It’s an oft-repeated claim that many employees in the UAE haven’t had any pay raise in years.
Salary adjustments are considered a key motivator for workers to give their best, and without it, productivity will be on a decline.
If the findings of a new survey were to be believed, the majority of the workforce in theGulf Cooperation Council (GCC) countries had more reason to work harder- or at least smile about - in 2014.
A research by Hays, a recruitment specialist based in Dubai, found that at least six out of 10 (62 per cent) employees in the UAE and the rest of the GCC area received a salary increase last year.
Using data collated in the last quarter of 2014 and responses from 2,000 employees throughout the Middle East, the salary and employment report analyzed the job market and found out what most people and the region’s companies expect to happen in 2015.
The biggest pay raise received was more than 15 per cent, which benefited about 23 per cent of the employees.
About four in 10 (37 per cent) were rewarded a pay upgrade of five to 10 per cent, while nearly a quarter (24 per cent) received a salary increase of five per cent or less.
A smaller proportion (14 per cent) were granted a salary increase of between 11 and 15 per cent.
The rewards were a result of the economic growth enjoyed by GCC economies, although some adjustments were linked to employee performance and staff transfers.
The International Monetary Fund (IMF) had earlier forecast GCC nations to post a robust growth of more than 4 per cent in 2014 and 2015.
“Regional economic growth and expanding industries boosted the salaries of 62 per cent of surveyed employees last year,” the report stated.
However, questions arise as to whether or not the salary increases were enough for the employees to cope with the rising cost of living.
Last year saw Dubai residents paying more out of their pockets for housing and other living essentials, with apartment rental prices alone registering a 20.2 per cent year-on-year increase according to Reidin.com.
“For those of us based in the UAE, 2014 was a year of rising costs, particularly rents, with which any salary rises we received failed to keep pace,” noted Chris Greaves, managing director, Hays Gulf Region.
“There is no doubt that 2014 was a positive year for employees in the GCC. Spurred on by the confident economic environment and the fast development of the cities, our survey shows that the attitude of employees has grown positive and confident,” the report said.
Asked about their expectations for 2015, the overwhelming majority of employees (79 per cent) expect to get a bigger paycheque this year, with nearly half (41 per cent) anticipating more than 10 per cent pay raise.
Several real estate market reports have recently claimed that rental increases will be slowing down or stabilizing in 2015.
It remains to be seen how many UAE workers will get another round of salary increase this year, but an earlier study by Mercer found that companies across the Gulf are preparing for wage increases of between 5 per cent and 5.5 per cent in 2015 as the countries in the region continue to outperform their peers in the global market.
