Adjusting domestic labor quota to balance HR market: SMASCO CEO

Abdullah Al-Timyat, CEO of Saudi Manpower Solutions Co. (SMASCO) 

The Ministry of Human Resources and Social Development (HRSD) decision to amend the minimum labor criteria for domestic support workers aims to balance supply and demand in the market, which will benefit all HR companies, said Abdullah Altimyat, CEO of Saudi Manpower Solutions Co. (SMASCO).

In an interview with Argaam, he said the company is set to benefit from such a balance to achieve sustainable growth due to its huge market share.

He indicated that SMASCO is committed to maintaining rates exceeding the required levels both before and after the adjustment. The company is currently ranked in the highest category, with more than 15,000 domestic support workers.

Altimyat said that given the decision and the number of workers employed by the company, it does not entail any additional obligations, whether in the support workers, or the professional and business workers segments.

The CEO also pointed out that the decision is not expected to have an immediate or rapid impact, adding that it may lead to gradually reducing recruitment costs in the medium or long term.

Lowering the required percentages for companies in the sector will help curb excess supply, especially during seasons of low demand, said Altimyat. He stressed that this paves the way for providing high-quality services at prices that align with the level of service offered.

According to data available with Argaam, SMASCO announced earlier today, Jan. 7, that the HRSD Ministry issued a resolution on Jan. 6, adjusting the required percentage of support workers (domestic workers) for human resources companies.

The required percentages will depend on the total number of workers employed by the company and will decrease as the numbers rise, instead of the previous fixed percentage of 30%.