Businesses to go on hiring spree, says survey
Dubai, October 31, 2010
Businesses across the globe are looking to hire new staff, in one of the first signs that economic recovery is on a sustainable upward trajectory. In the UAE, about 34 per cent of companies plan to add new staff next year, according to a recent survey.
The bi-annual 'Regus Business Tracker' survey, that interviewed over 10,000 businesses around the world, said over a third of companies (36 per cent net ) said they intend to increase headcount.
The fact that companies are looking to hire additional staff will be regarded as a significant indicator that the mindset of organizations has shifted towards investment in growth through human capital.
These findings are particularly significant, coming in the wake of recent IMF and ILO observations that global unemployment has reached record proportions in the last three years (up to 210 million since 2007).
These organizations have warned about potential problems for national economies if this trend continues.
Unemployment reduces national taxation income and increases public spending. The findings of the Regus Business Tracker provide important evidence that the world unemployment situation may be set to ease in 2011, it added.
The survey canvassed the opinions of over 10,000 senior business people in 78 countries asking them about their current revenue performance, their profitability, their projected future revenues and their wider expectations of national economic growth.
These indicators form the basis for the report’s Business Optimism Index, which unusually reflects actual performance as well as near-term outlook. Globally, this edition of the index revealed a far more positive outlook, with a greater proportion of optimist countries than six months ago.
For the UAE in particular, the global index revealed a rating of 95, down 3 points on the 98 point global average.
Mark Dixon, chief executive of workspace solutions provider Regus, said: "The intention to increase headcount is a clear indicator that businesses want to be prepared to grasp the opportunities that recovering markets may throw their way."
"In the UAE in particular the influx of expatriates had been blamed for an imbalance in the proportion of UAE nationals seeking employment. Their number is reported to have now peaked at 40,000, the highest number since the country was founded almost four decades ago in spite of the implementation of job nationalization measures."
"In spite of this optimism, our research also highlights that 41 per cent of companies are still looking to reduce their overheads, through other means than reducing staff. This reveals a global attitude of cautious optimism," Dixon explained.
"As companies look to find economies in their own operations, we are likely to see more and more organizations offering flexible working practices to their existing or prospective employees in a bid to achieve a better work-life balance and run a leaner organization," he added.-TradeArabia News Service