May 03, 2016
Practicum Report
Issues of Multinational Enterprises
Multinational Best Practices for Advancing Female Employment in Saudi Arabia
Report by American University School of International Service Students:
Fahmiya Ismail
Sudhanshu Neema
Kristina Olney
Completed under the guidance of Professor Catherine Bocskor
Table
of Contents
Executive Summary ........................................................................................................................................... 2
Introduction ........................................................................................................................................................ 3
Status of Gender-Labor Gap in Saudi Arabia ............................................................................................... 4
Challenges Facing Saudi Women ................................................................................................................ 4
Saudi public opinion on gender-labor gap ..................................................................................................... 6
Legal Challenges in Employing Women ........................................................................................................ 8
Case studies ......................................................................................................................................................... 9
Methodology .................................................................................................................................................. 9
Case study I – Women’s Banks ................................................................................................................... 9
Case Study II – All women business processing center in Riyadh.......................................................11
Case Study III – Minnesota Mining and Manufacturing (3M) .............................................................12
Best Practices ....................................................................................................................................................13
Diversify Recruitment Strategies ...............................................................................................................15
Rewise Human Resource Policies & Procedures....................................................................................14
Reverse Job Fairs .........................................................................................................................................14
Provide Accomodations .............................................................................................................................15
Promote Family Inclusion ..........................................................................................................................15
Organize Employer Dialogues ..................................................................................................................16
Leverage corporate, community and economic investments................................................................16
Provide Professional Development ..........................................................................................................17
Create Opportunities for Upward Mobility .............................................................................................17
Engage Stakeholders ...................................................................................................................................18
Conclusion ........................................................................................................................................................19
References .........................................................................................................................................................20
Appendix ...........................................................................................................................................................21
Appendix 1 – Saudi Arabia Public Opinion Poll ....................................................................................21
Appendix 2 – Ministry of Labor Report: Directory on Women in Private Sector ...........................26
Appendix 3 – List of US Companies operating in Saudi Arabia ..........................................................29
Appendix 4 – Map of Key Female Executives in Saudi Arabia ...........................................................31
1
EXECUTIVE SUMMARY
This report identifies best practices that companies operating in Saudi Arabia can utilize to increase
female participation in the workforce, while remaining within the existing legal, regulatory, and policy
framework. Through primary research, our team conducted interviews with employees of Saudi and
U.S. companies, as well as scholars, expatriates, young professionals, and students based in Saudi Arabia
or who are familiar with the issues on the ground. After engaging a total of 38 U.S. companies in the
defense, aerospace, technology, banking, and automotive sectors operating in Saudi Arabia, our team
selected three companies operating in the Kingdom of Saudi Arabia (KSA) as case studies to identify
measures that companies can unilaterally employ to advance female employment in Saudi Arabia.
The three case study companies are the Riyadh Bank, a Saudi-operated female-only institution; the All
Women Business Processing Center, an endeavor of the Saudi government and multinationals General
Electric and TATA Consulting Services; and Minnesota Mining and Manufacturing Company (3M), a
U.S. multinational. Our team used the findings from our case studies to develop a set of best practices
that companies can employ to overcome internal and external limitations that companies face when
hiring women, as well as strategies for mitigating individual obstacles that female employees face when
obtaining employment. The best practices are divided into three categories; diversifying recruitment
strategies, revising H.R. policies and processes, and providing accommodations.
Since well-crafted gender initiatives require a holistic approach, our team identified a full spectrum of
possible tools for companies including recruiting, developing, promoting, and retaining female
employees. Critical elements and programs identified in the best practices section of the report include:
targeted recruiting, use of recruitment agencies, organization of reverse job fairs, offering competitive
benefits packages, high-impact and stretching assignments, revising human resource policies and
processes, flexibility in providing accommodations, understanding the importance of increasing family,
company, and community inclusion for policy development, diversity training, leadership development,
mentoring and coaching, sponsorship, women’s networks, awareness campaigns, progress tracking, and
career design with greater flexibility. Overall, in order to foster an environment conducive to long-term
change, it is crucial to create personal and workplace awareness on gender issues, to establish
accountability through quantifiable goals, and to create an effective career planning process that is
institutionalized into daily business practices.
2
INTRODUCTION
The oil price boom from 2003 to 2013 fueled rising prosperity in Saudi Arabia, making it the world’s
19th-largest economy.1 GDP doubled, household income rose by 75 percent, and 1.7 million jobs
were created for Saudis, including for a growing number of Saudi women.2 The government invested
heavily in education, health, and infrastructure and built up reserves amounting to almost 100 percent
of GDP in 2014.3 However, in the face of a changing global energy market and a demographic
transition that will significantly increase the number of working-age Saudis by 2030, the country can
no longer rely on oil revenue and public spending for growth. 4 The current labor participation rate is
41 percent, and productivity growth of 0.8 percent annually from 2003 to 2013 trailed many emerging
economies.
Just this month, Saudi Deputy Crown Prince Mohammed bin Salman announced an economic reform
plan to diversify the Saudi economy over the next 14 years.5 The prince presented a plan to develop a
Saudi services-based economy, boosting non-oil exports from 16 to 50 percent by 2030, saying he
wanted the kingdom to "live without oil by 2020."67 The "Vision 2030" plan involves a green-card
system for expatriates to invest in the country, increasing the supply of affordable housing, and selling
shares in the oil giant Saudi Aramco to set up a wealth fund.8 The prince also discussed women's
participation in the workforce and said he hoped for "positive changes in future" regarding the ban
on women driving.9 A 2015 report by McKinsey and Company found that Saudi Arabia could double
its GDP by 2030, however in order to achieve this transformation, greater workforce participation by
Saudi men and women will be essential to achieve higher household income.10
Although female employment in Saudi Arabia has been rising, there are still significant cultural, legal,
and regulatory barriers to women entering the Saudi labor force. With a population of 19 million plus
McKinsey and Company. “Saudi Arabia Beyond Oil: The Investment and Productivity Transformation,” accessed
March 22, 2016
file:///Users/user/Downloads/MGI%20Saudi%20Arabia_Full%20report_December%202015%20(3).pdf.
2 Ibid.
3 Ibid.
4 Ibid.
5 Torchia, Andrew. “Saudi Arabia Presents Plan to Move Beyond Oil,” Reuters, January 25, 2016,
http://www.reuters.com/article/us-saudi-economy-conference-idUSKCN0V32DG
1
Ibid.
Ibid.
9 Ibid.
10 Ibid.
7
8
3
9 million foreign workers, Saudi Arabia has an incentive to increase women’s employment, particularly
in the private sector. The majority of women working in Saudi Arabia are employed in the education
and health sectors. Although the government has taken significant steps to replace foreign workers
with Saudi women, such as the National Transformation Program that was announced in 2015, major
challenges remain for highly educated Saudi women. According to Hatem al-Samman, director of the
Dubai-based Ideation Center, a Booz & Company think-tank, the private sector is not growing fast
enough to absorb female graduates who outnumber men.11 Moreover, many small and medium-sized
businesses cannot afford to hire women because of the costs of complying with government
segregation rules, which include having a separate female entrance and bathrooms, and a security guard
to stop men entering areas that are designated as female-only.
As the government of the KSA works to implement effective policies to include more women in the
workforce, a commitment it made as a G20 member in 2015, private sector companies will need to
identify policies and practices that can be implemented within the existing legal framework to
overcome barriers to employing more women. This report identifies best practices that companies
operating in Saudi Arabia can utilize to increase female participation in the workforce, while remaining
within the existing legal, regulatory, and policy framework.
STATUS OF GENDER-LABOR GAP IN SAUDI ARABIA
Challenges Facing Saudi Women
Although the employment of women has been rising, from around 450,000 in 2005 to around 800,000
in 2014,12 almost all of these jobs were created in the retail, hospitality, and construction sectors. The
retail and hospitality sectors in particular have been the focus of major government ‘Saudization’ and
feminization campaigns aimed at encouraging women to enter the workforce.13 Despite their increased
employment in health and education, Saudi women continue to face challenges entering other sectors.
In 2013, the active workforce in Saudi Arabia comprised 10.6 million people, fewer than half were
Saudi nationals, and men comprised about 85.6% of the total workforce. In 2014, the number of Saudi
Ibid.
Ibid.
13 Ibid.
11
12
4
women participating in the workforce reached 1.2 million or 18 percent of the female working-age
population, double the number of a decade previously, in 2003.14
Saudi Arabia has one of the lowest labor female participation rates in the region and globally. The
female participation rate in the Middle East in general is lower than in most other regions, and the
Kingdom lags behind its fellow members of the Gulf Cooperation Council (GCC); its female
participation rate is about half that of Bahrain and Kuwait.15 It ranked 134 out of 145 for “economic
participation and opportunity” for women in the 2015 Global Gender Gap Report by the World
Economic Forum.16
Saudi women face a number of significant cultural, legal, and regulatory barriers to entering the Saudi
labor force including limited mobility, restrictions on working environments, and cultural prejudices
against female participation in the labor force. Currently, women are prohibited from driving, do not
have access to public transportation and require the permission of a male family member to travel
outside the country.17 Abdullah al-Alami, a Saudi columnist and women’s rights advocate, says: “What
needs to be done to create more jobs for women is to change the mindset of the ‘walls of tradition’ in
the workplace. Salary scales need to be reconstructed to accommodate the hundreds of thousands of
Saudi female and male graduates.”18 Hala al-Dosari, a Saudi scholar now based in the United States
has said, “You can find entry-level jobs, but progress to leading positions that match your experience
or education is rare…Even the people who interview you for the job are not equipped or aware of
your domain. Some are very conservative and do not believe women should be working in the first
place. So you end up doing something below your training.”19
Ibid.
Moghadam, Valentine. “Women, Work, and Family in the Arab Region: Toward Economic Citizenship,” accessed
April 2, 2016 http://www.northeastern.edu/cssh/internationalaffairs/wp-content/uploads/sites/2/2014/11/Womenwork-and-family-Doha.pdf
16 World Economic Forum. The Global Gender Gap Report 2015, accessed April 1, 2016,
http://www3.weforum.org/docs/GGGR2015/cover.pdf
17 Saudi Arabia Ministry of Labor Report. “Directory on Women in the Private Sector,” see appendix 1.
18 Al Arabiya. “More Women Than Men in Saudi Universities, Says Saudi Ministry,” Saudi Gazette, May 28, 2015,
http://english.alarabiya.net/en/perspective/features/2015/05/28/More-women-than-men-in-Saudi-universities-saysministry.html
19 Ibid.
14
15
5
SAUDI PUBLIC OPINION ON GENDER-LABOR GAB
The Jeddah Chamber of Commerce Khadija bint Kowailid Center in collaboration with the Arab
Center for Research and Consulting Studies conducted a field study on public opinion in Saudi Arabia
regarding the participation of women in national development.20 The Jeddah Chamber of Commerce
founded the Khadija bint Kowailid center, chaired by Her Royal Highness Princess Basma Bint Saud
Bin Abdul Aziz, in November of 2004. The center operates as a link between the private sector, the
government sector and businesswomen in order to remove economic obstacles facing women and to
increase their participation in national development.
More than 3000 random phone interviews were conducted with both male and female Saudi
participants over the age of 18.21 The survey was conducted using a random sample of over 3000
participants of the Saudi community over the age of 18; 50 percent male, 50 percent female.
Participants were from different areas in Saudi Arabia across eleven cities based on population ratios.22
The goal of the study was to examine the extent of women’s participation in the labor market and
highlight the factors that could help increase their participation. The study sought to define the
community’s public opinion on the participation of Saudi women in national development; define the
most important factors affecting the participation of Saudi women in the workplace; analyze the reality
of working women in the labor force; define the obstacles faced by women in the labor force; and
recommend appropriate and sustainable solutions to increase the participation of women in national
development.23
There were several key findings of the study regarding women employed and some of the challenges
women face:
Saudi Arabia Public Opinion Poll. “Participation of Women in National Development,” see appendix 2.
Ibid.
22 Ibid.
23 Ibid.
20
21
6
Only 15% of Saudi women above the age of 18
are employed – this is rather weak when
compared to 60% of males working in the same
age group
38% of women are seeking employment (43% between
the ages of 25-34 and 10% over the age of 45)
48% of women receive their jobs through the government
sector while 25% of women have found jobs on their own
and 18% through friends and family and 6% through
employment offices.
·
7
66 percent of women and 71 percent of men
do not strongly support the travel of women
outside Saudi Arabia without guardian
consent.
Transportation of women remains a key issue for women
in Saudi Arabia. 48% women employ a personal driver
and 26% are dependent on a male family member
LEGAL CHALLENGES IN EMPLOYING WOMEN
The work of female employees is highly regulated in the KSA. They are not allowed to work in any
job that does not suit their “female nature” (sic) as per the guidelines issued by the Ministry of Labor.
Further, employment of women at night is prohibited and they are allowed to work only between 6
am and 5 pm. This makes it hard for women in jobs that may sometimes require overtime hours.
Although employing women in factories is not prohibited in Saudi Arabia, the Ministry demands that
even if a single female is employed at any phase of the production line, all employees in that production
line must be women. This requirement works as a disincentive for employers to hire women.
Women’s employment in offices is more attainable in comparison to factories but comes with certain
responsibilities on the employer, some of which can be burdensome. For instance, an employer is
required to provide a separate office space if the number of female employees exceeds ten. In addition,
there must be at least three or more female workers at the same office or department. These
8
requirements make it particularly difficult and in some cases impossible for smaller companies to hire
female workers. When female workers at a company have ten or more children under the age of six,
the employer must also provide an adequate number of babysitters as well as a nursery.
CASE STUDIES
Methodology
After engaging a total of 38 U.S. companies in the defense, aerospace, technology, banking, and
automotive sectors operating in Saudi Arabia, our team selected three companies operating in the
Kingdom of Saudi Arabia (KSA) as case studies to identify measures that companies can unilaterally
employ to advance female employment in Saudi Arabia. The three case study companies are the Riyadh
Bank, a Saudi-operated female-only institution, the All Women Business Processing Center, an
endeavor of the Saudi government and multinationals General Electric and TATA Consulting
Services, and Minnesota Mining and Manufacturing Company (3M), a U.S. multinational. Our team
conducted in-depth interviews with these companies regarding their female employment practices,
personal experiences of women operating in Saudi workplaces, as well as the experience of their
companies with Saudi authorities.
CASE STUDY I – Riyad Bank
All female banks are a unique Saudi
phenomenon originally established in the
1980s to allow women to manage their
own finances. The concept of all-female
banks
was
convenience
to
of
give
women
doing
the
business
transactions without the support of men.
These banks constitute two different
Figure 1 Business being conducted in Riyadh Bank
types, including banks which were
9
exclusively established and run by women, as well as all women’s branches established by the banking
community to cater to their female clientele.
Women’s banks in the Kingdom are making substantial profits and play an important role in the
success of most female entrepreneurs. These banks have been generally successful and have
encouraged the setting up of similar institutions around the world. India, France, Indonesia and
Pakistan have similar banks being established to facilitate women’s business needs. These banks had
employed around 972 women in 2000 and are projected to employ 4000 women by 2015.
It is also interesting to note that all women’s banks have products and services especially catering to
women. Some of these include insurance products covering female health issues, children’s funds, and
financing for female entrepreneurs. These banks exclusively employ women with the exception of
security personnel.
Riyad bank is one of the largest financial institutions in Saudi Arabia with assets of about $30 billion.
It was started in 1957 as a government institution to cater to the needs of marginalized people in Saudi
Arabia. Riyad Bank offers a distinctive and comprehensive range of services for women designed to
provide flexibility, convenience, and financial solutions to women. It has a Kingdom wide-network of
81 dedicated ladies’ banking centers across the country and manages highly trained female staff to
cater to its clientele. Among other female specific services, it offers Saudi women a dedicated female
entrepreneur’s fund with an option for training on starting and running a business. As per the annual
report of the bank in 2014; the Riyad Bank has a long term working strategy to expand ladies branches
in the uncaptured parts of the Kingdom. Further, it plans to enlarge and rapidly grow as a bank with
a large customer base. The bank has made all female branches independent with a view to allowing
their female leadership to pursue various business strategies and experiment with different models.
10
CASE STUDY II– TATA Consulting
Services/GE/Aramco - All Women Business
Processing Center
Tata
Consultancy
Services
(TCS)
established the first all-women Business
Processing Center in Riyadh in 2013. The
3,200
square
improved
customers
meter
operational
in
facility
offers
efficiency
services
to
including
specialized finance, accounting, human
resource
outsourcing,
supply
chain
management, information technology,
and enterprise data management to
enhance operational efficiency in over
Figure 2 Women Working TATA training facility
fifty countries. The center will create up to 3,000 local jobs for Saudi women within the next three
years. The goal of the center is to harness the potential of Saudi women and partner in the Kingdom’s
transformation journey towards a knowledge-based economy and create large scale job opportunities
and enable up-skilling of talent in the region.
Some of the clients the center is currently serving include General Electric, Saudi Aramco, Saudi
Telecom Company, and the Ministry of Economy and Planning. The center already has over 1000
employees and has already gained some prestigious awards for its effectiveness and efficiency
including the 2016 Top Employer in the Kingdom of Saudi Arabia and the Middle East awarded by
the Top Employers Institute. In September 2014, Saudi Aramco, GE and Tata Consultancy Services
(TCS) inaugurated the Global Operations Center in Riyadh Saudi Arabia. Over 100 dignitaries from
Saudi government entities and business executives from the client companies attended the center
inauguration. Over 70% of the recruits are Saudi nationals, mostly fresh graduates from King Saud
University, Princess Noura University, Imam University and others.
11
CASE STUDY III– 3M (Minnesota Mining &
Manufacturing)
The American firm Minnesota Mining and Manufacturing (3M) has factories in Riyadh. As a business,
3M is committed to having a highly diversified team of employees and takes all possible measures to
actively recruit female professionals in the Kingdom. As per our interview with the head of human
resources at 3M for the MENA region; the company had 3 females working (out of 140 total) at their
office in Riyadh and plans to expand its female workforce in the near future. Notably, the company
has made contacts with other businesses and female-specific recruitment firms to provide a boost to
female employment as a “social responsibility initiative.” The company also executes some of the best
practices mentioned in the next section of the report. It provides support to its female employees and
organizes family gatherings in order to maintain an inclusive and welcoming environment.
However, in spite of its best efforts, the company faces challenges in employing more females. Firstly,
it is not possible to hire women in strong leadership positions as cultural norms make it nearly
impossible for women to make business connections outside the company, which means it would be
harmful for 3M to send female employees to meet with clients and government officials regularly.
Secondly, even if 3M was willing to send a delegation of women to enter into business deals; it faces
practical problems, such as the lack of female restrooms in certain offices. Thirdly, employing women
at factories and field facilities is not possible due to the legal requirements and the lack of skilled
female employees who are willing to work away from cities.
Figure 3 Logo of 3M Women in Leadership Network
12
BEST PRACTICIES
This section of the report includes best practices that companies operating in Saudi Arabia can utilize
to increase female participation in the workforce, while remaining within the existing legal, political,
and policy framework. Our team’s recommendations include tools such as, skill assessments,
education and training for female job seekers—both the jobless and the incumbent worker—with an
ultimate goal of job placement. The recommendations are divided into three categories: improving
internal processes in order to boost recruitment of Saudi women; providing suggestions to overcome
external cultural limitations; and specifying ways to create opportunities for a strong path forward.
DIVERSIFY RECRUITMENT STRATIGIES
Expanding where firms post openings, utilizing recritment agencies, and using targeted
hiring can open avenues to women who haven’t found success in traditional paths to
employment. In order to increase their outreach capabilities, companies must utilize all possible
resources available. Building a women-focused marketing plan is key in achieving these goals. This
could mean concentrating on female employment groups, female-focused social media accounts,
training facilitates, and local websites to advertise any vacant positions.
Partnering with recruitment agencies like Glowork, the very first-women only recruitment agency, can
give firms access to hundreds of job-seekers. Glowork designs and implements programs that support
access to employement through increased awareness, skills training, and direct job placement activities.
They were recently tapped by the Ministry of Labor to help reduce female unemployment rates.
Glowork conducted hundredes of interviews matching job seekers to employers on behalf of the Saudi
government.24
Recruitment agencies can also be used to tailor their company’s message and develop targeted hiring
requirements. This partnership can facilitate a first source referral system that serves as a pipeline of
qualified female workers. This could be used in the development of a proper job description for
vacancy postings. Employers must clearly specify woman as the targets of the position, while
remaining as broad as possible in describing the competencies and experiences needed for the job.
24
Zavis, Alexandra. 2015. "Saudi women find ways into the workplace." Los Angeles Times, July 20.
13
They could also construct generous employment packages that include accamodations, support
systems, health and leave benefits, paid maternity leave, mentoring and coaching programs, as well as
interesting and challenging work. Competitive employee-benefit packages have shown to attract, retain
and motivate skilled employees, which contributes to boosting over-all productivity and growth.
REVISE HUMAN RESOURCE POLICIES & PROCEDURES
Onboarding is an essential and necessary part of the hiring process. Employers should ensure
that existing company-wide policies are presented, as well as establish an access point for
ongoing information. Every phase with a new employee is important, from before they begin their
job, through their first month, to the successful completion of their first year. This is a great
opportunity to introduce new hires to the company culture and give them an opportunity to adjust to
the social and performance aspect of their professional role. They can be exposed to policies that
explain the culture of working in a mixed-gender environment by outlining rules, regulations and rights
they may have as an employee as well as gain an understanding of the fundamental guidelines
regulating employee and employer interactions. If employers are to produce tangible results for their
female workers, they must address issues that matter to them. Therefore, highlighting any procedures
related to benefits, mechanisms for advancement, education and training, as well as establishing
grievance policies, are some examples of ways of empowering employees.
REVERSE JOB FAIRS
Organize reverse job fairs to give firms an opportunity for their recruiters to sell the company
to skilled-workers from the community. Efforts to address the regional skill gap are an ongoing
process that requires new thinking and creativity. By turning the traditional job fair format on its head,
the focus shifts from potential employees to employers. This new format puts job-ready, job-seeking
Saudi females behind the booths with a stack of their resumes, allowing employers to circulate among
the qualified candidates; giving employers the opportunity to engage with interesting, skilled, and
knowledgeable applicants. Not only will this increase visibility of these women to the firms, but there
is less of a financial and logistical burden as compared to traditional job fairs (e.g., no registration fee
or booth costs, no heavy lifting of exhibit signage.) Firms will also have the benefit of interviewing
groups of candidates who they know are pre-qualified, based on the initial vetting stages. For example,
any applicant that may have passed a respected certification program, or received a certain type of
degree. Since jobseekers are the focus of the event, it makes standing out easier among a smaller pool
14
of candidates (13-15 in each event.) This relaxed and informal atmosphere is an opportune way of
fostering better partnerships and meaningful conversation.
PROVIDE ACCOMMATIONS
The cultural barriers limiting women’s mobility can be overcome by providing car services,
creating a reimbursement program, and through the creative use of technology. Saudi Arabia’s
limitation on female drivers has played a major role in reducing employment opportunities. To
overcome this limitation, companies can facilitate mobility by commissioning a taxi or bus service that
shuttles their female employees to and from the worksite; or by capitalizing on the growing popularity
of smartphone-based services like Uber and its regional competitor Careem. Their increasing
popularity boasts an 80% female clientele.25 Through a reimbursement program for individual rides,
they can facilitate transportation and increase independence.
Besides transportation, female workers must overcome the structural limitations in the workplace. By
strengthening their mobile environment, firms can offer opportunities to telework, use conferencing
services for meetings, and offer flex hours to accommodate all employees. This would overcome the
physical need for creating different office spaces or building separate facilitates like day care centers
or meeting rooms. By providing women with an opportunity to work from home, they can encourage
comfort, productivity, and boost female participation.
PROMOTE FAMILY INCLUSION
Lack of family support is a major hurdle that prevents women’s employment. Therefore,
including them in the on-boarding process would play a major role in overcoming this
limitation. During interviews with our team, employees, employers and professionals working in
Saudi Arabia all expressed the importance of incorporating an employee’s family in the onboarding
process to increase the acceptance of the female’s family. This can be done by hosting workshops,
seminars, or ‘family day’ events that focus on the company’s mission and vision, the work
environment, and the female employee’s job role. The goal of these events is to highlight company
15
products, de-mystify the environment within a western company, and create a platform that spurs
dialogue, while increasing cultural awareness for the firm.
ORGANIZE EMPLOYER DIALOGUES
Bring together human resources directors, CEOs, and other top strategists to share the value
of female workers within their departments and explore both working and prospective
strategies they can use to hire and retain more talent. Major area employers can demonstrate the
value of women in the workforce in their key industries to highlight their contributions. Understanding
their value within the company and sharing it internally and externally can boost employee confidence
and cultivate a positive reputation. In order to promote this environment, employers can sponsor
awareness campaigns that highlight the specific achievements of their female workforce. This will be
especially important for those working remotely, because it will demonstrate their contributions
despite the fact that they are not physically present. By promoting these results through companywide resources (such as annual meetings, annual reports, on their website etc.), they can encourage
productivity and create male allies for their female employees.
LEVERAGE CORPORATE, COMMUNITY, & ECONOMIC INVESTMENT
Cultivate private partnerships to bring an assortment of opportunities and resources, while
engaging with the community at large. Another external limitation to female participation has
been the cultural norms against female working outside of the home, and the traditional notion that
women should stay inside the home. One way to overcome this obstacle is through partnerships with
community members. They can recruit local firms to provide investment in building intellectual
capital, as well as resources necessary for overcoming the structural barrier to hiring more women.
These relationships with investors can establish childcare centers through granting licenses and setting
global standards for the operation of these centers. According to labor statistics released by the
Ministry of Labor, there are 350,000 people currently working in the Saudi private sector. The Saudi
government attributes this accomplishment to the existence of educational institutions that cater to
the needs of the labor force.26 Firms can foster a relationship with these training or entrepreneurship
programs to provide job training skills, certification, and courses in desired skill sets. This would not
Arab News. 2016. "350,000 Saudi women are employed in private sector." Arab News, February 29.
Shafy, Samiha
26
16
only create a capable talent pool, a recruitment pipeline for skilled labor as well, but also prepare the
community for the increase in female participation in the workforce.
PROVIDE PROFESSIONAL DEVELOPMENT
Delivering guidance in job and educational choices for female job seekers will help women
job seekers look at their options, identify their skills and training needs to optimize their
opportunities. Successful employers can provide workforce staff assistants with career exploration
opportunities to identify occupational goals, and to guide the worker through the job search process.
Companies like Aramco established the ‘Women in Business’ program that aims to raise awareness
about opportunities for female workers. They generated an environment with a path for meeting
middle and upper management, to expand their network and receive feedback for future growth.27
They can create education advising and a certificate program for female employees.
Firms can raise awareness about the availability of resources, job positions, and professional
development opportunities. They can advertise their short, medium, and long-term talent needs, as
well as publicize the value they place on female employees. The informational questionnaire could
include questions concerning employee awareness of: the wide range of skills and employability of
female employees in the company globally and locally and programs to attract or retain this talent.
The more targeted the outreach (sector specific questions directed at technology, manufacturing, and
defense employees, for example) the more likely respondents will be to provide useful information.
Surveys can be distributed electronically and findings posted in a general location.
CREATE OPPORTUNITTIES FOR UPWARD MOBILITY
Human resource managers can connect their female workers to upper-management through
mentorship programs, networking events, and encourage employee social groups. Equipping
female job-seekers with the right skills and expectations is crucial to facilitating their entry into the
workplace. Employers can provide soft skills training with a focus on motivation, goal-setting and
confidence-building. Oil giant Saudi Aramco, has been a job-generating firm that has multiple women
in executive roles. They realized that getting the right talent would be key in achieving their goal of
becoming the world’s leading integrated energy and chemical company by 2020.28 They taught basic
27
28
Zavis, Alexandra. 2015. "Saudi women find ways into the workplace." Los Angeles Times, July 20.
Ibid.
17
soft skills to build character, self-confidence, resilience, tolerance, flexibility, assertiveness, and
awareness—how to succeed in a male-dominated business. They pulled together female employees,
along with area educators, training providers, and community development groups to examine their
current workforce demographics and skill sets, to project future needs, with an eye on female talent.
The Aramco example demonstrates the importance of creating coaching and/or mentorship programs
to not only build skills, but also create opportunity. Female employees vocalize their desire for building
strong networks. Employers can offer opportunities for cross training; this can be done periodically
where employees rotate across different departments. They can organize brown bag lunches, seminars,
and networking events that bring together employees and upper management. The mentorship
program would be a concrete path towards future growth, because the mentor and mentee can work
together to develop a career plan with projected goals. Every meeting of a new goal increases the
confidence of the employee, demonstrates the firm’s focus on talent development, and increases the
connectivity within the company.
ENGAGE STAKEHOLDERS
Many of the limitations present in current laws, regulations, and mandates are created for the
protection of women, without ever including their voice. Design a task force within the company,
made up of female employees, to facilitate better policies that incorporate actual instead of perceived
needs of their employees. This can be a forum where women are comfortable enough to share their
grievances, offer suggestions, and design strategies for implementation. By including more women in
the conversation, companies can gain more knowledge and design better policies.
18
CONCLUSION
Even though gender diversity in itself is not an end, nor is there one catchall solution, our research
shows that successful gender diversity initiatives do reveal similar patterns and key enablers. Saudi
women’s absence from the workplace has economic, cultural, and productivity ramifications.
Women’s employment can foster the dignity and financial independence that can transform
individuals and families, as well as enable Saudi Arabia to achieve its economic goals. For these positive
changes to be possible, it is crucial that more women enter and remain in the workforce. With a
specific focus on women, we sought to understand where their expectations around recruitment and
workplace benefits might diverge from those of employers, and how the attitudes of each group might
influence women’s participation in the workforce. Four promising areas for reducing barriers to work
emerged: enhancing women’s pathways to a job; equipping job seekers with the right skills and
expectations; focusing workplace benefits and policies on what really matters to women; and
increasing the demand for women employees in the workplace. The findings suggest that there are
tangible steps companies operating in Saudi Arabia, educational institutions, recruitment agencies, and
women themselves can undertake to increase women’s participation in the workforce.
19
REFERENCES
Al Arabiya. “More Women Than Men in Saudi Universities, Says Saudi Ministry,” Saudi Gazette, May
28,
2015,
http://english.alarabiya.net/en/perspective/features/2015/05/28/More-women-than-
men-in-Saudi-universities-says-ministry.html
Aldosari, Hala. “The Saudi National Transformation Program: What’s in it for Women? The Arab Gulf
States Institute in Washington, February 1, 2016, http://www.agsiw.org/the-saudi-nationaltransformation-program-whats-in-it-for-women/.
Al-Ghoson, Huda. 2015. McKinsey&Company. February. http://www.mckinsey.com/globalthemes/leadership/women-leaders-in-the-gulf-the-view-from-saudi-aramco.
Arab News. 2016. "350,000 Saudi women are employed in private sector." Arab News, February 29.
McKinsey and Company. “Saudi Arabia Beyond Oil: The Investment and Productivity
Transformation,”
accessed
March
22,
2016file:///Users/user/Downloads/MGI%20Saudi%20Arabia_Full%20report_December%20201
5%20(3).pdf.
Moghadam, Valentine. “Women, Work, and Family in the Arab Region: Toward Economic
Citizenship,” accessed April 2, 2016 http://www.northeastern.edu/cssh/internationalaffairs/wpcontent/uploads/sites/2/2014/11/Women-work-and-family-Doha.pdf
Saudi Arabia Ministry of Labor Report. “Directory on Women in the Private Sector,” see Appendix
1.
Saudi Arabia Public Opinion Poll. “Participation of Women in National Development,” see appendix
2.
Torchia, Andrew. “Saudi Arabia Presents Plan to Move Beyond Oil,” Reuters, January 25, 2016,
http://www.reuters.com/article/us-saudi-economy-conference-idUSKCN0V32DG
World Economic Forum. The Global Gender Gap Report 2015, accessed April 1, 2016,
http://www3.weforum.org/docs/GGGR2015/cover.pdf
Zavis, Alexandra. 2015. "Banned from driving, Saudi women turn to Uber and other ride-share apps."
Los Angeles Times , May 7.
Zavis, Alexandra. 2015. "Saudi women find ways into the workplace." Los Angeles Times, July 20.
20
APPENDIX
APPENDIX 1
Saudi Arabia Public Opinion Poll (Translated by Noor Butalal)
Brief on the Khadija bint Kowailid Center
Named after Prophet Mohammed’s Wife – she was a businesswoman who mastered the art of trade
and gained access to international markets such as Yemen and the Levant. She was able to compete
with big business men and became the richest merchant in the Arabian Peninsula.
The Jeddah Chamber of Commerce founded the Khadija bint Kowailid center in November of 2004.
Her Royal Highness Princess Adila bint Abdulla Al Saud chairs this center. The board includes a
number of officials in the public and private sectors. The center operates as a link between the private
sector, the government sector and businesswomen in order to remove economic obstacles facing
women and to increase their participation in national development.
Introduction
Development plans in Saudi Arabia have expressed interest in supporting women’s participation but
have faced major significant challenges, especially in the private sector. In order to achieve success in
the participation of women in national development, there must be a combined effort between the
public sector, private sector, media and the Saudi community to support and strengthen women’s
sustainable participation and overcome all obstacles. Therefore, the Jeddah Chamber of Commerce
Khadija bint Kowailid Center in collaboration with the Arab Center for Research and Consulting
Studies conducted a field study in accordance with international standards on the public opinion in
Saudi Arabia regarding the participation of women in national development. More than 3000 random
phone interviews were conducted with both male and female Saudi participants over the age of 18.
The objective of the study was to examine the extent of women’s participation in the labor market
and highlight the factors, which could help increase their participation. The study sought to achieve
the following goals:
1. Define the community’s public opinion on the participation of Saudi women in national
development
2. Define the most important factors affecting the participation of women in the workplace in
an effective and positive manner
3. Analyze the reality of working women in the labor force
4. Define the obstacles faced by women in the labor force
5. Recommend appropriate sustainable solutions to increase the participation of women in
national development
The study is broken down into 2 chapters. First, the working environment for women, this includes:
percentage or working women and job seekers, working full-time and part-time, most favorable
21
working environment for women, community support, impact of the media to raise awareness to
society of women’s issues and the most favorable training methods to improve women’s efficiency
and performance. Second, the constraints faced by women in the workforce, this includes:
transportations allowances and childcare centers.
Methodology
The survey was conducted using a random sample of over 3000 participants of the Saudi community
over the age of 18 – 50% male, 50% female. Participants were from a 5 different areas in Saudi Arabia
across 11 cities based on population ratios.
Chapter 1 Findings
Section A: Working Environment
15% of Saudi women above the age of 18 are employed – this is rather weak when compared
to 60% of males working in the same age group
70% of Saudi working women are between the age of 25-44, 11% between are between the
age of 18-24
38% of women are seeking employment (43% between the ages of 25-34 and 10% over the
age of 45)
The study indicates the government sectors such as the Ministry of Labor and the Ministry of
Civil Service constitute for the highest percentage of working women – 48% of women receive
their jobs through the government sector while 25% of women have found jobs on their own
and 18% through friends and family and 6% through employment offices.
The most important factors that affect women’s decision to accept a job offer: salary offered,
working hours, distance between home and work and transportation to the workplace
66% of sampled participants work in the public sector while 30% work in the private sector.
4% of women were self employed
67% of women are currently employed in the education sector, 8% of women in the business
commercial and marketing sectors, 7% in the health sector and 6% of women in services
sectors
88% of member of the community believe that the adoption of a system of law infringements
in the working environment will have a positive impact of increasing women’s participation in
the labor market
Discrimination in the workplace between males and females on issues such as employment
and training opportunities, promotions, salaries, benefits, allowances and health insurance –
52% of female participants suggested that there is discrimination in the workplace
The vast majority of members of the Saudi society agree that the participation of women
contributes positively to national development – 58% of participants believe that women’s
participation will have a strong positive impact while 32% believe that they will have a positive
impact
22
79% of male participants and 90% of female participants believe that the participation of
women in the labor market will positively contribute to advancing national development
71% of women are currently employed full-time, 29% part-time while 81% of men are
employed full-time and only 19% part-time. In terms of the preferred type of work among
women, 73% said that they would prefer to work part-time rather than full-time
Providing more remote employment would increase the proportion of women in the
workforce – 82% of female participants and 77% of male participants would see this as having
a positive impact on national development
Results of the study indicate that 96% of female participants and 93% of male participants
agree than women should have the ability to participate in decisions when it comes to family
issues. 86% of women and 81% of men agree that women should be engaged in decisions on
the national level.
Section B: Travel
64% of women and 59% of men are not aware of women’s right to travel within Saudi Arabia
without a letter of approval from their guardian
66% of women and 71% of men do not strongly support the travel of women outside Saudi
Arabia without guardian consent
82% of females sampled believe that the influence and support of the guardian with regard to
decision making has a positive effect while 12% said that this had a negative effect
Section C: Communication
The most frequently used means of accessing daily news and ministerial decisions are 80%
TV, 51% local newspapers and 40% online media resources
This section continues to address communication means, if this is useful to your scope of work please let me
know and I can translate what is relevant.
Chapter 2 – Limitations of women joining the workforce
Section A: Transportation
The most commonly used method of transportation among Saudi women is having a personal
driver (48%), 26% of women are driven by their male family members, 12% rent cars and
drivers (taxis) and 4% use transportation offered by their employers
The study demonstrates that both men and women suffer from transportation challenge for
their daily commute – 46% of women face this problem while only 27% face challenged of
transportation
23
Specific problem which women face when it comes to transportation issues are: 41% lack of
availability of transportation from their employer, 38% face issues with having their guardian
drive them to work due to being busy, 25% inability to use private transportation, 22% due to
the rise in transportation costs and 7% due to other family members using the same private
driver
Results indicate that members of the community do not use public transportation due to the
lack of efficiency – 91% of women and 86% of men
Results indicate that if public transportation was efficient, they would be more likely to use it
– 86% of women and 83% of men
Section B: Child Care Centers
Providing child-care centers to take care of children while women are at work positively affect
the participation of women in the workplace – 82% of women said that this would have a
positive effect – the establishment of these centers would encourage women to enter the job
market and enhance their participation in national development
40% of women between the ages of 35-44 believe that the existence of a child care center
would have a positive effect on participation in the workplace while 32% of women between
the ages of 25-34 said this would have the same effect
The most important factors to consider when setting up a child care center, as expressed by
women, are as follows: 26% level of hygiene facilities at the center, 23% efficiency of workers,
13% effective manner in dealing with children, 10% working hours of the center are suitable
to their working schedule, 7% location of center
Recommendations on Chapter 1
1. Update systems and legal practices regarding women’s working environment so that these are
flexible in accordance with different community view points as well as applicable to the nature
of different sectors and professions
2. Employ women in decision making positions such as Ministers, Diplomats and Senior
Members of society
3. Make available job opportunities for Saudi women in different sectors such as sports,
leadership positions in the private sector and the religious courts, nursing and pharmacy
4. Establish a national awareness campaign for women and their guardians on the rights on
women at the workplace and the importance of her participation in national development –
in cooperation with the ministries and the chamber of commerce
5. Create part time and remote employment opportunities for women in order to help them
balance work and family matters – this will be particularly useful, especially due to
transportation challenges and the limited availability of children care centers
6. Implement innovation programs to train women on-the-job to help them to learn work related
tasks in a professional manner or through online interactive training programs
24
7. Implement training programs in the private sector on the nature of the work field in order to
gain practical and realistic experience
Recommendations on Chapter 2
1. Provide safe and efficient public transportation in cities, through the Ministry of
Transportation in order to enable women to attend work and participate in national
development
2. Increase transportation allowances for women through which the private and public sector
share the cost of this allowance as well as the Human Resources Fund
3. Work towards issuing a law to allow women to drive along with the infrastructure required to
implement this – women only driving training schools and awareness campaigns carried out
by the Ministry of Interior and the Ministry of Information
4. Encourage the private sector to invest in the establishment of child care centers through
granting licenses and setting global standards for the operation of these centers – quality
assurance.
25
APPENDIX 2
Ministry of Labor Report: Directory on Women in the Private Sector
Note from Translator: This report is broken down into 7 main sections. I have put together a document translating the
most important points in each of these sections that may be useful for your project purposes.
1. General Notes on women in the Private Sector
The relationship between employer and employee should be documented in the form
of a contract. This contract should document all the employees rights and allowances
(including medical care for the working woman and her dependents)
Maternity leave must be paid by the employer – half of her pay if she has been working
for that employer for less than a year and the full amount if she has been with her
employer longer than a year. The employer should take full responsibility of all medical
expenses during an employee’s pregnancy. The employer may not fire of force
dismissal of the employee during pregnancy
Working hours must not exceed 8 hours per day or more than 48 hours per week.
During the month of Ramadan, working hours should not exceed 6 hours per day or
36 hours per week.
Women should adhere to the dress code – including covering her hair. Women may
be required to wear an organization’s uniform, which should be conservative and also
adhere to the Islamic rules.
Women are prohibited from working at night time (between sunset and sunrise) except
in certain situations such as: Working in the health, education or philanthropic sectors,
Working in the retail sector and some other exemptions.
Women are prohibited from working in certain sectors such as the petrochemical
sector and the field of construction.
2. Requirements for Private Sector organizations employing women
Women should have an exclusive office when working in an organization – designated
to women only: either be located in a completely separate building from the men or a
specific department in the same building for that institution for women only.
The document then details the requirement for women working in different sectors (Accounting, Kitchen
Cooks, Retail) – let me know if you need specific details for any of these in particular
3. Mechanisms of action for women in the Private Sector
Women can be employed either in full time employment, part time employment or be
employed remotely – as specified by their employer
26
Part time employment: Women can be employed for more than one employer at one
time – not for less than 20 hours and more than 24 hours per week for each employer
Working remotely: Counts towards the organizations Saudi-ization requirement. The
requirements for this are that the employee is between the age of 20-35, employee is
registered for Social Insurance, and is a full time employee
4. Penalties
Applied towards all institutions, companies and factories in the private sector
Penalties for violating the employment of teleworking are listed
5. Support and Training for women in the Private Sector
The role/mechanisms of the Human Resources Development Fund Program are as
follows: The program for training support is linked to employment, supports
teleworking employees, operating functions and maintenance contracts, supports the
operation of women in factories, supports small and medium enterprises and part-time
employees
Requirements to qualify for the Human Resources Development Fund Program are
as follows: First, support for the training phase (the fund contributes SR 500 for the
duration of 3 months in exchange for training of female employees as well as 75% of
their monthly wages). Secondly, the fund supports the recruitment phase whereby it
contributes to 2 years following the end of the training phase by paying 50% of the
employee’s wages (not exceeding SR 2000).
The section then details more specifics of these programs offered…
6. Employment Services
Tagat Program offers advanced electronic hiring through a search engine which
connects job seekers to employers through a matchmaking process
Provides suitable job opportunities through specialized electronic (online) job fairs
Employment office available in most areas in Saudi Arabia to ensure access to the
largest number of companies and job seekers through providing fundamental services
for them such as how to construct a strong CV and interview conduct
Tagat recruitment consultant – ensuring that organizations are matched up with
suitable employees
Job fairs offering jobseekers access to required employment tests and other specific
requirements which organizations look for such as computer skills
Employment training centers providing multiple employment services including
providing advice for jobseekers in order to increase their chances of getting hired
27
7. Updating the Directory & Means of Communication
Application of this directory – The Ministry of Labor is to review the effectiveness of
this directory on a regular basis and ensure that it is frequently updated accordingly.
Employers must comply with the contents of this manual.
28
APPENDIX 3
List of U.S. Companies Operating in Saudi Arabia
3M
First Union Bank
Pfizer International
ABB
FLIR Systems, Inc.
Philip Morris
The AES Corporation
Fluor Daniel
Akin, Gump, Strauss, Hauer &
Feld, L.L.P.
American International Group
Ford Motor Company
Phillips Petroleum
Company
PriceWaterhouse Coopers,
L.L.P.
Proctor & Gamble
Amoco
General Dynamics
Corporation
General Electric
Arthur Andersen
Gibson, Dunn & Crutcher
AT&T
Bank of America
Guardian Industries
Halliburton Company
Red Wing Shoe Company,
Inc.
Rock Creek Corporation
The SABRE Group
The Bank of New York
Harris Corporation
SAIC
Bechtel
Holiday Inn
SBC Communications, Inc.
Bell Atlantic
Black & Veatch LLP
IBM
Ingersoll-Rand Company
Samsonite
Shell Chemical Company
The Boeing Company
J.F. Jelenko & Co.
Sikorsky Aircraft
Caltex Petroleum
Corporation
The Carlyle Group
J.P. Morgan
The Chase Manhattan Bank
LeBoeuf, Lamb, Greene
&MacRae, L.L.P.
Litton Industries
Teledyne Brown
Engineering
Templeton International,
Inc.
Texaco Inc.
Chevron Chemical
Company
Chicago Bridge & Iron
Jones Lang LaSalle
Rand Financial Services
Tracor Aerospace Inc.
Lockheed-Martin
Trust Company of the West
CIGNA Corporation
Citicorp
Lucent Technologies Inc.
Marathon Oil Company
The Coca-Cola Company
Marsh & McLennan
TRW, Inc.
Unocal International
Ventures Ltd
Union Carbide Corporation
COLSA International
Conoco Inc.
Merck & Co., Inc.
Mobil Corp.
Deloitte & Touche
Morgan Stanley Dean Witter
VeriFone Inc.
Verner, Liipfert, Bernhard,
McPherson and Hand
Wamar International
29
Delphi Energy & Engine
Management Systems
Duke Engineering &
Services
Eastcom, L.L.C.
Motorola
Westinghouse
M.W. Kellogg Company
Whittaker
WorldSpace Corporation
Eli Lilly and Company
Navistar International
Corporation
Occidental Petroleum
Corporation
PACCAR International
Enron Corp.
Parsons Corporation
Exxon Corporation
Pepsi Cola International
Eastman Chemical E.M.E.A
30
APPENDIX 4
Map of Key Female Executives in Saudi Arabia
First Name
Last Name
Abeer
Al-Hashimi Managing Director
Fullbridge
Abeer
Al-Shaikh
Head of Ladies Banking
Riyad Bank
Al-
Al-Ibrahim
Princess; Assistant Secretary Public
Jawahara
Role
Organization
for Educational Affairs
Accolade
Presidency
Ibrahim
Bayan
Al-Zahran
Lawyer
First Ever Saudi
Mahmoud
Female
Practicing
Lawyer
Haifaa
Al-
Film Director
Director
Mansour
Hayat
Sindi
of Saudi Arabia's first
Wadjda
Investor,
Oscar entry
Scientist, UNESCO
Entrepreneur
Good
First Ever Saudi
Will Female Scientist
Ambassador
for Sciences
Huda
Al-Ghoson
Executive Director of HR
Saudi Aramco
Khwala
Al-
Cancer Specialist
King
Khuraya
Faisal
Specialist
Hospital
and
Research
Centre
Lara
Lubna
Dabis
Olayan
Vice President - Relationship Northern Trust
Manger
Company
CEO
Olyan
Financing
Company
31
Maha
Fitaihi
Board Member
Fitaihi Group
Holding
Company
Manal
Al-Naimi
Thoracic Surgeon
King
Faisal First
Specialist
Female
Thoracic surgeon in
Hospital
and Saudi Arabia
Research
Centre
Mishaal
Ashemimry Founder
MISHAAL
Aerospace
Mona
Al-
Sociologis
Munajjed
Receipient
of
UN
21
Commendation
Award
Muna
Abu
Executive Director
Sulayman
AlWaleed Bin
Talal
Foundation
Nabilah
Al-Tunisi
Northern
Area
Projects Saudi Aramco
Manager
Nahed
Nahid
Taher
Ba-Shatah
CEO
Gulf
One First woman in the
Investment
Gulf to head up an
Bank
investment bank
Journalist and Board Member Saudi Journalist
Association
Nermin
Saad
CEO
Rasha
Saleh
Vice President- Head of Northern Trust
Compliance
Samia
Al-Amoudi Cancer Specialist
Handasiyat.net
Company
Prominent
Health
Care
Advocate
32
Samira
Islam
Scientist
Named
20 -First Saudi Woman
Most influential to hold an official
Women in the position
in
Field of Science World
the
Health
Organization -First
Arab
Woman
nominated
as
UNESCO Scientist
of the Year.
Sara
bint Al-Saud
Princess; Activist; Founder
Al Nahda
Ophthalmologist
King
Faisal
Selwa
Al-Hazzaa
Faisal First ever female
Specialist
Hospital
member
and Saudi
Research
of
the
Arabia
Shoura Council
Centre
Somayya
Jabarti
Editor-in-Chief
Saudi Gazette
First Ever Saudi
Female Editor
Suhaila
Zain
Al- Social Activist and Member
Abdeen
National
Society
for
Human Rights
(NSHR)
Summer
Nasief
Healthcare and Life-Sciences IBM
First Saudi Woman
Industry Executive
to head a blue-chip
company
Thoraya
Obaid
Executive
Director; United
Undersecretary-General
First Saudi Woman
National
to
receive
a
Population
governmental
Fund,
scholarship to study
in the United States
33