1. Elaine Bourne
President
HRMAB Inc.
Introduction
Most challenges facing Barbadian businesses in the
public and private sector entities are HR-related.
Yes, it is beyond the scope of HR professionals to
directly create jobs, but HR professionals are well
positioned to influence decision-makers. HR can
play its role in these key areas:
• Reducing the unemployment rate
According to the Barbados Statistical Service,
the unemployment rate in Barbados for
the third quarter of 2011 is 12.5 percent, an
increase from 12.1 percent in the second
quarter of 2011 (Retrieved 10 January 2012
from http://www.barstats.gov.bb). It is certain
that economic conditions will not improve
Opportunities for Growth
in a Depressed Economy
The ‘Great Recession’ has had a significant
impact on the Barbados economy.
Inthisissue
New Members’ Induction Ceremony
- February 25, 2012
Mentorship Circle Meeting
- March 6, 2012
HRMAB Annual General Meeting
- March 31, 2012
HRMAB Annual Conference
- October 18 & 19, 2012
UpcomingEvents
The Paradigm Shift for the Growth
Agenda 2012 and Beyond
By Anthony Sobers (National Productivity Council)
HRMAB in Action
Picture Gallery
HRMAB Notices
LOOKING FORWARD
TO 2012
until businesses start key activities such as
investing, improving operational efficiencies,
and ultimately hiring workers. This cycle
creates additional income and the economy
starts growing.
• Increasing productivity
Efficient utilization of employee knowledge,
skill, ability and other (KSAOs) characteristics
are the lynchpins of business success, and
hiring the right employee for the job is
essential. HR professionals can help businesses
increase productivity by working closely with
line managers to ascertain the skill deficit
and access a continuous supply of talented
employees. Continuous access to talented
employees enhances a business’ viability.
• Gap analysis: Skills or training?
Employers should cease the blaming of
educational institutions or workers for
skill deficits and start training individuals
who have an acceptable amount of skills,
and/or qualifications. It is advantageous
for businesses to forge stronger ties with
tertiary institutions to influence curriculum
development and ensure there is a constant
supply of malleable talent.
Conclusion
The Government, technocrats and independent
economists will debate what is essential to
stimulate job growth. In the meantime, HR
professionals need to be proactive and help
workers find jobs. It is evident that the HR
professional plays a key role, though indirect, in
resuscitating the Barbados economy.
A MESSAGE FROM THE PRESIDENT
New Year’s Wishes
Dear HRMAB members, sponsors, exhibitioners and stakeholders, we thank you for your generous
support during 2011. Last year, the Barbados economy experienced another challenging year, and
realised marginal growth of 0.5% (Central Bank of Barbados Press Release December 2011).
Through your support and contributions we were able to offer, though at a reduced level, programmes to
members and the public. This year as HRMAB celebrates its 15th Annual Conference and Exhibition on
18th and 19th October, we invite you to partner with us as we strive to make this anniversary memorable!
Yours truly,
Elaine Bourne
President
HRMAB Inc.

2. 2
JANUARY2012,Volume2Issue5
Human Resource Management Association of Barbados Inc .
The ‘Great Recession’ has had a significant impact on the Barbados
economy. In real terms, the total output of goods and services produced
by the economy contracted by around 4 per cent between 2008 and 2009.
Since this period, the recovery has been modest with growth estimated
at less than one per cent in 2010 and 2011. The deterioration in the
fortunes of the economy was primarily due to a cumulative 4.5 per cent
decline in real value added of tourism between 2008-2009, which had
knock-on effects on the rest of the economy. Construction, in particular,
experienced the greatest decline as private investors delayed or cancelled
investment projects due to global uncertainty. Of note, work on the 110-
key Four Seasons Resort and Private Residences, was halted due to cash
flow issues surrounding the global financial crisis. Due to the relatively
anaemic rate of economic expansion, the unemployment rate has almost
doubled from 6.7 per cent in 2007 to 12.1 per cent at the end of June 2011.
OpportunitiesforGrowthinaDepressedEconomy
One of the main lessons from the last major recession (1990-1992) was the
important role played by wage policy, in particular, and human resource
policies, in general. Given the fixity of the exchange rate and the high import
content of domestic production, labour costs tend to be a key determinant
of external competitiveness: the higher the unit labour cost, the higher the
final price of the good or service. Within this context, performance-based
payment plans can be beneficial. Increasing the flexibility of labour costs
can reduce the volatility of employment as well as the number of jobs shed
during a recession. The latter obtains during a recession because the firm’s
labour cost would tend to fall as the output/sales decrease, while during
booms, when firms’ output and profits are rising, wages rise to compensate
employees for their increased productivity.
There is currently no legislation that deals directly with the issue of
productivity-based payment in Barbados. Performance-related pay is
also currently taxed at the same rate as normal pay. Looking around the
world, a number of more developed countries allow individuals to receive
earnings from profit sharing schemes tax-free, up to a certain limit. To
provide an estimate of the potential revenue implications of a reduction
in the tax rate on performance-related pay, tax rules were applied to a
database of over 3,000 taxpayers to undertake a simulation analysis.
Usingmodestassumptionsinrelationtothenumberofindividualsclaiming
performance-related pay as well as restrictions on the amount that can be
claimed, it was estimated that income tax receipts could fall by between 1
per cent and 5 per cent of personal income taxes. These potential revenue
losses can, however, be offset if the lower tax rate on performance-related
pay boosts national productivity, as this could lead to higher national
income and therefore greater revenue from other tax categories.
The possibility of taxing productivity-based payment schemes at a
different rate is therefore one possible strategy that can be considered
over the medium-term as a growth enhancing strategy. This strategy
would not only enhance productivity as well as competitiveness, but
would also provide a built-in flexibility for the economy and businesses
during future recessions.
Presented By:
Winston Moore (PhD)
Department of Economics
University of the West Indies
Cave Hill Campus
winston.moore@cavehill.uwi.edu
Figure 1: Real GDP Growth in Barbados
Source: Central Bank of Barbados

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JANUARY2012,Volume2Issue5
Human Resource Management Association of Barbados Inc .
Many enterprises are dreaming of establishing a
high-growth trajectory. However, their long-term
success will depend on their ability to recognise,
evaluate, and pursue growth opportunities
but also to create a prevailing environment to
facilitate such growth and expansion.
The way forward is to think not only about
product and sales repositioning but to remove
the impediments to human resource creativity
and innovation. Chief Executive Officers will
have to create a paradigm shift that proactively
engages Human Resource (HR) professionals
in the organisational growth strategy and allow
them to be creative in attracting, motivating and
managing the human resources component to
exploit on growth opportunities.
Human Resource Management must
advance its responsibility from the attraction,
selection, training, assessment, and rewarding of
employees to include organisational leadership
and, culture-building. They must demonstrate
more than a cursory view of strategic initiatives
like mergers and acquisitions, talent management,
successionplanning,laborrelations,organisational
diversification and performance.
As general management seeks to prevent
further stagnation and to drive growth, HR must
demonstrate that it can be accepted as a strategic
partnerwithintheorganisation.Suchprofileshould
lead to an organisational culture that encourages
high performance with emphasis being placed on:
• Establishing strategic thinkers at the speed of
change across the organisation.
• Investing in continuing education, not just
on specific job requirements, but also on
improving communication, skills application
and other interpersonal skills;
• Understanding industry conditions and
changes, technological developments and
training to meet the anticipated changes,
• Engaging in organisation-building efforts,
particularly those that hone in on
opportunities, competencies identification
and assessment.
• Developing systems that reinforce creativity
and innovation.
• Implementing rewards systems for
productivity, quality and innovation.
• Understanding and ability to effectively
manage the human resource value chain.
As enterprises seek to prosper and grow through
restructuring, this strategic repositioning of HR
professionals will help prevent organisations
from maintaining routines that have worked in
the past but may not engineer the success that
is required, to keep the company competitive;
and importantly will work to establish human
resources as the value-added asset.
Another critical component will be Change
Management. This must be a focal point, where
Human Resource managers and practitioners
are partnered to establish a “corridor for change”
that will drive the development and growth of
the business. This transformational environment
must encourage strategic thinking, innovation and
novelty for success. Performance measurement
must be established at all levels to evaluate,
monitor and provide feedback on performance on
a timely basis. It must create a fearless environment
to ask probing questions.
The pursuit of flexibility must be an important
driver for the organisation towards sustainable
effectiveness. It should seek to enable the
organisation to improve worker decision-
involvement, promote creativity, innovation and
worker commitment, whilst maintaining the
option to act unilaterally and decisively given
the pragmatic environment. It should enable the
company to quickly achieve a better ‘fit’ within
its environment, whilst creating a sustainable
competitive advantage for growth.
Technology has been recognised as one of
the most significant forces affecting business
competition. Professor Michael Porter of the
Harvard Business School identifies in his book
Competitive Advantage (1985), that technology
has the potential to change the structure of
existing industries and to create new industries.
It is also a great equaliser, undermining the
competitive advantages of market leaders and
enabling new companies to take leadership away
from existing firms.
Since technology is a means to globalisation,
HR system must continue to embrace the use
of technology in their business strategies
and operations. It has been recognised that
technology is inherently difficult to manage
because it is constantly changing, often in
ways that cannot be predicted and can also
be abused, therefore technology policies and
practices should be established to leverage/
control technologies used, whilst building,
maintaining, and enhancing the competitive
advantage of the company.
“EnvironmentalAnalysis”forHRpractionersmust
also be seen as a useful tool to anticipate new
events, trends, and changes that may result from
legislation and regulation, competitor initiatives,
lifestyle changes, technological developments,
otheroccurrences,thatwillimpactonthehuman
resource performances. Negative environmental
constraints must not be seen as threats, but
as a reason to change the modus operandi to
reconfigure the strategic approach or to develop
breakthroughcompetencies.
Clearly, Human Resource Management must
be part of the wider organisational growth
strategy and organisational planning as we
move forward. However, we must not let ego
prevent success. A manager admitted that
he did not push an idea because it was from
“Human Resources”. Some people manage
businesses with their ego as the primary
consideration. Ego does guarantee business
success. Success is based on the ability to
generate or collate ideas and implement base
on objective decisions. Don’t worry — once
your company is successful, your ego will be
“large and in charge”.
Presented by:
Anthony Sobers (HRMAB Member)
Programme Manager
National Productivity Council
asobers@productivitycouncil.org.bb
TheParadigmShiftfortheGrowthAgenda2012andBeyond

4. 4
JANUARY2012,Volume2Issue5
Human Resource Management Association of Barbados Inc .
HRMAB In Action Photo Gallery 2012
Building #2, Suite 104F, Harbour Industrial Estate, Harbour Road, St. Michael
BARBADOS W.I.
Tel: (246) 228-5518 •Fax: (246) 435-6621
Email: admin@hrmab.org.bb Web: www.hrmab.org.bb
HRMAB
MEMBERSHIPUPDATE2012!!
Aswithanymembershipbasedorganization,members’detailssuch
ascontactnumbers,workand/orhomeaddressesand/orjobtitles
maychangeperiodically. Assuch,theupdatingofourmembership
databaseisacontinuousexerciseinwhichwemustengage. Doing
thisensuresthatwehaveatalltimesanaccuraterecordofmembers’
contactdetails.
Updateformsarecurrentlybeingdistributedtomembersviaemail.
Ifyouhavenotyetreceivedyourupdateform,kindlycontactour
Secretariatviaemailatadmin@hrmab.org.bborTel:(246)228-5518.
Thiswillensurethatyoudonotmissanycorrespondencefromthe
Secretariat.
Remember - Update your details today!!
Regards,
Member Relations Team 2011-2012
HRMAB Inc.
HRMAB Notices
OurHRMABSecretariathasmovedtoanotherlocation
Seenewaddressbelow
Newsletter&Website
ContributionsInvited
The HRMAB Publications Team, via its quarterly newsletter, HRMatters,
consistently strives to provide our readers with information on leading
HR management practices, professional trends, and industry updates. To
make this happen, we rely on submissions from our readers/members
and guest contributors.
Please note that on receiving your article, HRMAB acknowledges your
intellectual property. We are developing a Knowledge Centre and reserve the
right to reprint or redistribute any of the articles published in HRMatters, free
of charge. As author, you will receive accreditation at all times.
We therefore invite the submission of articles written on the following topics:
Compensation, Recruitment and Selection, Labour Relations, Health
and Safety, Organizational Learning, Training and Development, Labour
Legislation, organization and professional trends, reviews on books (not
written by you or your organization) that deal with relevant HR topics,
issues, trends, concerns, etc.
Different from a book synopsis, a review explains briefly what the book is
about, tells the audience what is good or bad about the book, why it’s good
or bad, who should read it, etc. A book review is a critical piece of writing
thatanalysesthebookthroughthelensofanHRprofessional. Moreover,feel
free to send us any other articles written on general matters which you think
would be of interest to our members.
If you have an article for submission or questions about the above, please
contact the HRMAB Secretariat at admin@hrmab.org.bb or the Publications
Coordinator directly at publications@hrmab.org.bb.
We look forward to receiving your contributions very soon.
Research & Publications Team 2011-2012
HRMAB Inc.
HRMAB Induction
Ceremony 2011
HRMAB Annual
Conference
October 2011