279167-36-VLMPresentationForHEandHRDFBoard-25Feb2013-v14.pptx 1 Youth employment initiatives and services in Saudi Arabia Cross-channels strategies and programs October 29-30, 2013 Abdulkarim Al-Nujaidi, PhD Executive Deputy Director General Human Resources Development Fund
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Youth employment initiatives and services in Saudi Arabia
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Overview of the Human Resources Development Fund (HRDF)(Vision, Mission and Mandate)
Present certain key challenges within the Saudi Arabian context(Why is this important to Saudi Arabia?)
Discuss the youth and female employment programs and services (What successful strategies have been deployed by MoL and HRDF across KSA?)
Discuss opportunities for involving key stakeholders to provide an integrated ecosystem (How can education providers, the private sector, and government agencies create impact?)
Since its establishment, HRDF has emerged as an efficient medium for bringing young Saudi job seekers closer to employment in the local labor market by institutionalizing innovative and effective unemployment assistance programs and services including effective training and up-skilling opportunities to enable the Saudi youth acquire the needed competencies to work in both the public and private sectors, resulting in a more productive national economy
A sustainable and productive national workforce
Vision
To develop the young national workforce and enhance their competitiveness through supporting distinct and specialized training, qualification and employment programs that meet the needs of beneficiaries through qualified staff, advanced information systems and integrated research and
knowledge methodologies
Mission
Human Resources Development Fund (HRDF)www.hrdf.org.sa
1. Excluding ChinaNote. OECD is the weighted average of 33 countries excluding Mexico. OECD calculations based on the Short-term Indicators from Eurostat and various national sources. (Cut-off date: 2 May 2012) ,Source: www.oecd.org, CDSI, World Bank, BCG analysis
Five key differentiation factors significantly affect the KSA social and economic status
Source: HRDF, Hafiz, CDSI, BCG analysis
Factors Description Implications
Average wages
Unemploymentrates
Industry concentrations
Education levels
Average wages fluctuate significantly (up to 50%) across regions in KSA creating purchasing power disparities
Job seeker (Hafiz) educational levels varies across KSA: 9 regions with ~40% or more of JS with lower than high schools degrees, only 3regions with higher education levels
Average Saudi unemployment rate about ~12.0%, mainly driven by female unemployment. 6 regions above the average with unemployment peaks fostered by male unemployment
Distinct regional industry concentrations and economic activities across KSA: Riyadh & ER with more economic opportunities
Different wage brackets require varying wage subsidy intervention levels and methods
Specialized economic activities creates distinct demand for talent and require differentiated training programs
Demographic specificities require distinctive training and wage subsidy designs
Different talent pools require targeted training programs to match supply and demand
Level of expatriate workforce
Foreign contribution to labor market is very high (avg. ~83%) with more developed regions (Riyadh, Makkah and ER) less prone to non-Saudi employees
Better balance between local and expatriate employees to allow for distribution of opportunities to unemployed Saudi job seekers
Customers (job seekers and employers) services at HRDF
Face-to-Face Channels
Branches JPCs Recruitment Offices
Liqaat
Alternative Channels
Taqat Online
Hafiz Online
HRDF Web Site Call Center
Virtual Liqaat
TaqatGrads
Assessment Methodologies
Focus Groups
Role-Playing
Site VisitsReports &
Observations
One-to-One Interviews
Satisfaction Surveys
Key AccountsTraining
The service offerings are supported by key policy interventions such as Nitaqat, Hafiz, female employment, regionalization, subsidies, etc.
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Channels are operated by HRDF via partnerships with the private sector and their performance is periodically assessed against set of KPIs including outcomes, service levels, experience, appearance, level of professionalism, SLAs, employee responsiveness, employee capabilities, etc.
The Hafiz program provides eligible beneficiaries with financial and/or employment related (pre & post employment) assistance
Training and rehabilitation programs during the period of entitlement to enhance their skills and competencies and improve their chances of getting the right job
Job counseling, searching and recruitment services through various Taqatchannels operated in partnership with public and private sector entities
Monthly financial aid for supporting and motivating eligible job seekers, according to the entitlement regulations adopted by the Council of Ministers• Research, Job
Job searching and matching site. Direct virtual contact between JS and employers with minimal intervention. More than 76,000 private sector job opportunities posted this far with ~191,200 job vacancies
Taqat Online www.taqatonline.org.sa
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Facilitate virtual interviews. The first online exhibition lasting 5 days was launched in the May 2012. Number of enterprises involved 21 properties.~50,000 job seekers registered (males and females) from different cities of the Kingdom
E-Liqa’at
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Facilitate physical interviews. Liqa’at were organized in Riyadh, Jeddah and Dammam wherein ~20,000 of JS were assessed and supported. Future such job fairs to target specialized industry sectors in the different regions of the country
Liqa’at
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Medium level physical interaction via this intervention through the provision of job matching services with key employers.The program was launched and today has contracted with 36 such recruitment offices across KSA. The total number of job seekers employed via this channel thus far -- ~4000
High level physical interaction intervention with specialized recruitment and employment assistance centers launched in 2011. Contracted with four global coalitions to run the 27 centers (males & females) in several cities in the Kingdom. ~158,086 job seekers referred to JPC, of which ~89,262 enrolled and ~27,948 employed thus far
Job Placement Centers (JPC)
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Provide the same JPC services remotely via the internet and through a call center. This channel is under development and expected to enhance the outreach to job seekers in remote locations and those who may not be able to attend a physical JPC for services
Tele-JPC
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Dedicated online job matching and career counseling portal for Saudi job seekers who are university students and/or recent graduates. Launched in May 2013 for scholarship students in the US, the portal has 853 registered job seekers, 630 job opportunities and 4,213 job vacancies thus far
TaqatGradswww.taqatgrads.org.sa
8 Rehabilitation centers and Mobile JPC (expected to launch soon)
Launched for Hafiz beneficiaries since February 2013…
34 different E-training courses across a range of different courses administered to Hafiz beneficiaries on a periodic basis
Partnerships undertaken with training providers to develop online content and e-learning courses to improve awareness, communication and employment opportunities for Hafiz beneficiaries
On-the-Job Training and Employer Driven Academies pilots
• 3 month program launched in September 2012, providing on the job hands-on training across the functions of HR, Administration, Patient Services and Security
• 68 Hafiz beneficiaries – 23 males and 45 females in Riyadh• Presently an internship program and will evolve into a structured OJT with designated
certified mentors and starting with an employment contract between Al Habib and the candidate
• EDA program launched in November 2012, to provide employer specific “real job” training which would result in full-time employment
• 90 days of intense training (classroom and on-the-job)• 1,029 attend the induction session, 253 registered and 67 were selected for the
program• Lessons learned and contracted with Al Shaya to cater to 400 trainees per year
Source: Al Habib and Al Shaya recruitment teams; HRDF-SPP analysis
In June 2011, a Royal decree (A/121) was announced enforcing that only Saudi women are entitled to work in retail shops selling women related merchandise.
This Royal decree is being implemented in phases1:
Phase 1
Phase 2
Phase 3
Saudi Women employment in lingerie and make-up shops
Saudi Women employment in evening & wedding dresses, Abayas& accessories shops
Gradual expansion of Saudi women employment in other areas of women fashion retail
1 2 3
1. Phase 1 has been launched and Phase 2 and 3 are currently in the planning stages2. Currently a study is being conducted to identify the positions suitable for women in factories
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In June 2011, a Royal decree (A/121) was announced entitling Saudi women to work in factories.
This Royal decree is being implemented in phases2:
Phase 1
Phase 2
Saudi Women employment in pharmaceutical factories
Gradual expansion of Saudi women employment in other factories with production lines
Service centers to be established in malls to offer government services of which some will target supportingwomen employment such as transportation, nurseries & guidance on the suitable work environment
Service Centres in
Malls
Other government
entities’ services
Recruitment
MoL Services
Transportation Support
Nurseries
Guidance on women
employment
Nationalization of Malls is an initiative that aims at encouraging retail sector employers to employ Saudi females through setting up service centers inside malls that provide government services and incentives for employers such as assisting in recruitment, training, guidance on women employment, transportation support and nurseries.
Telework and Part-time jobs are initiatives under (A/121) that aims at providing more work opportunities forwomen that fit their needs for a work-family balance through working remotely and from their homes
1 2 3
Sales(via phone)
CustomerService
Translation & Document
Management
Graphic Design
Consulting
Marketing
Computer Programming
Call Centre
Journalism
Possible job options forTelework & Part-time
Ticketing & Reservations
Releasingmedical reports
Advertising
Studies are being conducted presently to examine the needs to build proper regulations and infrastructure to apply telework in Saudi Arabia.
Furthermore, to encourage companies to identify telework opportunities for women, MoL+ have developed an approach to count women working remotely in the nationalization program (“Nitaqat”), which will help employers improve their Saudization level.
Additionally, employers are being encouraged to recruit women in part time jobs through counting two part time working women as one full time women in the nationalization program (“ Nitaqat”), which will help employers increase their Saudization level.
The Saudi government is seeking to develop a governing entity for productive families to help support them better as they are considered as one of the means of employment in Saudi, specifically for women.
Work from home is one of the initiatives under (A/121) that aims at advocating the skillsdevelopment and employment of families (mainly women) and increasing overall productivity of thepopulation towards the national economy
Currently a study is being conducted to understand the status quo better and develop the concept of productive families and accordingly establish proper implementation support through policies, etc.
Additional Subsidy Programs associated with Saudization
Source: HRDF, MoL
The advantage of the proposed subsidy program is that the limit of subsidy is higher than current HRDF programs where the subsidy is up to SAR 4,000 up to four years. Also, the program is based on the subsidization of half of the salary for new Saudi employees, and the upper limit of subsidy differs according to the classification of the entity in
NITAQAT classification
# of yearsThe additional subsidy of wages program associated with Saudization
VisionTo improve the operation of the Saudi Arabian labor market by providing participants (policy makers, employers, intermediaries, workers, job seekers and others) with reliable data and insight to improve their decision making whilst protecting individual privacy
MissionDeliver exemplary service through providing up-to-date, timely and accurate labor-related data, analysis and insight to support policy design, decision-making and performance measurement to the Ministry of Labor and various public and private sector entities
Goals & Aspirations
Provide exemplary service through data and objective insight to theMinistry of Labor and affiliates
Support the development of a labor data ecosystem for the creation and sharing of accurate and timely information whilst protecting privacy
Provide services in a sustainable way to other public and private sector entities and individual job seekers
• Create a central repository for national data that can be used by different governmental agencies tosteer strategies and make decision based on actual facts
• Provide information to policy makers to develop policies about the labor market to help
– Reduce unemployment
– Increase Saudization
– Ensure that mismatch between skills supplied by institutions and skills demanded by jobcreators is minimized as far as is possible
• Provide information reporting services in a sustainable way to public and private sector entities andindividual job seekers
• Bring together stakeholders data to develop a shared vision of the labor market and skillsdevelopment