Workforce Demographics of the UAE
According to the report of Ministry of Economy (2013), more than 65% people are rate of economically active; however, Malit & Youha (2013) stated that this country is a popular destination for temporary labor migrants since 80% of total people are migrants (come mainly from India, Bangladesh, Pakistan, and other GCC countries) and only 20% people are national inhabitants.
At the same time, Malit & Youha (2013) argued that more than 90% expatriates are working in the private sectors; moreover, expatriates are hardworking and motivated, but all of them are not high-skilled migrants; however, unemployment rate was only 4.6% in 2011. However, the next table and graph provide more information about demographics of the workforce:
Table 1: The Demographics of the workforce in UAE. Source: Self generated.
The Impact of Demographics on Workforce in Context of HR Practices
FAHR (2014) argued that the government of the UAE has already established a regulatory body to manage and administer the HR practice, which carried out the responsibility to introduce performance measurement as well as to ensure safe workplace environment by amending the federal law; government has aimed to attain the most beneficial system for both employer and employees.
Malit & Youha (2013) added that the government of UAE substantively transformed the Kafala system to enlighten the expatriate workforce and urged to provide equal opportunity, but the practical scenario is very different where the domestic workers enjoy enhanced scopes and facilities; in contrast, the expatriate workforces are discriminated and abused regularly.
The government of this country has gained remarkable success to attain cost efficiency for workforce, but demolished international standards of workers rights for expatriates in many ways, such as, wage exploitation, restraint on employees union, limit on expression, rape, and physical torture over the female employees and even killing expatriates in the open street without bothering global protest.
Mansour (2014) added that ongoing imbalance of demographics composition of the UAE has generated public policy crisis in the country and turned the local citizens into minority in their native land; however, the demand of skilled foreign labor force will increase within few years though present HR practice allow them to abuse expatriate.
The Influence of Demographics on Organizational Performance
Organizational performance of the private and public companies is differ due to the number of expatriates because employers of private firms exploit the employees in many cases, which affect on the aggregate performance; therefore, staff turnover rate is increasing significantly (Malit & Youha, 2013).
On the other hand, organizational performance of this nation has influenced by many factors, such as, communication problems, lack of knowledge workers, skilled labor force, different policy of the government, ethical dilemmas, reword policy, legal framework and so on; however, all these issues directly linked with the demographics of the workforce (Malit & Youha, 2013).
The leaders of the companies need to arrange special training program in order to develop skilled labor force, implement particular project, and eliminate communication problems; however, the UAE nationals mainly seek public sector jobs for which public companies are not facing such crisis and performance of public organization is satisfactory level to reach objectives (Malit & Youha, 2013).
Reference List
FAHR. (2014). Employee Performance Measurement System. Web.
Malit, F. & Youha, A. (2013). Labor Migration in the United Arab Emirates: Challenges and Responses. Web.
Mansour, A. (2014). The Population Imbalance as a Public Policy Problem in United Arab Emirates. Web.
Ministry of Economy. (2013). Annual Economic Report 2013. Web.