Markov Analysis of Saudization in Engineering Companies

Abstract

Saudization (or localization) has been defined as the replacement of the expatriate labor force with a trained and qualified local labor force in a planned manner that will ensure the continuity of work. Today it is considered one of the most challenging objectives facing Saudi Arabian and other Arabian Gulf governmental authorities responsible for planning and managing national human resources. This paper describes the employment environment of engineering companies operating in Saudi Arabia and explores how the Markov Chain can be used to analyze the employment of Saudi engineers in such companies. Engineering companies need to improve the retention level of Saudi engineers at the individual level, especially in the first two years of employment. The method suggested here may prove useful in evaluating saudization policy. It may also be used by engineering companies anywhere in the world to analyze and evaluate their employment policy.