Mercer: The result of the economic recovery after the pandemic

Emirati companies tend to increase the number of employees and raise salaries

The survey showed that companies need to reconsider their advantage strategies to attract talent.

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The Mercer survey of total wages for the year 2021 showed the need for Emirati companies to reconsider their compensation and benefits strategies, and modify them to attract and retain talent, expertise and competencies, especially with the increase in competitive talent as a result of the economic recovery that the country is witnessing after the "Covid-19" pandemic.

The survey, which was revealed by a subsidiary of Marsh & McLennan, a company specialized in providing professional services, indicated that employment initiatives are on the rise as a result of the promising economic recovery in the UAE, as companies have reported their intention to hire new cadres in various positions, More than was hired last year.

According to the survey, which included 599 companies in the UAE, the economic recovery contributed to changing the mentality of hiring and supporting talent, especially with the availability of more options for employees, which prompted employers to rethink the capabilities and capabilities of employees, their compensation strategies, and ways to preserve them, to mitigate The competition for talents and competencies, especially in high-demand groups of competencies, has doubled, in turn, during the post-Corona epidemic period.

Mercer's survey pointed to an increase in companies' focus on developing long-term incentive plans, especially for executives with high experience in specialized fields.

Andrew Zain, consultant and careers officer at Mercer in the Middle East and North Africa, said that there are many clear economic growth indicators, which are reflected in the increasing employment we are witnessing this year, and positive forecasts for the next year, noting that companies are working to focus priority on appointing the group of competencies that they It will support the growth of its business in the future, but the talent and competency sector is still developing, which causes quite a lot of competition.

He added that to attract and retain outstanding talent, employers and companies must keep pace with the growth rates of salaries and benefits at the market level, pointing out that there is great optimism in view of 2022, as many companies in the UAE expect an increase in wages, with the aim of attracting and maintaining the best talent and specializations. especially in competitive fields of work.

percentage increase

Mercer explained that the companies included in the survey of total wages for the year 2021 in the UAE, increased total salaries during the current year, by 3.6%, which is slightly less than the rate of increase in total salaries for 2019, which amounted to 4.5%, while it amounted to 3.8 % in the last year.

She added that, on the other hand, 14% of companies froze their salaries in 2020, while salaries fell by 10% in 2021. As for the next year 2022, the company expected that only 5% of companies would freeze the salaries of their employees.

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