It’s a little-known fact that amid high and persistent uncertainty over the state of the Middle East economy, which is growing at a slower pace this year, and the depressing business investment as companies tighten their belts, employees in the region are increasingly finding themselves underpaid and overworked while having to bear the burden of surging inflation and stagnant wages. 

The economic slowdown forces more workers to accept poorly paid jobs.

Commenting on how the economy plays a significant role in unfair compensation, HR Specialist Hazem Fayed, says, “A weak economy forces employees to accept poor compensation, which gradually becomes the standard across the board. This economic pressure perpetuates unfair compensation practices within organizations.”

He adds that a lack of transparency allows organizations to pay some employees less than they deserve, further contributing to the problem.

Although large organizations are less prone to unfair compensation due to well-defined pay structures and sound corporate governance practices, they are still more likely to face stagnant wages and unfair salary adjustments. 

Economic changes impact large enterprises more aggressively than small and medium enterprises, and adjustments in large organizations take longer to plan and implement, says Ola Elkelany, People & Culture Expert and HR Consultant.

“In SMEs, most likely it’s different; favoritism, misjudgment of people’s capabilities, and the competition of hunting people from competitors might affect the hiring budget and cause unfairness for some people inside the organization,” she adds.

While emphasizing the role of the economy and the lack of salary transparency, Career Coach Noona Nafousi points out social and systematic biases also lead to unequal pay for similar roles.

Systematic inequality plays a significant role in unfair compensation. A World Economic Forum report shows how the MENA region remains the furthest from achieving gender equality, scoring only 62.6% on a parity index. At the current pace, it would take a staggering 152 years to reach full regional parity. 

Progress is uneven within the region. The UAE and Bahrain boast the highest parity scores, while Oman lags behind. Worryingly, the three most populous countries—Egypt, Algeria, and Morocco—all saw their scores decline.

However, there are some bright spots. Five countries, led by Bahrain, Kuwait, and Qatar, have improved their parity by at least 0.5%.

SALARY TRANSPARENCY

The region lacks mandated pay transparency laws. While some forward-thinking organizations adopt this practice to attract new talent, it remains rare.

For Nafousi, salary transparency is critical. It ensures fairness within a company, and employees gain valuable insights into their compensation relative to colleagues and industry benchmarks.

To benefit from salary transparency, employees should discuss pay, seek resources and reports on salary ranges within their company, and use this information to advocate for equitable compensation.

“Transparency empowers employees to negotiate more effectively and ensures accountability within the company; it is also important to close the gap in pay discrepancies between genders and help identify racial differences that may occur in certain parts of the world,” she adds.

ElKelany says pay transparency builds trust between the employees and the company. “It keeps employees assured that when they excel in work, the performance review cycle will show that and reflect it on their pay, opportunities for career growth will come after, and opportunities for raises will be there.”

THE WARNING SIGNS

There are several warning signs that an employee might be underpaid in their current role, including high turnover, stagnant wages, taking on additional duties without a corresponding pay raise, difficulty keeping up with rising living costs without salary adjustments, and noticing that similar job listings offer higher salaries than their current compensation.

Additional warning signs include receiving job offers with significantly higher salaries than current pay, difficulty attracting good talent for the same position under the existing pay structure, and employees developing new skills and knowledge without clear career goals within the company. 

This lack of career clarity leads to underutilized skills and a mismatch between their abilities and compensation. To address these issues, companies should conduct salary surveys to reevaluate their pay structures and establish clear career mapping for their employees.

Salary not aligning with industry benchmarks for your role and location is a clear red flag.

STRATEGIES FOR NEGOTIATION

Initiating a conversation about a potential pay raise can be challenging, but employees can effectively present their case with the right approach, says Elkelany. “It’s important for the employees to understand the market rate for their positions. When they have good results, performance review meetings will always be the right door to open these types of conversations.”

“Approach the conversation with a positive, collaborative attitude, and be open to feedback and negotiation. Ensure that your beliefs about yourself are also in check, and you are going in with high self-belief and self-worth,” Nafousi adds.

Fayed says employees should always take measures to ensure they are fairly compensated. These include gathering information on industry salary standards, seeking a raise during a performance review or after successfully completing a significant project, and presenting concrete evidence of their achievements and how they’ve contributed to the company’s success. If an immediate raise isn’t feasible, they can inquire about a timeline for revisiting the salary discussion in the future.

SALARY ISN’T EVERYTHING

However, a job offer isn’t just about the salary; employees should also consider other factors.

“Ensuring you have a holistic view of the compensation package will help you make a more informed decision and secure a position that truly meets your needs and career goals,” says Nafousi.

According to Elkelany, it’s important to look at the benefits package, work-life balance, professional development opportunities, job security, role responsibilities and how they align with career goals, the company’s reputation and market position, the commute, and the type and duration of the contract.

“All of these factors should be considered when an employee evaluates a Job offer. By considering these factors, employees can ensure they are receiving a fair compensation that aligns perfectly with their personal and professional goals,” she says.

According to Fayed, “the comprehensiveness of the benefits package, including health insurance, life insurance, stock options, and paid time off, should be carefully reviewed.”