Pay to get the best employees

One of the greatest challenges that face small businesses and sometimes even the larger corporate world is unskilled or under qualified labor force.

I have worked and visited few countries in the past 12 months from the US to India to Saudi Arabia to Qatar. As a young graduate, I started my career with a small company in TX, USA, most of the labor force of that company consisted of young graduates with very limited experience. The company strategy was, as most small businesses do, is to hire young workers or workers with limited experience to cut costs. The end results were disastrous, the company was not able to carry on with its obligations, many deliverables didn’t meet client expectations and most projects ran over budget and the end result was “a bankrupted company.”

What made me write about this subject is my current experience. Right now I am working in the Area between Saudi Arabia, Dubai and Qatar, this area known locally by “The Arabian Gulf.” Because of the rising oil prices, governments here are spending billions of dollars in all areas of developments, which is great, but most projects depends heavily on cheap labor brought in from South Asia. As I live in this area, I see why the development over the past 20-30 years has been slow although billions of dollars were spent on thousands of projects, the main reason for that is the total dependency on cheap labor, most projects were not executed properly because of lake of experience, many projects were done over and over.

The management tip here is “don’t really on cheap labor; it will cost you down the road.”