Tips for Employers Archives - Yaqoot Manpower Services

10Nov

Challenges of Recruiting in Remote Regions of Saudi Arabia

Recruiting skilled and reliable workers is already a demanding task. But when it comes to remote regions of Saudi Arabia, the challenge becomes much greater. These areas are often far from major cities, have limited facilities, and are sometimes located in harsh environments like deserts or industrial zones. Yet, many of these regions are home to important oil, gas, construction, and mining projects that are vital for the country’s economy.

Finding the right talent to work in these areas requires time, strategy, and expertise. In this blog post, we’ll explore the main challenges of recruiting in remote regions of Saudi Arabia and how manpower agencies like Yaqoot Manpower Services help companies overcome these difficulties.

1. Understanding Remote Regions in Saudi Arabia

Saudi Arabia is a vast country — the largest in the Middle East — with cities spread out over deserts, mountains, and coastal plains. While major urban centers like Riyadh, Jeddah, and Dammam have advanced infrastructure and easy access to manpower, many of the kingdom’s industrial projects are based in remote regions such as:

The Empty Quarter (Rub’ al Khali) — known for oil exploration projects
Al-Jouf and Tabuk — key agricultural and energy development zones
Yanbu and Jubail — major industrial and petrochemical hubs
NEOM and The Red Sea Project — massive construction sites located far from cities

These regions are crucial to Saudi Arabia’s Vision 2030 development plan. But their distance and environment make recruitment a complex process.

2. Limited Local Workforce Availability

One of the biggest challenges in remote area recruitment is the lack of local manpower. Many of these regions have small populations, and the few residents who live there often prefer not to work in physically demanding industries like oil and gas, construction, or mining.

As a result, companies rely heavily on foreign workers to fill the gap. However, hiring from abroad requires coordination, visa processing, training, and relocation — all of which take time and resources.

Solution:

Agencies like Yaqoot Manpower Services maintain a global recruitment network that sources workers from countries such as Pakistan, India, Bangladesh, Nepal, and the Philippines. By pre-screening candidates and managing documentation, they make it easier for employers to get skilled labor ready for deployment to remote sites.

3. Harsh Living and Working Conditions

Many remote regions in Saudi Arabia have extreme weather conditions, with temperatures soaring above 45°C in summer and limited access to water or shade. Workers may live in camps or isolated housing facilities far from urban life.

Such conditions can make it hard to attract and retain employees, especially those who are used to working in more comfortable environments.

Solution:

To overcome this, companies often provide:

Competitive salaries
Comfortable accommodation
Medical facilities
Transportation services
Rest and recreation areas

Recruitment agencies also play a key role by preparing candidates mentally and physically for these environments before deployment. Proper orientation helps reduce turnover and boosts productivity.

4. Difficult Logistics and Transportation

Another major challenge is transportation. Many remote job sites are located far from airports, highways, or cities. Delivering equipment, food, and personnel requires careful logistical planning.

For recruiters, this means extra effort to:

Arrange travel schedules
Coordinate employee transfers
Ensure timely arrival at remote project sites

When logistics are not well managed, projects can face costly delays.

Solution:

A good manpower agency coordinates end-to-end mobilization, from flight bookings and airport pickups to site transfers. For instance, Yaqoot Manpower Services ensures workers reach their assigned project locations safely and on time through trusted transport partners and site coordinators.

5. Limited Communication and Connectivity

While Saudi Arabia’s major cities enjoy high-speed internet and modern communication systems, many remote regions still have limited network coverage. This creates challenges in daily operations and in managing a remote workforce effectively.

Recruiters and HR teams struggle to:

Conduct interviews online
Track attendance or performance
Provide quick responses to site issues

Solution:

Some companies use satellite-based systems and remote communication tools to stay connected. Agencies like Yaqoot Manpower also maintain on-site supervisors or coordinators who act as a bridge between workers and management, ensuring smooth communication.

6. Cultural and Social Adjustment

Foreign workers moving to remote areas in Saudi Arabia often face cultural adjustments. The environment, food, social interaction, and isolation from families can lead to emotional stress and low morale.

This is particularly true for workers who come from densely populated countries where community life is active and lively. Working in a desert region with limited entertainment can feel lonely.

Solution:

Recruiters can help workers adapt by:

Offering pre-departure cultural training
Ensuring regular communication between employers and families
Arranging group recreational activities or rest breaks

These small efforts improve worker satisfaction and reduce turnover.

7. High Recruitment and Deployment Costs

Recruiting for remote regions is usually more expensive than for cities. Costs add up due to:

Visa processing
Medical examinations
Travel and accommodation
Orientation and training
Transportation to remote project sites

Additionally, when employees leave due to difficult conditions, companies face replacement costs — restarting the entire recruitment process.

Solution:

Partnering with an experienced manpower agency helps optimize these costs. Yaqoot Manpower Services, for example, offers comprehensive recruitment packages that include sourcing, documentation, travel management, and on-site follow-up — ensuring cost efficiency and reliability.

8. Ensuring Safety and Compliance

Remote worksites, especially in industries like oil and gas, construction, or mining, have high safety risks. Workers may handle heavy machinery, chemicals, or perform tasks at dangerous heights or depths.

Recruiters must ensure candidates are:

Properly trained
Equipped with safety gear
Compliant with Saudi labor laws and company policies

Failure to do so can lead to workplace accidents or legal problems.

Solution:

Professional manpower agencies prioritize safety certification and training. Yaqoot Manpower ensures every worker undergoes medical screening, skill verification, and safety orientation before deployment, maintaining high compliance standards.

9. Retention and Employee Motivation

Even after recruitment, retaining staff in remote regions is challenging. Workers may request transfers or leave early due to homesickness, harsh conditions, or lack of career growth opportunities.

High turnover rates can cause project delays and increased recruitment costs.

Solution:

To retain employees, employers should:

Offer loyalty bonuses or contract extensions
Provide career training for skill development
Create a positive work environment with fair treatment and communication

Manpower partners like Yaqoot Manpower can monitor worker satisfaction through regular check-ins and on-site visits, ensuring stability in the workforce.

10. Visa and Legal Complications

Saudi Arabia’s recruitment process involves strict visa regulations. For remote-area projects, companies must coordinate with multiple authorities to get approvals, medical clearances, and Iqamas (work permits).

Any mistake in documentation can lead to delays, penalties, or rejection of workers at immigration.

Solution:

A reputable manpower agency handles all legal paperwork efficiently. Yaqoot Manpower Services ensures visa processing, document attestation, and government approvals are completed smoothly — saving employers from administrative headaches.

11. Limited Training Facilities

Remote areas often lack training centers or skill development institutions, making it hard to train workers locally. Employers then depend on agencies to send pre-trained, job-ready candidates from abroad or from Saudi cities.

Without proper training, the risk of accidents and low productivity increases.

Solution:

Yaqoot Manpower collaborates with technical training institutes abroad to prepare candidates for specialized roles before deployment. This ensures that only qualified and skilled professionals reach the job site.

12. Adapting to Vision 2030 Projects

As part of Saudi Vision 2030, the government is focusing on developing new regions like NEOM, Amaala, and The Red Sea Project. These mega-projects require thousands of workers but are located in distant, undeveloped zones.

Recruitment agencies face the challenge of mobilizing large workforces quickly to these evolving areas while maintaining quality and compliance.

Solution:

Agencies like Yaqoot Manpower Services specialize in bulk recruitment for large-scale projects. Through advanced planning, global partnerships, and efficient logistics, they ensure employers meet their staffing goals on time.

13. Language and Communication Barriers

In remote regions, the workforce often includes people from different countries speaking different languages — English, Urdu, Hindi, Tagalog, or Bengali. Miscommunication can lead to errors, safety issues, or conflicts at the worksite.

Solution:

Employers often appoint multilingual supervisors or translators. Yaqoot Manpower Services also recruits experienced site coordinators who can communicate effectively with workers from diverse backgrounds, ensuring smoother operations.

Conclusion

Recruiting in the remote regions of Saudi Arabia is not easy. From harsh environments to logistical challenges and workforce shortages, employers face many obstacles. However, with the right recruitment partner, these challenges can be turned into opportunities.

Yaqoot Manpower Services provides end-to-end manpower recruitment and HR outsourcing solutions for remote projects across Saudi Arabia. With over a decade of experience, a global candidate pool, and a focus on safety and quality, Yaqoot ensures that companies get the right people, in the right place, at the right time.

Looking for Reliable Manpower for Remote Projects in Saudi Arabia?

Partner with Yaqoot Manpower Services in Saudi Arabia — your trusted recruitment expert for oil & gas, construction, logistics, and industrial sectors.

Contact us today to build your workforce with confidence and efficiency.

FAQs About Recruiting in Remote Regions of Saudi Arabia

Q1: Why is recruiting in remote regions of Saudi Arabia difficult?

Because these areas have limited local manpower, harsh working conditions, and logistical challenges that make hiring and retaining employees more complex.

Q2: How do companies attract workers to remote areas?

They offer higher salaries, better living conditions, and other incentives to make the jobs more appealing.

Q3: Can manpower agencies help with remote-area recruitment?

Yes. Agencies like Yaqoot Manpower Services manage sourcing, visa processing, mobilization, and worker welfare for remote projects.

Q4: What industries need remote manpower in Saudi Arabia?

Oil and gas, construction, petrochemicals, logistics, and mining are the main sectors requiring manpower in remote areas.

Q5: How does Yaqoot Manpower ensure worker safety and satisfaction?

Through pre-deployment training, medical screening, on-site supervision, and continuous support throughout the contract period.

03Nov

What Is an Applicant Tracking System and Why It Matters

Hiring the right people is one of the most important jobs for any company. But finding the best talent is not as easy as it looks. Many businesses receive hundreds or even thousands of job applications for one role. Reading each resume, organizing interviews, and tracking every candidate can take a lot of time.

This is where an Applicant Tracking System (ATS) comes in.

Think of an ATS like a smart helper for companies and recruiters. It keeps all job applications in one place, sorts them, and helps hiring teams choose the right people faster and more easily.

In this blog, we will explain what an ATS is, how it works, and why it matters for businesses and job seekers.

What Is an Applicant Tracking System?

An Applicant Tracking System (ATS) is a software tool used by companies to manage the hiring process.

It helps with tasks like:

Collecting job applications
Storing resumes safely
Searching for the right candidates
Scheduling interviews
Communicating with applicants
Tracking the hiring steps from start to finish

Instead of using paper files or a messy email inbox, companies can use an ATS to keep everything organized and easy to find.

In simple words:

ATS is a digital assistant that helps companies hire the right people faster and better.

How Does an ATS Work?

Here is how a typical ATS works step by step:

Step What Happens 1. Job Posting Recruiters post a job online through the ATS. 2. Applications Received The ATS collects resumes from job portals, websites, and email. 3. Resume Screening The ATS scans resumes and selects the best matches. 4. Candidate Shortlist Only qualified candidates move to the next step. 5. Interview Scheduling The ATS helps plan and send interview invites. 6. Hiring Decision The company reviews candidates and selects the best one. 7. Onboarding Some ATS systems help with joining and paperwork.

The ATS makes hiring smooth and fast from start to finish.

Why Applicant Tracking Systems Matter?

An ATS is not just software — it changes the way businesses hire. Here’s why it matters:

1. Saves Time and Effort

Going through hundreds of resumes manually takes many hours. With an ATS, companies can find top candidates in minutes.

It works like a filter — it checks resumes and picks the ones that match the job needs.

2. Helps Companies Find Better Talent

ATS systems can search candidates based on:

Skills
Experience
Education
Keywords

This means companies can focus on the most qualified people and make smarter hiring decisions.

3. Keeps Everything Organized

No more lost resumes or missed emails.

All candidate information stays in one place — neat, safe, and easy to access.

4. Makes Hiring Faster

Speed matters in hiring. Good talent gets hired quickly.

An ATS helps companies move faster so they don’t lose great candidates to competitors.

5. Improves Candidate Experience

A good ATS:

Sends updates to candidates
Makes applying easier
Helps schedule interviews smoothly

Happy candidates means better company reputation.

6. Reduces Hiring Costs

Manual hiring requires extra time, staff, and resources.

With an ATS, companies save money by automating work that used to take days or weeks.

Why ATS Matters for Job Seekers Too?

An ATS is not only important for companies — it also affects job seekers.

Most companies today use ATS. That means resumes go through software before a human sees them.

To pass the ATS screen, job seekers must:

Use simple, clean resume formatting
Add job-related keywords
Avoid fancy designs that the system cannot read

A resume that passes the ATS gets more chances of landing an interview.

Benefits of Using an ATS (Quick Summary)

Benefit Explanation Faster hiring Cuts hours of manual work Better candidate matching Finds the most suitable applicants Improved organization Keeps all hiring data in one system Lower recruitment cost Saves money for the company Better candidate experience Smooth and professional hiring journey Data-driven hiring Makes decisions based on real information

Who Uses Applicant Tracking Systems?

Many organizations use ATS, including:

Recruitment agencies
Large companies
Government offices
Hospitals
Schools and universities
Oil & gas and construction companies
IT & technology firms

Even small businesses today use ATS to find great talent faster.

Popular ATS Examples

Some well-known ATS platforms include:

Workday
Taleo
SAP SuccessFactors
BambooHR
Zoho Recruit
Greenhouse
Workable
SmartRecruiters

These systems are used around the world by modern hiring teams.

Future of ATS: Smarter & More Human

ATS systems are becoming more advanced with:

Artificial intelligence (AI) to match skills better
Automation to speed up tasks
Smart dashboards for better decisions
Chatbots to respond to candidates quickly
Data insights to improve hiring quality

The future of hiring is fast, smart, and human-friendly — and ATS plays a big part in it.

Final Thoughts

In the modern world, hiring the right talent can make or break a company.

An Applicant Tracking System helps businesses hire better, faster, and smarter. It saves time, reduces hiring costs, and ensures the best candidates are found and selected.

Whether you’re a company looking to build a strong team or a job seeker trying to get noticed, understanding ATS is key.

Good hiring is not just about filling jobs — it’s about building success. And ATS helps make that happen.

Need Expert Recruitment Support in Saudi Arabia?

Yaqoot Manpower Services in Saudi Arabia helps companies find skilled talent quickly and professionally.

Whether you need permanent staff, temporary workers, or skilled labor across industries, our team ensures quality hiring and smooth recruitment — powered by modern tools and years of expertise.

Hire the right talent with confidence — contact Yaqoot Manpower Services today.

FAQ’s About Applicant Tracking System

1. What does ATS mean?

ATS stands for Applicant Tracking System, a tool used to manage job applications and hiring.

2. Why do companies use ATS?

To save time, organize resumes, and choose the best candidates quickly.

3. Does ATS reject resumes?

Yes, it can filter out resumes that don’t match job requirements or keywords.

4. Can job seekers beat ATS?

Yes — by using simple formatting and including job-related keywords.

5. Do all companies use ATS?

Most large and many small companies use ATS today. It is becoming the new normal.

27Oct

Labor Outsourcing Trends to Watch in Saudi Arabia

Saudi Arabia is changing fast. The country is building new cities, opening its doors to visitors and businesses, and asking companies to hire more Saudi people. All this means the way companies find and manage workers — especially through labor outsourcing (when a company hires another company to find, pay, or manage workers) — is changing too. Below I explain the big trends to watch, why they matter, and what businesses and workers should know.

1. New Labor Rules and more Worker Freedom

In 2025 Saudi Arabia made major changes to how foreign workers are treated. One important change — often called the end of the “kafala” system — gives many migrant workers more freedom to change jobs and move around without asking their employer first. This is a big deal because it makes hiring and keeping people more flexible for both workers and companies.

Why it matters for outsourcing: companies that use outsourcing partners (staffing firms, payroll providers, or employer-of-record services) will need to update contracts, hiring processes, and compliance checks to match the new rules. Outsourcing partners are in a position to help businesses follow the new law and avoid mistakes.

2. Strong Growth in HR and Payroll Outsourcing

More companies in Saudi Arabia are choosing to outsource HR tasks like payroll, benefits, and employee records. Reports show the HR outsourcing market is growing and is expected to keep expanding as businesses focus on efficiency and compliance. Outsourcing payroll to specialists helps companies avoid payroll mistakes, save time, and keep up with Saudi rules.

Why it matters for outsourcing: expect more demand for payroll services, multi-country payroll solutions, and full HR outsourcing (sometimes called Multi-Process HR Outsourcing). Firms that offer secure digital payroll and local legal expertise will be most valuable.

3. Localization (Saudization) Remains a Top Priority

Saudi Arabia continues to push for more jobs for Saudi nationals — a policy often called Saudization or Nitaqat. The government gives targets and rules that require certain companies and job types to hire Saudi workers first. New targets and more strict rules in certain sectors (like tourism and hospitality) mean companies must plan hiring and training carefully.

Why it matters for outsourcing: outsourcing partners will increasingly offer training, recruitment programs, and apprenticeship schemes aimed at hiring and qualifying Saudi nationals. Outsourcing is not just about bringing in foreign workers anymore — it’s also about building local talent pipelines.

4. Digital HR, AI, and Smarter Recruitment

HR teams are using more technology — Applicant Tracking Systems (ATS), AI matching tools, automated onboarding, and digital payroll platforms. These tools make hiring faster and help match the right candidates to the right jobs. Many staffing and outsourcing firms now offer tech-led services that automate repetitive tasks and improve reporting.

Why it matters for outsourcing: choose outsourcing partners that combine local legal knowledge with modern HR tech. That way you get both compliance and efficiency.

5. Gig Economy and Flexible Work Models are Growing

Short-term work, freelance platforms, delivery services, and on-demand workers have been growing in the Gulf region. The gig economy gives companies flexible staff for busy seasons or special projects, and it gives workers more choice about when and where they work. But governments are still thinking about how to protect gig workers with rules and benefits.

Why it matters for outsourcing: outsourcing firms and employer-of-record (EOR) services that can manage gig workers — handling contracts, taxes, and benefits — will be increasingly useful.

6. Focus on Training and Upskilling

Saudi Arabia wants more high-skilled jobs in tech, clean energy, tourism, healthcare, and finance. That means companies need workers with new skills. Training, vocational programs, and partnerships with local universities are becoming part of the hiring plan. Outsourcing partners often run training programs to fill skill gaps and meet Saudization goals.

Why it matters for outsourcing: Vendors are offering skill-based recruitment and training bundles — hire people and train them at the same time.

7. Compliance, Audits, and Reputational Risk

With labor rules changing and Saudization targets increasing, governments are paying close attention to companies that break the rules. Fines, restrictions, or reputational damage can follow non-compliance. Outsourcing providers help companies stay on the right side of the law by managing documentation, visas, and payroll audits.

Why it matters for outsourcing: compliance expertise is now one of the most valuable services an outsourcing partner can offer.

8. Sector Shifts — more Demand in Tourism, Entertainment, Tech, and Renewables

Because Saudi Arabia is diversifying its economy (think tourism, entertainment, finance, and renewable energy), these sectors need many new workers. That means recruiters and outsourcing firms who know these industries will be in hot demand. The tourism sector, for example, has new rules that reserve certain roles for Saudi nationals — so local hiring and training are needed fast.

Why it matters for outsourcing: specialized staffing for these fast-growing sectors is a major opportunity for agencies and BPOs.

What Businesses Should do Now (Short Checklist)?

Work with local experts who know the new labor rules and Saudization targets.
Move payroll and HR tasks to trusted outsourcing partners with secure digital platforms.
Invest in training programs that build local Saudi talent.
Consider flexible staffing and EOR solutions for short-term projects or gig workers.
Use technology (ATS, automated payroll, compliance dashboards) to reduce mistakes and save time.

How this Affects Workers?

Saudi nationals may see more job opportunities and training programs.
Expat workers may have greater freedom to change jobs and better legal protections after the kafala reforms.
Gig and freelance workers will find more platforms but may still need stronger protections and benefits.

Final Thought

Labor outsourcing in Saudi Arabia is not just about bringing people into jobs — it’s about managing change. The country’s policies, economic diversification, and new technologies are pushing companies to be smarter, fairer, and more local. Outsourcing partners that combine legal compliance, technology, and local hiring programs will lead the way.

Need a Trusted Local Partner to Hire, Train, and Manage Workers in Saudi Arabia?

Yaqoot Manpower Services in Saudi Arabia provides payroll outsourcing, staffing, and compliant recruitment solutions tailored to Vision 2030 goals — so your projects run smoothly and legally.

Contact Yaqoot for a free consultation today.

FAQ’s About Labor Outsourcing Trends

Q1: What is “labor outsourcing”?

A: It means hiring another company to find, hire, pay, or manage workers for you. This can include recruitment, payroll, training, or temporary staffing.

Q2: Will Saudi nationals lose jobs because of outsourcing?

A: No. Saudi rules (Saudization) encourage hiring local people. Outsourcing firms often help companies hire and train Saudi workers to meet those targets.

Q3: Are foreign workers treated differently now?

A: New reforms in 2025 gave many migrant workers more freedom to change jobs and move within the country — which helps workers and employers.

Q4: Is payroll outsourcing safe?

A: When you choose a reputable provider with good technology and local legal knowledge, payroll outsourcing is safe and saves time. Look for providers with strong compliance records.

Q5: How can small businesses benefit from outsourcing?

A: Small businesses save money and time by outsourcing HR tasks like payroll, visa processing, and compliance. They can focus on running their business while experts handle worker administration.

Q6: What skills are in demand?

A: Tech (IT), renewable energy, tourism and hospitality, healthcare, and engineering skills are growing fast. Training and upskilling programs are important.

20Oct

End of Service Benefits in Saudi Arabia: A Complete Guide for Employees and Employers

When working in a foreign country, one of the most important things to understand is what happens when your job ends. In Saudi Arabia, this is called End of Service Benefits (ESB).

These benefits are designed to protect workers and ensure they receive fair compensation after completing their service. Whether you are an employee finishing your contract or an employer handling staff payments, understanding these benefits is essential.

This guide will walk you through what End of Service Benefits are, how they are calculated, who is eligible, and how they are paid.

1. What Are End of Service Benefits in Saudi Arabia?

End of Service Benefits (ESB) are payments made by the employer to the employee when their contract ends.

This is required by the Ministry of Human Resources and Social Development under Saudi Labor Law.

The purpose is to reward employees for their years of service and help them transition after leaving a job. It acts as a financial cushion for the employee and ensures fair treatment.

Employees can receive this benefit in different situations, such as:

End of the employment contract
Resignation
Retirement
Termination (according to labor laws)
Death of the employee (benefit goes to their legal heirs)

2. Who Is Eligible for End of Service Benefits?

Both Saudi nationals and expatriate workers are entitled to End of Service Benefits.

However, the amount may vary depending on:

The type of employment contract (fixed-term or indefinite)
The employee’s length of service
Whether the employee resigned or the employer ended the contract
Reason for termination (e.g., resignation, layoff, or retirement)

Key point: An employee must work for at least two years to qualify for partial ESB when resigning. But if the contract ends normally, ESB applies regardless of years of service.

3. How End of Service Benefits Are Calculated?

The ESB calculation is based on:

The employee’s last basic salary (not including allowances or bonuses)
The total years of service

The basic formula under Saudi labor law is:

Half a month’s salary for each of the first 5 years of service
One full month’s salary for each year after the first 5 years

Example:

Let’s say an employee earns SAR 4,000 per month and worked for 7 years.

First 5 years: 5 × 0.5 × 4,000 = SAR 10,000
Remaining 2 years: 2 × 1 × 4,000 = SAR 8,000
Total ESB = SAR 10,000 + SAR 8,000 = SAR 18,000

4. End of Service Benefits When an Employee Resigns

If the employee resigns, the amount may be reduced depending on how long they have worked:

Less than 2 years: No ESB
2 to 5 years: One-third of the ESB amount
5 to 10 years: Two-thirds of the ESB amount
More than 10 years: Full ESB amount

Example: If the ESB calculated was SAR 18,000 but the employee worked for 7 years and resigned — they will receive two-thirds of that amount = SAR 12,000.

5. End of Service Benefits When the Employer Terminates

If the employer ends the contract (not for a legal or disciplinary reason), the employee is entitled to full ESB:

Full ESB for the entire service period
Notice period pay (if applicable)
Other unpaid dues (like unused vacation or overtime)

6. Special Cases and Exceptions

There are a few special conditions under Saudi law where ESB may differ:

Termination for cause: If an employee is terminated for serious misconduct (as defined by labor law), ESB may not be paid.
Death or illness: If the employee dies or becomes permanently disabled, full ESB must be paid to them or their legal heirs.
Female employees: If a female employee resigns within 6 months of marriage or 3 months after giving birth, she is entitled to full ESB.
End of fixed-term contract: If a contract ends naturally after the term, full ESB applies.

7. How Employers Should Pay End of Service Benefits?

Employers must:

Calculate the ESB according to labor law.
Settle all payments (including unpaid salary, leave balance, and ESB) within a specific time after the employee’s last working day.
Provide a final settlement document showing the breakdown.
Transfer the amount to the employee through official payment channels.

Failure to pay ESB on time can lead to legal action or penalties under Saudi labor regulations.

8. How Employees Can Claim Their End of Service Benefits?

Employees can claim their ESB in the following ways:

Through the company’s HR or payroll department
By filing a complaint with the Ministry of Human Resources and Social Development if the employer fails to pay
Using the official Qiwa platform or labor office portal

Having a written contract, payslips, and proof of service makes the process smoother.

9. Recent Updates and Digital Services

Saudi Arabia has introduced digital platforms to make ESB processing easier and more transparent.

Employees and employers can now:

View ESB entitlements online
Submit and approve settlements digitally
Track payment status
Raise disputes through official channels

This improves trust and ensures fair treatment for both sides.

10. Why Understanding ESB Matters?

For employees, ESB is a financial right — it can help support them when they leave their job.

For employers, understanding and complying with ESB laws builds a strong company reputation, avoids legal troubles, and creates a better relationship with staff.

Knowing these rules clearly avoids conflicts and ensures smooth offboarding for everyone.

Summary of End of Service Benefits in Saudi Arabia

Length of Service	Resignation Entitlement	Termination Entitlement
Less than 2 years	No ESB	Full ESB
2 to 5 years	1/3 of ESB	Full ESB
5 to 10 years	2/3 of ESB	Full ESB
More than 10 years	Full ESB	Full ESB

Tip: Always keep a copy of your employment contract, payslips, and service letters. These documents are important if there is ever a dispute over your benefits.

Looking for Reliable Manpower Solutions or HR Support in Saudi Arabia?

Yaqoot Manpower Services helps businesses handle recruitment, payroll, and end-of-service settlements with ease.

Contact Yaqoot Manpower Services today to make employee management simple and compliant.

FAQ’s About End of Service Benefits in Saudi Arabia

1. What is End of Service Benefit (ESB) in Saudi Arabia?

ESB is a payment made by employers to employees when their employment ends, based on the length of service and salary.

2. How is ESB calculated?

It’s calculated using the last basic salary: half a month’s salary for each of the first five years, and one month’s salary for each additional year.

3. Do I get ESB if I resign?

Yes, but the amount depends on how long you have worked. You get one-third after 2 years, two-thirds after 5 years, and the full amount after 10 years.

4. How can I claim ESB if my employer refuses to pay?

You can file a complaint with the Ministry of Human Resources and Social Development or through the Qiwa platform.

5. Is ESB different for foreign workers?

No, foreign workers are entitled to ESB just like Saudi employees, following the same labor law rules.

13Oct

Wage Protection System (WPS) in Saudi Arabia: Everything Employers and Workers Should Know

When someone works for a company, getting their salary on time and in the right amount is one of the most important things. To make sure this happens for every worker in the Kingdom, the Wage Protection System (WPS) was introduced.

This system is designed to make salary payments safe, fair, and transparent for both employers and employees. Whether you’re an employee working hard every day or an employer who runs a business in Saudi Arabia, understanding how WPS works is essential.

In this blog, we’ll explain what the Wage Protection System is, how it works, why it matters, and what businesses need to do to follow it.

What Is the Wage Protection System (WPS)?

The Wage Protection System (WPS) is an electronic salary transfer system developed by the Ministry of Human Resources and Social Development in partnership with the Saudi Arabian Monetary Authority.

This system ensures that salaries are paid to workers through authorized financial institutions in Saudi Arabia. Instead of paying cash or using unclear methods, companies must pay salaries through official bank transfers.

This way, every salary payment is documented and traceable — protecting both employees and employers.

Why WPS Was Introduced?

Before WPS, some workers faced delays or even missed salaries. Some companies didn’t provide clear proof of payment, which caused many problems for employees, especially low-wage workers.

The Wage Protection System was introduced to:

Make sure all workers receive their salaries on time.
Protect employees from unpaid wages.
Help employers build a trustworthy reputation.
Improve transparency and reduce disputes.
Support the Kingdom’s labor reforms and modernization goals under Saudi Vision 2030.

How the Wage Protection System Works?

The WPS follows a clear process that makes salary payments smooth and trackable.

Company Registers in WPS Every business must register with the Ministry’s WPS system and open a payroll account with an authorized bank.
Employee Data Submission The company uploads employee information such as name, ID, salary amount, and payment date.
Salary Transfer Salaries are transferred directly to the employees’ bank accounts through the WPS.
Ministry Monitoring The system automatically reports payments to the Ministry, allowing it to track whether salaries were paid correctly and on time.
Action on Violations If salaries are delayed, underpaid, or unpaid, the Ministry can take action, including fines or suspension of company services.

This system gives both sides — employers and employees — a clear record of salary transactions.

Key Rules and Requirements for Employers

To comply with WPS, companies in Saudi Arabia must follow a few important rules:

Salaries must be transferred through banks approved by the Saudi government.
Payments must match the agreed salary stated in the employment contract.
Salaries must be paid on time each month.
Companies must submit salary information to the WPS system regularly.
Any deductions or changes must be clearly documented and explained.
Failure to comply can lead to fines, penalties, or even suspension of services.

Important: Companies of all sizes — from large corporations to small and medium businesses — are required to comply with WPS.

Benefits of WPS for Employees

The Wage Protection System was designed mainly to protect employees. Here’s how it helps workers:

On-time salary payments — no more waiting or delays.
Clear proof of payment — salaries are transferred through banks and recorded.
Legal protection — if employers don’t pay, employees can raise complaints.
Transparency — employees know exactly when and how much they’re paid.
Fair treatment — reduces the risk of unpaid or reduced wages.

This gives workers more confidence and security in their jobs.

Benefits of WPS for Employers

While WPS protects employees, it also benefits companies in many ways:

Builds trust with employees and authorities.
Simplifies payroll management through a digital system.
Reduces disputes over unpaid or delayed salaries.
Provides proof of compliance for legal and administrative purposes.
Supports business growth by maintaining a good reputation.

Complying with WPS also makes it easier for companies to renew work permits, hire foreign workers, and avoid fines.

Penalties for Non-Compliance

The Ministry of Human Resources and Social Development takes salary protection very seriously. Companies that fail to comply with WPS may face:

Financial penalties and fines.
Suspension of some or all Ministry services.
Ban on new work visas.
Risk of legal action and reputational damage.

Companies are encouraged to stay fully compliant to avoid these penalties and maintain smooth operations.

WPS and Vision 2030

Saudi Arabia’s Vision 2030 aims to build a strong, transparent, and modern economy. The Wage Protection System is part of this larger plan to make the Kingdom an attractive and fair place to work.

It improves labor rights.
Increases investor confidence.
Strengthens the overall business environment.

This system not only benefits employees and employers but also supports the entire economy.

Steps for Businesses to Implement WPS Successfully

For companies new to the system, here’s a simple roadmap to follow:

Register with the Ministry’s WPS portal.
Open a payroll account with an approved Saudi bank.
Upload employee details accurately to the system.
Ensure monthly salary transfers are made through the system.
Keep records updated — any change in salary or employment must be documented.
Review monthly reports to catch and fix any issues quickly.
Train your HR and payroll teams to ensure smooth compliance.

Employee Rights Under WPS

Employees in Saudi Arabia have clear rights under the Wage Protection System:

The right to receive salaries in full and on time.
The right to file a complaint if payments are delayed.
The right to know how much they are paid and when.
The right to have payments made through official channels.

If employees face problems, they can contact the Ministry through its official complaint channels.

How WPS Improves the Labor Market?

The WPS does more than just track salaries. It creates a healthier and more stable labor market by:

Reducing illegal or unfair practices.
Building trust between employers and employees.
Encouraging foreign investment by showing labor transparency.
Supporting workers’ welfare.
Creating accurate data for better labor planning.

Future of WPS in Saudi Arabia

Saudi Arabia continues to enhance the WPS with digital technologies. The system is expected to become even more efficient with:

Real-time monitoring of salary transfers.
Stricter enforcement for delayed payments.
Easier reporting systems for employees.
Greater integration with other labor platforms.

This makes the Kingdom one of the leading countries in protecting labor rights in the region.

Final Words

The Wage Protection System in Saudi Arabia plays a crucial role in building a fair and transparent work environment. It protects workers, supports businesses, and strengthens the economy.

Whether you’re a company owner or an employee, understanding WPS ensures smoother operations and better workplace trust.

Partner with Yaqoot Manpower Services

If your company needs support in managing payroll, salary transfers, or full WPS compliance, Yaqoot Manpower Services can help.

Expert payroll outsourcing
Smooth WPS compliance
Transparent and reliable manpower solutions

Let Yaqoot Manpower Services take care of your payroll, so you can focus on growing your business.

FAQ’s About Wage Protection System in Saudi Arabia

1. What is the Wage Protection System in Saudi Arabia?

The Wage Protection System (WPS) is an electronic system created by the Saudi government to ensure workers receive their salaries through banks on time and in full.

2. Is WPS mandatory for all companies?

Yes. All companies in Saudi Arabia, regardless of size, are required to comply with WPS regulations.

3. How does WPS protect employees?

It ensures that salaries are paid through official bank channels and gives workers proof of payment, making it easier to resolve any issues.

4. What happens if a company doesn’t follow WPS rules?

The company can face fines, service suspension, visa restrictions, or legal action.

5. Can small businesses also register for WPS?

Yes. The system is designed for companies of all sizes — from small businesses to large enterprises.

06Oct

Key Legal Considerations in Saudi Recruitment

Recruiting employees in Saudi Arabia is not as simple as posting a job and hiring the first qualified person. Every business that wants to recruit—whether local or international—must follow specific labor laws and government regulations. These laws are designed to protect both employers and employees, ensuring that every recruitment process is fair, transparent, and compliant with Saudi labor standards.

In this blog, we’ll explore the key legal considerations in Saudi recruitment—from labor laws and work visas to Saudization and employment contracts—so you can understand what makes hiring in Saudi Arabia both unique and highly regulated.

1. Understanding the Saudi Labor Law

The Saudi Labor Law, governed by the Ministry of Human Resources and Social Development (MHRSD), is the backbone of recruitment in the Kingdom. It clearly outlines the rights, duties, and responsibilities of both employers and employees.

Some of its major areas include:

Working hours and rest periods
Wage payment and deductions
Probation periods
Annual leave and public holidays
End-of-service benefits

Employers must make sure their hiring practices fully comply with this law. Failure to do so can result in fines, penalties, or even suspension of business licenses.

For instance, the maximum working hours are 48 hours per week (8 hours per day), and employees are entitled to at least 21 days of annual leave after one year of service.

2. The Role of the Ministry of Human Resources and Social Development (MHRSD)

The MHRSD plays a central role in regulating recruitment and employment in Saudi Arabia. Every employer must be registered with the ministry and use its digital platforms—like Qiwa and Mudad—to manage employee contracts, wages, and compliance records.

These platforms make it easier for employers to stay legally compliant by automating many HR processes such as:

Recording employment contracts electronically
Verifying Saudization percentages
Ensuring payment protection through the Wage Protection System (WPS)

By using these tools, companies can avoid administrative violations and streamline their recruitment process.

3. Saudization (Nitaqat Program)

One of the most important legal aspects of recruitment in Saudi Arabia is Saudization, also known as the Nitaqat Program.

This government initiative requires private companies to hire a certain percentage of Saudi nationals. The percentage depends on the company’s size, sector, and classification.

For example:

A construction company might be required to hire at least 15–20% Saudi nationals.
A financial services company may have to maintain a higher rate of local employment.

Companies that fail to meet these targets face restrictions such as being unable to renew foreign employee visas or apply for new ones. On the other hand, companies that meet or exceed their Saudization targets receive privileges, including faster work permit processing.

4. Work Visas and Residency (Iqama) Requirements

Foreign recruitment in Saudi Arabia involves strict visa and residency procedures. Employers must first obtain authorization from the Ministry of Foreign Affairs and MHRSD to bring workers into the Kingdom.

Here’s how the process typically works:

Work Visa Approval – The employer submits a request for a foreign worker.
Medical and Background Checks – The employee undergoes tests before entry.
Iqama Issuance – Once in Saudi Arabia, the employer must apply for the employee’s Iqama (residence permit) within 90 days.

Employers are legally responsible for renewing Iqamas on time and paying related fees. Any delay can result in fines or deportation of the worker.

It’s also important to note that employees cannot change jobs freely; they need a transfer approval through the Qiwa platform unless they meet certain conditions.

5. Employment Contracts and Documentation

Saudi labor law mandates written employment contracts for all employees, whether Saudi or foreign. These contracts must be in Arabic, even if translated into another language.

A standard contract should include:

Job title and duties
Salary and benefits
Working hours and leave entitlements
Contract duration (if fixed-term)
Termination conditions

Both parties must sign the contract, and a copy should be uploaded to the Qiwa platform.

The law also specifies that if there is no written contract, the employee is presumed to be hired on a permanent basis, which could lead to legal complications for employers.

6. Wage Protection System (WPS)

Saudi Arabia has implemented the Wage Protection System (WPS) to ensure that employees are paid fairly and on time. Under this system, companies must pay salaries electronically through Saudi banks so that the Ministry can monitor compliance.

Employers who fail to pay wages on time or underpay their employees can face severe penalties, including suspension of new work visas.

This system protects both Saudi and foreign workers, creating trust and transparency between employees and employers.

7. Occupational Safety and Health Regulations

Saudi Arabia takes workplace safety very seriously. Employers must provide a safe and healthy environment for all workers. This includes proper training, protective gear, and emergency procedures.

For industries like construction, oil and gas, and manufacturing, compliance with Occupational Safety and Health (OSH) standards is mandatory. Regular inspections are carried out, and companies that violate these standards can face fines or even shutdowns.

8. End-of-Service Benefits and Termination

When an employee leaves a company, they are entitled to end-of-service benefits (ESB) as per Article 84 of the Saudi Labor Law.

The ESB is calculated as follows:

Half a month’s salary for each of the first five years of service.
One month’s salary for each additional year after that.

This benefit applies whether the employee resigns or is terminated, though the amount may vary based on the circumstances of departure.

Termination laws in Saudi Arabia are also very specific. Employers must provide valid reasons and notice before ending a contract, except in cases of serious misconduct.

9. Recruitment Agency Licensing and Compliance

For recruitment agencies operating in or supplying manpower to Saudi Arabia, licensing is essential. Agencies must be registered and approved by the MHRSD, both in Saudi Arabia and in the worker’s home country.

Unlicensed recruitment or illegal labor brokerage can lead to heavy fines, imprisonment, or a permanent ban from operating in the Kingdom.

Companies should always work with approved recruitment agencies to ensure transparency and legal compliance during the hiring process.

10. The Future of Recruitment in Saudi Arabia

Saudi Arabia’s Vision 2030 aims to create a vibrant job market, empowering both Saudi citizens and skilled foreign professionals. The government continues to modernize its recruitment and labor systems by introducing digital solutions and clearer labor reforms.

For employers, staying updated on these laws is not just about compliance—it’s about building a sustainable workforce aligned with the Kingdom’s economic growth goals.

Conclusion

Recruiting in Saudi Arabia requires more than just finding the right talent—it requires understanding and following the country’s legal and regulatory framework. From Saudization and labor contracts to WPS and visa compliance, every step in the recruitment process must meet government standards.

By ensuring legal compliance, companies can avoid costly penalties and create a positive, professional working environment for both Saudi and foreign employees.

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Yaqoot Manpower Services has over a decade of experience providing fully compliant manpower and HR outsourcing solutions. From labor supply to payroll management, we ensure your hiring process is smooth, transparent, and 100% legal.

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FAQ’s About Key Legal Considerations in Saudi Recruitment

1. What is the Saudization (Nitaqat) Program?

Saudization is a government policy that requires private companies to hire a certain percentage of Saudi nationals, helping reduce unemployment among citizens.

2. Are written employment contracts mandatory in Saudi Arabia?

Yes. All employees must have a written Arabic contract stating job roles, salary, and other employment conditions.

3. What is the Wage Protection System (WPS)?

The WPS ensures employees receive their salaries on time through electronic payments monitored by the government.

4. Who is responsible for renewing an employee’s Iqama?

The employer is fully responsible for renewing the employee’s Iqama (residence permit) before it expires.

5. What are end-of-service benefits (ESB)?

ESB is a financial benefit paid to employees when they leave the company, calculated based on their years of service and final salary.

22Sep

How to Get a Commercial License in Saudi Arabia for Your Business

Starting a business in Saudi Arabia can be one of the smartest decisions you’ll ever make. The Kingdom has become one of the world’s fastest-growing business hubs, especially with its Vision 2030 plan that welcomes international investors, entrepreneurs, and companies. But before you can open your shop, office, or company doors, there’s one important step you must take: getting a commercial license in Saudi Arabia.

This license is like your official permission slip to run a business legally. Without it, your business won’t be recognized by the Saudi authorities, and you could face penalties. The good news? If you follow the right steps, the process can be straightforward.

In this article, we’ll explain everything in simple words: what a commercial license is, why it’s important, the types of licenses available, and a step-by-step guide to getting one for your business in Saudi Arabia.

What is a Commercial License?

A commercial license is a document issued by the Saudi Ministry of Commerce that gives you the legal right to start and operate a business in the Kingdom. It shows that your business is registered with the government, and you’re authorized to provide products or services under Saudi law.

Think of it as your “business passport.” Just like you need a passport to travel internationally, you need a commercial license to operate your business officially in Saudi Arabia.

Why Do You Need a Commercial License in Saudi Arabia?

You might be wondering, “Why can’t I just start my business without it?” Here are a few important reasons:

Legal Protection – With a license, your business is legally recognized and protected.
Banking Needs – You can open a business bank account in Saudi Arabia only if you have a license.
Contracts and Deals – Companies and government agencies will only work with licensed businesses.
Reputation and Trust – Customers trust businesses that are registered and licensed.
Avoiding Penalties – Running an unlicensed business can result in heavy fines or even closure.

Types of Commercial Licenses in Saudi Arabia

Not all businesses are the same, which is why Saudi Arabia offers different types of licenses. Here are the main ones:

Commercial License – For businesses involved in buying, selling, or trading products.
Industrial License – For companies involved in manufacturing or production.
Professional License – For individuals or firms offering professional services (like consulting, IT, engineering, legal, etc.).
Tourism License – For companies in the travel, hospitality, or tourism sector.
Agricultural License – For farming and agricultural-related activities.

Choosing the right license depends on your business activity. For example, if you’re opening a trading company, you’ll need a commercial license. If you’re starting a construction company, an industrial license might be required.

Step-by-Step Guide: How to Get a Commercial License in Saudi Arabia

Here’s a simple roadmap to getting your commercial license in Saudi Arabia.

Step 1: Choose Your Business Activity

The first step is to clearly define what your business will do. Will you trade goods, provide services, or manufacture products? Your chosen activity will decide the type of license you need.

Step 2: Decide on Business Structure

Next, you must choose your business structure. Common options include:

Limited Liability Company (LLC)
Joint Stock Company (JSC)
Branch of a Foreign Company
Sole Proprietorship

Most foreign investors prefer LLCs because they are flexible and relatively easy to set up.

Step 3: Reserve a Business Name

You need a unique trade name for your business. This can be reserved online through the Ministry of Commerce’s website. Make sure the name matches your business activity and follows Saudi naming rules.

Step 4: Submit Application to the Ministry of Commerce

Once your name is reserved, you must submit your commercial license application through the Ministry of Commerce. You’ll need to provide:

Passport copies of shareholders
Company Articles of Association
Memorandum of Association
Proof of address in Saudi Arabia
Power of Attorney (if someone else applies on your behalf)

Step 5: Get Approval from the Saudi Arabian General Investment Authority (SAGIA)

If you are a foreign investor, you also need approval from SAGIA (now part of the Ministry of Investment). This ensures your business activity aligns with the country’s goals and laws.

Step 6: Pay the Fees

There are licensing fees depending on your business type and size. Make sure to pay these fees through the official channels.

Step 7: Receive Your License

After reviewing your documents and payment, the Ministry of Commerce will issue your commercial license. Congratulations—you’re now legally allowed to run your business in Saudi Arabia!

How Long Does It Take to Get a Commercial License in Saudi Arabia?

On average, it can take anywhere between 2 to 4 weeks if all documents are in order. However, delays can happen if paperwork is missing or approvals are pending. That’s why it’s always a good idea to work with experts who understand the process.

Tips for a Smooth Licensing Process

Hire a Local Consultant – Local experts can guide you through Saudi laws and save time.
Prepare All Documents Early – Missing documents are the main reason for delays.
Stay Updated with Rules – Saudi business laws can change, so keep yourself updated.
Choose the Right License Type – Applying for the wrong license will slow down the process.
Be Patient – Bureaucratic processes can take time, but staying organized helps.

Final Thoughts

Getting a commercial license in Saudi Arabia may sound complicated, but once you break it down into simple steps, it becomes much easier. With the right preparation, proper guidance, and complete documents, you can smoothly start your business journey in the Kingdom.

Saudi Arabia offers a world of opportunities for investors and entrepreneurs. Whether you want to open a trading company, a service firm, or a manufacturing unit, having a commercial license is your first step toward success.

Ready to Grow your Business in Saudi Arabia?

Yaqoot Manpower Services is here to support you with manpower recruitment, HR solutions, and business setup guidance. Let us help you take the first step with confidence!

FAQs About Obtaining a Commercial License in Saudi Arabia

1. Can foreigners get a commercial license in Saudi Arabia?

Yes, foreigners can apply, but they must get approval from the Ministry of Investment (formerly SAGIA).

2. How much does it cost to get a commercial license?

The cost depends on the type of business and license, but it usually ranges between SAR 2,000 to SAR 10,000.

3. Do I need a local partner to start a business in Saudi Arabia?

In some sectors, yes. However, Saudi Arabia has relaxed laws to allow 100% foreign ownership in many industries.

4. Can I apply for a license online?

Yes, most steps like name reservation and application submission can be done online through the Ministry of Commerce website.

5. How long is a commercial license valid?

Typically, a commercial license is valid for one year and must be renewed annually.

19Sep

How Executive Search Differs from Regular Recruitment

Finding the right people for a company is one of the most important jobs in business. Every organization, whether small or big, needs talented employees to grow. But not all hiring is the same. Some jobs can be filled quickly through regular recruitment, while others, especially senior-level positions, need a deeper, more strategic approach called executive search.

In this article, we’ll break down how executive search differs from regular recruitment. We’ll explain it in simple terms so it’s easy to understand, while still keeping it professional and detailed.

What Is Regular Recruitment?

Regular recruitment is the process most companies use to hire employees for everyday roles. These roles could be anything from sales staff, office assistants, engineers, customer service representatives, or other mid-level professionals.

Here’s how regular recruitment usually works:

Job Posting – A company advertises a job opening on job boards, social media, or its website.
Applications – Interested candidates send their resumes or apply online.
Screening – Recruiters review applications, shortlist candidates, and call them for interviews.
Hiring – The company selects the best fit and makes an offer.

Regular recruitment is usually about filling positions quickly and efficiently. The focus is on finding good candidates who have the required skills and can join soon.

What Is Executive Search?

Executive search, sometimes called headhunting, is different. It is a special service used when companies want to hire top-level leaders, such as:

Chief Executive Officer (CEO)
Chief Financial Officer (CFO)
Chief Operating Officer (COO)
Directors, VPs, or Senior Managers

These roles are not easy to fill because they require:

Years of experience
Strong leadership skills
A proven track record of success
Industry knowledge and expertise

Instead of posting a job and waiting for applications, executive search firms proactively search for the right candidate. This means they directly approach highly qualified professionals, even those who may not be looking for a job.

Key Differences Between Executive Search and Regular Recruitment

Let’s compare the two in detail:

1. Level of Positions

Regular Recruitment: Focuses on entry-level to mid-level roles.
Executive Search: Targets senior executives and leadership positions.

2. Method of Finding Candidates

Regular Recruitment: Relies on job ads and applicants coming forward.
Executive Search: Uses headhunting – recruiters reach out directly to top professionals, even passive candidates who are not actively job hunting.

3. Timeframe

Regular Recruitment: Usually faster; positions can be filled in a few weeks.
Executive Search: Takes longer, sometimes months, because it requires careful research, assessment, and negotiation.

4. Candidate Pool

Regular Recruitment: Pulls from a wide pool of job seekers.
Executive Search: Focuses on a smaller, highly qualified, and selective group of professionals.

5. Assessment Process

Regular Recruitment: Basic interviews and skill tests.
Executive Search: Involves in-depth evaluations, background checks, leadership assessments, and sometimes personality tests.

6. Confidentiality

Regular Recruitment: Open and public process with job postings.
Executive Search: Often confidential, especially when replacing a current leader without making it public.

7. Role of Recruiters

Regular Recruitment: Recruiters act more like facilitators, connecting companies with job seekers.
Executive Search Consultants: Act as strategic advisors, understanding the company’s long-term goals and finding leaders who can shape its future.

Why Executive Search Matters?

Hiring a senior executive is one of the most important decisions for any company. A great leader can take the business to new heights, while the wrong hire can cause major setbacks. That’s why executive search is critical.

Here’s why companies use executive search:

Access to top talent that may not apply to job postings.
Confidentiality when making sensitive hires.
Expertise in assessing leadership qualities.
Better cultural fit since consultants study the company deeply before suggesting candidates.

When Should a Company Use Regular Recruitment vs. Executive Search?

Use Regular Recruitment When:
- Filling roles quickly (e.g., customer service, sales, technicians).
- Hiring for positions with many available candidates.
- Budget is limited.
Use Executive Search When:
- Hiring for C-level executives or senior managers.
- Looking for unique skill sets that are hard to find.
- Confidentiality is required.
- Company growth depends on strong leadership.

Real-Life Example

Imagine a retail company in Saudi Arabia needs 50 new sales representatives for their stores. They would use regular recruitment because these roles are entry-level and need to be filled quickly.

But if the same company wants a new CEO to expand business into global markets, they will need an executive search firm. The process will involve market research, reaching out to CEOs from other companies, evaluating leadership abilities, and finding the best possible match.

Final Thoughts

Both executive search and regular recruitment are important. Regular recruitment helps companies fill everyday positions, while executive search is a powerful tool for finding leaders who shape the future of an organization.

For businesses in Saudi Arabia, especially in industries like oil & gas, construction, finance, healthcare, and IT, choosing the right approach makes all the difference.

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Yaqoot Manpower Services in Saudi Arabia specializes in both executive search and manpower recruitment. Let us help you build a team that drives success.

FAQ’s About Executive Search Vs. Regular Recruitment

Q1. What is the main difference between executive search and recruitment?

Executive search focuses on senior-level leadership positions, while recruitment fills entry to mid-level roles.

Q2. Is executive search more expensive than regular recruitment?

Yes, executive search requires more research, assessment, and confidentiality, making it costlier than regular recruitment.

Q3. Can small businesses use executive search?

Yes, small and growing businesses may also use executive search when hiring leaders who can guide their expansion.

Q4. How long does executive search take?

It can take 2–6 months depending on the role and industry.

Q5. Do executive search firms only hire for CEOs?

No, they also hire for other senior roles such as CFOs, COOs, Directors, and Vice Presidents.

18Sep

Workforce Planning: Integrating Manpower Supply into HR Strategy in Saudi Arabia

When it comes to the success of a business, one of the most important assets a company has is its people. No matter how advanced the technology, or how big the investment, a business cannot succeed without the right team. That’s where workforce planning comes in. It helps companies prepare for their current and future staffing needs.

In Saudi Arabia, where industries like oil & gas, construction, healthcare, IT, hospitality, and logistics are booming, workforce planning has become a top priority. At the heart of this process is manpower supply, which plays a crucial role in ensuring companies have access to the right skills, at the right time, and at the right cost.

This blog explores what workforce planning means, why manpower supply is so important, and how integrating manpower supply into HR strategy can drive success for Saudi businesses.

What is Workforce Planning?

Workforce planning is the process of analyzing and forecasting the talent needs of a company. It ensures that a business has enough people, with the right skills, to achieve both short-term and long-term goals.

In simple words: Workforce planning = having the right number of skilled workers, in the right place, at the right time.

For example, if a construction company in Riyadh knows it will be starting a mega project next year, it can start planning today by securing engineers, welders, and skilled labor through manpower supply agencies. This way, the project won’t face delays due to worker shortages.

Why Workforce Planning Matters in Saudi Arabia?

Saudi Arabia is going through one of the biggest transformations in its history under Vision 2030. From building futuristic cities like NEOM, to expanding healthcare and renewable energy sectors, the country is creating thousands of new job opportunities.

But with rapid growth comes challenges:

High demand for skilled labor across multiple industries
Talent shortages in specialized fields like healthcare, IT, and engineering
Changing labor laws and nationalization efforts (Saudization)
Need for workforce flexibility to manage seasonal or project-based work

That’s why effective workforce planning, supported by manpower supply, has become critical for Saudi businesses.

The Role of Manpower Supply in Workforce Planning

Manpower supply agencies provide businesses with access to skilled, semi-skilled, and unskilled workers. Instead of spending months on recruitment, companies can quickly get the staff they need.

Here’s how manpower supply fits into workforce planning in Saudi Arabia:

1. Meeting Sudden Demand

Businesses often face unexpected needs, such as urgent projects, seasonal peaks, or replacing staff who leave suddenly. Manpower suppliers can quickly fill these gaps.

2. Reducing Recruitment Costs

Recruitment can be expensive and time-consuming. By outsourcing to manpower agencies, companies save on advertising, interviews, training, and onboarding.

3. Access to Specialized Skills

Industries like oil & gas or healthcare require workers with special certifications. Manpower suppliers maintain a ready pool of qualified professionals who can step in immediately.

4. Flexibility for Short-Term and Long-Term Needs

Not all roles require permanent staff. Manpower supply allows businesses to hire for temporary, contract-based, or project-specific roles.

5. Supporting Saudization

Manpower suppliers can also help companies meet Saudization requirements by sourcing qualified Saudi nationals for specific roles.

Integrating Manpower Supply into HR Strategy

For manpower supply to truly support workforce planning, it must be integrated into a company’s HR strategy. Here’s how Saudi businesses can achieve that:

Step 1: Align with Business Goals

HR teams must understand the company’s growth plans. For example, if a logistics company in Jeddah plans to expand its fleet, the HR strategy should include manpower supply partnerships to provide trained drivers and warehouse staff.

Step 2: Forecast Talent Needs

HR should work with department heads to forecast the skills and roles needed in the future. Once identified, manpower suppliers can prepare suitable candidates in advance.

Step 3: Build a Talent Pool

Manpower supply agencies help create a “talent pool” – a ready list of candidates. This ensures businesses don’t start from scratch every time they need staff.

Step 4: Streamline Onboarding

By working closely with manpower agencies, HR teams can ensure new workers are trained and onboarded quickly. This reduces downtime and keeps projects on track.

Step 5: Monitor and Adjust

Workforce planning is not a one-time process. HR teams should regularly review manpower supply arrangements, check performance, and adjust according to changing business needs.

Benefits of Integrating Manpower Supply in Saudi Arabia

When manpower supply is part of HR strategy, Saudi companies gain several advantages:

Cost Savings: Lower recruitment and training costs
Faster Hiring: Quick access to ready-to-work staff
Scalability: Ability to expand or reduce workforce as needed
Compliance: Assurance that workers meet labor laws and Saudization rules
Productivity: Reduced downtime due to unfilled positions

Final Thoughts

In Saudi Arabia’s fast-growing economy, workforce planning is no longer optional — it’s essential. By integrating manpower supply into HR strategy, companies can stay ahead of challenges, reduce costs, and maintain a steady flow of skilled workers.

Manpower supply is not just about filling positions; it’s about building a sustainable workforce that aligns with long-term business goals. For companies in Saudi Arabia, this approach is the “secret ingredient” to staying competitive in 2025 and beyond.

Partner with Yaqoot Manpower Services in Saudi Arabia

At Yaqoot Manpower Services, we help businesses find the right people, at the right time. From construction and oil & gas to healthcare and hospitality, our manpower solutions are tailored to meet your workforce needs. Trust us to power your growth with reliable, compliant, and skilled staffing solutions.

FAQs About Workforce Planning

1. What is manpower supply in Saudi Arabia?

Manpower supply is when a company hires workers through a third-party agency instead of recruiting directly. It helps businesses save time and get qualified staff quickly.

2. How does manpower supply support Saudization?

Agencies can provide both Saudi nationals and expatriates, helping businesses balance Saudization requirements with skilled foreign workers.

3. Is manpower supply cost-effective?

Yes. It reduces hiring costs, training expenses, and helps avoid project delays caused by staff shortages.

4. Which industries in Saudi Arabia use manpower supply the most?

Construction, oil & gas, healthcare, hospitality, logistics, and IT are among the top industries relying on manpower supply.

5. Can manpower suppliers provide both temporary and permanent staff?

Yes. Agencies in Saudi Arabia can provide temporary, contract-based, or permanent staffing depending on business needs.

15Sep

What is an EOR in Saudi Arabia? Everything You Need to Know

Expanding a business into Saudi Arabia is a big opportunity. With its growing economy, strong infrastructure, and ambitious Vision 2030 plan, the Kingdom is attracting companies from all over the world. But setting up a local entity and handling all the legal, HR, and compliance work can be complex and time-consuming. That’s where an Employer of Record (EOR) in Saudi Arabia comes in.

In this article, we’ll break down exactly what an EOR is, how it works, why businesses use it, and the benefits it offers.

What is an EOR in Saudi Arabia?

An Employer of Record (EOR) is a company that legally employs workers on behalf of another business. This means that while you, as the client company, manage the day-to-day work of the employees, the EOR takes care of all the legal and administrative responsibilities related to employment.

In Saudi Arabia, this includes:

Preparing employment contracts in line with Saudi labor laws.
Handling payroll and salary payments.
Managing social insurance and tax obligations.
Taking care of work permits and visas for foreign employees.
Ensuring full compliance with Saudi employment regulations.

So, in short: the EOR becomes the legal employer, but you keep control over the employees’ tasks, roles, and performance.

Why Do Companies Use an EOR in Saudi Arabia?

Saudi Arabia is a promising but highly regulated market. For companies without a local presence, compliance can be a major challenge. An EOR helps overcome these obstacles by offering a ready-made, compliant solution.

Businesses typically use an EOR in situations like these:

Testing the market – Companies want to explore opportunities in Saudi Arabia before investing in a local entity.
Hiring quickly – Organizations need to onboard staff fast without waiting months to set up a legal entity.
Managing foreign talent – Firms need help with visas, sponsorship, and work permits for expatriate employees.
Avoiding compliance risks – Employers don’t want to risk fines or legal trouble from misunderstanding Saudi labor laws.
Focusing on business growth – Instead of spending time on HR paperwork, businesses want to focus on core operations.

How Does an EOR in Saudi Arabia Work?

The process of working with an EOR is straightforward:

Agreement – You sign a contract with the EOR, outlining the services and responsibilities.
Employee hiring – Either you choose your candidate, or the EOR helps you recruit. The EOR becomes the legal employer.
Onboarding – The EOR prepares compliant contracts and handles visa processing if needed.
Payroll & compliance – Every month, the EOR manages salary payments, taxes, and contributions.
Employee management – While the EOR takes care of HR and compliance, you manage the employee’s daily tasks and performance.

Key Benefits of Using an EOR in Saudi Arabia

1. Faster Market Entry

You don’t need to establish a local entity, which can take months. With an EOR, you can start operating in weeks.

2. Full Legal Compliance

Saudi labor laws and regulations are strict and constantly updated. An EOR ensures you stay compliant at all times.

3. Cost Savings

Setting up and maintaining a legal entity is expensive. An EOR is a cost-effective alternative, especially for companies testing the market.

4. Visa and Work Permit Support

For foreign employees, the EOR handles sponsorship, work permits, and residence visas, making the process smooth.

5. Less Administrative Burden

You don’t need to worry about payroll, contracts, or social insurance – the EOR takes care of it.

6. Focus on Growth

With compliance handled, you can put your energy into business development and operations.

EOR vs. Setting Up a Local Entity in Saudi Arabia

Aspect EOR in Saudi Arabia Own Legal Entity Time to start Weeks Months Costs Lower Higher Legal responsibility Handled by EOR Handled by you Visa & work permits Managed by EOR Managed by you Flexibility High Moderate Long-term solution Short-to-mid term Best for large-scale expansion

For businesses looking to grow quickly and with minimal risk, an EOR is often the best choice.

Who Should Consider Using an EOR in Saudi Arabia?

Startups wanting to test the Saudi market.
Small and medium businesses (SMEs) without resources for a legal entity.
Global companies that need to hire remote or local staff quickly.
Organizations hiring expatriates needing work permits and visa support.
Firms expanding gradually who aren’t ready for the costs of a full entity setup.

Yaqoot Manpower Services: Your EOR Partner in Saudi Arabia

At Yaqoot Manpower Services, we help businesses of all sizes enter and grow in Saudi Arabia. Our EOR services ensure full compliance with Saudi labor laws while allowing you to focus on building your business.

From payroll and contracts to visas and HR support, we manage it all — so you can hire confidently and expand with ease.

Looking to hire in Saudi Arabia without the hassle of setting up a local entity?

Partner with Yaqoot Manpower Services for reliable and compliant EOR services. Start your Saudi journey today with confidence and peace of mind.

Frequently Asked Questions (FAQ) About EOR in Saudi Arabia

Q1: What is the difference between an EOR and a PEO in Saudi Arabia?

An EOR is the legal employer of your staff, while a PEO partners with your existing legal entity to manage HR. If you don’t have a company in Saudi Arabia, you need an EOR.

Q2: Is using an EOR legal in Saudi Arabia?

Yes. EOR services fully comply with Saudi labor laws and allow foreign companies to hire staff without a legal entity.

Q3: How long does it take to hire employees through an EOR?

Usually, within a few weeks. The EOR handles contracts, visas, and onboarding quickly compared to entity setup.

Q4: Can an EOR help with hiring both locals and expatriates?

Yes. EORs can employ Saudi nationals as well as sponsor work permits and visas for expatriates.

Q5: Is an EOR a long-term solution?

It can be, but many companies use it as a short-to-mid term option until they establish their own entity.

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