Managing the Workforce Diversity
UAE is an international business hub in the Middle East as it has many multinational organizations working from here. The workforce in these organizations includes both the national and the expatriate employees. These workers come majorly from Asia, some from Europe and South America. The company HR has to face challenges with the people of cultural and political differences. The local culture always influences the selection and recruitment process. So the management of workforce with so much diverse behavior and culture is an important issue in the UAE.
The diversity in the workforce presents both opportunities and challenges for HRM in the UAE. According to Hofstede’s cultural dimensions theory, cultural differences can significantly impact workplace behavior and management practices. For instance, power distance, individualism versus collectivism, and uncertainty avoidance are dimensions where national cultures differ and these differences influence organizational dynamics (Hofstede, 1980). Effective management of this diversity requires HR to implement strategies that promote inclusivity and leverage the diverse skills and perspectives of employees. This can include cultural sensitivity training, developing policies that respect cultural differences, and creating platforms for intercultural dialogue and collaboration.
Another relevant theory is the Social Identity Theory, which suggests that individuals derive a sense of identity from their membership in social groups (Tajfel & Turner, 1986). In a diverse workplace, employees may align themselves with cultural or national groups, which can lead to in-group and out-group dynamics. HRM must work to foster an inclusive culture that diminishes these divides and promotes a unified organizational identity. This could be achieved through team-building activities that emphasize shared goals and values.
Emiratization
Emiratization is a nationalization program of the country. The objective of the program is to balance the ratio of national and expatriate workers in public and private sectors. UAE government uses to keep watch on the recruitment policies of the organizations and apply a quota for the UAE nationals in the organizations. Multinational companies want to make profits and a skilled workforce is a key factor for the accomplishment of these objectives but most of the time UAE nationals are not enough qualified and motivated to work for company’s target achievement and still organizations have to recruit them to comply with the government policies.
The concept of Emiratization can be better understood through the lens of institutional theory, which posits that organizations conform to the norms and rules of the environment in which they operate to gain legitimacy (DiMaggio & Powell, 1983). In this context, complying with Emiratization policies helps organizations gain legitimacy and social acceptance in the UAE. However, this compliance must be balanced with the need to maintain organizational efficiency and performance.
To address the skills gap, HR can implement targeted training and development programs. The Human Capital Theory, which views education and training as investments that enhance an individual’s productivity and earnings, supports this approach (Becker, 1964). By investing in the professional development of Emirati employees, organizations can enhance their competencies and align their skills with organizational needs.
Lack of Basic Skills in UAE Nationals
The UAE government has invested a huge amount of money in professional education of the aspirants. Output of these efforts does not meet the expectations. Establishment of professional institutions has made efforts in the development of human resources but the skills and talent acquired are not utilized by them. However, organizations want to meet the government policies of nationalization but they cannot recruit unskilled and unqualified human resource in their system.
This issue can be examined through the framework of the Resource-Based View (RBV) of the firm, which emphasizes the strategic importance of valuable, rare, inimitable, and non-substitutable (VRIN) resources (Barney, 1991). Skilled employees are a critical resource, and the lack of basic skills among UAE nationals represents a significant challenge for HRM. To convert this challenge into an opportunity, HR can focus on creating robust talent management and development programs that enhance the skills of Emirati employees and turn them into a competitive advantage for the organization.
Emiratization
This is a very important issue for the HRM in UAE. As 90% of the UAE workforce includes the expatriate employees which is increasing the unemployment rate in the UAE nationals. So the government is imposing a certain amount of quota for UAE national workers in the recruitment policies of the organizations. Employing unskilled HR may result in severe loss for a company. But recruiting the UAE nationals will decrease the unemployment rate in the country and the organizations which comply with the government rules will be awarded and considered to be socially responsible which will be good for the company’s long run brand image. The problem can be resolved but it needs motivation and cooperation of the government. Less skilled and qualified UAE nationals can be hired by an organization but they have to go through some training and development programs to make them beneficial for the company.
One approach to addressing this issue is through the application of Herzberg’s Two-Factor Theory, which differentiates between hygiene factors and motivators (Herzberg, 1959). By improving hygiene factors (e.g., working conditions, company policies) and enhancing motivators (e.g., recognition, career advancement opportunities), HRM can increase job satisfaction and motivation among Emirati employees. Furthermore, Vroom’s Expectancy Theory, which emphasizes the importance of expectancy, instrumentality, and valence in motivation, can be used to design effective incentive structures (Vroom, 1964). By aligning rewards with performance and career development, organizations can motivate Emirati employees to enhance their skills and contribute more effectively.
Conclusion
In conclusion, managing workforce diversity, addressing the lack of basic skills among UAE nationals, and implementing Emiratization policies are central issues in HRM in the UAE. These challenges require a strategic approach that combines understanding of cultural dynamics, investment in employee development, and alignment with government policies. By leveraging relevant academic theories and developing comprehensive HR strategies, organizations can navigate these challenges and create a more inclusive, skilled, and motivated workforce. The integration of cultural sensitivity, institutional compliance, and strategic human resource development will be key to achieving sustainable success in the dynamic business environment of the UAE.