Sunday, August 31, 2008
More on Locals in the Workforce
A comment on one of my previous posts stated that one problem in getting locals into the workforce was that local bosses do not want to hire them. There could be a number of reasons for this and many of them have been discussed here. However, in reading an older EmiratesEconomist post, I found myself wondering if bosses are loathe to hire locals because locals are harder to hold accountable institutionally and legally than foreigners. Why hire a local that you can't hold legally accountable or even fire in some cases when you can have a foreigner by the, um, passport?
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2 comments:
Leo, it cuts all ways; in general to the disadvantage of the local work force. Companies will not hire locals cause – higher wage expectations, less work experience, social and family demands, work mobility, access to government power for complaints – they can be held accountable in theory but practice is different often simply because the company has failed to empower their managers with authority – the actual power is vested elsewhere so of course managers do nothing.
Expats are believed to come pre-trained (saves on training cost which could then walk with employee - though often in reality they have no skills to do with the job), slicker in workplace politics, cheaper, fewer daily family demands and can be readily dismissed or held accountable as their passport is usually under lock and key with the employer.
Companies frequently will only let a foreigner go on holiday or move to another company if included with all the other requirements a fellow worker (usually of course a relative or person from the same community) will assume all the debts (either personal or for which they oversee as part of the business – like customers who pay monthly) of the person leaving. You would not sign up to agree to pay off a fellow workers debts if your fellow worker didn’t return; nor would an Omani – but remarkably many expat workers will do!! Compliant is an understatement.
I am an Indian working in Muscat for the last three years. This is my opinion on omanisation. Whatever anon has mentioned is correct. my view is, If omanisation has to succeed the best way is to have more no. of colleges and technical institutues which can turn out more of skilled employees / workforce. The days of cheap expat labour has gone. Infact companies are forced to take poor quality workforce from India and develop them. So for any company if they are getting skilled local employees itis a boon . Further it will be a cost saving for the company if they engage locals. I will illustrate with an example. For ex we need 3 skilled employees. we dont get locals. so we take them from other country. so to take 3 expat workers we need to hire 2 locals. assume 40 % omanisation rule. so the total salary per month say 3*80=240 +2*120=240. Total outflow is 480 per month. if the skilled workforce is available locally then it will come to 3*120=360. there will be actually a cost saving of 120 per month.
The same may not hold true in case of interior because of leave rotation policy.
Plus yes the accountabilty of people has to be there. i think with education accountability comes automatically.
i feel this subject cant be discussed in one comment. BUt this issue will be a major issue in the coming years...
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