Human Resource Development

What is human resource development?

Human Resources Development (HRD) can be defined as an organized and deliberate process through which the skills of new employees are refined to match their new jobs in the labor market. In other words, it is the development of the capabilities of the institution’s employees and a thoughtful discovery of their talents and skills to increase productivity, raise the level of the institution to which they belong, and enhance its performance.

Following this concept, the Ministry of Human Resources and Social Development seeks through many special programs to raise the level of the Saudi labor market, the most important of which is the establishment of the Human Resources Development Fund (HRDF) by order of the Custodian of the Two Holy Mosques to be a successful investment in the development of the national workforce. The Fund’s development vision was evident in its support and the employment of 277,000 Saudi men and women within the private sector during the first nine months of 2022, in addition to its signing of a memorandum of cooperation with the Authority for People with Disabilities (APD), with the aim of developing the national workforce of this segment in the Kingdom.

The importance of developing human resources

The Minister of Labor and Social Development in Saudi Arabia referred to the interest of Custodian of the Two Holy Mosques in the development of human resources at the level of the entire Kingdom. When he said at the first SABIC Human Resources Forum in 2017: “The government of the Custodian of the Two Holy Mosques has given great attention to the development of human resources, as it is the axis of development in every society.” In this case, the importance of human resources development can be summarized as follows:

• Improving the quality of work, which necessarily leads to supporting the national economy. The king’s belief in this interdependence between quality and economy encouraged him to approve the launch of the King Salman Program for Human Resources Development, with the aim of raising the level of employee performance and improving their work environment.
• Developing employees’ skills at work, to enhance their confidence in their competence and increase their giving at work. This step is clear evidence of successful investment in human resources because it saves time and effort in the recruitment process.
•  Developing employees’ abilities to communicate with their managers in the work environment, build relationships that raise production efficiency, and meet the requirements of the local labor market.
•  Increasing the flexibility of employees in dealing with changes and challenges in the field of work. This is the result of training human resources before entering the field, and it will have a noticeable impact in the long term in enhancing economic growth.

How can human resources be developed?

The development of human resources requires action on two parallel levels. The first is to qualify fresh graduates, and the second is to develop the skills of the employees who are on the job. This is what development achieves through concerted efforts in several ways, the most important of which are:

• Guiding the national force and new employees and encouraging them to participate in programs that hone their skills. For instance, the digital platform “Doroob”, this platform seeks to raise and develop the skills of the national forces in Saudi Arabia both males and females. Moreover, “Tamheer” program, which aims to qualify Saudi graduates to enter the labor market with greater readiness and higher efficiency.
• Training employees and refining their skills in line with the needs of the organization they work in. They can benefit from the “Mumken” program, which develops the skills of those on job in the private and non-profit sectors in the kingdom and provides them with the necessary knowledge during work.
• Create a spirit of cooperation among employees to provide a work environment conducive to the exchange of experiences, which naturally raises the level of productivity and efficiency.
• Follow-up the performance of employees and seek to guide them to the best in a way that serves the objectives of the institution and the work environment.
• Supporting financing programs, plans, projects, and studies aimed at employing Saudis and replacing expatriate workers.
• Providing the necessary loans to facilities that are being established for training the national workforce or support the existing facilities to expand their activities.
• Conducting studies related to qualifying, training, and employing the national workforce with providing them with necessary technical and administrative consultation.

It is worth mentioning that focusing on the young workforce in developing human resources is important in the Kingdom. Given that two-thirds of the Saudi workforce is concentrated in individuals between the ages of (25-44) years old, according to the General Authority for Statistics.

The impact of human resource development on economic

Human resources development has a strong relationship with economic development, as it is its main engine. It is an investment in the skills and competence of working individuals, who can make a tangible difference in the economy of their local communities. In addition, developing their skills improves the quality of products and services to enhance the national economy overall.

Based on the keenness of the Kingdom to achieve the positive impact of human resources development on economic development, statistics tracking the Saudi Export Program, one of the most important programs launched by the Saudi Fund for Development, showed that the ratio of spending on human resources development to the ratio of GDP increased from 6.9% in 2000 to 8.4% in 2017. Moreover, the development of human resources contributed to the relative increase in non-oil exports, and its contribution to the gross domestic product was 4.3% in 2000, and it rose to 7.5% in 2017.