Obligating the private sector to train graduates: Details of the human resources decision
The Ministry of Human Resources and Social Development issued a significant ministerial decree aimed at enhancing the skills of Saudi nationals and supporting their entry into the labor market. The decree mandates that private sector establishments with 50 or more employees provide vocational training opportunities for Saudi graduates and job seekers. This decision represents a strategic step to improve the readiness of Saudi youth and empower them to acquire the necessary practical experience.
Details of the decision and the implementation mechanism
Under the new regulations, targeted establishments are required to train at least 2% of their total workforce annually. The decision sets clear timeframes for training programs, stipulating a minimum duration of two months and a maximum of six months. To guarantee the rights of all parties, the Ministry mandated that establishments document training contracts through the "Qiwa" platform, including all details related to the training duration, phases, type of skills targeted, and the profession for which training is being provided.
Training ceiling for large facilities
Taking into account the workload in large companies, the decision set a specific ceiling for the number of trainees in establishments with 5,000 workers or more, where the required regulatory limit was set at 100 trainees per year, in order to ensure the quality of training outputs and to prevent the process from becoming an operational burden, with a focus on the quality of training provided.
The context of the Kingdom's Vision 2030 and human capacity development
This decision cannot be viewed in isolation from the broader context of the economic transformations underway in Saudi Arabia as part of Vision 2030. This approach aligns with the objectives of the Human Capital Development Program, which aims to bridge the gap between educational outcomes and the actual needs of the labor market. Through on-the-job training, graduates acquire practical skills not covered in textbooks, thereby enhancing their employability and reducing unemployment rates—a key objective the Kingdom seeks to achieve in order to empower its citizens to drive economic development.
Expected economic and social impact
This decision is expected to create a positive shift in the Saudi labor market on several levels:
- Locally: It will contribute to providing a rich database of trained talent ready to work immediately, thus reducing recruitment and subsequent training costs for companies.
- Promoting localization: The decision supports localization (Saudization) policies not only through direct employment, but also through pre-employment training, which ensures the sustainability of the Saudi employee in his job.
- Social responsibility: It enhances the role of the private sector as a key partner in national development, transforming it from a mere job provider to a contributor to building human capital.
Compliance and periodic reporting
The ministry emphasized the need for training facilities to develop structured training programs and provide the necessary equipment. It also mandated that they issue periodic reports detailing trainee performance and provide trainees with a certified training completion certificate outlining the acquired skills. The ministry issued a detailed procedural guide explaining compliance mechanisms and affirmed its commitment to monitoring the implementation of the decision to ensure the achievement of its lofty national objectives.
