Talent Management and Development in the United Arab Emirates

Abstract

The Problem

Although there is a surge in research on Talent management and talent development (hence forward TMD) practices across different regions, most of what we know about these topics in the United Arab Emirates (UAE) is based on government and practitioners’ reports. Nowadays, UAE is going through unprecedented times of growth. Organizations are operating in a diverse environment created by a smart government vision and practical policies that allowed the UAE to be labeled as a talent magnet destination. Still, TMD activities seem to be influenced by a two-tier system, one for Emirati nationals and another for expatriates. The question is whether the UAE is able to continue its growth through current TMD practices or whether a more strategic approach is needed to address the current TMD challenges and to meet the needs of individuals and of organizations.

The Solution

The purpose of this article is to provide an overview of professionals’ perspectives in different sectors about (a) the government policies, (b) current activities, and (c) challenges and contextual factors that affect the current state of TMD in the country. Once we understand the different policies, activities, and challenges, practitioners and leaders can use TMD as a source of power, or a strategy, that can lead people and organizations into success.

The Stakeholders

Human resources and organization development experts working in international contexts, administrators in academic institutions, and leaders in government organizations interested in HRD in the context of the UAE, will find the information presented in this study useful.

Keywords

talent management and talent development UAE human resources development

Introduction

The term talent became popular among organizational leaders and scholars in the late nineties and has traditionally focused on talent management (TM; Michaels, Handfield-Jones, & Axelrod, 2001). In recent years, the focus on talent development (TD) increasingly became a popular topic in human resource development (HRD) literature (Ardichvili & Dirani, 2017). Talent development represents an important component of the overall talent management process (Cappelli, 2011). Despite the popularity of TM and TD among practitioners and scholars, both terms are still ambiguous, lack a clear definition, and lack clear boundaries and scope (Mehdiabadi & Li, 2016; Tarique & Schuler, 2010). For this study, we used Collings and Mellahi’s (2009) deﬁnition of talent management as

activities and processes that involve the systematic identiﬁcation of key positions which differentially contribute to the organization’s sustainable competitive advantage, the development of a talent pool of high potential and high performing incumbents to ﬁll these roles, and the development of a differentiated human resource architecture to facilitate ﬁlling these positions with competent incumbents and to ensure their continued commitment to the organization. (p. 304)

Similarly, we borrowed Garavan, Carbery, and Rock’s (2012) definition of talent development as

the planning, selection and implementation of development strategies for the entire talent pool to ensure that the organization has both the current and future supply of talent to meet strategic objectives and that development activities are aligned with organizational talent management processes. (p. 6)

For the purpose of this article, henceforth TM and TD will be referred to as talent management and talent development (TMD).

To emphasize the importance of talent in organizations, McKinsey consultants coined the phrase, “war on talent” in the late 1990s (Tarique & Schuler, 2010). Today, organizations realize the importance of TMD as an important factor to remain competitive. Although in the last 10 years, financial market instability and uncertainty have resulted in disruption and job losses (McDonnell & Burgess, 2013), TMD have gained a greater strategic role within organizations (Zagelmeyer, 2013). Leaders strategically recognize the importance for their organizations to be labeled as talent magnets. Thus, they make significant investments in TMD. They invest considerable time and resources in planning and implementing activities related to TMD (Machado, 2015). Organizations become talent magnets either by acquisition and replacement (external) or by planned succession (internal; Gandz, 2006). In particular, organizations either focus on talent acquisition from the external labor market for short-term advantages, or focus on developing employees from within the organization for longer sustainable advantages (Ardichvili & Dirani, 2017).

Although scholars in management and HRD fields have called for more TMD research in international contexts (Hartmann, Feisel, & Schober, 2010), research studies on TMD remain fragmented and underdeveloped (Collings & Mellahi, 2009; Metcalfe & Mimouni, 2011; Tarique & Schuler, 2010). Therefore, it is critical for scholars and practitioners to have a better understanding of the processes of TMD in an organization, and in highlighting the importance for organizations of having robust processes in place that support TMD (Farndale, Scullion, & Sparrow, 2010). As a result, the purpose of this study is to provide an understanding of how one country is winning the war on talent through (a) exploring contextual factors that support or impede TMD and (b) highlighting the TMD practices in organizations in different sectors of the United Arab Emirates (UAE).

Literature Review

Over the past 20 years, TMD has become top priority for organizations. Researchers have highlighted the importance of TMD in the workplace (Farndale et al., 2010; Mehdiabadi & Li, 2016). Some scholars viewed TMD as the only human resource (HR) strategy for some organizations (Kontoghiorghes & Frangou, 2009). Others viewed TMD as an important mechanism for unlocking leadership potential (Mehdiabadi & Li, 2016) and as an organization’s internal pipeline to supply skills and competencies to build a sustainable future (Nilsson & Ellström, 2012). Researchers also stressed the importance of TMD as a mechanism through which organizations can nurture employee creativity, support entrepreneurial instincts, and explore new skill sets (Michaels et al., 2001).

A quick review of the literature results in discovery of different expressions and terminologies related to talent in different countries around the world (Farndale et al., 2010). Some of these expressions expressed in the literature include acquisition, management, development, wars, magnets, raids, shortage, metrics, retention, concerns, and strategy. Global competition, shortage of highly talented and skilled employees, and lack of understanding the process of TMD have made finding and retaining talented employees a major priority for organizations (Gallardo-Gallardo, Dries, & González-Cruz, 2013). Garavan and colleagues (2012) indicated that HRD, in addition to HR and human resource management (HRM; Donnelly & Dowling, 2010), are key in the strategic management and development of talent in organizations.

Global Talent Management and Development

Geographic boundaries have become increasingly permeable, with talent considerations being a key factor in the decision of where organizations locate their operations (Kim & McLean, 2012). These changes in global market conditions have lead organizations to develop robust global talent management and development strategies that help organizations attract and retain the best talent (McDonnell & Burgess, 2013). Tarique and Schuler (2010) defined global TMD as “systematically utilizing international HRM policies and practices to attract, develop, and retain individuals with high levels of human capital (e.g., competency, personality, motivation) consistent with the strategic directions of the multinational enterprise in a dynamic, highly competitive, and global environment” (p. 124). This deﬁnition focuses more on the micro (individual) and meso (organizational) levels of global TMD (McDonnell & Burgess, 2013). Other scholars have highlighted the importance of the macro (national) aspect of global TMD (Khilji, Tarique, & Schuler, 2015). Countries across the world have realized the importance of TMD and utilized different strategies to attract or develop talent (Mendenhall et al., 2012; Tarique & Schuler, 2010). Ragazzi (2014) suggested that some governments have developed immigrant-friendly policies (e.g., Australia and Canada), others have developed strategies to bring back their expatriates (e.g., China and India), and some have invested in homegrown talent through education and HRD of their own citizens (e.g., Turkey, Singapore, South Korea).

The macroview of global TMD also includes nongovernmental organizational activities that aim to attract and develop talent. Those activities reach beyond a single organization and its HRM or development activities. The macroview

draws attention to complexity of the environment within which organizations develop their talent management systems, and individuals make career choices. It incorporates cross border ﬂow of talent, diaspora mobility, and government policies to attract, grow, develop and retain the talent nationally for innovation and competitiveness, which facilitates talent management activities within organizations. (Khilji et al., 2015, p. 237)

At the micro- and mesolevels, researchers viewed the process of global TMD as an enduring, stable concept worthy of investment. Kesler (2002) suggested that global TMD required a steady, ongoing commitment with discipline, decisiveness, and responsible risk taking. Kim and McLean (2012) advocated for a systematic approach to global TMD championed by HRD practitioners with clear roles and responsibilities. They suggested that a systematic global TMD approach would result in individual and organizational benefits, provided that the system takes account of cultural differences. Tarique and Shuler (2010) identified several barriers to global TMD initiatives including (a) upper management time investment in TMD, (b) organizational structures in different contexts, (c) middle management buy in and participation on TMD, (d) lack in employee performance, (e) HR competencies to handle TMD challenges, and (f) limited managerial ability to make right decisions on TMD. Overcoming those deficiencies is key to any successful global TMD strategy.

UAE Context

In a span of 50 years, the UAE has transitioned from an economically poor nation with a problematic water supply to a wealthy, advanced nation (Bristol-Rhys, 2010). Oil and gas revenues have provided the financial rock bed for the country. Today, the UAE’s economy is renowned not only for oil and gas but also for success in different sectors, such as airlines, water ports, tourism, banking, and real estate segments. The United Nation’s Human Development Index for UAE puts the country at the same level with Europe.

The development of the UAE has been relatively rapid. As the oil industry became economically viable in the 1970s, the shortage of Emiratis to fill the numerous jobs created by the nascent oil industry opened the door for expatriates from all over the world to flood the country, to fill the newly created jobs, in turn making the UAE one of the world’s most demographically diverse countries and creating the world’s highest ratio of expatriates to nationals (9:1; Hodgson & Hanson, 2014). Of the 9.5 million people living in the UAE, only 1.1 million or approximately 12% are native citizens of the country, whereas the remaining 88% of the population is composed of expatriate workers.

In the 1990s, to address low private sector workforce participation among citizens, the government initiated a workforce nationalization program known as Emiratization. The program was intended to encourage private sector employers to hire Emiratis and equip Emirati workers with the skills necessary to successfully compete in the private sector (Al-Waqfi & Forstenlechner, 2014; Daleure, 2017). Al-Waqfi and Forstenlechner (2014) reported that Emiratization was comprised of two parts: (a) government policy that encourages private employers to consider UAE nationals as candidates for open positions and (b) government-provided training and career support to assist nationals in becoming effective private sector employees. Daleure (2017) suggested that in UAE, private enterprises of certain sizes in certain industries and economic zones were expected to meet the established government targets for the percentage of Emiratis employed. Daleure concluded that although the success of Emiratization has been mixed, the government has suggested Emiratization should be expanded.

A relatively recent government-initiated change was the 2010 introduction of an extensive knowledge and human capital initiative under the auspices of the national agenda, known as Vision 2021 (Ulrichsen, 2017). Embedded within Vision 2021 was a plan to develop “a knowledge-based economy in which growth is driven by research, development, and innovation and the creation of internationally competitive high value-added economic sectors” (Ulrichsen, 2017, p. 125). It is worth mentioning that due to several economic and social factors, retention of expatriates in UAE is highest among neighboring countries (Daleure, 2017). In 2017, the percentage of expatriates within the country who wished to remain in the country was 72% compared with 59% for Kuwait and around 50 % for rest of gulf commonwealth countries (GCC; Ulrichsen, 2017).

Overview of UAE global talent competency index

The global talent competitiveness index (GTCI; Lanvin & Evans, 2014) defined talent competitiveness as a set of policies and practices that enable a country to attract, develop, and retain human capital that contributes to its productivity (Lanvin & Evans, 2014). GTCI framework had six themes including enable, attract, grow, retain, labor and vocational skills, and global knowledge. Lanvin and Evans (2014) examined and presented actionable recommendations for talent management and development for countries around the world. They provided recommendations regarding efforts to address labor market inefficiencies and development of national talent to drive long-term sustainability.

For UAE, the country ranked 22nd out of the 93 countries on the GTCI index, and first among the Middle East and North Africa (MENA) countries. GTCI classified the UAE as a high-income economy. According to GTCI, UAE’s strengths included its favorable environment of enablers and its ability to attract top-quality foreign talents (Vision 2021, n.d.). In contrast, UAE’s weakness was the difficulty to grow and retain local talents.

Compared with other MENA countries, the UAE markedly outperformed its regional average across all GTCI pillars (attract, grow, retain enablers). It compared favorably against its income group (Qatar and Saudi Arabia) in terms of providing an environment of enablers, and in its ability to attract talents. The UAE ranked fourth out of all 93 countries under the attract pillar and ranked in third place for external openness. The UAE ranked first among MENA countries in migration openness, further demonstrating UAE’s successful abilities to attract and retain external labor. However, in terms of tolerance to minorities, the UAE scored below average compared with other MENA countries.

Technology absorption

Firm-level technology absorption demonstrates the business communities’ rapid adoption and absorption of new technologies. According to GTCI, UAE ranked in the top 10 among GTCI countries on firm-level technology absorption. This suggests that firms have the leadership, managerial talent, and technical talent to manage technological change. Still, the UAE scored low on talent impact, which measures innovation output, new product entrepreneurial activity, new business density, and sophistication of exports. This indicates that entrepreneurship is developing at a slow pace despite tremendous efforts to establish an inviting ecosystem in the UAE through the proliferation of technology and investment parks, small and medium enterprise (SME) incubators, and innovation and entrepreneurship funds.

Women workforce development

As for women participation in the workforce, the GTCI (Lanvin & Evans, 2014) report indicated that enrollment of women in tertiary jobs was 76%. Labor force participation by women in the country was only 34%, whereas board seats held by women in the UAE was just 1.2% (see also Omair, 2010). The report explained that some organizations were trying to increase the number of women in the labor force. For example, the UAE’s aerospace manufacturing firm, STRATA, has located itself in a regional city with a strong university engineering program, so that its female employees can remain living with their families. More than a quarter of STRATA’s workforce is female, and 83% of its UAE national workforce is female.

In a study on Emirati women, Omair (2010) produced a typology of careers of women in the UAE. She distinguished four categories of career development: progressive career, moderate career, facilitated career, and idealistic career. Omair argued that TMD for women faced gender-based barriers, which varied depending on the social status of the women’s family background. Marmenout and Lirio (2014) examined how local Emirati women navigate workforce participation. They identified four main challenges for women pursuing careers in the UAE. These challenges included societal norms, family formation, primary commitment to family, and the need to maintain modesty.

Nationals versus expatriate workforce in the UAE

For this work, the term “nationals” represents all Emirati citizens who carry the UAE nationality. However, the term “expatriates” represents all other individuals who live and work in the UAE but are not citizens. Expatriates may include individuals who were born in UAE to non-UAE nationals, or those who arrived to the UAE seeking work opportunities. As mentioned earlier, 1.1 million or approximately 12% are nationals, whereas the remaining 88% of the population are expatriates. The nationals are generally wealthy and control the government sector, whereas expatriates dominate the private sector.

Sidani and Al Ariss (2014) suggested that TMD processes exist in the UAE, but there seemed to be a two-tier system, one for nationals and one for expatriates. They suggested that although HR departments take part in the TMD responsibility, a critical role is handed to leaders and managers. They also suggested that companies face different sets of challenges when it comes to TMD processes.

For expatriates, companies hire foreign employees whom they believe have the skills and are ready to perform. However, companies were more patient with nationals and seemed to spend effort and time to develop their talent than they would with expatriates (Sidani & Al Ariss, 2014). Sidani and Al Ariss also suggested that traditional management styles in the UAE posed an impediment to the development of genuine TMD processes. They also noted a difference in motivation for development between nationals and expatriates.

To facilitate integration of nationals into private companies, the government started to provide incentives in the form of grants to private companies to employ nationals (Sidani & Thornberry, 2013). These costs were designed to cover training and development costs, pension schemes, and to bring nationals’ earnings closer to public sector rates (Ulrichsen, 2017). Ulrichsen reported that the government provided young nationals with preferential loans to set up their own businesses and paid special attention to the issue of education and training of nationals. This resulted in UAE achieving substantial progress in education in the last decade (Daleure, 2017). But due to the limited coordination between education sector (talent development) and economic and labor markets (talent management), educational systems have particularly failed to provide an adequate number of accountants, business managers, engineers, computer specialists, doctors, nurses, or teachers (Sidani & Thornberry, 2013).

Traditional versus strategic TMD

Most companies in the UAE employed traditional TMD approaches rather than using a strategic TMD paradigm (Haladay, Sergio, Opulencia, & Antiado, 2016). Haladay and colleagues also reported that HR managers were not able to fully implement TMD as a strategic tool but rather were working on transitioning to this practice in the future. They believed the reason was due to the transient nature of the labor pool and the rapidly changing nature of business in the UAE. Haladay and colleagues suggested that the primary challenges faced by HR managers included (a) high turnover and low retention, (b) regional cultural practices affecting HR policies and procedures, and (c) operating in various economic zones within the UAE. Singh and Sharma (2015) pointed out that the strategies adopted by organizations were either short term, where organizations provided monetary benefits to their employees for their performance, or long term, where employees were more interested in the growth of their organization. Long-term strategies gave employees a sense of job security, because when organizations grow, there are less chances of cutting down on the workforce.

Higher education

Education in the UAE is having promising opportunities but facing unique challenges with major reforms undergoing. The state educational system has been emulating the most advanced systems in the world for a long time. In recent decades, education in the UAE not only was tied with a Western-oriented modernization but also has undergone some customization in the educational plan with four pillars: (a) to improve students’ experience and attainment at all levels, (b) to improve the quality and professionalism among educators, (c) to ensure higher standards at an international level, and (d) to ensure greater accountability within the education sector (Warner & Burton, 2017).

Fresh graduates in the UAE

Attracting, retaining, and developing top graduate talent is a key objective for many employers in the UAE. Although much of the recruitment in the UAE is focused on experienced hires, employers who seek to develop long-term talents in the country maintain an active program of recruiting fresh graduates, both nationals and expatriates, from the country’s universities. In a recent survey by GulfTalent (2016) with university graduates, the findings provided stark differences between expatriates and nationals. First, male graduates were more attracted to multinational and technical firms and female graduates were more likely to choose working for government organizations. Second, expatriate graduates’ top choices for work were multinational organizations (91%). However, Emirati graduates chose government entities (63%). Third, the top four dominant factors for choosing an employer were interesting work, good training and development, reputable brand, and good salary and benefits. Fourth, graduates choosing multinationals placed a high value on training, international exposure, and brand reputation. By contrast, those mentioning government as their favored work destination placed a comparatively higher value on job security, work–life balance, and working in an Islamic environment. Finally, the salary expectations varied dramatically based on graduates’ nationality. Expatriate graduates expected a salary of Arab Emirates Dirham (AED) 9,000 per month. By contrast, Emirati graduates expected a salary of AED 27,000, or 3 times their expatriate classmates.

Based on the above literature, this qualitative study will provide an understanding of how the war on talent is being fought in the UAE. The scope of this study is (a) exploring contextual factors that support or impede TMD and (b) highlighting the processes of TMD in different organizational settings in UAE.

Method and Design

The current body of literature on TMD in UAE is comprised primarily of individual case studies of reports gathered by national governments or international organizations, where quality and reliability can vary signiﬁcantly. This study provided a comprehensive perspective from three sectors, business, academia, and government. Thus, to address the research focus, we followed a qualitative approach comprised of in-depth interviews that allow us to answer “how” and “why” questions related to TMD practices (Creswell, 2014). We conducted a total of 18 semistructured, key-informant interviews with business senior managers (n = 8), academic administrators (n = 6), and government HR administrators (n = 4). Of the 18 interviews, 14 were in Dubai and four in Abu Dhabi. Thirteen interviews were with male managers and five were with female managers. All interviews were conducted in 2017.

Content analysis was employed to analyze the data (Merriam, 2009). Approaches to data analysis recommended by Merriam and Tisdell (2015) and Guba and Lincoln (1989) were rigorously adhered to. Member checking was employed with participants to enhance internal consistency.

Results

In this section, we present individual perspectives on (a) TMD-related practices and (b) contextual factors that affect these practices within three sectors in the UAE. We start with results from interviews with eight individuals working in business organizations, followed by results from interviews with six administrators in academia, and end with results from interviews with four HR administrators who worked in government agencies.

TMD in Business Sector

Eight managers from the business industry were interviewed. The following themes emerged from these interviews that reflect contextual factors affecting TMD and current TMD practices.

Contextual factors affecting TMD

The following themes reflect the factors that affect TMD in the business sector.

Western practices and cultural challenges

All eight interviewees described the majority of their TMD practices utilized were Western in origin. For example, one training and development manager explained that they were an “ISO verified department,” meaning they followed European standardization practice. She discussed her organization’s Western continuous improvement practices, such as reviewing process flowcharts every 6 months and seeking opportunities to introduce automation.

One of the main challenges to implementing a Western TMD process was cultural in nature. Three managers reported that their businesses faced a shortage of internal data collection, and that it was harder for them to assess the progress of their employees. One manager explained that his organization’s UAE branch “had the lowest survey response rate of all regions.” He believed that the low response rate was attributed to not only language and technology limitations but also cultural differences as the survey was distributed to employees by someone other than their supervisors. In his opinion, that way of survey distribution signaled that the survey was not of great importance. Another manager shared a different cultural challenge to TMD practices. She believed that the perception in her organization was that some Emiratis were less comfortable in workplaces with a multinational employee population as compared with a local employee population.

One manager informed us that his organization had opted against adapting its corporate culture to the local context. This particular organization prides itself on its egalitarianism. By design, they have a “open no-office floor plan” and intentionally use of the word “associate” to refer to employees. He commented that he thought of his organization as a living organism. He continued to explain that “we have a strong organizational culture and employees who work for this organization either fully commit to the company culture or leave.” In addition, he indicated that commitment to the company was high “because turnover is very low” and that “associates do buy into the organizational culture and we believe in our growth within the company. With respect to talent development, when ready, we can move laterally or vertically and the company encourages us to take new projects.”

Expatriates versus nationals

All eight interviewees expressed a keen awareness of the differences between expatriate and national populations. The practices organizations used to develop employees often differed depending on whether the employees were expatriates or nationals. One manager indicated that “[while] expatriates are typically employed on a relatively short contractual basis of two-to-three years, nationals typically may choose to work at a given organization for many years.” Developing nationals has proven difficult for the majority of organizations we interviewed. All managers expressed difficulty in recruiting nationals, in identifying qualified national candidates, or both. One HR leader noted “Emiratis do not necessarily have meaningful incentives to professionally develop themselves for certain careers.” For example, given so few nationals who espouse interest in the careers available at one of the organizations we visited, the organization perceived its 15% government-mandated Emiratization quota as unachievable.

Despite the difficulties, one manager indicated that her organization had been successful in recruiting and developing Emirati nationals. This organization placed a major emphasis on hiring nationals due to the organization’s quasi-governmental status. A third of this organization’s employees were Emirati. She commented that “we believe in growing the nation from the outside in and in transfer of knowledge and skills from the expatriate workforce to the Emirati workforce.” Yet, this organization expressed less urgency to develop expatriates.

HR practices

One revealing piece of information from our interviewees was the shift in HR practices from transactional to strategic. Every manager we interviewed gave examples of how HR was making changes to become a strategic partner in the organization. One interviewee commented “in the region, HR has been viewed as administrative in focus, our leadership team is actively working to change the narrative by transforming HR into a strategic organizational partner.” Another interviewee stated “in our HR department, we are evolving and professionalizing, transitioning from an emphasis on administration and discipline to focus on talent development and becoming the facilitators of leadership discussions and decision-making.”

Talent management and development practices

Talent management and talent development (TMD), according to all eight interviewees, tended to follow a Western model and was well structured in both instructor-led and e-learning formats. Five interviewees reported that their organizations tended to follow the employee development models adopted by multinational organizations. This means a more global TMD approach to the process. For example, one interviewee informed us that at his global organization, talent development in the field office “was based on global strategies and included benchmark practices in talent selection, such as using pre-employment assessments to specifically target ideal candidates for well-defined positions.” Another interviewee noted that in his organization, they focused on “increasing employee engagement through training, mentoring, and diversity.” In addition, he informed us that talent and leadership development followed clearly designed, closely tracked, guidelines, and similar to the recruiting process, included the use of assessments to determine development opportunities that best fit for leadership roles. The interviewee added that their TMD included leadership tracks as well as technical tracks.

Another interviewee informed us that, in her organization, they followed standard employee development practices utilized by many organizations in the West. One interviewee informed us that in her organization they recognized “a local gap in talent for candidates knowledgeable in our business, so we created an Academy program to develop high potential hires for key roles.”

At one organization, talent development was provided based on an employee’s role and business need. The interviewee informed us that her organization “promotes job shadowing, which is considered to be an organic, personalized way of learning.” She added that her organization removed its “performance review system and adopted the check-in process so to provide ongoing feedback.”

Another interviewee informed us that his organization took a long-term approach to employee development, he stated that “employee development consists of 70% on-the-job learning, 20% coaching, and 10% formal training. Employees have the opportunity to move from one role to another role relatively quickly and employees are encouraged to take roles in different functional areas.” In that organization, 360 feedback is practiced, and mentoring is offered. In addition, there was an online training platform for functional and soft skill training, and employees taught the courses.

Other TMD practices often found in Western organizations and were mentioned by our interviewees included internship programs, e-learning, instructor-led training, scholarships, sponsorships, expatriate to national mentoring, and coaching for senior managers.

UAE Higher Education Institutions

Universities in UAE are providing high standard education to students coming from all around the world, regardless of color, race, and gender. This may be due, in large part, to the diversity that exists on college campuses we visited. The following themes related to factors affecting TMD emerged based on our interviews with six academic administrators.

Innovation through entrepreneurship

One innovative component to TMD in any economy is through entrepreneurship. One interviewee informed us that “we take aspiring entrepreneurs on a journey with university’s help and support as students establish their businesses.” Another interviewee informed us that their entrepreneurship program “aims to help inspire and support innovative ideas with its four main ‘pillars’: Inspire, Learn, the Accelerator program and Grow.”

As for collaboration with different organizations, three interviewees informed us that their universities “collaborated with the Emirati Entrepreneurs Association,” which is a unique entrepreneurship program that also provided students with networking opportunities with people who share similar ambitions. Another interviewee stated that her “department is closely tied with the best business schools in the world as well as strong connections with regional and international government and private institutions.” Thus, students have many opportunities to collaborate and learn from the best.

Faculty experiences

Based on our interviewees, their experiences reflected both the state of education and employment in the UAE. Part of working in higher education in the UAE is being an employee in an environment feeling as a visitor. Another theme that emerged from our interview results was the perception about faculty. Almost all interviewees suggested that the perception about faculty members is primarily as a teacher rather than a researcher. Three administrators confirmed that faculty members’ division of time in their institutions did not require or support research. Yet, there was hope that this is changing. One administrator stated that “our business school has a focus on teaching. But it is moving towards research gradually.”

One administrator informed us that training extends to helping prepare faculty for teaching and interacting with students from various cultures and backgrounds. He stated that “with between 80 to 100 reported nationalities being educated together presents potential for challenges in the learning environment.” Yet, all interviewees agreed that cultural competency training was not conducted in a consistent manner across all universities.

UAE practices versus Western ideals

Diversity

Unlike Western higher education institutions, in the UAE, diversity is not a goal but rather a reality. The student body in academia is comprised of various students with different nationalities. One administrator informed us that “85% of the students are international students, and they are from more than 100 nationalities.”

The mixing of genders in the learning environment is another comparison that is notable. Our interviewees informed us that gender integration was commonly practiced at their universities. One administrator commented that

in the US it is uncommon to find a university classroom that does not have gender integrated classrooms. Yet in the UAE and other Arab countries, gender segregation remains a common practice. The act of mixing genders is seen as progressive and sometimes radical.

Security and insecurity

Security and insecurity were considered in terms of being able to feel secure in employment and living/learning in the UAE. Despite the default diversity, the inclusion of non-Emiratis into the UAE is not a goal or option. The lack of inclusion is multifaceted. One administrator commented that, “Identity issue may exist for students, [because of a] lack of belonging, [students] not sure how to define themselves on nationality.” Students’ identity and sense of belonging in the UAE compared with the United States is less achievable. The United States is comprised of various hyphen identities that also can claim “American.” In the UAE, however, to be Emirati, one must be born Emirati. This identity for faculty and other expatriates resulted in various perspectives. One administrator commented that “Expats feel they are guests in the country rather than feeling they belong in the country. Expats’ short-term contracts make them feel insecure.” Being on a contract that can easily be terminated is an insecure position that does not provide stability for people. This is also true for people nearing the end of their career. One interviewee commented that

once retired, I am no longer able to stay in the UAE. There is no past and likely no future for non-workers in Dubai that are not Emirati. The nationality is not something a person can apply for or earn or be born into outside of family lineage.

Government Organizations

Most UAE government agencies concerned with TMD work on one or more of the following goals: (a) work toward regulating the labor market through legislation, policy making, enforcement, and partnerships, (b) work to promote the participation of UAE nationals in employment, and (c) work to attract and retain international talent. Four government officials from four government agencies were interviewed. The following themes on factors affecting TMD practices emerged from these interviews.

Vision and plan

The UAE government had short-term and long-term visions that strategically affect TMD. For example, a short-term vision called Vision of 2021 and a long-term vision for the future called Vision of 2071, both mentioned by all four interviewees. One interviewee enthusiastically commented that “Vision 2071 and planning ahead are valuable and help anticipate and develop according to what is need to achieve long term goals.” But another official, was more pragmatic about vision 2071. He commented that “action steps that are measurable and achievable are equally important than just planning past the lifespan of many citizens, thus people could be asking, what about right now?”

In planning to meet the UAE Vision 2021, one interviewee noted that “the UAE government renamed part of our agency from ‘Labor’ to ‘Human Resources’ as the implementation of protecting low-skilled workers has completed. Now the focus shifts to having more high-skilled workers.” The idea of having high-skilled workers indicated higher wages, which can also attract Emiratis to the workplace as it becomes possible to compete with Emiratis original wages. In addition, one interviewee mentioned that

the UAE government also looked at other countries’ best practices such as Singapore, Germany and USA. Many of us believe that the openness and willingness of learning and accepting ideas from other countries will benefit and strengthen the future of the UAE.

Employee protection systems

According to our interviewees, their agencies were using a newly developed wage protection system, so they “have visibility to what employees are paid to verify payments and match salary stated in employment contracts on file.” One interviewee believed that the turnover rate was relatively high in the UAE because of the ease to recruit from abroad. Another interviewee noted that “there is a lot of internal labor mobility within the UAE that expatriates are moving from one company to another.” To change this trend, interviewees informed us that the government was implementing new strategies to attract talented expatriates. Some of these strategies included developing occupational standards, tests, and certifications; and increasing wages. In addition, one interviewee mentioned “a risk-based system is developed to protect workers. It is used to categorize companies into five levels based on percentage of women, wages of employees, and number of labor disputes.” As the UAE is the leader of Gulf Cooperation Council (GCC) considering workers safety, the protection starts from the recruitment stage. The government monitors companies to assure the resources are well used.

Gender equality

Another goal for the government was gender equality. Three interviewees mentioned that their agencies have been focusing on women quality. One interview commented that his agency was “working hard to support and improve women’s experiences in businesses.” Another female interviewee commented that “as a country with a long tradition that women are not supposed to work in the private sector, it is a difficult situation that we are trying to tackle.” All four interviewees agreed that it might take a longer period before the UAE reached real gender equality based on Western equality understandings and standards.

TMD practices

Interview results provided the following theme as a TMD practice in government agencies.

Coaching and mentoring

All four interviewees agreed that their government agencies geared their coaching and mentoring efforts toward Emirati nationals. For example, one interviewee explained that

when Emiratis need career guidance, my agency would offer professional services to help them develop a career blueprint. The services are: taking an assessment, receiving one-on-one interview and diagnosis, structuring specific plans for their development, and getting a follow-up on their career.

Although these agencies are designed to serve Emirati nationals, a mature and dedicated expatriate workforce was needed to guide the less experienced local workers. “This is where the expatriates play a vital role in the growth of the UAE,” as one interviewee commented. He added, “providing mentorship to the Emirati workforce is essential in achieving Emiratization in accordance with the government’s vision 2030.”

Career development

As for career development, two interviewees detailed their agencies’ programs and initiatives intended to attract, develop, and retain the right human talent to meet the demands of Emiratization within her organization. One interviewee explained that “newly hired employees are assigned a mentor for guidance and development.” Furthermore, she proudly stated that “the career development section provides custom made courses from top business schools such as Wharton, Magill, and Harvard to ensure selected employees are provided the academic strengths needed for success.” Another interviewee described his agency’s career development activities that they used to motivate employees, including “empowerment, delegation of tasks from leadership, confidence/competence building activities, and designing a working environment that provides enrichment and fulfillment.”

Discussion and Implications for Practice and Research

As a young country, the UAE is experiencing a speedy progression and development of financial wealth and infrastructure. Therefore, the question is presented as follows: Are UAE organizations attracting, hiring, developing, and retaining people needed to sustain such rapid growth? Results from this study provided information on why UAE is considered a talent magnet, and shed light on current TMD practices in different sectors.

This study proved that Emiratization played a significant role in all aspects of talent management and development practices. It provided evidence that government organizations, businesses, and academic institutions have implemented several initiatives to encourage the development of the local population’s knowledge, skills, abilities, and attitudes to aid in the fulfillment of the leadership’s vision of a strong and fruitful Emirati workforce. But, the government’s drive to transfer knowledge and skills to Emiratis from expatriates had created two groups of audiences within the different sectors. Organizations hire expatriates through acquisition and replacement (external) with the needed skills and only minimal and necessary employee development concerns. At the same time, the Emiratis working for the same organizations receive the bulk of the employee development (internal planned succession).

The current policies and procedures for the two employee audiences have resulted in a two-tier system for employee TMD. The first tier was mainly concerned with attracting and managing talented expatriates. The second tier focused on Emirati nationals where more TD activities took place. This system seemed to be working fine, but a deeper look into the two tiers showed a strategic gap particularly with the challenge of identity for expatriate vs. nationals.

The study showed organizations have had difficulty attracting Emirati nationals, and that Emiratis do not necessarily have meaningful incentives to professionally develop for certain kinds of work. Although Emiratis are encouraged to work in the private sector, there seems to be little incentive or mechanism for holding Emiratis accountable for their professional development and performance. It is perceived that Emiratis find private sector work to lack reward.

As for expatriates, this study showed that they considered themselves as visitors in UAE. Their stay in the country would always feel temporary, and, thus, the sense of belonging will not be attained. At the same time, Emirati nationals treated many expatriates as visitors and considered that expatriates’ presence in the country to be temporarily to achieve a limited purpose. As a result, it will be hard for UAE to become a melting pot unless integration of the two tiers happens. As is, the future in the UAE is not necessarily part of the future plans for people who are temporarily working. The insecurity of employment, yet the security experienced while living in the UAE, is a dichotomous experience for many expatriates.

The second discovery from this study was the implementation of Western TMD practices in business organizations. These practices are championed by leaders and HR directors who are looking at TMD from a strategic point of view. Thus, HRD researchers and practitioners have the potential to be facilitative as HR practices in the UAE evolve to be more strategic and greater emphasis is placed on TMD. In addition, more research to guide managers in leading and developing their teams is also needed.

This research should be attentive to the wide variety of expatriate nationalities contributing to the UAE’s multicultural context. de Waal and Frijns (2016) reported that the UAE is in a transition with Western business culture to enable a more robust environment to generate organizational success. However, results from this study suggested that a variation to the Western practices would be helpful to ensure acceptance in the Arab culture. HRD practitioners leading TMD interventions have to take into account the context of the UAE. Organizations need to tailor their practices to reflect the Emirati context and be sensitive to the various ways for how “business” is conducted. If we take career development initiatives, HRD practitioners working in the UAE could devise different career plans for both expatriates and the national workforce. Catering for the needs of these two subsections allows HRD practitioners to address their different needs and specific situations, which, in turn, might lead to a decrease in expatriate turnover and an increase in national retention and attraction.

This study moves away from using theoretical frameworks validated in a Western context to confirm which types of TMD interventions are applicable in the UAE culture. Although such frameworks are instrumental in HRD practice, they might fail to guide practice, or have not been validated in different contexts and systems. Still, this study had some limitations. Conducting more in-depth interviews with leaders in different sectors could provide a clearer picture of TMD practices in UAE and provide a deeper understanding of the challenges that face organizations implementing those practices. Alternatively, a quantitative approach to answering the research questions might provide more generalizable data that could prove beneficial to organizations. This will also address the lack of scholarly articles on the indigenous processes of TMD practice in UAE and will decrease the reliance on Western explanations of the local practices of TMD using Western representations of traditional and current TMD paradigms.

In summary, TMD in the UAE is a complex process. In addition to the contextual and global factors that affect the implantation of TMD interventions, organizations need to navigate between their needs, the talent pool they attract (nationals vs. expatriates), and the policies that govern the TMD processes.

Footnotes

Declaration of Conflicting Interests

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding

The author(s) received no financial support for the research, authorship, and/or publication of this article.

Author Biography

Khalil M. Dirani is an associate professor and program chair for Education and Human Resource Development Program (EHRD) at Texas A&M University. His research focus is on international HRD, talent and leadership development, learning organizations, and transfer of learning practices and theories across cultures. His articles have appeared in research and professional publications such as Human Resource Development Quarterly, Human Resource Development International, International Human Resource Management, and European Journal for Training & Development.

Eric Bowman is pursuing a doctoral degree in human resource development at Texas A&M University. He previously earned a Bachelor of Science degree in psychology from Brigham Young University as well as an M.B.A. in human resource management and organization development from the University of Dallas. He is the Talent Manager for the Texas A&M Foundation. His research interests include performance measurement and management, nonprofit management, adult education, organizational learning, and leadership.

Thomas Guyer is a Senior HR Director and Executive Coach working and living in the United Arab Emirates. His professional interests include servant leadership, organization development, change management, and international HR. He earned his Masters’ degree from Texas A&M University in EHRD.

Richard A. Kasper is a master’s student in the Department of Education Administration and Human Resource Development at Texas A&M University. He earned his bachelor’s degree in Agriculture Economics from Texas A&M University and is the President of Kasper Insurance Group and a consultant on employee benefit and Medicare options.

Yasmeen Makarem is a PhD candidate in the Department of Educational Administration and Human Resource Development at Texas A&M University. Her research interests include career development, STEM and critical and feminist approaches to HRD. She earned her masters’ degree in Human Resource Management from the American University of Beirut.

Sarah M. Ray is a PhD candidate in Educational Human Resource Development with a specialization in Adult Education at Texas A&M. Her research interests include dispositions for social justice, global adult education, entrepreneurialism, higher education workplaces and feminist perspectives.

Chih-Wei Wang is a PhD student in Human Resource Development program at Texas A&M University. Her research interests include coaching, knowledge management, conflict management, and professional development design. She holds an MBA degree in International Business from Yuan Ze University in Taiwan.

Lei Xie is a PhD candidate in the Department of Educational Administration and Human Resource Development at Texas A&M University. His research interests include conflict management, servant leadership, organizational learning/change, knowledge management, learning organization, and International HRD. He earned his Masters’ degree from Texas A&M University in EHRD.

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