Kuwait City, Kuwait,11 June2018: The Bayt.com ‘Middle East and North Africa Salary Survey’, conducted amongst working men and women in the MENA region in partnership with YouGov, revealed a variety of insights on employees’ perceptions of salaries and benefits. According to the survey, two thirds of respondents in Kuwait (67%) believe salaries are either increasing or staying the same. At the same time, over half (55%) of employees expect to receive a raise in2018, with the largest proportion of these respondents (16%) expecting a raise of1 to5%.
The survey, administered by Bayt.com, the Middle East’s #1 job site, and YouGov, a global pioneer in online market research, aims to gauge employee satisfaction with their current salaries and the varying components that contribute to it, as well as explore the drivers of loyalty towards employers and the significance of salary in career satisfaction and general wellbeing.
Salaries, Benefits, and Raises
In terms of salary, over a third (36%) of Kuwait respondents claim that their current salary package consists of basic salary with benefits, while close to half (45%) claim that it consists of basic salary only.18% said they receive a basic salary as well as a commission and benefits.
When it came to the preferred pay structure,56% of Kuwait respondents said they prefer a ‘100% fixed pay structure’, a third (33%) said they prefer a ‘partially fixed pay structure with a variable pay for commissions and incentives, while one in10 (12%) prefer a ‘100% variable pay structure.
Among the various benefits employees in Kuwait receive, personal medical insurance (27%), personal annual air ticket (24%), transportation allowance (21%), bonus (20%), and housing allowance (18%) are the most common. As for end of service benefits,61% of respondents say their company presently offers end-of-service gratuity,5% receive pension on retirement, and9% receive other forms of benefits.
Looking back at last year, over a third (36%) of respondents received a salary raise in2017. Nonetheless, over half (55%) of respondents from Kuwait expect to receive a raise in2018, with the largest proportion of these respondents (16%) expecting a raise of1 to5%.
Among respondents who believe salaries in Kuwait are increasing, over a third (34%) attribute it to inflation and a rise in the cost of living, another third (31%) believe salaries are increasing as a result of good corporate performance and increased profitability,25% say it is caused by intense competition for attracting and retaining talent, while20% believe it is due to growth in opportunities and economic growth in their country of residence.
Finances and Expenses
More than two thirds (68%) of respondents believe their cost of living increased by up to30% in2017,20% believe it has increased by more than30%, while6% believe it decreased or remained the same. When asked about the components of living expenses which increased in cost in2017, food and beverage (78%) and rent (65%) emerged as the top two by a large margin. A majority (74%) anticipate a further increase in the cost of living in2018.
In terms of monthly expenses, respondents from Kuwait said they spend the most on rent (54%) food and dining out (14%), and education, schooling, and books for their children (11%).
That said,63% of respondents still manage to save a portion of their monthly income, just over half (56%) of Kuwait respondents repatriate some portion of their salary to their home country, and18% make regular financial investments.
In terms of quality of life, one in two (47%) respondents from Kuwait believe they are better off than other people of a similar generation in their country of residence, another three in ten (29%) believe they are about the same, and only19% believe they are worse off.
When asked about their career plans in the next twelve months, over half (56%) of Kuwait respondents said they will look for a better job in the same industry, and two in five (38%) said they plan to look for a better job in a different industry.
“Surveys like this help uncover extremely valuable insights for employers and employees alike. It’s no surprise that as the cost of living increases in the MENA region, so do salaries and raise expectations, said Suhail Masri, VP of Employer Solutions, Bayt.com. “At Bayt.com, we strive to pair job seekers with the employers that best suit their needs and preferences, and vice versa. We have more than10,000 jobs available on Bayt.com on any given day, and with the knowledge gained from this survey and others like it, we are able to help facilitate the best matches between candidates and recruiters while making the process of finding jobs and filling vacancies smoother, less time consuming, and more rewarding all around.”
Respondent Profile
Among those surveyed, fewer than half (45%) of all respondents from Kuwait have been working in their current industry for up to six years, with almost a third (31%) having worked in their industry for more than10 years. When it came to specific employers, three quarters (77%) of respondents have been working with their current employer for six years or less, with46% having worked for their employer for less than three years. Less than one in ten (8%) have worked with their current employer for more than10 years.
In their current role, about a third (31% )of Kuwait professionals claim to be ‘midway in terms of seniority’ when asked about the level they have reached in their career path, with another third (35%) claiming they are ‘fairly senior level but not yet at the top’,20% report being in the ‘early days of their career’, and14% being at the ‘most senior level’ they can achieve.
Just over half (52%) of Kuwait respondents have up to10 people reporting to them both directly and indirectly, while just under a third (30%) have11 or more people reporting to them.
“Salaries is repeatedly one of the most important research topics for the MENA region, “said Nihal Jibouri, Head of Custom Research (MENA), YouGov. “With the information we cover from this survey, we are able to gauge employee’s current income structure and levels, satisfaction with their salaries, perception towards their cost of living and expense allocation. This provides many insights to employers and key decision makers on many elements relating to the job market, the economy, and the quality of life.”
Data for the2018 Middle East and North Africa Salaries survey was collected online from24th March2018 to13th May2018. Results are based on a sample of4,194 respondents from the following countries: UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Jordan, Iraq, Palestine, Syria, Egypt, Morocco, Algeria, Tunisia, Libya, Sudan, and Pakistan.