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29 March 2024

Finally, it’s time to ask for a salary hike in UAE

Preference for female boss is high in media and entertainment industry. (Shutterstock)

Published
By Shuchita Kapur

If you’ve been fretting about stagnant salaries over the years, the wait may finally be over. Recruitment experts in the country predict nominal pay hikes for employees and signal a trend where bosses are in the mood to come to the negotiating table and give increments to their staff.

According to recruitment experts at Robert Half UAE, employees in the UAE should expect a 6 per cent pay increase in the next 12 months as the demand for talent is on the rise.

The findings are based on the survey it carried out and on an average HR directors who responded predict salaries for existing employees are likely to increase by 6.17 per cent in the next 12 months, with 43 per cent of companies anticipating an average wage increase of over 5 per cent. 

“The UAE is entering a heated jobs market where skilled professionals can negotiate salaries and companies are increasingly willing to enter into salary negotiations to secure skilled professionals,” says the survey carried out by the recruitment firm.

The findings reveal 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.

Most HR directors who took part in the survey say a return of salary inflation is now a given for both existing employees and when seeking to recruit new candidates. 

“Two in five (40 per cent) HR directors say they are operating in a job market where salaries are increasing with no HR directors surveyed reporting a deflationary wage environment.”

The demand for talent in the UAE is on the rise and a big percentage of employers in the country are struggling to find the right talent to fill up vacant roles, directly impacting salaries.

The latest figures released by Monster.com, an online recruitment solutions provider, reveal many companies in the UAE are struggling to fill roles, especially the niche ones.

Likewise, Morgan McKinley, another recruitment firm reveals that UAE employers are still struggling to find candidates with the requisite skills and experience in some key areas.

This can be attributed to impressive growth in neighbouring countries – Qatar, Saudi Arabia and Oman, for example – which is enticing jobseekers from Dubai, the recruiter believes. A growing level of confidence is also seeing many candidates seek new positions to further their career prospects, leading to employers scrambling for talent.

“The tables have turned in the job market and top performing candidates are now in a position to negotiate and command higher salaries,” says Gareth El Mettouri, Associate Director of Robert Half.

“Companies need to be aware that the best candidates are actively job-seeking, and that there is an increase in counter offers in the UAE. We are witnessing an increasingly inflationary wage environment locally and internationally in the US and UK markets to secure skilled professionals.

Companies will need to pay higher salaries to attract top talent and offering localised benefits such as housing allowances as well as increasing salaries for current staff in a bid to retain them,” he adds.

(Image via Shutterstock)