by Ms Uzera Nishat

The Learning and Development (L&D) landscape in the Kingdom of Saudi Arabia (KSA) is undergoing a profound structural shift, driven by the Saudi Vision 2030 - Vision Realization Programs. This movement centers on building a Skill-Based Workforce (SBW), where talent decisions are based on demonstrable skills rather than just degrees or job titles. This shift is strategically aligned to achieve KSA's ambitious economic diversification goals.

1. I. What the Skill-Based Workforce Means for KSA

A skill-based organization operates on a foundation of measurable, standardized skills, creating a transparent "skills currency".

• Focus on Capability, Not Credentials: The emphasis shifts to what an employee can do. This promotes a meritocratic system crucial for engaging the young Saudi workforce.
• Dynamic Skills Frameworks: KSA companies are rapidly adopting standardized skills taxonomies, often guided by government entities. The Ministry of Human Resources and Social Development (HRSD) has established the Saudi Skills Taxonomy and Sectoral Skills Councils to define the specific technical and core skills needed across priority sectors.
• Agility and Mobility: By mapping employee skills, organizations can quickly identify and deploy talent across projects and functions, enhancing overall organizational agility.

1. Impact on Corporate Culture and Saudization

The SBW model is introducing a meritocratic and growth-oriented culture, fundamentally supporting the nationalization policy.

• Meritocracy and Growth: Career progression becomes skills-driven, meaning advancement is directly tied to acquiring and demonstrating high-demand competencies. This fosters a culture of proactive, lifelong learning, a core pillar of the Human Capability Development Program (HCDP).
• Quality Saudization: SBW ensures that the Nitaqat policy focuses on quality. The emphasis shifts to qualifying Saudi citizens with the high-level technical and specialized skills needed in priority sectors. This is supported by HRSD's initiatives to classify work permits by skill categories.

III. Transforming Workforce Planning (WP) For KSA organizations, SBW transforms Workforce Planning into a strategic, data-driven function.

• Precise Gap Analysis: Companies use skills data, often leveraging the Saudi Skills Taxonomy and Sectoral Skills Councils frameworks, to conduct precise workforce analysis. This identifies where current skills fall short of future business goals.
• Targeted Investment: This precision allows organizations to optimize L&D budgets by funding training only for the most critical skill gaps, ensuring investment is aligned with high-demand areas like digital expertise and core capabilities. Government-funded platforms like Doroob (provided by HRDF) offer free e-training to support this upskilling of the national workforce.
• Skills-First Hiring: WP incorporates a "skills-first" approach, using competency frameworks and AI-powered assessments to objectively measure job-relevant skills when hiring Saudi nationals, ensuring long-term sustainability and quality.

The shift to an SBW is a direct response to the national drive to build a competitive, knowledge-based economy, moving L&D from an operational task to a strategic function that builds future capability. References

• [1.1] Human Capability Development Program (HCDP) - National Portal
• [1.2] Saudi Vision 2030 - Vision Realization Programs
• [1.4] Human Capability Development Program Delivery Plan
• [2.1] Doroob for E-learning - Establishments | HRDF
• [2.3] Training Courses - Doroob - Individuals | Hadf
• [3.1] Sectoral Skills Councils – HRSD
• [3.3] Skills and Training Programs | HRSD
• [4.2] Skills and occupations | HRSD
• [4.4] Guidelines for Classification of Work Permits by Skill Categories
• [5.2] Nitaqat Mutawar Program | HRSD