The2014 Bayt.com MENA Salary Survey, conducted by Bayt.com, the Middle East’s number one jobsite, and leading market research agency, YouGov, has revealed that expectations of a pay rise in2014 are high in Oman, though27% of professionals surveyed confirm they didn’t receive a pay rise in2013.
Salary: Current and Expectations
Across the MENA region,67% of professionals surveyed indicate they receive a basic salary plus benefits, such as housing allowance, transport, children’s education and more; in Oman, this figure jumps to78%. For four in10 respondents who receive a basic salary along with other benefits, the basic salary consists of51-75% of their monthly salary.7% state that they also receive commission on top of their basic salary and benefits. The preferred pay structure in Oman is a100% fixed-pay structure (favoured by54% of respondents in Oman).
A large proportion of Oman is underwhelmed by their income, with35% claiming to be dissatisfied with their pay, compared to just6% who are highly satisfied with what they receive.31% believe that men and women receive equal pay for doing the same work. A significant seven out of10 (66%) professionals surveyed believe that the salary they receive is less than what other companies in their industry pay.
In2013,27% of Oman respondents say they did not receive a salary raise. For those who did receive a raise,49% were discontent with what they received while50% were satisfied. Two in10 Oman respondents (22%) do not expect to receive an increase in2014, though44% anticipate receiving a pay rise of up to15%.
In Oman, the most common benefits received by employees are personal medical insurance, personal annual air ticket and family medical insurance. Bonuses are received by47% of respondents. For34% of Oman respondents, foregoing part of their salary to work flexible hours is something they would consider.
According to60% of Oman respondents, their company does not pay for any overtime they do. Companies that do pay for extra office hours, for the most part, pay a normal hourly rate, though26% pay time and a half. Only24% of companies in Oman pay employees for time spent doing civil service.
Loyalty
Three in10 Oman respondents state that loyalty to their company is not based on the salary they receive. Rather, they consider that their loyalty is based on opportunities for long-term career advancement (39%), their line manager (34%), and senior management (40%).
End of Service Benefits
In Oman,59% of respondents receive an end-of-service gratuity, while13% receive a pension upon retirement.23%, however, receive neither, though59% of those who do not currently receive a pension state that they are interested in a pension plan to which they would contribute a percentage of their basic salary, in addition to company contributions.
Insurance
The majority of Oman respondents (68%) have access to medical insurance for themselves through their company, and40% have access to insurance for their dependents, too. For the most part, companies are responsible for payment on medical insurance claims – both for personal and dependents. Although, a further two fifths of respondents share responsibility of medical insurance payments with their employer. Insurance plans are active from the first day of hire according to53% of respondents in Oman.
Cost of Living, Quality of Living, and Savings
According to87% of Oman respondents, the cost of living increased in2013, with18% claiming it rose by more than20%. Increases have mostly affected the cost of rent, food &beverages, and utilities–78% of respondents expect that it will continue to rise throughout the year. The rising cost of living has also limited respondents’ ability to save;21% in Oman claim to have saved nothing from their monthly salary.
Despite this,51% of Oman respondents believe that they are better off now, in terms of quality of life, than they are in comparison to their generational peers in their country of residence.
57% of Oman respondents intend to look for a better job in the same industry in the next12 months, and79% believe that salaries in Oman are on the rise. This is considered to be due to inflation and the rising cost of living, as well as opportunity and economic growth, and pay rises in the public sector. Factors observed by Oman respondents which are inhibiting salary increases include poor economy, poor corporate performance/decreased profitability, and employer-friendly laws.15% of respondents believe there is an excess of talent in Oman.
“The results of the2014 Bayt.com MENA Salary Survey suggest that salaries are not consistently keeping pace with the rising cost of living in Oman. This seems to be a general trend across the MENA region that companies must address if they want to win today’s increasingly intense war for talent,” said Suhail Masri, VP of Sales, Bayt.com. “The Bayt.com MENA Salary Survey is an annual study that reveals the levels of satisfaction with salaries across the Middle East and North African region. This information is vital for employers and job seekers in the region alike; it helps them benchmark and anticipate their unique salary situations and make informed, empowered work and life decisions.”
“Overall, employees across the MENA region seem rather dissatisfied with their salary – with a significant minority unable to save anything of their wages. Undoubtedly, employees feel short changed, and an increase in cost of living and a presumption other employers pay more may mean we see significant churn over the next year as employers struggle to match employees expectations,” said Sundip Chahal, CEO of YouGov MENA.
Financial Investments and Expenses
Just18% of Oman respondents make regular investments, i.e. at least once a month, with the most popular investment product being investment plans.
The majority (81%) of respondents in Oman eat out at least a few times a month, with27% choosing to eat out a few times a week and a further19% eating out on a daily basis. Dining out is considered to be the top monthly expense by34%, followed by travel (26%) and entertainment (26%). Holidays taken by Oman respondents in the last12 months have involved travel to international destinations (25%), though33% have had vacations within Oman.29% of respondents have not been on holiday in the past12 months.
About the Respondents
18% of Oman respondents have worked within their current career path for less than3 years;27% have worked in it for3-6 years, while20% have remained in the same career for7-10 years. Five in10 (50%) have been with their current employer for2-5 years, compared to26% who have been with them for1 year or less. On average, most respondents spend no more than3 years with an employer.
The majority of respondents (39%) have up to five people reporting to them, either directly or indirectly, and consider themselves to be at a ‘fairly senior’ level, or midway in terms of their seniority (69%).
Data for the2014 Bayt.com MENA Salary Survey was collected online from April20-28,2014. Results are based on a sample of9,537 respondents. Countries that participated are the UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.