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29 March 2024

63% of UAE employees expect a raise in the next 12 months, says survey

Published
By Staff

Despite 44 per cent of employees having been unhappy with their last pay rise, more than half believe that salaries in the UAE are increasing, according to the latest survey released on Tuesday.

The survey was conducted by Bayt.com, a job website, and YouGov, a research and consulting organization.

A third of survey respondents (31 per cent) in the UAE have spent 4-6 years in their current industry, with a further third (32 per cent) having worked for their current employer for 4-7 years. Four out of ten have between one and five people reporting directly to them, with a collective 71 per cent stating that they are midway in terms of seniority (37 per cent), or at a fairly senior level, but not yet at the top (34 per cent).

Over the past five years, four out of ten respondents have held two jobs; 24 per cent have held one job, while the remainder have held three (20 per cent) or more (14 per cent). On average, most people will stay in a job for 2 to 3 years (39 per cent), or six or more years (22 per cent).

The preferred pay structure in the UAE is entirely fixed-pay according to 62 per cent, with popular incentives including those that are performance-based (59 per cent), and professional training and development courses (35 per cent).

The majority of salary packages (65 per cent) consist of basic salary plus benefits, and 57 per cent of respondents are currently moderately satisfied with their salary.

The most popular UAE salary benefits include personal medical insurance (49 per cent), personal air ticket (48 per cent), and bonuses (35 per cent).

Salary comparisons and expectations

Six out of ten respondents in the UAE state that their current compensation is lower than that offered by other companies in the same industry. Four in ten claim not to have received a raise in the last 12 months, while those who did receive a raise are predominantly unhappy with what they received; collectively, 44 per cent claim to have been 'unhappy' or 'very unhappy'. Two thirds of respondents (63 per cent) expect to receive a raise in the coming year, 25 per cent of which are looking at an additional 15 per cent or more.

Cost of living and savings

According to 85 per cent of survey respondents, the cost of living in the UAE has increased in the last 12 months (between December 2010 - December 2011), of these 43 per cent believe that it has increased by 15 per cent or more. Food and beverage is believed to have increased the most, according to four out of ten respondents, followed by rent (29 per cent). A majority 74 per cent believe that the cost of living will continue to rise in the coming year. On average, respondents claim that they received a 6.63 per cent raise in the past year - while stating that their cost of living increased by an average of 19.46 per cent.

Just over a third of respondents (37 per cent) are able to save more than 15 per cent of their monthly salary, though a further quarter have been unable to save anything at all. Four out of ten (37 per cent) manage to repatriate more than 15 per cent of their salary.

"The survey's results suggest that companies are still feeling the effects of the economic downturn, as they are generally not fully catering to the financial expectations of their employees or to their employees' perceptions of the rising cost of living across the region," said Suhail Masri, Vice President of Sales, Bayt.com.

Perception of salaries

More than half of survey respondents (a collaborative 51 per cent) believe that salaries in the UAE are increasing either 'marginally' (25 per cent of respondents) or 'moderately' (26 per cent of respondents). The most popular reason for this is perceived to be inflation and the rising cost of living (52 per cent), followed by the local growth in opportunities and economic growth (32 per cent). Respondents meanwhile blame the poor economy (34 per cent) and poor corporate performance and profitability (20 per cent) as being the top reasons for salaries not increasing.

Quality of life

When comparing themselves to other people of a similar generation within the UAE, 38 per cent of respondents believe that their quality of life is about average, while 29 per cent believe that they are somewhat better off. Around 32 per cent of professionals believe that there is an excess of talent in the UAE.

To improve their situation, six out of ten will look for a better job in the same industry, while a further third will look to a different industry altogether.

"The survey respondents believe that there is an increase, however small, in salaries is a positive sign for the future. However, the fact that they also consider there to be an excess of talent suggests that unemployment levels are currently relatively high, and that competition for existing jobs is fierce," said Sundip Chahal, CEO, YouGov.

Drivers of loyalty

Loyalty to employers is directly linked to salary package, according to 27 per cent of UAE respondents. However, a larger group of 34 per cent base their loyalty on opportunities for long-term career progression. Line managers, colleagues and working environment, company brand and reputation also factor highly.