Based on a survey it has been found that more, than half of companies 53 percent to be precise are planning to increase their employees salaries in the year. Among them 39 percent are looking to raise salaries by up to 5 percent while one in ten companies plan to increase salaries by 6 9 percent. Furthermore 10 percent of companies are considering raising salaries by 10 percent or even more.
Interestingly over 21 percent of companies anticipate a decrease in salaries in the year 2024 despite the demand for talent.
On the hand than a quarter of employers (around 25 percent) have no intentions of increasing their employees salaries in the upcoming year.
Trefor Murphy, founder and CEO of Cooper Fitch expressed optimism about job seekers in the Emirates as he highlighted that a larger proportion of UAE based organizations expanded their workforce in 2023 compared to the year. Moreover over half of this years respondents plan to increase remuneration in 2024. This positive trend suggests that higher demand, for talent often translates into salary packages.
The survey also revealed that 71 percent of companies have plans to distribute bonuses based on their organizations financial performance in 2023. However there is still a portion (29 percent) who do not intend to provide bonuses.
Regarding bonus payments one third (35 percent) of firms expect to grant bonuses. Out of these firms issuing bonuses around16percentare aimingto paya basic salary equivalentto one month in17percentofcases,twomonths andin13percentofcases a three monthbonus.Furthermore,a smallpercentage(4percentand1percent,respectively)planonpayingfourormoremonthsasbonuses.
Employees, in industries such as accounting, chemicals, consumer goods and hospital and healthcare may receive bonuses to six months of their salary. However the financial services, consulting and IT sectors have no plans to offer bonuses. According to Jack Khabbaz, managing partner and CEO of public sector advisory at Cooper Fitch while salaries are crucial for retaining talent in the UAE job market other factors, like bonuses and the option to work remotely are becoming increasingly important.
