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Incentives Raise Human Capital In 2012 we have found ourselves in the midst of a

Incentives Raise Human Capital

In 2012 we have found ourselves in the midst of a dramatic change in both society and the economy. People are desperately trying to cultivate the standards and valuation models that society will both accept and reinforce as the best practices. Thus allowing for a shared pool of experiences that can be referred to when one is evaluating a competitor.

We in the Kingdom of Saudi Arabia are in the midst of a large scale transformation. The leadership of the Custodian of the Two Holy Mosques has brought about huge endeavors such as new universities and a Knowledge Economic City (KEC). These initiatives shall serve as the locations that mold the minds of future generations. We are witnessing first hand the impact of an evolution from an oil based industrial economy to a service based economy, which has forced most corporations to focus on the definition of human capital.

In fact the Ministry of Labor has developed painstaking rules to transform the job market with a program called Nitaqat. Its objective is merely to include Saudi Citizens in the labor force. I must confess that I found this program to be a wonderful tool in my endeavor to find a job. We have taken on the role of investigative journalists as we have tried to apply for certain Higher tier and Middle tier Jobs in the Kingdom of Saudi Arabia.

First I presented my credentials in a resume highlighting that I am an American born Saudi Arabian with international banking experience. When that approach failed to garner the respect of the various HR departments, I found myself calling Saudi department heads to present myself and my resume, and once again I did not get the job with this approach as I was deflected with plenty of praise with comments like "Overqualified". So I tried to contact the expatriate executives hoping that we could bond over international standards of excellence that I cited in my resume, and again I fell short of getting the job. It seems that the expatriate executives see an educated Saudi Employee as a threat to their current position within the company.

After I gave up on the resume approach I started publishing videos demonstrating the skills required to do the job, along with discussions on intricacies of the financial markets. I also published research reports on the Internet, three books on Amazon, and over 50 articles in a number of newspapers. This approach gave me a huge amount of notoriety and prestige, which in turn made it easy to contact CEO's and Board Members since they were familiar with my work.

At this point I am of the opinion that it is imperative that both the employees and the board members share the same objectives. Simply put the share holders of the company are oriented towards the profit of the company and their respective share prices, while the employees are focused

on their salaries and bonuses. The next step is to offer profit sharing plans to serve as an incentive

for the employees to make the companies interests a priority.

possible candidates to raise the human capital of the organization. Furthermore the positive impact of profit sharing is that it sends the message that all of the employees are working together on the same team. The employees will have the same goal of maximizing the quality of products and services, while focusing on the efficiency of running the business. Thus all the ships are sailing in the same direction.

At that point they would hire the best



Khalid I Natto Chairman & CEO The KIN Consortium Email: Work: 009665 686 100 43 Website:

009665 686 100 43 Website: The Natto Perspective The Natto Perspective Android Application

Web definitions

Human capital refers to the stock of competences, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and

Human assets consisting of items such as skilled workers.

is the total capability residing in individuals, based on their stock of knowledge skills, health and

nutrition (Orr 1992; Byerlee 1998; Leeuwis 2004; Lieblin et al. 2004). It is enhanced by access to services such as schools, medical services and adult

Formation: Investment in education and research which results in an improvement in human skills and knowledge.

The unique capabilities and expertise of individuals.

is the combined ability, Knowledge, skills, expertise, competencies, know-how, and innovativeness of

an organisation’s members to conduct a specific activity, operation, project, or task. It also includes that organisation’s values, culture, and

A person's knowledge and abilities, such as educational level, literacy and work experience, correlated

with socio-economic position and mobility.

The stock of knowledge, acquired skills, and personality traits that are economically valuable in a workforce.

The capitalised value of productive investments in persons; usually refers to value derived from expenditures on education, training, and health improvements.

The talents and capabilities that individuals contribute to the process of production. Companies,

governments and individuals can invest in this ‘capital’ just as they can invest in technology and buildings or in finances.

refers to a company’s “know-how” and capabilities embodied in its employees, in relation to the operation of its business. HC includes the collective experience, skills, creativity, and expertise of the

Includes, but is not limited to, the physical ability of an individual human and his or her intelligence and knowledge, which clearly might contribute to industrial production. Human Capital also captures human dimensions that contribute to well-being such as health, education, and happiness.