Don't expect a pay rise in 2016, says survey
If you were planning on approaching your boss for a pay rise any time soon, there may be some bad news. The 2016 Salary Guide from Morgan McKinley predicts that, due to the low oil price and general economic uncertainty across the world, most UAE salaries aren’t expected to rise.
“Since the outlook for 2016 is highly uncertain, some ‘doom and gloom’ is starting to creep into market sentiment,” Trefor Murphy, Managing Director at Morgan McKinley UAE, told 7Days. “Whilst the UAE economy is highly diversified and complex, it is still heavily reliant on natural resources, which affects all industries and professional disciplines.
Murphy added: “Undoubtedly the year ahead will be difficult for the UAE, but the government is making the right decisions to ensure that it balances its fiscal budgets and does not fall back into recession. We expect salaries to remain broadly flat during the coming year with workers more concerned about remaining employed than pushing for substantial pay increases.”
Due to the oil and gas market having a difficult year, the recruitment firm is expecting salaries to stay flat for much of the year, though they do say that there could be an increase in the second half of 2016 if the oil price goes up.
Some industries however, are expected to pick up slightly. Morgan McKinley predict that some sales and marketing roles could see an increase of up to six percent due to high levels of competition to get good candidates.
There is also a high demand for locals with relevant professional experience, as well as expat professionals with local experience. It’s expected that those who have niche jobs in the region could see their pay packets increase.
A recruitment drive is also predicted in areas such as pharmaceuticals, fast-moving consumer goods, and aviation manufacturing. The private sector construction industry is also one of the survey’s predicted growth areas, with some skilled professionals expected to see an increase of up to six percent.