The latest MENA Salary Survey conducted by Bayt.com, the Middle East’s number one jobsite, and YouGov, a research and consulting organisation, has revealed that despite58% of employees having been unhappy with their last pay rise, more than half believe that salaries in Jordan are increasing.
About the Respondents
A third of survey respondents (30%) in Jordan have spent4-6 years in their current industry, with almost a quarter (24%) having worked for their current employer for4-7 years. Four out of ten have between one and five people reporting directly to them, with a collective62% stating that they are midway in terms of seniority (32%), or at a fairly senior level, but not yet at the top (30%). Over the past five years,35% of respondents have held two jobs;31% have held one job, while the remainder have held three (20%) or more (12%). On average, most people will stay in a job for2 to3 years (30%), or six or more years (32%).
In Jordan, the preferred pay structure is entirely fixed-pay (52%), with popular incentives including those that are performance-based (52%), and professional training and development courses (42%).
Salary packages primarily (49%) consist of basic salary only, and while half of respondents are currently moderately satisfied with their salary,47% are dissatisfied.
The most popular Jordan salary benefits include personal medical insurance (47%), bonuses (31%), and family medical insurance (27%).
Salary Comparisons and Expectations
Six out of ten respondents in Jordan state that their current compensation is lower than that offered by other companies in the same industry. A third claim not to have received a raise in the last12 months. Those who did receive a raise are predominantly unhappy with what they received; collectively,58% claim to have been ‘unhappy’ or ‘very unhappy’. The majority of respondents (68%) expect to receive a raise in the coming year,16% of which are looking at an additional15% or more.
Cost of Living and Savings
According to85% of survey respondents, the cost of living in Jordan has increased in the last12 months (between December2010 – December2011), of these54% believe that it has increased by15% or more. Food and beverage is believed to have increased the most, according to five out of ten respondents, followed by rent (23%). A majority89% believe that the cost of living will continue to rise in the coming year. On average, respondents claim that they received a7.03% raise in the past year – while stating that their cost of living increased by an average of24.37%.
Only17% of respondents are able to save more than15% of their monthly salary, though53% have been unable to save anything at all. Only9% manage to repatriate more than15% of their salary.
“The survey’s results suggest that companies are still feeling the effects of the economic downturn, as they are generally not fully catering to the financial expectations of their employees or to their employees’ perceptions of the rising cost of living across the region,” said Suhail Masri, Vice President - Sales, Bayt.com. “Bayt.com’s in-depth surveys provide invaluable information about the MENA employment market, giving employers and job-seekers alike a realistic insight into the issues faced by their peers locally and elsewhere in the region.”
Perception of Salaries in the Country
More than half of survey respondents (a collaborative58%) believe that salaries in Jordan are increasing either ‘marginally’ (46% of respondents) or ‘moderately’ (12% of respondents). The most popular reason for this is perceived to be inflation and the rising cost of living (72%), followed by pay rises in the public sector (18%). Respondents meanwhile blame the poor economy (54%) and employer-friendly laws (29%) as being the top reasons for salaries not increasing.
Quality of Life
When comparing themselves to other people of a similar generation within Jordan,46% of respondents believe that their quality of life is about average, while22% believe that they are somewhat better off. More than a third (35%) of professionals believe that there is an excess of talent in Jordan.
To improve their situation,46% will look for a better job in the same industry, while another42% will look for a better job as an expat in a different Middle Eastern country.
“The survey respondents belief that there is an increase, however small, in salaries is a positive sign for the future. However, the fact that they also consider there to be an excess of talent suggests that unemployment levels are currently relatively high, and that competition for existing jobs is fierce,” said Sundip Chahal, CEO, YouGov.
Drivers of Loyalty
Loyalty to employers is directly linked to salary package, according to25% of Jordan respondents. However, a larger group of41% base their loyalty on their line manager. Opportunities for long-term career progression, senior management, colleagues and working environment, daily responsibilities, and training and development opportunities also factor highly.
Data for the Bayt.com Salary Survey March2012 was collected online from March1 to13,2012. Results are reported on a base of16067 respondents. Countries that participated are UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, Tunisia and Pakistan.