PAY RISES MAY BE AROUND CORNER FOR UAE EMPLOYEES
▶ Salaries might remain flat in the finance sector this year, but an increase in HR pay and benefits is likely, report Felicity Glover and Deepthi Nair
There is positive news for employees and jobseekers in the UAE this year, with salaries expected to rise by an average of 4 per cent to 7 per cent amid a strong jobs market and demand for talent, according to recruitment specialists.
The UAE’s recruitment market has undergone several positive shifts over the past 12 months, reflecting the Emirate’s continuing commitment to economic diversification and technological innovation, Cooper Fitch says in its UAE Salary Guide 2024 report.
“A larger proportion of UAEbased organisations grew their headcount in 2023 than in 2022, and more than half of this year’s respondents intend to increase remuneration in 2024,” says Trefor Murphy, founder and chief executive of Cooper Fitch.
“This is positive news for jobseekers in the Emirates, as greater demand for talent typically results in higher salaries.”
The UAE jobs market has made a strong recovery from the coronavirus-induced slowdown, driven by the government’s fiscal measures over the past few years.
The Arab world’s second-largest economy has undertaken several economic, legal and social reforms to strengthen its business environment, increase foreign direct investment, attract skilled workers with new visas and provide incentives to companies to set up or expand their operations.
It has also introduced an unemployment insurance programme, which came into effect in January last year.
The UAE has shifted to an employers’ market, as more people move to the UAE because of economic headwinds in other countries, recruitment consultancy Robert Half says in its 2024 Salary Guide report.
However, the influx of talent and greater competition for roles mean candidates are willing to accept lower salaries to start their careers in the UAE, which brings down the overall market rate and restricts wage growth, Robert Half says.
This month, a report by global human resources platform Deel found that the UAE is the world’s most popular country for international talent seeking employment visas.
“The UAE’s commitment to talent, innovation and a dynamic business environment is clearly resonating with international professionals and solidifying its position as a top hiring destination,” said Tarek Salam, head of expansion at Deel, which gathered data from 300,000 work contracts across 160 countries for the report.
“The UAE’s diverse and multicultural workforce is its greatest asset. By attracting and retaining international talent, the country is positioning itself for continued economic growth and success in the global marketplace.”
About three quarters, or 73 per cent of candidates, plan to remain in the UAE for at least five years, citing career opportunities, safety and living conditions as their main priorities, according to the Michael Page 2024 Salary Guide.
Salary remains the largest driver for a job move in the UAE, showing that compensation is still vital when attracting top talent, the report says.
“The UAE’s attractiveness as a place to live and work continued to play an essential role in attracting and retaining high-quality candidates from abroad,” Jon Ede, regional director for the UAE at the PageGroup, says in the report.
Although recruitment specialists expect salaries to increase by an average of 4 per cent to 7 per cent in 2024, they point out that a salary rise is not guaranteed for all employees in the UAE
The pay rise also depends on an employee’s sector, as well as their performance and employers’ budget, recruiters say.
Shiraz Sethi, regional head of employment at law company Dentons, says employees who have contributed to a company’s revenue growth or an increased level of productivity in business are likely to receive a salary increase.
“Essentially, this could be applicable to employees who are constantly showing outstanding performance and are exceeding the company’s expectations,” he says.
“Employees who receive outstanding results in their performance reviews may also be in a better position to negotiate a salary increase based on merit.”
Most employees are expecting a rise of about 3 per cent to 6 per cent at the top end, according to David Mackenzie, group managing director of recruitment specialist Mackenzie Jones.
However, Nevin Lewis, chief executive and principal consultant at Black & Grey HR, says the average raise could reach as high as 7 per cent.
“[Recently], we helped a senior marketeer land a leadership role in Dubai with a salary that’s 10 per cent higher than what we saw last year for a similar role.”
During the pandemic, many employees cited a better work-life balance as their main reason for switching jobs, according to Michael Page.
However, this has declined compared to previous years, with salary returning as the main driving force for candidates to switch roles, it adds.
“This is an unsurprising shift, given the economic changes we face as the cost of living increases.”
Salaries will remain relatively flat in the finance sector this year, but there is increased demand for middle management staff and analysts, according to Robert Half’s salary guide.
More businesses are also offering profit-sharing opportunities, the recruiter adds.
There has been a steep rise in compensation and benefits in the HR, secretarial and office support sectors, Robert Half says. “While the package is important, HR candidates are more interested in company culture and building a longterm career than candidates in other sectors,” it adds.
Salaries for private practice lawyers remain high, but those fluent in both Arabic and English will be able to command the best remuneration packages, according to Robert Half.
In the property sector, there has been significant and sustained demand over the past two years for development professionals at various levels, spanning from junior to executive positions, according to Michael Page.
Sales professionals in the business-to-business sector who have niche expertise across industries are in high demand in the UAE, the Michael Page report says.
In the business-to-consumer sector, there is an increased focus on identifying talent with strong capabilities in developing products and brand strategies, while the need for professionals with existing in-depth consumer and market understanding is critical, it adds.
Competition is high in the shipping and logistics sector, as organisations focus on enhancing customer service, according to Michael Page.
“The majority of organisations across industries are focusing on hiring ERP [enterprise resource planning] super users for junior and mid-level hiring,” it adds.
The technology, telecoms and digital sectors have seen less movement in salaries over the past 12 months – a trend that is expected to continue into 2024, Robert Half says.
However, it adds that there is significant demand for project managers and senior leaders who can set up offices as more businesses move into the region.
Michael Page says automation, robotics and new technologies are becoming increasingly important in the engineering and manufacturing sector.
“Experience with quality management systems and regulatory compliance are also becoming more and more valuable to the value chain … employers are looking for talents with the expertise of quality control methodologies such as Six Sigma and Lean Manufacturing,” the report says.
The UAE’s rapid adoption of healthcare technologies means there is a high demand for skilled professionals with experience in telemedicine, electronic health records, and health data analytics, Michael Page says.
Technology, telecoms and digital sectors have seen less salary movement over the past 12 months, says recruiter Robert Half