Dubai, UAE, February19,2007: The cost of living in the Gulf is outstripping salary increases, leading to an increasingly disgruntled workforce and a more volatile job market. Salaries in the region went up by15% on average in2006, but the cost of living shot up by24% - and living expenses went up the most in the UAE.
That was the verdict of a comprehensive online study of Gulf-based professionals by the Middle East’s ‘#1 jobsite’ Bayt.com and leading market research firm YouGovSiraj. The survey interviewed a cross-section of employees in the six GCC countries across more than20 industry categories, from automotive to pharmaceuticals.
Employers in Qatar and Kuwait awarded the highest pay rises in2006, an average of17%. The UAE was second on the list with15%, but the Emirates recorded the biggest cost-of-living jump in the Gulf,28%.
Looking at the regional picture, workers in the private sector fared better than their government peers, earning an average pay hike of around17% compared to approximately13% for public sector employees.
Rabea Ataya, CEO, Bayt.com, said: “This new study presents a clearer picture of labor market conditions in the Gulf than ever before and uses the additional expertise of a recognized market research leader, YouGovSiraj. The rapidly growing regional economy is creating new human resources challenges, and employers and employees alike need to understand their implications.”
A white paper titled ‘GCC Human Resources Overview - Salaries, Cost of Living and Loyalty’ summarizes the main findings of the Bayt.com/YouGovSiraj survey and is available online at www.bayt.com.
The banking and finance sector awarded the most generous raises in2006, increasing salaries on average by19.5%. Healthcare professionals (excluding doctors) were among the least pampered, receiving only11.2% more pay last year.
Nassim Ghrayeb, CEO, YouGovSiraj, said: “A detailed questionnaire was shared with more than270,000 registered members of the Bayt.com website, representing the broadest cross-section of working professionals in the region.”
He said: “The survey addresses conditions, perceptions and behavior in each GCC country and in over20 different industry sectors.”
Despite double-digit raises, most Gulf professionals want more - and employees in the UAE and Bahrain consider themselves the most deserving. The raise they felt they ‘deserved’ in2006 was put at33% reflecting the higher cost of living in both countries.
Employees were the least demanding in Saudi Arabia, where the average ‘deserved’ pay rise was recorded as27%. Overall, public sector employees in the GCC feel the most unsung, claiming they justified a pay hike of39% on average in2006.
So is throwing in the towel the answer to higher earnings? Gulf countries with large expatriate workforces appear the most volatile. In Qatar,37% of the survey’s respondents said they would consider going back to their home country or relocating elsewhere in the Gulf to boost pay.
Dubai stands to prosper from the itchy feet of disgruntled Gulf workers. Despite the cost of living in the UAE shooting up28% according to the Bayt.com/YouGovSiraj survey, nearly half of the polled respondents said Dubai is their preferred place of work.
But the UAE’s many attractions might not include more cash. Kuwait comes in with the highest average monthly salary in the Gulf, US$3,100. Saudi Arabia is second with US$3,000, and the UAE is in fourth place with an average monthly pay packet of US$2,750.
Perhaps a change of career is the way forward? The majority of respondents in all the GCC countries would rather tackle a new industry than seek a better position in the same field in order to address the problem of higher living cos ts.
Bayt.com’s Rabea Ataya added: “Increasing inflation is putting pressure on lifestyles, but the general picture remains optimistic. On average, more than four fifths of respondents in the Gulf consider themselves ‘on a par with’ their peer group or ‘somewhat better off’. But perceptions of living standards appear to have a direct impact on the length of time people expect to stay in one location.”
Employees in Qatar are the most unsettled according to the survey, holding an average of2.4 jobs in the last five years. And job-hopping across the region is most pronounced in the advertising, tourism, PR, travel and IT industries.
Public sector employees may be less well paid, but they are more loyal. According to the survey, the average government worker spends more than seven years in the job while advertising employees stick around in the same post for less than four.
Ataya added: “Interestingly, the lack of growth opportunities, not pay, is cited as the number one reason for leaving a job. Employers therefore need to pay equal attention to career growth and performance recognition, as well as to ensuring that salaries are competitive.”
He said: “More than60% of our respondents said they look for a job while they’re still in one, so employers should plan pay structures and growth strategies for their staff well.”
Founded in2000, Dubai-based Bayt.com has offices in10 regional cities - Abu Dhabi, Dubai, Riyadh, Jeddah, Al Khobar, Doha, Manama, Kuwait City, Amman and Karachi.
Bayt.com has a database of more than1.3 million users - mostly from around the GCC but also the wider Middle East, Africa, Asia, North America and Europe - and more than26,000 employers.
Global research company YouGov acquired one of the Middle East’s top qualitative research consultancies Siraj to form YouGovSiraj in August2006; YouGovSiraj serves the GCC, Levant, Africa, Turkey and Pakistan from its Dubai headquarters.
Based in the UK, YouGov uses online panels to provide research for public policy, market analysis and stakeholder consultation, and has a track record as the UK’s most accurate pollster.