Intelligent CIO Middle East Issue 40 | Page 42

FEATURE: ANALYTICS insight makes it difficult to identify the most in-demand skills versus the most costly ones, and to prioritise and plan targeted upskilling programmes to replace expats with local workers over time. The skills gap is not evenly distributed across the economy. It’s very difficult for private companies to compete with government bodies and public sector organisations for local workers when it comes to salaries and benefits. For this reason, Saudi Arabia is considering a generous minimum wage of SAR5,300 for nationals entering the private sector. Every company we speak to asks how they should start off on the journey of upskilling local workers. Starting with the cost of people and work is a good first step, but this needs to move on to a discussion around the value of work in terms of contribution to the company’s profitability. This requires good data, so it’s essential to prepare and clean your data before you start. Without this, everything is guesswork. Once you have an accurate view of the most valuable work being done, you can break it down into skillsets and associated roles. You can then compare this against skills available among local workers to identify the gaps and use this information to develop and prioritise upskilling programmes for different sections of the workforce. We’ve found that companies tend to focus on people, rather than the work they do, when planning organisational changes, and they have little visibility of where costs reside. This is compounded by the fact that most run decentralised systems, so there’s no common dataset. Building up a view of the company’s structure requires more than an org chart, ////////////////////////////////////////////////////////////////////////// workforce and then model different scenarios to understand the work and skills you actually need. A change of mindset to thinking about skills, work and activities rather than hierarchy and job titles is fundamental to any upskilling programme. But without advanced analytics and strategic workforce planning, it will be difficult to know which skills companies need to promote among local workers. Transferring skills and reducing dependence is not a zero-sum game In the short term, upskilling is about reducing workforce dependencies that lead to higher costs through fines and visas by training local workers to take up more skilled roles. In the next decade, many young nationals are likely to enter the workforce through graduate programmes and fast-track schemes. Over time, this will change the demographic, reducing the need for upskilling in years to come. There’s also the changing nature of work to think about. The World Economic Forum’s Future of Jobs report found that, by 2020, 21% of core skills in Gulf Cooperation Council countries will be different to skills needed in 2015. Then there’s automation. Across the region around 47% of all jobs are open to automation, so many jobs are likely to see major changes to their skills profile. In summary, this is not a binary situation but a multi-layered one. We can’t discount the fact that migrant workers have a widespread influence in the Middle East, so any upskilling effort needs to be gradual. Companies should not focus on upskilling based solely ACROSS THE REGION AROUND 47% OF ALL JOBS ARE OPEN TO AUTOMATION. so if you’re serious about organisation design, using presentation or diagram software is not enough. You need to be able to dynamically visualise your 42 INTELLIGENTCIO on today’s skills gap but begin to plan for and build competencies and assemble the skills they need to take advantage of future economic opportunities. n www.intelligentcio.com