Comparing the significant Existence of HRM in startups companies in KSA

Abstract

The emergence of startup companies has increased significantly in Saudi Arabia owing to the increased involvement of the government to support young entrepreneurs and the objectives of Vision 2030. Startups are booming in the Kingdom in diverse industries with innovative and creative approaches. In such an environment, human resource management serves as one of the most essential pillar of companies irrespective of the industry that they operate in. Human resource department not only manages employees, but also serves as a source of connection between businesses and employees. With the growth of startup companies in Saudi Arabia as well as the increasing challenges for the success of such companies, it is essential to manage the human resources with high efficiency to ensure best utilization of talent. The contributions of human resource department and human resource management practices towards the success of companies is irreplaceable by any other department. This study focuses on understanding the importance of having dedicated human resource management practices with focus on startup companies in Jeddah, Saudi Arabia. The different challenges commonly faced by startup companies are also discussed in the study. A questionnaire survey designed specifically targeting the startup employees and owners was conducted with 60 responses. The results of the survey highlighted the importance of human resource department in startup companies of the Kingdom to ensure maximum utilization of talent and adequate return on investment from employees for the startup companies.