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29 March 2024

Why basic pay alone in UAE isn't enough to attract staff

Published
By Shuchita Kapur

Employees in UAE want more than just the basic pay structure and as hiring picks up in the country employers may give in to certain demands to make staff financially happier.

According to a survey by Towers Watson, a human resources consultancy, for most Middle East employees (includes the UAE), base pay is no longer the top attraction driver now and they want more.

For some though, pay is still the biggest factor.

Those surveyed reveal that better pay prospects, especially for employees with more experience, may be a determining to stay with a company or move on.

“While pay is not a key attraction driver for employees under 40 years of age; for those above 40, it is still the most important factor and the same is true for pay as a retention driver for all age groups,” the findings reveal.

Pay is less important to the youngest segment of employees in the Middle East, those under 30, who give greater value to career opportunities, learning opportunities and challenging work.

Middle East employees state career opportunities and job security as the most important considerations when looking for a new role, while globally base pay is the number one attraction driver, the survey adds further.

As living became costlier this year as compared to the previous few years, companies in the UAE have had to pay more to offset the financial burden on its employees.

Consultancy firms like Aon Hewitt have said in previous surveys that employers are now being generous with schooling allowance and house rent allowance. However, the heydays of hefty expat pay packages are still not the norm.

The Tower Watson survey also reveals that, as the job market becomes more competitive, employers are increasingly under pressure to retain their employees, especially their key talent.

The survey highlights the increased demand for talent in the region, giving more power to the employees to negotiate.

“Organisations in the Middle East are facing greater challenges than employers in the rest of the world in attracting and retaining critical skill and high potential employees, with around 70 per cent of employers saying they are experiencing such difficulties,” says the survey.