WORK FOR IT

In the United Arab Emirates it used to be the case that country of origin would in part determine how much of a salary increase an employee would receive. However, this year it seems expats may find their remuneration tied to performance more closely than ever before.

A Gulf Talent report, has suggested the increasing trend towards performance pay is now narrowing the salary gap that had characterised the UAE employment market for some years.

“I think you will see companies slowly moving away from the pay difference of nationalities and begin to implement internal equity programmes,” said Shane Phillips, MENA Regional Practice Leader, Financial & Professional Services at Stanton Chase. “The downturn has really taught Boards the importance of executives who can actually deliver results, so I would predict pay hikes are going to those individuals who can deliver growth in a contracting market.” 

Economic conditions are undoubtedly behind the move with companies keen to see salaries directly linked to performance rather than anything else. Cliff Single, Commercial Manager at BAC Middle East says the movement towards performance related pay began after the recession of 2009. In addition the stronger growth among Asian countries in comparison with their Western counterparts has also driven salaries closer together. 

Mr Phillips believes that both Asian and British expats will be valued this year. “Sixty seven per cent of white collar executives are Asian in the UAE, so I am sure you will see Asians with great pay increases,” he said. “The British expat is also highly valued in the Middle East.”