High turnover of Saudi salesmen puts jewelers in jeopardy
Published: Mar 31, 2011 00:16 Updated: Mar 31, 2011 00:16
JEDDAH: A number of key players in the gold industry are of the view that the high turnover of young Saudi salesmen is affecting their business prospects.
A large number of young Saudis are unwilling to work in the sales field, they said, adding that some of them leave their jobs all of a sudden without giving prior notice, putting business owners in jeopardy.
The jewelers have also criticized the new mechanism introduced by the Human Resources Development Fund (HRDF) that restricts working hours to 36 hours per week.
Speaking to Al-Madinah newspaper, the jewelers said that they are facing a number of problems after fully implementing Saudization. “Some youths are not satisfied with the salary package. We give a minimum monthly salary of SR3,500, and an annual pay rise of SR500 for three consecutive years after they join us. Even after getting SR5,000 within three years of entering service, many employees leave the job without prior notice when they find other jobs in the government or jobs with higher salaries in the private sector itself,” one of them said.
Jameel Farsy, head of the Gold and Jewelry Committee at the Jeddah Chamber of Commerce and Industry, said the directive to ensure 100 percent Saudization in the gold sales field was implemented a few years ago. However, foreign investors in the sector have yet to implement the directive.
“There was a tremendous response from Saudi youths who took up employment in the gold sales field in the beginning. The committee with the support of the fund has been successful in attracting a large number of young Saudis to work in sales. It has also conducted training courses for sales staff,” he said.
He agreed the major hurdle faced by the jewelers in the field is the fact many salesmen do not last long and leave the job without prior notice. “This problem could be solved easily if there is cooperation from the respective government agencies to impose restrictions on those leaving the field in such a manner, such as their ability to get another job,” he said.
Muhammad Azouz, a chamber official in charge of Saudization, said all efforts were being made to ensure young Saudis were qualified to take up sales jobs in the gold retail sector.
“We invite young Saudi jobseekers through job advertisements and that was in cooperation and coordination with concerned government agencies, including the Ministry of Labor and the Human Resources Development Fund. We provide them with training to enable them to get jobs in the sector,” he said, adding that this program has been proved a success since 100 percent Saudization was achieved in the gold retail sector five years ago.
Azouz, who is also a gold investor, noted that the committee’s efforts to hold interviews with Saudi jobseekers under the supervision of Ministry of Labor officials have ended in failure. “Only two jobseekers appeared for the interview,” he said.
Referring to major hurdles in the field, Azouz agreed that many Saudi salesmen leave their jobs without any prior notification.
“This creates a big headache for those in the sector, especially when they are facing stiff competition after the arrival of more investors,” he said. Azouz also criticized the new mechanism introduced by the HRDF where Saudi salesmen only need to work six hours per day and 36 hours a week, in addition to insurance coverage for employees and their families.
Adel Taha Baksh, another investor in the gold business, added that it was a very difficult task for businessmen in the field to achieve their targets after implementing 100 percent Saudization. “This is also a job that requires trustworthiness and honesty from employees more than any other jobs,” he said, urging authorities to support the sector by offering special incentives given the perceived sensitive nature of the business.
Comments
J2J
Mar 31, 2011 13:43
Report abuseMERLIN
Mar 31, 2011 13:44
Report abuseMore evidence of the Folly of compulsory Saudization. Does the government have any intention of taking these examples into consideration, before implementing further 'crowd-pleasing' Saudization policies?
Saudis for jobs, before jobs for Saudis
KHAN
Mar 31, 2011 14:07
Report abuseISMAEEL MARIKAR
Mar 31, 2011 14:09
Report abusejewellery trade,where mos tsalesman were from the asian sub-continent.
It should have been a gradual process.
OBSERVER
Mar 31, 2011 14:14
Report abuseMAH
Mar 31, 2011 14:16
Report abuseThis is not rocket science. The solutions are simple.
BEJO
Mar 31, 2011 16:24
Report abuseSHADAB
Mar 31, 2011 17:43
Report abuse