The report explores six key themes: delivering strategic flow; being digital in thought; word and deed; advancing analytics from insight to action – safely; shopping for talent — building talent marketplaces; holding to the heading — how to make purpose real and prioritizing wellbeing.

“Our interactions with global experts suggest that companies are now prioritizing bold people strategies as a crucial element in achieving a competitive edge, especially during the current period of the Great Reconsideration,” said Niam Sinno, Head of People and Change Advisory at KPMG Professional Services.

Saudi Arabia has been introducing initiatives to build the capabilities needed for its marketplace, and one of the latest initiatives is the HR Transformation Initiative by the Ministry of Human Resources and Social Development (MHRSD).

The initiative aims to update all HR departments in ministries into a new management style by qualifying their employees with professional certificates in the field of human resources and supporting the departments in terms of developing processes and structuring to ensure raising the level of growth. It strives to better enable HR functions to contribute to achieving the objectives of government entities.

Additionally, the ministry has issued a standardized organization of the working environment to keep pace with the latest developments in the labor market. The decision intends to create an attractive and safe work environment, provide decent and sustainable job opportunities for the citizens, enhance the attractiveness of the work environment and address the challenges that workers and employers face.

One of the many HR trends is the shift towards artificial intelligence (AI) and HR cloud. Various manual and inefficient HR processes are already being automated to ease administrative loads.

A wide range of aspects has benefited from AI technology, from report generation to decision-making processes. In the years to come, companies expect these HR trends in Saudi Arabia to grow and have a greater impact on HR industries.

Another HR trend in the country is the focus on data-driven decisions. As the role of HR professionals is changing, they are increasingly required to think strategically. Data such as compensation raises must be analyzed to ensure the business’s return on investment (ROI) isn’t affected.

“Saudi Arabia’s economic landscape increasingly involves HR professionals in strategic and financial discussions. With market insights, data, metrics, and benchmarks, HR teams are challenged to assist in workforce skills development,” commented Sinno.

Insight from KPMG experts on the metaverse suggests that people could spend more time in the metaverse than in real life by 2030. This propels HR to revisit service delivery in extended reality, creating a total experience for all stakeholders.

“As our community continues to be impacted by global economic uncertainty, HR must stand tall and support its employees. It is time organizations introspect and plan for the future, embracing the support of scientifically driven approaches while upholding their company values,” Sinno concluded.