Developing a talent acquisition strategy framework relevant to your region

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Attracting and retaining top talent is more critical than ever. However, talent acquisition is not a one-size-fits-all endeavour. Regional nuances in economic conditions, industry trends, and cultural expectations demand a tailored approach. Drawing up a talent acquisition strategy framework relevant to the region within which an organisation operates is essential for navigating these complexities.

A particularly pertinent example is the Middle East. The region finds itself amidst a transformative economic phase. Global economic pressures, including a slight decline in predicted growth rates, have led to budget constraints and a reassessment of traditional workforce strategies. Simultaneously, heavy investment in technology and platform transformation is now demanding clear ROI, further emphasising the need for a robust talent acquisition strategy framework. This has led to a growing interest in on-demand talent models, which offer flexibility, cost-effectiveness and access to specialised skills. 

We invited a panel of experts from the region to discuss these complex and rapidly evolving issues. Chaired by Outvise founder and CEO Eusebi Llensa, the panel comprised Abeer Qumsieh, CEO and founder of Khibraty, a remote-first company that connects experts worldwide with the Middle Eastern market; Dr Fatima Al Hashmi, the Head of Human Resources at NIMR, an armoured vehicle manufacturer serving the UAE Ministry of Defense; and Mohammed Fadhel, Strategic Partnerships Advisor at iotsquared, an emerging technology firm based in Saudi Arabia.

These experts, representing those providing and seeking talent in the region, offered significant insights into the prevailing trends, challenges, and opportunities in talent management. Watch the webinar for the complete analysis, or keep reading for a digest of the key takeaways.

A new economic reality in the region

The International Monetary Fund (IMF) has projected a slight deceleration in economic growth for the Middle East, with revised figures hovering around 3%. This adjustment, coupled with global economic headwinds, has prompted a period of fiscal restraint, notably impacting public spending. In Saudi Arabia, for instance, while mega-projects continue to shape the landscape, there’s a discernible focus on containing costs and maximising the value of investments. This has led to a re-evaluation of long-term workforce strategies and a heightened emphasis on cost-efficient solutions.

Budget cuts have become a prevailing theme across various sectors; as Eusebi introduced, the talent market itself has observed certain contractions, noting that the big consultancies are coming with fewer project requests. Nonetheless, this economic backdrop underscores the need for agility in an organisation’s talent acquisition strategy framework. On-demand talent models are emerging as a key strategy to navigate this new reality; by leveraging on-demand talent, businesses can access specialised skills for specific projects, scale their workforce up or down based on demand, and avoid the fixed costs associated with traditional full-time hires. 

Furthermore, the economic context is influencing the talent demands within specific sectors. The growing emphasis on digital transformation and technological innovation has created a surge in demand for experts in areas such as data science, cybersecurity and artificial intelligence (AI). This specialised talent is often scarce and expensive to acquire through traditional recruitment methods, making on-demand talent a valuable resource for businesses seeking to bridge the skills gap.  

This evolving economic reality necessitates a strategic shift in talent management. Organisations in the Middle East must embrace flexible and cost-effective approaches to remain competitive. On-demand talent offers a compelling solution to address these challenges, allowing companies to adapt quickly to changing market conditions and maintain a sustainable workforce. 

The case for on-demand talent in the current context

On-demand talent represents a flexible talent acquisition strategy framework that enables companies to access individuals with specific expertise precisely when and where they are needed. This model encompasses various forms of employment, including freelancers, independent contractors, and temporary workers, offering a departure from traditional full-time hiring practices.  

One key benefit of on-demand talent is its inherent scalability and agility. As Abeer highlighted, it allows businesses to swiftly adjust their workforce in response to evolving project requirements or market dynamics without the long-term commitments associated with permanent employees. This proves particularly valuable in the Middle East’s current economic climate, where companies are seeking ways to optimise resource allocation and reduce overheads.  

Cost-effectiveness is another compelling advantage. By eliminating the need for full-time salaries, benefits and associated overheads, businesses can achieve significant savings and improve their financial efficiency. This is particularly relevant in sectors like technology, marketing and creative industries, where specialised skills are often required to work on short-term projects or specific tasks.  

On-demand talent also provides access to a global pool of expertise, enabling companies to bridge critical skills gaps and drive innovation. This is particularly beneficial in regions like the Middle East, where rapid technological advancements and ambitious projects demand specialised skill sets that may not be readily available within the local talent pool. Equally, integrating on-demand talent can foster knowledge transfer and contribute to the development of internal teams. This creates a win-win situation, where businesses benefit from specialised expertise while simultaneously upskilling their workforce. 

Understanding a diverse region

Several trends are converging to transform how talent is acquired, developed and managed in the Middle East. As the Middle East market matures, short-term work engagements are increasingly accepted, leading to a more robust ecosystem for freelancers and contractors. Technological advancements, particularly the rise of digital platforms facilitating freelance work, have further accelerated this trend. These platforms have made it easier for companies to connect with talent quickly and efficiently, enabling them to adapt to changing market demands and project requirements. 

That said, we must resist the temptation to conflate one Middle Eastern economy with another. The region presents a dynamic and evolving talent landscape, with each country exhibiting unique characteristics and challenges. The UAE, for instance, is experiencing somewhat of a slowdown, as Fatima discussed. Having established itself as a mature market with a growing number of multinational companies, it now faces rising living costs, particularly in urban centres like Dubai and Abu Dhabi. This has led companies to reassess compensation packages and overall spending on talent. In contrast, Jordan demonstrates a robust and growing demand for talent, particularly in the technology sector, all despite growing regional insecurity. Its focus on remote work and cost-effective solutions positions it as an attractive source of talent for both regional and global markets.

The region’s largest economy, Saudi Arabia—with its ambitious mega-projects and development plans—is actively pursuing “Saudization” to cultivate local talent. For businesses, the question “What is the percentage of Saudization?” can be a little tricky to navigate, as it varies by industry. However, as Mohammed explained, companies will continue to strategically source foreign expertise to address skill gaps created by rapid development and emerging industries. There are also reciprocal programmes, such as the MSP Middle East scholarship scheme for Middle Eastern talent looking to study in the Netherlands.

Conversely, Oman has a high demand for foreign talent, yet it faces challenges in attracting newcomers due to its smaller economy and compensation constraints. Nonetheless, global sourcing and remote work models are proving valuable in overcoming these constraints. Qatar, with its sustained demand for talent, is an interesting case study for such a strategy.

These regional variations and evolving trends highlight the need for a strategic and adaptable talent management approach in the Middle East. By understanding the specific challenges and opportunities in each market, companies can effectively leverage the benefits of on-demand talent and build a sustainable workforce for the future.

How do you set an on-demand talent strategy?

However, a common mindset united these perspectives: an effective talent acquisition strategy framework in the Middle East necessitates a thoughtful combination of full-time employees and on-demand talent. This blended model allows companies to optimise resources, scale operations efficiently, and meet project needs without the financial burden of maintaining a large permanent workforce.

Integrating on-demand talent effectively requires careful consideration of several factors. Cultural onboarding is essential to ensure that on-demand talent aligns with the company’s values, processes, and work environment. This can involve providing access to training programmes and resources that facilitate a smooth transition and foster a sense of belonging. Equally, pairing on-demand talent with full-time employees can facilitate the exchange of knowledge and skills, benefiting both individuals and the organisation as a whole. Companies should establish clear mechanisms for knowledge sharing and collaboration to maximise the value of on-demand talent. 

Performance management is also crucial for ensuring that on-demand talent contributes effectively to the company’s goals. HR is paramount in this process; as Fatima outlined, NIMR’s approach ensures that HR departments are actively involved in sourcing, onboarding, and performance management of on-demand talent. This ensures that these individuals are treated equitably, morale is high, and they’re motivated, productive workers. This collaborative approach helps the company leverage the full potential of on-demand talent—indeed, they may even become full-time hires, especially in a niche operation like NIMR.

Building a sustainable talent pipeline

Despite the particularities of the current global economic reality and each nation’s unique needs, building a robust talent pipeline is crucial for long-term success. This involves a multifaceted approach, including investing in education and training, partnering with universities, and creating apprenticeship programmes. Meanwhile, on-demand talent can also be a valuable resource.

Investing in education can help develop local talent and equip individuals with the skills needed to meet the evolving demands of the job market. Indeed, the Saudis are ahead of the curve with Saudization. By partnering with universities and providing access to specialised training courses, workshops, and online learning platforms, public and private sector organisations alike can ensure their future talent needs are met. It goes without saying that focusing on areas like AI is advisable.

On-demand talent can also significantly contribute to building a robust talent pipeline. By working alongside experienced professionals from diverse backgrounds, full-time employees can gain valuable insights and enhance their own skill sets. This knowledge transfer can contribute to developing internal talent and create a more skilled and adaptable workforce. Furthermore, companies can leverage on-demand talent to pilot new projects or initiatives, providing opportunities for internal employees to gain experience in emerging areas. This can help build internal expertise and prepare the workforce for future challenges.

The future of talent acquisition in the Middle East

The trends discussed have significant long-term implications for the future of every organisation’s talent acquisition strategy framework. As the region continues to experience rapid economic and technological advancements, the demand for specialised skills and flexible workforce solutions is expected to intensify.

Technology will undoubtedly play a pivotal role in shaping this future; digital platforms and online marketplaces are already transforming how companies connect with and manage on-demand talent. This trend will likely accelerate, with AI and machine learning further automating and streamlining talent acquisition and management processes. The rise of remote work and the increasing acceptance of hybrid work models will also contribute to the evolution of talent management. This will enable companies to access a global talent pool and leverage the benefits of a geographically dispersed workforce. 

The ongoing competition for talent in the region, particularly in specialised fields, will further drive the adoption of on-demand talent solutions. Countries like the UAE and Saudi Arabia are already implementing innovative strategies to attract and retain top talent, including offering golden visas and citizenship plans. This heightened competition will require companies to adapt their talent management strategies and embrace new approaches to effectively integrate and manage a blended workforce.

Beyond the squeeze and toward a bright future

The Middle East is experiencing a significant shift in its talent landscape, driven by economic changes, technological advancements, and evolving talent needs. On-demand talent has emerged as a valuable solution for companies seeking to navigate this changing environment, offering flexibility, cost-effectiveness, and access to sought-after specialists.

This discussion highlights the importance of adopting a strategic and adaptable approach to developing a talent acquisition strategy framework. Companies must effectively integrate on-demand talent into their workforce, ensuring cultural onboarding, knowledge transfer and performance management. It is also crucial to build a robust talent pipeline through investments in education and training, partnerships with universities, and apprenticeship programmes.

Highly accelerated technological, geopolitical, and economic forces will shape the future of talent management in the Middle East. By embracing these trends and adopting a proactive and flexible approach, businesses in the region can position themselves for success in the years to come. Get started with Outvise.