Here Is How HR Outsourcing Is Flourishing in UAE

HR Outsourcing Service

UAE’s economy is not limited to its oil and gas industry and tourism, though they do play a big part in it. Also, UAE’s economy was only partially dependent on natural resources or oil extraction. Instead, it is an open market economy with little to no barriers to free-market activity. Thus, the prices of goods and services are determined by a free price system in the country. Moreover, on their aim to be a diversified economy and to not majorly depend on the oil industry, UAE is simultaneously focusing on other sectors like online gaming, etc. Another such booming trade is HR Outsourcing.

Human Resource Outsourcing is a service where an organization hires a professional third-party organization to manage its human resources activities & diverse administrative tasks. These services also enable an organization to enhance the overall HR function while increasing compliance & retaining top talent. According to Markntel Advisors, with UAE government is investing substantially in different industries for the country’s economic diversification away from oil and gas. And it is resulting in opportunities and growth for other sectors, that is, in this case, HR Outsourcing.

Sectors in Need of Human Resource Department

Rapid industrialization has shed some light on the need for departments that glues and sticks the organization together. Human resources have become the backbone of industries, ensuring the organization of the most essential part of a business or an organization, its people. It provides that people are harmonious and with focus, working towards the organization’s goal. From finding, interviewing, recruiting, and training the employee to ensuring that employee relations and benefits are maintained, HR provides all of this.

HR Outsourcing

The increasing number of industries and the burgeoning growth of various sectors within the UAE has brought in the need for maintaining all this sector’s workers to ensure the rigidity and further expansion of the sectors. UAE has recognized this and, thus, brought a particular industry, Human Resource Outsourcing, into play here. Some examples of sectors in need of HR are:

  • Oil and Gas

Oil and gas are the major economic contributor to the country’s economy. Thus, managing all aspects of the industry is a top priority. The workforce also takes precedence on these things to be addressed with the best care possible. HR here ensures that the human capital is maintained and taken care of attentively. Recruiting the best-fitting employee to resolve the employee’s issues in the best interest of the workers and of the organization is done by the HR department.

  • Healthcare

The United Arab Emirates has universal healthcare, where healthcare is provided to all nationals with mandatory health insurance for citizens of other countries. Also, Employers are required to provide their expatriate workers with health insurance. This is also maintained by HR. Additionally, HR comes into play in hospital settings to sustain the work experience and benefits of the employees. Since hospitals’ primary focus is on providing healthcare, they often use HR Outsourcing firms.

  • Hospitality

Hospitality and Tourism are the main amplifiers of the country’s economy. It provides work to millions of businesses and workers. However, to focus primarily on keeping up with the UAE’s standard of hospitality, they often seek outsourced human resource services.

  • BFSI, E-commerce, Retail

Similarly, other sectors, like BFSI, E-commerce, etc., are also opting to maintain their workforce through HR service providers.

The Trend Shaping The HR Outsourcing Businesses

Human resources services providing firms have mastered the art of their craft with experience and integration of advanced technology and more. It has turned into a trend and a wise decision to outsource the HR department and focus on their own business instead of maintaining one of their own by several industries and organizations. Organizations can express their needs and benefit by seeking outsourced HR services. It eliminates the time wasted in handling the HR department independently since they can focus on their goal primarily. Additionally, for start-ups and new companies, HR outsourcing services come as a boon to help them begin things smoothly by taking away the pressure of workforce management.

To Bring Things To a Close,

With the growth of new industries and sectors in UAE, the goal of diversifying the economy is fulfilled. And in a similar line, HR outsourcing services are flourishing, making it the next remunerative sector of the country’s economy.

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