It is hoped that the survey findings will help employers evaluate and improve their approach to recruiting Saudi graduates.
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- Norma Lucas
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2 Employment of young Saudi nationals is a top priority for the country and for companies at all levels. Despite the slower economic growth due to the fall in the oil price, there is still competition between employers for attracting, recruiting and retaining the best Saudi graduates. This research study was conducted by GulfTalent, the Middle East s leading online recruitment firm for professionals, in collaboration with King Fahd University of Petroleum and Minerals (KFUPM). It summarises the employment preferences of the Saudi graduates surveyed and which companies they would most like to work for. It is hoped that the survey findings will help employers evaluate and improve their approach to recruiting Saudi graduates. GulfTalent All rights reserved. 1
3 GulfTalent would like to thank the students and administration of King Fahd University of Petroleum and Minerals (KFUPM) for their support and enthusiastic participation in this research initiative. 2
4 Survey Population by Subject of Study By Graduate s Region of Origin This research report is based on GulfTalent s survey of 224 recent graduates and final-year students of King Fahd Universtiy of Petroleum and Minerals (KFUPM). KFUPM is the leading engineering university in Saudi Arabia, with a diverse pool of students from different regions of the Kingdom. Natural Sciences Engineering 86% 3% 11% Business By Marital Status Western Region Eastern Province 19% 24% 4% Other Regions 53% Riyadh The survey was conducted during June-July Married 37% Graduates Single Graduates 63% 3
5 Note: No pre-compiled list of employers was presented to survey participants and they were asked to name their preferred employers themselves without prompting. For full details of ranking methodology, see note on methodology page 17. 4
6 Oil & Gas Finance Engineering Conglomerates 1. Aramco 1. Capital Market Authority 1. ABB 1. GE 2. SABIC 2. PwC 2. BAE Systems 2. Siemens 3. Schlumberger 3. SAMA 3. NCMS 4. Sadara 5. Baker Hughes Telecom Technology Aviation 1. STC 1. Huawei 1. Saudi Airlines Consumer Goods Utilities Automotive 1. P&G 1. Saudi Electricity 1. Abdul Latif Jameel 2. Unilever 5
7 Jeddah Dammam Riyadh The top employers of choice remain fairly consistent across the country. In particular, Aramco completely dominates the popularity rankings across the country, irrespective of the graduates region of origin Aramco Aramco Aramco Schlumberger SABIC SABIC SABIC Schlumberger Schlumberger 4 Bechtel Saudi Electricity STC 5 GE GE ABB 6
8 When explicitly asked which types of organisations they would most like to work for, an overwhelming 72% of graduates preferred multinational companies, compared with 17% who wanted to work for government organisations. 17% Government Organisations However, even for graduates favouring multinationals, Aramco and SABIC were still the prime choice, despite being government-owned. Many reported that the pair behave like multinationals, offering excellent training and international opportunities. Multinational Companies 72% 11% Saudi Private Sector 7
9 Comparing this year s results against results of the same survey conducted by GulfTalent over the past decade shows consistent dominance of Aramco and SABIC as the employers of choice for Saudi graduates. Subsequent ranks have changed significantly, however, with banks and consumer goods companies falling in popularity while more engineering firms have risen to the top. Some graduates surveyed cited lack of job security in banking as a key reason for preferring other sectors over banking Aramco Aramco Aramco SABIC SABIC SABIC Saudi Electricity Schlumberger Schlumberger STC GE GE P&G P&G Saudi Electricity Schlumberger Baker Hughes Sadara Unilever Google STC Cisco Chevron Saudi Airlines Samba Halliburton P&G 10 Mobily SATORP ABB 8
10 The interest in government jobs is much higher than in the last decade, but has fallen slightly below its peak a few years ago. 13% 19% 17% Government Organisations Locally-owned private sector firms appear to be the least desirable choice for graduates, attracting only 11%, though this is much higher than 5 years ago in the aftermath of the financial crisis. 19% 68% 6% 75% 11% 72% Saudi Private Sector Multinational Companies The interest in government jobs increased during the past decade following multiple generous pay increases in the public sector. In recent years, this interest has fallen slightly following the government s drive to have more Saudis employed in the private sector
11 What Graduates Look for in their Chosen Employers The survey asked graduates to indicate the main reasons behind their choice of employer. Good Training & Development Interesting & Challenging Work 21% 19% Motivations appear to vary widely, covering 10 different factors. The dominant factors cited by the most number of graduates are: good training, challenging work and attractive salary. Good Salary and Benefits Stability & Job Security Good Company Brand & Reputation Chance to Live & Work Abroad Flexible Hours / Work-Life Balance Clear Path of Progression Great Work Culture 16% 11% 9% 7% 6% 6% 4% 10
12 While overall attraction factors are similar across employer types, their relative contribution to the graduates career decisions vary between multinationals and government entities. Graduates choosing multinationals place an even higher value on challenging work, international exposure and training, compared to the average graduate population. Top attraction factors relative to government Challenging & Interesting Work (+10%*) Chance to Live & Work Abroad (+5%) Multinational Companies Government Organizations Top attraction factors relative to multinationals Good Company Brand (+6%) Stability / Job Security (+5%) By contrast, those mentioning government as their favored work destination place a comparatively higher value on the company s brand, job security and salary. Good Training & Development (+2%) Good Salary & Benefits (+3%) * +10% indicates that 10% more of graduates choosing multinationals cite this factor as a key attraction, compared with graduates who choose government organisations 11
13 The survey found the graduates motivations to be strongly correlated with their marital status. Single Graduates Married Graduates Single graduates are much more likely to choose a company that offers challenging work, good training and a chance to live and work abroad. On the other hand, married graduates are more likely to be attracted to companies with good salaries, work-life balance and a clear path of progression. Top attraction factors relative to married graduates Interesting & Challenging Work (+6%*) Good Training & Development (+3%) Chance to Live & Work Abroad (+2%) Top attraction factors relative to single graduates Good Salary & Benefits (+8%) Flexible Hours / Good Work-Life Balance (+3%) Clear Path of Progression (+3%) * +6% indicates that 6% more of single graduates cite this factor as a key attraction, compared with graduates who are married 12
14 Most graduates report a strong desire for international exposure, with roughly half indicating they would like to live and work outside Saudi Arabia, at least for a few years. This has contributed to the popularity of companies such as GE and P&G, which are perceived to offer overseas opportunities. The US is by far the most popular overseas work destination for Saudi graduates, followed by the UAE and Qatar. Only travel abroad on business trips 34% 15% 44% 7% Most Popular Destinations USA Not interested Work abroad for a few years Permanently relocate 31% UAE Qatar 8% 18% 13
15 The survey explored what factors graduates perceive to contribute the most to their success in securing employment. Perceptions appear to vary widely. Having relevant work experience is viewed by many graduates as the most important factor, followed by relevant subject of education. Having personal connections ( Wasta ) is viewed as a key factor by a significant number of graduates. Relevant Work Experience Relevant Subject of Education Top University Good Interview High Grades Good English Suitable Personality Wasta / Personal Connections 18% 16% 14% 11% 11% 10% 10% 9% Student Activities 1% 14
16 The average starting salary expectation of graduates surveyed stands at 12,000 Saudi Riyals per month. (range 8-18k) 8,000 Riyals 10,000 Riyals 12,000 Riyals Married graduates have a slightly lower median salary expectation at 10,000 Riyals, compared with 12,000 Riyals median expectation of unmarried graduates. The overall average salary expectation shows a 50% increase over the period This is roughly in line with the increase in cost of living, which according to inflation data from the IMF has risen by 55% over this period. 15
17 Nine out of ten graduates are seeking a job after graduation, with less than one-tenth planning further study. 4% of graduates aim to start up on their own. Full-time study 8% 4% Own Business Among those who seek employment, the level of success varies. Two in five single graduates have already secured a job offer by the time of graduation, compared to around one in five married graduates. 88% Seeking a Job after graduation The low employment rate of married graduates may explain their lower salary expectations. Some employers attributed the greater flexibility of unmarried graduates to relocate to different location as a factor contributing to their high employability. Single Graduates Married Graduates Have a job offer on graduation 38% 23% 16
18 Each participant was asked to name the top 3 employers they would most like to work for after graduation. No pre-compiled list of employers was presented to survey participants and they were asked to name their preferred employers themselves without prompting. Subsidiaries that received mentions separately from their parent (e.g. Sadara which is a subsidiary of Aramco) were listed separately. When two different names of the same organization were mentioned, they were added together to determine the overall votes of the organization (e.g. STC and STC Company ) While best efforts have been made to provide an independent, representative picture, the survey results ultimately reflect the opinion of those who participated and may not be representative of all graduates in Saudi Arabia. In particular, as a pre-dominantly engineering university, KFUPM graduates are inevitably more likely to be drawn to engineering firms than those in finance and marketing. If you wish to share your comments or feedback on this report, feel free to write to research@gulftalent.com 17
19 Oil & Gas BP NOV SASREF SATORP Weatherford Halliburton Technology Cisco IBM Oracle Google Microsoft Construction Bechtel Intecsa Fluor Engineering AEC GDC Utilities Marafiq Mining Maaden *These employers received mention by at least some respondents. However, there was insufficient data for them to be reliably ranked. 18
20 Jobs Job opportunities with top employers in Saudi Arabia and across the Middle East. Salary Benchmarking Up-to-date salary data for roles based in the GCC across all industries. Talent Solutions Access to top local and expatriate talent across all job categories Courses Professional courses by top training providers and universities. Employer Branding Solutions to boost brand awareness as an employer of choice Research Latest employment market trends across Gulf countries. 19
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