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United Arab Emirates – Some 60% of businesses expanded their workforce and 17% increased wage bills in the last year, according to the latest figures.
Most UAE companies are expected to continue their hiring spree this year, experts say, as economic activity picks up momentum in line with the government’s policy of attracting globally skilled and talented professionals.
According to the latest data released by Bayzat, the UAE’s leading employee benefits platform, some 60% of businesses expanded their workforce last year, and wage bills increased by 17%.
The study, which covered 127,000 employees across more than 1,500 organizations in the UAE, revealed that technology-related roles will have the highest ratio of employees entering to leaving by 2022 at 2.45 times. It was followed by Human Resources (2.35x) and Marketing (2.02x).
Sales-related positions have the lowest proportion, with only 1.53 times more professionals entering than leaving. The research further suggests that hiring rates are expected to slow this year.
Bayzat CEO and co-founder Talal Bayaa said it was clear that government initiatives such as the introduction of new visa categories, changes to the work week and sweeping regulatory reforms had made the country a thriving ecosystem for businesses of all sizes.
“Having increased human capital during 2022, UAE organizations now need to focus on realizing the full potential of this investment,” Bayaa said.
“It is also important that, amid growing recession fears, businesses must ensure that they can retain their top performers and control operating costs. To do this, organizations must leverage, among other strategies, and productivity technologies,” he said.
“Bayzat itself has been a beneficiary of this, and just recently we closed a successful $25 million funding round, allowing us to aggressively invest in hiring top talent as we seek to expand across the GCC. Clearly, the UAE’s Other organizations are also adding human capital to take advantage of the unique opportunities this market presents,” he added.
Atik Munshi, managing partner of FinExpertiza UAE, said that the UAE and other GCC countries have witnessed considerable growth in business in 2022 and will continue this year.
“As business sentiment improved, there was also an upward trend in hiring at different levels. Some sectors such as real estate, technology, contracting saw growth, which in turn boosted hiring,” Munshi told harrij times Wednesday.
“Our own company’s headcount has increased by more than 15%. In addition to the increase in headcount, the overall cost of wages and benefits has also been pushed up given the rising cost of living due to rising rent, energy prices, etc.,” he said.
Another factor driving the expansion of the workforce is also instability in Ukraine and the rest of the world, which has sparked more migration of wealthy individuals to the UAE, he said.
“Europe is no longer a very attractive proposition for businesses. I think this favorable trend in the UAE will continue until 2023 as well. In the not-too-distant future, the Gulf region is poised to become the next Europe,” says Munshi .
Research shows that UAE organizations also demonstrate their focus on employee retention through efforts to elevate the employee experience.
With the pandemic looming on the horizon, insurance and employee benefits took center stage in 2020, and it’s one of the areas where companies are doubling down on bets. According to Bayzat, nearly half (47%) of organizations are increasing their insurance premium spending per member by 2022, an impressive average increase of 29%.
Unsurprisingly, along with the ambition, operational management expenses for UAE organizations have also increased significantly in the last year. In the first half of this year, Bayzat saw a 38% increase in fuel reimbursement expenses. This was one of the key factors driving the modest 13.6% increase in total expenses per employee for UAE organizations.
Vijay Valecha, chief investment officer at Century Financial, said the UAE’s job market is expected to remain strong in 2023, supported by solid regional and domestic confidence and an influx of new expatriates and foreign direct investment.
The UAE, led by Dubai, is primarily seen as a safe haven from conflict in other parts of the world amid somewhat volatile global market conditions, he said.
“The diversity of the UAE’s population means that new settlers or would-be expats do not hesitate to expand or establish new businesses here,” Valecha told harrij times Wednesday.
The job growth can also be attributed to effective and flexible government measures, he said. Major reforms such as golden visas, investor visas and incentives to set up companies have significantly improved the country’s overall economic and investment return potential, he said.
While the global economy faces major issues such as high inflation and rising interest rates in the UAE, overall price inflation here is relatively benign compared to its global peers. Some companies in the UAE are also offering hybrid working models where possible, he said.
“Most UAE tech startups, including those in new-age fields such as blockchain and artificial intelligence, are looking to expand their workforce. This is in stark contrast to US tech companies that have laid off more than 10 percent of their workforce,” he added, adding that the UAE The finance and technology industries will lead the overall hiring situation.
“Another key aspect to note here is that, in anticipation of high labor turnover, most employers will also consider retaining their critical skills base. Even as global recession fears intensify, UAE companies are likely to act more aggressively. risk-calculating approach and seek to hire the best talent globally,” he said.
Copyright © 2022 Khaleej Times. all rights reserved. Courtesy of SyndiGate Media Inc. (Syndicate Information).
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