Delaying pay rises for professionals and white-collar workers is one of the biggest factors in employee turnover, according to new research by global recruitment company Robert Walters.
In its 2025 salary benchmarking report, Robert Walters Middle East Salary Survey 2025, more than two-thirds (68 per cent) of employers interviewed during the research said delayed pay rise has led to a higher rate of turnover within their teams.
Pay rise delays drive job dissatisfaction
Many employers face difficult financial decisions regarding controlling overheads, and in many cases, that has meant deferring or scaling back salary reviews.
While this approach may offer short-term savings, 32 per cent of respondents said that delaying pay rises has led to a high rate of disengagement within their teams. Over time, this could have wider implications for morale, higher turnover, and company culture.
Jason Grundy, Managing Director at Robert Walters, commented: “Businesses are under immense pressure to keep costs down, and for many, salary increases just haven’t been feasible this year. In fact, 77 per cent of business leaders said budget constraints and business performance were the top reasons for delaying or reducing pay rises.
“Our research shows that these decisions, while understandable, are not without consequence. Whether it’s higher turnover or a gradual drop in motivation, companies are feeling the effects.”
However, the survey also revealed a widening disconnect between employer decisions and employee expectations. Sixty-seven per cent of employees who didn’t receive a pay rise this year are actively looking for a new job. Even those who did receive an increase, 65 per cent admitted they are searching for a new job, saying the pay rise was lower than expected.
Grundy added: “There’s a clear message here: even if employees understand the business pressures, unmet expectations are still pushing them to reconsider their options. And with AI tools streamlining the job application process, employees have more opportunities than ever to explore new roles.
“This is where salary benchmarking and market insights become so important. Workers who haven’t seen a pay rise may be planning to discuss salary in their mid-year reviews, and employers will need market data to communicate credibly, demonstrate fairness, and manage expectations.”
Employee priorities and job market trends
For the survey, Robert Walters analysed over 100,000 roles advertised in the Middle East over a 12-month period to calculate the upper and lower limits of the salary range, as well as the mean salary and pay rate of each advertised role. It also spoke to over 1,100 professionals in the region.
When asked to name the top three company benefits, employees chose annual bonuses (84 per cent), followed by paid leave and flexible working (78 per cent), and school fee contributions (66 per cent).
In the Middle East, 82 per cent of those interviewed are looking for a new job in 2025, while 59 per cent are expecting a pay rise during the year. More than half (54 per cent) are confident about job opportunities in their own sector, and 27 per cent are concerned about their company’s ability to attract employees in 2025.
Beyond pay, Robert Walters advises employers to think creatively about what they can offer, including meaningful career development, flexible working arrangements, and internal mobility pathways.
“We’re seeing more employers ask how they can retain their best people when pay increases aren’t on the table,” Grundy added. “When salaries are constrained, culture and communication matter more than ever. The organisations that succeed will be those that balance cost control with a thoughtful, market-informed approach to employee engagement.”
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