Dubai is becoming less attractive for skilled employees
A survey in the UAE has revealed that Dubai is becoming less attractive for skilled employees due to the rising inflation.
The survey conducted by Bayt.com, a leading recruitment portal in the Gulf, and YouGov Siraj, an online research company, with over 50 employers and nearly 400 employees — expatriates and nationals — disclosed that 66 per cent of the employers feel that Dubai is becoming less attractive due to the rising inflation which is adversely affecting their chances of attracting the right talent.
The results, which were disclosed yesterday at the Dubai Economic Council (DEC) forum on The Future of Talent in Dubai, also noted that the residents' challenges included "the high cost of living, high inflation fuelled by obnoxious rents, falling dollar peg, compromising lifestyle to tackle inflation, traffic and parking woes".
Nevertheless, residents liked the emirate for its unprecedented growth, tax-free and crime-free environment.
On the employment front, however, the survey found that an overwhelming 90 per cent of human resources managers in private and public companies think recruiting employees is getting increasingly tougher than it was three years ago.
Some issues in finding the right talent include difficulty in hiring the right people and not being able to afford current salary levels. The biggest problem they face is finding people with leadership skills and passion for work. However, 68 per cent of organisations are ready or getting ready to address talent shortages.
The survey found that UAE nationals produce by far the highest turnover and are the toughest to retain, while Asian expats are the most loyal. They are also the second most likely to switch jobs. Well-qualified and good leadership skills is what employers expect, noted the survey.
Experts, on the other hand, observed at the forum that unless wage discrepancies between the private and public sector are not quickly tackled, companies in the private sector would continue to find it hard to lure young locals to work with them.
Dr Samer Kherfi, Assistant Professor of Economics at the American University of Sharjah, who gave a presentation on the wage structure in Dubai, said, "There is a large gap between the public and the private sector wages, where the private sector pays lesser. For equity purposes, Emiratis are paid more in the public sector. Besides, the pay structure is not linked to productivity."
He noted these are the reasons why the private sector finds it difficult to get Emiratis. "A lot of well-educated Emirati women are not part of the labour force and if they are, it could help deal with issues of labour shortage," he noted.
Khalid bin Zayed Al Nahyan, Chairman of the Executive Committee, DEC, said that if the skewed balance has to be corrected, incentives in the private sector have to be restructured and balanced. He noted that pay scales should match productivity, which needs to be assessed.
Dr John McHale, Associate Professor of Economics and Toller Family Research Fellow at the Queen's School of Business, Ireland, said, "The competition for talent is increasing in Dubai. The strength of the emirate is that it is employer driven. Highly skilled professionals are coming here to work."
/Khaleej Times/
The survey conducted by Bayt.com, a leading recruitment portal in the Gulf, and YouGov Siraj, an online research company, with over 50 employers and nearly 400 employees — expatriates and nationals — disclosed that 66 per cent of the employers feel that Dubai is becoming less attractive due to the rising inflation which is adversely affecting their chances of attracting the right talent.
The results, which were disclosed yesterday at the Dubai Economic Council (DEC) forum on The Future of Talent in Dubai, also noted that the residents' challenges included "the high cost of living, high inflation fuelled by obnoxious rents, falling dollar peg, compromising lifestyle to tackle inflation, traffic and parking woes".
Nevertheless, residents liked the emirate for its unprecedented growth, tax-free and crime-free environment.
On the employment front, however, the survey found that an overwhelming 90 per cent of human resources managers in private and public companies think recruiting employees is getting increasingly tougher than it was three years ago.
Some issues in finding the right talent include difficulty in hiring the right people and not being able to afford current salary levels. The biggest problem they face is finding people with leadership skills and passion for work. However, 68 per cent of organisations are ready or getting ready to address talent shortages.
The survey found that UAE nationals produce by far the highest turnover and are the toughest to retain, while Asian expats are the most loyal. They are also the second most likely to switch jobs. Well-qualified and good leadership skills is what employers expect, noted the survey.
Experts, on the other hand, observed at the forum that unless wage discrepancies between the private and public sector are not quickly tackled, companies in the private sector would continue to find it hard to lure young locals to work with them.
Dr Samer Kherfi, Assistant Professor of Economics at the American University of Sharjah, who gave a presentation on the wage structure in Dubai, said, "There is a large gap between the public and the private sector wages, where the private sector pays lesser. For equity purposes, Emiratis are paid more in the public sector. Besides, the pay structure is not linked to productivity."
He noted these are the reasons why the private sector finds it difficult to get Emiratis. "A lot of well-educated Emirati women are not part of the labour force and if they are, it could help deal with issues of labour shortage," he noted.
Khalid bin Zayed Al Nahyan, Chairman of the Executive Committee, DEC, said that if the skewed balance has to be corrected, incentives in the private sector have to be restructured and balanced. He noted that pay scales should match productivity, which needs to be assessed.
Dr John McHale, Associate Professor of Economics and Toller Family Research Fellow at the Queen's School of Business, Ireland, said, "The competition for talent is increasing in Dubai. The strength of the emirate is that it is employer driven. Highly skilled professionals are coming here to work."
/Khaleej Times/
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