National labor observatory KSA , MLO , Saudi Arabia , labor KSA , PMO

1. Business Case
National Labor Observatory
Prepared By Mousa Bawadi ((IT Manager ,MA ,PMP , PMOC, MCSE , CCNA ,ITIL, CCNSP, Associate)

2. Executive Summery
 National Labor Observatory analytical office focus on labor market
research
 The Observatory will provide real time integrated information about
the development of human resources, collect data and analyses
trends in education and the labor market against the background
of social and economic changes.
 National Labor Observatory provides participants (policy makers,
employers, job seekers and others) with reliable labor related data
and information (“evidence”) to improve their decision making.

3. Project background
 National Labor Observatory have been established in several
countries to tackle the unemployment dilemma between citizens
while the labor market flooded by expatriates.
 Lack of performance measurement indices among the systems
caused failure to provide jobs to citizens and caused a state of
confusion and dissatisfaction among employing entities.
 In Saudi Arabia, unemployment rate has increased in the last few
years and have become a very political issue for the Saudi
government.
 There are 1.4 million unemployed citizens and 8 million expatriates
working in the Saudi labor market. In 2011

4. Org. Size Number of Workers Saudi Workers
Tiny (< 10) 1,780,937 21 ,250
Small (10-49) 1,823,386 7l,759
Medium (50--l99) 1,582,555 190,263
Large (500-2999) 1,428.22 237.,851
Giant (3000+) 798,029 121,,593
Total 7,413,127 645,716
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Tiny (< 10) Small (10-49) Medium (50--
l99)
Large (500-
2999)
Giant (3000+) Total
Number of Employees by Size and Type
Number of Workers Saudi Workers
Statistics .. Total Workers Vs Saudi Workers
Total Workers Vs Saudi Workers

5. Strategic objectives
In order to achieve visions and apply the strategies adopted by the kingdom’s
decision makers and politicians to improve and develop the local market,
increase productivity and balance the numbers of Saudi labors with expatriates,
the following strategic objectives are essential for establishing the LMO:
1. Observe and monitor the market and its employees in all the kingdom’s market
sectors.
2. Enhance the decision making process by providing analytical integrated
reports.
3. Monitor the different Saudization initiatives results.
4. Control the market’s unemployment
5. Align the educational institutions systems with the Saudi market needs.
6. Achieve the highest nationalization performance by hiring the highest
percentage of Saudi employees on all market segments / Distribute Saudi labor
on the Kingdom’s entire geographic locations

6. Assumptions
 Adequate funds
 stakeholder Support Regulations
 Quality of input data

7. Time
Overall Objectives
Short Term (2 Years) Medium Term (3-5 Years) Long Term (6-25 Years)
Control Unemployment Increase employment
Establish the base of employment
growth
Market Realization of full employment
Redirect Saudi Labor to the New
Trend Market
Need assessment for :
- current market
- Geographic locations
- Enterprise organization needs
Apply the incentive system in order to
benefit the market’s organizations and
allow the Saudi labor to prosper.
Achieve the highest nationalization
performance by hiring the highest
percentage of Saudi employees on all
market segments / Distribute Saudi
labor on the Kingdom’s entire
geographic locations
Align education with market
needs
Framework the needed qualifications
and improve the performance of
educational system to recruit Saudis
labor with high capabilities in order to
be an active member in the new
market
Transfer the educational vision into a
course work and apply the offered
content as a curriculum in the
Kingdom’s educational facilities.
-Deliver workshops to assist the
students develop their capabilities and
skills.
-Amplify the benefits from the
educational systems by building join
ventures between the private sectors
and the educational entities.
Framework

8. Key Stakeholders
 Ministry of labor
 Ministry of Education
 Human resource development Fund
 Private sector
 Public Sector
 Educational institutions
 Saudi labors

9. Challenges
 Saudi culture
 Current Education Status
 Ensure that job creation for nationals occurs in manner that reinforces
the development for labor market
 Saudi women face working obstacles

10. Project Phases
 Project Phases:
Inception
Design
Implementation
Training & Support
Inception Framework
+ Strategic Objective
Design
Business
Model
Business Model Implementation PortalStart Finish
Training &
Support
Training
Session

11.  Tasks :
 Collect & Analyze requirements
 Define initiativeStrategic Objectives & drivers for LMO (Labor market
observer)
 Study Global Benchmarks
 Build Framework for LMO
 Build Business Case
 Deliverables :
 Approved Strategic & Business Objectives
 Approved Framework
Inception Framework
+ Strategic Objective
Design
Business
Model
Business Model Implementation PortalStart Finish
Training &
Support
Training
Session
Inception Phase

12. Design Phase
 Tasks :
 Define Major LMO components
 Design Incentive system
 Design analytical Reporting Service
 Design Job Employers / seekers / decision makers journey ( Story Board)
 Design Marketing Plan
 Define integration Model between Different systems ( MOL / HRDF / MOE )
 Build RFP for Portal Implementation
 Build RFP for Marketing Campaign
 Deliverables :
 Business Model
 RFP for Portal
 Marketing Plan
 RFP for Marketing Campaign
Inception Framework
+ Strategic Objective
Design
Business
Model
Business Model Implementation PortalStart Finish
Training &
Support
Training
Session

13. Implementation Phases
 Tasks :
Bid analysis for the RFP
Vendor Selection
Build LMO Portal
Monitor & control vendor Progress for Building Portals
Monitor & Control vendor progress for delivering marketing
Campaign
 Deliverables :
Fully Launched LMO Portal
Inception Framework
+ Strategic Objective
Design
Business
Model
Business Model Implementation PortalStart Finish
Training &
Support
Training
Session

14. Training & Support Phase
 Tasks :
Train Portal Users
Provide Awareness Sessions
Review & Enhance Portal outputs
Provide any needed support for the stakeholders
 Deliverables :
Training , awareness Sessions
Inception Framework
+ Strategic Objective
Design
Business
Model
Business Model Implementation PortalStart Finish
Training &
Support
Training
Session

15. Conclusion
Advocating for the organization / job seekers to use the National
Labor Observatory portal as a formal tribune to distribute information,
new policies, decisions and important issues to the key stakeholder
will Ensure that job creation for Saudi labors occurs in manner that
reinforces the development for labor market.