GCC Employment Trends Unveiled - Hays Salary Guide 2024

The Gulf region is currently going through a transformative era influenced by several megatrends shaping the future of work. Amidst a vibrant, complex, and highly competitive employment market, the emphasis is on skilled talent, nationalisation programmes, evolving work habits, and a surge in upskilling investments.

Despite a cautious hiring approach in 2023, with a slight decrease in organisations reporting headcount increases (62% compared to 67% in 2022), the market witnessed robust growth. Notably, the Banking & Financial Services sector demonstrated exceptional dynamism, with 36% of organisations expanding their workforce by over 10%.

Looking ahead to 2024, the hiring landscape beams with optimism, especially within the Construction & Property sector, anticipated to experience healthy growth driven by a large project pipeline. This growth, most prominent in Saudi Arabia and the UAE, underscores the region's strategic focus on infrastructure development.

However, the quest for talent isn't without its challenges. While there's an influx of job seekers, the market faces a paradoxical scenario where 41% of employers report a shortage of skilled professionals, and another 41% mention an increase in candidate applications. This dichotomy highlights the critical need for strategic hiring practices, focusing on not just attracting but also retaining the right talent.It’s therefore not surprising to learn that the top three HR investment focus areas for the year include employee training programmes, employee retention and employee recruitment.

Salary trends also reflect a positive trajectory, with a modest improvement between 2022 and 2023 and expectations of continued salary increments in 2024. Interestingly, the Legal sector stands out for the highest rate of salary increases, indicating the high demand for legal expertise in the region.

Yet, there exists a noticeable disparity in the perception of benefits between employers and professionals, signaling a need for enhanced communication and transparency. To bridge this gap, employers must more effectively articulate the value of their benefits package, especially as professionals highly value benefits such as air ticket allowances, child education allowances, and flexible working arrangements.

As the narrative of the global 'return-to-office' mandate unfolds, the Gulf region has experienced a nuanced transition towards office-based work in 2023, driven predominantly by trends in Saudi Arabia. Despite predictions of a widespread 'working model migration,' the shift has been moderate, with a notable emphasis on preserving flexibility.

A closer examination reveals that 55% of Gulf employers now favor a fully office-based model, marking a slight increase from the previous year. This trend is most pronounced in Saudi Arabia, where 68% of employers advocate for full-time office attendance. Contrastingly, the UAE shows a resilient inclination towards remote or hybrid options, reflecting a regional diversity in working models.

In an era where flexibility is king, professionals across various fields, notably Legal, HR, and Marketing, express a strong preference for hybrid and remote work as their top-valued benefit. This underscores a broader evolution in work habits, with flexibility becoming a cornerstone of modern employment.

However, the landscape is not without its challenges. A projected increase in employee turnover highlights the escalating battle for talent, with 31% of Gulf professionals considering a change in 2023. The reasons? A lack of career development and progression opportunities. Organizations that prioritize growth and internal mobility will likely excel in retaining their workforce.

In the quest for talent, employers show a preference for experienced professionals with local market knowledge, emphasizing the importance of cultural fit and soft skills alongside technical qualifications.

The spotlight on nationalization programs, particularly Emiratisation and Saudization, illustrates a growing emphasis on hiring local talent, reflecting national priorities and policy directions.

Meanwhile, AI's role in the workplace remains a topic of division among employers, balancing between its potential to enhance productivity and concerns over security and job displacement.

In conclusion, as the Gulf region strides towards growth and competitiveness, the focus remains on harnessing skilled talent through strategic recruitment, competitive compensation, and comprehensive benefits. This approach is essential for organizations aiming to thrive in an increasingly dynamic and challenging market landscape.

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