One in three GCC firms gave pay rises in Jan-April - survey

PAY RISES: One in three firms in the GCC surveyed by Mercer said they had given staff pay rises so far in 2009. (Getty Images)

A third of GCC companies gave their employees a raise in the first four months of 2009, and more than one in three firms plan to increase their workforce this year, according to new research.

The median salary increases for different employee groups for 2009 ranged between five and six percent, with 34 percent of companies having already provided salary increases in January or April, said the study published by HR consultancy Mercer.

Twenty three percent will be determining salary increases in July and 22 percent said no increase will be made this year.

“The study has brought to light a sense of shared confidence amongst GCC based companies,” said survey project leader Bassam Gazal.

However, 36 percent of companies plan on revising the performance measures they base their incentive plans on, and 15 percent said they would change their long term incentive mix.

Out of the 67 companies surveyed, only 25 percent said they plan to reduce headcount this year, while 42 percent intend to increase it and 33 percent see it remaining at current levels for the rest of the year.

The number of companies hiring is projected to rise to 60 percent next year.

The study surveyed 67 multinational and local companies across the GCC representing more than 175,000 employees in all key economic sectors.

“There is a quiet and determined confidence here in the GCC right now, about the rest of the year and into next year and beyond. It’s something we’ve been seeing in pockets for a little while, and it’s good to know that our survey results are backing that up,” said Gazal.

Those findings may not tally with a growing sense of job insecurity among Gulf residents, but Bob Schuetz, a senior partner in Mercer’s GCC operation, insisted that companies in the region have thought twice before retrenching people, and that they have even been less prone to cut staffing levels than their western peers.

This enables them to limit spending on recruitment and training once the economy begins to recover, he added.

“We’ve spoken to a number of leading companies from around the Gulf who are looking to adopt a more long term HR strategy to secure their company’s future, attract and retain talent in key positions and ensure an ongoing pipeline of talent for core skills and leadership development,” Schuetz said.

Companies that plan on reducing their headcount are cutting mostly from support and administration, including non-sales professionals and managers, Mercer found.

More than half (52 percent) of companies had set their business targets for 2009 higher than in 2008, and 94 percent said it was “very” or “somewhat” likely they will be met.

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READERS' COMMENTS

pay rise !!
Posted by danny-m, dubai, uae on Thursday 11 June 2009 at 17:22 UAE time


pay rise ! its BIG lie, misguiding, misleading, what not report. I heard firsthand report of companies who has terminated more than 50% of their staff.

Are U Kidding Me? Come on Guys!
Posted by Aminu, Dubai, UAE on Thursday 11 June 2009 at 15:00 UAE time


1 in 3 companies? I bet you 3 in 3 ppl that read this article think is a joke. I rely on AB 4 my daily dose of credible and reliable information, but this....... How abt you list those companies for us so we can nominate them for nobel prize?

!?
Posted by Kevin on Thursday 11 June 2009 at 13:03 UAE time


This survey makes no sence..
The whole world is in crisis and so is the GCC.
I can't even think of any sector that is actually doing well...
I work for a multi national company spread throughout the middle east, dealing in retial, autmobile and restaurants..and I'm pretty sure that every one is struggling!
On the other hand companies are making huge efforts to cut down costs - and everyone wants to cut cost, not in 1000s, but in millions..!
This is survey is false..most likely the method involved in attaining the information was/is not effecient enough! This is very disappointing!

Oh C'mon AB !!!!!!
Posted by HC01, Dubai, UAE on Thursday 11 June 2009 at 10:53 UAE time


PKumar is right - the survey is nonsense. Why publish such rubbish when there are employers trying to keep their staff employed and can only operate from one month to month and hope they can afford to pay their staff. Workers are keeping their heads down and are hoping that when winter comes the situation will be better. Stop being so condescending by pretending that there are rosy spots in the GCC when the whole world is struggling.
The survey represents only 175,000 employees across the whole GCC - hardly representative and was it a random sample? How were they selected? Only 22 companies sampled actually gave rises but the stats don't add up. What happened with the other 21% (or 14 companies) - did they actually cut salaries but this wasn't worth reporting was it? Only 25% looking to reduce head count (did they increase salaries and then find they had to cut people because their sums didn't add up?)
AB - improve your journalism and start talking to people and not publishing Press Releases from companies that are trying to sell their services, without doing some investigation yourselves. When is AB going to start scrutinising such information and acting on behalf of all of us and start doing what journalists do ie. find out the truth!

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