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Human Resources Development Fund
Human resources development constitutes one of the major problems that the Kingdom faces in its efforts to strengthen the process of its economic development, using a series of economic reforms whose effects have become visible when the government of the Custodian of the Two Holy Mosques has taken a number of decisions and steps. Some of the major decisions and steps that have been taken are the Saudization of jobs and the preparation of Saudi youth in order to assume their responsibilities and participate in the growth and development of the national economy. In addition, companies in the private sector are to be encouraged and assisted so that they can hire Saudis and make their capabilities and services available to them.
In consequence of this, the economic policy makers of the Kingdom have realized the importance of making human resources development a top priority, establishing and developing effective modern mechanisms that will usher and guide it. These mechanisms are to comply with the needs of the local labor market in order to guarantee the highest returns both in terms of quantity and quality. They should also support and invigorate the national economy so that it can stand up to regional and international competition.
Giving importance to the investment in human resources development has considerably
increased, starting from the first five-year plan in 1970 and going up to the end of the seventh five-year plan in 2004 (see figure 1). Hence, the training and preparation of Saudi
human resources and the development and enhancement of their skills has become the
first priority in the development policies of the government. Consequently, 276 billion riyals have been earmarked for human resources development in the seventh five-year
plan.
As a result of this, the Council of Ministers had made Resolution No. 107 dated July 2000, and the Royal Court released Royal Decree No. 18M dated August 2000 to establish the Human Resources Development Fund. The Fund will have a legal personality and will be administratively and financially independent. Its Board of Directors will represent it and its head office will be in Riyadh. It will also have offices and agents that will carry out its activities in other cities in the kingdom. The Fund will concentrate on the encouragement,
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The establishment of the Human Resources Development Fund, with its legal and administratively and financially independent personality, was founded as a result of a clear
strategic Saudi objective whose achievement has posed an unprecedented challenge. This strategic objective is the Saudization of jobs in the private sector; and the establishment
of the Fund has become one of the effective mechanisms that prepares well trained and well qualified Saudi cadre of both genders who will be up to the challenges ahead. The
preparation of this cadre will precipitate the achievement of the strategic objective that
will bring about social, economic, and security benefits to our country.
The Human Resource Development Fund has been given the responsibilities that have
been drawn out by our esteemed leadership, which was spelled out in the Resolution of
the Council of Minister No. 107 dated on July 2000 and in the Royal Decree No. 18M dated on August 2000. It was decided by these authorities to establish the Fund as a legal entity that enjoys administrative and financial independence. This status will enable those
who run it to translate the policies of the government into reality; and they are supposed to do this by offering the essential knowledge and skills, which will help them to get jobs in the private sector, to Saudi youth. The execution of these policies will undoubtedly have positive effect on our national economy.
In connection with this, the annual money transfers by the expatriate labor are a financial drain from the national economy, which cannot be ignored anymore. The constant flow
of these funds outside the country can be stopped, and the money can be invested in economic projects either in manufacturing or in the services, when the citizens of this country take the place of the expatriates and assume their responsibilities towards their
country in the best possible way. When this happens, the out flowing funds will flow in,
and will, consequently, reinforce our economic stability and our national security.
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Objective and Responsibilities of the Fund
The General Objective of the Fund:
To support the efforts to prepare a national workforce
and help them employed in the private sector.
In order to realize the general objective, it will do the following:
Offer grants to those involved in the preparation, training, and employment of a
1.
national workforce, especially in the private sector.
Share the expenses of preparing, training, and employing the national workforce
2.
in the private sector.
Pay a percentage of the salary of any trainee who is hired by a private firm after he
3.
finishes his training. The same will be done for new recruits of the firm.
Offer financial assistance to programs in the field, projects, plans, and studies
4.
that are aimed to employ Saudis and help them take the place of the expatriate workforce.
Provide loans to private establishments that prepare and train the national
5.
workforce.
Embark on studies and research that are related to activities in the field of preparing,
6.
training and employing the national workforce.
The Fund has from its inception laid down the structures and organizations that enable
to carry out its work and execute its objectives. It has established an administrative
structure that reflects the objectives for which it has been founded. For example, it
has created the following departments: the department of training, the department of
employment, the department of programs and research, and the department of financing.
These departments complement each other in their work – a feat which has enabled
them to achieve the objectives of the Fund in a balanced manner and made them exhibit
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The Administration of the Fund
Intent on developing its human resources, the Fund has given training courses to
its employees in order to enhance their abilities. These courses have contributed to the development of their skills and abilities.
Likewise, the participation of the Fund in conferences and seminars that are concerned
with human resources development has had positive effect on it. It has been exposed to the most modern techniques and positive practices related to its specialization. Consequently, this has enriched the knowledge and skills of the participants from the
Fund who attended these courses.
The Department of Training
The role of the Department of Training of the Fund is to facilitate the needs of the
private sector by translating one of its objectives, namely the employmentoriented training into reality. It will do this by ensuring the high standards of the graduates and the competences of the trainees. Moreover, it will ascertain the availability of opportunities and essential equipment in places where the training is done, endorse the programs, follow them up, prepare recommendations of support, and regularly assess them.
The Department of Employment
The Department of Employment is responsible for the coordination with places of work,
namely in establishments, training and educational companies, and national employment projects that are concerned with the employment of Saudis. It is also responsible for studying applications for direct employment, which are submitted by the establishments
and companies, the follow up of new employees after they are hired, and the confirmation
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The Department of Finance
The Department of Finance is responsible for the following:
Assessment of the economic viability of the training programs and projects before
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offering the loan to the firm, and ensuring their consistency with the general objectives of the Fund.
Receipt of enough guarantees that are proportional to the loan from the firm that
•
applies for the loan.
The amount of the required loan for any program or project of a single firm should not
•
exceed 2.5% of the money allocated for loans in the fiscal year by the Fund, and 30%
of the total cost of the project that seeks the loan.
Supervision of the implementation of programs and projects that receive loans in order
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to ensure that they are going according to plan, and provision of consultations with
regard to problems and difficulties that programs and projects face. This supervision
will be carried out in the form of periodical reports about
the progress of the work of the programs and projects as well as in the form of visits
•
for inspection.
The Public Relations Department
The Public Relations and Media Department comes directly under the Director General.
This department has a number of responsibilities chief among which is transmitting
the mission and the objectives of the Fund to the general public, which is the actual environment for the work of the Fund. It will do this by passing on the news of the Fund
and its activities to the different types of the media, and by being present in the events
and seminars in which the Fund participates.
The Quality Unit
The aim of this unit is to improve the quality of the services of the Fund. It is responsible for the design, endorsement, and follow-up of quality control programs for all the activities of the Fund. Some of these programs create systems for measuring
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the quality of service with regard to competence, effectiveness of performance, and analysis of production services in a periodic manner, while comparing with them both the
local and international standards. It then submits reports to the Director General. It also contacts the organizations that benefit from the services of the Fund, checking their level
of satisfaction and receiving and acting upon general suggestions.
The Department of Planning and Development
This department is responsible for preparing the yearly and five-year plans that are laid down in order to realize the objectives of the Fund. It also follows up their executions
after they are adopted.
The Financial and Administrative Department
This department is responsible for providing financial services to the departments, units and employees of the Fund.
The Department of Programs and Research
This department is responsible for coordinating the programs and projects that are concerned with the growth and development of human resources. It conducts studies and research in the preparation, training, and employment of the national workforce that
the Fund contributes to their funding. It also provides library facilities and facilities in the field for the researchers of the Fund.
The Legal Department
This department is responsible for studying the law and giving legal advice to the
Fund. It studies all the cases that it receives from all the departments and provides legal
opinions about them. It also studies and prepares contracts and agreements according to the rules of the government. Moreover, it revises and checks the agreements that are to be made with others, ensuring their accuracy and precision from the legal perspective
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and checking that they are properly drafted and clearly express the aims that they aremeant to serve. In addition, it represents the Fund in courts during legal proceedings. It
also studies and compares the sources and rules of law, such as labor law, commercial law, and administrative law.
Follw up Department:
Implement an active control on the performance of the fund administration units
and its branches as well as making sure that the workflow is going on according to the
polices,plans, and programs set forth. Moreover, monitoring the extent of the supported
establishment abidance by the agreement concluded with the Fund.
Female Section:
Introduce the services provided by the Fund to the business women through
facilita-tion of training and employment of female nafacilita-tional labor force and enabling this labor force to occupy suitable jobs in the private sector.
Department of Information Systems:
This department is concerned with supply, promotion and upgrade; and operation of the various software and systems as well as the hardware of all types involved in perfor -mance of the Fund activities.
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King Fahad Recruitment National Center
The late Custodian of the Two Holy Mosques King Fahad Bin Abdul Aziz (May Allah Bless him) had approved to establish King Fahad Recruitment Center at his own cost to
stand as a technologically and electronically advanced center is to assist in employing saudi manpower and to provide professional advice on programs.
General aim of the Center:
The center is aiming to facilitate employment of Saudi Manpower in the private sector, and provide professional advice services.
Detailed objectives:
provide recruitment service for Saudi citizens who are seeking employment, and
1.
business enterprises in the different regions through advanced technologies.
Act as coordinator between applicants and the private sector to fill in the available
2.
vacancies.
Establish a labor market database for both employment seekers and available va
-3.
cancies.
Inroduce training programs required for the labor market and suggest suitable pro
-4.
grams for applicants whose qualifications are not appropriate for the available
va-cancies.
Provide professional advice and detect professional tendencies of school students in
5.
early stages of education to help them in determining their course of education and training, and interlink education and labor market.
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Provide special care for employment seekers of the special needs category, as well6.
as those users who required special care.
Establishment of the center:
Establishment phase had involved the construction of three centers in the major re -gions: Riyadh. Holy Makkah and Eatern regions. Then followed by opening (12) electronic service units at Riyadh, Holy Makkah, Dammam, Hail, Abha, Jizan, Najran, Onaiza, Jed-dah, Wadi Dawasir, Al Jouf,
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1-Training & Recruitment Support Mechanism
The Fund has developed the trainig & recruitment programs which started in the two previous years and represented in the recruitment - linked training program and the direct recruiment program to be replaced by the developed program for supporting training & recruitment aiming at expanding the training & reccruitment field in the Private Sector which has been implemented on 16/08/2004 AD as follows:
The Support Mechanism for those priviously qualified or
trained (one already qualified) :
It aims the support of those previously trained by government or private institutions
and holding an approved specification and holding an approved certificates such as the graduates of University and the Colleges & Institutions of the General Organization of the Technical & Technological Organization and the Institute of Public Administration so that
the trainee shall satisfy the requirements of the job or required training for provisional adaptation while at work. The support in this way shall be offered as per the following mechanism.
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Training Support
Supporting the period subse-
quent to training
Period
Training
Salary
Period
Salary
Dosen`t exceed (3) months 500 SR/ month for each employee 75% of the
salary not exceeding
(1500) SR/ month
for every employee and the employer shall incur
the remaining percentage. The period complementing two years effective the expiration of training (24) months training period (50%) of the
total salary not exceeding
(2000) SR/ month
for every employee and the employer shall incur the
remaining percentage.
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Training Support
subsequent to training
Supporting the period
Training
Institution
Period
Training Cost
Salary
Period
Salary
Inside the institution Outside the Institution Not exceeding (12) month Not exceeding (24) month (500)SR month for every employee (75%)oftraining cost not
exceeding (1500) SR/month.
The employer shall incur the remaining percentage. (75%) of the saary not exceeding (1000) SR/month for every employee. The employer shall incur the
remaining percentage (12) months 50%) of total salary not exceeding (2000 SR ),
month for every employee and the employer shall incur the remaining percentage.
The Mechanism of supporting those not priviously qualified
( The non-qualified ):
It aims supporting the training and recruitment of those not previously trained qualified and does not fulfill the requirements of the job he/she is nominated to. In this case, the support is
offered as per the following mechanisms:
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The Mechanism of Supporting Health Training:
It aims at supporting the qualification of job seekers in specialties that achive added value to the labor market and it includes supporting recruitment-linked training for the
diploma stage and for those desiring to pursue their study of diploma or complementary
B.Sc in nursing or pharmacology specialties in addition to supporting the recruitment-linked training for the B.Sc stage in nursing and pharmacology. Here under is a brief
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The target
category
The trainee
status
Training
location
Period
Cost
Salary
period
Cost
Diploma stage Not previously supported
Outside the establishment premises Not exceeding 30 months The fund contributes by 90% of training cost not exceeding 9000 SR/One semester The fund contributes in supporting the salary by 1000 SR/ month One year commencing from the expiration of training The fund contributes by 50% of the employee`s salary not exceeding 2000 SR per month. The complementary B.Sc stage.It is a perquisite to
obtain a diploma, passing the professional practice exam,
plus being at work and the lapse of one year at
least in the job
Training shall be
restricted to Nursing &
pharmacology specialties
Outside the establishment premises
The complementary
period for the
B.Sc stage after crediting the diploma hours from the competent organization
The fund shall
contribute by 90%
of the training cost not exceeding
25000 SR for one
semester.
Not obtaining a support for salary from
the fund. Recruitment shall not be supported unless after completing the B.Sc stage. B.Sc stage (Nourice) Training shall be
restricted to Nursing &
pharmacology specialties
Outside the establishment premises. The approved period for obtaining B.Sc degree as approved from the educational organization in the Ministry of Higher Education
The fund shall
contribute by 90%
of the training cost not exceeding 25000 SR for one semester. The fund contributes by 1000 SR/ month during training One year effective the completion of training The fund contributes by (50%) of the employee`s salary not exceeding 2000 SR
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The target
category
The trainee
status
Training
location
Period
Cost
Salary
period
Cost
Diploma stage Not previously supported
Outside the establishment premises Not exceeding 30 months The fund contributes by 90% of training cost not exceeding 9000 SR/One semester The fund contributes in supporting the salary by 1000 SR/ month One year commencing from the expiration of training The fund contributes by 50% of the employee`s salary not exceeding 2000 SR per month. The complementary B.Sc stage.It is a perquisite to
obtain a diploma, passing the professional practice exam, plus being at work and the
lapse of one year at least in the job
Training shall be
restricted to Nursing &
pharmacology specialties
Outside the establishment premises
The complementary
period for the
B.Sc stage after crediting the diploma hours from the competent organization
The fund shall
contribute by 90%
of the training cost not exceeding
25000 SR for one
semester.
Not obtaining a support for salary from
the fund. Recruitment shall not be supported unless after completing the B.Sc stage. B.Sc stage (Nourice) Training shall be
restricted to Nursing &
pharmacology specialties
Outside the establishment premises. The approved period for obtaining B.Sc degree as approved from the educational organization in the Ministry of Higher Education
The fund shall
contribute by 90%
of the training cost not exceeding 25000 SR for one semester. The fund contributes by 1000 SR/ month during training One year effective the completion of training The fund contributes by (50%) of the employee`s salary not exceeding 2000 SR
per one month.
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The Fund Programs
1-Training program at work ending by skill for job seekers:
This program aims at enrolling the non-qualified job seeker in a training program at
work in an establishment to empower him acquire specialized skills and experience in a
given profession then consider employing him in the trainig establishment or others (Non recruitment liked training). The fund shall incur (500 SR) for the establishment and (1500 SR) as a compensation for the trainee on monthly basis for one trainee.
2- While at work training ending with experience ( for those
already qualified):
This program aims at entrolling the qualified job seeker whom it was difficult to recruit in a training program at work in an establishment for enabling him / her acquire experi-ence in a given profession and then study the possibility of employing him / her in the training establishment or others (Non-recruitment-linked training). This program is
sup-ported in accordance with the training mechanism ending with skill while being at work.
3-The program Maher 12/ 12 for qualifying the specialized
cadres:
This program aims at qualifying (12,000) job seekers for work in several professions needed by the labor market by the year 2012. They are non-employment training
pro-grams. Training is conducted in programs approved from training institutions that have achieved outstanding success in trainig and employing the outputs. The fund incurs all
the training cost and the compensation to the trainee amounting (1000 SR)on monthly
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4-The Professional Guideance Program:
The professional guidance addresses two categories
The First: School students
The guidance aspect is related to them, as through it, a scheduled visits by schools
are conducted to King Fahd National Recruitment Center or any of its branches for ben-efiting from the educational lectures provided to them and perform the professional
pref-erences examination via the professional guidance system available on the electronic site
of the Fund.
The Second: The Job Seekers
They are related to the professional guidance as it is provided to them via guidance lectures and movies for job seekers applying to the center as such lectures and movies contribute in educating them on how to search for a job, how to prepare CVs, getting ready to interviews and introducing them to the work envionment in the private sector.
5- The Direct Employment Program
The program is provided to the private sector institutions suppoprted and
non-sup-ported by the fund through activating the support agreements entered between the fund
and the private sector institutions as King Fahd National Employment Center directs those registered in the center`s database for work in the jobs provided by the supported
institutions as per their employment plans in addition. More over, the center holds direct
employment meetings combining the job seekers with the recruitment officials in the non-supported institutions for performing interviews and employment in the light of the
same.
6-Distance Work Program
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special needs via distance work technique in the establishments of the private sector either by work at home or in another alternative site on fulltime work basis. The employee
shall be considered a staff in the beneficiary establishment. The importance of distance
work technique is derived from the availability of female job seekers having specialized
scientific and training qualification that enabling them to work and achieving productivity. The Fund shall incur 50% of the employee`s salary, not exceeding 2000 SR on monthly
basis for two years.
7-The Program of supporting training & qualifying the owners
of the small-size establishments
This program aims at supporting the training & qualifying the citizens dessiring to start their own projects by incurring the training costs estimated by (3000 SR) for every trainee joining the program via the training portfolio approved by the Fund and implemented by
the training bodies sponsoring the small size projects as per the conditions and controls
determined by the Fund.
8-The Program of supporting the owners of the small size proj
ects
This program aims at supporting the owners of the small establishments by paying
a monthly subsidiary to the owner of the small project amounting to (3000 SR) for (24) months as per the support controls to be determined by the Fund, provided the capital of the establishment is subsidized by an another official body such as the charity fund, Al Me`awwiyah fund, credit & saving bank or the chamber of commerce provided that
the owner of the small establishment practices the work by himself, with the possibility
that the establishment owner may benefit from the Fund`s subsidization of his Saudi Staff wages in case he /she enters a subsidization agreement with the Fund.
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9-The Program of providing the technical & administrative
consultancies to training
This program aims at providing the technical & administrative consultancies to the
establishments, individuals and the private training institutes and centers with respect of the training programs required by the labour market as well as the criteria and the
controls of the quality of the training programs supported by the Fund and introducing
them to the commercial partnership and conscience with international training bodies,as
well as motivating them to adopt the specialized international certificates and obtaining the ISO 9002 in the training institutions as well as providing the technical support for the training bodies which develop their programs for introducing the work principles & ethics, and perform the personality test & analysis for the trainees before enrolling them to the
programs.
10-The program of qualifying the human resources specialist:
It is a training program directed to the human resources officials in the private sector establishments and it aims at qualifying and preparing national cadres in the field of the management of human resources and jobs saudization in such establishments. The Fund contributes with a subsidization amounting to 75 of the training costs.
11-The Program of the Human Resources Manual
It aims at providing work manuals for guiding the establishments of the Pri
-vate Sector in establishing and upgrading the concept of Human Resources.The
manual shall include the policies of the management of human resources and
the organizational charts for the departments as per the establishment size and
the requirements of establishing an information system for the human resources
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12-The Program of the incentives for the job stability for the
supported employees
This program aims at achieving the job stability for the supported employees in the
employing establishments, so that the employee benefiting from the support completing
one year period in the employing establishment shall be given a compensation equal to one month salary in addition to a training program to be determined by the establishment
which cost shall not exceed (5,000) only five thousand Saudi Riyals. It has been also
ap-proved awarding the employee who completes a two year period in the establishment a two month salary eward, in addition to a training program to be determined by the estab -lishment which cost shall not exceed (10,000) Ten thousand Saudi Riyals.
13-The Program of supporting prisoners employment
This program aims at encouraging the prisoners during passing their sentence in jail and afterwards through contributing in supporting their salaries as the fund contributes
for (24) months with an additional amount to the salary by (5%) of the salary of the jailed employee during passing his sentence in jail, which shall not exceed (1000) Saudi Riyals,
on monthly basis.In the event, the sentence expires prior to the expiration of the sup -port period (24 months) and the continuity of the contractual relationship between the employee and the establishment as set forth in the organizational regulations, 50% of
the salary shall be supported for the period completing the two year period provided that
