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Sunday, March 30, 2008

 

Industrialists fret about, investors
deterred by technology brain drain

By Katrina Mennen A. Valdez, Reporter

Though there is supposed to be a mismatch between jobs available and the qualifications of graduates, nobody has ever bothered to find out exactly how many “qualified” workers in which fields of specialization do the local industries really need, Sergio Ortiz-Luis, president of the Employers’ Confederation of the Philippines, told The Manila Times.

He is, however, hopeful that with the recently set up government Task Force on Education, the problem of the availability of qualified workforce will be gradually addressed.

The Personnel Management Association of the Philippines (PMAP) says industries suffering from high turnover rates these days include pharmaceuticals, banking, consumer goods, hotels and restaurants, electronics and semiconductors, and telecommunications and computers. About 33 percent to 59 percent of employees leaving their jobs in these industries, according to a PMAP survey, have gone abroad.

Task Force Education was established by Executive Order 652. It seeks to improve and retrain teachers, lessen the number of dropouts, and ensure that the Filipino family’s investments in the country’s educational system get the best possible returns, such as jobs.

“There is a big mismatch in job availabilities and the number of people that are actually qualified and able to perform what is expected of them, but with the task force and the concerted efforts of the private sector, the problem on brain drain would be eventually resolved,” Ortiz-Luis told The Manila Times in an interview.

Joint Foreign Chambers

On the other hand, the Joint Foreign Chambers (JFC) has urged the government and the private sectors to develop mining engineers, environmentalists, hospitality and health professionals and other science and technology graduates rather than just focus on call centers.

The JFC comprises the American, New Zealand, Australian, Canadian and British business communities in the country. It urges the Philippines to take advantage of these sunrise industries by preparing a pool of S&T talents since these are the new breed of professionals that the chambers’ corporate members are looking for.

Leslie Stokes, Chairman of the British Chamber of Commerce said more than the voice BPOs, investors from the UK are now looking for geologists, mining engineers, environmentalists, accountants, tourism specialists and medical professionals.

“Right now, these are what [our] foreign investors are looking for. They need to be sure these skilled people are available before they expand their existing businesses in the Philippines. The lack of training here and qualified people are driving these investors away,” Stokes said.

Stokes said that in order to address the job mismatch, the government and the private sector should come up with a systematic strategy to hone the talents and skills of students before they graduate.

Henry Schumacher, vice-president of the British Chamber of Commerce, said his group wants to be part of a technology curriculum in which intensive training and preparation for specific lines of work will be given to the workforce.

“Apart from their English proficiency, workers should have more to offer and meet the current and future needs of the foreign investors,” Schumacher said.

Schumacher said these investors always think twice about locating and investing in the Philippines if their companies would still need to import highly skilled people because there are not enough of them here.

Rob Sears, American Chamber executive director, said foreign firms now would still have to train their Filipino employees for six to nine months to raise their qualifications to international standards.

“Having this workforce trained even before they step out of college will be the Philippines’ major attraction to the investors,” Sears said.

Human Capital Club

Last year, the European Chambers of Commerce of the Philippines’ Human Capital Club estimated that local companies are incurring additional costs of at least P1 billion in recruiting and training new staff to replace those who have left to work abroad.

Workforce scarcity has more than doubled following the continued migration of Filipino professionals abroad, a new European Chamber of Commerce study disclosed on Wednesday showed.

Human Capital Club Chairman and ECCP Board Member Richard Eldridge said that 43 percent of companies the chamber has surveyed last year considered the scarcity of skilled labor as its primary problem. In 2006, the same survey showed that only 15 percent of companies indicated it as a concern.

Eldridge said that there is a projection that one million new jobs will be available over the next three years in several key industries but studies conducted through HCC indicated that an average of 79,000 Filipino professionals have been leaving the country since 2000 to work abroad.

“The future for companies is in their ability to attract, retain and develop their human capital. Right now companies are posting a combined loss of at least a billion pesos a year due to the continued migration of Filipino professionals abroad,” Eldridge said.

The ECCP estimates that when an employee leaves a company, it will have to spend at least P15,000 to find and train a suitable replacement.

Further, Eldridge stressed that if the migration of qualified personnel continues, several key industries will be hit with staffing problems including information technology, finance and accounting, and health care.

“The business process outsourcing industry alone has a demand for at least 600,000 new employees by 2010. There is also projected large staffing requirement across several other rapidly growing industries such as health care, retirement, medical tourism and the creative industries,” Eldridge said.

The HCC is a platform within ECCP that seeks to address the job mismatch problem Philippine-based companies are facing. It also works on strategies to manage human capital challenges.

“[We] should be looking at the recruitment process, the educational system, training, work standards, and productivity. There must also be ways for companies to provide adequate work packages to make their people stay,” Eldridge said.

Serious brain drain

Andrew Freris, chief economist of BNP Paribas, a major European bank, said that the local economy’s current growth is not enough to offset the Philippine brain drain.

Freraris said that despite the large chunk contributed by overseas Filipino workers (OFWs) to the country’s economy, the negative impact is already being felt, like the continuous decrease of competent workforce.

“The costs it imposes include the potential loss of educated and skilled workers to the economy, demographic consequences, as well as the social cost of broken families,” Freris said.

Although 58 percent of OFWs are employed abroad as household, factory, or construction workers, their jobs do not indicate their present qualifications or educational attainment, Freris said.

“Exporting domestics and cleaners does not reflect the skill levels of the workers involved. It reflects the demand overseas for these skills. The resultant mismatch of skills also reflects market consideration as their productivity in a different job is higher outside than inside the Philippines,” Freris said.

   
 

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