Strategic human resource management and workforce management: a case of Saudi Arabia

Background: This study analyzes the emerging dynamics of workforce management in Saudi Arabia after the adoption of Vision 2030. It explores and highlights the need for a national-level HRM (Human Resource Management) system for Saudi Arabia. It examines the recent raft of changes which have taken place in the labor market and the adoption of intense localization policies. Given these developments, it is imperative to evaluate the contours of the emerging HRM disposition in Saudi Arabia. Objectives: The paper discusses the complexities of the HRM system and endorses the need for a national-level HRM framework for Saudi Arabia. Methods/Approach: Using an integrated literature review approach, the study evaluates the localization policies and other legal changes which have had a significant impact on the employment realities in the Saudi context. Moreover, it attempts to shed light on the emerging policies, rapidly-changing structure of labor markets, the role and competence of HR personnel and key decision makers, and the emergent HRM architecture and HRM system in Saudi Arabia. Findings: In the last 10 years, these factors have emerged together with the changes taking place economically, socially, culturally, and in the labor market. There is a need to regulate the employment scenario, and to achieve the desired employment target and other related key performance indicators (KPIs) as stipulated in Vision 2030. Conclusion: The paper argues for the adoption of a concerted approach, and the need for a national-level HRM system that can seamlessly adopt workforce management and localization policies without compromising the competitiveness or core competency of Saudi firms.