Will UAE businesses raise wages by 4.4% in 2023 to retain talent and counter inflation costs?

In fact, according to the survey, four in 10 employers say they now have more pay budgets than they thought possible.

“Employers face difficult choices as they try to contain costs in a challenging economic environment – but at the same time try to keep their pay levels attractive,” said Laurent Leclere, Director of Incentive Data Intelligence at WTW UAE. “Inflationary pressures and a competitive labor market are forcing many to increase their compensation budgets so they can both retain and attract the best employees.

“Those organizations that are successful will have a clear rewards strategy and understand the needs of their employees.”

Businesses in the UAE slowed down in hiring new workers towards the end of last year, with the possible exception of cross-job tech professionals. Governments, semi-governments and banks are particularly busy adding to their tech teams — if they hadn’t already done so earlier in the year, according to hiring sources.

According to Leclerc, recruitment is also expanding to other areas. He said: “There are signs of optimism in business sentiment and hiring plans, especially for certain roles such as sales and engineering. While compensation is important, there are many other factors involved in engagement and success in the workplace, Employers need to deliver an engaging overall employee experience.”