Tuesday 23 July 2024

Suhail Masri

Majority of UAE professionals ‘expect a raise in 2018’

DUBAI, June 11, 2018

More than half (56 per cent) of the professionals in the UAE expect to receive a raise in 2018, with 27 per cent expecting a raise of up to10 per cent, said a new survey, administered by Bayt.com, a job site, and online market research firm YouGov.

Meanwhile, two thirds of respondents in the UAE (66 per cent) believe salaries are either increasing or staying the same, added the survey titled ‘Middle East and North Africa Salary Survey’.

Salaries, benefits, and raises

In terms of salary, 60 per cent of UAE respondents claim that their current salary package consists of basic salary with benefits, while around a quarter (23 per cent) claim that it consists of basic salary only. 17 per cent said they receive a basic salary as well as a commission and benefits. One in two (52 per cent) respondents who receive a salary package along with other benefits and/or commission claim that their basic salary consists of up to half of the whole proportion of the package.

When it came to the preferred pay structure, 66 per cent of UAE respondents said they prefer a ‘100 per cent fixed pay structure’, 27 per cent said they prefer a ‘partially fixed pay structure with a variable pay for commissions and incentives, while 7 per cent prefer a ‘100 per cent variable pay structure.

Among the various benefits employees in the UAE receive, personal medical insurance (53 per cent), personal annual air ticket (45 per cent), gratuity (32 per cent), transportation allowance (31 per cent), bonus (28 per cent), and housing allowance (27 per cent) emerge as the most common benefits. As for end of service benefits, more than three quarters (76 per cent) of respondents say their company presently offers end-of-service gratuity, 7 per cent receive pension on retirement, and 6 per cent receive other forms of benefits.

Looking back at last year, almost one in two respondents (45 per cent) received a salary raise in 2017.Nonetheless, over half (56 per cent) of respondents from the UAE expect to receive a raise in 2018, with the largest proportion of these respondents (15 per cent) expecting a raise of 1 to 5 per cent.

Among respondents who believe salaries are increasing in the UAE close to a third (32 per cent) attribute it to inflation and a rise in the cost of living, another (31 per cent) believe salaries are increasing as a result of good corporate performance and increased profitability, 25 per cent believe it is due to growth in opportunities and economic growth in their country of residence, and 24 per cent say it is caused by intense competition for attracting and retaining talent.

Finances and expenses

More than three quarters (77 per cent) of respondents believe their cost of living increased by up to 30 per cent in 2017, 13 per cent believe it has increased by more than 30 per cent, while fewer than one in 10 (5 per cent) believe it decreased or remained the same. When asked about the components of living which increased in cost in 2017, food and beverage (80 per cent) and utilities (67 per cent) emerged as the top two by a large margin. A majority (72 per cent) anticipate a further increase in the cost of living in 2018.

In terms of monthly expenses, UAE respondents said they spend the most on rent (55 per cent) food and dining out (13 per cent), and education, schooling, and books for their children (10 per cent).

That said, 65 per cent of respondents in the UAE still manage to save a portion of their monthly income, over half (56 per cent) of UAE respondents repatriate some portion of their salary to their home country, and 21 per cent make regular financial investments.

In terms of quality of life, one in two (55 per cent) respondents from the UAE believe they are better off than other people of a similar generation in their country of residence, another one in five (21 per cent) believe they are about the same, and only 16 per cent believe they are worse off.

When asked about their career plans in the next twelve months, 58 per cent of UAE respondents said they will look for a better job in the same industry, and two in five (41 per cent) said they plan to look for a better job in a different industry.

“Surveys like this help uncover extremely valuable insights for employers and employees alike. It’s no surprise that as the cost of living increases in the Mena region, so do salaries and raise expectations, said Suhail Masri, VP of Employer Solutions, Bayt.com.

“At Bayt.com, we strive to pair job seekers with the employers that best suit their needs and preferences, and vice versa. We have more than 10,000 jobs available on Bayt.com on any given day, and with the knowledge gained from this survey and others like it, we are able to help facilitate the best matches between candidates and recruiters while making the process of finding jobs and filling vacancies smoother, less time consuming, and more rewarding all around.”

Respondent profile

Among those surveyed, just over half (52 per cent) of all UAE respondents have been working in their current industry for up to six years, with another quarter (26 per cent) having worked in their industry for more than 10 years. When it came to specific employers, a vast majority (84 per cent) of respondents have been working with their current employer for six years or less, with 46 per cent having worked for their employer for less than three years.

In their current role, 39 per cent of UAE professionals claim to be ‘midway in terms of seniority’ when asked about the level they have reached in their career path, with another third (29 per cent) claiming they are ‘fairly senior level but not yet at the top’, 20 per cent report being in the ‘early days of their career’, and 12 per cent being at the ‘most senior level’ they can achieve.

Just over half (52 per cent) of UAE respondents have up to 10 people reporting to them both directly and indirectly, while just under a quarter (23 per cent) have 11 or more people reporting to them.

“Salaries is repeatedly one of the most important research topics for the Mena region, “said Nihal Jibouri, head of Custom Research (Mena), YouGov. “With the information we cover from this survey, we are able to gauge employee’s current income structure and levels, satisfaction with their salaries, perception towards their cost of living and expense allocation. This provides many insights to employers and key decision makers on many elements relating to the job market, the economy, and the quality of life.” – TradeArabia News Service

Tags: Bayt.com | Survey | Employees | YouGov | UAE salary |

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