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Tuesday, July 23, 2024

Job Outlook in the UAE: 80% of Companies Planning to Expand Workforce in the Coming Two Years

Companies Planning the “HR Evolution Perspectives 2023” report by Darwinbox reveals that C-level executives (CXOs) in the UAE are highly confident about their organizations. A significant 80% of these CXOs anticipate an increase in headcount over the next two years. These executives are also overwhelmingly optimistic about revenue and profit.

Focus on Productivity and Skills

The study suggests that while there’s a focus on increasing productivity CXOs are also keen to hire for critical capabilities and emerging skills. Notably, 89% of UAE CXOs expect profitability to rise, and 89% anticipate revenue growth. Furthermore, 72% foresee this growth occurring through mergers and acquisitions, while 82% expect it through organic expansion. Sustainability is also gaining traction, with 67% of CXOs anticipating an increase in ESG (Environmental, Social, and Governance) investments.

Economic Expansion: Companies Planning

The UAE’s economy is set to expand by three percent this year and four percent in 2024, primarily driven by the strong performance of the non-oil sector. This growth is influenced by factors like the increasing influx of tourists, government initiatives, and technological advancements, which are expected to play pivotal roles.

Strengthening HR Functions: Companies Planning

As the UAE’s economy continues to grow, there will be a need for a stronger talent pool and more robust digital solutions to support HR functions in enterprises.

Embracing Transformation Through Technology: Companies Planning

Chaitanya Peddi, co-founder of Darwinbox, acknowledges the positive economic outlook among UAE CXOs, indicating increased hiring in the coming 12-24 months. This, in turn, will necessitate a stronger focus on strengthening HR functions. HR teams will need to navigate heightened employee expectations, a rapidly shifting digital landscape, and stakeholder pressure for more inclusive workplaces. Darwinbox emphasizes the transformative role of technology in addressing these challenges and calls upon HR professionals to seize the opportunity to transform their organizations.

Challenges and Responses: Companies Planning

Despite opportunities, UAE businesses face challenges such as the rapidly shifting digital landscape, remote and hybrid work models, and demands for more inclusive and sustainable practices. Alignment of corporate culture and low employee productivity pose significant risks, with 38% of CXOs unable to adapt their culture to changing business environments. While 69% recognize the importance of adapting to new digital work paradigms, 31% feel unprepared to address this challenge.

In response, organizations are increasing investments in technology to enhance HR effectiveness. Sixty-four percent of UAE organizations plan to adopt robotics and automation for HR, while 64% plan to invest in digitizing their HR systems, and 53% plan end-to-end process redesign.

Prioritizing Digital HR Agenda

Organizations worldwide, including the UAE, are increasingly prioritizing the digital HR agenda to enhance productivity, agility, and employee experience. Collaborative efforts with technology providers like Darwinbox are vital to empowering organizations to stay ahead of the curve in this evolving landscape.

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