By Andy Sambidge
New Hay Group report also says salaries have increased by 3.7% during past 12 months
Employees in Bahrain are forecast to see pay rises averaging 4.6 percent next year, Hay Group has said in a new report.
Its survey of 16,800 employees from 75 companies in the Gulf kingdom said that despite regional economic turbulence, salaries in Bahrain remained steady.
Over the last 12 months, Bahrain employees have received an average basic pay rise of 3.7 percent, the report said.
With inflation in 2012 at 2.5 percent, the real increase in spending power of employees is 1.2 percent, it added.
This is a continuation of the trend of steady increases since 2008, Hay Group's report said.
"Stability and continuity is evident in the year on year pay increases," said Harish Bhatia, a consultant at Hay Group.
"Bahrain has not witnessed an increase of more than four percent year on year, in any of the last four years. Pay has been tracking just ahead of inflation since 2010 which is in contrast to its regional neighbours where salary movements have seen peaks and troughs."
Hay Group reported that employers in Bahrain are succeeding in retaining employees for the long term and providing equitable, competitive packages.
"Our data shows that 15 percent of the workforce in Bahrain has been employed with the same employer for more than 20 years which is almost unheard of in the Gulf region, save for Oman," Bhatia added.
"Another reason for Bahrain's long term employment is that most organisations in Bahrain employ a significant population of Bahraini Nationals, this is a contrast to most other GCC countries," he said.
This year's report also saw some levelling of pay between industry sectors said Bhatia.
"Whilst the dominant industries of oil, gas and banking still pay above the market, this year banking witnessed a comparatively lower salary increase than other industries."