GCC Salary how many people are changing jobs each year, what percentage of the workforce receive an increase in salary and by how much, what are the motives for people to commence a new job search, how many people end the year in December on a lower salary than which they started the year in January? And so on. The information in the report comes from job seekers registered with Hays UAE and from the clients for whom we recruit. This year we have received the largest number of contributions to date with over 4,250 completed surveys, adding further statistical integrity to previous years reports. We are confident therefore that the figures and the conclusions we draw in the report represent the experiences of the wider professional workforce across the GCC. It is said that the four key cornerstones of our lives are our family, our health, where we live, and our employment, and it is our employment which allows us to pay for the other three! Its not surprising therefore that there is an inordinate amount of interest in whats happening with salaries and jobs, so what happened in 2017 and what are we expecting in 2018? The first thing to report is that, like 2016, the ongoing challenges caused by low energy prices resulted in over a third (35%) of the companies who responded to our survey reducing their headcount. This is broadly supported by the 5% of our candidate respondees who were made redundant in 2017. Looking ahead, employers are more positive about 2018 with 66% expecting market activity to increase for their business. When looking at the areas of anticipated skills shortages in 2018 the two largest are Managerial/Leadership and Sales, and this is borne out by our own experiences; two of our busiest recruitment teams in 2017 cover the Executive Search and Sales markets. New leadership teams have been hired extensively across the region to drive performance in challenging markets, and in a similar vein companies have constantly looked to refresh their sales teams with proven talent. Turning now to salaries, the broader experiences reported for 2017 were exactly the same as in 2016; 39% of candidates reporting an increase in salary during the year, 52% reporting no change, and 9% reporting a decrease in salary during the year. We dont have further detail about this latter 9% but our hunch is that this is from a mixture of some companies changing the terms and conditions of their employment offerings, and some people losing their jobs having to take up a new role at a lower salary. What is quite clear from our last two surveys is that the era (if there ever was one) of the large-scale across the board pay rises for all employees is over. Some companies are selectively targeting higher performers for above inflation pay rises, but for the third year running the single biggest explanation offered by our candidates for an increase in their pay in 2017 was A new job with a new company. Now there is always a disparity between the number of people who anticipate changing jobs in the next twelve months, and those that actually do, but in 2017 29% of respondents changed jobs (55% had anticipated changing jobs in 2017). Looking ahead 51% expect to change employer in 2018, so we would forecast somewhere in the late 20%s as the likely figure. We accept that our figures might be slightly higher than a norm group, seeing as our survey recipients are on a recruitment agency database, but nevertheless an attrition rate of 28-29% is high and explains why so many companies rate associated issues so highly. Our clients report the two most challenging areas for their HR teams in 2018 to be Employee engagement and Staff retention. As for my own thoughts, having just read Dan Gardners book Future Babble: Why Expert Predictions Fail - and Why We Believe Them Anyway, Im rather wary of looking into the crystal ball. If pushed however, and in the absence of a major geo-political event in the region, I see no reason why conditions for employment across the GCC shouldnt continue to marginally improve in 2018 in the build up to Expo 2020. Many thanks to everyone who contributed to this years survey and heres to a prosperous next twelve months. Chris Greaves Managing Director, Hays Gulf Region GCC Salary the majority once again by 5-10%. Slightly different was the average salary rise given as a result of a company-wide pay increases, with more receiving a change of less than 5% and fewer professionals receiving an increase of 5-10%. However, this is unlikely to have any significant bearing on salaries for 2018, where we are seeing growing optimism in the market. Over the next 12 months, 68% of employers expect salaries to increase compared to 59% who said the same for 2017. For the first time since collating this report, employee salary expectations are slightly more subdued than employers, with 59% predicting an increase to their salary in 2018. However, once again, the majority of working professionals anticipate this to rise by 5-10%. Skills The number of available candidates continues to grow year-on-year, largely owing to tax-free salaries attracting workers to the region. 69% of businesses do, however, expect to encounter some form of skills shortages over the next 12 months. Much of the reason for this, as stated by nearly 70% of organisations, was either due to competition from other employers hiring the talent that they are after, or simply a shortage of suitable applicants in the local market. As such, we are noticing talent management, engagement and retention to be of much greater significance to employers, as they look to upskill and maximise the capabilities of their existing resource, while at the same time attracting and retaining top talent ahead of their competition.GCC Salary & Employment Report 2018 5 SURVEY RESULTS 4 GCC Salary & Employment Report 2018 hays.ae SURVEY RESULTS EMPLOYEES & EMPLOYERSEMPLOYEE SURVEY RESULTS 6 GCC Salary & Employment Report 2018 GCC Salary & Employment Report 2018 7 hays.ae EMPLOYEE SURVEY RESULTS CAREER, SALARIES & WORK-LIFE BALANCE Did you start employment with a new organisation this year? If answered yes: What made you move to a new organisation this year? When do you anticipate you will next move to a new job with a new organisation? Within 6 months Between 2-3 years Between 6-12 months More than 3 years Between 1-2 years Career If answered within 6 months or between 6-12 months: Why are you looking to change your job within a year? 2017 2016 2015 Salary increase 1 1 Lack of future opportunities 2 A new career path 3 3 Concerns about job security 4 Organisational culture 5 End of contract 6 Benefits package 7 Other 8Location 9 1 2 3 5 4 7 8 n/a 6 3 6 5 8 2 7 8 Aside from salary, what is the most important factor to you when considering a new job? 2017 2016 2015 Career development 1 1 Benefits package 2 3 Job security 3 3 n/a Work-life balance 4 Challenging role/project 5Organisational culture 6 4 Location 7 7 n/a 4 2 n/a 1 2 6 5 What are the most important factors keeping you with your current employer? N/A 2 1 3 4 5 n/a 2 3 1 5 4 7 2017 2016 2015 I am happy in my role 1 Salary 2 Career progression 3 6Job security 4 Organisational culture 5Benefits package 6 Other 7 When it comes to benefits specifically, which is the most important to you when considering a new role? 2017 2016 Flexible working 1 None of these are important to me 2 Onsite subsidised facilities (e.g. gym, healthcare) 3 6 Other 4 Financial support for professional studies 5 Company car or car allowance 6 2 Childcare vouchers 7 7 Life insurance 8 4 Share incentives 9 5 Above statutory maternity/ paternity leave 9 8 Discounts on company products or services 1 10 3 9 11 10 2017 2016 2015 Yes No y y T y jB 8 GCC Salary & Employment Report 2018 GCC Salary & Employment Report 2018 9 EMPLOYEE SURVEY RESULTS hays.ae Do you feel that there is scope for career progression within your organisation? EMPLOYEE SURVEY RESULTS CAREER, SALARIES & WORK-LIFE BALANCE Do you feel you have the skills needed to fulfil your current role? Did your salary change this year compared to last? Salary How do you feel about your career prospects for the next 12 months? Positive Uncertain Negative If it did change: What was the reason for this? 2017 2016 2015 A new job with a new company 1 1 1 Individual performance related pay increase 2 3 3Standard annual pay increase across the whole company 3 1 2 A promotion within the same company 4 4 4 You requested a pay increase and were successful 5 5 5 A pay decrease across the whole company 6 7 7Other 7 6 6 If it did change: By what percentage was this? 2017 2016 2015 No, it remained the same Yes, it increased Yes, it decreased Yes No Yes No 10 GCC Salary & Employment Report 2018 GCC Salary & Employment Report 2018 11 EMPLOYEE SURVEY RESULTS hays.ae Are you happy with this expected salary change? EMPLOYEE SURVEY RESULTS CAREER, SALARIES & WORK-LIFE BALANCE Do you realistically expect your current salary to change in the next 12 months? Work-life balance How would you rate your work-life balance? Very good Poor Good Very poor Average If answered yes: By how much do you realistically expect your salary to change? Which of the following flexible working options (if any) are the most important to you when considering a new role? 2017 2016 Working from home or working remotely 1 None of these are important to me 1 Flexi-time: Scope to change work hours outside of core business periods 3 Compressed hours (i.e. fitting a five-day week into four days) 4 Part-time working 5 Annual hours: Agreed hours split into set and reserve shifts, worked as demand dictates 5 Term-time working: Paid or unpaid leave during school holidays 7 Job sharing: Splitting full-time hours with another person in the same role 8 1 3 2 4 6 5 6 8 Which of the following would you ideally change in order to improve your work-life balance? If answered no: What is the reason? 2017 2016 2015 Do you currently use any of the following flexible working options? 2017 2016 17% 14% Working from home or working remotely 17% 12% Flexi-time: Scope to change work hours outside of 'core' business periods 3% 3% Compressed hours (i.e. fitting a five-day week into four days) 3% 2% Part-time working 2% 2% Annual hours: Agreed hours split into 'set' and 'reserve' shifts, worked as demand dictates 2% 2% Term-time working: Paid or unpaid leave during school holidays 2% 2% Job sharing: Splitting full-time hours with another person in the same role 1% 0% Other 65% 61% None of the above Yes No Yes No 2017 2016 2015 2017 2016