Gulf bosses are optimistic about the state of the labour market, with a majority expecting to give worker pay rises this year, according to the latest Hays Middle East Salary Guide.
Despite global adversities, the labour market in the Gulf region is thriving and all signs point to further growth.
The findings in the guide confirm this, with 67 per cent of employers wanting to grow their organisation’s headcount this year.
Gulf Salary Guide 2024
Simultaneously, 31 per cent of skilled workers are actively preparing to change roles. In a tight talent market, this presents opportunities for strategically positioned organisations, while organisations with less clearly defined plans run the risk of losing out.
Oliver Kowalski, Managing Director of Hays Middle East, said: “2024 is shaping up to be another exciting year. The transformation of the economy is continuing at pace, as is the pursuit of the government’s long-term goals.”
A shift in labour market trends reflects a complex dynamic. The guide reveals that 41 per cent of employers say that overall, there are more candidates applying for jobs than in the past.
Simultaneously, 41 per cent highlight a shortage of skilled professionals, and 23 per cent emphasise that competition from other employers is very fierce.
To raise the competency bar and then keep their best people, organisation will need to invest in employee training and retention programmes, along with recruiting talent currently in possession of the skills they need.
The guide shows that 78 per cent of employers in the Gulf region predict that salaries in their organisation will increase this year, most commonly by 5 per cent or less.
Such a high percentage of salary increases indicates a positive sentiment and a proactive approach to workforce management, which aligns with the idea of a buoyant job market, competitive talent landscape, and an overall optimistic economic outlook.
For many professionals, a comprehensive benefits package is significant. The guide reveals that while only 5 per cent of employers claim not to offer any benefits, a significant 41 per cent of professionals state that they do not receive any.
Employers should consider revisiting how they communicate their benefit offerings to address the gap in employer-professional perceptions of the benefits offered versus what they receive.
The emergence of generative AI tools in the mainstream has prompted much debate. The guide indicates that employers in the Gulf region are divided on the use of AI technologies or tools in the workplace, with just 41 per cent recommending its use.
Most employers say there has been no significant impact on employment due to AI. However, 37 per cent think that AI will eliminate more job opportunities than it will create.
To keep up with the changing job market and technological evolution, training is crucial. However, just 14 per cent of employers say they are offering upskilling or reskilling AI training programmes to employees.
The report offers detailed analysis by sector, with highlights including:
- The Construction and Property sector is booming, driven by positive economic conditions and ambitious government initiatives. In Saudi Arabia, the transformative Saudi Vision 2030 plan fuels growth, while the UAE is experiencing increased demand for real estate, prompting substantial hiring to meet project demands.
- The Banking and Financial Services sector is experiencing robust growth and witnessing high headcount increases. In the UAE, increases in bond/Sukuk activity and successful M&A/IPOs fuels hiring. Meanwhile, in Saudi Arabia, increased lending, advisory, and transaction support, coupled with unmatched investment activity, is creating a surplus demand for top talent.
- The Technology sector propels diversification amid global challenges. Robust investment is creating diverse opportunities, increasing demand for skilled professionals. The UAE leads in technological innovation, while Saudi Arabia focuses on infrastructure development. Start-ups and local players drive regional hiring, shaping a dynamic digital landscape.
Key statistics from the guide include:
- Professionals want to be adequately remunerated, which is why 75 per cent expect salary increases in 2024
- 78 per cent of employers predict that salaries in their organisation will increase this year, most commonly by 5 per cent or less
- Of the 31 per cent of professions who are actively planning to change organisations in 2024, a lack of career development opportunities is the number one reason why
- Aside from salary, the benefits package (60 per cent) is the number one factor attracting employees to a new role in 2024
- The top three benefits most valued by employees are air ticket/travel allowances (40 per cent), child education allowances (38 per cent), and flexible working (31 per cent)
- 92 per cent of all organisations are planning to recruit permanent employees, temporary employees, contractors, or freelancers in 2024
Hays Middle East has released its latest Salary Guide for the Gulf region, in which it provides comprehensive salary data for almost 400 roles across 11 professions, with the latest labour market trends based on expert insights and the analysis of a survey of more than 2,300 employers and working professionals.
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