An article in La Prensa today highlights the difference between executive salaries and those of government officials in Panama. One thing that I consider a tribute to this administration is that many of the ministers and vice ministers are businessmen who are making a fraction of what they make in the private sector operating their businesses. They work in government because they want to make a difference during their term and then go back to their private sector jobs a soon as their term is up. This is the way politics should be IMO. In previous administrations you had only a few ministers with qualifications other than having helped get the president elected. They wanted the power and popularity, but did little of substance.
But this administrations ministers see significant challenges at lower levels than ministers and vice ministers. It is hard to attract talent when the private sector offers two to three time the salary and benefits. I do understand the challenges of trying to accomplish great things when talent is so limited in a small country like Panama.
The solution may just come down to a form of educated and experienced immigration visa. If there were more talent available the cost of talent would not be as high. There are millions of talented unemployed around the world who would probably welcome a challenge working for a government in a foreign land.
minerva bethancourth
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The Government needs to attract talent from the private sector to develop many of the projects he plans to run.
However, one of the main obstacles to attract specialists and professionals who thrive in the private sector is the low wages paid in the governmental sphere.
The minister of Economy and Finance Alberto Vallarino is aware of the situation. In a talk recently he expressed some frustration with the need to attract talent from the private sector to develop the work contained in the investment program, valued at $ 13 billion 600 million and the wage gap that exists.
Of the 14 ministers that the current government has more than 50% comes from the private sector, therefore, are used to a rhythm and different working method is practiced in the machinery of government.
There are even a lot of brain drain from the Government, just over wages, a source said.
A review of the return of some ministries offers a view on the wages earned in the government, and helps to establish comparisons with the fees that are charged on private enterprise.
Within the high charges in the governmental sphere, we see the post of minister and deputy minister, who enjoyed a salary of 3 thousand dollars and 3 thousand 500 dollars, not including the fees of which are another component in the salary.
Extrapolating these jobs to a private company, where higher charges are the manager and his senior executives, salaries ranging from 5 thousand dollars and 18 thousand U.S. dollars, according to a market survey conducted by the firm KPMG. The wage gap is significant, making it difficult to recruit private practitioners in government.
However, jobs related to the area of technology, engineering and special projects within the government reflect higher wages to the median wage in the central government, which is located at $ 738, according to the report template to February of this year.
According to Linnet Jessica Benitez, manager of Advisory Services of KPMG People, no doubt that wages in the private structure influence in attracting talent.
Another aspect to consider, according to Benitez, is that private enterprise tends to provide other cash benefits for executives, such as annual increases in productivity or performance bonds (which range between 16% and 25% annual compensation). They also offer profit sharing, fringe benefits, life and hospitalization insurance, provision of car, pay union membership or professional associations and social clubs.
"When you consider all of the executive compensation package (ie salary plus benefits in cash and in kind), it becomes even more evident the difference between a sector and the other," he reflected.
Regional manager for Central America and Dominican Republic Manpower, Luis Fernando González, not only affects wages to attract staff of the private sector, but other factors such as work environment, teamwork, training and development.
It is therefore necessary to reinforce the work done in different sections of the Government with professionals from business, to gain experience and improve business areas that are experiencing a climate of motivation, organization teamwork , adherence to standards and policies. Both private business and government management stem from different angles.
While the company seeks to maximize profit, the State must strive for the best development and welfare of citizens in various aspects, such as economic, educational and health fundamentally sentenced Tom Rodriguez, economic analyst with the National Competitiveness Centre.
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