Emiratisation myth and reality

While the UAE economy is growing faster, it is hard to believe that nationals (locals) are not being engaged in jobs as expected.

It is unfortunate that emiratisation, a serious issue, is surrounded by emotional debate. For more than two decades the issue of localisation in jobs has been discussed, but the results are unsatisfactory in the private sector.

Dr. Ali Bin Abdullah Al Ka'abi, UAE Minister of Labour, cautioned companies that do not employ nationals/locals. In doing so, he suggested the localising of HR positions, similar to the appointment of PROs.

While appreciating his efforts to develop nationals, let us hope that HR experts and CEOs may be invited to share their experiences on this emiratisation drive.

The real issue is not growing unemployment, but rather bad working conditions. Locals must be not only offered jobs, but be engaged in good employment.

There is disparity in pay practice, and locals will not accept poor working conditions. Most of them working in the private sector are paid at low levels, not in line with industry standards.

Since employee retention is a key to growth, nationals must be offered a decent salary in line with market pay.

Although officially inflation is four or five per cent, consumer prices actually have increased by up to 40 per cent. Yet there is no matching salary adjustment in the private sector. Consequently, it has become difficult to attract locals.

Cost ratio

Expatriates can be engaged as cheap labour. The manpower cost ratio between expatriates and locals has become wider. The cost of engaging locals is an issue to be debated.

There are many employers in this country that could engage locals in various positions but do not do so. They prefer to employ expatriates at cheaper rates. Unfair practices in business must be stopped, whether relating to locals or expatriates.

At the same time, it is worthwhile mentioning that there are some positive aspects to report. There are sizeable numbers of nationals holding decent positions in the private sector, treated equally with western expatriates.

Organisations such as DP World, Al Futtaim Group and Majid Al Futtaim Group are well-managed by locals, and banks too. The reason is compensation and benefits, which is the key to engaging UAE nationals.

Targeting HR Jobs will not lead to overall success. In fact, lack of experience would be a hindrance to business. Whether local or expatriate, HR personnel need a sufficient skill set to operate. It is not an easy profession as compared to PRO, a government affairs role.

The PRO role is like a messenger, dealing with documentation work, whereas HR requires strategy skills to manage business. It requires a set of management competencies, dealing with the whole organisation. A HR manager is not a manager only of the HR department, but actually of the whole company. It is a role next to CEO. HR positions require maturity and experience.

The banking sector, although it is achieving a four per cent quota in engaging locals, is doing so both because of the Central Bank's rule and ministry's decision, but also because of a professional management approach.

Local emerging banks, such as Dubai Islamic Bank, which has been achieving consistently good growth in engaging UAE nationals, do not just fulfil a quota, but actually are applying able leadership and HR strategy.

It will be by ensuring best HR practices not imposing restrictions or quotas that the desired results will be achieved in promoting jobs for nationals/locals.

- The writer is an HR consultant, formerly with the Dubai Government and other major employers.