Source: Arab News
Organizations in Saudi Arabia plan to increase employee salaries two percent above inflation in 2012. The latest Salary Budget Planning Report for Europe, the Middle East and Africa (EMEA) found that salaries for Saudi employees were predicted to increase by six percent against a prevailing inflation increase of 4.1 percent.
Salary increases are set to be consistent across all the Gulf states at 5-5.5 percent. These increases will feel more significant in UAE and Bahrain, where inflation is currently running at a lower rate.
The results were revealed today at the Towers Watson Middle East HR forum held in Dubai. The event saw more than 100 HR professionals from various sectors across the region come together to discuss current HR issues and hot topics.
The survey also revealed that high performers in the workplace will have an added advantage when it comes to salary increases, as more than 75 percent of the companies surveyed have allocated a large portion of their 2012 budget to high-performing employees.
Ahmad Waarie, managing consultant, Towers Watson, said: “The results of Towers Watson’s Salary Budget Planning Report clearly show that job market trends across the GCC point to a positive and steadily growing market. The last few years have been a tough one for all economies across the globe. While many markets are still grappling under the weight of the crisis, the Gulf region continues to remain a lucrative one for expansion, thus attracting talent and new investments from across the globe. Additionally, we are seeing an increase in the number of initiatives undertaken among organizations to nurture and retain local talent.”
Outside of the region, salary increases are set to be consistent across Europe’s largest economies – Germany, France, UK, Spain and Italy – at or around 3 percent. Russian companies expect to grant salary increases of 10 percent on average against an inflation rate for 2012 of 5.9 percent, while South African employees will see pay increase by an average of 7.5 percent.
Towers Watson’s Salary Budget Planning Report for Europe, the Middle East and Asia, published in March 2012, incorporates pay data from 4,200 companies across 60 countries, and was submitted for the twelve-month period ending Jan. 30, 2012.