Main Overview Recruitment Trends and Challenges Pay Rises Across the Region The UAE has demonstrated positive salary trends in The Gulf Cooperation Council (GCC) has been 2023, with more than half (56%) of employees experiencing significant changes in its business reporting a salary increase. However, it’s noteworthy landscape, and companies are adapting to new trends that a similar percentage (55%) received an increase of and challenges in recruitment. With over half of less than 5%, indicating that while salary hikes are organisations (53%) planning to expand to new prevalent, they are not uniformly substantial. Saudi locations, the demand for skilled talent is at an all-time Arabia has also witnessed favourable salary trends, high. In line with this growth, 42% of organisations with 57% of employees reporting an increase. reported an increase in employee salaries this year, Encouragingly, less than half (48%) received an reflecting a recognition of the importance of retaining increase of less than 5%. Even with this number, it can and motivating existing talent in a competitive job suggest that compensation benefits are improving in market. Looking ahead, 91% of companies are planning Saudi Arabia. incremental salary raises, with 73% of organisations offering an increase of less than 5%. Saudi employees exhibit a higher degree of optimism regarding future salary increases. A significant 53% In this region, employers continue to place the highest anticipate a salary increase before the year’s end. In emphasis on revenue growth as their foremost contrast, the UAE follows, with 39% of employees objective. This is followed by priorities such as market expecting an increase. expansion and establishing an international presence, fostering customer satisfaction and loyalty, achieving Salary increases in the GCC are predominantly operational efficiency and optimising costs, innovation influenced by two significant factors: performance and lastly, employee development and engagement. A and job changes. Approximately 33% of salary significant portion of these organisations cited that increments are attributed to employee performance. current economic conditions may limit or prevent Moreover, a substantial 25% of employees reported them from achieving these objectives. This paradox receiving higher salaries due to job transitions, highlights the resilience and adaptability of companies confirming a dynamic job market where opportunities in the face of external challenges. Our survey also for advancement and career growth are prevalent. reveals that 68% of organisations feel confident in possessing the necessary skills to achieve their goals, The GCC job market has exhibited resilience in the face with many of them embracing mentoring methods to of the global pandemic. There has been a notable enhance their workforce’s capabilities further. uptick in employment opportunities, signifying a robust recovery. This resurgence underlines the GCC’s In terms of headcount, companies in the Middle East ability to adapt and rebound in the face of economic reported that 70% of them have expanded their challenges. headcount this year in comparison to the previous year. This trend is set to continue, with 68% expressing their intention to further increase their workforce in 2024. Interestingly, 53% of organisations are planning to hire both permanent employees and contractors, with a notable emphasis on permanent recruitment. It is worth noting that a significant 73% of respondents currently engage or have engaged with contractors. This highlights the continued relevance of contract workers in the Middle East job market, attributed mainly to the prevalence of project-based work that demands specialised skills for specific durations. Furthermore, in alignment with Saudization and Emiratisation policies, companies are actively recruiting Saudi and UAE nationals. Specifically, 17% of companies have onboarded Saudi nationals, 37% have welcomed UAE nationals, and 30% have employed individuals from both nationalities. | Halian GCC Market Report and Salary Guide 2024