Survey indicates growing discontent among Gulf workers

A combination of the falling dollar and the rising cost of living across the GCC has led to unprecedented levels of discontent among regional employees, according to a study released this week.

This is leading to more and more employees to not only consider switching companies, but also explore opportunities in new industries and other countries both in the region and beyond.

The online survey, conducted by the Middle East's number one job site Bayt.com in conjunction with market research specialists YouGovSiraj, polled 15,000 employees in the six GCC countries across 20 industry sectors, including automotive, finance, advertising, IT and pharmaceuticals.

The study found that employees in the UAE and Qatar were the highest paid last year while Qatar, the UAE and Bahrain also enjoyed the highest annual pay rises in the region, with Qatar averaging 16 per cent a year and the UAE and Bahrain both coming in at 17 per cent compared to 12 per cent in Saudi Arabia, the region's lowest average.

Across the GCC and across sectors, salary hikes were far outstripped by perceived cost of living increases. The disparity was most pronounced in Qatar, with a perceived average cost of living spike of 38 per cent, 22 per cent higher than salary increases. In Dubai, living expenses were alleged to have risen by 37%, representing a gap of 20%.

The widening shortfall between salary increases and the cost of living has led many to consider dramatic steps. In Qatar, 50% of respondents said increases in household expenses have led them to consider relocating to another country or returning home. Oman came in second, with 47 per cent, while Kuwait saw the lowest numbers of professionals looking to leave the country, at 32%. In the UAE, 37% had thought about moving abroad.

In the UAE employers are taking the hit of this economic shortfall, with many employees considering job migration to improve finances. Forty per cent of UAE workers said rising expenses might force them to look for a better job in the same industry and 24% said they would consider switching to another industry. In Saudi Arabia, corresponding figures were 45 and 19%. Only 15% of people in Qatar and 20% in Oman said they would consider changing industries.

"In terms of perceived cost of living increases and what this is doing to retention rates, the numbers are cause for concern," said Rabea Ataya, CEO, Bayt.com.

"Around 70% of the survey's respondents said they've held two or more jobs in the past five years. On average, people change jobs about once every two years. We also found that loyalty improved as salaries increased. Employers who do not close the gap between earnings and living expenses will have difficulty attracting and retaining people."

He added, "On a more positive note, a fair number of people tend to view their situation as being better than their peers, 40% of people in the UAE say they believe this, 46% in Qatar and 38% in Saudi Arabia. People are generally more content when they feel their lives measure up well against their peers, so how businesses reward employees in relation to each other can have almost as much of an impact as overall salary rates. A lot of human resource management is about perceptions."

Such insights, said Nassim Ghrayeb, CEO of YouGovSiraj, underscored the importance of supplementing broad economic indicators with individual surveys.

"The value of research like this is that it gets to the heart of what people think and feel about their employment status and about their finances, providing a grass-roots understanding of people's beliefs and concerns and allowing employers to act accordingly."

He added, "The story here is not just about employees. The pinch is also being felt by businesses themselves, with many workers planning to move on. These results reveal just how much of a headache the spiralling cost of living and weak dollar is having on employers, who also need to consider their margins."

In terms of industry, banking and finance topped the monthly salary scale and those in education fared the worst. Banking and finance also enjoyed some of the most generous raises in 2007, with hikes averaging 18%.