The UAE and the larger Middle East region may have seen one of the strongest hiring seasons – especially at senior levels – in the last few months, with several talent acquisition firms indicating to report high double digit growth rates for the April-June 2022 quarter.
Post-pandemic pent-up demand, coupled with the expansion plans being planned and implemented by companies and organisations across the Gulf region is driving the sharp surge in hiring.
The hiring demand pick up is seen across industries, with retail, infrastructure and consumer industries leading the table.
The hiring spree in the region, however, could see a bit of a slowdown in the coming months as industry executives anticipate market sentiments getting impacted due to factors including rising concerns on high inflation and hardening of interest rates globally, which could change the outlook on profitability for businesses.
Prolonged geopolitical tensions between Russia and Ukraine and Covid lockdowns in parts of Asia adversely impacting supply chain operations of firms are other concerns which could affect the pace of hiring.
“We could be reporting one of our best quarters in terms of growth in the UAE/Middle East market in the quarter ending June, since we set up operations there,” A Ramachandran, managing partner EMA Partners UAE, leading global leadership search and consultancy firm, told Arabian Business.
The leadership search and consultancy firm is expected to report over 40 percent growth during April-June period, though the end of the quarter is still 2-3 weeks away.
“As we speak, we are handling 20-25 mandates for CXO level – C-suite level executives – hiring for companies in the Middle East,” said Ramachandran, who is also the senior partner for EMA Partners in India, reflecting the strong pipeline of hiring mandates by talent acquisition consultancies.
Senior executives at other talent acquisition firms in the UAE and larger Middle East region also confirmed the robust demand pick up in top level hiring this quarter.
“We are in a very interesting time – the market is active and vacancies at the senior level continue to flow in,” Greg Wright, co-founder and managing partner of Food People, termed as the only end-to-end food sector recruitment firm in the Middle East, told Arabian Business. Wright, however, said they were still in a very talent driven market – meaning there are more openings than there are qualified people to execute and deliver on the requirements of each job.
“The current macroeconomic factors, coupled with the shortage of qualified people to execute and deliver have created an extremely talent driven market.
“Also, it is not uncommon for top talent to have multiple opportunities and a strong probability of a counter offer – these elements have made it a more competitive process,” Wright said.
Ramachandran also confirmed this, saying: “There is a good market for good talent who can drive hard negotiations.”
On concerns of a demand slowdown, Ramachandran said their firm is yet to see any signs of a tapering off of mandates, though there are worries on that front.
“As of now, these [indications] are seen by way of some of the companies taking longer to close positions,” he said.
Ramachandran, however, said: “We should be cautiously watchful going forward, as the real issues – rising inflation, interest rates, supply chain concerns – are coming to the forefront for companies.”
A senior human resource executive with a UAE-based realty company, said the toughening macroeconomic environment has made companies a bit cautious on senior level hiring.
According to Wright, while the food industry has recovered relatively well from the pandemic, increased inflation and supply chain challenges have led many organisations to take a more conservative approach to hiring.
“Many organisations have expanded their hiring process to include more interviews, case studies and external assessments. While these steps could be considered “better practice”, it is important to balance the candidate experience,” Wight said.
Wright also added that while macroeconomic factors can shift, Food People has found that companies with a long-term vision and strategy are increasingly more focused on upgrading their ‘people capabilities’ to win the war on talent.
Confirming this observation, Panchali Mahendra, Dubai-based managing director of global hospitality major Atelier House, said the hiring by the F&B sector in the region was not going to see any slowdown, as currently top players in the industry are busy implementing their expansion plans of their chains and restaurants to be ready for the August-October season.
“Though the summer months may see a slowdown in terms of sales, companies will be eager to see their new teams in place and perfection by the time they open their doors of their new ventures and the new season,” Mahendra said.
“The hiring by the industry is only going to see higher percentages going forward as the growth tempo of the UAE F&B industry is going to hit a strong pitch for the next five years,” said Mahendra, considered as a doyen of the F&B industry in the region.
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