labour market reform commission

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Jul 22, 2016 - Mobile Money Strategy for increasing productivity, increasing compliance ... d) Hire and Fire practices should be reviewed to eliminate rigidity .... at the other end (eg digital artists, digital designers and micro-app developers).

LABOUR MARKET REFORM COMMISSION Technology, Innovation & Productivity Committee Priority Policy Recommendations for transforming individual productivity and SME competitiveness in Jamaica

Commissioner Silburn Clarke CLS, FRICS, DFJCS Chair, Technology Innovation and Productivity Committee July 22nd 2016

Labour Market Reform Commission Ministry of Labour & Social Security / Ministry of Finance & Planning

Commissioners Chairman,

Dr Marshall Hall

Deputy Chairman,

Mr. Silburn Clarke Chair, Technology Innovation and Productivity Committee

National Coordinator, TBD Dr Wayne Wesley, Dr Heather Rickets, Mr. Wayne Jones, Dr. Michael Witter

Chair, Education and Training Committee Chair, Social Protection Committee Chair, Industrial Relations Committee Chair, Labour Policy and Legislation Committee

Ms. Brenda Cuthbert Mr. Easton Williams Sen. Kavan Gayle Prof Gossett Oliver

Mr. Dwayne Gutzmer Mr. Danny Roberts Ms. Janet Morrison Mr. Granville Valentine

Mr. Robert Gregory Dr. Noel Cowell Mr. Errol Miller Ms. Yvette Sutherland-Reid

Technology, Innovation and Productivity Committee Chair: Commissioner Silburn Clarke Dr Vanesa Tennant, Dr. Marina Ramkissoon, Mr. Mervyn Eyre, Dr. Andrea Barrett, Dr. Andre Jones, Ms. Sonia Jackson, Ms. Sonia Jackson,

Working Groups Chair Labour Market Information System Chair, Human Factors and the Workplace Chair, Public Sector Productivity Chair, National Systems of Innovation Chair, Small & Medium Enterprises Chair, Cross-cutting Issues Chair, JPC Reform

Commissioner Robert Gregory Commissioner Dwayne Gutzmer Prof. Ishenkumba Kahwa Dr Kavian Cooke Ms. Tashana Briscoe

Commissioner Prof. Gossett Oliver Dr Charles Douglas Prof. Neville Duncan Mr. Rudolph Thomas

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Document History Date

Version Description

Author

20th

v1

SC/ME/VT/SJ/AB/MR

July 2016

Initial Draft

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Acknowledgements The Technology, Innovation and Productivity Committee of the Labour Market Reform Commission acknowledges the many and varied contributions by way of critiques, searching probes, ideas, data, comments, feedback, reviews, recommendations, overstandings and understandings that were offered directly and indirectly to the Committee during public consultation phase between the compilation of the Committee’s Initial WG Reports and the compilation of this Priority Policy document. The initial public consultation phase ran from March to July 2016. Over a hundred stakeholders from business, employees, government, academia, youth, civil society and our diaspora were targeted to provide critical review and feedback. We humbly acknowledge all, but special mention must be made of the Diaspora whose level of participation was a very pleasant surprise and whose participation rate, ie members participating as a percentage of their cohort, surpassed the other groups. Recognising that the polices have also to be grounded in global environments and realities, the contribution of global commenters is also acknowledged. Comm Silburn Clarke TIPC LMRC

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Table of Contents

Contents Document History............................................................................................................ 1 Acknowledgements ......................................................................................................... 2 Figure 1: INNOVATIVENESS, PRODUCTIVITY, COMPETITIVENESS .......... 4 Small & Medium Enterprises WG .............................................................................. 5 Human Factors Working Group (HFWG) ............................................................ 14 Public Sector Productivity Working Group ....................................................... 17 Labour Market Information Systems Working Group................................... 22 National Systems of Innovation (NSI) Working Group .................................. 26 References: ...................................................................................................................... 29 External Respondents / Reviewers / Contributors / Commenters ......... 30

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Figure 1:

INNOVATIVENESS, PRODUCTIVITY, COMPETITIVENESS and

Knowledge, Skills, Abilities, Values, Attitudes, Contentment

SME

Flexibility of movement of talent in market  between firms  within firms

Flexicurity  Social safety  Unemployment support  Equity  Inclusiveness

Market Readiness & Employability of Talent  quantity of talent  quality of talent

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PRIORITY POLICY RECOMMENDATIONS Small & Medium Enterprises WG 1. 2. 3. 4. 5. 6. 7. 8. 9.

Building a flexible labour market Expanding the quality and quantity of the talent pool Linking compensation with productivity Identifying and supporting high-growth export-oriented SME’s Adoption / Adaptation of Business Excellence Framework for sharpening firm’s international competitiveness Mobile Money Strategy for increasing productivity, increasing compliance and reducing informality Microwork / E-lancing for Youth unemployment Encouraging broad-based indigenous innovation by modernising access to patenting National consensus on medium-term and long-term economic framework

1. Building a flexible labour market Our observation is …….. Governments must be very cognizant of scale-based inhibitors and actively act to implement countervailing measures to level the playing field for SME firms In the context of a labour market, a suitable vision for SME's would be an environment that facilitates "flexibility with social protection1" Policy perspectives aimed in favour of unshackling SME’s of unnecessary strictures and empowering SME's to achieve talent-driven, outwardly-focused global competitiveness should therefore feature flexibility to respond to market dynamism. Flexibility covers a wide range of issues including: a) Labour force training should be flexible in its delivery and not be rigidly tied to historical sectors and industries. Training content and packages should rather be dynamically adjustable and

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Or to use a term coined by the ILO : “flexicurity”

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malleable to suit emergence of new sectors and industries. Responsive repackaging should be a key feature b) The picking of winners and locking in / redirecting training resources to those ends is to be discouraged. The identification of areas of comparative advantage and repurposing training resources to those ends is also to be discouraged. Preference is for flexibility to be able to match market demands. Where appropriate, then time-limited Tax Incentives may be dynamically deployed to encourage training in emergent new sectors. However, there is a danger of having these incentives becoming institutionalised and remaining on the books way past their useful and valueenhancing period. Constant policy and legislative re-calibration would therefore be required. c) Certification and training of the labour force should seek to produce an outcome where human talent is flexible and have the trained / certified individual be imbued with the capacity and capability to respond in a dynamic way to the varying job opportunities that will emerge over their lifelong working cycle. d) Hire and Fire practices should be reviewed to eliminate rigidity and so adjusted to build in higher levels of flexibility in order to (1) allow for easy and smooth movement of talent dynamically between firms and sectors, reducing stickiness and enhancing responsiveness as market demands change; (2) allow for smooth movement within firms. As staff transition through their individual life cycles, job cycles and task cycles, Personal Productivity Performance changes and impacts their work output.; in some cases, upwardly and in some cases, downwardly. As individuals yearn for differing work-life balance states, then the SME firm needs an ability to flexibly treat with these employee desires in order to retain talent, or attract talent. Both individuals and firms need the capability and flexibility to adjust the form of engagement in order to align to these changing conditions. Where, on the other hand, the firm faces declines due to market conditions they will need flexibility to change talent engagement from one form to another (eg from flat-fee compensation base to a performance-fee base). Further, as the skillset of the talent becomes mismatched with market needs, then flexibility will be needed to enable enhanced responsiveness through training and development but also through job and task modifications. Rules for engagement, disengagement and modification of engagement would need to support innovativeness, productivity and competitiveness. The impact is….  The ability of firms to quickly and flexibly adjust engagement, modification of engagement and disengagement is restricted Our Recommendation is…  Develop clear rules for modifying the terms of engagement to better align with improving the firm’s ability to respond to changing market, commercial and environmental conditions  Review and Update the rules defining fair dismissal to include empowering the firm’s capacity to correct for economic losses and so support increased productivity, competitiveness and profitability.  Develop a system of Unemployment Insurance to provide Social Protection where employment disengagement occurs.

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The benefit ……… • Alignment of firm structure and staffing with market signals and economic viability • Ensuring firm’s talent is aligned with innovation, productivity and competitiveness • Flexibility in matching talent to market demand conditions and productive sector requirements Type of Action needed…. Policy, Legislative and Administrative Impact on Productivity …. To be determined from JPC study (on scale: Very Low, Low, Neither Low nor High, High, Very High)

2. Expanding the quality and quantity of the talent pool Our Observation is ….  The number of persons in the unemployed labour force (ULF) that is classified as untrained is 130,000 accounts for 69.8% of the total unemployed and explains 10% of the unemployment rate of 14.2%.  Unemployment among the 14-19 age group is reported as 49.0% and among the 20-24 at 33% (STATIN 2014 LFS).  The number of persons in the ULF that is classified as having no certification is 112,000, occupying 60.2% of the total ULF and accounting for 8.5% of the unemployment rate of 14.2%  As a sub-group, the unemployment rate among the untrained is 14.5% which is marginally larger than the rate in the general population  As a sub-group, the unemployment rate among the uncertified is 13.6% which is slightly lower than the rate in the general population  Of the 1,310,700 members of the total labour force, 891,100 persons in the workforce selfreported never having been trained (whether via vocational, on-the-job, apprenticeship programmes) representing 68.0% of the total labour force (STATIN 2014 LFS)  Of the 1,310,700 members of the total labour force, 821,000 persons in the workforce reported non-attainment on formal examinations (eg JSC, SSC, 3rd Jam Local, CXC) representing 62.6% of the total labour force (STATIN 2014 LFS) The impact is….  With over 800k persons without certification and/or training, economic growth possibilities would be severely impaired Our Recommendation is…  Develop national stretch goals to make significant inroads into cutting, by 50% over the next five (5) years, the number of talent in the workforce that is classified as uncertified and/or untrained  Mandate training programmes to include quality of work issues: work ethics, professionalism, values, product and service quality orientation, motivation, attitudes, collaboration. The benefit ………  This national goal would translate into 90,000 Jamaicans being trained and certified per annum over the next five years  Expansion of the quantity and quality of the national talent pool available to firms  Enhanced flexibility for firms to secure talent appropriate to competitive forces, and market demand conditions  Increased innovativeness and productivity within firms

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Type of Action needed…. Policy, Legislative and Administrative Impact on Productivity …. To be determined from JPC study (on scale: Very Low, Low, Neither Low nor High, High, Very High)

3. Linking compensation with productivity Our Observation is ….  The link between compensation and productivity is weak at the firm-level  The signals used by firms and representatives of talent for settling on compensation increases are oftentimes not derived from the internal specifics of the firm but often on external macro factors eg inflation, devaluation  The process can be likened to a national collective bargaining process where national signals determine firm-level decisions and the idiosyncrasies of the firm are subsumed  The narrative between talent holders and businesses in the area of productivity needs to be made less ambiguous, clearer and certain The impact is…. • The ability of firms to quickly adjust compensation is inhibited Our Recommendation is… Develop a clear, unambiguous, sustainable and equitable method to align compensation with productivity • Develop appropriate methods for firms to determine their level of productivity • Jamaica Productivity Centre to investigate and recommend methods for firm-specific assessments of productivity • Jamaica Productivity Centre be empowered to deliver a service to firms to audit and report firmlevel productivity The benefit ……… • Alignment of compensation with productivity • Compensation driven by firm-level dynamics Type of Action needed…. Policy, Legislative and Administrative Impact on Productivity …. To be determined from JPC study (on scale: Very Low, Low, Neither Low nor High, High, Very High)

4. Identifying and supporting high-growth export-oriented SME’s Our Observation is …. a. Lack of breadth of options for funding entrepreneurial ventures have been identified as a major impediment to the development of high growth export-oriented SME firms b. Simultaneously, long-term domestic savings represented by the domestic Pensions is locked off from high growth export-oriented SME firms. These savings currently stands at over JAD$300billion c. Investments by pension funds in the real productive sector of the national economy is a continued and repeated call by Pension Trustees

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The impact is ……. • The ability of firms to increase global market activity is stymied • The contribution of firms to expansion of GDP is consequently thwarted Our Recommendations are ………. i. Explore innovative options to increase funding solutions to the high-growth, export-oriented goods and services sector Pension Equity Model • • • • •

Authorise a very small proportion of pension savings to be deployed to provide funding solutions to the high-growth, export-oriented SME sector. Authorise a new asset class within the pension asset classes to the high-growth, export-oriented SME sector. Set the asset class limit at 1%. This action would release $3billion to the high-growth, export-oriented SME sector. One management model: The funds could be pooled into a centrally managed National Innovation Fund, which then takes equity positions in firms in the high-growth, exportoriented SME sector. The target firms would buy-back the initial equity stake of the NIF over time as the firms grow and expand

Business Development Bank Model •

Establish a direct lending operation for SME’s in the real productive sector in general, but with emphasis and preference to the export sector using the vehicle of a Business Development Bank modeled on the BDC of Canada.

ii. Business Development Training • The Jamaica Productivity Centre would be tasked with delivering training to the targeted high-growth, export-oriented SME’s in areas of Leadership, Collaboration, Technology, Human Factors, Innovation, Productivity, Competitiveness The benefit ……… • Encouragement of entrepreneurial activity among high-growth, export-oriented SME’s • Encouragement of medium-growth to strive to high-growth status • General signaling to society of increased entrepreneurial focus and activity • Increased market activity by firms • Increased innovation and productivity by firms • Increased contribution to GDP by firms Type of Action needed…. Policy, Administrative and Programme Impact on Productivity …. To be determined from JPC study (on scale: Very Low, Low, Neither Low nor High, High, Very High)

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5. Adoption / Adaptation of Business Excellence Framework for sharpening firm’s international competitiveness The SME WG has observed from its global review that many jurisdiction have institutionalised programmes for promoting continuous innovation, productivity-improving initiatives, by having their SME firms adopt Business Excellence Frameworks (BEF). These frameworks have proven successful in those several jurisdictions around the world where they have been implemented. The English-speaking Caribbean is one of the few regions globally where BEF’s have not been adopted. A BEF may embrace and incorporate any or all of the following components; leadership, people, strategy, partnership, resources, processes, products, services, people results, customer results, society results and business results (see EFQM BEF in Figure R3 below)

Figure R3:

EFQM Business Excellence Framework

Results

Enablers

People Results

People

Leadership

Strategy Partnership & Resources

Process, Products & Services

Customer Results

Business Results

Society Results Learning, Creativity and Innovation

Recommendations:     

Conduct a review the Business Excellence Frameworks developed around the world Develop a Jamaican Business Excellence Framework from an adaptation of suitable components appropriate to the Jamaican context Promote the adoption of the Jamaican BEF through the JPC Develop capabilities within JPC to assess and audit firms for continuous improvements, enhanced productivity and overall business excellence Establish programme of Business Excellence Awards to identify and salute excellent business practices

Type of Action needed…. Policy, Administrative and Programme Impact on Productivity …. To be determined from JPC study (on scale: Very Low, Low, Neither Low nor High, High, Very High)

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6. Mobile Money Strategy for increasing productivity, increasing

compliance and reducing informality Many persons in the small wage-earning (eg domestic worker), the own-account micro-businesses (eg taxi-operator, barber or small farmer) and the small contractor (eg security guards) categories have challenges to discharge their small payment obligations to the government. Typically these person to government payments (P2G) involve travel to a brick & mortar facility to join a line in the banking hall in order to make the small payment and thereafter to return to their place of work Similarly, SME operators often have the same issues by way of the challenging logistics to make small payments to the governmental authorities for the various licences, fees, taxes etc in their businesses. At the same time, Jamaica is noted for its high level of mobile penetration ( >100%). Recommendation: In order to improve the productivity of the workforce, it is highly recommended that the electronic payment services afforded by mobile money be leveraged in order to reduce the adverse productivity impact of the current practices Impact on Productivity …. To be determined from JPC study (on scale: Very Low, Low, Neither Low nor High, High, Very High)

7. Microwork / E-lancing for Youth unemployment Unemployment among the 14-19 age group is reported as 49.0% and among the 20-24 at 33% (STATIN 2014 LFS). Paradoxically, these age cohorts represents the population of millennials and digital natives are hence are supposedly the most tech savvy segment of the population. Youth unemployment is one of the most pressing problems in the Caribbean. Recent developments in information technology (IT) as well as the IT-enabled services areas have opened promising economic opportunities for the radical reshaping of how products, services, processes and practices are created and delivered by the labor market generally, and by the youth segment of the labor force in particular. These opportunities accommodate the full gamut of creative abilities and expression among the youth, ranging from those with mindsets oriented to more routinised and standardized work expressions (eg copy typists, data convertors/digitizers, bookkeeping) at one end of the talent continuum, to the highly creative minds at the other end (eg digital artists, digital designers and micro-app developers). All have a space to contribute meaningfully in realization of their own personal well-being, empowerment and development as well as contributing to the creation and preservation of value in their community and society. Within that broad context, TIPC views IT as a major force for democratizing opportunities, flattening and shrinking the global and national marketspaces, and empowering populations, especially historically disadvantaged and excluded segments, in a radical and meaningful way. These historically disadvantaged and excluded segments include youth from deprived areas within our urban spaces, the rural folk as well as persons with disabilities. These digital opportunities are not necessarily confined to the youth, but may also remediate persons suffering job loss and seeking to re-skill to enable career-changing opportunities in IT-based employment. IT facilitates the dynamic coupling of producers with suppliers, across borders, in a real-time, highly responsive environment which lowers costs of transactions and deepen efficiencies. (DSJ, 2012)

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Microwork is a series of small tasks that can be broken out of a larger project and can thereafter be completed by internet by any worker with a computer and internet access. Microwork is a particularly promising area for digital earning opportunities by youth and women (WB, 2011) A huge global opportunity exists for these digital natives and millennials to successfully participate in microwork or e-lancing opportunities. Over 1 million e-workers earned over US$1-2 billion in crowdsourced work allocation in the period 2001 - 2011. The median annual income of Indian micro-workers ranged from US$15k to US$25k in 2011 (WB 2011). The range of work include video editing, graphic art, story editing, story writing, resume preparation, quality control etc. The concept was first introduced to Jamaica in 2012 with the MIIC / WB DigiJam event Recommendation:    

Identify feasible market opportunities for micro-work and e-lancing Create special training programmes for introducing and teaching Jamaica youth about the global opportunities Employ internship and mentorship of the youth with existing businesses firms to garner relevant experience through an expanded Registered Apprenticeship Programme (RAP) Identify entities that may serve as local agggregators for facilitating microwork

Impact on Productivity …. To be determined from JPC study (on scale: Very Low, Low, Neither Low nor High, High, Very High)

8. Encouraging broad-based indigenous innovation by modernising access to patenting Our observation is ….  The enabling environment for the encouragement of indigenous innovation is lacking  The delivery of sustainable market-accepted product and services depend of the initial thoughts of creators, inventors, innovators, ideators followed by a process of protecting these ideas, particularly those with commercial promise  Jamaica’s Patent Act of 1857 was introduced on the cusp of the second industrial revolution (refer sec 8.1, Industrial Evolution) and signaled the critical importance of intellectual rights protection for the Jamaican community of ideators and inventors at that time  However, to the extent that the act has not been modernized over the last 160 years signals the extremely low priority accorded indigenous solutions to the domestic industrial landscape and the woeful disregard of the importance of domestic ideation and invention to industrial progress.  There is a very low level of domestic patenting activity.  Jamaica is not a member of the international Patent Cooperation Treaty (PCT), which would enable local filings to be globally recognised without refiling in individual jurisdictions  Patent applications in developing countries, excluding China and India, has multiplied by eight times between 1990 and 2012 as part of the greatest surge in economic transformation of the developing world (Radelet, 2015) The impact is …… • Very low level of innovation performance and output at firm and individual levels Our Recommendation is ….  Move rapidly to modernise the Patent Act

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Type of Action needed….  Policy, Legislative and Programme Impact on Productivity …. To be determined from JPC study (on scale: Very Low, Low, Neither Low nor High, High, Very High)

9. National consensus on medium-term and long-term economic framework Our observation is ….  Jamaica’s economic performance has been poor; among the lowest in the globe for several decades  Economic policies have been inconsistent since Independence  Maintenance of a stable competitive currency has eluded the economic managers for several decades  Export competitiveness has been compromised by overvalued currency regimes  Negative trade balances (goods and services) have persisted for several decades  Consensus on coalescing around an outward-looking globally-competitive enterprises focus relevant to an small, open economy, has been lacking The impact is …… • Very low level of performance in global markets • Very low level of performance in GDP performance • Low per capita income growth Our Recommendation is ….  Establish a broad-based Council of Economic Advisors to be the premier organ for national economic policy advise. Membership to comprise representatives of businesses, employees, civil society, academia, government, the youth and the diaspora. Type of Action needed….  Policy, Legislative and Programme Impact on Productivity …. To be determined from JPC study (on scale: Very Low, Low, Neither Low nor High, High, Very High)

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Technology, Innovation and Productivity Committee

TOP POLICY RECOMMENDATIONS Human Factors Working Group (HFWG) 22 July 2016

1 PROBLEM & EVIDENCE

There is insufficient data gathered on human psycho-socio-cultural factors at the national level in a regularized and systematic manner to adequately understand the low levels of productivity and innovation of firms and employees. 1. The Labour Force Survey traditionally focused on underemployment although it has recently included the informal sector. 2. JSLC focuses mostly on households and emphasizes poverty assessment. 3. Data on innovation and knowledge use are sometimes measured in terms of patents generated or literacy rates rather than in terms of individual behaviour.

POLICY # 1

ACTION

RESPONSIBILITY PRODUCTIVITY IMPACT

Empower the Jamaica Productivity Center as the coordination hub and initiative driver / owner to design and execute an annual survey which produces a ‘Psychosocio-cultural Index of Productivity and Innovation’ (PIPI). Underlying principle: A psycho-socio-cultural framework for understanding human behaviour in the workplace is fundamental to increasing national productivity and innovation. SHORT MEDIUM LONG TERM TERM TERM Disseminate a call for proposals for the following x research project: a) Develop and test an index of psycho-socio-cultural x factors contributing to national productivity and innovation. Funding is required. b) Develop a project charter for annual x administration, analysis and reporting on results of the survey. c) Create the survey team. x d) Provide resources to conduct annual survey. x JPC TO LEAD, in collaboration with UWI MONA, UTECH, JEF, MLSS, STATIN, PIOJ

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2 PROBLEM & EVIDENCE

POLICY # 2

ACTION

RESPONSIBILITY

The nature of workplace relationships is largely anti-productivity and anti-innovation in both the public and private sectors; there is a substantial deficiency in leaders’ and employees’ skill-sets to improve these relationships. 1. Management-staff relationships are largely transactional, non-collaborative, nondevelopmental and governed by rules of hierarchy 2. Management-staff relationships are largely undermined by a culture of informalism, ‘administrivia’, low levels of social capital, and high levels of entitlement and defiance attitudes 3. Role functioning is largely personality-driven and alliance-driven 4. Work motivation is largely based on social-exchange paradigms, with a focus on individual rather than collective wins Empower the Jamaica Productivity Center as the coordination hub and initiative driver / owner to create and implement an action-research framework for understanding how current workplace relationships reduce levels of national productivity and innovation and how to address these relationships to increase the levels. Underlying principle: collaboration, action research and programme evaluation are key enablers to increasing national productivity SHORT MEDIUM LONG TERM TERM TERM Design/disseminate a call for proposals for the x following research Pilot Project: a) Using an action-research approach, design, x implement and evaluate an interpersonal skills training programme to improve management-staff relationships with a purposefully-selected sample of public and private sector organizations. b) Develop best practices and training materials from x the results of the pilot project. c) Disseminate best practices and training materials x to public and private sector organizations. d) Develop a team of trainers to help leaders x implement training programme and best practices in their organizations. e) Hire an Organizational Psychologist at the JPC. x JPC TO LEAD, in collaboration with UWI MONA, UTECH, JEF, MLSS, HEART, PSOJ, SBAJ, HRMAJ

PRODUCTIVITY IMPACT

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3 PROBLEM & EVIDENCE

Leaders of public and private sector entities who play a key part in increasing national levels of productivity and innovation are insufficiently skilled to collectively coordinate their efforts and collaborate on areas of mutual interests. 1. Lack of collaboration among institutions hindered attempts of TIPC sub-groups (e.g., LMIS) to achieve their goals. 2. The national MSME Entrepreneurship policy (2013) noted that there needs to be greater collaboration among all the key stakeholders at all levels nationwide for the provision of training and development services for MSMEs. 3. Despite numerous calls for increased collaboration and despite numerous meetings, individuals and organizations continue to operate in silos because they lack collaborative skills and intentions.

POLICY # 3

ACTION

RESPONSIBILITY PRODUCTIVITY IMPACT

Directly and formally infuse training for all organizational leaders in collaboration and collective coordination skills, into all LMRC initiatives to increase national productivity and innovation. Underlying principle: Effective collaboration skills can vastly increase organizations’ ability to achieve common goals. SHORT MEDIUM LONG TERM TERM TERM a. Design and disseminate a call for consultants to X provide training in collaboration skills, collective coordination skills, negotiation skills, leadership skills and interpersonal skills. b. Offer training to key stakeholders including but X not limited to: STATIN, PIOJ, MLSS, PSOJ, JPC, HEART, LMRC, leading institutions of higher education, and trade unions. c. Collaborate on collective funding for the consultancies. JPC TO LEAD

X

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TOP FIVE POLICY RECOMMENDATIONS

Public Sector Productivity Working Group

PROBLEM

In general, current public sector leaders (e.g. Permanent Secretaries, heads of agencies, departments and statutory bodies) do not have the future skills/capabilities to drive organisational change, improve technology adoption, and lead innovation.

POLICY #1

Establish new criteria for the selection of public sector leaders, and institute a new compensation structures that are linked to accountability and performance ACTIONS STerm MTerm LTerm Define new standards for public sector X leadership Conduct gap analysis of current leaders against X X new criteria Execute programme of change (both in X X recruitment and development) to align leaders to the new criteria Continually assess performance X X RESPONSIBILITY OPM/Cabinet Office – Public Sector Modernisation Unit/ MOFP – Chief Personnel Officer/MIND/Universities PRODUCTIVITY IMPACT

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PROBLEM POLICY #2

Current HR policies and practices focus on tenure rather than performance Develop HR policy framework that focusses on performance and productivity and drives the development of future skills. ACTIONS STerm MTerm LTerm Develop an overarching Statement of Direction, Policy X and Standards for the development of future skills and capabilities across government including Ministries, Departments and Agencies. Redefine existing job profiles and responsibilities to X X be aligned with the new statement of direction including key accountabilities, key measurements, scope, knowledge/experience and behavioural competencies. Redefine and implement compensation structure X aligned to performance management principles Implement Performance Management framework, X X including appropriate IT Performance Management Systems Continually assess and review performance X X management RESPONSIBILITY OPM/Cabinet Office – Public Sector Modernisation Unit/ MOFP – Chief Personnel Officer/MIND/Universities/Trade Unions – all unions affiliated with Public Sector employees PRODUCTIVITY IMPACT

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PROBLEM

Public sector data and knowledge is currently not managed as a critical asset nor shared across MDA’s in order to drive efficiencies, innovation and growth.

POLICY #3

Establish the framework to allow for the sharing of data and information across MDA’s to facilitate appropriate access to data and information in a timely manner that are critical for decision making. ACTIONS STerm MTerm LTerm Develop the leaders who foster data sharing as role x models Establish the institutional mechanisms to manage x x X collection, storage, dissemination and integration of data and information Use of common classification systems in accordance x x X with international standards for the codification of all data in the MDAs Implement shared and interoperable ICT services to x x facilitate knowledge sharing and communication within the public sector Accelerate the legislative framework to facilitate data x exchange and management Incentivise data sharing x X Implement support for behaviour and culture change x x X to break down culture of silos. RESPONSIBILITY OPM/Cabinet Office – Cabinet Secretary PROCUCTIVITY IMPACT

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PROBLEM

Government ICT programs and initiatives are not managed from an integrated perspective with an absence of clearly defined IT governance standards and processes. ICT projects deliver limited value.

POLICY #4

Establish the framework for the governance and management of all ICT systems through the setting and monitoring of standards for acquisitions, determining the scope and rationale for expansion, and the promulgation of legislation that will facilitate the continued development and use of ICT to improve service delivery and customer satisfaction. ACTIONS STerm MTerm LTerm Establish an ICT Governance Framework for x Government with clearly defined roles, responsibilities and accountabilities across MDA’s. Review, update and develop GOJ ICT strategy x x and plan for the effective adoption of ICT across government including digital transformation across MDA’s. Conduct Gap Analysis and execute ICT plan x x to meet goals and outcome of GOJ ICT strategy. Evaluate the existing skills to determine the x x skills gap and address the shortfall through skills up grading and recruitment Implement a Shared ICT Services platform x x X across MDA’s on a phased basis. Review and update all legislation which x x X impact the use of digital/electronic data for the storage, and manipulation and dissemination of data and information RESPONSIBILITY CIO-Ministry of Science, Technology, Energy & Mining/ E-Gov Ja. Ltd/ PSs/CEOs PRODUCTIVITY IMPACT

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PROBLEM POLICY #5 ACTIONS

RESPONSIBILITY

Current procurement policies do not encourage SME participation and innovation or the development of local future skills and capabilities The procurement processes and mechanisms are to be reviewed and revised that they are used as tools to develop future skills and enhance the participation of the SMEs in the local market STerm MTerm LTerm Review the existing procurement policies in order X X to maximise opportunities for SMEs identify he future skills that are required for the X X X local market and implement procurement policies that favour the commitment to the development of these skills Accelerate the procurement process through the X X re-engineering of the procedures through the use of technology to facilitate automation Promote the use of home-grown innovation x x x Offer procurement to locals before extending it to x x x the international environment Review the legislative framework for x x procurement and update accordingly M/Finance & Public Service/Nat’l Contracts Commission/Office of Contractor General / PSs/CEOs

PRODUCTIVITY IMPACT

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PRIORITY POLICY RECOMMENDATIONS Labour Market Information Systems Working Group

PROBLEM

The agencies which collect information on the labour market do not collaborate in an efficient manner and this has resulted in multiple data and information sites with similar data that are not connected nor integrated. POLICY # 1 Establish the collaborative framework where all parties agree on the structure and formation of the LMIS and that an established entity is designated to govern the collection, analysis, storage and dissemination of current information and future developments in the labour market. Within this collaboration, a single repository of information should be created that received data/information from multiple sources in the labour market. ACTION STerm MTerm LTerm Minister and PS MLSS to bring together all x stakeholder agencies, e.g. MLSS, STATIN, PIOJ, HEART Trust/NTA, MOE, JEF, etc., involved in the information flow together to plan for and determine the way forward for an improved LMIS. Develop and implement strategic plan for an x x improved LMIS to include LM indicators, changing structure of the economy, wages linked to job types, etc Designate the entity to govern the LMIS x The necessary protocols governing how data is x gathered, stored, retrieved and disseminated should be worked out. RESPONSIBILITY PS-MLSSS/ STATIN/ PIOJ/ HEART Trust/NTA/MOE/ JEF/Joint Industrial Trade Union/Academia PRODUCTIVITY IMPACT

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PROBLEM

The resources, human and ICT, allocated to management of the LMIS are insufficient to meet the current demand for information on a timely basis and to analyse the information in order to make predictions on future developments and trends in the market. POLICY # 2 Improved operational efficiency of the LMIS can only be achieved through the expansion of the resources dedicated to its operations. ACTION STerm MTerm LTerm Increase the IT resources, hardware and x x software to include business intelligence software, for the collection, management, storage and dissemination of data on the labour market Define the job descriptions for each staff, x evaluate the skill sets existing staff against the revised JDs. Implement programmes to increase the human x x x capacity gaps to undertake the required jobs and recruit additional personnel with he required skills and competencies Develop the IT links for the electronic transfer x x x and receipt of data from related agencies, e.g. STATIN, PIOJ, HEART, etc. Develop and Implement protocols for the x x x transfer and use of data among agencies RESPONSIBILITY PS-MLSS/CIO-MSTEM/E-Gov. Jamaica Ltd./MOFP - Office of Services Commission PRODUCTIVITY IMPACT

23

PROBLEM

POLICY # 3

ACTION

(1) There is limited information on current salaries and wages particularly as they relate to specific jobs. The NIS Annual Return Form includes the “Gross Wages” for each contributor but not the job title. (2) There is under-registration of a number of persons, such as those in the informal sector, the domestic worker, the agricultural worker and some self-employed persons. A review of the NIS regulatory framework and processes is to be conducted to facilitate (a) the expansion of the data collected on the annual return form and the sharing of the data collected with the LMIS (b) taking the necessary steps required to expand the registration of and collection of contributions in respect of persons who are of the prescribed age (18 Years and over) and (c) the review of any other procedure that would improve the overall service delivery in the scheme. STerm MTerm LTerm Establish a team of experts to review the x contents of the Act in relation to today’s environment while making some predictions for the future Conduct a process and procedure review of all x x activities relating to the registration process and granting of benefits with the objective of making them more efficient through the use of appropriate technology Review the annual reporting requirements to x x x establish the link into the LMIS by collecting and providing information on wages/earnings and jobs titles of the individual contributor and classifications of the employer industry through information on the main activity of the business entity. Implement measures targeting persons in the x informal sector to increase compliance under the NIS

RESPONSIBILITY PS-MLSS/STATIN/PIOJ/JEF PRODUCTIVITY IMPACT

24

PROBLEM

The LMIS as an information source is under-utilized for many reasons some of which are: the public is unaware of the contents of the LMIS, the market associates the employment information in the LMIS with low skilled jobs only and in its current form/state the LMIS would not be able to satisfy requests for information on the labour market indicators, etc. POLICY # 4 it is necessary to change the image of the LMIS within the market generally and more specifically within the public sector and other users ACTION STerm MTerm LTerm Recruit a Communication consultant to design x x and implement the re-branding of the LMIS and a public education campaign on the benefits of using the LMIS Establish the policy framework that all public x sector advertisements for recruitment should be placed through the LMIS Encourage all school levers and university x x x graduates to register with the LMIS Link the LMIS system to that of the applications x x for Work Permits RESPONSIBILITY MLSS PRODUCTIVITY IMPACT

25

PRIORITY POLICY RECOMMENDATIONS

National Systems of Innovation (NSI) Working Group PROBLEM

Sustainable cadre of scientists, technologists and engineers to be enablers and facilitators of scientific and technological development within Jamaica POLICY #1 To improve the number of STEM graduates at all cohorts ACTIONS STerm MTerm LTerm Re Training & Re skilling science and X X technology teachers at the primary and high schools Increase science and technology projects in X X X primary & secondary schools RESPONSIBILITY Ministry of Education and Information/MSTEM PRODUCTIVITY IMPACT

PROBLEM

Non-existence of a robust research and development culture supporting pillar sectors POLICY #2 To create a national innovative culture responding to the demand factors from all sectors ACTIONS STerm MTerm LTerm Establishment of programmes to build critical thinking X skills Accelerate the promotion of programs designed to X diffuse skills and behaviour for creativity and innovation Develop cross-training programs for strategic sectors X X of the economy RESPONSIBILITY Ministry of Education and Information collaborating with Ministry of STEM PRODUCTIVITY IMPACT

26

PROBLEM POLICY # 3 ACTIONS

Poor infrastructure to support R&D culture, Science & Technology Development To develop supporting infrastructure to enable innovative-centric culture STerm MTerm LTerm Educational Reform in STEM curriculum at all X cohorts Develop supporting infrastructure systems in X transportation, electrical, water& sanitation, legislative and regulatory reform eg.IP etc to grantee the respect of R&D efforts Engage a public education program in civil X order and respect of public property

RESPONSIBILITY Ministry of Economic Growth and Job Creation PRODUCTIVITY IMPACT

PROBLEM POLICY #4 ACTIONS

Insufficient creativity skills to promote commercialized value propositions, value added goods and services in strategic sectors of an economy Build short-term capacity in R&D experts STerm MTerm LTerm Modification of immigration laws to promote technology and knowledge transfer X Incentives to attract international researchers to X X harness value added from indigenous products Identify and recognize creativity and innovation through the registration of IPs and patents both locally and internationally

RESPONSIBILITY Ministry of Education and Information/Ministry of Industry, Commerce, Agriculture and Fisheries PRODUCTIVITY IMPACT

27

PROBLEM

Low vision and insufficient knowledge in the identification of innovative cross-sector linkages to strategic pillar sectors promoting sustainable economic growth and prosperity POLICY #5 Promote innovation across all sectors eg. Agriculture, Tourism ACTIONS STerm MTerm LTerm Develop national education programs for various X sectors to demonstrate cross linkages in the service/product development cycle Incentives for SMEs to promote entrepreneurial development Create business development clusters to support X cohesiveness for efficient & effective business operations Fiscal and Money incentives for commercialized X innovative products and services across pillar sectors RESPONSIBILITY Ministry of Industry, Commerce and Fisheries, Scientific Research Council PRODUCTIVITY IMPACT

28

References: Barrett, A. P., Tennant, V. M., Cooke, K. O., Kahwa, I,. Ivey, P., & Clarke, S. S., 2016. Reforming Jamaica's National Systems of Innovation. Technical Report, Report #1, Labour Market Reform Commission, Technology, Innovation & Productivity Committee, Public Sector Productivity Working Group, DOI: 10.13140/RG.2.1.2384.1685 https://www.researchgate.net/publication/301341427_Reforming_Jamaica%27s_National_S ystems_of_Innovation Clarke, S. S., Jones, A., Douglas, C., Gutzmer, D., & Duncan, N., 2016. Towards a talent-driven outward-oriented globally-competitive SME framework : Discussion Paper. Technical Report, Report #1, SME Working Group, Technology, Innovation & Productivity Committee, Labour Market Reform Commission, DOI: 10.13140/RG.2.1.1461.0320 https://www.researchgate.net/publication/299747565_Towards_a_talent-driven_outwardoriented_globally-competitive_SME_framework_Discussion_Paper Eyre, M., Tennant, V. M., Douglas, C., Jackson, S., Cooke, K., & Clarke, S. S., 2016. Labour Market Reforms for enhancing Public Sector Productivity in Jamaica. Public Sector Productivity Working Group, Technology, Innovation & Productivity Committee, Labour Market Reform Commission, DOI: 10.13140/RG.2.1.2264.1048 https://www.researchgate.net/publication/301501696_Labour_Market_Reforms_for_enhanc ing_Public_Sector_Productivity_in_Jamaica Jackson, S., McDonald, C., & Clarke, S. S., 2016. Synthesis of major cross-cutting recommendations from the TIPC Working Groups. Technology, Innovation & Productivity Committee, Labour Market Reform Commission, DOI: 10.13140/RG.2.1.4531.0329 https://www.researchgate.net/publication/303114038_Synthesis_of_major_crosscutting_recommendations_from_the_TIPC_Working_Groups Ramkissoon, M. W., Tennant, V. M., Jackson, S., Briscoe, T., & Clarke, S. S., 2016. Human Factors Affecting Productivity in Jamaica: Technical Report on Preliminary Findings. Technical Report, Report #1, Human Factors Working Group, Technology, Innovation and Productivity Committee, Labour Market Reform Commission, DOI: 10.13140/RG.2.1.1589.6729 https://www.researchgate.net/publication/299604127_Human_Factors_Affecting_Producti vity_in_Jamaica_Technical_Report_on_Preliminary_Findings Tennant, V. M., Jackson, S., McKenzie, S., & Clarke, S. S., 2016. Review of the Labour Market Information Systems of Jamaica. Technical Report, Report #1, Labour Market Information Systems Working Group, Technology, Innovation & Productivity Committee, Labour Market Reform Commission, DOI: 10.13140/RG.2.1.2304.8569 https://www.researchgate.net/publication/301612166_Review_of_the_Labour_Market_Infor mation_Systems_of_Jamaica

29

External Respondents / Reviewers / Contributors / Commenters Abdulkadri, Abdullahi (Prof)

Academia

Jamaica

Adomi, Damali

Diaspora / Business

Canada

Al-Ani, Muzhir (Prof)

Foreign / Academia

Iraq

Barrett, Silbert,

Diaspora

UK

Blake, Cecille

Diaspora / UN

USA

Bogle, Verlia

Government

Jamaica

Bowen, T. Renee (Prof)

Diaspora / Academia

USA

Brown, Kemal

Youth

Jamaica

Chin, Michael Lee

Business / Government

Jamaica

Chin-Mook, Edward

Business

Jamaica

Collie, Robert

Business

Jamaica

Domville, Marguerite

Government

Jamaica

Dunn-Smith, Paulette (Dr)

Academia / Business

Jamaica

Edwards, Dianne

Government

Jamaica

Elasrag, Hussein

Foreign / Government

Egypt

El Nady, Mohamed M. (Dr)

Foreign / Business

Egypt

Fasasi, Kamilu Ayo (Dr)

Foreign / Academia

Nigeria

Ford, Lyndon

Government

Jamaica

Francis, Bianca

Government

Jamaica

Gammon, Kent

Business / Government

Jamaica

Gill, Sonia

Business

Jamaica

Gill, Glen

Business

Jamaica

30

Green, Dahlia

Government

Jamaica

Hay-Webster, Sharon

Government

Jamaica

Johnson, Hugh

Business

Jamaica

Kabia, Allieu Badara (Dr)

Foreign / Academia

China

Koirala, Madhav (Dr)

Foreign / Business

India

Kulchitsky, Vladimir A. (Prof)

Foreign / Government

Belarus

Longsworth, Luz (Dr)

Academia

Jamaica

Lynch, Devon (Dr)

Diaspora / Academia

USA

McDonald, Corent

Academia

Jamaica

Morris, A. P.

Government

Jamaica

Neil, Patricia

Diaspora

USA

Nwachukwu, Chijioke E.

Foreign / Academia

Czech Republic

Orane, Zahra

Business

Jamaica

Palmer, Shane

Government

Jamaica

Parker, Shevin

Government

Jamaica

Powell, Ann-Marie

Business

Jamaica

PSOJ, Economic Committee

Business

Jamaica

Ramsay, Angela (Dr)

Diaspora / Business

USA

Roberts-Risden, Collete

Government

Jamaica

Saracevic, Nerma

Foreign / Academia

Croatia

Scarlett, George

Business

Jamaica

Stennett, Andrea

Government

Jamaica

Thomas, Michelle,

Diaspora / Government

Canada

31

Wade, Nadir

Diaspora / Youth

Bermuda

Walters, D.

Government

Jamaica

Williams, Robert (Dr)

Foreign / Academia

UK

32