One of the most difficult parts of any expansion is finding the right people to work for your company. As you begin the process of recruiting talent in Saudi Arabia, you’ll need...
Read MoreOne of the most difficult parts of any expansion is finding the right people to work for your company. As you begin the process of recruiting talent in Saudi Arabia, you’ll need to understand the country’s culture and business etiquette. Even if you’re ready to hire employees in Saudi Arabia, you have to wait until you’ve established a subsidiary in the country. If this process takes several months, you could lose valuable talent to other open positions.
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One of the most difficult parts of any expansion is finding the right people to work for your company. As you begin the process of recruiting talent in Saudi Arabia, you’ll need to understand the country’s culture and business etiquette. Even if you’re ready to hire employees in Saudi Arabia, you have to wait until you’ve established a subsidiary in the country. If this process takes several months, you could lose valuable talent to other open positions.
Globalization Partners helps take the stress out of the hiring process with an Employer of Record solution. We can hire employees on your behalf and get you set up in Saudi Arabia in a matter of days. As a result, instead of worrying about Saudi Arabia employment compliance, you can focus on growing your company.
You’ll want to make sure you’re advertising your open positions through the best channels to reach talented employees. You’ll also need to make sure your business complies with anti-discrimination laws during the recruitment process in the country.
In Saudi Arabia, many companies do the majority of their recruiting through referrals and word of mouth. This method will be a challenge if your company doesn’t have an established presence in Saudi Arabia yet, but you might choose to partner with a global PEO that already has some established contacts. Online job listings and social media can also be useful tools during the recruitment process.
Under Saudi Arabian law, citizens are protected from discrimination based on sex, age, or disability. The law specifically forbids discrimination during the performance of work as well as in job advertisements and the hiring process. To stay compliant, you should make sure you avoid mentioning traits in job postings unless they are legitimate requirements for the position. For example, you should avoid phrases like “recent graduate,” “young and dynamic team,” and “seasoned and highly qualified.”
Saudi Arabia has certain laws and regulations that dictate how to hire employees. The country requires every worker to have an employment contract that outlines local labor law standards in both Arabic and English. Globalization Partners recommends a written employment contract that includes compensation, benefits, and termination terms.
As of May 12, 2022, all employee contracts must be documented and approved through Saudi Arabia’s online Qiwa platform.
One Saudi Arabia employment compliance regulation to be aware of is a policy called “Saudization.” This national policy encourages companies to hire Saudi nationals, making it difficult to get new work permits for employees from other countries. It’s easier to recruit Saudi employees with an Iqama or resident work permit than to sponsor visas.
The government has continually strengthened these policies since 2011. More recent measures include a mandate that some positions in specific sectors can only employ Saudi nationals and additional incentives to hire women and individuals with disabilities.
In 2021, the Ministry of Human Resources and Social Development in Saudi Arabia announced it will set aside 20% of private sector engineering positions for Saudi nationals as part of Saudization. This policy applies to all private sector employers with five or more employees in engineering professions.
In April and May of 2022, additional regulations related to Saudization will come into effect, setting new ratios in certain sectors while limiting employment to Saudi nationals in others. These changes include:
In January 2023, the Medina and Jazan regions of Saudi Arabia announced upcoming requirements for Saudization in certain sectors. For marketing and sales positions in the Medina region, a 40% Saudization ratio must be met by June 23, 2023. In the Jazan region, the Saudization ratio for marketing and sales positions must be 100% by July 19, 2023.
Globalization Partners can take care of hiring Saudi Arabia employees by recruiting local employees and assigning them to your company. From handling local compliance laws to drafting an employment contract, we’ll make sure you’re always meeting Saudi Arabia labor laws while growing your company.
While there is not a mandated process for onboarding employees, some common business practices in Saudi Arabia can help new employees feel comfortable working for your company. Saudis value personal interaction and believe in establishing a good relationship before negotiating any agreements. You can expect small talk during meetings, as well as frequent interruptions that seem off-topic. This time offers a great chance to start an employer-employee relationship off on the right foot by getting to know employees well before negotiating an employment contract.
There are several benefits of Saudi Arabia hiring outsourcing, especially when working with Globalization Partners. First, you can save time by letting us hire your Saudi Arabia employees so that you don’t have to travel back and forth as frequently. You can also get to work faster. Globalization Partners will act as the Employer of Record, so you won’t have to establish a subsidiary before hiring employees. We can help you meet all Saudi Arabia employment compliance laws and start working in a few days instead of a few months.
Globalization Partners will take the burden of compliance off your shoulders. We’ll hire talented Saudi Arabia employees, make sure you’re compliant, and help your company grow. Contact us today to learn more about our services.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
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