PHOTO
With youth unemployment rates still high across the GCC, The Boston Consulting Group has identified key solutions designed to bridge the skills gap across the region's employment landscape - so job seekers can effectivelycontribute to and thrive in an innovation-led, knowledge-based economy
Dubai - According to a new study by The Boston Consulting Group (BCG), a global management consulting firm and the world's leading advisor on business strategy, GCC youth fall short of expectations when it comes tohaving the character traits and intrinsic motivation needed to excel in a knowledge-based economy. The report, entitledMotivation and Perseverance: The Missing Link to GCC Knowledge Economies, provides in-depth analysis on the GCC's youth workforce and sheds light on someof the steps that must be taken to address the region's growing talent mismatch.
The fact is, in recent years, GCC countries have faced a major youth unemployment challenge. For those under 25, the unemployment rate remains at 25% across the region.In parallel, the total youth population in the GCC has increased at an incredible pace, from 15 million in 2000 to almost 20 million1in 2014.Given that young people make up the greatest proportion of the region's population, youth unemployment is a critical issue for the GCC and a key priority for its governments.
In order to tackle this matter, BCG authors conducted research on this topic and collaborated with companiesin the GCC to identifywhy the region's young workers are lagging behind.
"Based on our findings, for employers, the main issue is that job seekers tend to lack some ofthe necessary competencies required tosucceedin a knowledge-based economy," said Dr. Leila Hoteit, a Partner and Managing Director at BCG Middle East. "And, while these youthmay be able to develop these capabilities on the job, the overriding concern is that employers are not finding a sufficient number ofqualified candidates with the right character skills."
Dr. Hoteit added, "Essentially, they are looking to hire young,talented individuals who are proactive, willing to take initiative, exercise patience, complete tasks autonomously, and be flexible enough to adapt to a changing environment or emerging challenges. GCC candidates, however,don't always have the right levels of self-motivation. After all, employers wantindividuals who are result-driven and have the ability to persevere amidst difficulties."
SOLVING THE UNDERLYING PROBLEM
As part of itsanalysis, BCG aimed to establish the core, fundamental causes of the alarming skills mismatch between young job seekers and employers in the GCC.
"Expertshighlighted three major challenges," explained Dr. Alexander Tuerpitz, a Partner and Managing Director at BCG Middle East. "The first is that the development of characterstrengths such as grit, persistence and resilience is not sufficiently integrated into academic systems in the region.The second is that governments tend to be overly reliant on using financialincentives to influence behavior. As a result, young workers can sometimes end up feeling entitled. This, in turn,decreases a person's intrinsic motivation to perform."
Dr. Tuerpitz also said: "More importantly, in addition to offeringcitizens safety nets via nationalization quotas or high-paying government jobs, governments also need to encourageyouth to take initiative on their own, even if they run the risk of failing. The third is that, today, there is a lack of support from positive role models in the GCC.We need more private sector role models whocan guide and push citizens to achieve results in school and at work, to persevere in the face of failure.."
ARMING THE CURRENT AND NEXT GENERATIONS
Ultimately, character development is a lifelong journey that begins at the early childhood level and continues at school, during university years and at work.
In line with this, BCG has outlined a set of guidelines that could facilitate the current generation's entry into the job market and help equip the next generation with the right tools needed to navigate the region's complex employment landscape.
• Instill peacefulness, self-discipline and a spirit of independence in children early on,through sports and games: these qualities- intended to ensure that children are 'ready for school' - give them the ability to act with limited supervision and guidance.
• Teach primary school children perseverance and resilience: The primary school curriculum should be adjusted to include activities-such as group projects - that allow students to experience failure, so that they learn to recover, regroup and improve.
• Set personal goals and aspirations throughout primary and secondary school as well as university viainternship/work programs and career counselors: Work experience exposes students to the professional world so that they can set career goals earlier on. This also helps them to have more realistic expectations, and gain a deeper understandingof how educational paths can impact future career choices.
• Offer on-the-job trainings and life-long learning seminars at work to improve job retention: On-the-job trainings that aim to teach employees about perseverance and resilience could help improve job retention by making workers feel more invested and engaged in their career. In addition, it helps them to more effectively overcome obstacles in the workplace.
• Ensure that parents and community leaders show enthusiasm and promote achievement motivation: These role models need to convey a strong appreciation of young people's mostdeserving achievements - i.e. those accomplished through hard work and real efforts.
• Rethink the approach to safetynets and incentives to make it more conducive to motivation:When it comes to providing incentives, it is important that they serve the right purpose, which is to develop positive character skills amongst GCC youth.
"Thesesteps are just a starting point and need to be refined, expanded on and contextualized according to individual countries," stated Dr. Laura Luelsdorf, a Principal at BCG Middle East. "Byreforming the current system, we have the unique opportunity to perhaps change the trajectory of young workers in the GCC and help curb youth unemployment in the region. We want these job seekers to come from a position of strength and exert true confidence in the workplace. Eventually, they will lead the future and serve as catalysts for the region's economic development."
If you would like to have a copy of the full report, please contact Gregory Henderson: Gregory.Henderson@leocommpr.com
-Ends-
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 81 offices in 45 countries.
For more information, please visit bcg.com.
About bcgperspectives.com
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting.
All of our content--including videos, podcasts, commentaries, and reports--can be accessed by PC, mobile, iPad, Facebook, Twitter and LinkedIn.
© Press Release 2015
