Obligating the private sector to train graduates: Details of the human resources decision
The Ministry of Human Resources and Social Development in the Kingdom of Saudi Arabia issued an important ministerial decision obligating private sector establishments with 50 or more employees to provide training opportunities for graduates and job seekers from among the citizens, as part of a comprehensive strategy aimed at raising the efficiency of national cadres and enhancing their participation in the labor market.
Details of the decision and the implementation mechanism
Under the new decision, targeted establishments are required to train a minimum of 2% of their total workforce annually. The decision also 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" electronic platform, clearly outlining all details related to the training duration, phases, and the types of skills targeted.
Regarding large establishments with more than 5,000 employees, the decision set a specific limit for training at 100 trainees per year, to ensure a balance between operational burdens and the social responsibility of these companies.
The context of Vision 2030 and human capacity development
This decision is an integral part of the Kingdom's Vision 2030 objectives, specifically within the Human Capital Development Program, which aims to prepare globally competitive citizens. Historically, the labor market has faced a gap between educational outcomes and the actual needs of the private sector, with practical experience being a barrier to employment for many new graduates. Through these successive decisions, the Ministry is working to bridge this gap by transforming training from a secondary option into an institutional commitment that ensures a smooth transition from the classroom to the workplace.
Expected economic and social impact
This decision is expected to have a broad and positive impact at both the local and national levels. For companies, on-the-job training will provide a workforce that is ready for employment and familiar with the company culture and operations, thus reducing the costs associated with poor hiring practices and employee turnover. For job seekers, these opportunities will offer them the documented practical experience required by most jobs today, enhancing their professional appeal.
Facility commitments and training certificates
The ministry emphasized the necessity of practical and systematic training, requiring establishments to issue trainees a "training completion certificate" upon completion of the designated period, detailing the skills acquired. The ministry has published a detailed procedural guide on its website to clarify all regulatory aspects, affirming its commitment to monitoring compliance and enforcing regulations to ensure the decision's objectives of promoting sustainable employment and supporting the national economy are met.
