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The Impact of the Saudization Policy on Recruitment and Retention: A Case Study of the Banking Sector in Saudi Arabia

Author

Listed:
  • Areej Azhar

    (Ph.D. student at Glasgow Caledonian University, Glasgow G4 0BA, Scotland, UK)

  • Professor David Edgar

    (Professor of Strategy and Business Transformation at Glasgow Caledonian University, Glasgow G4 0BA, Scotland, UK.)

  • Dr. Peter Duncan

    (Senior Lecturer at Glasgow Caledonian University (GCU), Glasgow G4 0BA, Scotland, UK)

Abstract

To reduce unemployment and reliance on expatriate workers, the Saudi Arabian government has been implementing a Saudization programme to replace expatriates with Saudis. This has succeeded in the public sector, but not in the private sector, except in banking, which is perceived as a white-collar occupation and acceptable in Saudi society. As such, this study investigates the impact of Saudization on recruitment and retention in the banking sector to see what lessons have been learned and what action is required. A systematic literature review was conducted, followed by questionnaires with 48 branch managers, and interviews with 12 Human Resource managers of key banks. The findings show that Saudization has an impact on several aspects of recruitment and retention in the banking sector, in particular, banks must provide specific training to Saudi recruits, revise working hours and promote the attractiveness of the post. Adopting such practices can benefit Saudi banking and contribute to the fulfillment of Saudization.

Suggested Citation

  • Areej Azhar & Professor David Edgar & Dr. Peter Duncan, 2016. "The Impact of the Saudization Policy on Recruitment and Retention: A Case Study of the Banking Sector in Saudi Arabia," Journal of Business, LAR Center Press, vol. 1(5), pages 1-14, November.
    • Handle: RePEc:lrc:larjob:v:1:y:2016:i:5:p:1-14
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    Citations

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    Cited by:

    1. Ghulam Ali Arain & Zeeshan Ahmed Bhatti & Naeem Ashraf & Yu-Hui Fang, 2020. "Top-Down Knowledge Hiding in Organizations: An Empirical Study of the Consequences of Supervisor Knowledge Hiding Among Local and Foreign Workers in the Middle East," Journal of Business Ethics, Springer, vol. 164(3), pages 611-625, July.
    2. Mo’men Hani Mahmoud & Rosly Othman, 2024. "Effects of New Public Management Reforms on Human Resource Practices: A Case Study in Jordan," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(1), pages 149-176, February.
    3. Faisal Mohammed O. Almaslukh & Haliyana Khalid & Alaa Mahdi Sahi, 2022. "The Impact of Internal Marketing Practices on Employees’ Job Satisfaction during the COVID-19 Pandemic: The Case of the Saudi Arabian Banking Sector," Sustainability, MDPI, vol. 14(15), pages 1-15, July.

    More about this item

    Keywords

    Banking; Human resource management; Saudi Arabia; Saudization.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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