The economic environment in the Kingdom of Saudi Arabia (KSA) is changing quickly. Thanks to initiatives like Vision 2030, we have seen momentum over the last few years in the Gulf nation’s efforts to diversify the economy and lessen its reliance on oil. In such a scenario, hiring the best workforce has become a crucial deciding factor for businesses to grow and succeed in #KSA.

Enterprises in Saudi Arabia, however, face unique hiring challenges when it comes to growing their team. The Innovations – KSA team examines some of these challenges in more detail and provides useful advice on how companies may deal with them.

1. Limited Local Talent Pool

Among the biggest obstacles that businesses face, Innovation KSA finds the scarcity of qualified local talent as the topmost hurdle. Though Saudi has made tremendous progress when it comes to education, there is still a skill mismatch. The skills that businesses require and those that job seekers possess differ. This disparity is especially apparent in industries requiring niche skills like engineering, technology, and medicine.

Resolution:

To help the local workforce become more skilled, we suggest that businesses invest in training and development initiatives. Collaborating with educational institutions to match curriculum to industrial demands can also go a long way in bridging this gap. 

2. High Competition for Top Talent

When supply is limited and demand high, businesses often end up competing for the limited number of competent workers available. The struggle to attract and retain top people has resulted in increased demands for benefits and salaries.

Resolution:

We suggest that companies should concentrate on developing a strong employer brand and providing attractive benefits packages if they want to stand out. Top applicants can be attracted by placing a strong emphasis on work-life balance, a favorable work environment, and professional progression prospects.

3. Saudization Policies

To expand job prospects for Saudi citizens, the Saudi government has put in place Saudization measures, or Nitaqat. Though this is necessary for the social stability and economic progress of the nation, companies are often found struggling to comply with these rules, more so in industries requiring niche skills.

Resolution:

We suggest businesses adopt a strategic approach to compliance, striking a balance between hiring and fostering the development of Saudi citizens and expatriates. Establishing mentorship programs for Saudi staff members can also help in meeting Saudization criteria while constructing a strong local talent pipeline. 

4. Cultural and Social Factors

Saudi Arabia’s cultural and social norms pose another challenge when it comes to hiring talent. For example, despite tremendous progress, gender diversity is still a delicate topic in KSA. To establish a diverse and effective workplace, businesses need to carefully manage these cultural quirks. 

Resolution:

Encouraging an inclusive and diverse work environment is essential. Things like flexible timings, family-friendly work environments and an overall inclusive hiring process can ensure a more diverse workforce.

5. Legal and Regulatory Compliance

International companies trying to set up in KSA often find it difficult to navigate KSA’s legal and regulatory environment. A comprehensive awareness of the local legal environment is necessary to ensure compliance with labor laws and Saudization standards.  

Resolution:

We have observed that businesses collaborating with knowledgeable staffing firms that offer all-encompassing assistance, including legal guidance, overcome this challenge quite effectively. These firms, like ours, offer insightful advice and help businesses avoid potential legal issues and streamline their employment procedures. 

6. Visa Limitations

The Kingdom of Saudi Arabia’s visa policies can pose substantial challenges for companies seeking to employ foreign workers. Businesses find the process of obtaining a work visa in Saudi Arabia drawn out and difficult, requiring the fulfillment of stringent standards and quotas. These restrictions then cause recruiting delays and limit access to highly qualified foreign candidates.

Resolution:

For businesses to effectively manage visa requirements, they need to plan ahead and collaborate closely with hiring firms like ours which offer integrated visa solutions. We also suggest investing in the development of indigenous talent to lessen the dependency on foreign labor. Looking into remote and digital employment choices for certain roles can also be an option.  

7. Retention Challenges

It is as difficult to retain elite talent as it is to hire them in KSA. Businesses find their recruitment expenses rising, and operations disrupted by high turnover rates. Inadequate training, low engagement, and few prospects for career growth are some of the factors that cause this turnover.  

Resolution:

We think that the secret to employee retention is to make development and engagement investments. Reductions in turnover can be achieved by offering employees chances for ongoing development, defined career routes, and a happy work environment. By providing continual feedback and recognition initiatives, staff commitment and motivation can be enhanced multifold. 

While Saudi Arabia’s hiring environment has its own set of challenges, partnering with staffing firms with expertise in the region, can help businesses overcome the hurdles and easily tap into the huge potential that KSA offers. 

If you are facing hiring challenges in KSA, talk to our Saudi team today. With an experienced team of recruiters, a vast database of qualified talent and in-depth knowledge of the local market, we have helped several businesses in KSA set up and grow their business. You could be our next! 

Author: Shilpi Choudhury