In today’s interconnected world, the prevalence of international teams is a testament to globalization’s reach. Your companies are no longer confined to their home countries; instead, they operate across borders, leveraging diverse talents to drive innovation and competitiveness. At the same time, we all must acknowledge that “glocalisation” has replaced “globalisation” as the trending tropism, as local cultural differences impact companies more than ever in their international expansions, depending on whether they have successfully navigated these specificities. As businesses expand into new markets, the need for effective training and development becomes paramount, particularly in regions like Saudi Arabia, where economic transformation is underway.
Importance of Training and Development
In the rapidly evolving global economy, Saudi Arabia stands at a pivotal juncture, poised to transform its workforce to meet the demands of a diversified economy. As part of its Saudi Vision 2030 initiative, it aims to reduce its dependence on oil by nurturing a knowledge-based economy. As part of this vision, Saudi Arabia has created 1.1 million new jobs since 2016, including over 130,000 new jobs for Saudis in 2023 alone.
This ambitious plan, however, faces a significant hurdle: the skill gap in the Saudi labour market. A 2023 report from Prince Mohammad Bin Fahd University highlights this disparity, particularly in digital and technical domains such as programming and graphic design. This gap underscores the urgent need for effective training and development programs that can equip workers with the necessary competencies to thrive in a competitive environment. The Human Capability Development Program, launched in 2021, seeks to address these issues through a dynamic strategy encompassing all stages of learning.
The Kingdom’s efforts to bridge the skill gap are multifaceted. Initiatives such as the National Labor Gateway (TAQAT) and sector councils aim to align educational outcomes with market needs. Vocational and technical training programs have been expanded to provide specialized training in fields like technology, healthcare, and renewable energy.
Employee Retention and Engagement in Saudi Arabia
Apart from the skill gap, employee retention and engagement are critical issues in Saudi Arabia, where the labour market is characterized by high turnover rates. A Gallup study in 2022 highlighted that only 19% of engaged employees in Saudi Arabia were actively looking for a new job, compared to 47% of actively disengaged workers. This underscores the importance of employee engagement in retaining talent. The challenge of retaining skilled workers is compounded by the Saudisation policy, which mandates employment quotas for Saudi nationals, thus making it easy for them to frequently jump from one employer to another. Therefore, while this policy aims to increase local employment, it also forces companies to differentiate themselves by offering attractive work environments and management styles, if they want to retain their most productive and skilled staff.
Now, Saudi nationals prioritize job security, career progression, and competitive compensation packages when considering employment opportunities. Which means that companies that succeed in retaining talent often provide structured training programs and clear career advancement paths, aligning with the aspirations of young Saudi professionals who seek growth and development. Furthermore, fostering a culture of regular feedback and of appreciation through training can significantly enhance employee engagement, leading to higher retention rates. Especially training provided by international trainers and schools, leading to a certification. Employees who are the most valuable to the company could be sent to be trained abroad, either at the company’s headquarters or to attend short executive training in an international school. These are especially appreciated by Saudi national because of the prestige and the recognition that come with it.
Finally, in markets like Saudi Arabia, training should never be seen by employers only as a cost or an obligation, but as part of their retention and marketing strategies, as a tool to boost their image and brand. I usually hear managers justify their reluctance to train their employees, by arguing that the company will invest just to see them leave to join the competition. It is possible, of course, considering the high turnover rate on the Saudi market. Yet, whenever I hear such arguments, I usually cannot help myself and reply: “yes, you will train them, and they may leave. But imagine that you don’t train them, and that they stay… Then, what will be the cost for your company on the long run?”
Customized and Online Training Programs
Saudi Arabia’s Vision 2030 is not merely a roadmap for economic diversification; it is a call to action for educational reform and workforce development. Tailored training programs that consider cultural differences and specific market needs are essential for your success in this context. Understanding local customs and business etiquette can significantly enhance the effectiveness of training initiatives, ensuring that they resonate with your Saudi employees and expatriates alike.
A key component of this tailored approach is the integration of soft skills training, which has historically been underemphasized in Saudi Arabia’s traditional education system. Critical thinking, design thinking, problem-solving, and decision-making are now prioritized to foster a more innovative and adaptable workforce. According to a 2023 survey by the Human Resources Development Fund (HRDF), 60% of Saudi employers identified soft skills as a critical area for development, underscoring the need for comprehensive training programs.
In addition, in an era where digital transformation is paramount, blended learning approaches have gained traction in Saudi Arabia. By combining synchronous and asynchronous training methods, organizations can accommodate different learning preferences and time zones. This flexibility allows your employees to engage with training materials at their own pace while still benefiting from real-time interactions with trainers and peers. The Kingdom’s investment in digital infrastructure, as part of the Saudi Vision 2030, has facilitated the widespread adoption of online learning platforms. The Madrasati platform, for instance, delivered over 148 million virtual classes during the 2020-2021 academic year, demonstrating the potential for digital learning to reach diverse audiences.
Indeed, technology is a powerful enabler of training and development, particularly in a geographically expansive country like Saudi Arabia with a young tech-savvy population. Digital platforms make training accessible and flexible, allowing for immersive learning experiences through online modules, virtual reality, and interactive simulations. The Saudi Digital Academy, launched in 2019, exemplifies this approach by offering training in technological capabilities to Saudi youth, in partnership with the private sector. By 2023, the academy had trained over 26,000 individuals, highlighting the impact of technology-driven education.
To succeed in the Saudi market, it is essential for you to understand the specific business environment and cultural nuances, but also the opportunities offered by the specific dynamics of different sectors, including entertainment, tourism, and technology. Training programs must align with these national priorities and equip employees with the skills needed to thrive in this evolving landscape.
Government Initiatives and Support
The Saudi government has launched several initiatives to support training and development, such as the Human Capability Development Program, which aims to empower citizens and enhance their global competitiveness by aligning educational outcomes with labour market needs. Additionally, the Ministry of Human Resources and Social Development has implemented policies to encourage private sector training, providing incentives for companies to invest in employee development. These efforts are complemented by the HRDF, which supported the employment of over 73,000 Saudi citizens in the private sector during the first quarter of 2024 alone.
In conclusion, training and development are critical components of success for international teams, particularly in dynamic markets like Saudi Arabia. By investing in tailored programs that bridge skill gaps, enhance cultural competency, and engage employees, organizations can unlock the full potential of their diverse teams. As the global business landscape continues to evolve, those that prioritize training and development will be well-positioned to thrive in the competitive international arena.
At Artemis Business Care, we understand the complexities of international development and are here to help you train your local teams to grow their skills to the next level. We offer a comprehensive suite of services, including training programs adapted to the Saudi market, as well as onboarding training for expats arriving in Saudi Arabia.
So, don’t wait! Contact Artemis Business Care for more information.