“Human resources is not a thing we do. It’s the thing that runs our business.”
-Steve Wynne, Business Magnate
In the Middle-East, Dubai is the centre for trade and commerce and this position has been supported by its excellent mind-set towards development and advanced infrastructure. Thus it is no wonder that all types of businesses are thriving here and it is attracting more businessmen by the day.
Where there are businesses, of course there is need of human resources. Currently, increasing number of companies are opting for outsourcing all or part of Human Resource activities and thus, the need for Human Resource Consultancy providing businesses is on the rise. Following are the advantages of setting up an HR consultancy business in Dubai.
- A plethora of SMEs (Small and Medium Enterprises) are present in the current Dubai market and more keep opening up each day. They contribute about 40% to the value-addition generated in Dubai’s economy. 42% of Dubai’s total workforce is due to SMEs. Their size may mean that they may not have enough finances or infrastructure to have a full-fledged HR department. Thus, there is huge scope for HR Consultancy companies to obtain contracts from such companies.
- Even for big-scale companies it may be an additional hassle to maintain a fully running department. It is cost and time-intensive to focus on several HR activities such as recruitment, handling of payroll, creating policies, learning and development, etc. instead of focusing on their core competencies. So, many such companies are outsourcing the same for ease of operations.
- There are four types of business licenses that can be acquired for a company after getting approval from the Department of Economic Development (DED): commercial, professional, industrial and tourism. These licenses have quotas of number of visas allotted. Therefore, there are restrictions on the number of employees that can be hired under the permitted company. Moreover, there are office space requirement per employee depending on the approving authority. This means that outsourcing an entire department helps combat these restrictions and opens up more opportunities for HR consultancy firms.
- The cost-saving aspect of outsourcing HR is so lucrative that more companies are opting that way to save up on unnecessary expenses to maintain and scale-up (when required) a whole department. This helps them save money on equipment and software and plenty of time as well.
- Dealing with recruitment, ensuring you get the suitable person for the job, getting interim professionals, negotiating salaries, handling payrolls, handling employee issues might seem like a lot of additional work for most companies. Outsourcing helps take the pressure off and will also facilitate taking help of experts who may have been doing this for years.
- An HR consultancy firm formed in Dubai already has the expertise to assure compliance to the law of the land and has industry insight. Hence, they are sought after by start-ups and new businesses.
- Dubai is the logistics and supply chain hub connecting the east and west world. Dubai’s tourism industry is one on which its economy largely depends. The retail industry is another crowd-puller of Dubai- the Dubai Shopping Festival adds lots of customers across the globe. Dubai’s great infrastructure is supported by a stellar IT industry. The Jebel Ali port is one of the top 10 busiest ports in the world. All these industries and more require skilled or semi-skilled labour. Companies tend to outsource the recruitment activity to ensure that they get the cream of the crop.
- Each business has to go through a lot of document formalities to run smoothly and it is preferred by most to outsource the same to save the trouble and time that can be focused elsewhere for the betterment of their business.
- Another perk that attracts companies to outsource HR activities is that it gives them the flexibility to change employees through a smooth exit process and hire replacements with more suitable options. Moreover with an outside HR handling visa procedures it gives better mobility to move employees around within companies under the same group.
For the reasons mentioned above, there is scope for an HR consultancy business setup in Dubai.
Formation of an HR Consultancy business in Dubai can be quite simple. All you need to do is outline business activities, select appropriate company name, choose proper location and apply, and acquire your license from Department of Economic Development (DED).
Flying Colour Business Setup Services has been helping clients to set-up their business in Dubai since the past 17 years and if you need reliable guidance, we can help you set up your business with ease. Please feel free to mail your queries at info@flyingcolour.com or contact us at +971 4 4542366.
*Please Note: This article was published on 24th May 2021. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent updates or changes.
