Preparing Bangladesh for a disruptive global era

Bangladesh is one of the fastest-growing economies, with expanding trade and GDP growth of around 4 percent. As a major South Asian trading hub, it attracts many foreign companies. While the country aims to become a developed nation by 2041 and continues progress towards the Sustainable Development Goals (SDGs), sustainable advancement requires looking beyond trade and economic indicators. The priority, I believe, should be a stronger focus on human capital development.

Human resources (HR) plays a vital role in corporate success by upholding company values, ensuring legal compliance, managing employees and mitigating risk. Today, HR managers face the challenges of rapid innovation, growing regulatory demands and increasingly complex operations. While compliance and HR are closely linked, they remain distinct functions. Effective coordination between the two is essential to maintain integrity and productivity.

Bangladesh produces around 750,000 graduates each year. National University accounts for about 450,000 of them, yet nearly 70 percent of its curriculum is considered misaligned with industry needs. Meanwhile, the economy generates around 300,000 formal jobs annually. Between 2016 and 2022, 8.7 million jobs were created for the 14 million young people who reached working age during that period. Bangladesh’s labour force stood at around 77 million in 2024, with an employment rate of 61.9 percent.

Most companies hire fewer than 10 employees a year. So, who succeeds in such a competitive environment? The phrase “managers hire attitude, not skills” reflects a hiring philosophy that prioritises mindset, character and coachability over technical ability. Yet 62 percent of employers report that young job applicants are underprepared or unsuitable for the roles they seek. There is also a shortage of skilled managers capable of training new entrants. Experience is often valued more highly than potential. Technology presents another challenge. By 2030, AI and automation could displace 20 percent to 30 percent of jobs in developing countries, including Bangladesh.

Against this backdrop, HR managers need a broad mix of soft skills, technical expertise and HR-specific competencies, as well as opportunities for continuous professional development. Recent global workforce and HR reports show that about 90 percent of executives plan to maintain or increase investment in upskilling, reskilling and workforce development in response to AI and labour market transformation. This reflects a strong commitment to learning and development.

These capabilities should be embedded in current and future managers through training and professional development and should also be considered during recruitment. Analytical thinking, active learning, problem-solving, stress tolerance, adaptability, social influence and leadership are essential qualities for HR and compliance professionals. Equally important is the ability to use technology effectively and navigate increasingly digital workplaces.

Empathy and emotional intelligence are also critical. HR professionals must respond effectively to unexpected situations, maintain discretion, uphold ethical standards and manage sensitive matters responsibly. Empathy and compassion help create supportive workplaces and strengthen employee engagement. Strong interpersonal communication skills are another key requirement. Effective communication shapes relationships, resolves conflicts and improves organisational performance. Coaching helps employees improve future performance, while counselling addresses emotional and psychological concerns. Both are important tools for supporting people in the workplace.

In Bangladesh, the outdated education system remains one of the greatest barriers to meeting the demands of a rapidly evolving job market. We continue to rely heavily on methods established nearly a century ago, particularly memorisation-based learning. If we want to compete globally, education reform must be the starting point. Competition today extends far beyond local industries. The global marketplace is the real arena. Adapting to change will help us remain competitive, but embracing change proactively will enable us not only to keep pace but also to lead with confidence in a rapidly evolving world.

The writer is president of the American Chamber of Commerce in Bangladesh and a former president of the Foreign Investors’ Chamber of Commerce and Industry