Outsourcing is a common solution for companies internationally, but outsourcing Saudization is an option that only about a quarter of companies are investing in. Outsourcing Saudization needs can help companies get on the right track with their Saudization and stay compliant for the long term. This leads to further benefits in the future. Proven conducted a survey on how companies outsource their Saudization needs, below are the results.
Our survey found that only 25 percent of respondents outsource their Saudization needs to a third party while 75 percent address their Saudization needs in-house. The outsourced needs included; strategy and consulting, recruitment, training, and government relations.
Outsourcing Saudization needs allows companies to focus on the other areas of their HR strategy and business. Saudization can be confusing, and as the regulations for the system change, it can be hard to keep up. Companies that outsource their Saudization benefit from having an HR expert help them achieve the best results while remaining compliant. There are many areas of Saudization that can be outsourced, however, your needs will depend on the company, the industry type, and company size.
Developing a Saudization strategy is essential to remaining compliant and achieving platinum or high green level in the Nitaqat rating. Achieving a high rating allows your company benefits that companies in lower ratings don’t receive, which play to an advantage in your company’s hiring practices. This may be the reason one-third of respondents who outsource their Saudization needs choose to outsource their strategy and consulting. Saudization consulting will help you determine where you can implement Saudization and how to go about it, what strategy is best for your company, and will assist you to reach both your financial and corporate objectives. We expand on Saudization strategies in this article.
The government has created TAQAT in order to assist companies in their recruitment process for positions, however, some companies still choose to outsource their recruitment process. Fifty-one percent of respondents said they outsourced their recruitment, the highest of all responses. Whether it’s because of a lack of HR capabilities or want to ensure the highest quality candidates. Outsourcing recruitment means that you receive a personal service and find someone with not only the required qualifications and experience but someone who will also fit the company culture.
Many companies don’t have the required resources or in-house personnel to dedicate to providing new employees with in-depth training. Thirty-eight percent of respondents outsource their training to a third party. Outsourcing training to a training school can help companies have their employees up-to-speed with the relevant operations, software, and processes when they begin and shorten their orientation time.
All government relations positions in Saudi Arabia must be held by Saudi nationals, therefore some companies choose to hire their own GRO whilst others outsource it. Our survey results show that only 13 percent of respondents outsource their government relations. Assumably, in-house GRO is very beneficial or few companies require it in-house.
Saudization is essential for any business’s success in the Kingdom and high compliance is key to obtaining the benefits that can with Saudization. Whether you choose to outsource or keep it in-house depends on your company requirements but ultimately, doesn’t affect the result of your compliance if the requirements are met diligently. However, many companies see the value of outsourcing and the long-term effects it can have on business.