UAE jobs: Employers say plan to raise wages by up to 5% – News

Businesses aim to attract and retain tech talent by boosting wages

UAE companies plan to offer employees higher-than-usual annual salary increases due to a tight labor market and competition for talent from countries in the region.

Andrew El Zein, senior associate advisor at Mercer, said the growth in the company’s workforce outpaced employers’ plans for 2022, indicating that the UAE economy is doing well.

“The labor market is tight and employers must do more than ever to attract and retain their talent, not only in the country, but from the region,” El Zein said.

The UAE’s economy expanded by 8.2 percent in the first quarter of this year, the fastest pace in 11 years, boosting the private sector and creating more jobs in various sectors.

Companies are feeling the pressure to adjust pay packages due to rising inflation in the UAE, according to a survey recently released by Mercer. It said about 67% of businesses received requests from employees for compensation and allowances to offset rising inflation in the UAE.

“Organizations are planning to achieve higher-than-usual annual performance gains in 2023,” El Zein said, adding that companies have budgeted 5% annual salary increases for next year, up from the 3% to 4% observed in recent years. % .

Inflation has soared in the UAE and globally due to soaring fuel prices and commodity prices following the Ukraine-Russia military crisis.

Human resources and recruitment consultants say the golden visa and other labour contract initiatives by the government will further strengthen employer-employee relationships and cement the UAE’s position as the “employer of choice”.

Mindfield Resources managing partner Anjali Samuel said all the recent changes, including changes to the types of visas available to people and the rules of employment contracts, will have a positive impact on the local job market, making it more attractive and competitive.

“The flexibility this provides for both employees and employers will further strengthen the UAE’s position as an ’employer of choice’. Recent changes are seeking to strike a balance between employees and employers, which I think will facilitate the recruitment of ‘tech talent’”, Samuel Er said.

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-waheedabbas@khaleejtimes.com