The Evolution of HRM in Saudi Arabia: Key Developments and Trends

 

The Saudi Arabian workforce is evolving quickly to keep pace with global HR trends and technological advancements. Now more than ever, HR professionals must develop and implement innovative strategies to stay ahead. NADIA Global supports this transformation by offering specialised courses and training in HRM in Saudi Arabia. 

HR outsourcing, human resource management (HRM), and recruitment are integral to the Kingdom's business landscape. We understand the constant need for organisations and HR professionals to stay ahead of evolving HR trends. As your training and recruitment partner, we empower you to achieve professional and personal growth through our expertise.

With over four decades of experience as a leading corporate training and recruitment firm in Saudi Arabia, NADIA Global is a trusted partner for HRM solutions. Our commitment to fostering exceptional talent has positioned us as a driving force behind successful organisations. This longstanding presence has afforded us a unique perspective on the evolution of human resource management in the Kingdom.

In this blog, we will delve into key trends shaping HRM in Saudi Arabia. Understanding these developments will empower your organisation to stay ahead of the curve and achieve sustained success. 

Trend: Vision 2030 

Saudi Arabia's Vision 2030 aims to build a knowledge-based economy via human capital development. The goal is to diversify away from oil dependence and create a thriving private sector. HRM plays a key role in achieving these by optimising talent acquisition, development, and retention.  

Vision 2030 also aims to increase the number of Saudi citizens in the workforce. HR teams need to implement strategies to achieve this while maintaining a high-performing and competitive workforce. Human resource departments are also instrumental in creating an inclusive workplace that empowers Saudi women. By attracting, retaining, and promoting female talent, organisations can tap into a valuable pool of human capital and contribute to Vision 2030's goals. 

Trend: Digital transformation with AI 

Digital transformation is revolutionising HRM in Saudi Arabia by improving employee engagement and enabling more efficiency and accuracy. Organisations are leveraging technologies like AI for recruitment and analytics to unlock new opportunities for organisational growth and innovation. 

Did you know that 49% of organisations that are now using AI for development activities and learning depend on this technology to create or recommend personalised opportunities for employees? Interestingly, 45% of these companies rely on AI to track the learning progress of employees, while 19% use it to reskill or upskill their workforce.

AI is also making quite an impact when it comes to performance management. Over half of organisations employing AI in this area use it to provide managers with actionable feedback, and 46% rely on AI to set clear performance goals for employees.

Trend: Data analytics

Data analytics gives organisations insights into employee performance, productivity levels, and workforce trends. HR professionals need to know how to leverage this technology to identify skill gaps and improve recruitment processes. 

Implementing data analytics in HRM in Saudi Arabia can impact organisational performance, boosting productivity by up to 25% and improving recruiting efficiency by 80%. Moreover, it helps decrease attrition rates.

Trend: Emphasis on employee well-being

Traditionally, employee wellness was primarily an individual responsibility. But the landscape is shifting. HRM in Saudi Arabia is increasingly recognising the importance of fostering a positive work environment that prioritises employee well-being. With employees placing greater emphasis on mental, emotional, and physical health, organisations are realising the need to support their workforce holistically. 

Prioritising work-life balance is essential for employee satisfaction and retention. A staggering 87% of employees expect employers to support their work-life balance, and 91% of those in organisations with wellness initiatives report increased motivation. Furthermore, Forbes highlights that a majority of job seekers consider an organisation's health and wellness offerings when choosing an employer. By fostering a culture of support and care, organisations can boost employee morale, productivity, and loyalty while reducing turnover rates.

Trend: Remote work options 

There is a growing preference for telecommuting over traditional office settings, and this preference is reshaping business operations and enhancing work-life balance for many employees.

The COVID-19 pandemic accelerated Saudi Arabia’s shift toward remote work and compelled organisations to rethink their operational strategies. Human resource professionals are now focused on supporting remote employees. This means facilitating collaboration in virtual settings to ensure that people feel connected and engaged even when they’re not in the office.

Even post-pandemic, HRM in Saudi Arabia continues to prioritise effective communication and remote work strategies. These efforts are designed to empower employees working from home and to ensure that business continuity is not compromised.

A study reveals that 78% of participants were satisfied with teleworking; 44% felt they were more efficient while working remotely. Additionally, 48% reported improved concentration, and 56% noticed an enhancement in their work-life balance. Furthermore, 55% of the respondents experienced better stress management due to telecommuting. 

As the adoption of remote work gains momentum, the Saudi government is promoting digital transformation initiatives to support this trend. These initiatives encourage businesses to implement remote work models and make telecommuting a common practice. For employees, this shift means they can secure employment in Saudi Arabia without the need to commute daily, offering them greater flexibility and improving their overall quality of life. 

Conclusion 

The future of HRM in Saudi Arabia is driven by adaptability and innovation. Embracing digital transformation, remote work, and data analytics can empower HR professionals to craft a more inclusive and engaging workplace. 

NADIA Global is ready to support your organisation’s efforts to improve its HRM in Saudi Arabia. Contact us via +966 54 628 2781 to engage our training and recruitment experts.

Sources:https://nadiaglobal.sa/the-evolution-of-hrm-in-saudi-arabia-key-developments-and-trends/