oman employment report - oxford strategic...

Oxford

Oman Employment ReportInsights for 2016

AuthorsDr. Najat Benchiba-SaveniusRobert MogielnickiScott OwensProfessor William Scott-Jackson

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Oman Employment Report: Insights for 2016 – Contents

www.oxfordstrategicconsulting.com

1 www.oxfordstrategicconsulting.com

ContentsIntroduction 2

Methodology 4

Sample Breakdown 6

Results 8

Analysis 24

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Oman Employment Report: Insights for 2016 – Introduction


Introduction


In December of 2015, Oxford Strategic Consulting conducted a survey of Omani nationals on their opinions pertaining to employment in the Sultanate. This report provides a summary of the results and offers new insights underpinning the current and future aspirations of Omanis which will serve as a useful tool to both the private and public sectors as well as governments and organisations. It is clear that there are significant and dynamic shifts in the labour market in terms of motivation, ideal careers, goals and approaches to employment for the under 30s.

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Oman Employment Report: Insights for 2016 – Results

Methodology


We asked 300 Omani nationals aged under 30 about their views and attitudes towards employment in Oman.

▪ Interviews were conducted over the phone by a third party fieldwork provider.

▪ The survey covered their motivations, perceptions of the best employers, their ideal job role, the best way for employers to attract nationals, the most & least attractive employment sectors, the importance of the private sector and difficulties faced when searching for jobs.

▪ The results have been presented at an overall level and also split by gender, age, region, working status and employment sector. Chi square and correlation tests have been carried out where appropriate.

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Oman Employment Report: Insights for 2016 – Sample Breakdown


Sample Breakdown


54%50% 41%

40%

52%

19%

48%50%

46%Male Female

Agedbetween

22-29

Sur

Agedbetween

16-21

Sohar

Muscat

Working in government and semi-government

Working in private sector or family businesses

▪ The survey was nationally representative of males (46%) and females (54%)

▪ Respondents were aged between 16 and 29 years old

▪ Gen Z - 50% were aged between 16 and 21 years old (mainly students)

▪ Gen Y - 50% were aged between 22 and 29 years old (mainly working full or part-time)

▪ Responses were broadly representative across regions

▪ Muscat (41%)

▪ Sohar (40%)

▪ Sur (19%)

▪ Over half 52% worked in government or semi-government roles and 48% worked in either the private sector or family businesses



Results

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MotivationsRespondents were asked to select up to three things that motivated them the most in life.

Top-line InsightsRespondents were most likely to be motivated by money (76%). Challenge (28%) and travel (28%) were also popular motivators.

Less than one out of ten were motivated by responsibility (7%).

Demographic InsightsMales were significantly more likely than females to be motivated by challenge (36% vs. 21%) and influence (31% vs. 14%). Whereas females were significantly more likely than males to be motivated by travel (33% vs. 23%) and making their family proud (20% vs. 9%).

There were no significant differences between age groups.

Those living in Muscat were the most likely to be motivated by work-life balance (28%). Those living in Sohar were the most likely to be motivated by money (90%). Those living in Sur were the most likely to be motivated by helping the country / contributing to society (34%).

Those working full or part-time were significantly more likely than students to be motivated by challenge (37% vs. 19%).

Those working in government or semi-government roles were significantly more likely than those working in the private sector to be motivated by challenge (48% vs. 25%). Whereas those working in the private sector were significantly more likely than those working in government or semi-government roles to be motivated by money (81% vs. 68%), work-life balance (31% vs. 13%) and making their family proud (20% vs. 8%).

Which of the following motivates you the most?

Money 76%

Challenge 28%

Travel 28%

Development 23%

Influence 22%

Work-life balance 19%

Making my family proud 15%

Help the country and/orcontribute to society

14%

Excitement 13%

Recognition 12%

Responsibility 7%0% 100%



Industry of ChoiceRespondents were asked to select which industries they would most like to work in at present. They were allowed to select multiple industries.

Which of the following industries would you most like to work in?

Government/Public Sector

0% 100%

38%

Banking and Finance 32%

Oil and Gas 21%

Aviation 17%

Real Estate 12%

Computers/IT 11%

Construction 11%

Health Care 9%

Telecommunications 7%

Industrial 6%

Media 6%

Aerospace 5%

Utility 5%

Tourism and hospitality 5%

Defence and Security 4%

Legal 4%

Manufacturing 3%

Retail 3%

Shipping 2%

Chemical/Pharmaceutical 1%

Agriculture 0%


Top-line InsightsAlmost four out of ten respondents felt their ideal career was working for the Government / Public Sector and a third wanted to work in Banking & Finance (32%). A further 21% felt their ideal career was working in Oil & Gas and 17% wanted to work in Aviation.

Demographic InsightsMales were significantly more likely to desire a career in Oil & Gas (26% vs. 15%), Real Estate (17% vs. 7%) or Industrial (9% vs. 3%). Whereas females were significantly more likely to desire a career in Banking & Finance (43% vs. 23%).

Gen Z (aged 16-21) were significantly more likely than Gen Y (22-29 Years) to desire a career in Telecommunications (10% vs. 4%) or Industrial (10% vs. 2%).

Those living in Muscat were the most likely to desire a career working in Oil & Gas (32%) or Real Estate (18%). Those living in Sohar were the most likely to desire a career working in Construction (24%), Health Care (15%) or Aerospace (13%). Those working in Sur were the most likely to desire a career working in Government / Public Sector (50%), Aviation (41%) or Defence & Security (10%).

Those working full or part-time were significantly more likely to desire a career working in Real Estate (16% vs. 8%). Whereas students were significantly more likely to desire a career working in Oil and Gas (27% vs. 15%).

Those working in government or semi-government roles were significantly more likely to desire a career working in Aviation (24% vs. 8%) or Computers/IT (15% vs. 4%). Whereas those working in the private sector were significantly more likely to desire a career working in Oil & Gas (25% vs. 7%), Industrial (10% vs. 0%) or Retail (6% vs. 0%).



Employers of ChoiceRespondents were asked to mention up to five organisations they would ideally like to work for in the future. The 300 respondents mentioned a total of 988 organisations – an average of three per respondent. The chart below displays the organisations which were mentioned at least seven times or more by respondents.

Top-line InsightsAlmost half of respondents (44%) would ideally like to work for the Public Sector, a Government Ministry or Municipality in the future. The government ministries they were most likely to mention Ministry of Housing (13%), Ministry of Environment & Climate Affairs (7%) and Ministry of Education (3%). A further 4% mentioned Muscat Municipality.

Over a quarter (26%) would like to work for Royal Court Affairs and 11% for Oman Air.


Demographic InsightsMales were significantly more likely to want to work for Petroleum Development Oman (12% vs. 4%) or Orpic (9% vs. 1%). Whereas females were significantly more likely to want to work for Muscat Bank (15% vs. 6%), Omantel (12% vs. 5%) or Oman National Bank (12% vs. 5%).

Gen Y (22-29 Years) were significantly more likely than Gen Z (16-21 Years) to want to work for Royal Court Affairs (35% vs. 19%).

Those living in Muscat were the most likely to want to work for Petroleum Development Oman (14%) or Central Bank of Oman (10%). Those living in Sohar were the most likely to want to work for Galfar Construction (17%), a hospital (17%) or International Marble Company (17%). Those living in Sur were the most likely to want to work for Oman Air (24%) or Omantel (17%).

Those working full or part-time were significantly more likely to want to work for Oman Insurance Company (6% vs. 1%), whereas students were significantly more likely to want to work for Petroleum Development Oman (14% vs. 3%) or Omantel (12% vs. 5%).

Those working in the private sector were significantly more likely than those working in government or semi-government roles to want to work for the Public Sector, a Government Ministry or Municipality (52% vs. 35%).

Please tell us the top five organisations you would ideally like to work for in the future.

Public Sector, GovernmentMinistry or Municipality

44%

Royal Court Affairs 26%

Oman Air 11%

Muscat Bank 10%

Petroleum Dev. Oman 9%

Omantel 8%

Oman National Bank 8%

Galfar Construction 8%

Hospital 7%

International Marble Co. 7%

Central Bank of Oman 6%

Orpic 6%

D X Construction 4%

Oman Insurance Company 4%

CAD Middle East 3%

School 3%

Oman Airports 3%

Al Naba Construction 2%

Abu Dhabi Bank 2%

British Petroleum 2%0% 100%



Ideal Job RoleRespondents were asked to select their ideal job role. They were allowed to select as many job roles was they wanted.

Top-line InsightsOver a third of respondents wanted to run their own business (34%), 22% wanted to be business leaders and 17% wanted to join their family business.

Administration (28%), Engineering (16%) and Accountancy (16%) were also popular career choices.

What would be your ideal role in the future?

Running my own business 34%

Administration 28%

Business Leader 22%

Join Family Business 17%

Engineering 16%

Accountancy 16%

Human Resources 12%

Caring for others 7%


Teacher or Lecturer 5%

Customer Service 4%

IT/Computing 4%

Journalism or Media 4%

Advertising, Marketing andPublic Relations 4%

Military 4%

Medical role 3%

Lawyer or Legal Advisor 2%

Police 2%

Retail 1%

Tourism and hospitality 1%0% 100%


Demographic InsightsMales were significantly more likely than females to consider their ideal job role as:-

▪ Running my own business (39% vs. 27%)

▪ Administration (34% vs. 22%)

▪ Business Leader (30% vs. 12%)

▪ Engineering (21% vs. 11%)

Females were significantly more likely than males to consider their ideal role in Human Resources (18% vs. 8%).

Gen Z (16-21 Years) were significantly more likely to consider their ideal role in Human Resources (16% vs. 8%), whereas Gen Y (22-29 Years) were significantly more likely to consider their ideal role as Administration (34% vs. 23%) or Teaching (8% vs. 1%).

Those working in Muscat were the most likely to consider their ideal role in Human Resources (19%). Those working in Sohar were the most likely to consider their ideal role in Engineering (21%). Those working in Sur were the most likely to want to join the family business (29%).

Those working full or part-time were significantly more likely to consider their ideal role in Teaching (9% vs. 0%), whereas students were significantly more likely to consider their ideal role in Accountancy (20% vs. 12%).

Those working in government or semi-government roles were significantly more likely to consider their ideal role in caring for others (13% vs. 3%), whereas those working in the private sector were significantly more likely to consider their ideal role as a business leader (37% vs. 8%).



Least Favoured IndustryRespondents were asked to select which industries they would least like to work in. They were allowed to select as many industries as they wanted.

Which of the following industries would you least like to work in?

Aerospace 20%

Aviation 18%

Media 13%

Real Estate 10%

Construction 10%

Manufacturing 8%


Agriculture 8%

Defence and Security 7%

Industrial 7%

Computers/IT 7%

Government/Public Sector 6%

Tourism and hospitality 6%

Legal 5%

Shipping 5%

Health Care 5%

Telecommunications 5%

Utility 5%

Chemical/Pharmaceutical 4%

Retail 3%

Oil and Gas 3%0% 100%


Top-line InsightsThe two least popular industries to work in were Aerospace (20%) and Aviation (18%). Media (13%), Real Estate (10%) and Construction (10%) were also frequently selected as industries where respondents would least like to work.

Demographic InsightsMales were significantly more likely to select Defence & Security (12% vs. 2%), Industrial (10% vs. 4%) and Chemical/Pharmaceutical (7% vs. 1%). Whereas females were significantly more likely to select Manufacturing (13% vs. 4%) and Retail (7% vs. 1%).

Gen Z (aged 16-21) were significantly more likely than Gen Y (22-29 Years) to select Aviation (28% vs. 7%), Manufacturing (12% vs. 4%) and Tourism (9% vs. 3%) as the industries they would least like to work in.

Those living in Muscat were the most likely to select Media (22%), whereas those living Sohar were the most likely to select Aviation (28%) as the industries they would least like to work in. Those living in Sur were the most likely to select Manufacturing (18%).

Those working full or part-time were significantly more likely to select Media (18% to 7%) and Real Estate (14% vs. 6%) as the industries they would least like to work in. Whereas students were significantly more likely to select Aviation (23% vs. 13%), Manufacturing (14% vs. 3%), Defence and Security (13% vs. 3%) and Health Care (8% vs. 1%).

Those working in government or semi-government roles were significantly more likely to select Real Estate (23% vs. 4%) as the industry they would least like to work in, whereas those working in the private sector were significantly more likely to select Construction (15% vs. 4%), Government / Public Sector (16% vs. 4%), Tourism (10% vs. 1%), Legal (9% vs. 0%) and Shipping (9% vs. 0%).


Importance of the Private SectorRespondents were asked to rate how important the private sector was for the employment of Omanis in their country.

Top-line InsightsNearly half of respondents (44%) felt the private sector was extremely (16%) or very important (28%) for the employment of Omani nationals. A further 47% felt it was somewhat important and only 9% felt it was not important.

Demographic InsightsMales were significantly more likely than females to feel the private sector was important for the employment of Omani nationals (52% vs. 34%).

There were no significant differences between age groups.

Those living in Sur (55%) or Muscat (54%) were significantly more likely than those living in Sohar (28%) to feel the private sector was important for the employment of Omani nationals.

Students were significantly more likely than those working full or part-time to feel the private sector was very important for the employment of Omani nationals (26% vs. 7%).

Those working in the private sector were significantly more likely than those working in government or semi-government roles to feel the private sector was important for the employment of Omani nationals (51% vs. 33%).

1% 8% 47% 28% 16%

How important is the private sector for the employment of Omanis in your country?

Not important at all Of little importance Somewhat important

Very important Extremely important



Top-line InsightsLess than four out of ten respondents (37%) felt it was very (4%) or fairly easy (33%) for an Omani national to find a job. A further 37% felt it was neither easy nor difficult and 26% felt it was difficult.

Demographic InsightsThere were no significant differences between gender, age, working status and sector.

Those living in Sur (50%) or Muscat (41%) were significantly more likely than those living in Sohar (27%) to feel it was easy for an Omani national to find a job.

Ease of finding a jobRespondents were asked to rate how easy or difficult it was for an Omani to find a job in their country.

1% 25% 37% 33% 4%

How easy or di�cult is it for an Omani to find a job in your country?

Very difficult Fairly difficult Neither easy nor difficult

Fairly easy Very easy


Difficulty Sourcing EmploymentRespondents were asked to select any difficulties Omanis faced finding jobs. They were allowed to select as many difficulties as they wanted.

Top-line InsightsOver four out of ten respondents felt the main difficulty nationals faced when finding a job was the hours were too long (41%). Over a further third (35%) felt the pay was too low and 23% felt there were not enough suitable jobs for nationals.

Demographic InsightsThere was no significant difference between males and females.

Gen Z (16-21 Years) were significantly more likely to feel the main difficulty to finding a job was nationals not wanting to employ other nationals (22% vs. 9%). Whereas Gen Y (22-29 Years) were significantly more likely to feel the main difficulties to finding a job were long hours (50% vs. 33%) or low pay (40% vs. 29%).

Those living in Muscat were the most likely to select low pay (50%) and not hearing about jobs (30%). Those living in Sohar were the most likely to select nationals not wanting to employ other nationals (18%). Those living in Sur were the most likely to select lack of suitable jobs (41%).

Those working full or part-time were significantly more likely to feel the main difficulty to finding a job was long hours (50% vs. 31%), whereas students were significantly more likely to select nationals not wanting to employ other nationals (24% vs. 8%).

Those working in government or semi-government roles were significantly more likely to feel the main difficulties to finding a job were long hours (58% vs. 41%) or not knowing how to do an interview (18% vs. 6%). Whereas those working in the private sector were significantly more likely to select low pay.

What di�culties (if any) do Omanis face finding jobs?

Hours are too long 41%

Pay is too low 35%

Not enough suitable jobs 23%

Don’t hear about jobs 21%Nationals don’t want to

employ nationals 16%

Don’t know enoughgood contacts 11%

Expats don’t want toemploy nationals 11%

Don’t know how todo an interview 10%

Don’t know how towrite a CV 8%

Don’t want to workjust with expats 6%

Don’t know how toapproach compnies for jobs 3%

No difficulties 3%0% 100%

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Oman Employment Report: Insights for 2016 – Analysis


Analysis


Maximising Omani Female TalentThe survey found that Omani males are significantly more likely to be working full time, compared to women1. Given the large number of employable female Omanis, this area needs to be addressed by both public and private sectors alike to tap into the huge potential of the female labour force. Targeted recruitment drives and campaigns should address how to attract more females into the work place, bearing in mind social and cultural responsibilities and reflecting high educational standards in the Sultanate.

On the employer side, organisations could target the second wave of employment for women looking to re-enter the labour force after marriage and children. Employment agencies, refresher courses and continuing education initiatives for women would be especially useful for those Omani women looking to return to work. Employers could also introduce flexible hours, female-only work environments and remote work as additional incentives to target more female employees.

Female employment preferences should also be taken seriously. For example, Oxford Strategic Consulting’s survey found that females were significantly more likely than males to consider their ideal role in Human Resources (18% vs. 8%). Therefore, Oxford recommends the creation of a company that provides outsourced HR services and is staffed by women working remotely. This would serve as an exciting employment option for many Omani females.

These initiatives align with the Omanisation targets set by Sultan Qaboos. As a subset of this national target, Oxford Strategic Consulting believes that Omani Womanisation should be promoted and could provide a much-needed catalyst for recruitment drives across the Sultanate.

1 Test: correlation: r = -.177, p < .01.

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Industry Makes a DifferenceOmani males are nearly four times more likely than women to consider working in the medical industry2. The Ministry of Health, Oman’s largest employer, and both public and private sectors would also find these results very encouraging as there is a constant need to bolster the number of medical professionals in the Sultanate.

Omani men are two and a half times more likely to consider working in tourism and hospitality when compared to women3. The Omani national and international hospitality and tourism industries should maximise male talent by offering targeted graduate schemes, scholarship programs and training.

Finally, individual industries require specific skills. Oxford Strategic Consulting recommends that Omani nationals be adequately trained and accredited through globally-recognised awarding bodies, such as the Chartered Management Institute (CMI) and CIPD, to better enable them to serve as leaders within their industries.

2 Test: Chi Square (1) = 8.797, p < .01, Odds Ratio = 3.81.

3 Test: Chi Square (1) = 5.910, p < .05, Odds Ratio = 2.52.


A Strategic Approach to Job MatchingIn order to productively increase youth employment and sustain its momentum, matching jobs with established skill-sets is imperative to create an enabling work environment. Moreover, job satisfaction for young Omanis, who represent a large pool of national talent, is critical as they can help foster and build more competitive and sustainable economies for the Sultanate.

Oxford Strategic Consulting found that four out of ten respondents felt the main difficulty Omanis faced when finding a suitable job was that the hours were deemed too long (41%) for what they considered was appropriate. In addition, over a further third (35%) felt the pay was too low for their educational level and skills. Approximately 23% felt there were not enough suitable jobs. Clearly there is room for better aligning expectations between employers and Omani candidates.

Given Oman’s substantial investment in education and national projects, recruiters and key stakeholders alike should consider employment challenges that Omanis face at the outset. This would allow employers to better identify and implement workable solutions.

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Money MattersMoney ranked as the most significant motivator for Omanis, and Omanis were significantly more likely than Saudi, Emirati and Qatari nationals to be motivated by money. It is important to remember that money offers stability and security, and this is especially true in Oman’s traditional social context. Money may bring social prestige but it also reflects great responsibility. For example, marriages and supporting a family are expensive responsibilities. Therefore, Oxford Strategic Consulting believes that these findings indicate Omanis’ understanding that great responsibility is not cheap, as opposed to an inherent desire to accumulate money.

That said, these results show that there is plenty of room for employers to focus on improving other aspects of job roles available to nationals. For example, offering more challenging roles with clear development opportunities could help attract more Omani job-seekers. Moreover, improving international travel opportunities may attract more female candidates, based on the survey results.

These findings contrast with those of Oxford’s ‘Maximising Omani Talent’ report, commissioned by BP in early 2015, which found that Omanis were more motivated by helping the country and society than by money (76% vs. 54%). Does this indicate a social change among young Omanis? If so, Oman may need to look into this possible change in national identity.

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Private Sector PayMost Omanis wanted to work in the government or semi-government sectors. In fact, 70% of respondents listed the Public Sector, Government Ministry, Municipality and Royal Court Affairs as top organisations to work in at present. Our previous research also found that Omanis tended to think that pay in the private sector was much lower than that of the public sector.

Yet private sector wages are not always lower for a skilled role, and the opportunities for advancement, development and higher pay over the course of a career can be much greater in the private sector. In other words, calculations of life-time earnings find that the private sector can lead to greater returns for ambitious professionals. Oman’s private sector needs to modify these wage perceptions in order to attract more Omanis.

Using these techniques, key sectors such as banking need to become ‘sector of choice’ for national citizens. Here, Oxford’s Nationalisation Benchmark, which assesses an organisation’s nationalisation programme and benchmarks the employer brand status against competitors, can help measure progress and evaluate performance.

At the same time, Oxford also recognises that it is relatively easy for an Omani private sector company to employ cheap expat labour at the lower levels and to find more highly qualified expat experts at the higher levels. In return, the skills levels of capable Omanis are increasing dramatically to compete with the high end. The government may consider subsiding lower level employment for disadvantaged Omani citizens to address this issue.


Entrepreneurism & EmploymentRather than increasing wages, the government should help Omani entrepreneurs to make money for themselves. More Omanis (34%) ranked ‘running my own business’ as their ideal job role than for any other role. This inclination toward entrepreneurism in the Sultanate can be tapped into to help transition Omanis away from public sector roles and toward private sector enterprises.

In order to maximise the investment in entrepreneurism, high-potential entrepreneurs who actually contribute to employment growth, known as ‘gazelles’ should be identified and supported by the government. Providing seed funding and early support for high-potential entrepreneurs is much more cost-effective than employing the equivalent public sector employees for an entire career.

The Sultanate needs to reduce the dependency on high public sector wages. Yet only a third of employed Omanis work in the private sector. Given this excess of public sector human resources, the government could strategically second some of its under-utilised employees to the private sector to address the labour market deficit. Moreover, the government could even pay part of the seconded employee’s wages for a defined period of time as a means of encouraging a smooth transition into the private sector for both employee and employer.

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Oman Employment Report: Insights for 2016 – Contact


Contact & inquiriesFor additional information about the survey findings and analyses in this report, or to learn more about Oxford Strategic Consulting’s other research on Nationalisation in Oman, please contact Robert Mogielnicki at [email protected].

For more insights, publications and services related to HR in the GCC, please visit www.oxfordstrategicconsulting.com.

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