school students with aptitude in science and mathematics to undertake advanced study in these subjects as part of their secondary schooling

• provide scholarships for high-achieving secondary school graduates who

choose to undertake university studies in mathematics or science

• introduce scholarship scheme for university graduates in mathematics and science to become school teachers

• provide support to existing mathematics and science teachers, including

refresher courses and additional training to teach advanced school-level mathematics and science.

These various activities should be implemented as a package — all are required to strengthen achievement in mathematics and science within secondary schools.

It is envisaged that this solution will need to be in place for a 10 year period. After this time, it is anticipated that there will have a sufficient increase in achievement that the solution will no longer be required.

Cost

There will be a number of costs associated with this solution, largely comprising scholarship and training costs. There will also be costs associated with providing support to existing teachers, and developing and co-ordinating implementation of this solution.

It is suggested that 100 scholarships of BD5000 be offered each year to secondary school graduates, and 25 scholarships of BD10 000 to mathematics and science becoming school teachers. The annual cost of these scholarships, plus ongoing teacher development activities are expected to cost BD1 million. There are also expected to be costs of approximately BD100 000 to set up this solution in the first two years.



Priority

The strengthening of achievement in mathematics and science is a driver for increasing training in IT and telecommunications, and is therefore considered a high priority solution.

Proposed solution 5: Establish a National School for executive training in governance, public policy and public sector administration

The objective of this solution is to create a world-leading educational institution that teaches strategic management and high-level policy skills to both private and public sector leaders. It would also provide significant longer-term capacity to Bahrain in meeting its skills deficit at the director level and above.

Method

The core activities of the National School would be:

• provide executive level education courses to all public administration employees

• offer innovate education and learning programs that meet international best

practice – such as Harvard University’s ‘case study program’

• undertake a program of applied public sector-based research that brings the issues of government in contact with the best thinkers in each field — such as the Australia and New Zealand School of Government and government funded the Canadian School of Public Administration

• provide significant networking opportunities for director level employees both

in Bahrain and overseas.

Responsibility

The University of Bahrain, in collaboration with Civil Service Bureau, and other government agencies would drive the establishment of the National School and broker agreements with its funding and education partners. Ideally, the collaboration should also extend to overseas universities that have a proven track record in delivering world-class public administration training and thought leadership.

Experiences from Australia, Canada and elsewhere suggest that a National School should be governed by a board made up of representatives from government, academia and industry, and should be managed by a highly skilled and salaried Chief Executive.

Cost

The cost of establishing similar schools around the world has varied considerably. The cost is contingent on the level of government support for the venture, the degree to which national schools can commercialise their activities (especially research) and level of cross subsidisation participating universities are willing to engage in. An indicative figure from the establishment of the Australia and New Zealand School of Government in 2004 suggests the Australian government made an upfront, one-off donation of between BD4.7 – BD5.0 million.



Priority

The establishment of a National School will be an important driver in executive level government training and therefore will be of a high priority solution.

7.6 Summary

Table 7.2 summarises the possible solutions outlined above that make up an action plan to address skills gaps in Bahrain’s public administration, business services and IT and telecommunications sector (2009-2016).

Table 7.2 ACTION PLAN — INFRASTRUCTURE AND SERVICE BASE

Possible solution Method Responsibility Cost Priority Short-term proposed solutions: Improve linkages between Development of industry skills Government of High H igh supporting sectors and council. Bahrain training providers Develop industry Development and trial of Government of High Moderate internship program industry internship program Bahrain Extend the ‘regular stocktake of skills needs and provider capacity’ to the public adminis tration, business services, and IT and telecom munications sectors

Refer to explanation outlined in Chapter 4

Tamkeen Low Low

Long-term proposed solutions: Strengthen focus on mathematics and science in secondary schools

Increase supply of qualif ied mathematics and science teachers, improving ability of schools to increase teaching of mathematics and science

Ministry of Education in close partnership with the University of Bahrain

Low (upfront cost) High (recurrent cost)

High

Establish a Nat ional School for executive training in governance, public policy and public sector administration

Collaborative arrangement between public, education and overseas organisations

University of Bahrain in close partnership with the Civil Service Bureau and other regional leaders in education- research

High High




Part C

Other economic sectors — action plans



Chapter 8

Education

8.1 Education overview

Report 2 highlighted the skills gaps in Bahrain’s education sector. Projected shortfalls in the number of skilled employees required by the education sector by 2012 and the responses from the employer survey indicate that these skill gaps fall into four main areas:

• higher education teaching skills — while overall there seems to be an adequate

supply of education graduates for primary education, there are skills gaps in specialised fields of education (such as early childhood, secondary, technical and higher education; curriculum and assessment; educational planning)

• technical training skills — which is reflected in the general shortage of

engineers, technologies and middle level technicians

• career development skills — including careers development issues such as careers counselling and provision of on-site training

• education administration skills — including skills required by education

managers (principals, directors, deans), and administrative skills.

Results from employer survey and the current skills gaps identified in the labour market analysis can be used to determine an approximate number of specific occupations required in 2012, including the future need for:

• 650 education providers

• 400 administrative services staff

• 350 other education related workers.


The supply of primary school and arts-humanities secondary school teachers generally exceeds demand and the number of new teachers required to fill projected gaps in theses areas is small and can be expected to follow demographic trends. Nonetheless, qualification gaps projections for 2012 confirm the issue apparent from current qualifications data. By 2012, it has been projected that there will be a shortage of several types of qualifications in the education sector.

There will be a shortage of over 800 Bahraini staff with professional qualifications, particularly those with Bachelor and Masters degrees. In the current economic climate, the demand within the sector for qualified non-Bahraini professionals can be expected to fall, with the possible exception of areas in which there has been a longstanding problem in the supply of Bahrainis with good qualifications in areas like science, mathematics, technology (including IT), engineering and allied technical fields. Other areas in which skills supply currently does not match projected demand include personnel with appropriate skills and qualifications in early childhood education, career counselling, and educational management.




The labour market analysis in Report 2 identified that in 2007, the education labour market (private and public) was equal to 21 111 in 2007. There were more non- Bahraini employees than Bahraini employees in the private sector, but in the public sector, the number of Bahraini employees was significantly greater than non- Bahraini employees.

Assuming the status quo, the labour market was predicted to equal 22 400 by 2012. However, given the current and expected economic climate and the extent to which health infrastructure will increase in the near future, an estimate using the status quo alone is not considered reasonable for forecasting. Therefore, a revised scenario for the education sector has been predicted to 2012, including the following assumptions:

• an increase in Bahraini labour of 5 per cent and a forecast using the historical

data plus this shock in the labour market using an autoregressive 1 period model

• a decrease in non-Bahraini labour of 5 per cent and a forecast using the

historical data plus this shock in the labour market using an autoregressive 1 period model.

On the basis of these assumptions, it is expected that the total education workforce (public and private) will reach 22 600 by 2012 (a 7 per cent increase compared to 2008). Employment for total non-Bahrainis will decrease by 2 per cent compared with an increase of 10 per cent for Bahraini nationals. From 2008 to 2012, the public sector is projected to grow by 7 per cent whereas the private sector is projected to grow by 9 per cent in this period. However, these results assume that no additional mechanisms are introduced to improve the participation of Bahrainis in the education sector or include any outcomes from the extensive education reform agenda.

Figure 8.1

FORECAST LABOUR MARKET — EDUCATION SECTOR TO 2012





Report 2 has identified the key challenges facing Bahrain’s education sector and the key issues are broadly addressed in Chapter 3 of this report. It should also be noted that the EDB education reform team have responsibility to address education reform and solutions for that reform. Summary points of the outcomes from Report 2 are below:

• current issues in the quality of education are hindered by problems in basic

skills outcomes from schooling. At higher levels, there is an over-supply of humanities-social science graduates who often are lacking employability skills, and a shortage of science, mathematics, technology and nursing graduates

• a barrier to participation in the education sector: the public sector is virtually at

capacity, yet there is a shortage of well-qualified and competent teachers in areas sought by private sector employers.

• there is capacity for growth and competition, mainly at tertiary level. VET,

paramedical and health, petrochemical industry, and Islamic finance and economics could be attractive to other GCC States if quality assured.

• there are difficulties in ensuring a supply of graduates and recruiting them into

teaching in areas where there are mismatches between supply and demand such as early childhood, VET, mathematics, science and technology.

EDB education reform initiatives aim to improve the quality and relevance of teaching, learning and training across Bahrain and match it to the requirements of the labour market; with a target of an education and training level that is line with the OECD average (Bahrain Economic Development Board, Developing Bahrain’s Economy, Operating Review 2007). Initiatives include:

• the Quality Assurance Authority will set standards for educational institutions

across Bahrain based on best practice on the quality of provision, students’ achievement, leadership and management

• the Teachers’ Initiative – the Ministry of Education with the support of

international partner, National Institute of Education (NIE) aims to attract better qualified candidates and offer more attractive development and salary options; improve the performance management and system for teachers; and provide world-class preparation and training to those entering the profession. The new Institute, Bahrain Teachers’ College, opened at the University of Bahrain in 2008, specialising in K-12 teacher education. The new Bachelor of Education and pre-service Post-graduate Diploma were developed in partnership with NIE

• Bahrain Polytechnic provides applied and industry-focused education that

concentrates on professional skills aligned with market needs

• the Secondary Vocational Initiative is designed to increase the skills level of young Bahrainis by developing an education and training framework to strengthen their effectiveness in the labour market. The initiative includes a school-based apprenticeship program, which includes an on-the-job training for students and teachers.



Chapter 9

Transport and logistics

9.1 Transport and logistics overview

The skills gaps in Bahrain’s transport and logistics sector, were highlighted in Report 2 and fall into the following three categories:

• logistics and freight skills — logistics competence is a key issue for success.

Improvements in logistics and freight skills will be important to increase competence in the sector. For example, higher-level skills and qualifications are required in logistics as the sector contributes more to GDP.

• airport services skills — will be required as the Bahrain International Airport

continues to grow and improve facilities, infrastructure, and activity. Specific skills include customer service and sales skills, engineering and maintenance skills, and emotional (attitudinal) skills as highlighted in the employer survey results.

• airline cabin crew skills, including pilots — will also be required in the future

as Bahrain increases its connectivity within the GCC and MENA regions and beyond. In addition to an expected expansion of Gulf Air services, Bahrain Air plans to significantly increase the number of destinations over the next three years. Cabin crew skills, call centre skills for airlines, and emotional (attitudinal) skills will also be important to fill current and future gaps in the transport and logistics sector.

Results from the employer survey and the current skills gaps identified in the labour market analysis can be used to determine an approximate number of specific occupations required in 2012, including the future need for approximately 7400 positions:

• 6600 general transport and logistics positions

• 800 engineers and technicians

• 670 administrative staff

• 330 managers.

More detail on these gaps, including occupational classifications within the broad categories, is outlined in Report 2 of this study.

Forecast qualifications in the transport and logistics sector between 2008 and 2012 are expected to be for employees to have completed secondary school (48 per cent of the gap, equal to 3606 jobs) and for employees with a diploma qualification (21.1 per cent of the gap, equal to 1589 jobs). However, it is important to note that this is based on 2006 data and that survey results show that there may be an increased need for people with a Bachelor degree or diploma qualification, rather than secondary school education in the future.




The labour market analysis in Report 2 identified that by the end of 2007, the transport and logistics sector labour market was equal to 11 272. Non-Bahraini employees outnumbered Bahraini employees even though prior to October 2004, Bahraini males were the dominant demographic group employed in the transport and logistics sector.

Continuing the status quo, projections for future employment in this sector show that the number of jobs in 2012 will have increased by 67 per cent to 18 789 jobs compared to 2007. However, employment for non-Bahrainis is expected to grow by 104.2 per cent, with only 2.1 per cent growth for Bahraini nationals.

However, given that even despite the current economic climate, the infrastructure in logistics has increased and is expected to continue to do so, specifically with the BLZ nearing completion, there will be an increased demand for labour in this sector. A revised scenario for the transport and logistics sector has been predicted to 2012 which includes the following assumptions:

• due to increased infrastructure in the logistics sector, the forecast for Bahraini

workers is adjusted to include an increase of 5 per cent to Bahraini employment in the last quarter of 2008 and a forecast using the historical data plus this shock in the labour market using an autoregressive 1 period model

• forecasting the non-Bahraini labour force using an autoregressive 1 period

model.

On the basis of these assumptions, it is expected that the total transport and logistics workforce will reach around 20 500 employees in 2012 (see Figure 9.1). This represents an 82 per cent increase in the labour market compared to 2007, a significant increase in growth from the status quo prediction noted above.

Employment for Bahrainis is expected to increase by 2 per cent compared to a

4

significant increase in employment by 127 per cent for non-Bahrainis. However, these results assume that no additional mechanisms are introduced to improve the participation of Bahrainis in the transport and logistics sector.

Figure 9.1 FORECAST LABOUR MARKET — TRANSPORT AND LOGISTICS SECTOR TO 2012


4 Such a small change is seen in Bahraini employment because the historical data shows a significant and consistent decrease in Bahraini employment between 2002 and 2007, which skews the data.




A number of proposed solutions could be utilised to address skills gaps in Bahrain’s transport and logistics sector. Although the transport and logistics workforce has grown and will continue to do so in the future, the demand for qualified logistics employees, which is also growing, will soon outstrip supply as development of the BLZ draws towards completion. The future of Bahrain’s transport and logistics sector will be dependant on the country’s ability to attract and, importantly, train a future workforce that will be able to fill these positions.

Proposed short-term and long-term solutions are detailed in the sections below.


There are 3 short-term proposed solutions to address skills gaps that should be considered in the transport and logistics sector:

• launch an induction program for graduates and job seekers

• fund bonded scholarships for logistics postgraduate courses

• establish summer internships for students in the BLZ

Each proposed solution is discussed below.

Proposed solution 1: Expand existing training facilities to enhance the workforce

Bahraini employers highlighted the need to expand training opportunities for employees within the transport and logistics sector particularly with the new focus on logistics infrastructure and with increasing tourism that will place demands on the skills of workers within the sector in the future. Identified skills gaps in the transport and logistics sector workplaces covered a vast number of areas including call centre skills, cabin crew skills airport services skills, customer service skills and sales skills as highlighted above.

Tamkeen already has a Career Progression Programme (CPP) in place that provides training to employees earning between BD200 and BD400 across a range of areas. The program’s objective is to improve productivity among participating employees and has brought benefits in terms of individual productivity and in other areas such as client and customer relations.

Developing a similar program, an induction program, to be incorporated into an induction process for graduates or first time job starters within the transport and logistics sector would be an appropriately implemented step towards addressing the communication based skills gaps among workers.

For employees without tertiary eduction this program would provide particular benefits as it would equip them with a basic communications skill set from which to build upon by participating in the CPP program at a later stage if desired. Employees with tertiary education will also benefit from the program, as it will enhance their skills, which may not have been communications-focused during studies.



Method

The induction program would provide a short course to new employees. They would attend two ‘workshop’ seminars where they would follow through a curriculum that would include components on:

• understanding how to communicate effectively

• practising effective sales techniques

• appropriate phone and face-to-face manners

• crisis management.

Completion of the induction program would require attendance to two workshops over a two-month duration after which participants would write a reflective statement to submit to their employer. The induction program would be held twice per calendar year to ensure that all new employees would be captured within their first 6 months of employment.

As this program would occur within the first six months of a new starter’s commencement date, there is no need to advertise a wage incentive for participants. Instead participation in the program would be incorporated as part of the induction progress and the employer would gain benefits through better basic skills for new staff. Upon the successful completion of the course, employees would receive a certificate in recognition of their participation.

A financial incentive for the company to incorporate the program in their workplace twice per year could be to refund social security contributions of each participant’s salary for their first six months in the job.

Responsibility

Tamkeen would be responsible for funding and implementing the program with support from employers within the transport and logistics sector. Similarly to the already established CPP program, strengthening the linkage with BDO JawadHabib Consulting or establishing another link with a firm of similar expertise will increase the practicality of implementing this program.

As an initial step Tamkeen would need to establish a team to develop a curriculum for the program. It would be the responsibility of the employer to direct new starters to participate in the program.

Cost

The costs associated with this proposed solution are moderate. Tamkeen would establish full time positions for three program coordinators at a cost to the Bahrain Government of BD15 750.

This solution would also involve contracting a team of three consultants with whom to develop the curriculum. Consulting services to develop the course for this solution would be required for approximately 4 months at a cost around BD7500.

The incentive to firms to participate in course could involve a government refund of the corporate social security contribution of each participant’s salary for the first six months of their employment. This equates to approximately BD124 per participating employee.



The course requires 4 workshops to be held each year for companies to participate. The cost for running this course per company would be approximately BD340 (including a consultant to run the course for 6 full days each year and course materials).

The approximate total cost to the Bahrain Government for this solution will vary from year to year because of the financial incentive offered to firms. The fixed cost of the solution would be approximately BD24 000 and variable component is dependent on the number of graduates commencing work in the transport and logistics sector each year as well as the number of firms offering the course. Companies will cover the cost of providing the course each year.

Priority

Given the known significant skills gaps within the transport and logistics sector in the areas covered by this course, this solution is of high priority. Communication skills shortages are significant in this sector and this solution is aimed specifically to address these gaps.

Proposed solution 2: Fund bonded scholarships for logistics postgraduate courses

The Bahrain Government should also utilise the national scholarship program detailed in Chapter 3 to encourage participation and address skills gaps in the transport and logistics sector. Bahrain has limited opportunities for students wishing to undertake further studies in the logistics sector.

This solution would include the Ministry of Transportation funding 15 bonded scholarships for students to undertake their studies overseas with an obligation to return to Bahrain and work within the transport and logistics sector for a number of years following completion of their training. Scholarships would be limited to logistics-related degrees to address this particular skills gap.

Method

Initially, the government will need to choose a destination (or destinations) for students participating in the bonded scholarship program. The UAE is an ideal location for students to study because of its relative proximity to Bahrain and because UAE universities have the capacity to provide a world-class education in logistics. UAE has linkages with international universities such as the University of Wollongong (Australia), giving Bahraini students the opportunity to engage with the international transport and logistics community. Currently there is a shortage in demand for these courses in UAE. Potential programs in the UAE that could consider a bonded scholarship include:

• Masters of Science in Global Logistics (Dubai Aerospace Enterprise

University)

• Masters of Science in Logistics (University of Wollongong in Dubai).

The Government of Bahrain will make contact with universities to establish relations whereby UAE universities will be made aware of the bonded scholarships arrangements. Prior to this step, the government must consider eligibility criteria and conditions for the scholarships. For example:



• develop eligibility criteria — recognised undergraduate degree in engineering, science, commerce or other related field with a letter of intent

• develop conditions — work for 3 years in the transport or logistics sector.

Students will be required to apply for jobs in Bahrain upon receiving their offer for a scholarship. Students should seek employment in the private sector to enhance the workforce.

Responsibility

The scholarships will be funded out of the Ministry of Transportation budget but could be coordinated and administered through another organisation if the Government of Bahrain considered this more appropriate. An additional monitoring role is required to ensure that participants are adhering to the work conditions following completion of their degree.

Cost

The costs associated with this proposed solution are moderate. The Government would initially fund 15 scholarships per year, which include both education and living expenses. Tuition fees equate to around BD6000 per student and living expenses would be BD4500 per student.

In addition, the cost to the Government of Bahrain of one full time program coordinator would be around BD8500 per year.

The total cost of this solution to the Government of Bahrain would be around BD165 000 per year.

Priority

This solution is a high priority. It is an expensive solution for the Government of Bahrain but is practical and relatively easy to implement.

Proposed solution 3: Establish summer internships for students in the BLZ

The establishment of the BLZ as a world-class logistics hub will provide the transport and logistics workforce and employers with the opportunity to showcase the sector and increase its appeal to Bahraini students. A good way to involve students in the sector and prepare them for a career in logistics could include a summer internship program.

The summer internship program would run between July and September for approximately 8 consecutive weeks to allow students to gain a feel for the workplace. Companies will hire students studying a wide range of areas because the sector itself is fluid, requiring a range of skill sets. Examples of the areas students could be working in would be warehousing, transport, business development, IT, accounting and finance, engineering and human resources. Broadening the range of internships available will allow for a large influx of students to experience the transport and logistics sector. We suggest that 50 interns are considered at the BLZ in 2010.



Method

Students participating in the internships would partake in ‘real’ workplace tasks under the guidance of an appointed manager or coordinator. As a first step, Tamkeen could establish a bursary from which to pay students for their participation in the internship. Students could receive this payment upon the successful completion of the internship.

Secondly, Tamkeen could establish relationships with the heads of relevant school at education institutes and appoint one specific contact, which is likely to be an administrative staff member to advertise positions to students. Tamkeen would work with this staff contact to develop mail-outs, flyers, students’ emails, advertisements in lectures and information sessions to provide information on the program to potential students.

The Government of Bahrain would then identify logistics and transport companies that that operate in the BLZ and who are willing to participate in an internship program. The incentive is that the government would be responsible for paying students a bursary for their 8 weeks experience. Further, companies would have the opportunity to establish contacts with talented students in fields relevant to their business. The government would undertake the administrative tasks associated with matching students to companies and divisions. Gauging interest in the internship program could be achieved by:

• advertising the apprenticeship program in the media — employees would be

asked to register their interest with the Tamkeen

• directly contacting transport and logistics companies (such as CEVA and FedEx) that have signed leases at the BLZ.

At the completion of the internship students would submit an evaluation report to Tamkeen describing their experiences in the internship. Tamkeen could also undertake a short survey to distribute to participants and employers upon completion to ascertain:

• whether they rated their experience highly

• if the particular company rated well in terms of providing interesting tasks to

interns and support when necessary

• the benefits identified by employers

• the strengths and weaknesses of the process and experience.

Responsibility

Tamkeen will have the responsibility of coordinating the internship program. Coordinating responsibilities include advertising the internships to companies and students and selecting students for the program. Tamkeen or another government organisation could undertake this as appropriate.

Employers would be responsible for undertaking the internship with students in accordance to the brief outline provided to Tamkeen at the outset. This responsibility involves establishing a main contact for students for the duration of their internship, establishing work tasks and liasing with students during the 8 week timeframe.



Cost

The costs associated with this proposed solution are moderate. The government bursary would be BD640 per intern (BD80 per week). The internship could be piloted in the first year, with an initial cap of 50 positions across a range of fields to be expanded in subsequent years. The cost of providing 50 internships would equal BD32 000 in 2010.

One full time and two part time coordinators would be required to run the program. The full time coordinator would be responsible for establishing contacts with industry and universities and training intuitions from the outset. The part time coordinators would be from a human resources background and assist in the selection process and coordinate the survey and feedback from the program. The combined salaries of these positions (2 full time equivalent jobs) would cost the government approximately BD17 000.

These two components equal a total cost for this solutions of approximately BD50 000. Other cost items may include advertising materials, event management of information evenings and survey distribution.

Priority

This solution is of moderate priority. The solution is relatively inexpensive and will give students much needed work experience as well as work to advertise the sector as a potential career option for students.


Additional long-term proposed solutions could be considered as a complement to other solutions. Key long-term proposed solutions are to:

• provide postgraduate courses in transport and logistics areas

• develop linkages between the sector and international institutions.


Proposed solution 4: Provide postgraduate courses in transport and logistics areas

Drawing on the progress made in Solution 2 (to 2012), a proposed long-term solution should be to develop Bahraini capabilities in transport and logistics postgraduate education expertise. This further development should include the provision of postgraduate courses in the transport and logistics field.

Method

The program should be a masters level program offered at one of Bahrain’s universities with already established capacity in similar disciplines. For example, University of Bahrain has the Centre of Transport and Road Studies and the Polytechnic offers the higher diploma in transport, freight and logistics as well as the Bachelor of Business (logistics).

As a first step, Tamkeen would need to nominate the appropriate host for the Masters course and from this institution, nominate 3 members of staff to form a working team to develop the curriculum and establish the administrative arrangements for providing the course.



This team, along with one member of staff from Tamkeen would need to take one information gathering trip to international universities to meet with staff familiar with the curricula for similar courses to what Bahrain intends to offer. The purpose of the international trip would be to develop a deep understanding of course components and understand the practicalities of the course to industry. An international trip could be to locations such as the UAE, to the University of Wollongong in Dubai and the Dubai Aerospace Enterprise University and Singapore, to the Logistics Institute Asia Pacific.

Following the international trips the working team would meet and collaborate with key industry members within Bahrain to establish a curriculum specific to Bahrain’s transport and logistics needs and address skills gaps identified by industry. Tamkeen would invite industry members to a one-day workshop to provide input for this purpose.

The working team would develop the curriculum after the meetings with international universities and industry. Appropriate staff would need to be hired by the university or alternatively, existing staff would need to increase or change their teaching responsibilities. If teachers are needed, they may need to be hired from overseas.

Upon confirmation of the program details Tamkeen would assist the university to initially advertise the program amongst current high performing students, Bahraini nationals already working in the transport and logistics sector, to industry and to universities in the region.

Responsibility

Tamkeen or the Ministry of Education should initially undertake this solution while the program is established and then full responsibility should pass to the university providing the postgraduate course. This support will be in terms of initial financial support as well as coordinating the initial steps in developing the course and making contact with the industry.

Cost

The costs associated with this proposed solution are moderate. Tamkeen or the Ministry of Education would require one full time employee for one year to assist in the establishment of a postgraduate course in Bahrain. In addition, Tamkeen would provide remuneration for the selected university working team, equivalent to half the average salary for a Bahraini public servant.

The salary of the Tamkeen position would cost the government approximately BD8500 and the combined partial salaries of the University working team (1.5 full time equivalent jobs) would cost the Government of Bahrain approximately BD13 000.

The selected university and Tamkeen would jointly finance the international trip. The approximate total cost of a 2 night information gathering trip to Singapore would cost BD1440 for five persons and the approximate total cost of a 2 night information gathering trip to the UAE would cost BD920 for four persons.

The total approximate cost of this solution would be approximately BD15 000. Other cost items may include advertising materials and event management costs.



Priority

This solution is of high priority to the transport and logistics sector. Although it is a relatively intensive solution to implement, Bahraini nationals need the opportunity to extend their formal education within the logistics and transport area in their own country. Education and research opportunities are a key characteristic of nations reputed for their logistics capabilities.

Proposed solution 5: Develop linkages between the sector and international institutions

Developing linkages between the sector and other international institutions will be an important for Bahrain to develop as an internationally recognised logistics hub and maintain the high level workforce needed for this reputation. Solution 5 can be undertaken in conjunction with Solution 4.

Method

The linkages within the transport and logistics sector can be broken into 2 specific relationships:

• between Bahrain’s universities and international universities

• between Bahrain’s universities and industry.

Tamkeen and the working group for the Masters program described in solution 4 could work to develop linkages with international institutions. As a first step, linkages could be established during the working group international trip and these could be built upon when the Masters course is underway.

Initially there are 3 areas where the universities can collaborate — in a student exchange program, in staff sabbatical arrangements and in research projects. A student exchange program is an important opportunity for students and develops relationships between university bodies. As a first step Bahrain’s universities could establish one exchange place with an international university and this number could be increased in subsequent years. Because students would exchange places with each other there would be no additional tuition charge on top of the national fee arrangements in place. Students would be financially responsible for their living expenses while abroad but the university could arrange accommodation.

Staffing sabbatical arrangements could be made between international universities and Bahrain’s universities to allow staff to easily be able to transfer between Bahrain and another institution. This would enhance the staff member’s experience overseas and also give the opportunity for students within Bahrain to be taught by international experts in logistics and transport.

Universities could also collaborate in terms of research projects. Joint research projects would enable both students and staff in Bahrain to get involved and share expertise with education institutes overseas.

Relationships between the universities and industry would involve selecting and supporting key representatives from the universities and the transport and logistics sector form a ‘skills committee’ to meet quarterly to discuss key skills gaps in the sector and to provide a forum for training courses to be adjusted or revised with industry input considered.



Responsibility

To establish momentum for these linkages, Tamkeen would provide the initial advisory and coordination support to universities and industry for all facets of the linkages. When the appropriate arrangements have been established (that is, a formal exchange program, staff arrangements and sponsored financial support) Tamkeen would pass full responsibility to the universities and industry participants.

Cost

The costs associated with this proposed solution are low. The initial establishment stage for the linkages within the sector and with international institutions would require approximately one year of Tamkeen’s active support. The successful implementation of all these components would be most likely if two full time coordinators from Tamkeen were dedicated to the task of liasing between companies, education institutions and with staff and students.

The combined salaries of these positions (2 full time equivalent jobs) would cost the government approximately BD17 000 per year.

Priority

This solution is of moderate priority to the transport and logistics sector. It links well with and is a less intensive solution to implement than solution 4. Establishing these two-way linkages from within the transport and logistics sector will work to strengthen the skill set and skills potential of the sector.

9.6 Summary

Table 9.1 summarises the possible solutions outlined above that make up an action plan to address skills gaps in Bahrain’s transport and logistics sector (2009-2016).



Table 9.1 ACTION PLAN — TRANSPORT AND LOGISTICS SECTOR

Possible solution Method Responsibility Cost Priority Short-term proposed solutions: Launch an induction program for graduates and job seekers

Develop curriculum in conjunction with consultant experts Implement financial incentive to firms

Undertake 2 workshops on a half yearly basis as a part of industry induction

Tamkeen Employers

Moderate High

Fund bonded scholarships for logis tics postgraduate courses

Choose destination for Bahraini students Government of High Moderate Develop eligibility criter ia for candidates Bahrain Develop conditions for recipients Education institutes

Establish summer internships for students in the BLZ

Establish a bursary for participants Appoint contacts within the universities to coordinate internship programs Engage with industry to identify which companies would like to participate Advertise internships to students Develop feedback survey

Government of Bahrain Ministry of Transportation

Moderate High

Long-term proposed solutions: Provide postgraduate courses in transport and logistics areas

Nominate a host for the course Undertake information gathering trip to understand what academic components work best

Collaborate with industry players to develop a course relevant to Bahrain Appoint appropriate staf f Advertise course to local and international students

Ministry of Education Education institutes

Moderate High

Develop linkages between the sector and international institutions

Facilitate development of student exchange program, staff sabbatical arrangements and research between universities Facilitate relationships between universities and industry so that students can be supported with an obligation to commence employment with a part icular firm upon completion of study.

Government of Bahrain Ministry of Education Education institutes

Low Moderate




Chapter 10

Construction

10.1 Construction overview

The Bahrain construction sector is not experiencing labour shortages alone, rather it is within the context of an international trend. In Bahrain, skills gaps lie in three key areas as discerned from the findings of the labour market analysis, surveys and other reports. These are in:

• induction, administration and technical skills for low-level workers

• tertiary and leaderships skills for high-level Bahraini employees

• human resources skills to assist entrants to jobs within the sector.

Results from the employer survey and current skills gaps identified in the labour market analysis can be used to determine an appropriate number of specific occupations required in 2012, including the future need for:

• 34 000 construction workers

• 3000 engineers/engineering technicians


• 1250 managers.

Stakeholders noted that there was very little training provision for unqualified workers in the construction sector. Employers who completed the survey indicated lower levels of induction, administration and technical training in Bahrain’s construction sector than in other sectors; a preference for in-house training over external training providers; and an intention to continue to provide training ‘sometimes’ in next 12 months. This forms part of the reason for deterring Bahraini nationals from jobs within the construction sector. Employees within construction who have completed school have limited opportunity for further training, whether external or on-the-job training. Stakeholders cited that apprenticeships and technical training for specific jobs rather than across the entire sector were options to address this shortage in training for existing workers. Measures such as these are potentially important incentives for workers given that demand for unqualified workers is and will remain strong.

Skills shortages for Bahraini workers also exist in highly qualified positions within the construction industry. Non-Bahraini workers dominate Bahraini employees across several occupation groups within the construction sector including:

• principal and auxiliary engineers

• scientific, technical and human matters specialists.



Adding to this disparity is the fact that enrolments by Bahrainis (and non-Bahrainis) in post-secondary programs related to the industry have been very low. There were only 37 students in total in the National Diploma in Construction qualification in 2007/2008, and there were no enrolments in, nor graduates of the Master of Science degree in Civil Engineering at University of Bahrain between 2002/03 and 2007/08. Examining the undergraduate scene, the proportion of students graduating from the Bachelor of Science in Civil Engineering is low compared to enrolments.

The current demographic of the sector is such that males are the vast majority of employees. Although traditionally a male dominated sector, it is nevertheless worthwhile to note that the potential of women and their skills in Bahrain’s construction sector is very much untapped.

Evidence from the employer survey indicates that the construction sector has difficulties attracting good candidates to a variety of jobs, much more so than in other sectors. Many jobs advertisements for site managers, project managers, project directors, civil engineers, surveyors, architects, cost planning manager and business development managers are advertised on international recruitment sites because there is a shortage of candidates within Bahrain. This reveals the lack of human resources and training dedicated to increasing the incentives for Bahraini nationals to take a career in the construction sector.


The construction sector is the largest sector of employment in Bahrain and is expected to generate the most new jobs of any sector over the next five years. In 2007, the construction sector employed 115 582 people, comprising 22.9 per cent of the labour force. Non-Bahraini male employees dominated employment and employment growth in the sector.

The labour market analysis in Report 2 revealed that the construction sector workforce was equal to 115 583 in 2007, or 22.9 per cent of Bahrain’s total labour force. There were vastly more non-Bahraini employees than Bahraini employees (by a factor of three to one).

Assuming the status quo, the construction sector workforce is predicted to equal 171 100 in 2012 — an increase of 48.0 per cent. Given the current and expected economic climate, however, an estimate relying solely on the status quo is not considered reasonable for forecasting. Consequently, we have revised our workforce projections for the construction sector, including the following assumptions:



using the historical data plus this shock in the labour market using an 5

autoregressive 1 period model (see Chapter 4).

5 An assumption of a 5 per cent decrease in the non-Bahraini construction labour market was used because the impact of the future economic climate is expected to be harsher on the construction sector than other economic sectors in Bahrain.



On the basis of these assumptions, it is expected that the total construction workforce will reach around 157 000 employees in 2012 (see Figure 10.1). This represents a 35.8 per cent increase in the labour market compared to 2007, a significant decrease in growth from the status quo prediction noted above. Future growth in the construction workforce is expected to come solely from non-Bahrainis. However, these results assume that no additional mechanisms are introduced to improve the participation of Bahrainis in the construction sector.

Figure 10.1 FORECAST LABOUR MARKET — CONSTRUCTION SECTOR TO 2012

Source: (Allen Consulting Group and Eidos); (Labour Market Regulatory Authority 2008).

The construction sector is closely related to most sectors in the economy due to the country’s massive investment in infrastructure, residential and commercial projects. Between 2003 and 2007, the Government of Bahrain issued over 50 000 construction permits. The construction sector has contributed to the development and improvement of banking, insurance and trade services. Skills shortages are contributing to delays in the completion of major infrastructure and development projects that are important to others sectors in the economy such as tourism, transport and health. It is estimated that 12 per cent of major infrastructure projects in Bahrain were on hold in 2008.


Similar to construction sectors in other countries, the construction sector in Bahrain suffers from serious skills shortages; difficulties in attracting and retaining employees; an insufficient supply of industry-ready graduates; inadequate upskilling of existing and/or unqualified employees; education and training programs that do not align with industry needs; and reluctance of employers to release employees to attend training courses.

Education and training reforms to boost the number of Bahrainis working in the sector will not create a sufficient number of workers to meet demand for labour in the sector. Many jobs in the sector require workers with lower levels of knowledge and skills, the majority of which non-Bahrainis will continue to fill. The following solutions do not aim to address the skills shortages and gaps of non-Bahraini employees. Instead they aim to:

• increase the number of Bahrainis in highly skilled positions, thereby reducing

the country’s reliance on expatriates



• provide unqualified Bahrainis who are currently working in the sector with access to recognition of prior learning (RPL) processes, and access to training opportunities to complete any gaps in their knowledge and skills in order to complete a qualification

• ensure that existing Bahraini employees have access to ongoing training and

development opportunities.

The solutions complement the EDB education reform initiatives that are relevant to the construction sector i.e., Bahrain Polytechnic and Secondary Vocational Initiative. However, there are a number of barriers that the Government of Bahrain will need to address if it implements the following solutions to increase training and development opportunities in the sector (Mawer 2005):

• perceived lack of relevance of accredited training, with employers preferring

training that contributes to their short- and long-term business objectives

• inability of training providers to provide on-the-job/on-site training and up-to- date facilities and resources for off-the-job training

• older workers face barriers to participation in skills development including:

employer attitudes; lack of information about options; work and family commitments; financial difficulties; and their own attitudes to participation— including doubts about their ability to succeed (Ferrier, Burke et al. 2008). Almost 40 per cent of employees in Bahrain’s construction sector were 35 years of age or older in 2006 (Labour Market Regulatory Authority 2007).

• issues surrounding continuous skills development for casual and contract

labour, resulting in little incentive or opportunity for employers or employees to undertake regular training

• employers find it difficult to release staff during work time because of the

costs associated with replacing employees as well as having to pay for the training – a challenge particularly felt by small employers

• English language and literacy skills of some employees, which require the

provision of additional assistance.


There are four short-term proposed solutions to address skills gaps that could be considered in the construction sector:

• encourage Bahraini participation in high skilled occupations in the

construction sector

• assess the demand for school-based trade apprenticeships

• recognise prior learning of unqualified employees

• training needs analysis to develop a short course program.



Proposed solution 1: Encourage Bahraini participation in selected high-skill occupations in the construction sector

Bahrain’s construction sector is experiencing many of workforce challenges that are common to construction sectors in other countries. Work in the sector is perceived as dirty, difficult and dangerous (International Labour Organisation 2001), low paid, lacking in job security, and having limited opportunities for training. The proposed solution of a 12-month communication strategy does not aim to address structural challenges in the sector. Instead, it focuses on increasing the participation of Bahrainis in skilled occupations where demand is high and career pathways and work conditions are more attractive.

Method

The communication strategy will target the following groups:

• Potential new entrants and existing workers seeking to work in highly skilled

occupations — the occupation groups of principal and auxiliary engineers; scientific, technical and human matters specialists; and administration directors and managers account for 53 per cent of all jobs in the sector — Bahrainis account for only 20 per cent of these highly skilled jobs (Labour Market Regulatory Authority 2007). Results from this study identified future demand for 4200 engineers/engineering technicians and 800 managers over the next five years. The communication strategy aims to attract Bahrainis to these occupations

• Unqualified existing workers — in 2006, 20 per cent of all Bahrainis working

in the sector were employed in the occupational group of industrial, chemical and food industries in the construction sector (Labour Market Regulatory Authority 2007). Because jobs in this occupational group tend to require lower levels of skills and knowledge, it is likely that many employees in these jobs are unqualified. It is also likely that unqualified or under-qualified Bahrainis are competently working in positions that would normally require formal qualifications. The study proposed in Solution 3 (Recognised prior learning of unqualified employees) will identify the extent and profile of unqualified workers, which will inform the approach taken in the communication strategy to promote recognition of prior learning and gap training to these workers

• Female Bahrainis — female Bahrainis accounted for 0.6 per cent of employees

in the construction sector in 2006 (Labour Market Regulatory Authority 2007). The communication strategy will focus on increasing this figure by encouraging female Bahrainis to pursue highly skilled jobs and fill the estimated 2100 administrative jobs that will be created by 2012

• Employers — the strategy will promote the benefits of training employees

(including returns on investment of training), any training incentives, and available short courses and programs, including those short courses developed as part of Solution 4

• Career counsellors and educational institutions — the strategy will aim to

improve the ability of career counsellors and educational institutions to provide advice to new entrants and existing workers on education and training options and career pathways in the sector.



Responsibility

The Technical and Further Education Directorate (Ministry of Education) and Specific Council for Vocational Training in Construction in partnership with industry, training providers (e.g., Bahrain Polytechnic. Bahrain Training Institute, University of Bahrain, Gulf University) and employee representatives should develop, implement and evaluate the 12-month communication strategy.

Evaluation technique:

• course applications, enrolments and completions

• hits to key websites (e.g., strategy site, training provider sites)

• number of existing employees applying for and completing RPL, undertaking

gap training, and obtaining qualifications

• number of females enrolled in courses and working in the sector

• increase in employer-funded training

• feedback from employers about the impact of training on worker performance and productivity (12 months after communication strategy).

Cost

The cost of the development and evaluation of the communication strategy is expected to be low to medium. The major cost is the implementation of the strategy, which could be medium to high, depending on the communication tools selected.

The Technical and Further Education Directorate (Ministry of Education), Specific Council for Vocational Training in Construction, and training providers should cover the cost of the communication strategy.

Priority

The priority of this solution is high. Over the next five years, the construction sector will create more new jobs than any other sector in Bahrain. If further actions are not taken to increase the number of Bahrainis working in the sector, particularly in highly skilled positions, the country will continue to rely on non-Bahraini skilled labour. Ongoing training and development of employees is essential given that they are working in an increasingly competitive and innovative environment where industry and skills needs change rapidly.



Proposed solution 2: Assess the demand for school-based trade apprenticeships

The Secondary Vocational Institute is an important component of EDB’s education reforms. The initiative is a school-based apprenticeship program that provides students with workplace experience. In the first year of the program students gain a solid foundation in technical and commercial skills and general work-related competencies, and are supported to explore a variety of career options. In year 2 and 3, students have increased access to work placement within companies, industry presentations, industry based projects incorporated into the curriculum and professional development for teachers by industry experts. Students will be able to choose specialised areas in the final year of schooling when entering the professional pathway (Education: Bahrain’s Future 2008).

The technical stream of the school-based apprenticeship program is very relevant to the construction sector. Technical students will be able to enter directly into the applied engineering diploma or degree at the Bahrain Polytechnic. Those students who meet University of Bahrain standards will able to enter various programs after completing a foundation course that is required of all students prior to entry into University (Education: Bahrain’s Future 2008).

This initiative should increase the number of Bahraini engineers/engineering technicians working in the sector from 2012 onwards. The Bahrain Government should consider extending this initiative to include those students who want to pursue trade occupations.

Method

A study should be conducted to determine demand by students and industry for a school-based trade apprenticeship program, identify which trades should be included in the program, and the availability of suitable education and training pathways from school to existing post-school educational institutions. For example, the Department of Civil Engineering Technology at the Bahrain Training Institute currently offers the First Diploma in Building & Construction Technology and National Diploma in Building & Construction Technology.

Responsibility

The National Education Reform Project Management Office and the Technical and Further Education Directorate (Ministry of Education).

Evaluation:

• solutions proposed in the report are supported and implemented

• increase in the number of Bahraini tradespersons working in the construction sector (longer-term).

Cost

This study is an extension of the work already undertaken to develop the features of the current program. The cost of this solution is low.

Priority

The priority of this solution is high.



As employers and stakeholders are concerned about the limited opportunities that school students have to train in the sector, inadequate knowledge and skills of new entrants, and importance of apprenticeships in addressing quality issues.

Proposed solution 3: Recognise prior learning of unqualified employees

Recognition of prior learning (RPL) is a process whereby people are provided with an opportunity to have the skills and knowledge they have developed outside the formal education system assessed and valued against qualifications frameworks (Hargreaves 2006).

Employers benefit from RPL because it:

• saves time because they do not have to repeat learning for skills or knowledge

they already have

• allows fast-tracking to recognise qualifications

• allows for employment-related gains and career development opportunities

• can have a significant impact on self-esteem and motivation

• can satisfy industry licensing arrangements.

Employees benefit from RPL because it:

• provides a way of more effectively and efficiently utilising skills already in the workforce

• allows fast-tracking, which means employees can become fully competent as

quickly as possible

• enables skill gaps to be identified, providing a sound basis for training needs analysis and career planning

• fosters a learning culture, since it builds confidence to undertake further

education and training

• motivates employees.

Effective features of an RPL system include:

• greater promotion, using clear, concise and jargon-free language

• recognition that RPL is a valuable learning experience in its own right

• improved support and approaches to assist students/employees to gather evidence

• experienced professional assessors

• continued efforts to achieve cost-efficient RPL

• promotion of the numerous practical case studies and strategies.

In 2006, 83 per cent of Bahrainis working in the construction sector did not have any post-secondary qualifications compared to 76 per cent of employees for all sectors combined (Table 10.1). There does not appear to be any data that indicates the extent to which these employees are working competently in jobs that require



knowledge and skills above their level of education — an indicator of the number of existing employers who may be candidates for RPL and gap training.

Table 10.1

EDUCATIONAL LEVEL OF BAHRAINI EMPLOYEES IN THE CONSTRUCTION SECTOR AND ALL EMPLOYEES (%), MAY 2007

Level of Education Males Females Total Illiterate (Construction employees) 6.1 0.0 5.6

Illiterate (All employees) 5.2 2.0 4.4

Less than secondary (Construction employees) 40.2 13.3 38.0

Less than secondary (All employees) 28.3 8.0 23.4

Secondary (Construction employees) 37.0 38.3 37.1

Secondary (All employees) 42.2 29.2 39.0

Diploma (Construction employees) 7.6 19.1 8.6

Diploma (All employees) 8.9 20.2 11.7

Bachelor and above (Construction employees) 9.2 29.2 10.8

Bachelor and above (All employees) 15.3 40.6 21.5

Source: (Labour Market Regulatory Authority 2007)

Method

A study to determine the feasibility of establishing an RPL system in Bahrain. The study would identify the features, barriers and costs of different models, and recommend a ‘best-fit’ model(s) for Bahrain.

Responsibility


Evaluation:

• RPL system is introduced

• Increase in the number of qualified Bahraini working in the construction sector (longer-term).

Cost

Cost of the feasibility study is low. The cost of development and implementation of the RPL system is high.

Priority

The priority of this solution is high given the serious skills shortages for qualified employees.



Proposed solution 4: Training needs analysis to develop a short course program

New entrants and existing employees are increasingly required to understand competitiveness and productivity demands. They need skills in project management, business skills, customer service, and new technologies. In the case of new technologies, some employees need specialist knowledge on new construction materials (such as standardised prefabricated components, laser-guided or remote-operated machinery and new energy saving systems), and skills in computer-based applications in design, procurement, communication and management. Employees also need to be aware of occupational health and safety, regulatory and licensing requirements that are relevant to their jobs (Mawer 2005).

Method

A training needs analysis (TNA) should be undertaken to determine the current and future training needs of small, medium and large employers; identify gaps in training offerings; and recommend a training program of short courses that includes delivery preferences of employers and a cost structure that is affordable to employers regardless of size.

Responsibility

Technical and Further Education Directorate (Ministry of Education) and Specific Council for Vocational Training in Construction in partnership with industry, training providers (e.g., Bahrain Polytechnic. Bahrain Training Institute, University of Bahrain, Gulf University).

Evaluation:

• training program of specialist short courses is developed

• course enrolments and completions.

Cost

Cost of the training needs analysis is low. The cost of the implementation of recommendations (development of the short courses/training program) is medium. Courses should be fee-for-service, paid for by employers and/or employees.

Priority

The priority of this solution is high. The solution will assist employees to keep up- to-date with changing industry requirements and innovations.


Additional long-term solutions could be considered as a complement to other solutions. The key long-term possible solution is to include accelerated apprenticeships for trade occupations in a national vocational apprenticeship program.

Proposed solution 5: Introduce accelerated apprenticeships (skilled trade occupations)

Stakeholders who participated in this study identified a need for an apprenticeship system for the construction sector. Apprenticeship training for trade occupations would form part of a national system that is discussed in Chapter 3.



This system should consider that apprenticeship training, particularly for trade occupations, is shifting away from the traditional indentured time-based model of training to more flexible and accelerated models. Reforms aim to ensure that apprenticeship training:

• remains useful and relevant

• includes the right mix for the industry of on- and off-the-job training

• addresses high non-completion rates and difficulties in attracting new

apprentices in areas of major skills shortages.

Accelerated apprenticeships involve up-front training; intensive pre-apprenticeship training; the full application of recognition of prior learning; intensive forms of off- the-job-delivery; and industry investment in workplace mentors. They are expected to assist unqualified employees to gain a formal qualification and attract more mature workers to a trade due to the shorter time period and reduce costs (Callan 2008).

Method

The development of a national vocational apprenticeship program includes the development of accelerated apprenticeships for skilled trade occupations that are in demand in the construction sector.

Responsibility


Cost

The cost of developing and implementing a national vocational apprenticeship system, which includes accelerated apprenticeships for skilled trades occupations, is high.

Priority

Stakeholders in the construction industry identified the need for a national vocational apprenticeship program as high.

10.6 Summary

Table 10.2 summarises the solutions proposed in this section. These solutions aim to increase the number of new entrants, increase the number of qualified Bahraini employees, and provide ongoing training and development opportunities, particularly for unqualified employees.



Table 10.2 ACTION PLAN — CONSTRUCTION

Proposed solution Method Responsibility Cost Priority Short-term proposed solutions: Encourage Bahraini participation in selected occupations

12-month communication strategy

Technical and Further Education Directorate (Ministry of Education) Specific Council for Vocational Training in Construction in partnership with industry, training providers and employee representatives

Low to m edium (community strategy) Medium to high (im plementation)

High

Assess demand for school- based trade apprenticeships

Study to determine demand by students and industry for school-based trade apprenticeships

National Education Reform Project Office Technical and Further Education Directorate (Ministry of Education)

Low H ig h

Recognise prior learning (RPL) of unqualif ied em ployees

Feasibility study to determine need, features, barriers, and costs of RPL system

National Education Reform Project Office Technical and Further Education Directorate (Ministry of Education)

Low H ig h

Training needs analysis (TNA) to develop a short course program

TNA to dem and current and future needs of employers, gaps in training offerings, and training solutions.

Technical and Further Education D irectorate (Ministry of Education) Specific Council for Vocational Training in Construction in partnership with training providers

Low (TNA) Course developm ent and delivery (medium to high)

Hig h

Long-term proposed solutions: Introduce accelerated apprenticeships (skilled trade occupations)

Include accelerated apprenticeships for skilled trade occupations in a national vocational apprenticeship program

National Education Ref orm Project Office Technical and Further Education Directorate (Ministry of Education)

High H igh




Chapter 11

Trade

11.1 Trade overview

The trade sector has shortages in three key areas as discerned from the findings of the labour market analysis, surveys and highlighted in Report 2. These areas are in:

• retail customer service skills

• human resources skills — to assist in career development and retaining

employees within the trade sector

• soft skills — including motivation to work in the trade sector (especially for Bahraini employees) and to enhance this motivation, attracting skilled candidates to jobs within the sector.

Results from the employer survey and the current skills gaps identified in the labour market analysis can be used to determine an approximate number of specific occupations required in 2012, including the future need for:

• 8000 services and sales staff

• 7000 scientist or engineering technicians

• 5200 other trade positions

• 3000 managers


• 1800 business professionals.

Overall, these findings imply that the skills gaps facing the wholesale and retail trade sector is less pressing than other sectors, though there is clear room for improvement in the general skills profile of new recruits.

Evidence from several sources indicate that the trade sector has difficulties attracting good candidates to retail and trade related jobs. That is, the sector lacks the human resources skills to attract prospective employees to the sector. Less than half of surveyed employers are happy with the number of staff currently employed. Some, ‘trade and repair’ establishments have reported difficulties recruiting in certain job positions (13.3 per cent) and more generally, 11.1 per cent of trade sector employees agreed to having experienced this difficulty. In addition, 15.9 per cent of employers did not hire staff because they believed candidates were not of sufficient calibre for the positions being offered. Complementing employer difficulties, 10 per cent of employees noted that they had taken two or more years to commence work after finishing their education. Male non-Bahrainis dominate the trade sector. It seems that the difficulties with employing staff result in current and prospective employees waiting for unnecessarily long periods before being able to enter the trade sector.



Related to attracting and recruiting staff, is also the difficult issue of retaining staff within the sector. The sector as a whole lacks the skills to manage the expectations of training staff and young Bahrainis within the sector. As a result, many employees upon completing training terminate their employment within the sector. It was suggested that increasing succession-planning skills may assist to alleviate this issue.

Stakeholders have identified some specific skills areas that are lacking in the trade sector. These skills relate to retail — retail management and floor management, technical repairs, sales, store keeping, logistics and merchandising. Given this shortage, the sector lacks the capability to train employees in these areas.

The employer survey results, however, suggest that there may be more demand for qualifications at the Certificate/Diploma and Bachelor Degree levels.

Employee survey respondents also commented on the skills they see as important for their jobs (now and in the future). On average, respondents highlighted that physical skills, customer communication skills and planning skills were highly important. These responses varied slightly to those of employer survey respondents. On average, they tended to place greater emphasis on customer and work communication skills, checking skills and numeracy skills.


In 2007, 71 599 workers were employed in trade, comprising 14.2 per cent of the labour force. This included 15 324 Bahrainis and 66 275 non-Bahrainis.

Assuming the status quo, the labour market was predicted to 95 100 in 2012 — an increase of 33 per cent. The trade sector is likely to be exposed to the deterioration in external economic conditions. As a result, an estimate using the status quo alone is not considered reasonable for forecasting. Therefore, a revised scenario for the trade sector has been predicted to 2012, including:



using the historical data plus this shock in the labour market using an autoregressive 1 period model (see Chapter 4).

On the basis of these assumptions, it is expected that the total trade workforce will reach around 92 000 employees in 2012 (see Figure 11.1). This represents a 28 per cent increase in the labour market compared to 2007, a decrease from the 33 per cent change in the status quo prediction noted above.

Employment for Bahrainis is expected to increase by 35 per cent compared to an increase in employment by 27 per cent for non-Bahrainis. However, these results assume that no additional mechanisms are introduced to improve the participation of Bahrainis in the trade sector.



Figure 11.1 FORECAST LABOUR MARKET — TRADE SECTOR TO 2012

Source: (Allen Consulting Group and Eidos); (Labour Market Regulatory Authority 2008).

The trade sector is closely related to several other sectors of the Bahrain economy, particularly tourism and hospitality and transport and logistics. A number of major retail based developments also incorporate tourism and hospitality infrastructure. Also, a significant proportion of retail activity is generated from visitors to Bahrain, many of who arrive from Saudi Arabia via the King Fahd causeway.

Bahrain depends on imports for the majority of its industrial and consumer goods. Consequently, Bahrain’s wholesale sector is largely dominated by import and export agents. Further, Bahrain is a key business and logistical centre, through air land and sea infrastructure, which also contributes to the trade sector.


A number of proposed solutions could be utilised to address skills gaps in Bahrain’s trade sector. Although the trade workforce has grown and is predicted to continue to do so in the future, the sector lacks the capability to train employees across a wide range of skill sets. There will be more demand from employers in the future for better qualified staff particularly retail managers, technical repairs staff and sales staff that hold qualifications at the Certificate/Diploma and Bachelor Degree levels.

Each of these categories and the proposed solutions for consideration are detailed in the sections below.


There are three proposed short-term solutions to address skills gaps that could be considered in the trade sector:

• improve industry collaboration across the sector, given the wide agreement on

the nature of the problems and clear potential benefits from concerted action

• encourage Bahraini participation in trade as a means of meeting demand for part-time work and expanding the overall Bahraini workforce.



Proposed solution 1: Improve industry collaboration across the sector

Method

The trade sector is one of the largest employers in Bahrain. While there are some distinguishing features of wholesale trade compared to retail trade, there are common labour market issues confronting trade sector employers. Employers are therefore likely to benefit from a collaborative approach to addressing these issues. A collaborative approach is likely to be a prerequisite if Bahrain is to successfully address the cross-sectoral labour market issues identified in Report 2.

The current institutional arrangement for industry collaboration is based on the Bahrain Chamber of Commerce and Industry’s (BCCI) sub-committees. In the first instance, efforts should be directed towards improving collaboration through this structure. However, a future model could be based on the establishment of a retail and wholesale trade employers association.

The benefits of greater collaboration across the industry include:

• development of agreed industry positions as an input to government decision

making

• enhanced ability of industry to develop collaborative responses to the labour market issues it confronts.

For example, the shortage of retail skills is a problem confronting many retail businesses. Similarly, negative perceptions associated with working in the trade sector could be addressed by a combined industry approach.

The development of an industry wide strategy to address these issues will be more effective than depending on individual businesses acting in isolation. In both of these examples, there is a potential shared benefit across the trade sector.

As stated below, the BCCI has a key role to play as a catalyst and facilitator. As an initial step the BCCI could advise business leaders of its intention to revitalise industry engagement across the sector, in response to the labour market issues confronting trade businesses, as identified by Tamkeen. The BCCI could invite business leaders from across the trade sector to participate in a roundtable discussion with a view to forming a strategy for industry collaboration.

Responsibility

The ultimate responsibility for a more collaborative approach rests with the wholesale and retail trade industry itself. Business leaders within the industry who see the potential benefits will need to make a commitment to this strategy. They will however require the active leadership of the BCCI.

While the BCCI should initiate the process, the development of strategies to respond to the issues confronting the sector will rest with business representatives of the sector.

As with any industry based strategy, it is important to ensure that business representatives have meaningful opportunities to participate, and that the representatives of the sector who drive the development of strategy are representative of industry. This should include representatives from: wholesale and retail trade; large and small business; different forms of retail (modern and traditional); and retailers based in locations other than Manama.



The level of industry engagement and support would be an initial measure of success. A further measure would be the ability of the trade sector to develop industry wide strategies, which respond to the key challenges facing the trade sector.

Cost

The cost of reinvigorating a more collaborative approach by industry would be low. However, proposals developed by the industry would be likely to involve a cost. These costs could be borne by government or by the industry itself or a combination of both. Similar industry bodies elsewhere have a permanent secretariat funded by industry contributions. This enables the secretariat to carry out work on behalf of the governing committee on an ongoing basis.

Priority

Of the four priority areas, this will have a high impact on better meeting the needs of labour demand, and a low to medium direct impact on the other areas. However, as improved industry collaboration will underpin the other solutions described in this report, this is considered a high priority overall, as it will enable the other issues confronting the trade sector to be dealt with more effectively.

Proposed solution 2: Encourage Bahraini participation in trade employment

Method

As identified in Report 2, trade employers have generally found it difficult to attract high quality employment candidates. Also, non-Bahraini males dominate employment in the trade sector, accounting for approximately 80 per cent of all employees.

Improving the overall perception of careers in the trade sector among Bahrainis will address the imbalance in the employment of Bahrainis. This in turn will assist in overcoming the overall shortage of quality candidates.

Tamkeen is directing considerable effort to provide quality retail training. The most recent example of this is the agreement with Bahrain International Retail Development (BIRD) for a new program to facilitate training for a further 1500 retail jobs for young Bahrainis. This and similar programs are presently the major inducement to Bahrainis considering careers in retail trade. Building on this initiative, a broader effort to improve perceptions of careers in trade could be developed.

This would involve government working in partnership with the trade industry, possibly through Tamkeen or the BCCI, to develop a communication strategy with the objective of improving the perception of careers in trade. This would highlight the benefits of trade as an attractive career choice, with a focus on communicating this message among Bahrainis.

Specific themes in the communication strategy could include such statements as:

• there are aspects of working in trade, such as the opportunities of part-time

employment, which offer benefits in terms of work life balance

• there are diverse career paths in trade, including wholesale, retail, administration and management



• there are significant training opportunities for those working in the sector.

On the latter point, while the trade training programs for young Bahrainis are commendable, consideration should also be given to developing training programs to assist in career progression for those already working in trade. This could be based on an industry accreditation system, which recognises progression in qualifications and experience.

The communication strategy should recognise the opportunity to attract more Bahraini women to employment in trade. There is a growing pool of Bahraini women with trade related training. The gender balance of trainees at the Bahrain Institute of Hospitality and Retail indicates this: just over half the 489 current or completed students are female.

Relatively low levels of remuneration detract from trade’s attractiveness for many Bahrainis. This is a structural issue in the sense that trade is a relatively low paid sector in most labour markets. Remuneration is likely to be an issue requiring longer-term consideration. In the short-term, focussing on the benefits of careers in trade, is seen as the most appropriate strategy.

Responsibility

Ideally, the communication strategy should be developed by the trade industry itself. This could be an initial priority for the revitalised trade industry sector, under the auspices of the BCCI sub-committee as described above.

A measure of success would be the level of Bahraini employment in trade as a proportion of the overall trade workforce.

Cost

The cost of developing and implementing a communication strategy would be in the medium range. It is likely to involve engagement of communication professionals, the development of communication material and the distribution of material and messages through various media. Cost would depend on the use of paid advertising and public relations activities.

This cost should be borne by industry, although funding from the training providers and possibly Tamkeen should also be sought, given that they will also benefit from the outcome of a communication strategy.

Priority

Of the four priority areas, this will have a high impact on increasing Bahraini labour supply participation and a low impact on the other areas. Overall, it is assessed as medium priority.


An additional long-term proposed solution should also be considered as a complement to other solutions. The key long-term proposed solution is to:

• improve the quality and relevance of trade training and education.



Proposed solution 3: Improve the quality and relevance of trade training and education

Method

Report 2 has identified a possible mismatch between the skills demanded of employees by trade employers and the skills of prospective employees. There are some relatively specific skills that require further development in this sector. For example: advanced customer service, English proficiency, retail management, merchandising and technical skills. As discussed above, trade faces a dilemma in that it is not viewed as favourably among Bahrainis as some other sectors. Consequently, Bahrainis with English skills may opt for jobs in other sectors. Solution 2 is intended to go some way to addressing this. Also though, it is necessary to examine the quality and relevance of trade training and education to ensure it is meeting the needs of the trade industry.

In addition to the trade relevant qualifications offered by the Baisan Institute of Hospitality Management, the Bahrain Institute of Hospitality and Retail, Bahrain International Retail Development and the Bahrain Training Institute, trade is well suited to training modules. This is particularly the case for existing employees. While young Bahraini school leavers are the primary market for full qualifications, existing trade employees are a significant potential market for training modules.

As mentioned in Solution 2, this approach could be based on an industry accreditation system, which recognises progression in qualifications and experience. This would also assist in improving retention among trade employees.

Modules could be focussed at areas of skill demand described above, which were identified in Report 2. Existing training providers could deliver these modules, with the cost met by employers and possibly subsidised by Tamkeen as part of its overall focus on developing the Bahraini trade sector workforce.

Report 2 also indicated that 75 per cent of trade employers that responded to the survey identified a bachelor degree as the minimum qualification for a new employee at the manager and business executive level. A relatively sizeable proportion of those working (over 28 per cent in the 2008 survey) in trade reported having a bachelor degree or higher. This suggests an opportunity to develop a trade oriented bachelor’s degree program at university level. This could take the form of a bachelor of business management with a major in wholesale and retail trade. This would be developed for two purposes: firstly, as a degree for those interested in a management level career in the trade sector; secondly, to further reinforce the perception of trade as a sector with diverse career opportunities, incorporating skills and knowledge requiring university level qualifications. The degree would be offered through the University of Bahrain.

Responsibility

Tamkeen would be well placed to take a leadership role in progressing this solution, in partnership with the trade industry through the BCCI. Partners would also include the training institutes mentioned above and the University of Bahrain.

Success could be measured by tracking these metrics: level of enrolments by qualification and modules; completion of qualification and modules; and, employment outcomes for both non-completers and completers of qualifications and modules.



Cost

The training modules would be of medium cost given that they would initially be based on a component of an existing qualification. There would be marketing costs but this should be incorporated in the communication strategy described above. Course fees for training modules would be met by employers, but as a transition measure, Tamkeen should consider a subsidy to reduce the cost to employers and encourage participation by existing trade employees.

The cost of including a trade major in the Bachelor of Business Management offered by the University of Bahrain would also be in the medium range. The university could be supported in meeting this cost with establishment funding from Tamkeen. If the program proved successful, this would be funded from student fees in the same manner as other degree programs.

Priority

Of the four priority areas, this will have high impact on increasing the skills competency of the labour force, medium impact on improving the education system to aid skills development and low impact on the other areas. Overall, it is assessed as medium priority.

11.6 Summary

Table 11.1 summarises the possible solutions outlined above that make up an action plan to address skills gaps in Bahrain’s trade sector (2009-2016).



Table 11.1 ACTION PLAN — TRADE

Possible solution Method Responsibility Cost Priority Short-term solutions: Improve industry collaboration across the sector.

Develop an industry wide strategy to address labour market issues confronting the trade sector. Develop a collaborate strategy driven by the industry.

BCCI to initiate the process

Low H igh

Encourage Bahraini participation in trade

Improving the overall perception of careers in the trade sector among Bahrainis will address the imbalance in the employment of Bahrainis. This in turn will assist in overcoming the overall shortage of quality candidates. Tamkeen working in partnership with the trade industry, possibly through the BCCI, to develop a communication strategy with the objective of improving the perception of careers in trade.

BCCI in partnership with trade industry

Medium Medium

Long-term solutions: Improve the quality and relevance of trade training and education.

Develop training modules directed at existing trade employees. Modules could be focused at areas of skill demand identified in Report. Existing training providers could deliver these modules, with the cost met by employers and possibly subsidised by Tamkeen as part of its overall focus on developing the Bahraini trade sector workforce. Develop a trade oriented bachelor’s degree program through the University of Bahrain. This could take the form of a bachelor of business management with a major in wholesale and retail trade.

Tam keen BCCI Training Institutes University of Bahrain

Medium Medium




Appendix A

Criteria for proposed solutions

Economic sector

CRITERIA 1:

Proposed solution meets goal(s) of the

strategy

CRITERIA 2:

Proposed solution is achievable/ implementable

CRITERIA 3:

Proposed solution is likely to be cost-

effective

CRITERIA 4: Proposed solution has some support

among stakeholders consulted

CRITERIA 5:

Proposed solution provides an

outcome quickly

CRITERIA 6:

Aids development in a strong private sector

KEY FOCUS AREAS

Manufacturing Joint initiatives focusing on üüü üüü üü ü ü ü manufacturing trades

Stocktake of manufacturing skills ü üüü üüü üü üü ü needs and education provider capacity

Assist manufacturing companies to ü üü üü ü üü üü hire skilled non-Bahrainis

Vocational apprenticeship program üüü üü üü üü û üü

Manufacturing careers exhibition üü üüü üü üü û üü

Subsidise Bachelor of Engineering üü ü ü üü û üü degrees at University of Bahrain Health Grow the private sector to maintain üü ü üü üü ü üüü quality health

Expand existing training facilities to üüü üü ü üü û ü enhance the health workforce

Fund bonded scholarships üü ü ü üü û üü

Target young female Bahrainis üü üü üüü üüü üü ü

Further develop medical specialties üüü ü ü üüü û üü

Provide short courses in health üü üü üü üü û ü management and coordination



Economic sector

CRITERIA 1:


strategy

CRITERIA 2:


CRITERIA 3:


effective



CRITERIA 5:


outcome quickly

CRITERIA 6:


Tourism and hospitality Awareness raising of the sector to ü üüü üü üü üü üü Bahraini workers

Develop a cultural tourism short üü üü üü üüü ü üü course

Develop an e-tourism short course üü üü üü üüü ü üü

Stocktake of health tourism skills ü üüü üüü ü ü üü

Include tourism in a national vocational üü ü üü üü û ü apprenticeship system Infrastructure and service Improve linkages between supporting üü üüü üü üüü ü üüü sectors and training providers

Develop industry internship program üü üü üü üüü ü üü

Extend the ‘regular stocktake of skills needs and provider capacity’ to the public administration, business services, and IT and telecom munications sectors Strengthen focus on mathematics and science in secondary schools Establish a National School for executive training in governance, public policy and administration

ü üüü üüü üü üü ü

üüü ü ü üüü û üü

üü üü ü üü û û

OTHER SECTORS

Transport and logistics Launch an induction program for üü üü üü ü ü üü graduates and job seekers



Economic sector

CRITERIA 1:


strategy

CRITERIA 2:


CRITERIA 3:


effective



CRITERIA 5:


outcome quickly

CRITERIA 6:


Fund bonded scholarships for logistics ü üüü üü üü û ü postgraduate courses

Establish summer internships ü üü üü üü ü üü

Provide postgraduate courses in üü ü ü ü û ü transport and logistics areas

Develop linkages between the sector ü üü ü ü û ü and international institutions Construction Encourage Bahraini participation ü üü ü üü üü üü

Assess demand for school-based trade ü üü ü üü ü üü apprenticeships

Recognise prior learning of unqualified ü üü ü ü û ü employees

Training needs analysis to develop a üü üü üü üü ü ü short course program

Introduce accelerated apprenticeships üü ü ü ü û ü (skilled trade) Trade Improve industry collaboration across üü üü üü üü ü ü the sector.

Encourage Bahraini participation ü üü ü üü üü üü

Improve the quality and relevance of üü üü üü üü û ü trade training and education.

Note: üüü = largely meets criteria, üü = significantly meets criteria, ü = meets criteria to a small extent, û = does not meet criteria. Source: (Allen Consulting Group and Eidos).



Appendix B

References

Central Informatics Organisation (2008). "2007 National Accounts." Kingdom of Bahrain.

Civil Service Bureau (CSB) (2008). "Spreadsheet of employees by ministry and citizenship, 2002 to 2008." Kingdom of Bahrain.

Deloitte (2008). "Health Tourism." Consumers in Search of Value.

Economic Development Board (2004). Reforming Bahrain's Labour Market: Summary of Workshop Presentations. Manama.

Economic Development Board (2005). Economic Reform Vision for Bahrain: Economic Policy Workstream. Manama.

Education: Bahrain’s Future (2008). National Education Reform.

Ferrier, F., G. Burke, ,, et al. (2008). "Skills development for a diverse older workforce." Adelaide: NCVER.

General Organisation for Social Insurance (GOSI) (2008). "Extract from GOSI Database as at June 2008." Kingdom of Bahrain.

Hargreaves, J. (2006). "Recognition of prior learning: At a glance." Adelaide NCVER.

Health Information Directorate (2008). Health Statistics 2007. Bahrain, Ministry of Health.

International Labour Organisation (2001). The construction industry in the twenty- first century: Its image, employment prospects ad skill requirements.

International Labour Organization. (2007). "Key indicators of the Labour Market Program - Chapter 7." Retrieved 13 August 2008, from http://www.ilo.org/public/english/employment/strat/kilm/download/kilm18.pdf

International Monetary Fund (2009). World Economic Outlook Update. January 2009. Washington DC.

Labour Market Regulatory Authority (2007). Data provided through Tamkeen on the Average Public Sector Earnings in 2007. Manama.

Labour Market Regulatory Authority (2007). Labour Market Survey May 2007 survey data.

Labour Market Regulatory Authority. (2008). "Bahrain Labour Market Indicators." from http://www.lmra.bh/blmi.

Learning and Skills Council. (2009). "National Employer Skills Survey." Retrieved 10 March, 2009, from http://research.lsc.gov.uk/LSC+Research/published/ness/.

Mawer, G., & Jackson, E., (2005). Training of Existing workers. Issues, incentives

and models. Adelaide. NCVER.

http://www.ilo.org/public/english/employment/strat/kilm/download/kilm18.pdf

http://www.lmra.bh/blmi

http://research.lsc.gov.uk/LSC+Research/published/ness/

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