Managers in UAE enjoy best pay says study
Manama, July 20, 2007
Managers in Saudi Arabia and the UAE take home the highest disposable incomes worldwide, with pay equating to buying power in excess of $220,000, according to management consultancy Hay Group.
Hay Group’s World Pay Report was compiled by comparing detailed cross-country pay information from Hay Group PayNet, at management (head of function/department) level.
“Managers in Saudi and the UAE enjoy soaring levels of take-home pay, as employers in this region pay more attention to cash rather than performance-based incentives,” said Vijay Gandhi, Reward Information Services Manager for Hay Group Dubai.
“But as demand for experienced managers remains high, companies in the region are looking more closely at the use of long-term incentives as a way of attracting and retaining international talent.”
Egypt ranks 35th with $97,001 average pay.
The international finance and trade centre of Hong Kong ranks third, with pay buying power equivalent to $203,947.
“Pay rates for management have traditionally been high in Hong Kong – up to more than a third higher than other Asian cities such as Singapore – with management buying power enhanced by low rates of income tax,” said Hern Yin Goh, Reward Information Services Manager for Hay Group China.
Management pay in Western European countries fares poorly by comparison.
The UK is ranked just 40th in the management pay stakes, Germany is placed just 19th, with France 31st, and Italy 28th.
Only Spain, where the cost of living is lower, remains reasonably placed, taking 12th spot with disposable incomes of around $128,197.
In comparison, China’s rapid economic development is reflected in disposable incomes at management level averaging $126,281 - placing the country 14th in the world pay table.
However, despite its impressive economic development, the picture is far less encouraging in India. At 36th in the global pay stakes, managers in the country have buying power of just $92,750.
“Chinese companies have realised the need to attract management talent as economic acceleration continues apace, having a significant upward impact on managers’ pay,” said Hern Yin Goh.
“However, India benefits from a large tier of well educated, English-speaking local talent, making management pay more immune to the international market. That said, managers’ pay is increasing at double-digit rates in India - between 15 - 20 per cent - so it is unlikely to stay at the bottom of the pay table for long.”
US companies face competition for top-talent not only from other US companies, but also from companies in other countries that have a lower cost of living and a lower tax rate, research from global management consultancy Hay Group reveals today.
Hay Group’s research showed that management in the US is poorly paid compared to emerging economies. American managers are ranked just 24th in the world pay league table of 46 countries, with a buying power equivalent to an average salary of $104,905 when tax and cost of living are taken into account.
Hay Group is a global consulting firm that works with leaders to turn strategies into reality.
They develop talent, organise people to be more effective, and motivate them to perform at their best.
With 88 offices in 47 countries, they work with over 7,000 clients across the world.
Their clients are from the public and private sector, across every major industry, and represent diverse business challenges. Their focus is on making change happen and helping organisations realise their potential.
Hay Group’s World Pay Report, compiled using Hay Group PayNet, one of the world’s most comprehensive sources of compensation and benefits data, compares detailed pay, bonus, tax and cost-of-living information at all levels of employment, from unskilled work to senior management, in order to reveal disposable incomes f