In the latest guide by recruitment agency Cooper Fitch, the UAE’s job market is poised for a 4.5 percent increase in salaries in 2024. This projection is based on a comprehensive analysis of global recruitment market figures and trends. The guide highlights several positive shifts in the UAE’s recruitment landscape, largely driven by non-oil sectors.
- Salary Increase: The UAE experienced a 4.5 percent increase in salaries, with 54 percent of surveyed organizations implementing raises this year. The sustained demand for talent is a significant factor behind these salary adjustments.
- Headcount: Despite 28 percent of surveyed organizations making headcount reductions, over 59 percent expanded their teams. The outlook for the coming year suggests a focus on more hiring and expansion.
- Bonuses: Annual bonuses are on the horizon for most respondents, with a majority planning to pay one month’s basic salary. Certain sectors, including accounting, consumer goods, chemicals, hospitals, and healthcare, may offer bonuses of up to six months of basic salary.
- Financial Sector Bonus Trends: The financial service sector (29 percent) is not inclined to pay bonuses, influenced by challenges faced by international banks in 2023. Similarly, the consulting industry opts out of bonuses due to heightened competition.
- Talent Outlook: Talent acquisition is a prevailing trend, with 27 percent of respondents foreseeing a shortage of available talent in the coming year. ‘Management’ and ‘leadership’ emerged as the most significant talent gaps, followed closely by ‘sales.’
Jack Khabbaz, Managing Partner, CEO, and Public Sector Advisory at Cooper Fitch, notes that while salaries remain crucial for talent retention, factors beyond fixed remuneration, such as annual bonuses and remote work flexibility, are gaining prominence in the UAE’s job market.
This salary guide provides valuable insights for organizations and job seekers alike, offering a comprehensive overview of the current and anticipated trends in the UAE’s dynamic employment landscape.