Rising rents, increased fuel prices and businesses unwilling to offer higher salaries are having an impact on employees in the UAE, according to a HR consultancy report.
According to the Robert Half 2023 Salary Guide salaries in the UAE are expected to stay at current levels, despite inflation concerns.
As a result employers are more likely to offer a package of benefits and perks in a bid to retain staff.
UAE job market
“With fuel prices increased dramatically since January and rents increasing at the fastest rate in eight years, moving to the UAE as an expat is not as appealing as it once was,” said the Robert Half report.
“While businesses are unwilling to increase salaries beyond current levels, some are making changes to overall packages,” it added following an online survey of professionals in the UAE.
31 per cent of employers are offering high or extra bonus payments and the same amount are increasing regular allowances.
Meanwhile 27 per cent of employers are allowing employees to sell back annual leave days
As well as improving bonus schemes and allowances there will be promotion opportunities for staff as companies look to retain the best talent.
The report said: “Rather than hiring new talent into the business at the most senior levels, many organisations are promoting from within.
“As candidate supply does not meet business demand in the UAE, career progression opportunities can help to retain highly skilled employees. However, opportunities for senior professionals are limited – but the market is booming for junior and mid-level candidates.
Staff turnover could reach record levels if employers do not do more to retain employees.
More than a quarter (28%) of employees are planning to look for a new job before the end of the year and almost half (46%) are considering a change next year.
Need for an improved salary is the most likely reason for wanting to move with 56% of people stating it as a key reason for moving. 37 per cent of people said their job lacks benefits and 36 per cent were disappointed by a lack of career progression.
“With the cost of living increasing quickly, it is no wonder that nearly half of employees are considering a new role in 2023. Employers should act now to retain their best talent or they could find it difficult to take advantage of growing opportunities in the UAE economy,” said Gareth El Mettouri, associate director for the Middle East.
Elsewhere in the report more than half (52%) of employees have noted an increase in colleagues leaving their company, corresponding with a decrease in employee satisfaction.
Despite this companies are filling vacancies and creating new roles as 59 per cent of workers say that the number of people joining businesses has increased.
In a separate report on the international ranking of global talent, the UAE was identified as the world’s fourth best country for attracting global talent.
The report, created by international business school Insead, shows how countries attract and retain talent.
Ranked on its ability to attract talent the UAE comes behind only Luxembourg, Singapore and Switzerland and is the highest in the Middle East.
Follow us on
