Leading UAE business services provider introduces white collar outsourcing initiative to handle admin, HR, healthcare, transport and payroll for SMEs in the emirates.
Transguard, the UAE-based business services provider, is supporting the needs of the UAE’s 350,000 Small and Medium-sized Enterprises (SMEs) through an outsourcing service designed to cut overheads and increase efficiency across operations.
The strategic initiative, allows SMEs to benefit from their own (contracted) in-house team of dedicated professionals, equipped to handle such business functions as administration, IT, PRO services, HR, healthcare, transport, payroll and visa processing, as if they were an organic part of the enterprise.
The cost effective and risk averse solution is just the latest addition to Transguard’s outsourced workforce solutions, which currently provide more than 2,500 full time staff to companies throughout the UAE, on a temporary, short-term or permanent contract basis.
Greg Ward, Managing Director, Transguard, said: “We have been supplying fully outsourced workforces since 2001, supporting a wide range of industries including construction, aviation, hospitality and retail. Outsourcing provides business owners with cost-effective solutions to help things run smoothly, and the next step in our provision of these services will see Transguard supporting the region’s SMEs through the provision of flexible and cost-effective solutions.
“SMEs are the driving force of the UAE’s plans to boost its knowledge economy, however, they are acutely sensitive to economic peaks and troughs, cash flow issues and permanent staffing costs which can be a significant and recurring overhead. The introduction of outsourced white collar services, will bridge gaps in administrative work, HR and employee services, while freeing the enterprise’s human capital to focus on the core operations of the business.”
The backbone of the national economy, there are more than 350,000 SMEs in the UAE, accounting for 94% of total companies operating in the country and generating 60% of non-oil GDP. Targets issued by the Ministry of Economy (MoE) estimate this contribution will increase to 70% of non-oil trade by 2021.
SMEs account for 73% of companies in the wholesale and retail trade, 16% of companies in the services sector and 11% of those in the manufacturing sector, according to figures from MoE. Of the total working population of the UAE, 86% are employed by SMEs.
Underlining the talent and hiring demands of SMEs, in the first quarter of 2017 a Meed survey of 138 enterprises found that 70% planned to hire up to 10 additional staff, with 6% reporting the need to hire 50 or more new employees.
The costs associated with this can be high and easily add up, given the UAE’s above average staff turnover rate. A 2013 survey by Bayt.com found that only 27.7% of respondents had been in the same job for more than two and less than five years. Globally, average employee turnover is expected to reach 23.4% in 2018 up from 20.6% in 2012.
Transguard is one of the largest providers of outsourced workforces in the UAE and offers true end-to-end workforce solutions, from initial recruitment and training through to full contract support.
Ward added: “Due to the nature of the business ecosystem, SMEs are sensitive to economic swings and Transguard is committed to managing the risk as well as the costs they face by providing a solution that puts business first. In outsourcing certain functions, SMEs can save significant amounts of money on holiday pay, sick pay, gratuity and healthcare costs, that Tranguard will bear. They also save time on recruiting talent to these functions and can minimize the resources used on training and orientation when a new employee joins the workforce.”
Ward concluded: “Transguard specialises in supporting businesses and, at this significant juncture in the diversification of the UAE economy, we look forward to supporting the country’s SMEs, across all vertical sectors and business types.”