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

Areej Azhar (), Professor David Edgar () and Dr. Peter Duncan ()
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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

Journal of Business, 2016, vol. 1, issue 5, 1-14

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.

Keywords: Banking; Human resource management; Saudi Arabia; Saudization. (search for similar items in EconPapers)
JEL-codes: E24 J41 J63 J64 J68 (search for similar items in EconPapers)
Date: 2016
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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