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Workforce Localisation and Change Management: The View from the Gulf
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Author(s): Evangelos-Vagelis Dedousis (The American University in Dubai, UAE)and Richard Nathan Rutter (Australian College of Kuwait, Kuwait & University of East Anglia, UK)
Copyright: 2016
Pages: 27
Source title:
Organizational Change Management Strategies in Modern Business
Source Author(s)/Editor(s): Aslı Goksoy (American University in Bulgaria, Bulgaria)
DOI: 10.4018/978-1-4666-9533-7.ch015
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Abstract
Providing employment opportunities for a predominantly young workforce has been a major issue of concern for governments in the GCC countries. As a result governments have become the choice and dominant employer but now there is the realisation that the public sector has reached saturation point and can no longer absorb any significant number of nationals. On the other hand, there is potential for employment in the private sector where the vast majority of foreigners are employed. Thus, workforce localisation is considered an issue of national importance given the predominantly young workforce in the GCC region and difficulties young nationals started facing looking for employment. This study discusses the experiences of the United Arab Emirates (UAE) and Oman in implementing workforce localisation programs. The findings are discussed under main themes and key issues. For its most part workforce localisation refers to entry-level positions offering nationals the prospect of rising in the organisational hierarchy and eventually replacing expatriate personnel. At the same time, foreign employees work side by side with their local counterparts although on substantially different terms and conditions. Local and foreign employees are put on different career paths resulting in workforce segmentation as local employees enjoy the benefits of a core segment and acquire company-specific skills while foreigners are mostly hired to perform specific tasks, have higher labour mobility, and provide labour flexibility to the organisation. Managing human resources effectively within such a context presents significant challenges.
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