No pay hike yet? Don't expect one either this year!

This is perhaps not the right time to go to your boss and ask for a pay-hike for 2012. Experts believe it will not be a fruitful exercise if employees approach their bosses for an increment now as most companies have already finalised their budgets.

“At the moment, though, I think now it is a bit late, as most companies have finalised their budgets, so plans for salary increases have already been made,” Konstantina Sakellariou, Partner, Marketing & Operations Director at Stanton Chase told 'Emirates24|7'.

Employees often refrain from asking at the right time fearing that such a move could backfire in the current environment as companies in the UAE are still considering their headcount seriously. Experts, however, believe that there is no perfect timing to ask for a hike. They believe that one should look at the market conditions and assess the circumstances before asking for an increase.

According to recruitment experts, there is no one rule that applies to all and depends on an individual’s circumstances and the financial state of the company she/he may be working for.“If the desired answer is yes, I believe the response should be based on; has the business made money in 2011? Have I contributed to this success/increased revenues? Do I/we believe we’ll cover our costs in 2012?” said Peter Greaves, Executive Vice President, DHR International.

“Employees should request pay rises based on merit, rather than industry conditions. If you have evidence to support the fact that you have achieved or exceeded your targets; or been value-added in other ways - then irrespective of market conditions, it is warranted. That said, you should not be oblivious to constraints your firm could be facing, and perhaps should approach the matter diplomatically,” added Hasnain Qazi, Middle East Business Manager at Huxley Associates.

“Asking for a pay rise is not necessarily connected to the period, but to the arguments the employee will use for his/her request.  Thus, if he/she can support the request adequately, one can always ask for a raise. Anyway, a request does not indicate that, if not granted, the person should be fired. All decisions for the management of a company are connected to the productivity and the added value each person brings to the company and to its strategic vision.  As long as these are aligned, negotiations on the remuneration are normal and justifiable,” said Sakellariou.

On the contrary, there are some in the industry who believe that this is the right time to approach the boss for a hike. "With fresh wage budgets agreed in many companies across the UAE, if there is a good time to ask for a raise it is now,” Toby Simpson, Managing Director, The Gulf Recruitment Group told this website.

“Pay hikes have been very limited in the past few years but I know of some employees in my company who have asked for an increase this year and can expect it,” said the HR head of a construction company in the UAE on the condition of anonymity.

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