Pay hikes ‘not in line with cost of living’
Dubai, July 31, 2011
Sixty-two per cent of the employees in the UAE feel that their current remuneration is not in line with the cost of living, according to a recent survey.
However, 49 per cent believe that their financial position will improve in a year’s time, which is a reflection of sentiment from across the Middle East region, said the quarterly Mena Consumer Confidence Index survey conducted jointly by Bayt.com, the region’s leading job site and consulting organisation YouGov.
In correlation with this, 51 per cent of respondents expect that the UAE’s economy will take a turn for the better within the same time period, with a majority also believing that this will bring around better business conditions.
Though, according to some, this won’t necessarily mean an increase in the number of jobs, as 51 per cent of respondents think there will be either no change or fewer jobs than at present, and only 34 per cent of respondents hold the opinion that there will be more jobs available.
Going hand-in-hand with the above survey statistic, are the neutral sentiments expressed by a majority of the respondents (38 per cent) towards the likelihood of increase in their organisation’s employee-count in the coming quarter.
Only a quarter of respondents (25 per cent) think there will be a positive growth, though this is almost equalled by 23 per cent sharing a pessimistic outlook on the same.
The percentages are very similar in terms of their company meeting staffing requirements in the coming three months – the majority are neutral (a trend that is echoed across the region), with 20 per cent optimistic and 26 per cent pessimistic.
“The overall feeling is that while the coming year will be favourable for business and corporations, this may not necessarily reflect on employees’ benefits,” explained Amer Zureikat, VP Sales at Bayt.com.
“At Bayt.com, we work towards creating a solid platform of statistics and a valuable insight to share with employees and employers alike. As the number one job site in the Middle East, we provide reliable date from a significant cross-section of the region’s population.”
With regards the respondents’ present situation, the general feeling across the region is that the financial situation for them and their family is no different than it was within the previous year.
In the UAE, only 25 per cent have had an improved financial position in comparison to the previous year, while 38 per cent have experienced no change, and the financial situation is worse for 30 per cent of survey-takers.
The overwhelming majority state that in comparison to last year, their salary has not kept pace with the cost of living in the UAE.
This reflects on the current attitude towards purchasing of consumer durable goods, with only 17 per cent of UAE respondents feeling that this is a positive time to buy. The majority, at 47 per cent, believe that this is a neutral time to make large purchase, with most opting to shy away from investments in property and purchasing new cars in the next 12 months.
Among those who are looking to purchase vehicles, 49 per cent say they will invest in a new car, while 45 per cent will choose a used car. As far is property is concerned, 58 per cent of would-be investors will look to invest in new properties.
In terms of UAE respondents’ employment, only a small percentage (13 per cent) appear to be satisfied with their current job and career prospects.
Almost half have neutral sentiments towards their current employment situation, and 36 per cent are displeased, with a collective 76 per cent selecting neutral (37 per cent) or low (39 per cent) satisfaction with the possibility for career growth in their current organisation.
Survey statistics show that feelings towards the level of job security in the UAE are relatively balanced; most respondents (38 per cent) have a neutral opinion of their job security, 30 per cent are unsatisfied and 26 per cent are highly satisfied.
“Our survey demonstrates that the majority of employees in the UAE are indifferent or less to their current career status, which shows that there is definite room for improvement. The general sentiment is that an increase in salary could be due, in correlation with inflated costs of living,” concluded Zureikat. – TradeArabia News Service