Gulf workers show signs of frustration over wages

Dubai: A widening discrepancy between wage hikes and soaring living costs in Gulf countries has created a "disgruntled" workforce and a "volatile" job market.

This is the main finding of a GCC study of 270,000 employees across 20 industry categories conducted by online jobsite Bayt.com and market research firm YouGovSiraj.

Click here to see the 'GCC salary survey' fact file (pdf)

The study indicates that employers in Qatar and Kuwait were the Gulf's most generous when awarding salary increases last year. Wages in the two countries climbed by 17 per cent on average, relegating the UAE to second place at 15 per cent.

However, extra money awarded to UAE-based workers was most likely absorbed by added living expenses, the report indicates, with the country's cost of living shooting up by a staggering 28 per cent in 2006 - four per cent higher than the regional average.

"The rapidly growing regional economy is creating new human resources challenges, and employers and employees alike need to understand their implications," said Rabea Ataya, CEO, Bayt.com.

Despite double-digit wage raises in many employment sectors, most professionals want more, a sign of frustration over pay, says Ataya. Employees in the UAE and Bahrain consider themselves the most deserving, expecting a huge 33 per cent wage hike.

Employees were least demanding in Saudi Arabia, where the average 'deserved' pay rise was 27 per cent. Overall, public sector employees in the Gulf feel the most unsung, claiming they justified a pay hike of 39 per cent on average in 2006.

Looking at specific employee categories, the banking and finance sector awarded the most generous raises, increasing salaries on average by 19.5 per cent. Meanwhile, healthcare professionals (excluding doctors) received 11.2 per cent more pay last year.

The "volatile" nature of the GCC's workforce is reflected by statistics revealing a strong desire to change country or return to a worker's country of origin, according to the report.

In Qatar, 37 per cent of respondents said they would consider going back to their home country or relocating in the Gulf to boost pay. Despite the UAE's cost of living, nearly half of respondents said Dubai is their preferred place of work.

These findings were supported by recruitment firm Macdonald & Company, which conducted employment research into the real estate sector specifically - an industry where average GCC wages for development and technical roles rose by 15 per cent last year, the company said.

If employers do not realise the fact that they will need to be more sensitive to their employees financial and emotional needs there will be further brain drain from the UAE and with the lack of a skilled and motivated workforce I do not see the country progressing substantially.
Sanjiv
Dubai,UAE

The cost of living in UAE is rising new heights every day and mostly expatriates are becoming the targets through health cards, medical expenses and visa renewal.
Syed
Edmonton,Canada

An increase of salary in the private sector must be pursued, knowing the fact that it is no longer congruent to living expenses like rent, taxi fare, which soon will go up.
Fen
Abu Dhabi,UAE

You have really opened the eyes of the employers because they were thinking they can go on this way.
Jacob
Riyadh,Saudi Arabia

It is true that pay hikes should be sufficient. If an employer would like to retain his experienced staff/workers, they should wake up and see the reality.
Vishnu kumar
Manama,Bahrain

I feel that Dubai's salary scenario depends on the power of negotiation. There is no particular rule or regulation for salary hikes. If you are good at buttering up to your boss you may get a raise. Different people may also get different salary scales for one job, depending on certain personal categories set by employers, so it is very frustrating for those who do not fit these categories.
Mayuri
Dubai,UAE

The government should implement rules regarding salary increments so that workers do not have to struggle with trying to beat the high cost of living.
Rasheed
Dubai,UAE

Did anybody look into private sector companies? There are companies who do not increase workers' salaries for 10 to 12 years, despite the increasing cost of living.
Elveera
Dubai,UAE

If the cost of living is high then wages should also be hiked accordingly. In my current job I get paid 35 per cent less than what I should really be getting.
Shaik
Dubai,UAE

The cost of living is becoming more expensive by the day. Most people can no longer afford to rent a studio flat from the meagre salary they are getting. This causes major distress to expats.
Nazeef
rak,uae

The majority of companies do not increase workers' salaries. The average salary in the UAE revolves around Dh3,000 per month, and considering the rising costs of living, even if the companies give a 50 per cent salary increase (which is next to impossible), one still can't manage the cost of living in the UAE.
Anil
Sharjah,UAE