MONTEGO BAY, St James — The labour shortage in the Business Process Outsourcing (BPO) and hospitality sectors will not likely end anytime soon and pay hikes may need to be considered in any effort to attract workers to both industries, says Jamaica Employers’ Federation (JEF) President David Wan.

“Let’s put it this way, both industries are going to face a little more in the medium term before they can resolve this,” he told the Jamaica Observer on Monday.

Last week, Business Process Industry Association of Jamaica (BPIAJ) President Gloria Henry sounded the alarm that the sector was having a challenge finding suitable employees. She was concerned that there were not enough high school students with the three Caribbean Examinations Council (CXC) passes, at minimum, needed.

Yesterday Wan said at least one major player in the sector is now asking for five CXC passes as it moves operations up the value chain.

“They’re having much less candidates to interview out of the high school system,” he said. “Only about half of all the high school grads get the three CXCs or more. And then that half is now reduced in terms of our talent pool because some companies have moved up to five CXCs.”

With the wages being offered in the sector not attractive enough to lure overseas talent, the only option is local labour, Wan said. It will take time, he noted, to see an improvement in students’ performance. With demand outstripping supply, more attractive salaries would help lure workers. But that comes with its own set of challenges.

“They may have to raise their wages a little more, but it’s a balancing act. If they raise the wages for the incoming employees to get more, they will have to raise it for those who are already there. Otherwise, you’re gonna find a lot of disgruntlement. So, for them, I don’t see an easy way out,” he said.

Meanwhile, in the tourism sector, which has more flexibility in its CXC passes requirements, the challenge is in finding skilled workers — also not an easy fix.

Earlier this year Tourism Minister Edmund Bartlett said 50,000 skilled workers would be needed for the winter season. The season began on December 15 and the complaints have started to roll in about a shortage of workers with certain skill sets.

Bartlett recently announced a database that will make it easier for job seekers and employers in the hospitality sector to find each other. It is supposed to become available in early 2022.

Wan said that was a “good start”, but again spoke of the need to explore the level of remuneration being offered.

“They might have to raise the wages that they’re paying… to solve the labour problem as one of the elements of a strategy. That’s my view,” he said. “The problem gets worse as you have more skills required.”

With the hospitality sector just trying to get back on track after being pummelled by the novel coronavirus pandemic, any effort to move the needle on salaries is likely to be a hard sell.

“They’ll probably say that they cannot afford it right now. But if the customers keep coming in and… you keep getting money from the customer, you’re going to find a way to increase your pay so you can attract the workers that you need. That’s just my thinking,” said Wan. “So what counts is the business coming in the front door. If there’s plenty of business coming in, I suspect that will help to solve the problem.”