Raising Motivation and Perseverance among GCC Youth is Key to Tackling Unemployment Challenge, BCG Study Reveals

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 effectively contribute to and thrive in an innovation-led, knowledge-based economy

Dubai, March 9, 2015 — 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 to having the character traits and intrinsic motivation needed to excel in a knowledge-based economy. The report, entitled Motivation and Perseverance: The Missing Link to GCC Knowledge Economies, provides in-depth analysis on the GCC’s youth workforce and sheds light on some of 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 million1 in 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 companies in the GCC to identify why 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 of the necessary competencies required to succeed in a knowledge-based economy,” said Dr. Leila Hoteit, a Partner and Managing Director at BCG Middle East. “And, while these youth may be able to develop these capabilities on the job, the overriding concern is that employers are not finding a sufficient number of qualified 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 want individuals who are result-driven and have the ability to persevere amidst difficulties.”

SOLVING THE UNDERLYING PROBLEM
As part of its analysis, BCG aimed to establish the core, fundamental causes of the alarming skills mismatch between young job seekers and employers in the GCC.

“Experts highlighted three major challenges,” explained Dr. Alexander Tuerpitz, a Partner and Managing Director at BCG Middle East. “The first is that the development of character strengths 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 financial incentives 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 offering citizens safety nets via nationalization quotas or high-paying government jobs, governments also need to encourage youth 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 who can 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 via internship/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 understanding of 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 most deserving achievements - i.e. those accomplished through hard work and real efforts.

• Rethink the approach to safety nets 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.

“These steps 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. “By reforming 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.”