Cashing in on biggest fear of UAE employers

When the economy heads towards a growth cycle, the battle for talent is a natural outcome.

In the UAE, as we inch closer to the big event of Expo 2020, employers are busy looking at the business opportunities that are arising to the run up and adjusting/expanding their staff requirements accordingly.

With the expected number of new jobs to be created, the scramble for talent, especially in niche areas, has already begun and is set to intensify further.

According to a new Middle East talent survey by the Association of Executive Search Consultants (AESC), an executive search company, availability of top calibre talent will have a significant impact on future business success in the region and this is the biggest business worry of executives.

Respondents who took part in the survey were asked to rank the impact of a variety of issues on future business performance on a scale of 1 to 4 (with four having the greatest impact). The highest ranked issue affecting future business success related to finding the right talent with a score of 3.86.

“It’s no wonder that talent ranks top of the list,” said Patrick Rooney, Managing Director for the AESC in the Middle East. Regional “businesses need high-calibre talent to facilitate success in an increasingly complex regional and global business environment,” he said. 

The latest salary guide from recruitment firm Robert Half emphasises that as the international economy improves and the UAE markets prepare for growth, it is becoming hugely important for companies in the region to prioritise attracting skilled professionals with a comprehensive recruitment strategy.

“Competition for the best candidates is a heated race and will continue to rise alongside business confidence. UAE companies are not only looking for candidates with proven skills but also those with the right cultural fit who can work with the rest of the team to build the business successfully. To attract and secure those candidates in a tighter skills market, companies need to offer attractive and competitive remuneration and benefits packages,” it reads.

And yes, in the midst of this increased demand, employees can expect to negotiate with the boss.

Another survey by Robert Half released in the first half of this year indicated that skilled professionals can negotiate salaries and companies are increasingly willing to lend an ear and sign a bigger paycheque.

This survey showed that over half (56 per cent) of HR directors are more willing to negotiate salary rates with top candidates than a year ago, signalling to applicants that they are now in a strong position to push for higher salaries and benefits packages.

But not all are set for a double-digit pay hike in the coming year. It’s the star performers and ones with hard-to-find skillset who can rejoice. If you assess yourself as an average employee, who has just met the key performance indicators, it may still be pre-mature to put forward demands that may be hard to meet in the current scenario.

Nominal pay hikes are what await the majority of employees in the country. A study by Towers Watson, a professional services company, states that average pay rises for employees in the UAE and the region will be a nominal 4.7 to 6 per cent in 2016.

Aon Hewitt, a human resources consultancy, too sees marginal hikes with UAE firms projected to give a 5 per cent increase in pay in 2016, up from the 4.8 per cent projection made for 2015. In terms of actual increases for 2015, the UAE recorded a 4.8 per cent increase.

But it isn’t salary alone that motivates UAE employees. A poll by Monster, an online jobs portal, puts career advancement opportunities and job security ahead of money for employees in the country.

So employers need to work on talent management instead of just sticking to pay hikes. As per experts at the London Business School, “employers need to create a long-term culture, focusing on professionals looking to establish their careers here rather than expatriates who stop by in the Gulf to avail themselves of tax benefits,” which includes “appropriate compensation but also career advancement, professional development opportunities and a chance to be part of a rewarding journey or experience. Firms will retain talent most effectively by taking a holistic approach to talent management which addresses all these factors.”

(Image via Shutterstock)

Follow Emirates 24|7 on Google News.