It may not be a bad time to ask your boss for a salary hike, especially if you are closer to the appraisal time.
According to reports from recruitment experts, more employees in the country are being made counteroffers by their employers in a bid to retain them.
New survey by recruiter Robert Half reveals that one-third (33 per cent) of UAE finance leaders have increased counteroffers in a bid to retain their key employees.
And, if you are in Abu Dhabi, your chances of getting counteroffers are more than those working in Dubai.
Respondents who took part in the survey from the capital have seen a higher volume of counteroffers than their Dubai counterparts (38 per cent versus 29 per cent, respectively), suggesting that companies are concerned about losing top talent and are increasing employee remuneration in response.
To make offers even more attractive to new employees, companies are offering a sign-on bonus to get top talent.
Of the 100 UAE finance leaders who participated in the study, one-third (33 per cent) are much more likely to offer a sign-on bonus to attract top candidates than they were previously. “This strategy emphasises the struggle companies face to win the war for talent and secure the professionals they need,” it reads.
Counteroffers mean more money for the candidates but it may have some adverse some impact too.
“While it is tempting for jobseekers to use counteroffers as a negotiating tool, they are not an effective strategy for businesses to retain staff in the long term,” says Gareth El Mettouri, Associate Director of Robert Half.
“When asked how the trust between employee and employer was affected, nearly three quarters (72 per cent) of UAE finance leaders said it has negatively impacted their trust in the employee,” he elaborates.
“In order to retain top talent, companies must ensure they are offering remuneration that is competitive within their industry and profession,” he adds.
A previous survey, SEI Employment Trends and Managing End of Service Benefits in the Middle East, stated that the UAE’s burgeoning growth shows no signs of abating, with 86 per cent of respondents expecting to grow their headcount, and competition for talent and compensation look set to escalate accordingly.
The SEI survey shows that 45 per cent of respondents from the UAE or with a presence here expect their businesses to grow by at least 20 per cent as a result of just Expo 2020.