The2013 Bayt.com MENA Salary Survey, conducted by Bayt.com, the Middle East’s number one jobsite, and YouGov, a research and consulting organisation, has revealed that67% of KSA respondents believe that their current salary is lower than that of other companies in their industry, with only4% stating a high level of satisfaction with their current remuneration. Eight in10 believe that the cost of living will continue to increase.
About the Respondents
A quarter of the survey’s KSA respondents (25%) have been in their current career path for up to three years. A third (32%) have spent up to one year with their current employer, while25% have been with them for four-seven years. Four in10 (40%) have one-five people currently reporting to them, and38% oversee six or more employees. The majority of survey respondents are either midway (37%) or fairly senior (32%) in their position.
Most KSA respondents have held either one (25%) or two (38%) jobs in the past five years. The majority claim that they spend on average between one-three years in a job, though29% held a position for at least six years.
The preferred pay structure in KSA is100% fixed-pay, according to51%, with the more preferable incentives being those that are performance-based (61%), or professional training and development courses (46%). Commission for business or revenue generated (27%) and holiday allowances or foreign trips (24%) are also popular.
Respondents’ Current Package
In terms of their current salary, a quarter of KSA respondents (25%) receive their basic salary only, while62% receive their basic salary plus benefits. A third (33%) state that51-75% of their salary package is their basic monthly salary. Additional benefits received from KSA companies include personal medical insurance (60%), housing allowance (49%), and personal annual air ticket (46%).
The majority (56%) of KSA professionals state medium satisfaction with their current salary, with only4% claiming high satisfaction.
Salary Comparisons and Expectations
The overwhelming sentiment in KSA is that the salaries received by respondents in their current companies are lower than other companies in their industry (according to67%), with40% claiming that they did not receive a raise in2012. The majority of those who did receive a pay increment were given1-5% (20%), but48% are unhappy with the amount received.
In2013, KSA respondents are torn with regards to receiving a raise:36% expect to receive up to15% and17% expect to receive more than15%, while26% do not expect anything.
Cost of Living and Savings
Half (53%) of KSA respondents state that their cost of living increased by more than15% in2012. They believe this is mostly due to rising food and beverage costs (82%), increased rents (77%), and education (42%). Eight out of10 (79%) believe that the cost of living will continue to rise in2013.
A third (31%) of KSA respondents save up to15% of their monthly personal income; a third (33%) repatriate15% or more.
“The results of the2013 Bayt.com MENA Salary Survey suggest that salaries are not keeping pace with the rising cost of living in KSA. This is a general trend across the Middle East that companies must begin to address; in doing so, they will be able to contribute to building employee loyalty and satisfaction, and will have the opportunity to reduce the number of employees looking to change jobs within the next year,” said, Suhail Masri, VP of Sales, Bayt.com. “The Bayt.com MENA Salary Survey is an annual study that reveals the levels of satisfaction and factors effecting as much across the Middle East and North African region. This information is vital for employers and job seekers in the region, in order to gauge individual country situations and make informed, empowered career and life decisions.”
“Drivers of loyalty in particular are areas that employers in the region should consider, in order to slow what would seem to be a very transient workforce. Employees across the MENA region seem overall dissatisfied with their current packages and the rising cost of living; if the two do not draw closer, then there could be potential economic difficulties in the coming years,” said Sundip Chahal, CEO, YouGov.
Perception of Salaries in the Country and Quality of Life
When asked whether salaries are increasing or decreasing in their country of residence,33% of KSA respondents said that they are ‘increasing marginally’, with an additional23% stating they are ‘increasing moderately’, and17% state that they are staying the same. Factors causing salaries in KSA to increase are considered to be inflation and the rising cost of living (61%), growth in opportunities and economic growth (34%), pay rises in the public sector (18%), and economic growth and rising salaries in other countries (18%). Reasons for salaries not increasing are seen to be employer-friendly laws (41%), poor corporate performance (24%), and the poor economy (23%).
KSA respondents believe that they enjoy a standard of life that is mostly either on par with or above the standard of other residents in the same generation;40% state that their standard of living is ‘about average’,28% claim to be ‘somewhat better off’, and14% are ‘much better off’.
Half (56%) of KSA respondents intend to look for a better job in the same industry in the next12 months, while33% will look for a better job in a different industry and30% will look to other Middle Eastern countries for better jobs. This is likely because16% of respondents believe that there is an excess supply of talent in KSA.
Drivers of Loyalty
Loyalty to their current company is mostly driven by the salary KSA respondents receive –48% believe that their loyalty is70-100% linked to their remuneration. Other variables that strongly drive loyalty in KSA are the respondent’s line manager (39%), opportunities for long-term career progression (36%), and senior management (35%).
Data for the Bayt.com MENA Salary Survey, May2013, was collected online from April28 – May5,2013. Results are reported on a base of15,247 respondents. Countries that participated are UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.