DOHA COMPANIES in Qatar and other GCC countries anticipate a pay hike in 2013, well above the inflation forecasts for the region, a survey has said.
According to the Mercer’s 2012 Total Remuneration Survey (TRS), the future looks bright for the GCC workforce, as companies across the region predict salary hikes for employees during the coming year.
The survey conducted in the six GCC markets highlighted that more than 70 percent of surveyed organisations are anticipating growth within various departments as they look to accelerate recruitment in 2013.
Firms in Qatar anticipate 5.6 percent pay hike next year, while the inflation in the country is expected to be around 4 percent, the survey reveals.
Similarly, firms in Saudi are hoping for a 6 percent hike in 2013, while in the UAE, companies hope for a 5 percent salary rise.
At 4.4 percent, inflation will be highest in Saudi in 2013, while at 1.7 percent, it will be lowest in the UAE.
The Mercer survey pointed out that aggressive recruitment strategies are on the anvil with 60 percent of the companies surveyed looking to increase headcount by the end of the year and 70 percent in 2013.
On the subject of recruiting nationals, the survey said efforts to attract and retain local personnel remains at the existing level in the UAE and Saudi Arabia.
In Qatar, the efforts to recruit nationals are expected to be come more vigorous with a 10 percent jump in the number of respondent firms reporting the implementation of Qatarisation policies within their firms.
Mercer’s IPS Business Leader in the Middle East Zaid Kamhawi said that while the results represent good news for the Gulf’s positioning relative to other parts of the world, companies are still cautious about the impact of regional and global events on local economic activity.
“Broadly, economic activity across the Gulf region has been solid in most areas but the social, political and economic transformation under way in some parts of the broader MENA region mean that business leaders are still exercising caution,” he commented.
“Multinational firms, headquartered in Europe or the US and with Middle East operations, perceive the MENA region as a bright spot for investment and as their key growth regions,” he said.
“As a result of this, and as we tend to see in emerging markets, companies are competing to attract and retain valuable talent in the foreseeable future.” He further said that the consumer goods industry is highly driven by retention strategies and the provision of monetary incentives as a means of acquiring employees with specific skill sets, particularly at mid-level sales positions. This is an area in which we expect to see a slightly higher salary increase.
The annual Mercer survey covers the whole range of sectors from consumer goods to energy, technology, durables and manufacturing.
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