With the cost of living rising, employees in the UAE are on the lookout for lucrative pay packages. According to a new survey by recruitment specialist Robert Half, more than half ((52%) of employees polled for the study said it is becoming tougher to afford monthly expenses.
With the financial challenges that employees are experiencing, a substantial proportion of employees ((74%) are exploring a new career in 2023, and the majority of these job seekers (56%) stated that their key motivation is to earn greater pay to fulfill their financial obligations, the study revealed.
The study revealed that workers’ monthly earnings in the UAE no longer keep up with inflation. According to UAE Central Bank estimates, the average wage in the UAE has risen by 3.2% in the last year, while inflation has risen by roughly 5.6%.
To retain top talent, businesses should consider offering higher compensation. “The cost of living is one of the biggest concerns we are hearing from candidates and, make no mistake, people will move to secure the higher salaries they need to meet their obligations,” said Gareth El Mettouri, Associate Director for Middle East at Robert Half.
“Expats may even move away from the area, with knock-on effects for the UAE economy,” he added.
So far, only three in ten (31%) workers in the UAE have received pay adjustments to meet rising inflation. About a quarter have also received mental well-being support from their employers, while 18% received finance training.
“Business leaders are choosing to make cuts when hiring new talent, which is affecting their competitiveness within the UAE and worldwide,” Robert Half said.