Setting salary ranges in any organization typically depends on global salary surveys and benchmarking. Major consultancies like WTW and Korn Ferry produce some of the most comprehensive data, with Korn Ferry alone collecting compensation information from more than 26,000 companies across over 150 countries.

However, many companies in the MENA region are cautious about relying heavily on such surveys, largely due to their cost. Firms like Mercer offer job-specific surveys at around $300 per role, while more comprehensive, globally benchmarked reports run into the thousands of dollars, making them less accessible, particularly for smaller businesses.

For the countries that can afford these surveys, a slew of other challenges stand in the way. According to WTW, many Gulf Cooperation Council (GCC) countries do not consistently adhere to survey benchmarks, partly because they attract talent from countries with vastly different salary norms. 

This reality challenges the principle of “equal pay for equal work,” as GCC markets often navigate a patchwork of international wage expectations.

Local nationals in the GCC also often command higher wages due to limited talent pools and mandatory national employment quotas. These policies vary by country and sector and significantly raise employment costs. 

For example, the salaries of locals in Saudi Arabia can be significantly higher than those of low-wage expatriates, especially in industries such as manufacturing. This challenges employers to strike a balance between compliance, cost efficiency, and equitable pay structures.

SETTING SALARY BENCHMARKS

Ahmed Saber, Paymob’s Payroll Lead, says organizations in Egypt typically do not rely on official salary surveys due to their inaccuracy and high cost. 

Saber says that organizations usually depend on market insights from talent acquisition teams. “We ask them to collect detailed information—such as salaries, incentives, and benefits—for specific positions, and we use this data to build a mini salary structure.”

He adds that they gather information from multiple companies for the same roles to ensure accurate compensation data. They start by identifying candidates in similar positions at competitors to ensure industry relevance, then conduct interviews to collect salary data—avoiding reliance on a single source.

Once enough data is compiled, they establish the market’s minimum and maximum salary range. “From there, I decide whether we want to align with the market, lead it, or stay below—depending on our compensation strategy and the role’s importance to the business,” Saber says.

Fatima Makhchoumi, HR Leader at Cummins Arabia, says her organization primarily relies on insights from Mercer as a reference point. However, she notes that the data only goes so far.

“It doesn’t always reflect specific industry trends or niche roles, such as technicians in remote areas,” she explains.

Makhchoumi adds that they typically take a blended approach: “We use the available data as a baseline, then layer in internal insights drawn from our talent dynamics, business needs, and historical trends.”

SALARY DISCREPANCIES 

Ahmed Mansour, Head of Human Resources and Organization at Abu Dhabi Islamic Bank, notes that the absence of robust salary surveys often leads to skepticism about the accuracy of pay data—from both employers and employees.

“One of the key benefits of investing in participating in a renowned salary survey is ensuring the reliability of this critical exercise and properly addressing pay gaps across various levels.”

The absence of validated market data can greatly influence how employees perceive fairness, pay discrepancies, and transparency. 

However, in practice—particularly in environments where compensation transparency is still evolving—most employees aren’t highly aware of these gaps. “The organizational culture and market environment often aren’t mature or open enough for employees to actively engage in discussions around pay fairness,” says Saber.

As a result, employees tend to gather this information on their own. Like companies collect informal market data for salary benchmarking, candidates often evaluate their market position by applying to various companies and comparing their offers.

“This becomes their understanding of whether their current compensation aligns with, above, or below market standards. So, while the lack of validated data theoretically affects perceptions, in reality, many employees rely on personal experience rather than official benchmarks to evaluate fairness in compensation.”

“Employees want to feel that their compensation is fair and that there’s a clear logic behind it,” says Makhchoumi, explaining that in the absence of strong external benchmarks, they focus shifts on transparency, being open about how decisions are made, trying to build trust through honest conversations and consistency.

REGIONAL ECONOMIC CHALLENGES

Makhchoumi says economic pressures in the region have made compensation conversations even more delicate.  “Based on what we see in the market, in some cases, employees are more open to compromise if there’s job security and long-term potential, but that only goes so far.”

Makhchoumi says their organization focuses more on the concept of a total reward, highlighting career growth, purpose-driven work, benefits, and a healthy work culture.

When it comes to Egypt, economic pressures heavily influence salary structures. As the government continues to raise minimum wage thresholds to combat inflation, many businesses struggle to keep pace—with 80% reportedly failing to implement the most recent increase to EGP 6,000 (approximately $120), citing financial challenges.

Saber explains that while economic conditions play a major role in shaping salary practices, in his sector, compensation strategies must also account for competition from companies outside Egypt and even beyond the region. 

“I’m aware of our market position in terms of salaries, but I also need to create a sense of attraction through other benefits or alternative approaches to maintain a competitive edge and remain relevant against foreign employers.”

One of the primary drivers motivating candidates to seek opportunities abroad is the appeal of receiving salaries in a foreign currency. “With that in mind, we considered paying critical team members in our company the equivalent of their salary in USD. We understand how impactful and secure it feels for an employee to receive their income in USD,” he says. 

However, he adds that they remain cautious of the challenges of consistently sourcing foreign currency and managing risks related to currency floatation and devaluation.

Mansour emphasizes that HR professionals are critical in keeping organizations competitive and attractive as employers. “In our context in the Egyptian market, there is always an additional pressure to always catch up with rising inflation to minimize the impact of such economic pressures on our employees’ income levels and wellbeing.”

ENSURING PAY TRANSPARENCY

Relying on current employees’ salary ranges, compensation data gathered during interviews with external candidates, and insights from HR networks and professional communities are all effective alternative methods to promote pay transparency and fairness, according to Mansour.

Improving pay transparency and internal communication around compensation—even in the absence of external survey data—can be achieved through practical steps centered on two main principles: internal and external equity.

Saber explains, “For internal equity, we focus on setting salaries based on performance rather than seniority, reinforcing the message that performance equals pay.” This is tied to the value of each role, which is determined through a structured job evaluation process. 

He adds that making pay grades public is another effective and feasible measure. “Even though individual salaries remain confidential, companies can include the pay grade or salary range for each position in job postings and internal vacancies,” he says, helping set clear expectations and support transparency.

Makhchoumi explains that it’s essential for organizations to clearly explain their pay structure, the principles behind how we make decisions, and what employees can expect at each stage. “Employees may not always agree with every outcome, but they appreciate clarity, fairness, and knowing that decisions are thoughtful and consistent,” she notes. 

“You don’t need perfect data to be transparent; you just need to be intentional.”