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Human Resources Development Fund - The Guide Book

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 rst ve-year plan in 1970 and going up to the end of theseventh ve-year plan in 2004 (see gure 1). Hence, the training and preparation of Saudi

human resources and the development and enhancement of their skills has become the

rst priority in the development policies of the government. Consequently, 276 billion

riyals have been earmarked for human resources development in the seventh ve-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 nancially independent. Its Board of Directors will represent it and

its head ofce will be in Riyadh. It will also have ofces and agents that will carry out its

activities in other cities in the kingdom. The Fund will concentrate on the encouragement,

training and employment of Saudis in the private sector.

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Human Resources Development Fund - The Guide

2

The establishment of the Human Resources Development Fund, with its legal and

administratively and nancially 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 qualied 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 benets 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 nancial 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 nancial

drain from the national economy, which cannot be ignored anymore. The constant ow

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 owing funds will ow in,

and will, consequently, reinforce our economic stability and our national security.

The Establishment o the Fund

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Objective and Responsibilities o 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 a1.

national workforce, especially in the private sector.

Share the expenses of preparing, training, and employing the national workforce2.

in the private sector.

Pay a percentage of the salary of any trainee who is hired by a private rm after he3.

nishes his training. The same will be done for new recruits of the rm.

Offer nancial assistance to programs in the eld, projects, plans, and studies4.

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 national5.workforce.

Embark on studies and research that are related to activities in the eld 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 reects 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 nancing.

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

positive results in the labor market in a very short time.

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The Administration o 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 o 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 o 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 conrmation

of continuity of employment.

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The Department o Finance

The Department of Finance is responsible for the following:

Assessment of the economic viability of the training programs and projects before•

offering the loan to the rm, and ensuring their consistency with the general objectives

of the Fund.

Receipt of enough guarantees that are proportional to the loan from the rm that•

applies for the loan.

The amount of the required loan for any program or project of a single rm should not•

exceed 2.5% of the money allocated for loans in the scal 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•

to ensure that they are going according to plan, and provision of consultations with

regard to problems and difculties 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 DepartmentThe 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 isresponsible 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 benet from the services of the Fund, checking their level

of satisfaction and receiving and acting upon general suggestions.

The Department o Planning and Development

This department is responsible for preparing the yearly and ve-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 nancial services to the departments,

units and employees of the Fund.

The Department o 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

eld 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 are

meant 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 workow 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 national labor force and enabling this labor

force to occupy suitable jobs in the private sector.

Department o Inormation 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 o 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, and1.

business enterprises in the different regions through advanced technologies.

Act as coordinator between applicants and the private sector to ll in the available2.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 qualications are not appropriate for the available va-

cancies.

Provide professional advice and detect professional tendencies of school students in5.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 o 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 eld in the Private Sector

which has been implemented on 16/08/2004 AD as follows:

The Support Mechanism or those priviously qualifed ortrained (one already qualifed) :

It aims the support of those previously trained by government or private institutions

and holding an approved specication and holding an approved certicates 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 provisionaladaptation while at work. The support in this way shall be offered as per the following

mechanism.

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Training SupportSupporting 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 everyemployee and the

employer shall incur

the remaining

percentage.

The period

complementing

two years

effectivethe expiration

of training

(24) months

training period

(50%) of the

total salary not

exceeding

(2000) SR/ monthfor every employee

and the employer

shall incur the

remaining

percentage.

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Training SupportSupporting the period

subsequent to trainingTraining

InstitutionPeriod 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%)of

training cost notexceeding (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 everyemployee and

the employer

shall incur the

remaining

percentage.

The Mechanism o supporting those not priviously qualifed( The non-qualifed ):

It aims supporting the training and recruitment of those not previously trained qualied and

does not fulll the requirements of the job he/she is nominated to. In this case, the support is

offered as per the following mechanisms:

2-

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The Mechanism o Supporting Health Training:

It aims at supporting the qualication 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

presentation for the supporting mechanism in the health specialties:

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An indicative table showing the mechanism project for supporting the r

The target

category

The trainee

status

Training

location

Diploma stage Not previously

supported

Outside the establishment

premises

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


premises

B.Sc stage

(Nourice)

Training shall be

restricted to Nursing &

pharmacology specialties


premises.

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itment -linked training in the health sector for both diploma and B.Sc stages:

Period Cost Salary period Cost

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

period for the

B.Sc stage after

crediting the

diploma hours

from thecompetent

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.

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.

Training Support Supporting the recruitment period

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The Fund Programs

1-Training program at work ending by skill or job seekers:

This program aims at enrolling the non-qualied 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 ( or thosealready qualifed):

This program aims at entrolling the qualied job seeker whom it was difcult 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 or qualiying the specializedcadres:

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

basis as per the system of the training institution.

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4-The Proessional 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-

eting 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 ProgramThe 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 ofcials in the

non-supported institutions for performing interviews and employment in the light of the

same.

6-Distance Work Program

This program aims at supporting the employment of the women as well as those with

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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 beneciary establishment. The importance of distance

work technique is derived from the availability of female job seekers having specialized

scientic and training qualication 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 o supporting training & qualiying the ownerso 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 o supporting the owners o the small size projects

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 ofcial 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 benet from the Fund`s subsidization of his Saudi Staffwages in case he /she enters a subsidization agreement with the Fund.

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9-The Program o providing the technical & administrativeconsultancies 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 certicates 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 o qualiying the human resources specialist:

It is a training program directed to the human resources ofcials in the private sector

establishments and it aims at qualifying and preparing national cadres in the eld 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 o 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(HR MIS).

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12-The Program o the incentives or the job stability or the

supported employees

This program aims at achieving the job stability for the supported employees in the

employing establishments, so that the employee beneting 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 ve 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 o 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

such support shall not exceed (2000) Saudi Riyals on monthly basis.

Documents

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