Global employment, which was severely hit by the pandemic, is beginning to rebound as economies reopen. The UAE, which was particularly hard impacted due to the COVID-19, is now resuming recruitment and attracting the top candidates.
However, today’s market is exceedingly competitive, with many companies struggling to compete in the war for talent, necessitating a re-evaluation of employee salaries and benefits.
The talent war
Speaking to TRENDS, Gareth El Mettouri, Associate Director for the Middle East at Robert Half, a global human resource consulting firm, said the most significant challenge for many companies now is bringing expat talent to the region.
“We’re seeing a lot of demand for employees and a shortage of them in Central Europe and the United Kingdom, where we look for our candidates. Those people now have a variety of job opportunities in their own countries, while salaries here in the UAE are still not comparable to pre-COVID-19 times,” El Mettouri said.
“Thus, candidates will avoid taking the risk of relocating to another country while their home country’s salaries are high. As a result, we are now involved in a global talent war, with everyone competing for the same talent.”
El Mettouri said that local talent also is in high demand in the Gulf region, particularly given the significant number of Emirati and Saudi nationals studying in the West and returning to their home countries.
“Seven semi-government entities have the interest to attract local talent. And this will continue, particularly in Saudi Arabia, where several projects are already underway,” he said.
So, there is not just a talent war for foreigners, but also a talent war for locals, because local talent is in such great demand and has such a narrow skill set, he added.
Firms need to pay more
The pandemic had a significant impact on the UAE labor market. As a result, most businesses, whether in oil and gas, aviation, hospitality, or even manufacturing, have reduced staff or cut salaries by 10-50 percent in some cases.
Additionally, several fringe benefits have been reduced or eliminated. For example, many expats in the country have lost access to benefits such as schooling and flight allowance, which are critical components of their entire package.
El Mettouri asserted that the UAE is now experiencing a revival because of the government’s good management of the pandemic, as well as the high range of tourists and the rise in oil and gas prices.
“We’ve seen a bounce back here in the UAE, and salaries are more or less back to where they were. Some of the benefits have not returned to their pre-COVID levels. But I am confident that Q1 of next year will see a return to growth across the region, and we will see a significant increase in demand,” he said.
El Mettouri stated that candidates with skills in digital transformation, technology, e-commerce are in high demand and command the highest salaries. Those are in demand in the US, central Europe, and Asia.
So, clients here need to raise salaries to attract these talents since these skills are required globally. Alternatively, they should provide more flexibility in terms of working from home or remotely.
Working from home is here to stay
The global pandemic has served as a catalyst for more remote and flexible working methods, which employees constantly push for.
Many international and local businesses continue to move with remote working or some form of flexibility, whether it’s three days at home, two days at work, or two days at home, three days at work.
Working from home is here to stay, according to EL Mettouri, and many candidates are increasingly asking about this flexibility.
“Any company that provides this benefit will attract more talent, which is currently a top priority, and I believe this is true not only locally, but also globally.”
On the other hand, many businesses are now more adaptable to this type of employment because they have realized that their production has not been harmed as much as they had feared.