youth employment initiatives and services in saudi arabia
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279167-36-VLMPresentationForHEandHRDFBoard-25Feb2013-v14.pptx
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Youth employment initiatives and services in Saudi Arabia
Cross-channels strategies and programs
October 29-30, 2013
Abdulkarim Al-Nujaidi, PhDExecutive Deputy Director General
Human Resources Development Fund
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Objectives
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?)
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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
Source: HRDF
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KSA Ministry of Labor, HRDF and sister organizations… (MoL+)
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Saudi youth unemployment rate: ~ 41%
0
10
20
30
40
50
60
Youth unemployment rate (aged 15-24)2012
BRICS1 average13%
Po
rtugal
OECD average17%
Greece
Spain
Sou
th A
frica
Saud
i Arab
ia
Italy
Slovak R
epu
blic
Ireland
Hu
ngary
Po
land
Eston
ia
Swed
en
Un
ited K
ingd
om
France
Finlan
d
Czech
Rep
ub
lic
Brazil
Luxem
bo
urg
Iceland
Belgiu
m
New
Zealand
Ch
ile
Sloven
ia
Un
ited States
Ru
ssia
Turkey
Den
mark
Can
ada
Au
stralia
Ind
ia
Ko
rea
Neth
erland
s
Mexico
Japan
Au
stria
Germ
any
No
rway
Switzerlan
d
41%
OECDBRICS1
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
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Above average youth unemployment ratio may indicate difficult education to employment transition
0
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Ratio of youth to adult unemployment (%)
Bra
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H2 2012 data from CDSIYouth unemployment: 41.9%Adult unemployment: 8.2%
Best in class
% of youth unemployment (between 15 and 24) versus % of adult unemployment (over 24 years old)
Average of benchmarked
countries
3.4
Note: latest available data (cases older than 2008 excluded)Source: ILO, CDSI, BCG analysis
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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
1
2
3
4
5
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Existing challenges
Young population and relatively high youth unemployment rate…. ~41%
Need to foster an ecosystem of key stakeholders through programs that incent involvement and participation
Structural and economic changes to support the transition to a knowledge and services based economy
No overarching approach to career education
Barriers to entry to the labor market for Saudi women
Saudi job seekers preference for the public sector, 2 Saudis out of every 10employees employed in the private sector
A synopsis of key challenges to youth employment in KSA today…
Source: HRDF, MoL analysis
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Youth employment programs and services
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Key measures and innovative services for youth employment in KSA…
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Source: HRDF, MoL analysis
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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.
12
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.
Mystery shoppers
Operational Audits
Source: HRDF customer service department
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Unemployment Assistance Program “Hafiz”
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Unemployment Assistance Program “Hafiz” www.hafiz.gov.sa
The Royal Decrees triggered the action to immediately develop the relevant Policy,
Procedures and Regulatory Notes, that detail all of the legalities around the
Unemployment Assistance Program: “Hafiz”
• Defines high level guidelines based on the royal decrees• Defines the eligibility criteria of the program
Hafiz Policy
Hafiz Regulatory Notes
• Define detailed procedures that govern the implementation of the policy
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Source: HRDF, Hafiz
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Unemployment Assistance Program “Hafiz” (cont’d)
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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
seekers segmentation
• Surveys, reports and statistics
• Labor market observatory and knowledge center
Source: HRDF, Hafiz
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Description Channel Name
1
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
2
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
3
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
4
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
Taqat RecruitmentOffice (TRO)
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TAQAT employment channelswww.taqat.org.sa
Source: HRDF
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Description Channel Name
5
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)
6
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
7
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)
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TAQAT employment channels (cont’d)
Source: HRDF
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Online channels serve job seekers and graduates and aim to position HRDF as the
National Employment GatewayTo
ols
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atch
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Pro
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Car
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Full-
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On
-th
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Rec
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Co
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“3o
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and
“Dir
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”pro
gram
s
Online electronic integrated gate for job seekers and graduates
Emp
loye
rs/R
ecru
ite
rs a
ssis
tan
ce
pro
gram
s
Support hiring programs E-Gate programs
Source: HRDF
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Training and up-skilling – Career Education
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KSA's challenges provide several key objectives for HRDF's Career Education program
Objectives for a Nation wide Career Education program
Empower the youth through smooth integration into workforce
Create awareness of Career Education opportunities – services and channels
Steer job seekers to appropriate careers
Instill a professional outlook of the individual
1
2
3
4
Source: HRDF, BCG analysis
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Career Education program will incorporate global good practices across 4 main criteria
Self discoveryHow to get & sustain
the job
1. Self-awareness training
2. Social skills exercises
3. Independent learning training
13. Job search strategies
14. Job application
15. Interview training
16. Job onboarding support
Goals
Focus area examples
Gain a better understandingof one-self andone's interests
How to workon the job
4. Communication skills practice
5. Interpersonal relations and team work training
6. Conflict management skills
7. Volunteering
Learn to behave in the workplace in different roles (operational or
leadership)
Careerexploration
8. Knowledge on education and career options
9. Entrepreneurship introduction
10. Summer jobs & internships
11. Individual career goal evaluation
12. Personal career scenario planning
Develop goals for future education and professional career
based on the market
Equip with basicjob application abilities
I 2 3 4
Source: HRDF, BCG analysis
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Training and up-skillingE-training
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E-training courses for Hafiz beneficiaries
# Courses
publishedVisiting and Views
Assigned
(not unique)
# of job seekers
who attended
courses
# of job seekers who
completed the
courses
34 33,054,619 15,736,368 4,340, 580 3,923,423
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
Source: HRDF, Hafiz
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Training and up-skillingClassroom training
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Classroom training opportunities
Cambridge IT training and certification opportunities for Hafiz beneficiaries since Nov 2012
Source: Cambridge, HRDF-Training department analysis as of Sept 2013
0
1
2
3
4
3.2
0.6
Number of students(thousands)
CertifiedEmployed
• This program intends to provide IT training and certification to serious Hafiz job seekers (males & females)
• Over 3,200 students completed the training and received the certification thus far, majority were previous university degree holders as well
• Of these 600 have been placed into sustainable employment
• The program has been extended for another year starting Nov 2013
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Classroom training opportunities (cont’d)
Classroom training opportunities for Hafiz beneficiaries though Al Khaleej training centers since May 2013
Source: Al Khaleej, HRDF-Training department analysis as of June 2013
250
200
50
0
Currently attending
175
Registered for the next
track
52
Total
227
Certified Computer Technical training = 75 (50 M, 25 F)Certified Business Administration = 100 (75 M, 25 F)
Makkah
50
Jeddah
25
50
75
0KhamisMushait
Al-Khobar
25
227 of 500 passed interviews and placement tests
Meccah, Al-Khobar and Khamis Mushaitcenters at full capacity while Jeddah at 75%
100
150
25
FemalesMales
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Training and up-skilling through strategic partnerships On-Job-Training (OJT)
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The most successful solutions for employing jobseekers integrate a variety of employment and
training strategies
-0.1
-0.2
0.0
0.2
0.1
Success indicator
Workplace training only
In-class training and workplace
training combined
In-class and workplace
training combined plus other services
In-class training only
~0.14
~0.05
~-0.14
~-0.06
Combining work and training increases success rates of employment programs
Students1 place OJT as the most effective instruction technique
0 20 40 60 80
% of respondents saying technique is effective
OJT
Hands-on learning
Multimedia 54%
62%
58%
46%Seminars
Traditional lecture
Online/distance learning
30%
30%
Combining classroom training with workplace training like OJT better meets jobseeker needs
World Bank McKinsey
1. Based on a survey of students across 9 countries (Brazil, Germany, India, Mexico, Morocco, Saudi Arabia, Turkey, UK, USA)
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On-the-Job Training solutions assist students and job seekers transition into work
Source: BCG analysis
May be complemented by
other forms of training...
(e.g. classroom training)
Development programs where the training happens...
at the work place while doing the
actual job
A professional trainer or an experienced employee...
serves as the instructor
The relationship is normally governed...
by a contract between the
employer and the trainee
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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
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Other partners and upcoming programs within the OJT landscape…
Colleges of Excellence
Other private sector (Al Bandar, Al Nahda, etc.)Training Providers
الجهات شبه الحكومية
Government agencies
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Upward trend marked in female employment in the private sector
Source: HRDF/MoL analysis
51451 48406
55618
99486
200366
0
50000
100000
150000
200000
250000
2008 2009 2010 2011 2012
Number of Saudi Women Employed inPrivate Sector
Number of Saudi women employed in private sector has increased significantly afterimplementing the initiatives, especially between year 2011-2012
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Female employment initiatives in the private sector
Source: HRDF analysis
Direct Employment Programs
• Women Employment in the Retail Sector (Women Clothing & Accessories)
• Women Employment in Factories
• Nationalization of Malls
Developing Employment MethodsSustaining Women Employment
through Supporting Services
• Society Awareness on women employment
• Women Employment Guidelines for the private sector
• Transportation Support for working women
• Nurseries to support working mothers
1 2 3
• Tele-work• Part time jobs• Work from home ( productive
families)
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Female employment in the Retail Sector
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
36
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
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Nationalization of Malls (Service Centers)
Source: HRDF, MoL analysis
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.
1 2 3
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Tele-Work and Part-time jobs
Source: HRDF, MoL analysis
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.
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Working from home (productive families)
Source: HRDF, MoL analysis
1 2 3
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.
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Sustaining females into employment
Source: HRDF, MoL analysis
1 2 3
Policies & Regulations Financial Support
TrainingSupporting Services
Society Awareness
Women Employment
HRDF subsidizes part of the salaries & training &transportation
Policies developed to support the new initiatives
Transportation means & nurseries are being developed for working women
Training material are being developed for women entering new sectors such as retail and factories
Media campaigns are developed to create awareness on women employment targeting society in general, employers and women
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High-level objectives and clustering of the various subsidy programs
Source: HRDF analysis
Providing scholarships for qualifying, training and employing national workforce in private sector
1
3
Financing field programs, projects and studies aimed at employing nationals and reduce dependencies on the expatriate workforce
4
Financing the establishment and the expansions of training institutions
5
Paying percentage of salaries of those who are employed in private sector after being qualified and trained
2 Contributing to the cost of qualifying and training national workforce in private sector Jobs
6Undertaking related research and studies and providing management and HRM consultation
Qualifying & Training the
National workforce
Employment of Saudi
Nationals
Study and Research
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Example subsidy programs…
Source: HRDF
JobseekerFunded Programs
FemaleMale
✓✓Support for Qualified Candidates
✓✓Support for Non-Qualified Candidates
✓✓Non-profit Institutes
✓Women's work in factories
✓Saudi Female employment in retail program
✓Women's Part Time Work
✓Tele-working
✓Prisoners Support Program
✓✓Entrepreneurship Development Program
JobseekerFunded Programs
FemaleMale
✓✓Entrepreneurship Grant Program
✓✓Heath training Program
✓✓Train to Hire Program
✓✓HR Officials Skills Improvement Program
✓✓Manpower Retention Incentive Program
✓✓Support Teachers Program
✓SABIC contractor Saudization project
✓Tourism Specialist Training Program
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HRDF is implementing Direct Subsidy Payments (DSP)
Source: HRDF
Subsidy Payment to Employer1 Direct Subsidy Payments (DSP)2
Employer pays employees full
amount
HRDF reimburses Employer within 5
days
Step 1 Step 2
Employer pays employees a % of
salary
HRDF pays employees the
remaining % of salary
Step 1
On time payment - Reduce/eliminate the cash-flow concerns that the WSP participating employershave raised over the last few years
Government support awareness - Increase awareness of government support to the public,generally, and amongst the beneficiaries specifically
DSP experience - Positive feedback from Teacher's Support Program led to rolling out DSP to otherprograms
Traditional Revised DSP
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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
RedYellowGreenPlatinum
First year2000200030004000
Second Year2000200025003000
Third year0020002000
Fourth year0001000
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National Labor Observatory(NLO)
Source: HRDF, MoL analysis
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
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National Labor Observatory(NLO)
Source: HRDF, MoL analysis
• 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
Objectives
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Fostering an ecosystem of training and employment in KSA
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Customize HRDF interventions by regional clusters
Source: HRDF, BCG analysis
Region
The high education seekers• Regions with economic opportunities and high
wages, but low/medium education levels, below average unemployment and below average non-Saudis employees
The combined intervention seekers• Regions with low economic opportunities, high
unemployment rates, medium/low education levels and low/average wage brackets andabove average non-Saudis
The labor opportunities seekers• Regions with highly education levels, limited
economic opportunities and above average unemployment and low wages
The core training seekers• Regions with some economic opportunities but
low unemployment rates, low wage brackets and low education levels
Cluster characteristics
Al-Riyadh
Makkah
Est. Region
Al Madinah
Najran
Asir
Hail
Al-Jouf
Al-Baha
Al-Qassim
N. Frontier
Tabuk
Jazan
Wage brackets1 Education
Unemployment
EconomicOpportunity
A
B
C
D
Saudization
1. Wage brackets in yellow include wages between 3,000 and 4,000 SAR / month.
Above average Average Below average
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An integrated ecosystem with coordinated stakeholder interests will foster an
environment for youth employment…
Source: HRDF, BCG analysis
Private sector
Government Agencies
Training providers
Graduates and job seekers
Private sector can provide a practical skills development environment
Graduates and job seekers must help themselves for a
smoother transition into employment
Educators and training providers can offer a launch pad for swift
transitions into employment
Government agencies must act as facilitators and policy setters
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