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Human Resources Development Fund
Annual Report 2019

How we create value

Challenges and Proposed Solutions

HRDF faces multiple challenges and difficulties in the labour market, which it works to confront by providing programmes and services to clients and updating and developing the support mechanisms present in its various programmes. This is achieved according to developments in the labour market and in response to and in alignment with the Kingdom’s Vision 2030.

Below is a review of the most prominent challenges and difficulties facing HRDF and their proposed solutions.

Challenges and Difficulties
Proposed Solutions
Appeal of employment opportunities present in the private sector is weak, especially to women despite the availability of qualified cadres Create new methods that motivate the private sector to localize jobs in line with the directives of the Ministry of Labour and Social Development. Facilitate the mechanism and requirements for women’s employment in the private sector and provide them with an attractive environment.
Educational outcomes are not aligned with labour market requirements. Work with relevant authorities to provide studies that define future labour market needs.
Conduct an exhaustive review of all educational programmes and specializations according to a comprehensive plan with the participation of all relevant authorities to be led by the Ministry of Labour and Social Development and the Ministry of Education.
The numbers of jobseeker are not aligned with the number of available job opportunities in remote areas. Educate business owners and job seekers about remote work and work from home options and intensify and encourage self-employment as a way of generating more job opportunities in remote areas.
Weak commercial activity and the small size of establishments in remote areas. Expand economical and commercial activities in remote areas to create job opportunities attractive to the labour market available in these areas.
Poor performance of private training institutes in appropriately and sufficiently qualifying graduates to meet the needs of the employing facilities. The Technical and Vocational Training Corporation undertakes the process of submitting these training institutes to quality and performance control in addition to evaluations based on high standards and foundations, in order to achieve the aspirations of the beneficiaries in the labour market.
Failure of private sector establishments in responding to Saudization strategies, which negatively affects chances of attracting national workers. Motivate the private sector by changing the negative perception towards investment in human resources and promote Saudization as a shared responsibility through offering educational programmes and initiatives in this field.
Many job seekers applying to the job market lack knowledge of their preferences and abilities when identifying and selecting jobs, which leads to their non-continuation. Create a systematic and comprehensive vocational guidance and education programme for all labour market participants, whether employers or job seekers, in order to achieve job stability.
Low wage levels offered in private sector jobs compared to the public sector. Develop a wage protection programme to ensure wage suitability for private sector jobs.
Issue legislation that contributes to raising the wages of Saudi nationals in the private sector and reducing working hours in line with the Saudi labour system.
Some establishments are not keen on offering training opportunities for job seekers through training programmes dedicated to them. Create incentive plans to encourage establishments to offer training opportunities that meet the vocational needs of these facilities.
Some nationalities dominate certain professions which leads to “occupational exposure” in the Kingdom’s labour market. Create professional training programmes specifically for these occupations.