Challenges for HR Departments 2015
There is no question that the Middle East is one of the economic powerhouses in the modern world and this looks set to continue with the coming World Cup in Qatar and Expo 2020 in Dubai. According to the IMF, despite a drop in oil prices, domestic political struggles and political uncertainty, economic activity is expected to continue to grow by 2.4% p.a., and could possibly grow to 3% for oil exporting countries. With increased economic demand, HR departments are facing some obstacles in terms of recruiting and retaining a steady workforce. Here are some examples of the challenges HR departments face in the Middle East and how they might be overcome.
Shortage of Talent
Most countries have a few issues regarding a shortage of skilled talent, it’s a problem that has become quite controversial in the United States and the U.K., where technology companies are hiring external staff due to a lack of suitable home-grown workers. The Middle East have a similar problem, a lack of domestic talent means HR departments are forced to look externally for workers.
“This increases the number of hours required by HR departments to hire and train these staff,” said Brendan Tobin, the Marketing Manager here at GoContractor.
“There is a need not only for unskilled labour but also the entire gamut of C-level and management talent required which would be a challenge for any HR department even with local resources available.”
As a result, it may fall to HR departments to try harder to retain the existing workforce, highlight the necessity for upskilling, and try to keep that staff member as a loyal part of the team for as long as possible. This approach, according to Brendan, means your aim as a HR department is to woo talent before you need them, this will involve “building an employer brand” and a “employee value proposition.” In order to carry that out, you will need to have all the relevant information on your prospective employee, such as: salary, career progression and lifestyle.
“The challenges are arguably greater here than in more established economies,” said Brendan. “However, Middle Eastern HR departments are leveraging the web to reach and communicate to labour markets and, in doing so, are addressing the protracted recruitment process that was unavoidable up until now.”
Legal Obstacles
Although some areas of the Middle East have quite liberal rules in place for employers, many other countries still maintain a more conservative rule of law.
“The big challenge for HR departments in the Middle East is that most countries legislation changes so quickly unlike in Europe and the U.S.,” said Cillian O’ Grady, the Vice President of Global Sales here at GoContractor. “Keeping up with legislation is extremely difficult.” Although many companies have laws regarding health and safety and orientations , these can change depending on the economic need of the country. It can also raise some serious issues for HR departments, whose main job is to find and retain a suitable workforce. The best practical advice in this situation would be for HR managers to work within the current legislation, and keep an eye out for changes. If you think the changes will affect your workforce, raise the issue with your senior managers.
The Need for Technology
In every aspect of the hiring process Middle East HR depts are having to employ a greater level of technology. From the building of employer brand online, as we have discussed, to the onboarding process (which often takes place before new workers even arrive to the country), to the socialisation and integration of a diverse workforce HR depts have to be proactive in their use of tech to meet the modern workforce on their terms.
“Companies are using social media platforms to create acclimatization groups for expats to help them settle into a new country,” said Brendan. He contends that in order to get the most out of HR tech managers to “leverage social media” and find ways to build an awareness of job postings and integrate that with new hires.
According to a report by The Boston Consulting Group titled ‘Creating People Advantage: How to Address HR Challenges Worldwide Through 2015’, the the main challenges for HR managers will be: the retaining and building of new employees, dealing with changes to demographics and globalization and developing a learning organisation and “transforming HR into a strategic partner”. According to the report, companies that can meet these challenges head on will improve their competitive advantage.
What we can see from this review is that the Middle East faces very specific HR challenges and that if human resources managers are not aware of these changes or of the possibilities of HR tech to meet these challenges they can get left behind very easily.
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