Dubai – Mubasher: Salaries in the UAE are expected to grow by 4.8% across all industries in 2019, while the non-energy industries are to see the strongest increase, according to the annual Total Remuneration Survey conducted by Mercer.
The global consulting leader in advancing health, wealth and career noted that the GCC nation’s salaries across all sectors increased by 4.5% this year, with the highest rise come for those employed in the life sciences industries (5%).
Other sectors forecast to see robust hike include consumer goods and high-tech industries, with real wage growth is also projected to steadily advance in the region, according to the survey.
The energy sector, previously witnessed the highest paying has now seen a downward shift, with expectations to perform below the market, with a projected growth of 4%, it’s the highest increase rate seen since 2015 for the industry, it found.
“The GCC is a market that is continuously progressing and thriving. With the UAE’s vision of diversifying away from oil, we’re seeing new trends in industries with regards to employee compensation, hiring and talent,” said Ted Raffoul, Career Products Leader, MENA at Mercer.
“Sectors such as the High Tech and Life Sciences industries have evolved due to the growing population and the need for digital transformation across the entire market, which is generating more employment opportunities and salary increases,” he added.
Hiring is on the rise
Mercer also said that the UAE’s overall hiring outlook is positive with around 50% of firms looking to boost their headcount and 45% looking to maintain headcount.
In the same vein, the survey said that 3% of companies operating in the Arab country have stated salary freezes in 2018 compared to 10% in 2016.
Talent trends in the GCC
The survey highlighted that 78% of organisations forecast an increase in competition for talent in the GCC, while 47% of them noted that there aren’t enough experts in niche fields, and that scarcity of required talent may pose a potential challenge.
For his part, Maxime Jallageas, associate at Mercer, said that “53% of respondents placed labour nationalisation requirements as a top GCC economic and social issue that is likely to have an impact on organizations over the next two years.”
He added that it will have a direct impact on “the hiring trends firms will adopt, particularly on the reward mechanisms that are put in place to attract local talent. Packages offered and opportunities for advancement will need to compete with those offered in the public sector.”
