The Role of Upskilling and Workforce Development in Achieving Saudization Targets

If companies just want to comply, they will not be allowed to hire the first person they see to complete a quota. They must hire employees who have the necessary skills to perform the work efficiently. Therefore, upskilling and workforce development are essential. Here we will discuss how your employees' development enables you to not only comply with the government regulations but also grow your business.

Challenges of Changing Quotas

Many businesses treated Saudization as the task of meeting quantitative targets in the past. They just hired Saudi citizens for basic-level jobs in order to secure one of the "Green" or "Platinum" classifications under the Nitaqat system.

But times have changed. Today's Nitaqat rules highlight roles such as mid-level and senior staff; for example, tech roles, accounting, and management jobs. If you cannot hire qualified Saudi nationals for such roles, your company may face penalties or lose the ability to issue or renew work visas. 

The main challenge is the skills gap. It is a very difficult task to find local talents who have exactly the kind of experience required. The solution is training.

Reasons Why Training Should Be Your Main Weapon

Upgrading and developing employees help to solve two major issues simultaneously. You can get away with government quotas by doing so legally, and secondly and lastly, you are going to be handed over a well-developed and professional team that will significantly boost the productivity of your business.

Below is the effect of concentrating on growth when one transforms their business:

• Provides Leadership Roles: Rather than endlessly searching for the most experienced local Saudi Arabian managers, one can invest in developing one's own young team members. By equipping them with the needed management capabilities, they will be ready for more challenging roles.

• Retention Increases: Those employees working with companies that are concerned about investing in the future of their employees tend to remain longer. Training your Saudi Arabian staff makes them feel as if their contribution is recognized. This way, your turnover is low.

• Securing Business: When you have a very qualified local staff, the risk of expat visa regulations getting suddenly modified has been effectively removed from your company, and the business is safe from external change.

Sustainable Methods to Create a Capable Staff

To get the maximum benefits of upskilling and workforce development, you have to plan well. Randomly sending them to training classes will not do. Then, you have to design your training programs that are suitable for your industry at large. For example, if you are running a tech outfit, your focus will be software skills development. If your business is retail, your emphasis is going to be on customer service and supply chain management.

In addition to the above, you could collaborate with local institutes of higher learning or access government grants that support the training of Saudi nationals. Wise tactics definitely triumph rushed plans. True victory in the Saudi market is through the cultivation of local talents and not by ticking off compliance boxes.

TASC KSA will assist you in developing your Saudi Team

Getting up to speed with the national targets will not require much time if you do it our way. At TASC KSA, we have a team of local experts and compliance officers who assist companies from time to time. Whether you need help hiring Saudi candidates, managing payroll, or building a Nitaqat-compliant workforce, our experts are here to support you. 

Frequently Asked Questions

What is the difference between upskilling and reskilling?

Upskilling is the process of teaching current employees new skills to help them perform better or move into higher roles. Reskilling is the process of training employees to work in a different role or department. 

Why are the Saudization targets changing?

The main reason they do that is they try to address and minimize unemployment of locals together with ensuring the country's development is not heavily dependent on foreign labor. By increasing the proportion of skilled local workers, the government aims to create better career opportunities for Saudi nationals. 

If my company is under the Red Nitaqat band, what does it entail for me?

When the company is in the red band, you can imagine the consequences. Not only will you not be able to issue new visas, but also expat workers' visas will not be renewed, together with your company's bid in government contracts being denied.

Will the government support my company workforce training costs?

Absolutely. Through the Human Resources Development Fund (HRDF (Hadaf)), you can get financial assistance and support to carry out training programs enabling your employees to work with and hire more Saudi citizens.

Do small businesses have such training strategies at their disposal?

Yes, definitely. For small businesses, such tools are even more effective. Their workforce being small, it can be that two or even three Saudi colleagues trained will immediately result in an increase of their score and better company functioning overall.