United Arab Emirates and Emiratization Strategy - Case Study Example

UAE: An Emiratization Strategy (Name) (University) United Arab Emirates: An Emiratization Strategy Introduction The United Arab Emirates has been immensely perceived as a region that has restricted competitiveness from a global context (Buckley and Hanieh, 2014). Among the challenges faced are unemployment of nationals and gender restrictions which influence the political, economic and social nature of the UAE. The nationalization process that includes emiratization has therefore been implemented to curb the labor demographics challenge to nationalization. Emiratization is thus a government initiative in the UAE to raise the number of Emiratis in the private and public sector as compared to expatriates (Modarress et al, 2013). Furthermore, emiratization has sought to align the academic curricula of the Emirates to the needs of the market. The strategy also involves reducing its dependence on the hydrocarbon sector and diversifying to other business activities. The strategy has been in place for more than ten years but still faces challenges in its adoption. Among these challenges is the reluctance of employers to offer work to the nationals thus creating a draw back to the strategy. Studies have additionally shown that he Emiratis prefer government jobs as compared to jobs in the private sector. These among other challenges have slowed the process of emiratization. To strengthen this policy therefore, the government has been immensely involved in setting up rules to ensure that nation building grows especially in the labor sector. The government requires that companies employ a certain percentage of Emiratis to cater for the emiratization strategies (Forstenlechner, et al, 2012). Among the groups that have taken nationalization seriously is the Jumeirah Group whose emiratization strategy figures topmost among its organizational priorities. This paper therefore seeks to discuss the emiratization strategy of Jumeirah and the components that surround it. From the paper the practicability of the strategy will be determined and other approaches suggested promoting emiratization not only in Jumeirah Group but in the whole of the UAE as well. Jumeirah Group Founded in Dubai in the year 1997, Jumeirah Group is an organization that offers hospitality services and its properties have been branded as innovative and luxurious through various awards in the industry (Morgan, 2014). The group manages Burj Al Arab which is among the globe’s most lavish hotel and other properties such as Jumeirah Carlton Tower, Jumeirah Emirates Towers, Jumeirah Beach Hotel, Jumeirah Bab Al Shams Desert Resort and Spa in Dubai and Jumeirah Essex House in New York. Jumeirah Group’s products, services and activities are nevertheless not constrained to the management of hotels and resorts. The group has a water park, an academy, serviced residences and retail stores. Jumeirah’s ambition is to expand its service and be a market leader in the industry and this is seen through its growing portfolio of luxurious properties. The vision of Jumeirah Group entails being a global international hotel and hospitality management organization that offers superior class services. The group has invested in their employees and business partners through building a culture that values people from the employees to the guests. The group works around the principles of integrity, teamwork, recognition and innovation. Additionally, they are focused on people and dedicated to continuous growth. Jumeirah Group is committed to carrying out its business activities in a manner that is transparent and responsible so that their economic, social and environmental impact is positive (Al Marzouqi, 2012). The policies and practices of corporate social responsibilities that the group carries out are targeted towards their customers, colleagues, society and performance. The responsibility towards employees is seen in the working environment that is conducive which is provided for staff. Furthermore, Jumeirah group exercises an equal employment opportunity policy in its administration. In this light, Jumeirah has strongly embarked on promoting emiratization and further provides employment equal employment chances to women and men as well as individuals who have special needs. Jumeirah Group has previously been awarded for its commitment to emiratization as it puts effort in the recruitment and development of Emirati nationals. The following section discusses the emiratization strategy of Jumeirah Group. Emiratization Strategy of Jumeirah Group Jumeirah Group is fully devoted to the recruitment, giving of instruction and improvement of Emirati nationals in their organization (Al Marzouqi, 2012). The group has a management program that is aimed towards training Emiratis to become future leaders in the hospitality industry. Furthermore, Jumeirah Group has an institution for hospitality training known as the Emirates Academy of Hospitality Management. The academy offers scholarship programs to Emirati students who are seeking for a career path in business and hospitality. Jumeirah Group additionally works with subsequent government institutions to develop and train Emiratis for employment in the hospitality and tourism industry in the United Arab Emirates. Jumeirah Group is intent on developing the best talent form Emirati nationals to create a new generation of Emirati hospitality industry leaders. Jumeirah Group also uses the social media strategy to encourage the emiratization culture. The initiative that has been tagged ‘#Be The Host ‘is aimed towards creating awareness among the Emiratis on the hospitality industry, highlighting the advantages of working in the respective industry (Jumeirah, 2015). The project is associated with the Department of Tourism and Commerce Marketing's #AnaDubai ('I am Dubai') scheme that seeks to promote emiratization. Through the ‘#Be The Host ‘ campaign, Jumeirah provides a platform where its Emirati employees share their career stories so as to persuade other nationals to seek jobs in the hospitality industry. The movement additionally provides for a program where potential Emirati candidates can be mentored by Emirati workers in the organization. The dialogue that takes place between the different parties is instrumental in motivating more nationals to join the workforce as they are being encouraged by individuals who have a similar cultural background. Jumeirah Group has a group learning program where internships are offered for individuals interested in a career in the hospitality sector (Al Marzouqi, 2012). The internship program is available for both Emiratis and international students thus providing an equal opportunity to a diverse group of individuals to learn from them. The internship program includes a salary package with provision for accommodation and a discount on food consumed within Jumeirah’s food outlets. Objectives of Jumeirah’s Emiratization Strategy In its emiratization strategy, the objectives of Jumeirah include the investment in Emirati talent in all its properties which are located in the UAE. In order to achieve this objective, Jumeirah has three programs that are targeted towards Emiratis. The Jumeirah National Future Leaders Program focuses on training potential Emiratis for top positions in the industry (Al Marzouqi, 2012). This program is intensive and is meant to fast track the learners towards the prospective positions. Candidates who are enrolled go through a five year program where they receive holistic training while on the job. The National Graduate Level Program allows Emiratis who have just graduated to train through various departments of the establishments owned by Jumeirah as per their area of specialization. The Jumeirah National Youth Program takes a year and consists of training of Emirati youth on hotel operations. The youth are trained by senior members of the Jumeirah Group in an intensive beginner’s course that takes place in the various institutions of the group followed by being assigned roles in different departments where they practice what they have learnt in the course. Jumeirah’s second emiratization objective is to improve Emirati talent through the creation of an emiratization task force which has three strategies. The first strategy is to develop the talent of nationals through training and coaching done in various departments. The training is done both externally and in house. Mentorship is also done to employees as well support programs for Emiratis in their education so that they can complete their education and join the establishment. The third objective known as the Duroob program where local talent is attracted and integrated into the organization and roles built based on their talent (Al Marzouqi, 2012). Jumeirah Group coordinates with the government to seek out unemployed nationals particularly students and graduates and offers them work placement. Through the government database, the group is able to determine how to place different candidates as per their talent to different responsibilities in the organization. Viability of Jumeirah’s Emiratization Strategy Based on the recognition that Jumeirah Group has received and its achievements, it is evident that Jumeirah’s emiratization strategy has been practical enough. The factors that Jumeirah Group has been able to influence with regards to emiratization are internal. These include recruitment, organizational principles, training and development and employee support (Al Marzouqi, 2012). Jumeirah Group has awarded scholarships to Emirati students, employed better number of Emirati nationals and even managed to employ more women. One external factor that the group has been able to control is the society that is on interactive media through its campaign on ‘#Be The Host ‘where the group has enabled interaction between its colleagues and potential members to dialogue over social media on the advantages of being in the industry workforce (Jumeirah, 2015). Despite these efforts however, the viability of the strategy has been affected by other factors that are out of the control of Jumeirah Group. These factors include the academic curriculum of the UAE which limits knowledge to the classroom and is not sufficient for providing skills needed in the workplace (Schwalje, 2013). The culture of the UAE also influences emiratization especially when looking at the treatment and expectations of women. There is also the Emirati nationals’ attitude which sometimes affects their chances of employment as they expect to be given better treatment than others (Daleure, 2016) yet Jumeirah is committed towards providing an equal opportunity to all its employees. The viability of the strategy is additionally challenged by the fact that Jumeirah Group can only hire a certain number of employees. It has to be considered that in the end the group is running a business in which profits and market growth are expected. The organization therefore has to prioritize its needs and compare them to the advantages of emiratization before engaging in any commitments. Jumeirah has however benefited from emiratization as well as giving to it due to its innovative nature of conducting business. It is consequently evident that the emiratization strategy of the group has been viable and presented quality results. The next section therefore discusses the achievements that Jumeirah Group has had through the emiratization strategy. Achievements to date Jumeirah has the highest number of Emiratis working for its establishment in the hotel industry as compared to other hospitality establishments. This shows that the group has ensured that Emiratis have a better chance of getting employment in the organization so as to maintain the emiratization initiative (Al Marzouqi, 2012). Jumeirah Group has additionally received an award for promoting emiratization through the social media. The campaign is called ‘#Be The Host ‘which is aligned to the ‘I am Dubai’ campaign. Dialogue has been encouraged between Emiratis working in the hospitality industry and candidates seeking employment in the Emirates. The employees of Jumeirah Group further provide mentorship to interested candidates so that they can be motivated to work in the hospitality industry in the Emirates. Jumeirah Group success is also seen in their effort to train and develop Emirati nationals through their Emirates Academy of Hospitality Management. In this institution the students are given the best education, both theoretical and practical on hospitality management. Form the institution the students manage to choose the departments they want to work in thus their career is fostered. The curriculum is additionally flexible to help the future leaders cope with changes in the industry from both local and global perspectives. The academy has managed to train Emiratis to top positions in the industry of UAE thus improving the local chances of education and employment. Furthermore the group has been awarding scholarships to Emiratis so that they can study hospitality and work in the respective industry. Apart from employing workers from different regions while giving priority to Emiratis, Jumeirah has achieved workforce diversity through the employment of female workers from the UAE (Al Marzouqi, 2012). Given the work bias that female candidates face in the region on the basis of their gender and cultural restrictions, this is a bold move towards empowering women to work as part of nationalization (Tlaiss, 2013). To additionally make it easier for the female employees, Jumeirah insists on all employees being treated with integrity regardless of their gender, background or work position. With these principles and the emiratization policy, Jumeirah prides itself for playing a big role in implementing nationalization. Strengths of Jumeirah’s Emiratization Strategy Among the major strengths of Jumeirah Group is that it was originally founded in the UAE and has most of its establishments in the region as well (Al Marzouqi, 2012). The fact that it was founded in the UAE means that Jumeirah group follows the rules and culture of the Emirates. This has made adaptation to the emiratization policy easier as compared to other foreign companies that face difficulty in keeping up with the regulations and policies that are required in the UAE. Jumeirah Group has therefore had the advantage of positioning its business based on the requirements of the region thus succeeding both businesswise and nation wise in following the nationalization strategy. Jumeirah Group is a huge brand name with properties that attract a lot of customer, media and other stakeholder attention. It is therefore evident that the group is associated with success thus attracting local talent to seek out work from their establishments. Furthermore, the positive image and the success that the group has had with implementation of emiratization shed constructive light to the group making it an example of nationalization in the region. Some of the group’s principles are aligned to the emiratization strategy such as treating people with integrity and providing an equal opportunity for employment to all individuals. This has helped to integrate emiratization in its vision as it employs expatriates as well as Emiratis and additionally employs women while ensuring that they are treated with integrity and valued like other male employees. Jumeirah Group has an academy of its own where it trains students on business and hospitality operations as well as management. The academy offers education on the hotel and tourism curriculum to Emirati students as well as international students who are interested. Providing education based on the market need is a huge emiratization step for Jumeirah. In addition, scholarships are provided to Emirati students who join the school based on specific criteria. Innovativeness in Jumeirah is another strength that has fast tracked the emiratization strategy for the group (Al Marzouqi, 2012). An instance is the creation of the social media campaign that encouraged emiratization and got the group an award for contributing to nationalization in the country. Jumeirah has also come up with programs such as work placement, management training and internship for trainees that are based on emiratization to enhance the policy. Weaknesses of Jumeirah’s Emiratization Strategy Despite Jumeirah’s effort to promote emiratization through recruiting and developing the Emiratis and other related activities, the approach is curtailed by the external environment in the form of the regulations and the culture found in the UAE (Davis et al, 2016). Other factors include the competition for jobs between Emiratis and expatriates. Most Emirati graduates lack the resilience to adapt to the workplace environment as compared to expatriates thus making it difficult for the group to prioritize Emirati nationals for employment over expatriates. The expectations of the nationals are additionally detrimental to emiratization as they expect to be paid more and treated better (Goby et al, 2015). Given one of the guiding principles of Jumeirah that includes treating all colleagues with integrity and providing them with equal opportunities, this means that the group cannot meet the expectations of Emiratis. Inasmuch as Jumeirah provides an equal opportunity for the employment of all genders and nationalities as well as special groups of people, the Emirati culture and demands of the hospitality industry make it hard for women to work. Emirati women for instance find it hard to work in an establishment that offers pork, a meal that is forbidden based on the Islamic law (Yaghi and Yaghi, 2016). Some employees also find it hard to accept women working in the hospitality industry despite measurers to ensure fair treatment and this makes it difficult for the emiratization strategy to be achieved. Strategic Emiratization Plan for Jumeirah for the next Five Years The following are strategies that Jumeirah Group can adapt to promote and improve emiratization in its establishments. Jumeirah needs an emiratization policy with a full plan that has a vision, mission and goals of the policy. Furthermore, the plan should be inclusive of guiding principles that help in the implementation of the nationalization policy. Based on the achievements and challenges faced due to emiratization, Jumeirah Group needs to come up with measures for its emiratization performance. The development of these measures should be based on a strategic plan with the emiratization objectives that the company wants to achieve. From the measures, areas that are not providing results can be changed or eliminated while those that are contributing to nationalization can be enhanced. An instance would be the youth programs for training and developing local talent. If the talent is useful for the organization then both policies win whereas if investment in the talent leads to loss then the group has to find another way to achieve emiratization. Jumeirah Group can invest in visiting high schools, colleges and universities in the UAE to promote emiratization through seminars and facilitations from Emiratis in the workforce. Furthermore, the group can liaise with the management of the schools in UAE to recommend students with exemplary performance and offer them employment and training opportunities. Given its previous success using social media to promote emiratization, Jumeirah Group can develop a unique emiratization platform together with a planned policy with a vision, mission, goals and guiding principles provided in the platform. In this platform, the participants should be free to correct, suggest and advise on issues concerning emiratization and debate over them. Through this platform, the group can get new ideas on emiratization and improve on their strategies towards a future nationalized UAE. Promotion of awareness of emiratization is very essential. Given that most stakeholders of the emiratization policy are the government and companies, there is the need for more individuals and groups to be made aware of the initiative. The awareness should be more than that of face value as the knowledge of its importance is what will affect the implementation. As such, Jumeirah can join hands with other organizations to develop a program for creating total awareness in communities, schools and religious societies. The importance of the initiative will need to be stressed so that the respective audience can also provide solutions to emiratization difficulties caused by culture and attitude. Conclusion In summary therefore, it is evident that there has been progress in the emiratization initiative based on the strategies and achievements observed at Jumeirah Group. The group however still faces challenges due to the culture of the Emirati that lacks the resilience to work in the sector. Furthermore, the nationals are restricted by the Islamic law given some services that take place in the establishments such as provision of alcoholic drinks and serving of pork. This shows that despite the milestones that Jumeirah has achieved there is still much needed to maintain the initiative while growing its business as well. Emiratization is certainly a sound scheme but needs adjustments to its requirements on the basis of its overall practicability. For a scheme that has been in place for more than a decade, the results ought to have been better thus leading the question of its viability in the region. The revision of the scheme will aid competitive groups such as Jumeirah to come up with better strategies for the support of the nationalization initiative. References Al Marzouqi, N. M. (2012). Emiratisation Strategy at Jumeirah and its objectives (Emiratis perspective). Buckley, M., & Hanieh, A. (2014). 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