Employees in the UAE should expect an increase of 4.5 percent on average in 2020. A big number of UAE firms are set to raise their salaries in 2020. This is only possible due to how healthy the economy is. 45 percent of companies will increase their employees while 52 percent wants to maintain their staff base and only 3 percent are planning to decrease their staffing level. Economic growth is said to be at 2.5 percent for the next five years. Statistics showed that inflation is lower than income increases. This is in all, a positive situation.
The highest percent of salaries would be on a 4.6 percent increase in the sciences like health care and pharmaceuticals while the energy industry is likely to see just a 3.7 percent increase. 4.5 percent and 4 percent are for technology jobs and the consumer goods industry. Survey was also carried out on voluntary and involuntary turnover rates.
Voluntary turnover rate is when an employee chooses to leave a company and it increased over 2 percent compared to previous years. Involuntary turnover rate is when an employee is sacked or fired and this also increased over 4 percent as compared to previous years.
All the points above clearly show how good the job market is. 2016 was a year where oil price dropped hence giving organizations no excuse but to downsize. So the involuntary turnover was higher back in 2016. 2020 would ensure more opportunities for employees to get proper jobs.
Saudi Arabia has in recent years enjoyed a good decrease in unemployment and inflation rates which speaks well of the workforce and which also added to the growth of its GDP. The GDP has been further forecasted to increase more. There has been an increase from 7 percent in 2018 to 9 percent in 2019. This is indicative of a well-structured job market.
52 percent of organizations in Saudi Arabia have confirmed that they will increase their number of employees while 38 percent said they would keep their numbers the same in the year 2020. 2020 seems like a year where there will be deliverable and an upsurge in the job market.
Four out of five employees said workplace wellness would allow them to choose between two organizations. Saudi Arabia employers have sought ways to make employees deliver maximally while increasing profits. Organizations are set to build circles and system that would cater for every generation of its workforce, increase their wellness, whilst improving their talents via workplace challenges.
Beyond this, 2020 would see employers and employees’ chemistry go up. There would be good understanding between parties. In its bid to improve the workplace, Saudi Arabia is increasing salary and identifying young leaders so as to keep them at bay.
The overall idea isn’t just to increase salaries come 2020 but to see an improved organization, improved job market and ultimately, better country. Employers are also going to be more intense about personal and professional goals for their employees.
Useful Resources for 2020
MBA in Dubai – 2020