Driving innovation and growth in the UAE is vital to the WE the UAE 2031 vision of building a competitive, diversified, and high-value 'Forward Economy.' However, the UAE's biggest problem in achieving this is its skill gaps. The use of outsourced workers in UAE-based companies has become the answer, and it has inadvertently impacted other areas of their businesses.
Let's have a look at the positive change UAE businesses are seeing from workforce outsourcing. And why we believe this trend is set to continue.
Outsourced workers bring top talent to the region.
The UAE openly encourages market investment and innovation. It also recognises that to achieve this, it will need to temporarily plug skill gaps while nurturing grass-roots programs.
Pro-business reforms are one solution, attracting foreign investment and relaxing visa regulations, allowing talent to relocate and work more freely in the region.
Outsourced partners, like us, mselect, who specialise in skilled contingent workers, are another solution. We already have a trained workforce easily adaptable for staffing several sector specialisms. This has made company growth easier for our clients.
One big consideration for choosing us is our understanding of the Ministry of Human Resources and Emiratisation (MOHRE) employment laws, which specify the number of nationals required to be employed in a company operating in the UAE. Our ability to navigate this for companies means they can fix their skill-based problems while remaining compliant.
Outsourced workers cut the cost of hiring.
The cost of hiring new staff varies widely from low-level jobs to management or leadership roles and will depend on a broad framework of
Direct costs:
● Advertising costs (e.g., job postings, social media ads)
● Recruitment agency fees
● Candidate screening expenses (e.g., background checks, assessments)
● Onboarding costs (e.g., training, equipment, paperwork)
Indirect costs:
● Time spent by HR staff on recruitment activities
● Lost productivity due to vacant positions
● The cost of a bad hire (e.g., training, turnover costs)
● The opportunity cost of not filling the position promptly
By outsourcing, UAE companies or those expanding to the region avoid all of these costs, which are covered by agent tender agreements or monthly plans. This is an attractive proposition for existing businesses and startups in the region.
Outsourced workers tackle competitiveness quickly.
To become locally and globally competitive, businesses in the UAE need to adapt and thrive quickly in their respective sectors. The best way to tackle this is by bringing in the right talent at the right time in the right positions. Outsourcing allows companies to do that quickly.
Outsourcing with the right partner also allows UAE businesses to delegate workforce planning, management, and training without the need to create these specialisms in-house. This is where mselect has already been very effective in the region, and we forecast continued growth among our UAE clients.
Outsourcing with workforce specialists also allows for more effective nearshoring, offshoring and multi-shoring.
The UAE recognises that it is currently one of the more affluent regions in the Middle East, which makes it more cost-prohibitive for some industries. By working with outsourcing specialists with international operations, UAE companies continue to improve their bottom line through nearshoring, offshoring, and multi-shoring.
Economically, this practice has also indirectly benefited the UAE economy through
● Job creation: Logostic and import terminals are one area of growth
● Trade relations: Leading to economic and trade cooperation between the UAE and other countries
● Diversification: Moving away from a focus on oil and gas.
Outsourcing has its place in building and expanding new sectors that benefit the UAE economy. The UAE's own Emiratisation policy suggests that it also sees the benefit of an outsourced workforce.
Are you considering outsourced workers for your UAE company?
Contact our Dubai team today to discuss how outsourced workers can contribute to your growth in the UAE market.