The2015 Bayt.com MENA Salary Survey, conducted by Bayt.com, the Middle East’s number one job site, and leading market research agency, YouGov, has found that more than half of professionals in the Kingdom of Saudi Arabia (KSA) are expecting a salary increase in2015, although41% admit that they didn’t receive one in2014.
Current Salary and Future Expectations
Across the MENA region, a little over half (52%) of professionals surveyed claim that their current package consists of basic salary plus benefits. In KSA,63% said that they receive a basic salary with benefits; another11% are also entitled to commission. Nearly a third of respondents in KSA (32%) who receive a basic salary along with other benefits, the basic salary consists of76-100% of their monthly salary package, while for38% their basic salary represents51-75% of their overall monthly income. Based on the survey,60% of respondents in KSA prefer a100% fixed-pay structure.
Today,43% of KSA professionals are unhappy with their income, compared to just5% who are highly satisfied with what they earn. Close to a third (32%) of KSA respondents state that women receive a lower pay then men, for doing the same work. Moreover, according to67% of respondents in KSA, their salary is lower than what other companies in their industry offer.
Surprisingly,41% of KSA respondents said that they did not get a pay raise in2014. For those who did,23% were either very or modestly happy with their raise. Another25% thought that their raise was fair in light of their contribution to the company or the organization’s financial situation – or even both.52% of KSA professionals are quite unhappy or very unhappy with their raise.
More than a quarter (28%) of KSA respondents do not expect to receive a salary increase in2015. In parallel,38% expect a raise of up to15%.
In KSA, the most common benefits offered by companies are personal medical insurance (61%) and personal annual air ticket (46%).
A total of56% of KSA professionals claim that their company does not pay for overtime.
Loyalty, End of Service Benefits, and Insurance
60% of KSA respondents recognize that their loyalty to their company is, on some level, based on the salary that they earn. For29%, however, that is just not the case. Other variables that drive KSA professionals’ loyalty to their company include their line manager (43%) and opportunities for long-term career advancement (36%).
In KSA,61% of respondents receive an end-of-service gratuity and a mere7% get pension upon retirement.32% have access to other forms of end-of-service benefits or none at all.
Approximately two thirds of KSA professionals (61%) have access to medical insurance for themselves – through their company – while34% are also offered coverage for their dependents.
Cost of Living, Quality of Living, and Savings
A staggering85% of KSA respondents have seen the cost of living rise in2014, with25% saying that it grew by more than20%. These KSA respondents who mentioned that the cost of living increased attribute it to increases in the cost of rent (71%), food and beverages (74%), and utilities (35%).75% of KSA respondents expect that the cost of living will continue to soar throughout the year.
The increased cost of living has, in turn, hampered these professionals’ ability to save:25% of KSA respondents admit that they save nothing from their monthly salary. Still,65% of expats in the KSA manage to repatriate a portion of their salary to their home country.
Despite the KSA’s high cost of living,50% of KSA respondents say that they are better off, in terms of quality of life, compared to other people of a similar generation in their country of residence.
In the next12 months,56% of KSA professionals intend to look for a better job in the same industry, while32% aim to find one in a different industry.68% believe that salaries in KSA are increasing.
As for the factors causing salaries to jump, respondents in KSA think that these include inflation/rise in cost of living (52%) and opportunity and economic growth (42%). On the other hand, the elements that are hindering pay rises are poor corporate performance/decreased profitability (22%) and a bad economy (24%)
“The2015 Bayt.com MENA Salary Survey indicates that there is a growing gap between the cost of living in the KSA and salary earnings and propensity to save,” said Suhail Al-Masri, VP of Sales, Bayt.com. “Most respondents (79%) from across the Middle East and North Africa region are expecting a further increase in the cost of living in2015. This means that employers must quickly address this widening disparity if they want to effectively tap into the local and regional talent pool. This study was especially designed to provide employers with insights into employee satisfaction levels with salary and raise received. Such information is key to guiding both employers and job seekers, so the mismatch between salaries and living costs can be successfully addressed. Ultimately, it is about equipping professionals across the career and industry spectrums with the right tools needed to make their next career move – one that can better suit their lifestyle. Tools such as the Bayt.com Salary Search can help employers uncover the salaries that are being paid in their industry. This way, employees will be happier with their pay and will have less reason to worry about the rising cost of living.”
Elissavet Vraka, YouGov, also added: “With about one-third (32%) of respondents from across the region admitting that they are unable to save any money at all, there is no doubt that the need for a salary boost, especially as prices continue to climb, is a very real one. After all, this is impacting employees’ loyalty to their company and encouraging them to jump ship. If they want to retain their employees, employers, on their part, will have to find new ways to improve their salary packages.”
Financial Investments, Expenses and Home Ownership
Only17% of KSA respondents make regular investments (at least once a month), with property (29%) being the most popular investment product.
When it comes to eating out,25% of respondents in KSA do it daily, while29% choose to eat out a few times a week, and30% eat out a few times a month. KSA respondents’ top monthly expenses comprise rent (41%) followed far behind by dining out (15%), children’s schooling (14%) and transportation (7%).
While over one third of KSA respondents already own a home,41% of KSA respondents who currently do not own a home would like to own one in their country of residence. Another66% aspire to own a home in their home country.
About the Respondents
75% of respondents from KSA fall into three categories based on their time spent in their current career:25% have worked in it for less than3 years,29% have worked in it for3-6 years, while21% have stayed in the same career for7-10 years. Moreover,51% of KSA respondents have been working with their current employer for less than three years, compared to33% who have been with their employer for3-6 years.
34% of KSA respondents have up to five people reporting to them, either directly or indirectly. While only10% of them consider that they have attained the most senior level possible within their company,30% believe that they are at a fairly senior level, but not at the top yet.
According to24% of KSA respondents, the average length of time that they have held a job for is at least six years.
Data for the2015 Bayt.com MENA Salary Survey was collected online from March30-April62015. Results are based on a sample of12,158 respondents. Countries that participated are the UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.