Banking sector bonuses and benefits have also been slashed, according to a new report from recruit Michael Page
Salaries for Middle East-based C-level banking sector professionals have been cut by as much as 25 percent over the last year, a more significant reduction than in other sectors, according to a new report from recruitment firm Michael Page.
In its 2019 Salary Guide, Michael Page fund that senior banking sector salaries decreased by between 20 and 25 percent over the last year, while middle management positions saw average declines of 5 to 10 percent.
Salaries for junior level roles in the sector were found to have remained flat.
“Benefits such as schooling allowance for children have either been reduced or taken away altogether in the banking sector,” the report noted. “Finally, bonuses are no way near attractive, with average payouts of 1-2 months, versus 3-4 months pay-out a few years back.”
Of the sectors analysed in the report, salaries in the construction sector were also found to have dipped slightly, which Michael Page said is partly due to a thinking of the construction pipeline caused by an increase in competition between contracting companies in the region.
“Some of the key construction companies who were first on the ground and top in the region now have thinning pipelines and are being undercut in tender by their direct competitors,” the report said.
“On top of this, multiple projects are in last phases and handing over for the Expo 2020 and there are fewer projects being announced which leaves a larger pool of candidates, making it a candidate driven market and driving the average project delivery salary down.”
Salaries in the retail and oil and gas were found to have remained largely stable or diminished slightly.
While salaries in the financial services sector were found to have not been impacted by ongoing moves to automate and digitise accounting processes, many accounting functions for companies are increasingly being based in India or East Asia or are planning to move their soon.
“Hence, the salaries have not been impacted as much as the roles themselves,” the report said. “Furthermore, there is a rise in demand for candidates with business partner and FP&A (financial planning and analysis) functions and the salaries for these roles have seen an upswing of about 10 percent in the region.”