By Sam Bridge
Latest Hays 2020 GCC Salary & Employment Report show more than 50% of working professionals did not receive pay rise last year
More than 50 percent of GCC working professionals say they did not receive a pay rise in 2019, according to new research by Hays.
The latest Hays 2020 GCC Salary & Employment Report found 54 percent of salaries in the GCC region remained the same year-on-year in 2019, 41 percent increased and 5 percent decreased.
Hays surveyed more than 6,800 employers and employees across the Gulf region asking questions about salaries and employment experiences in 2019, as well as their expectations for 2020.
Of the 41 percent that received a pay increase in 2019, the survey found that the most common was an uplift of up to 5 percent, slightly down on the 5-10 percent increase reported the year before.
At the other end of the spectrum, there were half as many pay cuts experienced in 2019 than in 2018 when nearly 10 percent of working professionals said they had their salaries reduced.
“The differences in pay increases year-on-year were marginal and positively there were far fewer reductions to salary in 2019 compared to 2018. These findings reflect the overall stable market conditions we are experiencing in the local jobs market”, said Chris Greaves, managing director of Hays in the Gulf region.
“The real take away from this research is the reasons why people received a pay increase in 2019 and what these findings tell us about salaries for the year ahead”, he added.
The report found starting a new job with a new company and individual performance related pay were the top two factors driving pay rises in 2019.
The report found the most significant pay increases (those over 15 percent) were awarded to professionals within the accounting & finance and technology professions.
Looking ahead, the survey found 66 percent of employers and 59 percent of employees expect salaries to increase in 2020.
This compares to 62 percent of employers and 69 percent of employees who said the same the prior year.
“These statistics show great confidence and optimism in the market over the next 12 months. However, they are not dissimilar to the previous two years survey predictions, when in reality just over 40 percent of professionals received a pay rise in 2019,” said Greaves.
“We expect salaries to remain largely the same year-on-year in 2020 compared to 2019, with pay increases being individually determined. Once again, we anticipate the highest salaries to be paid to those with proven experience and niche technical skill, who enable fulfilment of business objectives,” he added.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.