Dubai: Over 60 per cent of UAE business leaders expect employee headcount at their companies to increase in the next 12 months, a recent survey has revealed.
However, new research from recruitment consultancy Robert Half has revealed that the global economic picture—with multiple elections scheduled and unstable inflation—is seen as one of the most significant challenges for business performance by 39 per cent of organisations and is causing many to delay hiring activity.
The report stated that some UAE companies have introduced a hiring freeze and are awaiting election results in the UK and the US, as well as interest rates to stabilise, before resuming recruitment activity. These global issues are resulting in rising costs in the UAE.
100 senior business decision-makers in the UAE
The report, which surveyed 100 senior business decision-makers in the UAE, also revealed that two-thirds (67 per cent) of business leaders in the UAE feel very confident about their organisations’ growth prospects for the remainder of 2024 and into 2025, but uncertainty is slowing the hiring market.
The report said business leaders’ confidence is being driven by increased demand for products and services (66 per cent), expanding business opportunities (58 per cent), and a better economic situation (50 per cent).
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Gareth El Mettouri, Director - Middle East at Robert Half, said, “Despite the UAE economy booming and businesses seeing opportunities for growth in the year ahead, global uncertainty is impacting hiring intentions.”
He added, “As a global hub, many businesses in the region could be hugely impacted by the parliamentary elections around the world, and while high inflation and unstable interest rates persist, many businesses are playing it safe and putting off important decisions.”
Hiring after elections, stable interest rates
The survey also said that one in three (33 per cent) business leaders are waiting to make hiring decisions until the outcome of the elections—particularly those in the US and the UK—is known, while 32 per cent agree that they are waiting for interest rates to stabilise.
These global issues, resulting in rising costs in the UAE, have driven one in three (29 per cent) to say their organisation has introduced a hiring freeze, which could leave companies without the talent they need to meet their growth potential.
No salary increases, no bonuses in the pipeline
With nearly two in five (37 per cent) already expecting the availability of technical skills to be a significant challenge over the next 12 months, Robert Half’s report has recommended organisations make sure that they are doing what they can to hold onto talented workers. However, a third (33 per cent) of organisations are not expecting to offer salary increases and 30 per cent expect to forego bonuses this year, which could see workers jump ship.
“Most business leaders still expect to see overall headcount increase over the next 12 months despite hiring freezes and delays – but this could be setting up for a highly competitive market once the brakes are off at the end of the year and moving into 2025, especially with stagnant salaries creating an appetite for change,” said El Mettouri.
