Salaries in the UAE have increased by 2 percent year-on-year; however, employees are still looking to change their jobs. A report by Robert Half revealed that 69 percent of employees are likely to look for new jobs next year.
“The rising cost of living is the dominating driving factor for 46 percent of employees” the report stated. Other factors affecting the UAE job market include increasing property prices and relentless food inflation.
Overview of sectors
Salaries in professional services have grown by 2 percent on average every year. Meanwhile, finance and accounting wages increased by 1.6 percent and salaries in financial services increased by 1.2 percent. Furthermore, IT and technology wages witnessed a 1.2 percent increase on average.
On the other hand, human resources (HR) and business support salaries increased by 4.4 percent. Meanwhile, legal salaries witnessed the least growth with an increase of 0.7 percent only.
The Robert Half Salary Guide, launched on Wednesday, highlighted the relatively high uplift in the HR sector. That is due to the appetite for businesses to both attract and retain the best talent.
Evolving job landscape
The recruitment consultant said that 69 percent of employees are likely to change jobs by the end of the first half of 2024. Financial challenges due to inflation and the high cost of living are prompting employees to make that change.
The agency stated that 41 percent of employees had received a pay increase in the past 12 months. Meanwhile, 46 percent had seen no change. Notably, 30 percent said that they have not received any bonuses in the past 12 months.
Gareth El Mettouri, associate director, Middle East at Robert Half, emphasized the increasing demand from expats wanting to move to the city. “With an influx of talent flooding the region and more competition for roles, candidates are willing to accept lower packages” he stated. He added that this “brings down the overall market rate and restricts salary growth at a time of high inflation and rising costs.”
El Mettouri stated that global and regional instability pushes companies to put their hiring plans on hold until next year. That is with the hope of gaining clarity on what the future holds for the global economy.
Read: Unveiling employee preferences: The significance of Working from Anywhere mode
Further insights
The report also revealed that employees who have been in their roles for three to five years are more likely to leave their jobs. Moreover, those aged between 25-34 are the group who are most likely to make the change. Meanwhile, 27 percent of those under 24 are looking to change jobs within the first three months of 2024.
The report revealed that the cost of living, increasing school fees and healthcare are the employees’ most important driving factors.
However, 45 percent described themselves as ‘very satisfied’ with their current roles. That is likely due to the mass movement in the job market over the past two years. Some employees could also believe that they may not be able to secure the same benefits elsewhere.
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