The nationalization drive in Saudi Arabia (also referred to as localization of the workforce) is driving changes in how organizations manage their human resources. Utilizing human resources departments, organizations are now expected to align their hiring, training, and compliance strategies with the mandates of the government, as well as meet the requirements of productivity, competitiveness, and workforce balance across diverse industries as the market continues to evolve rapidly.
· Changing recruitment strategies
· Focus on training and development
· Issues in planning employee resources
· Effects on compensation and retention of employees
Changing recruitment strategies
HR recruiting strategies continue to change as HR departments are now required to hire only local talent to meet nationalization quota requirements. Organizations’ New Labour Law is now adapted to focus more heavily on sourcing, attracting, and retaining Saudi Nationals, which often requires updating job descriptions, changing employer branding, and reevaluating how candidates engage with hiring organizations in order for candidates to connect with the local workforce.
Focus on training and development
HR functions are placing increased emphasis on providing training and/or development opportunities to local employees to address skills shortages in the local populace. To do this, Human Resources Companies are providing skills development, leadership development, and ongoing education/training for local nationals to successfully fill the roles of expatriate workers.
Issues in planning employee resources
Managing both local staff and foreign workers creates additional Nationalization Problems for a company. HR needs to plan how the company’s workforce will be structured, so that the business can keep functioning and also meet the company’s localization objectives. In many cases, this may require creating a new structure for the group of employees who will be working together and then reorganizing those people within the organization to fulfill the requirements of various company policies.
Effects on compensation and retention of employees
Nationalization significantly affects how a company’s salary and benefit structure is established. eHR has to develop ways to offer competitive compensation packages to retain and acquire local talent, while attempting to maintain internal equity between employees. Finding and retaining skilled staff continues to be very important as the number of organizations searching for qualified Saudi workers increases.
For more information, you can visit our website https://www.ehr.sa/ or call us at 0966-559748933
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