The new name and identity takes ownership of this insurance category and evokes a strong emotional connection to customers as 'co-operative,' which is the only accepted form of Islamic insurance" Tawuniya Overview, 2010, para. 3).
According to Chaudry, though, the enormous amounts of oil-based revenues flowing through Saudi Arabia's coffers has created a very real need for informed and well-managed insurance companies that are capable of competing in an increasingly competitive financial market. In this regard, Chuadry notes that, "The financial systems that developed in [Saudi Arabia] in the 1970s was the product of capital abundance, not scarcity. Unlike most countries in the initial stages of economic development, [Saudi Arabia] had massive excesses in investment and commercial capital during the boom, which obviated the necessity of aggregating domestic savings" (p. 262). Likewise, Cordesman and Obaid (2005) report that, "The Saudi economy has been growing rapidly since the early 2000s, and reached as high as 6.4 in 2003" (p. 366). Analysts in the U.S. also note that, "Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 20% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings" (Saudi Arabia, 2010, para. 3).
The company's geographical concentration of investments is shown in Table 2 and illustrated graphically in Figure 2 below.
Table 2
Geographical Aspects of Tawuniya Insurance Coverage: 2008-2009
Area of Coverage
2008
2009
Kingdom of Saudi Arabia
918,037
1,742,388
United States
25,283
27,909
Europe
15,028
18,767
Far East
3,389
6,784
Rest of the world
3,358
4,103
Figure 2. Geographical Aspects of Tawuniya Insurance Coverage: 2008-2009
Source: Tawuniya Annual Report, 2009, p. 52
As can be clearly discerned from Figure 2 above, the overwhelming majority of the company's insurance coverage is situated in Saudi Arabia, but Tawuniya has plans to extend its operations domestically and abroad. As a progressive and well managed company, the leadership at Tawuniya recognizes that the costs that are associated with the recruiting, hiring and training process are enormous. According to Sims, "Cost is an important factor in recruitment. Recruiting efforts by an organization are expensive" (2002, p. 110). Likewise, the costs associated with failure to take the steps necessary to retain qualified personnel are equally staggering. In this regard, Sujanksy emphasizes that, "Consider what it costs every time an employee departs. You shell out the cost of rehiring and retraining the replacement. Studies put this lost-employee price tag at between 70% to 200% of that person's annual salary. What's more, your company suffers a brain drain with the departed employee's institutional memory" (2007, p. 9).
To help overcome these constraints to productivity and performance, an important part of Tawuniya's business model has always been its emphasis on developing a workplace that is attractive to talented and qualified candidates. In this regard, the company emphasizes that, "Part of Tawuniya's mission is to be the employer of choice. One of the Company's goals is to provide the most professional working environment in the Saudi insurance market" (Teamwork, 2010, para. 2). The company's business model also stresses the need to recruit and retain the country's most qualified and talented candidates. For instance, the company specifically states that, "Tawuniya provides enhanced operations and employment conditions compatible to current demands in Saudi society and the business arena. The Company offers benefits designed to attract well educated Saudi's [sic], who contribute positively to the overall working environment" (Teamwork, 2010, para. 3).
Take on consideration
The company offers new hires the opportunity to participate in a profit-sharing plan wherein the company invests a portion of the employee's wages; in addition, the company also budgets for employee end-of-service benefits (Annual Report, 2009).
Requisition rate/workforce planning
The company's requisition rate and workforce planning strategies are not disclosed; however, according to the company's promotional literature, "The quality services of Tawuniya do not solely depend on the quality of its insurance coverage's. It also depends on the Company's most significant asset, its human resources" (Trained staff, 2010, para 2).
Recruitment staff productivity
The company has aggressively pursued the recruitment of qualified Saudi talent for its operations in recent years. According to the company most recent annual report, "Tawuniya...
18).
Cost per hire
The following calculations are based on the company's published figures for advertising costs in 2009, with no referral bonuses, relocation or travel costs being incurred or taken into account in the analysis based on a 10% headcount increase in 2009 and with 10% of the total advertising costs being attributable to recruitment:
Advertising costs:
SR 655,700
Total new hires:
74
Total cost per hire:
SR 8,860 (or about U.S.$2,362.67)
Source analysis
Pursuant to the company stated policy of seeking to increase the number of Saudis employed, the most recent annual report emphasizes that, "The percentage of Saudi nationals within the company represented more than 73% of the total workforce" (Tawuniya Annual Report, 2009, p. 18).
Time to fill
No information is provided by the company concerning time required to fill any specific position within Tawuniya.
Quality of hire
The company emphasizes that it places a high priority on attracting and retaining the most qualified personnel to ensure its continuing success. In this regard, Tawuniya notes that, "Tawuniya has designed comprehensive development programs to retain highly qualified staff. The Company is aware that the process of human resources development should be dynamic enough to reflect developments in the insurance market and keep pace with Tawuniya's needs" (Trained staff, 2010, para 3).
Conclusion
The research showed that the Company for Cooperative Insurance, or Tawuniya, was founded in 1986. The research also showed that Tawuniya is a Saudi public joint stock company that focuses on motor, marine, fire, medical, engineering, aviation, takaful, and casualty insurance, and competes with 24 other insurance companies listed on the Saudi stock exchange. In just over a quarter of a century, Tawuniya has emerged as a leading Saudi insurance company due in large part to the careful management of the assets entrusted to the company, achieving an enviable 36% increase in revenues in 2009 compared to 2008. The research was also consistent in showing that the company's emphasis on hiring the most qualified and talented employees was responsible in large part for this continuing success, and the company's human resource services have been highly effective in their recruitment efforts.
References
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Sims, R.R. (2002). Organizational success through effective human resources management.
Westport, CT: Quorum Books.
Sujansky, J.G. (2007). Make your corporate grass the greenest: 16 cost-effective ways to a culture that keeps your keepers. The Journal for Quality and Participation, 30(3), 9-10.
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