Gulf Business recently published their results of the 2017 salary review. Those of use resident in GCC cannot have failed to notice the impact of the ‘low’ oil price on demand for goods and services. Further research suggests that employers are devising other ways of motivating their staff.
The results for the UAE show that a typical Western expat did not receive a rise large enough to compensate for the increased cost of living. The average monthly salary increasing from about AED46,000 per month to roughly AED46,300.
Those reading this post from outside the UAE may think the figure is already high. But I should remind them most expats pay school fees and rent out of these figures. Rent running at about AED15,000 per month for standard accommodation and school fees of between AED4,000 and AED8,000 per child, this money is soon eaten away.
So, if employers are not providing more money how are they retaining their top talent? In a market hit by lay-offs employers appear to be providing job security which is highly valued by employees.
Those with a long term HR strategy seek to provide more comprehensive employee benefits than they are required by law, such as cover for dependants and communicate the value of these benefits clearly to staff in terms of what they would cost if staff purchased them individually.
When that is not enough and employees decide to leave, their expectations for salary increases are much lower with one recruitment company stating the typical applicant is usually seeking an increase of about 5%.
Please let me know if you have any questions or comments.