HR Digitalization in the UAE: What to expect in the coming 5 years?

In the ‘Digital HR Survey 2020: PwC Middle East,’ 55% of respondents reported believing that HR’s biggest contribution to digital transformation is digitalising HR processes.

Do you think HR digitalization is just transitioning HR functions from paper-based systems to digital systems? If yes, read on!

The Difference between HR Digitization and HR Digitalization
Digitization in HR primarily involves the conversion of analog or paper-based HR processes, records, and documents into digital formats. On the other hand, the concept of HR digitalization goes far beyond this. It involves a more comprehensive and strategic transformation of HR functions through the use of advanced digital technologies. These can be artificial intelligence (AI), data analytics, cloud-based platforms, and more.

UAE Workforce Model: A Journey from Traditional to Transformational
Before the advent of the digital revolution that reshaped economies worldwide, the UAE, like most of the countries primarily operated within a traditional workforce paradigm. A model that placed emphasis on in-person interactions, manual procedures, and hierarchical organizational structure. While job stability and security were highly valued, the concept of upskilling and professional development was minimal. With a rapidly growing young workforce, the traditional system proved ill-suited to handle the sheer volume of new entrants every year.
Cut to 2023! The UAE’s commitment to technological advancement and innovation, as outlined in its Vision 2030, has encouraged a significant shift toward HR digitalization. The country has not only started embracing digital technologies but is aligning its workforce practices with the demands of the contemporary global economy.
However, in light of these transformative shifts, it’s noteworthy that 76% of workers in the UAE either changed jobs in the previous year or intend to do so in the next 12 months.
⁽¹⁾ This statistic highlights the pressing need for organizations to work more aggressively in adapting and investing in strategies that cater to the evolving HR policies and needs of the modern workforce.

Trends that will shape the coming 5 years of HR in the UAE 
“Digitisation, talent, and the future of work” have been identified as the immediate priorities for HR executives. (Creating People Advantage 2021: The Future of People Management Priorities) In line with this and some other studies, we have listed down the trends that will shape the future.

1.Employee-Centric Culture
This trend is shaping the future of HR not only in the UAE but also globally. HR departments are increasingly focusing on enhancing the overall employee experience. This includes creating a work environment that is more inclusive, diverse, supportive, and engaging. This also involves prioritizing employees’ well-being, development, and work experience. This is not only a humane approach but also a strategic imperative for long-term growth and competitiveness.
To cultivate an employee-centric culture, advanced technologies such as HRMS, EXPs, AI, and HR analytics will become indispensable. These tools will help streamline HR processes, offer personalized experiences, and provide insights for tailored benefits and career development. Collaboration and communication platforms will ensure connectivity, while well-being applications will help in supporting employees’ physical and mental health.

2. (Redefined) Business Resilience
The significance of resilience became evident in 2020, prompting organizations to prioritize concepts like business continuity and crisis management. In the Middle East, authorities such as the UAE’s NCEMA and Saudi Arabia’s SAMA, introduced guidelines to standardise and improve resilience.
In the coming years, it will not be sufficient to view resilience as a checkbox exercise. Instead, it will be about integration of multiple resilience disciplines, such as business continuity, crisis management, supply chain, IT disaster recovery, and cyber security.  For this, it will be imperative for organizations to avoid working in silos.
It is the adoption of advanced technology that will lead this paradigm shift. First and foremost, cloud-based platforms will enhance the accessibility and flexibility of critical business functions, ensuring continuity during unforeseen events. Data analytics and AI will empower businesses to anticipate and respond to disruptions effectively. Further, collaborative tools will facilitate real-time communication and decision-making, particularly vital in crisis management. Additionally, cybersecurity technologies will help safeguard sensitive data, mitigating risks associated with potential breaches.

3. HR Automation
Automation is one of the most significant digitalization trends in next 5 years. In a Freshworks study, it was found that 9 out of 10 employees in the Middle East find their workplace technology frustrating. Further, the study also pointed out that 56 percent of workers would stay with their company if it invested in automation.
⁽²⁾ Clearly, the future has no space for repetitive and time-consuming tasks.
With the help of Human Resources Management Systems (HRMS) and workflow automation platforms, HR professionals have already started streamlining tasks and enhancing efficiency. And this will only grow in the future. Self-service portals is another facet of automation in HR processes. These portals empower employees by providing easy access to HR services, reducing administrative hurdles, and enhancing overall satisfaction.

4. Upskilling and Reskilling
Upskilling (enhancing existing skills) and reskilling (acquiring entirely new skills) have emerged as significant HR trends in the UAE. These trends highlight a proactive approach to talent development and adaptability in the rapidly evolving job landscape.
Components of AI in human resources will play a crucial role in ensuring that training programs are not only targeted but also adaptable. AI-driven personalized learning tools will help in tailoring educational content based on individual employee performance, skill gaps, and future needs.

5. Flexibility
Remote work culture isn’t a buzz word anymore but is also far from being an outdated concept.  A LinkedIn reports revealed that remote job postings saw an extraordinary increase of 25.2% in May 2023 in the UAE region. ⁽³⁾ To remain competitive and attract top talent, employers will need to prioritize flexibility in the coming years, offering not only remote work opportunities but also granting employees autonomy in shaping their daily tasks and schedules.
Implementing effective remote work HR strategies is essential to ensure the well-being, productivity, and engagement of employees in a virtual environment. Precisely why, technologies like comprehensive HRIS, self-service portals, virtual onboarding solutions, collaboration tools, and employee engagement platforms, will be more pronounced than ever.

Conclusion:
Though the UAE has made commendable strides in embracing HR digitalization, there is still a long way to go, particularly in addressing the challenge of job turnover. The identified trends, such as fostering an employee-centric culture, redefining business resilience, and prioritizing automation and upskilling, provide a roadmap for this long journey.
While the trends and technologies will evolve over the years, what will remain constant is the emphasis placed on employees. The commitment to valuing and empowering employees will continue to be the principle that will shape the future of the UAE’s workforce landscape.
While you reflect on this, let us help you understand how you can navigate the shift towards a digitally-driven HR landscape with intelligent solutions like SAP SuccessFactors. Get in touch for Free Consultation!