What Will Your Salary Be in the UAE, According to Recruitment Experts?|Drjobs.ae


According to recruitment experts, the jobs market in the UAE will continue to recover in 2022 as business confidence and hiring activity return to pre-coronavirus levels.

Salaries are also expected to rise by an average of 3 percent to 5 percent depending on the sector, while bonuses will make a comeback this year.

Since the Covid-19 pandemic began in March 2020, the UAE has spent billions of dirhams in economic stimulus measures to support businesses.

Business activity in the UAE's non-oil private sector improved to its most substantial level in about two and a half years in November, boosted by Expo 2020 Dubai, tourism, and increased spending amid the economic recovery.

The UAE's IHS Markit Purchasing Managers' Index climbed to 55.9 in November, from 55.7 in October, the highest reading since June 2019. A reading above 50 indicates economic expansion, while anything below points to a contraction.

Employment levels also remained steady during the survey period, and "further rises in demand and backlogs could support an increase in employment sooner rather than later," IHS Markit economist David Owen said at the time.

With hiring on the increase, what is the salary and employment outlook for job seekers this year? Read on to find out.

Pay levels are expected to increase across Dubai, Abu Dhabi, and other emirates

Pay levels are expected to increase across Dubai, Abu Dhabi, and other emirates
About 73 percent of UAE employers expect salaries in their organizations to increase by up to 5 percent this year, compared with 37 percent in 2021, according to the Hays 2022 Salary Guide, which will be released at the end of January.

The trend in previous years has shown that most company-wide pay increases represent a rise of less than 5 percent, but this is unlikely to be sufficient to retain candidates looking for a job change in 2022 based on salary, Ms. Dixon says.

However, the "sentiment is very positive in the UAE and surrounding Gulf region," she notes.

"We have seen business confidence and hiring activity increase back to pre-pandemic levels and beyond, with much optimism as we go into 2022."

In November, a report by Mercer found that employers in the UAE will go on a hiring spree in 2022 and raise salaries by an average of 3.6 percent as demand for jobs picks up amid the UAE's post-coronavirus economic recovery.

"Signs of growth abound and are evident in the increased hiring activity that we have seen in 2021 and the positive forecast for 2022," Andrew El-Zein, a career department associate for the Mena region at Mercer, said at the time.

"Employers are prioritizing hires for in-demand skill sets that will support future business growth. However, the talent pool is still developing, causing somewhat of a talent war."

Meanwhile, the Cooper Fitch UAE Salary Guide 2022, published last month and polled more than 600 companies in the country, found that 35 percent of businesses plan to increase salaries by up to 5 percent.

It also found that 4 percent of companies will offer employees a raise of between 6 percent to 9 percent, while 5 percent will boost wages by 10 percent or more.

Will bonuses return in 2022?

Will bonuses return in 2022
Of the business leaders surveyed by Cooper Fitch for its salary guide, 74 percent of companies in the UAE plan to offer bonus schemes in 2022, with 46 percent saying they would pay one to two months' gross salary and 21 percent saying they would reward employees with three to five months' gross salary.

However, not all sectors will be offering bonuses to employees this year, Trefor Murphy, chief executive of Cooper Fitch, says.

"For bonus payouts, all sectors except real estate and the public sector said they will be paying bonuses in 2022."

What benefits will jobseekers be offered in 2022?

What benefits will jobseekers be offered in 2022
Companies must offer a competitive benefits package to attract the best talent, according to the Robert Half 2022 salary guide.

"Candidates' expectations have changed since the pandemic, and they are expecting more beyond salaries and bonuses," the report says.

"Employers are adjusting benefits and perks to attract and retain the new 'anywhere' workforce. Efforts to bolster workplace culture and avoid digital burnout [will] see companies introduce mental health hotlines and remote working initiatives."

Some of the most common benefits UAE employers offer jobseekers include flexible and remote working, airline tickets, education allowance, and family visas.

However, since the outbreak of Covid-19, job candidates are increasingly requesting to work from home at least two days a week, as well as asking for flexible hours and training opportunities, the Robert Half report says.

"Businesses are adding to their benefits to retain and attract staff," Gareth El Mettouri, Robert Half's associate director of the Middle East, says in the salary report.

"Many local businesses are keen to get back to the office, but with candidates demanding flexible working, they may lose out on the best talent to multinationals."

For bonus payouts, all sectors except real estate and the public said they would be paying bonuses in 2022.

However, child education allowances are a significant "pull factor" for professionals in the UAE when considering a new role, Ms. Dixon of Hays Middle East says.

"With so many expats uprooting a family and relocating to the region from home countries for jobs, child education fees represent a significant proportion of their incomes, and candidates will favor an employer that offers to cover these," she says.

"This is a challenge to organizations as school fees are relatively expensive in the UAE, and from our experiences, child education allowances are generally only offered to senior-level candidates. They also vary by how they are offered – some employers provide an annual lump sum, while others cover up to two children, or are capped at a certain level of spend."

What will be the most resilient sectors in 2022?

What will be the most resilient sectors in 2022
This year's most resilient sectors will include technology, human resources, health care, and life sciences. At the same time, there will be accelerated demand for skilled workers in digital and data and project management, recruitment specialist Michael Page says in its UAE Salary Guide & Hiring Insights 2022 report.

Meanwhile, there is still strong demand for talent in some of the "usual sectors" such as consulting, advisory, and recruitment, Mr. Murphy of Cooper Fitch says.

"There is also a large base of activity around digital, technology, and artificial intelligence, with an overall recovery in all UAE markets recovering to pre-Covid-19 levels," he says.

"In terms of headcount and salaries in the UAE for 2022 based on our data, the sectors most likely to increase these are advisory, real estate, sales and marketing, technology and strategy."

Challenges companies face when hiring in 2022

Challenges companies face when hiring in 2022
The Covid-19 pandemic has been a catalyst for long-term change in the workplace, with many companies now allowing employees to either work from home full-time or for one to three days a week.

However, maintaining employee motivation and engagement and integrating new hires remotely are employers' main challenges in 2022.

Many companies have also had to invest significant amounts of their budgets into technology to enable remote working, Ms. Dixon says.

"With competition among employers high, attracting and retaining top talent is a big challenge for organizations," she says.

"Salary remains the main motivator for changing jobs while career development is the number one reason why employees will stay with an employer.

"On top of these, we have seen professionals' views on remote working change since the pandemic, with the majority expecting some form of working-from-home options to be offered as part of a standard employment contract going forward."

What are the highest-paid jobs in the UAE?

What are the highest-paid jobs in the UAE
  • Banking: head of consumer banking – Dh92,000-Dh98,000
  • Legal: partner (5+ years) – Dh103,000-Dh227,000
  • Oil and gas: operations manager – Dh40,000-Dh50,000
  • Public sector: undersecretary – Dh128,800-Dh180,000
  • Strategy: chief strategy officer – Dh90,000-Dh129,000
  • Senior finance and tax: group chief financial officer – Dh93,000-Dh134,000
  • Sales and marketing: general manager – Dh57,000-Dh72,000 (FMCG); head of corporate communications – Dh53,000-Dh67,000
  • Manufacturing: managing director – Dh97,000-Dh134,000
  • Supply chain: chief supply chain officer – Dh85,000-Dh165,000
  • Investment management: chief investment officer – Dh82,000-Dh155,000+
  • Technology: chief information officer – Dh70,000-Dh130,000
  • HR and office support: chief shared services officer – Dh103,000-Dh144,000
  • Accounting and finance: group/regional – CFO Dh100,000-Dh200,000
  • Property and construction: chief development officer – Dh124,000-Dh247,000; executive director of sales Dh77,000-Dh113,000
  • Secretary and office support: personal assistant – Dh20,000-27,000

Source: The National