UAE firms are expected to hire more staff and increase salaries next year to attract and retain talents as the economic conditions improves, according to a report by Mercer.
The expected average raise in the salary for companies in high-tech, life science and consumers goods would be around 4 percent, higher than average raise of 3.6 percent in year 2020, while employers in the energy sector are planning for slightly lower increases of 3.8 percent,said Mercer’s Total Remuneration Survey.
Prioritizing hiring of employees with relevant skillset and developing attractive long-term incentive to retain them is an active objective of companies to help their businesses expand.
However, hiring and remuneration plans are still below the pre-pandemic levels and there is also a need for companies to offer flexible working arrangements that is in demand across globe, said Ted Raffoul, Career Products Leader, MENA, at Mercer.
The survey covered 599 companies across UAE with responses indicating that salaries in 2021 incremented at an average of 3.6 percent, lesser than 2019 and 2020 figures of 4.5 percent and 3.8 percent, respectively. Also, 14 percent of employers had no salary increments while it was around 10 percent in 2020 and expected to decrease to 5 percent in 2021.
Andrew El Zein, Associate Career for MENA at Mercer said that there has been an increase in recruitment activity in 2021 but, “the talent pool is still developing, causing somewhat of a talent war.” So, “to attract and retain top talent, employers must look to maintain pace with market-wide salary growth and benefits.”
Another report by recruitment specialist Robert Half said that salaries in the UAE are no longer competitive and businesses should increase their compensation offering to attract the best talent as the cost of living is increasing across the UAE.