Bosses in Saudi Arabia are planning pay rises, new hires and calling workers back to offices this year, according to the Hays Middle East Salary Guide for the Kingdom.
The guide provides comprehensive salary data for more than 200 roles across 11 professions, with the latest labour market trends based on expert insights and the analysis of a survey of 400 employers and working professionals.
Among the findings are the 77 per cent of employers expecting to offer salary increases this year and almost a third of workers admitting they could change jobs due to lack of career development opportunities.
Saudi salary guide
Mark Paul, Manager at Hays Saudi Arabia, said: “In a flourishing labour market, optimism abounds as positive economic conditions and ambitious government initiatives drive rapid growth.
“Saudi Vision 2030 is diversifying the economy and almost every sector is being scaled.
“With 69 per cent of employers planning to expand, opportunities are plentiful.
Simultaneously, 29 per cent of professionals are actively preparing to change positions. As many organisations strive to be the employer of choice, understanding shifting dynamics is crucial”.
The guide reveals a buoyant labour market poised for growth, with 69 per cent of employers in Saudi Arabia planning to increase their headcounts this year.
However, optimism is tempered by challenges such as a shallow skills pool – 50 per cent of employers report a scarcity of skilled professionals on the market.
To address talent challenges, employers are increasing their international recruitment and working to strengthen their employer brand.
Professionals in Saudi Arabia expect to receive fair compensation. Positively, the guide shows that 77 per cent of employers predict that salaries in their organisation will increase this year, most commonly by up to 5 per cent.
This level of salary increases indicates a positive outlook and shows that employers are willing to invest in their workforce.
Career development emerges as a critical factor in talent retention. The guide shows that of the 29 per cent of professionals that are actively planning to change organisations this year, a lack of career development opportunities is a primary reason.
Employers are encouraged to invest in relevant training programmes and mentorship opportunities to enhance job satisfaction and support career progression.
Remote and hybrid working options are a highly valued benefit among 25 per cent of professionals, with those receiving such options reporting higher job satisfaction and better work-life balance.
However, the guide highlights a significant shift back towards office-based working, with 69 per cent of employers reporting that their organisation adopts a fully-officed based model, a 14 per cent increase on the previous year.
The guide also highlights a notable disparity between professionals and employers regarding the provision of benefits.
While 37 per cent of professionals say they do not currently receive any benefits, just 4 per cent of employers claim not to offer any.
Most professionals (61 per cent) say that the benefits package is one of the most important factors to them when choosing an organisation.
The guide indicates that employers are taking a cautious approach with respect to AI as 39 per cent of organisations recommend its use in the workplace.
However, just 14 per cent of professionals say their organisation has prohibited the use of AI in their workplace.
While 38 per cent of employers anticipate that AI will eliminate more job opportunities than it will create, only 22 per cent are actively taking steps to address the potential impact.
Key details from the guide include:
- Professionals expect to receive fair compensation, which is why 79% predict salary increases in 2024
- Most professionals (49 per cent) state that their employer is not taking steps to ensure consistent transparency about how pay levels and pay rises are set
- 34 per cent of employers admit that their organisation is not taking action to ensure pay transparency
- Of the 29 per cent of professionals who are actively planning to change organisations in 2024, a lack of career development opportunities (47 per cent) is the number one reason why
- Aside from salary, the benefits package (61 per cent) is one of the most important factors to professionals when choosing an organisation in 2024
- The most popular benefits are child education allowances (43 per cent), air ticket or travel allowances (35 per cent), and flexible working (26)
- A substantial rate of organisational headcount increase is expected in 2024 as 36 per cent of employers aim to expand their workforce by more than 10 per cent
- Intention to hire is high as 95 per cent of all employers say they will recruit in some capacity in 2024
- Significant skills shortages persist as 50 per cent of employers report a scarcity of skilled professionals on the labour market
- Most professionals (72 per cent) are optimistic about the economic outlook and future employment opportunities
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