UAE. Organisations in the United Arab Emirates plan to increase employee salaries nearly three per cent above inflation in 2012.
The latest Salary Budget Planning Report for Europe, the Middle East and Africa (EMEA) found that salaries for UAE employees were predicted to increase by five per cent against a prevailing inflation increase of 2.1%.
Employees in Saudi Arabia will see the highest increases at 6% against an inflation rate for 2012 of 4.1%. Salary increases are expected to be consistent across the remaining Gulf States at 5.0%- 5.5%. Theses increases will feel more significant in the UAE and Bahrain, where inflation is currently running at a lower rate.
The results were revealed today at the Towers Watson Middle East HR forum held in Dubai. The event saw more than 100 HR professionals from various sectors across the region come together to discuss current HR issues and hot topics.
The survey also revealed that high performers in the workplace will have an added advantage when it comes to salary increases, as more than 75 per cent of the companies surveyed have allocated a large portion of their 2012 budget to high performing employees.
Billy Turriff, line of business leader – Data, Surveys and Technology, Towers Watson, said, “The results of Towers Watson’s Salary Budget Planning Report clearly show that job market trends across the GCC point to a positive and steadily growing market. The last few years have been a tough one for most economies across the globe. While many markets are still grappling under the weight of the crisis, the Gulf region continues to remain a lucrative one for expansion, thus attracting talent and new investments from across the globe. Additionally, we are seeing an increase in the number of initiatives undertaken among organisations to nurture and retain local talent.”
Outside of the region, salary increases are set to be consistent across Europe’s largest economies – Germany, France, UK, Spain and Italy – at or around 3%. Russian companies expect to grant salary increases of 10% on average against an inflation rate for 2012 of 5.9%, while South African employees will see pay increase by an average of 7.5%.
About Towers Watson’s Salary Budget Planning Report
Towers Watson’s Salary Budget Planning Report for Europe, the Middle East and Asia, published in March 2012, incorporates pay data from 4,200 companies across 60 countries, and was submitted for the twelve-month period ending 30 January 2012.
About Towers Watson
Towers Watson Data Services (TWDS) is a leading provider of compensation, benefits and employment practices information to the global employer community. TWDS databases are recognised worldwide as the most reliable source of current data for compensation planning.
Towers Watson is a leading global professional services company that helps organisations improve performance through effective people, risk and financial management. With 14,000 associates around the world, Towers Watson offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management.
Photo: Billy Turriff, line of business leader – Data, Surveys and Technology, Towers Watson