Remote work has been gaining a lot of attention in the Caribbean region as a possible solution to the longstanding brain drain that has been occurring. In this article, we discuss a few of the pros and cons of remote work for Caribbean countries and for the Caribbean worker
In the past recent weeks, much has been made about the upsurge in remote work that has occurred, which could reduce the ‘brain drain’ Caribbean countries have been experiencing for decades. The term ‘brain drain’ is defined as a country’s loss of its most educated and talented workers to other countries through migration. Typically, these workers are emigrating from developing countries to developed countries or areas, and are seeking more favourable economic or professional opportunities. On the flipside, the countries losing these workers are likely to face more hardships as there is now a deficit in the talent available to improve their economies.
Having said this, countries, particularly those in the Caribbean region, do realise benefits when their citizens emigrate. Among the most important, is the remittances sent by overseas workers to relatives in their home country, which in the region, has been a significant contributor to countries’ GDP (Gross Domestic Product). According to a recent CARICOM article, among the main CARICOM countries, Jamaica, Haiti and Guyana are receiving significant remittance inflows:
The IOM indicated that since 2015, remittances have contributed 15% of Jamaica’s GDP, 37% to Haiti’s and 11% to Guyana’s. Remittances are now mainly coming from migrants in the USA, Canada, the UK, and in other CARICOM countries (e. g. Antigua and Barbuda, Bahamas, Barbados, Suriname and Trinidad and Tobago) and Associated CARICOM countries (e.g. the Cayman Islands, British Virgin Islands). For Haiti, France and the Dominican Republic would also be sources of remittances. Of course, having the largest number of CARICOM migrants, the USA is the main source of remittances.
Cognisant of the attention that is being given to remote work as an opportunity for employment and to reduce the brain drain, in this article, we discuss a few of the pros and cons of remote work for Caribbean countries and for the Caribbean worker.
Benefits of remote work
First, a distinct benefit of remote work is the fact that a country’s skilled and talented workers remain in-country. Not only do these individuals contribute to the local economy, through their spending locally and the taxes they pay, they are also available to participate in the society, and thus potentially can help to improve their home countries.
Second, and through the wider deployment and acceptance of remote work, the job opportunities available would have expanded considerably, when compared with the types of and number of jobs that tend to be available locally. Essentially, remote work is fostering a (more) global posture as it relates to connecting talent with job opportunities, and workers are not limited to opportunities offered in-country only.
Third, and continuing in the vein of the previous point, workers may actually find job opportunities for which they will be able to apply more of the skills they had learnt. This point reflects a particular challenge in the Caribbean, and especially in the tech space, where for example, a number of our computing science and computer engineering graduates, end up working as repair and maintenance technicians.
In addition to not being able to apply the depth and breadth of skills they would have developed through their training, relatively speaking, the remuneration is modest and there tends to be limited scope for professional growth and upward mobility. Remote work may be one of the ways countries can keep more of their college and university graduates in-country, although they employers reside internationally.
Finally, a frequently mentioned contention of the Caribbean region’s business environment is that generally, it is not ‘first world’. However, and to varying degrees, this view is also expressed with regard to the sectors and segments of the economy. For example, a criticism levelled at the software development and coding space, is that Caribbean software developers do not possess the skills that is expected internationally, and neither have they adopted best practice in their approach to coding and managing large software development projects.
However, through remote work, there is the opportunity for the skillsets of local workers to be elevated through the exposure to the more advanced and rigorous standards that have been adopted by international employers. Ultimately, there is the potential for a trickle-down effect to be experienced in the local industry resulting in the overall improvement in the skills and expertise of the local talent.
Challenges of remote work
On the other hand, and in the first instance, the increase demand of skills, through the sheer number of job opportunities available via remote work, may also be met with an increase in the supply of talent for those jobs. The considerably larger the pool of candidates from which to choose could result in greater competition for the jobs available. So instead of 100 candidates applying for one position, which might occur locally, it could be 10,000 candidates applying for one position, which completely changes the scale of the recruitment process, and potentially, the more competitive nature of the remote work space.
Second, and following the earlier point on Caribbean talent not possessing the types of competences international recruiters expect, in a global supply marketplace, Caribbean workers may be more likely to be overlooked in favour of candidates that possess the skills and expertise desired. For localised recruitment, employers may need to make do with the candidates who are based in a specific area, state or country, and so may need to be prepare to provide training and options to upskill. In a remote work construct, investing in the skills development of workers may no longer need to be a priority now that the pool from which to choose is considerably larger.
Third, as organisations seek to capitalise on getting highly skilled workers in developing countries who they can pay a fraction of what they would pay to workers in developed countries, it is likely that these remote work arrangement would be either short term, or for a fixed period. As a result, contracts may end at any time, and workers may have limited job security. Moreover, it is likely that remote workers would be classified as contract workers (or consultants), and so may not be eligible for the typical benefits the organisation’s employees would receive.
Additionally, and in the majority of instances, the remote work arrangements are between an employer and an individual. Typically, there is no relationship between the employer and the government of the country in which the individual lives, and so the employer will not be paying taxes or statutory deductions, or in any way contributing to the economy where its remote workers are based.
Finally, and following from the heightened competition within the talent pool, there is the potential for labour arbitrage. In comparison to other countries and regions, the cost of living in the Caribbean region is high, which in turn is reflected in the wages and salaries accepted. However, for countries that are able to provide talent possessing skills equivalent to or better than that offered here in the region, and are able to do so at lower salaries, organisations may be inclined to select the less costly candidates.
In summary, although remote work is here to stay, it cannot solve all of the challenges that have resulted in the brain drain in developing countries, and in the Caribbean region in particular. Most critically, it is easy to overlook the fact than not all jobs can be done remotely. For example, nurses are in great demand in the United States, Canada and the United Kingdom, and hundreds, if not thousands, of Caribbean nurses have been headhunted to emigrate to those countries. As a result, and to varying degrees, Caribbean countries may not have enough nurses to serve their local health sector and population.
It thus means, that as remote works gains an even stronger footing, Caribbean countries ought to carefully examine the benefits that can be realised when citizens are able to remain in-country but work remotely. There are challenges in the remote work construct, and which to some degree it may be possible to mitigate, but that requires prudence, in order to not upset the delicate balance that exists between demand and supply.
Image credit: Pxhere
With regard to the point of individualised contracts, probably a leaf can be taken from the Indian approach. Companies employ Information Tech specialists exclusively for this and other similar sorts work.
The work is sourced by the company, the specialist who does the work is paid by the local company. It’s becoming a trend where firms are now looking to India, not to headhunt specialists so they emigrate, but to work remotely through their respective employers.