Qatar tops regional pay rises. HR professionals get the highest raise. Moderate jobs growth forecast for 2011. Egypt turmoil could impact talent availability in the Gulf
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Private sector salaries in the Gulf States are forecast to increase at an average rate of 6.6 percent this year, according to research released by GulfTalent.com.
The findings were published in Gulf Talent’s sixth annual review of labor market trends entitled "Employment and Salary Trends in the Gulf 2010-2011" and were based on a survey of 32,000 professionals and 1,400 companies across the six Gulf States.
Among countries, Qatar and Saudi Arabia had the highest pay rises in 2010 at 6.8% and 6.7% respectively. Oman was in third place with 6.4%, followed by Kuwait at 5.7%.
The UAE and Bahrain saw the smallest increases at 5.2% and 4.9% respectively.
Although much lower than the double-digit increases of 2008, the pay rises were all higher than the rates of inflation, resulting in improving living standards for many. However, an estimated 55% of professionals did not receive any pay increase at all.
Across the region, with consumer spending picking up, the retail sector saw the highest pay rise at 6.4%, while education had the smallest increase at 3.8%.
Among job categories, Human Resource professionals saw the highest raise at 7.1%. Many executives told GulfTalent.com that, with their companies increasingly focused on performance, the HR function had assumed a much greater significance. Lawyers had the smallest increases at 4.3%.
According to the study, pay increases were largely driven by the employers’ efforts to retain their top performers, growing demand for skill in Qatar and Saudi Arabia, as well as continued growth in Asia, the main source of talent for the Gulf.
With increasingly attractive career opportunities in their home countries, Asian professionals working in the Gulf received pay rises of 6.1% compared with just 3.2% for Western professionals.
Salaries in the booming Indian economy grew at 11.1% in 2010, compared with just 2.4% in the UK, where unemployment remains high following the financial crisis.
Based on the report findings, the Gulf’s labor market is witnessing "a small but fast-rising Chinese presence" – as employers seek substitutes for India and the Philippines, their traditional sources of skill, while a growing number of Chinese companies win major construction and energy contracts in the region, often bringing the required staff directly from China. Construction of a high-speed railway connecting Mecca and Medina, and a new port in Doha are among contracts recently awarded to Chinese firms.
Based on Gulf Talent’s study, the employment market in the Gulf is expected to continue growing at a moderate pace, aided by global economic recovery, rising oil prices and continued government spending on infrastructure projects. 61% of companies surveyed expected to increase headcount in 2011, compared to 9% who planned staff cuts.
Mobility and the rise of Qatar
Gulf Talent’s study highlight the rising prominence of Qatar as a destination for professionals. The trend has been driven by fast-rising salaries, falling cost of living, growing employment opportunities and an improving international brand, which came to a grand finale with the country’s surprise qualification to host the 2022 Football World Cup.
Based on an analysis of vacancies advertised by employers and recruitment agencies on GulfTalent.com website, job opportunities in Qatar have grown from 8% of all GCC vacancies in 2008 to 16% in 2010.
Gulf Talent’s survey of mobility intentions found that, while the UAE remains the most attractive destination for professionals, favored by 49% of GCC-based expatriates, Qatar is closing in fast, with a 44% following. Based on current trends, Qatar could become the Gulf’s most popular destination for expatriates.
Meanwhile, employers across the region continued to tap into the talent pool in Dubai, the study said. In addition to professionals who had relocated from Dubai since the onset of the crisis, an estimated 5% of Dubai’s residents now commute daily to their jobs in Abu Dhabi, a five-fold increase since 2008.
A similar trend was found in Bahrain, where 2% of residents cross the border each day to Saudi Arabia’s Eastern Province, the home to the country’s oil and petrochemical industries, up from 1% in 2008.
Despite outflows resulting from job cuts, the UAE remained far ahead of all other Gulf countries in terms of popularity with its current residents, thanks to its superior infrastructure. 72% of UAE residents prefer to remain there, compared to 59% in Kuwait and 50% in Qatar.
Impact of Middle East turmoil
According to the study, potential turmoil in the wider Middle East region, most recently in Tunisia and Egypt, could have a mixed impact on the availability of talent in the Gulf during 2011.
Any sustained upheavals "could increase the supply of Arab professionals from regional hotspots who will seek careers in the Gulf, putting downward pressure on salaries", the study said, citing the experience of the 2006 conflict in Lebanon which resulted in a mass migration of Lebanese professionals to the Gulf.
The report adds that "the resulting coverage of the region in international media may deter some Western professionals from relocating to the Gulf", similar to the trend seen in 2003 in the immediate aftermath of the Iraq war.
Events in North Africa have also drawn attention to spiraling food prices and the challenges of youth unemployment. According to the study, employers in the Gulf are likely to face tougher workforce nationalization targets in 2011, as governments accelerate existing efforts to create jobs for their nationals, particularly in Bahrain and Oman which according to UNDP statistics, have the highest rates of unemployment in the GCC.
Gulf Talent’s study was based on a survey of 32,000 professionals and 1,400 companies in the six countries of the Gulf Cooperation Council (GCC), as well as interviews with regional business leaders and human resource managers. The survey was conducted during December 2010 and January 2011. The full publication entitled "Employment and Salary Trends in the Gulf 2010-2011" is available for download free of charge.
For more in and new jobs please go to my links
http://working-in-gulf.blogspot.com/
Private sector salaries in the Gulf States are forecast to increase at an average rate of 6.6 percent this year, according to research released by GulfTalent.com.
The findings were published in Gulf Talent’s sixth annual review of labor market trends entitled "Employment and Salary Trends in the Gulf 2010-2011" and were based on a survey of 32,000 professionals and 1,400 companies across the six Gulf States.
Among countries, Qatar and Saudi Arabia had the highest pay rises in 2010 at 6.8% and 6.7% respectively. Oman was in third place with 6.4%, followed by Kuwait at 5.7%.
The UAE and Bahrain saw the smallest increases at 5.2% and 4.9% respectively.
Although much lower than the double-digit increases of 2008, the pay rises were all higher than the rates of inflation, resulting in improving living standards for many. However, an estimated 55% of professionals did not receive any pay increase at all.
Across the region, with consumer spending picking up, the retail sector saw the highest pay rise at 6.4%, while education had the smallest increase at 3.8%.
Among job categories, Human Resource professionals saw the highest raise at 7.1%. Many executives told GulfTalent.com that, with their companies increasingly focused on performance, the HR function had assumed a much greater significance. Lawyers had the smallest increases at 4.3%.
According to the study, pay increases were largely driven by the employers’ efforts to retain their top performers, growing demand for skill in Qatar and Saudi Arabia, as well as continued growth in Asia, the main source of talent for the Gulf.
With increasingly attractive career opportunities in their home countries, Asian professionals working in the Gulf received pay rises of 6.1% compared with just 3.2% for Western professionals.
Salaries in the booming Indian economy grew at 11.1% in 2010, compared with just 2.4% in the UK, where unemployment remains high following the financial crisis.
Based on the report findings, the Gulf’s labor market is witnessing "a small but fast-rising Chinese presence" – as employers seek substitutes for India and the Philippines, their traditional sources of skill, while a growing number of Chinese companies win major construction and energy contracts in the region, often bringing the required staff directly from China. Construction of a high-speed railway connecting Mecca and Medina, and a new port in Doha are among contracts recently awarded to Chinese firms.
Based on Gulf Talent’s study, the employment market in the Gulf is expected to continue growing at a moderate pace, aided by global economic recovery, rising oil prices and continued government spending on infrastructure projects. 61% of companies surveyed expected to increase headcount in 2011, compared to 9% who planned staff cuts.
Mobility and the rise of Qatar
Gulf Talent’s study highlight the rising prominence of Qatar as a destination for professionals. The trend has been driven by fast-rising salaries, falling cost of living, growing employment opportunities and an improving international brand, which came to a grand finale with the country’s surprise qualification to host the 2022 Football World Cup.
Based on an analysis of vacancies advertised by employers and recruitment agencies on GulfTalent.com website, job opportunities in Qatar have grown from 8% of all GCC vacancies in 2008 to 16% in 2010.
Gulf Talent’s survey of mobility intentions found that, while the UAE remains the most attractive destination for professionals, favored by 49% of GCC-based expatriates, Qatar is closing in fast, with a 44% following. Based on current trends, Qatar could become the Gulf’s most popular destination for expatriates.
Meanwhile, employers across the region continued to tap into the talent pool in Dubai, the study said. In addition to professionals who had relocated from Dubai since the onset of the crisis, an estimated 5% of Dubai’s residents now commute daily to their jobs in Abu Dhabi, a five-fold increase since 2008.
A similar trend was found in Bahrain, where 2% of residents cross the border each day to Saudi Arabia’s Eastern Province, the home to the country’s oil and petrochemical industries, up from 1% in 2008.
Despite outflows resulting from job cuts, the UAE remained far ahead of all other Gulf countries in terms of popularity with its current residents, thanks to its superior infrastructure. 72% of UAE residents prefer to remain there, compared to 59% in Kuwait and 50% in Qatar.
Impact of Middle East turmoil
According to the study, potential turmoil in the wider Middle East region, most recently in Tunisia and Egypt, could have a mixed impact on the availability of talent in the Gulf during 2011.
Any sustained upheavals "could increase the supply of Arab professionals from regional hotspots who will seek careers in the Gulf, putting downward pressure on salaries", the study said, citing the experience of the 2006 conflict in Lebanon which resulted in a mass migration of Lebanese professionals to the Gulf.
The report adds that "the resulting coverage of the region in international media may deter some Western professionals from relocating to the Gulf", similar to the trend seen in 2003 in the immediate aftermath of the Iraq war.
Events in North Africa have also drawn attention to spiraling food prices and the challenges of youth unemployment. According to the study, employers in the Gulf are likely to face tougher workforce nationalization targets in 2011, as governments accelerate existing efforts to create jobs for their nationals, particularly in Bahrain and Oman which according to UNDP statistics, have the highest rates of unemployment in the GCC.
Gulf Talent’s study was based on a survey of 32,000 professionals and 1,400 companies in the six countries of the Gulf Cooperation Council (GCC), as well as interviews with regional business leaders and human resource managers. The survey was conducted during December 2010 and January 2011. The full publication entitled "Employment and Salary Trends in the Gulf 2010-2011" is available for download free of charge.
Gulf salaries rise by 11.4% |
Inflation and talent shortages drive up salaries, but pay rises may ease with influx of Western expatriates following global downturn Private sector salaries in the Gulf region increased at an average rate of 11.4% over the last year, according to figures released by Gulf Talent. In its fourth annual survey of salary trends in the region entitled “Gulf Compensation Trends 2008”, GulfTalent.com revealed the following increases in basic salary by country, over the twelve-month period to August 2008:  The UAE and Qatar topped the list of pay rises with increases of 13.6% and 12.7% respectively. This was followed by Oman at 12.1%. Bahrain came fourth at 10.5%. Kuwait and Saudi Arabia once again came at the bottom, with average rises of 10.1% and 9.8% respectively, though still high by historical standards. All six markets saw pay increases accelerate relative to last year. The majority of these, however, are still below the forecast rates of inflation for 2008, suggesting diminishing net disposable incomes as pay rises fail to keep up with rising cost of living. A notable exception is Bahrain, where the average salary increase of 10.5% is marginally higher than the 9.0% inflation rate forecast for the country this year. Across the region, the frantic pace of growth in the construction and energy sectors escalated demand for engineers, who received the biggest average pay rises. This was followed by finance professionals in second place, largely due to the rapid expansion in the banking sector |
Five-day week
According to the report, the region’s ongoing war for talent is forcing employers to adjust, not only their salaries, but also their working practices.
In a major new trend, 2008 has seen a large number of companies with six-day working weeks, including many in construction and retail sectors, switch to shorter five-day weeks in an effort to improve staff retention. The trend is expected to continue towards further consolidation of the five-day week, bringing the region into line with much of the rest of the world.
Another common trend is the emergence of pay disparities between new and existing employees. Several employers surveyed by Gulf Talent reported offering higher packages to new hires than those received by existing staff in similar roles, as firms struggle to attract talent in a tight market. The disparities are causing significant tension among employees, sometimes leading to further attrition, requiring yet more recruitment at higher pay, the report said.
According to the report, the region’s ongoing war for talent is forcing employers to adjust, not only their salaries, but also their working practices.
In a major new trend, 2008 has seen a large number of companies with six-day working weeks, including many in construction and retail sectors, switch to shorter five-day weeks in an effort to improve staff retention. The trend is expected to continue towards further consolidation of the five-day week, bringing the region into line with much of the rest of the world.
Another common trend is the emergence of pay disparities between new and existing employees. Several employers surveyed by Gulf Talent reported offering higher packages to new hires than those received by existing staff in similar roles, as firms struggle to attract talent in a tight market. The disparities are causing significant tension among employees, sometimes leading to further attrition, requiring yet more recruitment at higher pay, the report said.
Only 8% satisfied with salaries in UAE
Only eight per cent of UAE respondents to a regional survey said they were highly satisfied with their current wage - among the lowest rates in the region, reflecting the level of dissatisfaction among the region's growing workforce.
Dubai: Only eight per cent of UAE respondents to a regional survey said they were highly satisfied with their current wage - among the lowest rates in the region, reflecting the level of dissatisfaction among the region's growing workforce.
According to the second Consumer Confidence Index (CCI) conducted by employment website Bayt.com and market researcher YouGov Siraj, 63 per cent of UAE respondents felt that wages have not kept pace with the cost of living.
In comparison, 14 per cent of people in Qatar and 13 per cent in Saudi Arabia expressed high satisfaction with their current salaries.
"These figures, while not particularly encouraging, are still extremely valuable," said Rabea Ataya, CEO, and Bayt.com.
"Knowing that consumers feel their wages aren't keeping up with prices allows people who have an influence in these matters to work to set things straight," Ataya added.
Divided response
In general, respondents to the survey were divided about the region's economic prospects based on their nationality.
Asians have the highest levels of confidence, with 68 per cent upbeat about their personal financial prospects and 63 per cent saying they expected economic improvements in their resident countries in the year ahead.
Some 62 per cent of GCC nationals felt a similar optimism, while only 44 per cent of Westerners predicted a good year ahead for their resident countries.
Just over half of UAE respondents said they felt upbeat about their country's economic prospects, a figure that reached a low of 27 per cent in Lebanon and a high of 59 per cent in Qatar.
According to the results, consumer spending in the UAE economy is at a high. The Propensity to Consume Index for the UAE registered a robust 103.6 for the UAE in July versus the 100 benchmark in April's survey.
The survey links this trend to increased tourism during the summer months and the inclination of residents to take advantage of seasonal special offers such as Dubai Summer Surprises promotions.
"People in the UAE are taking advantage of seasonal offers, but we see similar increases in anticipated spending across all countries," said Ataya.
For more in and new jobs please go to my links
http://working-in-gulf.blogspot.com/
For more in and new jobs please go to my links
http://working-in-gulf.blogspot.com/
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