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Introduction
The United Arab Emirates is one of the fast growing nations in the world. The rapid growth has led to the creation of different job opportunities which has led to international migration.
Different expats from all walks of life are relocating to UAE with the dream of getting better jobs. Fueled by the increased rate of unemployment in different parts of the world and the economic hardships, people are flocking UAE which has high economic growth rate to get employment.
UAE which depends heavily on oil and gas is believed to be on the verge of growing further. As a result, many people will head to UAE to fill any emerging jobs.
However, despite the rapid growth and the promise for better jobs, employers in UAE are faced with challenges of recruiting employees. The report discusses how UAE can make their organizations and recruiting efforts more attractive to people from divergent nationalities.
UAE’s general frame structure for organizations
Environmental: UAE offers a very competitive environment where different organizations compete. The environment is shaped mainly by joint ventures (Emirates 2009).
Local and foreign organizations operate jointly with the local shareholders acquiring 51% of the market share while foreigners owning 49% (Emirates 2009).
However, profit sharing is not necessarily shared through the ownership percentage criteria. The oil and gas industry is the largest followed by the construction industry which is funded by revenues from the oil industry.
Political: UAE has a stable political system which has made it possible for organizations to operate and compete favorably. However, organizations’ operating in UAE have to follow the different political systems of UAE different members.
The UAE members are Fujairah, Ras alKhaimah, Umm al-Qaiwain, Ajman, Sharjah, Dubai, and Abu Dhabi. The civil and Sharia courts are responsible for any actions that organizations in UAE fail to follow.
According to a Bikya Masr Staff (2011) UAE has been attractive to foreign investors as the Sharia laws does not allow corporate and income taxes. With an import duty of 5%, UAE has become attractive to different multinationals in the world.
Legal: Organizations especially foreign are required to follow Article number 8 of the UAE Federal law (Emirates 2009). The organizations are required to operate either as limited liability, public shareholding, private shareholding, partnership limited, and general partnership, limited partnerships or share holding companies.
Any organization operation which does not operate under either of the above business forms as required by UAE Federal Law is deemed as illegal. Nonetheless, organizations operating under Free Trade Zones are excluded from the business law requirement (Emirates 2009).
In most cases, organizations operate as joint ventures where a foreign organization agrees to merge with existing organizations. The legal requirements for private shareholding include a minimum capital of Dh 2 million and m minimum of three shareholders (Emirates 2009).
Human resource: Human resource in UAE is recruited based on competence skills and experience perspectives. As a result of the increased competition in the UAE and with every organization competing to meet the world class standards, UAE selects the best human resources mostly non-nationals.
The state depends heavily on expats as the education system of the region is very poor compared to the skills required by most organization (Sherdiac and Samman 2).
Although UAE has a huge population, most nationals do not work in the private sector. An estimate of almost of eighty percent of the private sector employees is made of the expats.
Recruitment perspectives and SWOT analysis
In all organizations, competence, skills, and experience are the key aspects which employers seek. Emaar bases its recruitment on knowledge, set of behaviors, competencies, and the will by the people to work in the availed jobs (Emaar Properties PSJC 2010).
It also ensures that it acquires the best persons for the available vacancies. On the other hand, Pepsi Co. recruits its employees based on skills and competence also. The demand for competent and skilled employees has increased competition during employees’ recruitment process.
Pepsi SWOT Analysis
Pepsi which is a US based multi-national corporation has been operating in UAE for the last 45 years through a joint venture. Although the company is present in UAE, it operates under Dubai Refreshments PSC which handles all the operations.
EMAAR SWOT Analysis
Emaar Properties PSJC is a real estate organization with its headquarters in Abu Dhabi. Most of its employees are expats as the UAE nationals lack the required skills and manpower. Although it has offices in UK and US, most of its operations are largely carried in Arab speaking countries.
Based on the SWOT analysis, it is imperative to note that both companies depend heavily on expats. Increased competition is a major threat in the UAE region given that the nation is categorized as an emerging economy.
The companies share the same recruitment perspectives as they seek to employ competitive, skilled, competent, and experienced employees.
With operations outside UAE, the companies have an added advantage over their competitors as they are able to operate using global strategy.
Because of the increased unemployment rates in the world and availability of jobs in UAE, the companies have the opportunity of using skilled cheap labor.
Different recruiting approaches
There are different approaches applied when recruiting employees in UAE. In most cases, recruiting agencies are used to recruit employees on the behalf of the employing companies (Razvi 1).
In other cases, employees apply for jobs online and wait to be recruited upon application. In the case of Emaar and Pepsi, both external and internal recruiting approaches are used.
According to Richardson (6) and D’Annunzio-Green, Gillian and Watson (17) these two types of recruiting approaches are often applied by large organizations.
However, most of the applicants secure jobs in UAE through the use of recruiting agencies. Other recruiting approaches include the use of company websites where competency and skills are sought.
Employees can apply online on the websites of the companies in UAE. For instance, the Emaar and Pepsi use their websites to recruit its employees for any vacancies that show upon as a result of expansion, job reallocation or when an employee has left or has been fired.
Currently, the traditional recruiting approaches are becoming obsolete since online recruitment has gained momentum in UAE (Rizvi 1). Based on a study carried on the UAE population, 70.5% of the population will have internet connection by 2013 (Rizvi 1).
This implies that most of the UAE nationals will be tech savvy hence the high use of the online recruiting approach. Most of the companies in UAE inclusive of Pepsi and Emaar use online recruitment approach to get employees.
According to Rizvi (1) the online recruiting approach has become more common in UAE because of its ability to match jobs and speed up the hiring process.
Application of selection techniques
The commonly used selction methods are the compensatory approach and the successive hurdles approach. The successive or multiple hurdle approach subjects the specified job candidates to indentified number of hurdles or procedures (Lindner 1).
In this approch, an applicant can be rejected before going to the next step during the recruitment process. Some of the steps involved include preliminary interview, application form filling, undergoing tests, interviews, background investigations and medical examinations.
Dubai Refreshments which is an affiliate of Pepsi Co, applies this form of approach to select its employees. According to Dubai Refreshments (2007) applicants fill application forms which are later returned to the company for review and shortlisting.
Interviews are conducted on the successful candidates who are inteviewed by the recruitment panel. The application form is compared with the job specifications and later, the applicant is notified if he/she has been successful or has failed.
Competency questions are levelled on the job applicants. Test are carried by the applicants before qualifying for the next step. Unsuccessful applicants are notified and reminded of their right to complain.
A background investigation is carried on the successful candidates to ensure that the applicants have given accurate information (Dubai Refreshments 2007). Later, the successful candidate is appointed upon deliberation by the recruitment and selection committees.
On the other hand, Emaar uses the compensatory approach to select its employees. The compensatory approach comprises of several phases where the candidate success is based on the overal stage perfromance (Lindner 1).
The applicants undergo the whole selection process where screening is not carried on each stage as it is in the case in successive hurdle approach. The employee with the highest scores is selected for the job.
This has been reflected on the Emaar PSJC which acknowledges that the applicants undergo several selection stages (Emaar Properties PSJC 2010).
Some of these stages carried under the Emaar compensatory selection approach include interviews, completion of personality and psychometric tests. Later, the applicant undergoes another interview to detemine their experience, skills, competency, and individual personality (Emaar Properties PSJC 2010).
The successful candidate is selceted upon background check and medication examination. At this stage, the applicant is ready for job training.
Although the two approaches are approapriate for job selection, the hurldles successive/mutiple approach rejects the applicants at initial stages thus saving resources and time.
On the other hand, the compensatory approach gives the applicant the opportunity to participate until they reach the last stages.
Emaar and Pepsi recruitment methods
External recruitment involves the process of sourcing employees from outside the organization. D’Annunzio-Green, Gillian and Watson (17) note that external recruitment can either be formal or informal.
Under informal recruitment, the organization sources its employees from a small section. Students under internship, ‘walk-in’ candidates, referrals, and former employees are reconsidered in this form of recruitment (Richardson 11).
Employees at lower job levels like secretaries and clerks are usually hired through informal recruiting process. On the other hand, formal methods search the required candidate from a wider span.
The mostly applied methods include employment agencies, online advertisements, the mass and print media like radio, newspapers and magazines, college recruitments, and search firms (Richardson 10).
Job vacancies are often posted on companies’ websites, employment agencies, and media to catch the attention of qualified applicants. The synergy behind this form of external recruitment is its capability to reach a higher and greater audience where employees can apply for the available vacancies.
The careers options under the Pepsi and Emaar websites allow qualified candidates to post their resumes online for job recruitment. Competency, skills and other work related attributes are reconsidered.
Both Emaar and Pepsi have websites from where jobs are advertised. Pepsi operating under the Dubai refreshments identifies existing vacancies, posts and announces the posts.
According to the Dubai Refreshments (2007) specification of the job, the responsibilities and duties and the skills required are included. Employment services, specialist publications, internet recruitment sites, and newspapers are used to advertise and circulate Pepsi job vacancies (Dubai Refreshments 2007).
Once the application forms are found satisfactory, the applicant is recruited for an interview. On the other hand, Emaar undergoes almost the same external recruitment process.
For instance, different media are applied to announce, advertise and circulate the available positions (Emaar Properties PSJC 2010). Applicants who meet the job specifications are called for interviews upon recruitment. These forms of external recruitment reduce time wastage and increase the chances of getting highly qualified employees.
Internal recruitment is carried within an organization where vacant positions are posted on electronic bulletin boards; notice boards, office memoranda, and company newsletters or through referrals (Richardson 5).
Referrals are carried through word of mouth especially for casual jobs. Promotions are typically based on internal recruitment as the employees are well versed with the organization weaknesses and strengths (Richardson 5).
Both Emaar and Pepsi Co use this kind of recruitment because it is cheap, cost effective and most preferable where job promotions are necessary.
Through emiratisation both Pepsi and Emaar are able to recruit UAE employees through referrals. The aim of this process is to encourage the UAE nationals get employment as 80% of employees in UAE are expatriates (Razvi 2011).
Key issues and issues for recruitment in UAE
Although UAE has been able to offer job openings to different nationals, there are various issues that mar the recruitment process. The key problem that is experienced during the recruitment of employees in UAE is the complexity of the UAE Labour Law which is used while recruiting employees.
The UAE Labour Law which has numerous articles is in most cases neglected leading to problems during employment. As seen earlier, recruiting agencies are involved in the employee recruiting processes which in most cases do not explain to the employees the requirements contained in the UAE Labour Law.
The advancement of technology has led to online recruitment (Rizvi 1). As a result, numerous scam websites have mushroomed which promise to recruit employees on behalf of UAE companies.
Many incidents have been reported where people have been conned through fake recruiting agencies. The dubious recruiting agencies end up raising recruitment issues on genuine online recruitment agencies.
In most cases recruiting agencies do not discuss or explain the terms of conditions of employment as required by the UAE Labour Laws. Consequently, employees end up being confused, and exposing them to harsh working conditions, wrong jobs, and ending up unpaid.
Other organizations according to the Labour Law in the United Arab Emirates (1) end up offering employees with different papers where the original and the issued papers vary with different terms and conditions.
This threatens the whole recruitment process as employees may not trust the agencies anymore. Unlike in other countries where women can do jobs anytime, the UAE Labour Law article 27 prohibits women from working at certain hours (Abu Dhabi Government 2012).
This affects the recruitment of women employees in the fear of being restrained to work during certain hours. In some incidents, the recruiting agencies, employers and companies end up holding passports and other travelling documents of employees (Labor Law in the United Arab Emirates 2).
Although it is prohibited, it has been evident that some employers end up committing the vice. As a result, the employees end up trapped in UAE, working under harsh conditions or even working with no pay. This has been poised as a recruiting problem which may make it impossible to attract divergent nationalities from different regions.
The UAE Labour Law is biased on the side of the employers since when an employee reports any form of misconduct instead of pursing the employer, the employee is pursed (Labor Law in the United Arab Emirates 3).
Although the law claims that absconding employers are fined, the employees in most cases end up being jailed or fined as the employer can afford a lawyer to defend their innocence.
As a result, many employees fear being recruited to work in the UAE. The organizations in UAE have discriminatory salary practices. For example, employees working under the emiratisation program earn more compared to other employees.
Whites especially from UK and US also earn more compared to Asians and Africans working in UAE under the same job groups. This is recruitment issue which is never explained to the employees during the hiring process.
The UAE Labour Law allows recruiting agencies and organizations to use Arabic language on all data, files, contracts, and records (Gulftalent.com 4). The Arabic language prevails even when the employee is not conversant with the language.
This complicates the recruitment process in UAE as employees may be lied onto by the employers on the terms and conditions or even on the employment duration and salary.
Another issue is language barrier especially from the Asian nationals. According to a Bikya Masr Staff (2011) the greatest challenge in UAE is recruiting employees from China and India.
Despite the large talent pool from China, agents and employers in UAE are challenged as the Chinese nationals despite their expertise and talents; lack English skills (Bikya Masr Staff 2011).
Recommendation
To rectify the specified problem and issues on the recruitment in UAE, it is advisable that the suggested recommendations be considered. As a result, employers in UAE will be in a position to attract employees from divergent nationalities.
It is suggested by all recruiting agencies operating in UAE be registered under the ministry of labour and be filling monthly operations returns. As a result, dubious recruiting agencies would be eliminated thus increasing confidence and trust among the employees.
Recruitment agencies reported to have lied or lured employees should be heavily fined or banned from operating in UAE. The UAE Labour Law especially Article 2 on the language used (Gulftalent.com 4) should be changed to have a provision that allows the use of another language understandable by the UAE non-nationals.
The documents of the employees should never be confiscated by the employer as this violates the basic human right of right to privacy. All terms and conditions should be clearly explained to the employees before full employment especially to non Arabic speaking nationals.
This would reduce chances of employees being lied to especially non-English and non-Arabic speaking employees. The UAE government needs to cooperate with major players in the UAE to ensure that rules and regulations are set on recruitment which would increase the number of employees with divergent personalities.
Works Cited
Abu Dhabi Government. 2012. UAE Labor Laws. Web.
Bikya Masr Staff. 2011. More jobs Than People in UAE, says UAE. Web.
D’Annunzio-Green, Norma, Gillian A. Maxwell, and Sandra Watson. Human Resource Management: International Perspectives in Tourism and Hospitality. London: Thomson, 2004. Print.
Dubai Refreshments. 2007. Recruitment Process. Web.
Emaar. 2010. Careers. Web.
Emaar Properties PSJC. 2010. Recruitment. Web.
Emirates. 2009. Legal Structure for Business in UAE. Web.
Gulftalent.com 2007, UAE Labour Law. Web.
Labor Law in the United Arab Emirates. Web.
Lindner, James and Chris Zoller. Selecting Employees for Small Businesses: Doing it Right the First Time. Web.
Marketing Teacher Ltd. 2010. SWOT Analysis PepsiCo. 2010. Web.
Razvi, Muzaffar. 2010. UAE’s Surging Internet Population Triggers Boom in Online Recruitment. 2010. Web.
Richardson, Margaret. A., Recruitment Strategies: Managing/Effecting the Recruitment Process. Web.
Shediac, Richard and Hatem Samman 2010, Meeting the Employment Challenge in the GCC the Need for a Holistic Strategy. Web.
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