KPMG: 54% of HR executives in Saudi call for workforce transformation

More than half (54 percent) of the Human Resource (HR) executives in Saudi Arabia recognize the need for the workforce to be transformed, as organizations face significant challenges due to the continuous changes in the external environmental factors, reveals the first-ever HR survey by KPMG Al Fozan & Partners, a leading audit, tax and advisory services provider in Saudi Arabia.

In the 2019 edition titled "Future of HR", KPMG sheds light on key areas such as HR function evolving role and capabilities, digital transformation agenda of HR executives, challenges and priorities reshaping HR, and the workforce of the future.

While 6 out of 10 HR executives (63 percent) say HR has initiated or recently completed a digital transformation, HR executives firmly believe technology transforms the way HR operates. 

"Having a digital plan in place is the first step in achieving digital transformation and HR executives should focus upon understanding the emerging role of digital labor, finding the best way to integrate human and digital labor in the workforce," commented Nazeeh Abdullah, Head of People & Change Advisory at KPMG Al Fozan & Partners.

As data and analytics in HR allow businesses to optimize HR operations, strategic planning, decision making and performance tracking, HR transformation leaders of tomorrow in the Kingdom must make the best use of data and analytics to improve the value of HR function to the business and boost their organization overall competitiveness in the race for the best and brightest talent, he added.

According to the survey, HR executives perceive "learning”, “reskilling" and "performance management" as HR capabilities to be of the highest value to their organization.

Sixty-nine percent of HR executives are confident in their ability to transform the workforce, in line with global peers (76 percent). However, 31 percent of the survey participants say they “are less or not confident” in transforming, which could lead to a struggle in the digital era, compared to 24 percent globally.

"One of the major issues faced by HR is productivity. HR executives need to figure out how to improve organization and workforce productivity. Obtaining a deeper understanding of employee skills, strengths, goals and purpose, while creating customized employee experiences and figuring out the perfect workplace culture will help people and organizations thrive together," said Abdullah.

The survey found HR leaders in the Kingdom consider capability/skills (60 percent), IT organization (60 percent) and workplace culture (33 percent) as the top three barriers to transcending the initial phases of digital transformation.

"HR executives who have the ability to motivate, engage with and empower their people shall play an important role in maximizing business value and impacting their organization’s bottom line," Abdullah concluded.