Delivered by: Adrian Low, Managing Partner HRINC, representing EuroCham HR Committee
Date: 7th May 2015
My name is Adrian Low. Today I represent the EuroCham Cambodia HR Committee. It is an honour to be asked to speak at this forum. I am here to share some thoughts, ideas and recommendations on how to improve the employability and skills of graduates. My presentation will also cover a comparison of the past and present, while also considering the impact of an emerging economy.
One of the key recommendations that The EuroCham HR committee has continued to deliver, is that reforms need to be implemented, especially in higher education, to ensure graduates are qualified not only in the hard skills, but also the soft skills necessary for employment. We encourage policy dialogue towards better alignment between higher education curricula, graduate skills, and labour market needs.
There is no question that we have challenges related to education, but our challenges in education must be seen in the context of Cambodia’s history and development.
Today I would like to be positive, but also realistic about the current situation by comparing our current situation with the options available in the year 2000. I will also make recommendations about how higher education providers can assist with the transition from student to employee.
In 2000, if someone asked me to find them a University Graduate with 5 years’ experience, they didn’t exist. Many of the people I speak to today, particularly those new to Cambodia, are unaware that it wasn’t until around the year 2000 that universities actually produced any significant number of graduates.
As you could image, in the early years of rebuilding the higher education system, it was a serious challenge finding high quality, experienced local lecturers. In the year 2000 universities in Cambodia were only just starting to make an impact with supplying higher education. With very few experienced and qualified lecturers, it was difficult to staff these new universities.
Example: I employed an individual that had finished his bachelor degree, progressed straight to his MBA, then the month after completing his MBA at the age of 23, he became a lecturer for the MBA course at his university. At that stage his exposure to the corporate environment was little more than assisting with administration and translation. The higher education system was in the early stages of rebuilding, and there is no doubt that the lack of qualified, experienced teaches had an impact on the quality of education. He was probably the best qualified person available to teach with a growing demand for university education. Today we have a far greater number of experienced and qualified teachers. Progress has certainly been made, though the challenge of finding, training and retaining quality faculty remains. There must be a focus on the continued development and training of teachers to ensure students get the highest quality education possible.
Since 2000, the number of university graduates has increased exponentially. Not just the total number of graduates, but the number of graduates each year is increasing significantly and in some areas to point of over-supply. The number of universities, the variety of options available to students is now 10 fold. We now have university graduates with 20 years of experience. We now have 20 years’ worth of graduates in the market. These are luxuries that the companies operating in the year 2000 did not have. As mentioned previously, there is still a lot of progress that needs to be made to meet international standards, but let us be thankful for those that lead the way, however challenging it was.
Although this is an area that is improving, the feedback from employers is that a university degree in Cambodia has been of little value in understanding the skills and abilities of graduates. It is to say, that just because you have a degree, it doesn’t mean that you have reached a minimum standard expected by employers. This will vary from institution to institution, though it is the general perception from market.
Let me be clear - Employers are not saying that the university education has no value. This is demonstrated by the fact that very few businesses are accepting high school graduates as an alternative to university graduates for professional positions. This demonstrates to me that there is clearly benefits of attending university. Almost every position that comes through our recruitment agency requires university qualifications as a minimum, including basic customer service and admin roles. Universities do increase employment opportunities for their students.
I struggle to find good graduates: Another common comment from employers. This is a result of more than just the education system, it is also an issue related to the realities of the rapid growth in the economy. The good companies are finding good graduates and the good graduates are finding the good companies.
The Cambodian economy has been one of the fastest growing economies in the world over the last decade. Between 2011 and 2014 Cambodia the number of people employed rose 23.5%. In construction it rose by around 40%, finance and insurance employment rose approx. 38% (National Employment Agency, 2015). With that sort of growth you can expect shortages of talent at all levels, no matter what the quality of the education system is like. With the forces of supply and demand in a growing market, there will always be companies that struggle to attract the best and brightest. In the context of graduate employability, employers also need to look at their own organisations, and their work environment to ask themselves “what can I do to attract the best graduates”.
There are many excellent, motivated graduates. Far more than there were in the past. Organisations need to have a plan on how to attract the quality graduates.
There are many countries in the world that are not suffering from skills shortages, simply because their economies are performing poorly. Not being able to find enough skilled people to supply the huge demand is a problem many countries would like to have right now. So we will be positive today and be grateful for the growth of the Cambodian economy, and the opportunities that growth presents to both graduates and businesses.
Another common comment from many employers, is that university does not prepare the students for the “real world”. This is an issue that is not just repeated here in Cambodia. Employers all across the world have the same issue. Although a universal problem, it is an area that particularly needs addressing by higher education providers in developing countries.
In a recent study completed by the National Employment Agency stated that the most competencies most lacking in higher education graduates / first time job seekers were 1. Lack of working world / life experience 2. Technical or jobs specific skills 3. Poor attitude / motivation 4. Foreign language skills 5. Communication skills. Four out of the five factors are not related to field of study, but other competencies required to be effective in the workplace.
I would now like to discuss a vital factor affecting the employability of graduates and the transition from student to employee. It is not just the knowledge that students require. It is exposure.
Exposure. I am talking about exposure to workplace realities / exposure to international standards.
If a student has come from rural area and their exposure to business is the small family shops and restaurants, family owned farming, and rural small business, it makes it difficult to grasp and apply the big picture business concepts, or understand the corporate work environment. If these students do not receive sufficient exposure to workplace realities, when they enter the workforce, they can be overwhelmed by how to speak, act, deal with problems, deal with customers, company politics etc. Many of the problems affecting the successful transition from student to employee are often less about the education and more about their exposure to workplace practices.
Today’s graduates have a more opportunity for exposure to international standards than those I dealt with in the year 2000.
What types of exposure increase a graduate’s employability? And how does the current situation compare with the year 2000.
Increased exposure to these things through the higher education process will help in the transition from student to employee. Higher education providers must work to include as much exposure as possible through the education process, to assist with both the learning process and integration in to the workforce.
Once again, we need to see these improvements in the context of Cambodia’s history and development. There has been significant progress made, though more still has to be done. The opportunity for exposure the graduates of 2015 are receiving is far above the level in the year 2000, and it is improving every year, particularly in Phnom Penh and other larger cities.
Not only has the exposure to international standard business improved in Cambodia, there is an increasing number of students that choose to study and work overseas, and return to Cambodia with valuable experience.
It is amazing the difference we see in those Cambodian people who study or work overseas, and then return to Cambodia. Their perspective is different. They did not become smarter. The education they may receive may have been of high quality, but it is the exposure to different, quality environments that can have the biggest impact.
How can Higher Education Providers assist with exposing their graduates to the realities of the workplace?
I am by no means an expert on Higher Education reform but it appears that there are many practical opportunities to pursue that can deliver real results in addressing challenges faced by those entering the workforce. There are many programs that are currently in place, though more has to be done.
To close my presentation today, I would like to celebrate the progress that the Higher Education Providers in Cambodia have made. I would like to thank all of the higher education providers assisting in the development of Cambodia’s future industry leaders.
There is still much to be done. There is still a lot of opportunity for cooperation by both industry and the education providers, but today, let us also be thankful for the progress that has been made.