Labor Pool Study yields good news for new business

by Fili Sagapolutele
Samoa News Correspondent

Up to 2,000 qualified workers are available in American Samoa for new industries, such as call centers, with another 6,000 that might be lured from neighboring Samoa, according to the University of Hawai'i (UH) report on the "American Samoa Labor Pool" study.

Funded by the U.S. Department of Interior, the 300-page report was compiled by the UH's Pacific Business Center Program (PBCP) and presented to Gov. Togiola Tulafono three weeks ago in Honolulu.

ASG contracted PBCP to identify a quality labor pool available in the territory and nearby islands to support the creation of new ventures such as ventures in the "knowledge industry" i.e. call centers, according to an executive summary of the report received by Samoa News.

Project manager and PBCP director, Papali'i Dr. Tusi Avegalio told Samoa News over the weekend the study "points to a supportive number" of workforce in both American Samoa and Samoa.

"It also takes into account the feedback of matai and various other stake holders which surveys of this kind do not necessarily measure, much less include," said Papali'i via e-mail from Honolulu. "Another important point, is that all estimates are very much on the conservative side so that there are most likely many more people who are qualified, interested and available than the figures we used."

The qualified ALP identified in the study demonstrated the necessary analytic and verbal skills to satisfy the requirements of new ventures in the knowledge industry. This included knowledge of computer usage, elementary mathematics skills such as elementary trigonometry, and, importantly, adequate command of written and spoken English language.

"Culture impinges upon every aspect of human behavior. Fa'a-Samoa, the Samoan way of life, is a very significant aspect of daily life of the Samoan people," it says. "To accurately assess the qualified ALP for a new venture in the knowledge industry in Samoa, fa'a-Samoa must be taken into consideration when designing the research methodology."

According to PBCP, the multi-methodology research design chosen for this study is more reliable and valid than a single methodology design.

RESULTS

A multi-methodology design allowed the PBCP research team to assess the ALP from diverse perspectives, and across differing levels of measurement and analysis. The teams used four methods, with their results below:

· Random telephone survey in American Samoa: yielded a qualified ALP of 6,464 adults based upon 2007 population estimates. This group has the necessary skills to meet the needs of jobs in the knowledge industry. This number is based upon quality benefit packages and a wage rate of $6.50 per hour.

If the wage rate was reduced to $5.50 per hour, the qualified ALP predicted by the telephone survey plunges to 1,521 adults.

· Paper and pencil surveys in randomly selected villages in American Samoa: yielded a qualified ALP of 6,476 adults based upon the 2007 population estimates. This group has the necessary skills to meet the needs of jobs in the knowledge industry and this number is based upon quality benefit packages and a wage rate of $6.50 per hour If the wage rate was reduced to $5.50 per hour, the qualified ALP predicted by the village survey plunges to 1,766 adults.

· American Samoa Focus group discussions: yielded an estimated qualified ALP of approximately 2,000 adults at prevailing wages such as wages offered for government employment. If the wages were increased above prevailing government wages, then the focus groups estimated the qualified ALP to be approximately 6,000 adults

· Matai and opinion leader interviews: no consensus appears to have been reached as to the size of the qualified ALP in either American Samoa or nearby islands.

"As a consequence of the results of these multiple methodologies, the PBCP team triangulates a qualified ALP of approximately 1,500 to 2,000 adults at prevailing government level wages in the Territory," according to the report. "If wages are increased to $6.50 per hour, then the qualified ALP grows to approximately 6,000 to 6,500 adults now residing in the Territory."

"However, it must also be strongly acknowledged that of the 6,000 to 6,500 adults qualified for knowledge industry employment at the higher wage rate, a refined analysis of our data indicates that over 50% of these individuals are currently employed by the government of the Territory," it says, pointing to competition for 'the best and brightest of the Territory', with all the ramifications that may entail for the quality of future government services.

The team also conducted surveys in randomly selected villages in Samoa, and has determined that there exists a qualified ALP of 6,251 adults, based upon 2006 population estimates, who will be willing to work at wage levels considerably lower than prevailing government wages in American Samoa.

The PBCP team also conducted a telephone survey of Samoan households in Hawaii in order to determine the extent of a qualified ALP of Samoan adults willing to consider relocating from Hawaii to American Samoa for the "right" opportunity.

"The research identified a qualified ALP of 1,783 adults of Samoan heritage in Hawaii willing to consider relocation," the report says. "Surprisingly, these 1,783 qualified adults were willing to work in American Samoa at prevailing American Samoan government level wages."

CONCLUSION

The PBCP team says a new venture in the knowledge industry, such as a call center, could find, at prevailing wage rates, at least 1,500 to approximately 2,000 qualified available workers currently residing in the Territory.

In addition, approximately another 6,000 might be lured from Samoa and approximately 1,700 might be lured from Hawaii, but this process will likely be replete with complications and costs associated with that relocation, born both by the venture and the current residents of American Samoa.

"Or the new venture could offer wage rates higher than those prevailing in government service, and thereby find a qualified ALP of approximately 6,500 who are current residents of American Samoa, but this is likely to result in the serious depletion of the government workforce, with the best and brightest being the first to leave," it says.

A third alternative, suggested a number of times by matai and opinion leaders in both American Samoa and Samoa, involves a dual organizational design with the central venture located in American Samoa.

"It is suggested that a new venture in the knowledge industry consider designing an organization with its central structure and top management located in American Samoa, but for the time being limiting the size of this workforce to approximately 2,000 qualified adults," the PBCP team says.

"In addition, the organizational design will also embrace a sister entity in Samoa, with a middle level of management reporting to a central center in American Samoa," the team noted.

The sister venture will have access to the qualified ALP in Samoa of approximately 6,000 willing to work at very favorable wages.

"Lastly, the Samoan way of life will greatly influence the success or failure of any new venture located in the Territory. This will be true in recruiting a new labor force as well as managing that human resource. Only through recruitment and management approaches that are consistent with faa-Samoa, will a new venture be able to attract and maintain the qualified labor force necessary for success," it says.

Reach the reporter at fili@samoanews.com.

© Osini Faleatasi Inc. dba Samoa News reserves all rights.

 

 

 

 

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