The Value of HR in the Middle East: How Can Professionals Carve Out Their Niche?

The Value of Human Resource Professionals in the Middle East

What is the value of Human Resource professionals in the Middle East? How can HR professionals create a niche or space of importance in Middle Eastern corporations?

Your query is worth a billion dollars. I hope you are aware of the culture being practiced in the Middle East. It may not be the same in every company, but I think it is the same in the majority of organizations, including the oil & gas sector. Inexperienced candidates are being employed through references, and those selected on a merit basis have very little scope for climbing the success ladder. It seems that without applying tactics, it's difficult to prove our caliber.

Whatever you wish to create or make happen, it has to come from top management. The major focus of top management is on profit and loss. I don't think this can happen in the Middle East unless major changes take place in operational strategies at the top management level. There are other points as well that I can't discuss here because this is a public forum.

Unless you work with Westerners or visionary entrepreneurs/businessmen who truly value systems and practices, you won't be able to succeed in your mission. Even to get into the best companies managed by Westerners, one has to be a native or should have pursued their graduation and masters from top universities.

If I am wrong, kindly correct me.

With profound regards

You have presented my points of view in the most apt words. I'm glad you understood the essence of my questions. For readers to understand the HR scenario in the Middle East, we can provide basic mindsets and general practices or bottlenecks or cultural differences that HR faces in respective Middle Eastern countries.

• Most of the corporations are family-owned enterprises, tightly governed as per the favoritism of top management.

• Emphasis on Human Resources is minimal. They are mostly considered as a means to an end, which is profit.

• Money is the only motivating factor offered to employees. Other motivational activities are discouraged, considering them burdensome expenses.

• Degrading classification or segregation of employees based on ethnicity and country of origin.

• Restrictive employment laws. Lack of friendly labor laws. Restriction on forming unions or even protesting.

• HR professionals are still considered mere personnel administrators, managing payroll and immigration.

• HR professionals have no say or even involvement in the business functions of the company.

Unlike India, the HR role in the Middle East is more like a clerical role with no charm or challenge. As you mentioned, HR is primarily focused on the recruitment of expats, payroll, and liaising.

Regards,
Pon

One of the primary reasons why HR is not challenging here is because the government is not keen on streamlining employee-employer relationships. Any abuse of human rights or employment terms is considered a civil offense if reported by victims. Many cases are tricky and require laws and regulations to discipline the treatment of employees in the workplace.

The most affected are lower-level labor class workers, followed by clerical workers who remain in the same position for their entire lives, with meager salary increases and no appreciation for their efforts and loyalty. An employee completing 3–5 years in an Indian firm is revered as an asset of the company, whereas employees who have spent more than 25 years in companies here are not even acknowledged when they retire or resign.

There is abundant money in the Gulf, but no wealth.

The chief reason is that expats are recruited on a contract basis or fixed tenure in most cases. The performance management system (PMS) is dysfunctional there, with no proper evaluation of performance and increment systems in place.

Regards,
Pon

When you wrote "unlike India," why are the INDIAN ENTREPRENEURS themselves in a contrary role in the MIDDLE EAST? There are expats from India who have the BEST SKILLS, KNOWLEDGE, TALENT, and much more. In fact, they are doing more than they did in India. You can take my words for granted. Are these expats trading with Middle East opportunities?

In my opinion, HR STRATEGIES must be a part of a HEALTHY SYSTEM adopted by every organization, exclusively practiced by TOP MANAGEMENT on a TOP PRIORITY basis, rather than being implemented by HR PROFESSIONALS. I wonder where the QUALITY (in Human capital) has gone, but still, EXPECTATIONS are high in everything we do.

With profound regards,

Pon is presenting a reality of Middle East corporate.

Dear HR scenario is still at commendable levels in India. At least there are laws as a final resort to employees' grievances. It's another story that corruption and the laid-back attitude of employees and employers do not implement law guidelines. India has abundant labor laws, but a complex machinery or commissions to implement the regulations into practice.

I wonder how many salient points of the Factory Act are actually implemented in factories spread across India. Whereas in the Middle East, the physical material laws of regulating an industry are implemented strictly, but there is a weak machinery of regulating employer behavior towards employees.

Racism, discrimination, and prejudice are prevalent everywhere, but there are laws in India or the Americas to discourage such practices. In my knowledge, the Gulf does not have exhaustive or clear guidelines on such matters. It's a surprising fact that the Gulf could have the most diverse workforce after the USA.

Apart from diverse markets, industries, and the globalized expansion of business, India is a dominant job market within and for the world. The only advantages I see in the Gulf are:
• Better Pay Packages
• Tax-Free Economy
• Slow Pace of Living

But there is nagging restlessness due to a lack of challenge for HR professionals to make a worthwhile career worth the pride. In spite of proven examples of how HR philosophies can accelerate growth and prosperity with work-life balance in a win/win situation for all.

Even in India, HR is considered cosmetically supportive. How can HR really become an indispensable part of a business process to its grassroots level? Sooner or later, HR will become burdensome overhead to be outsourced for the cheapest cost. How can the HR department become as important and lucrative as the Marketing or Finance Department? Even the IT department is considered one of the most important business enablers. HR is still struggling to make its presence felt.

I agree with Pon. The majority are quick-fix basic commerce graduates ready to work in any capacity to settle in the Gulf's tax-free economy. I have come across more alarming trends where professionals, such as computer engineers, are ready to work as mere accountant clerks or salesmen to remain in the Gulf.

Getting a job becomes the most important aim for many fresh graduates or frustrated experienced professionals from developing countries. Such desperation leads to their exploitation by employers. I have come across sad opinions from employers that they can find a cheap resource from Asian countries at the throw of some dimes.

One of the major reluctances is towards behavioral training amongst top or senior-level management. It is considered inferior or insulting to suggest management levels go for behavioral training in order to understand team dynamics, leadership skills, emotional intelligence, cultural orientation, etc.

Workers/employees are merely seen as resources available for a price. Any extra investment of resources or thought is considered an overhead expense. I have observed some remedial change in attitude in the banking sector. To my surprise, the retail sector, which is a dominant mainstay of Gulf economies, also lacks strong performance management or HR philosophies. Most of the employee engagement is limited to lousy annual parties.

I feel that HR can be valued in any organization when they join hands with business and become a part of it, be it the Middle East, India, or any other country per se. As an HR person, you should have one of the competencies as "business acumen" so that you understand the business well and align the HR strategy with the business strategy, enabling HR and business to work together to reach a common goal.

Challenges in the Middle East

This is a challenge in most companies in the Middle East because the businesses carried out here are by the locals who have limited knowledge of the HR domain. However, looking at the current trend, there are locals who have a strong command over HR, which was a big surprise to me because when I was here in the Middle East way back in 2003, the scenario was totally different.

So, do not worry, things will change.

It's not the case the way you are thinking. I do agree with you to a certain extent. Your assumption about expats not being academically excellent is wrong. For your kind information, professionals with specializations are in great demand in the Middle East. The HR Generalist profile is being practiced and promoted in India but not in the Middle East.

The Importance of Certifications

Certifications (specialization) add great value to our profile. There are nationalities doing better than Indians (holding degrees including Masters) with just specialized certifications in their respective discipline (domain). They are adding value to their role and have become a great asset to the organization.

Challenges and Expectations in the Middle East

We do have challenging roles to execute. We cannot ignore safety or violate rules/procedures as defined/set by respective companies and the Qatari government as well. This, you will never find in India. Even Middle East employers expect more output from employees. Some are extremely well-paid, and some are not.

Technological Advancements in the Middle East

The Middle East is known for the best utilization of technology. It has grown beyond our imagination. Except in the Middle East, nowhere in the world will you find certain procedures being practiced.

The way the government is focusing on safety regulations, if a similar approach is adopted for promoting the best HR practices, laws, and standards, I am sure employers will fine-tune themselves.

Cultural Comparisons

I was comparing the Indian lifestyle with that of Westerners. I felt that it is our human need to develop proportional quality standards. If we are perfect, no one can challenge us.

With profound regards

There are exceptions, but I speak about the majority. I did not dwell on safety and technology. I agree that the standards are far better than in India. I had been in the Middle East for some time in Oil & Gas, and my views are from my experience. Whether you agree or not, the reality is seen there as far as I know (AFAIK).

Regards,
Pon

The various treatises and analogies given in this discussion thread on the role of HR in the Gulf are excellent and depict the true picture. I have functioned as an HR professional in the Gulf and returned to India after completing one contract for the same reasons mentioned in the various threads.

Another factor to consider is that you can only make substantial savings if you do not take your family along, as good family housing and education are very expensive. This makes the tenure even more painful. Additionally, since employment is contractual, with each contract not exceeding two years, it is not prudent to uproot your family from the stable environment back home. It may be suitable for bachelors, spinsters, and CBC couples.

These are my personal views and opinions based on my experience, and I do not intend to engage in debate if there are differing opinions. My words are not meant to cast derogatory aspersions on any person, race, region, or entity.

Regards, UG

This is an interesting topic to debate or ponder over, but I have been in the Middle East and have worked for both corporates and consulting companies. I have the following views:

HR as a Cost Center

HR is treated as a cost center and has no value in the management structure. All you do is recruit, maintain payroll, onboard, and follow exit procedures for getting employees out of the country. It's like a circus—once the animals are old and cannot perform, sack them and get new ones.

Interview Realities

During interviews conducted to recruit HR professionals, the management asks all the questions in the book. In reality, they just want to show that they know all of it and pretend that such systems are prevalent there. Once you go there, it is shocking.

Lack of Performance Management Systems

Like the gentleman quoted above, there is no PMS system in place; only the favored rise up to the ranks of decision-making. So you know what happens to the employee who has worked in a structured system—they simply follow the way things are in his company, finally trying to be good to his superiors, and in the bargain, lose out to the competition once he returns to his country and is nowhere considered for any position in his home country.

Challenges for HR Professionals

So once you have worked in the Middle East, forget about getting yourself a job in HR anywhere else.

Having said all of that, I see some companies which are making efforts to bring in changes to attract and retain talent, but that's only a handful.

Regards,
Sanath