Managerial skill development in the readymade garments industry of Bangladesh: an exploratory study

Skill shortages are a major problem for many organisations around the world. Managerial skill shortages, in particular, negatively affect the profitability and performance of a firm due to high turnover, high cost, and low retention. Industries across developing countries suffer more from managerial skill shortages compared to developed, industrialised countries. The readymade garment (RMG) industry in Bangladesh is no exception. This industry spends around 20% of its revenue, worth approximately US$6 billion annually, in recruiting skilled managers from overseas. Using a qualitative research method, this research investigates the current state of managerial skill shortages in the RMG industry in Bangladesh, the reasons for such shortages and possible mechanisms to remedy them.

Preliminary evidence shows that skill shortages exist across the industry to a varying degree, while both internal and external labour markets are failing to provide adequate supply of managerial skills. As a mechanism to overcome this problem, some firms are adopting a proactive role in developing their own staff through training and development; some hire key technical managerial skills from overseas, while others rely on the external labour market.

This study has developed a framework for analysing and mitigating such shortages by the firms and its stakeholders and applies it to the RMG industry. Findings have implications for the industry and its stakeholders, including the government, employers, and employees. This study also contributes to management literature and theory related to skill shortages and skill development. Academic scholars, researchers and managers who are interested in the nature and implications of skill shortages will benefit from this study.