Small recruitment companies across the Kingdom appear reluctant to merge into mega-recruitment companies that will oversee the employment of overseas workers, including housemaids and drivers, reported Al-Sharq Al-Awsat newspaper Wednesday. There are 300 recruitment firms in the Kingdom. The merger will bring about five mega companies with capital of between SR50 and SR100 million. The Council of Saudi Chambers has given each mega company six months to set up. If the company is not formed and the capital is not secured during that period, then willing businessmen and women – other than recruitment agencies' owners who previously had sole right to form the mega companies – will be allowed to get into the business. Saleh Al-Haranda, a member of the recruitment committee at the Jeddah Chamber of Commerce and Industry (JCCI), said Saudi chambers have been holding meetings with recruitment companies. So far six agencies have attended the meetings in Riyadh, five in the Eastern Province and four in Jeddah. He said numbers will increase in the coming days. On the poor turnout, Al-Haranda said most of these agencies rent out workers – known as Tasattur – which is the main reason for them not participating in the meetings. “If the number of partners and capital set by the Ministry of Labor is not met, then the field will be opened to businessmen from outside the recruitment business.” An agency owner said that the idea of mega companies is a “good one” but it “does not serve recruitment agencies given the major capital required”. This will make it easy for businessmen to enter the business and buy the majority shares, with the rest of the shares left to those who have been in the business for a long time, he said. The idea of mega-recruitment companies is part of a plan by the Saudi National Recruitment Committee (SANARCOM) to have firms that will act as general service companies in recruiting and bringing in foreign workers. SANARCOM, at the Council of Saudi Chambers in Riyadh, believes that well-organized Saudi recruitment firms with better management and bigger capitalization will be able to do a better job in recruiting foreign manpower than small establishments. Larger recruitment firms will operate with improved recruitment processes and ensure better protection for foreign workers, particularly household workers such as housemaids and family drivers.
