Enabling and encouraging temporary work contracts is the best response to the global economic downturn, the results of a recent poll conducted by the Middle East's number one job site, Bayt.com, have revealed. With increasing job losses and labour market insecurities being widespread across the region,59% of professionals across a wide spectrum of industries and jobs have confirmed this statement while almost a third -32% - didn't consider it as a way to deal with the current economic situation in the Middle East.
When asked whether they thought that extending work hours and increasing responsibilities of existing human resources is a good response to the crisis, the majority of respondents -54% - disagreed, while37% of those surveyed approved.
The 'reactions to economic conditions' online poll series conducted by Bayt.com sought to gauge what measures employees feel are most appropriate to address the challenges of the current economic downturn, and to what extent employees would be willing to adapt to a salary reduction regardless of whether they hold jobs in Dubai, jobs in Abu Dhabi, jobs in KSA, jobs in Kuwait, jobs in Qatar or jobs anywhere else in the region.
According to the poll results, the majority of respondents -55% - felt that organizational pay cuts are not the way forward for organizations to cope with the economic crisis. However, more than a third of the respondents did consider pay cuts a good idea, at36%
"It is very interesting to see what respondents consider to be the best measure for dealing with the current economic crisis, and to compare this to what the trends in the Middle East jobs marketplace actually are. Currently, the majority would prefer that temporary contracts are implemented as opposed to a greater workload or job cuts, which is a likely reaction to the fact that companies are still favouring to cut their staff numbers rather than take other measures to stimulate the GCC or greater Middle East/ North Africa job market – a matter deemed wholly unfavourable by the region's professionals," stated Amer Zureikat, Bayt.com's regional manager
The poll went on to analyze the respondents' willingness to absorb a paycut in their salaries, should their employer offer them such an option instead of redundancy. Interestingly,55% of professionals responding stated that they would accept none, preferring instead to lose their job than to have their salary reduced. Amongst the respondents,17% agreed that they would tolerate a salary/pay cut of up to10 percent, while10% of respondents stated they were ready to accept a salary/pay cut of up to20 percent of existing salary. Only5% of respondents would still keep their job with a pay cut of up to50 percent, while7 percent are willing to accept an unlimited pay cut provided they can retain their job.
"It is very clear that the pace of economic growth in the Middle East region has been slowing down, and by asking the people that are most affected by it - the professionals right in the heart of the labour market - it gives a very good indication of the true extent of the problem, on a personal and individual level," said Zureikat. "While55% of people said that they would not entertain the idea of a cut in their salary,45% of people would - albeit to varying degrees. What the figures show is that because recurrent job losses and market instabilities pose such a threat to job security in many organizations and countries, more and more people are realizing that one of the only solutions to keep their job secure in the near and intermediate term, may be to agree to a salary reduction."
The polls concluded by asking what respondents feel is the most important action that should be taken by policymakers to stimulate the economy in their country of residence:14% agreed that a change in laws and regulations would be most efficient, closely followed by private sector productivity increases at12% and more government transparency and communications at11%.
A fairly low8% thought that tax cuts were a good idea, while5% believe government spending increases were the best option, followed by2% that believed the way forward in the crisis was economic protectionism. Unsurprisingly,41% of the respondents believed that a mixture of all factors was the best idea for dealing with the crisis.
Zureikat explained the relevance of the data stating that "Conducting such research can be of significant benefit to all employers, HR practitioners and recruitment websites specifically those catering to the Middle East's top professionals, by providing an up-to-date and representative overview of how people view the current crisis and how they personally believe it can be dealt with. It gives employers certainly - and domestic employment markets in general - the opportunity to take the issues and concerns that the respondents highlight, and use them to their advantage; for driving stability and sustainability throughout the crisis, and long after the crisis has subsided in the region."
Data for the 'reactions to economic conditions' online poll series was collected online between the period of March29th and April27th2009 with a total of11,725 respondents from across the Middle East. This and other Middle East human resources research and current jobs information pertaining to top jobs in Dubai, Abu Dhabi, the UAE, Kuwait, Qatar, KSA, Bahrain, Morocco, Egypt, Lebanon, Jordan and other Middle East and North Africa job markets is available online on Bayt.com.