About 80 per cent of employers in the UAE are planning to raise employees’ salaries in the current year. The information comes after a positive job market, intense competition for talent and a generally optimistic economic outlook for the region, as per a recent survey conducted by Hays Middle East.
Released on Wednesday, 14 February, the survey reveals that around 69 per cent of UAE employers are intending to expand their workforce in 2024, with 58 per cent expressing optimism about the country’s economic prospects.
The survey, based on inputs from over 2,300 professionals and employers in the UAE and Saudi Arabia, suggests that 2024 promises to be another exciting year, with the economy transforming rapidly in pursuit of long-term government goals.
In 2023, 52 per cent of UAE employees reported a salary increase, most commonly up to five per cent. This year, an even higher number (72 per cent) of professionals in the UAE anticipate salary hikes, and 30 per cent plan to switch companies.
Furthermore, 67 per cent of GCC employers are aiming to increase their workforce this year. This indicates a continued demand for qualified personnel. Employee expectations include adequate remuneration, with 75 per cent anticipating salary increases in 2024. The labour market is dynamic, as 31 per cent of skilled workers actively plan to change organisations this year.
Interestingly, almost half or 49 per cent of UAE companies do not provide remote or hybrid work options for their employees. Over the past two years, the UAE witnessed a significant surge in new job opportunities as the economy rapidly expanded post-pandemic.
However, there was also a notable influx of foreign workers to meet the demands of employers seeking to enlarge their workforce.
The survey highlights a divide among Gulf region employers regarding the use of artificial intelligence (AI) in the workplace, with 41 per cent endorsing its use. While most employers believe AI has not significantly impacted employment, 37 per cent believe it will eliminate more job opportunities than it creates.
Furthermore, the survey revealed that training is seen as crucial to keep up with the evolving job market and technology; however, only 14 per cent of employers report offering upskilling or reskilling AI training programmes to employees.