Corporate majors and organisational biggies in the UAE and Saudi Arabia are roping in modern HR (Human Resources) platforms, besides investing heavily in AI—based HR tech as they grapple to put in place a future-ready, skill-based workforce for their ambitious regional and international expansion.
The surge in investments for HR tech is spurred by the need for identifying and cultivating the right mix of skills, with a focus on skill mapping and development to meet evolving demands becoming mission critical for companies’ expansion plans, industry experts and company insiders told Arabian Business.
In the GCC – mainly in the UAE and Saudi Arabia – 6 out of 10 CHROs (Chief Human Resources Officers) plan to invest significantly in HR tech in 2024, with 37 percent focusing on AI technologies to address talent shortages and skill development, they said.
Modern HR tech platforms help companies and organisations to convert vast amounts of employee data into actionable insights, improving hiring, talent development, and career progression strategies.
“Generative AI is set to become a force multiplier in HR over the next 2 to 3 years,” Mrigank Tripathi, President – Growth at PeopleStrong, a leading HR tech platform operating in GCC and India, told Arabian Business.
“Role of AI in HR will increasingly become highly important as meeting skill demands is critical in laying the foundation of a future-ready workforce, especially as organisations expand into new markets,” he said.
Tripathi said relying solely on external hiring is costly and risky, making internal skill development and capability-building essential for creating a robust talent pipeline.
Senior HR executives at some of the UAE-based companies confirmed their plans to make significant investments to improve their tech capabilities to meet specific talent hiring capabilities and employee re-skilling programmes.
Companies shunning traditional job-based approach for skill-based talent management
Industry experts said UAE and Saudi companies across several sectors are increasingly shifting from the traditional job-based mode to a skills-based approach in talent management to keep up with rapid growth and increasing skill demands.
Companies now conduct skill mapping exercises to evaluate existing capabilities and identify gaps.
Additionally, by forecasting future needs, they draw up blueprints to pinpoint skills that are critical but currently lacking.
“We’re already seeing its [AI applications] impact in areas like recruitment, onboarding, exits, and even payroll,” Tripathi said.
“For example, an AI agent can manage recruitment from uploading job descriptions to screening thousands of CVs and shortlisting the top candidates, drastically increasing efficiency,” he said.
Corporate insiders said the strategy involves two key steps: first, understanding the current skill levels within the organisation, and second, developing and executing a plan to address skill gaps.
“This skills-based approach integrates recruitment, talent development, and retention, ensuring decisions are driven by skill growth,” said a senior HR executive at a Dubai-based tech startup, who wished not to be identified.
The executive said another major shift currently underway is in creating meaningful career journeys.
“Today’s employees seek more than just competitive pay; they want enriching, challenging experiences that lead to long-term engagement,” she said.
Tripathi said managing personalised talent programmes requires strong technological support.
He said PeopleStrong’s ‘TalentOS’, an AI-driven system built on a skill cloud, offers real-time skill insights and embeds skills across the employee lifecycle, enabling data-driven, strategic talent management decisions.
AI, automation help real-time, continuous employee performance feedback
Industry experts said meeting skill demands is emerging critical for several corporate biggies in the GCC region, especially in the UAE and Saudi Arabia, as they are currently gearing up for their next stage of growth – expanding into new markets.
They said making internal skill development and capability-building will be essential for creating a robust talent pipeline for companies in the region for pursuing their ambitious overseas expansion plans as relying solely on external hiring is costly and risky.
Improving manager and employee efficiency is another major challenge identified for successful implementation of international expansion plans.
Company insiders said going forward, the focus will be on real-time, continuous employee performance feedback.
“Leaders need real-time insights into goal progress. This is where modern HR tech platforms play a key role, as their performance dashboards provide real-time data from work-tech systems, enabling continuous tracking and adjustments,” a senior corporate executive said.
“As a result, HR and business leaders are increasingly looking for more effective ways to manage performance,” the executive said.
The PeopleStrong senior executive said as the UAE and Saudi Arabia have become two of the most vibrant job markets, especially post-pandemic, skill-building has of late emerged as a top priority for CHROs and business leaders.
“A unified, skills-based talent strategy relies heavily on technology to be effective,” he added.
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