Youth employment initiatives and services in Saudi...

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, PhDExecutive Deputy Director General

Human Resources Development Fund


2 2

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?)


3 3

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


4 4

KSA Ministry of Labor, HRDF and sister organizations… (MoL+)


5 5

Setting the KSA Context


6 6

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


7 7

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


8 8

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


9 9

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


10 10

Youth employment programs and services


11

Key measures and innovative services for youth employment in KSA…

11



12

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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13

Unemployment Assistance Program “Hafiz”


14

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

14

Source: HRDF, Hafiz


15

Unemployment Assistance Program “Hafiz” (cont’d)

15

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


16 16

TAQAT employment channels


17

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)

17

TAQAT employment channelswww.taqat.org.sa

Source: HRDF

http://www.taqatonline.org.sa/


18

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)

18

TAQAT employment channels (cont’d)

Source: HRDF

http://www.taqatgrads.org.sa/


19 19

Online channels serve job seekers and graduates and aim to position HRDF as the

National Employment GatewayTo

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Online electronic integrated gate for job seekers and graduates

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ite

rs a

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tan

ce

pro

gram

s

Support hiring programs E-Gate programs

Source: HRDF


20 20

Training and up-skilling – Career Education


21 21

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


22 22

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



23 23

Training and up-skillingE-training


24 24

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






25 25

Training and up-skillingClassroom training


26 26

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


27 27

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


28 28

Training and up-skilling through strategic partnerships On-Job-Training (OJT)


29 29

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)


30 30

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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31 31

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


32 32

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


33 33

Female employment programs


34 34

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


35 35

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)


36

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

http://www.saudigazette.com.sa/myfiles/Images/2013/01/13/ki12.jpg

http://www.saudigazette.com.sa/myfiles/Images/2013/01/13/ki12.jpg


37 37

Nationalization of Malls (Service Centers)


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


38 38

Tele-Work and Part-time jobs


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.


39 39

Working from home (productive families)


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.


40 40

Sustaining females into employment


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


41 41

Subsidy programs


42 42

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


43 43

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


44 44

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


45 45

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


46 46

National Labor Observatory


47 47

National Labor Observatory(NLO)


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


48 48

National Labor Observatory(NLO)


• 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


49 49

Fostering an ecosystem of training and employment in KSA


50 50

Customize HRDF interventions by regional clusters


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…


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

http://barrynabdahl.files.wordpress.com/2011/09/2003_the_life_of_david_gale_003.jpg

http://barrynabdahl.files.wordpress.com/2011/09/2003_the_life_of_david_gale_003.jpg


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Q & A


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Thank you

Youth employment initiatives and services in Saudi...

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