39% of KSA respondents expect pay rise of up to 15% in 2014

42% dissatisfied with current salary, with 40% receiving no pay rise last year

A new survey has revealed that expectations of a pay rise in 2014 are high in Saudi Arabia, though 40 percent of professionals surveyed confirm they didn’t receive a pay rise in 2013.

A new survey has revealed that expectations of a pay rise in 2014 are high in Saudi Arabia, though 40 percent of professionals surveyed confirm they didn’t receive a pay rise in 2013.

The 2014 Bayt.com MENA Salary Survey was conducted by Bayt.com, the Middle East’s number one job site, and leading market research agency, YouGov.

Salary: Current and Expectations

Across the MENA region, 67 percent of professionals surveyed indicate they receive a basic salary plus benefits, such as housing allowance, transport, children’s education and more; in Saudi Arabia, this figure climbs up to 78 percent. For four in 10 respondents who receive a basic salary along with other benefits, the basic salary consists of 51-75 percent of their monthly salary. Ten percent state that they also receive commission on top of their basic salary and benefits. The preferred pay structure in Saudi Arabia is a 100 percent fixed-pay structure (favored by 52 percent of respondents in Saudi Arabia).

A large proportion of KSA is underwhelmed by their income, with 42 percent claiming to be dissatisfied with their pay, compared to just 4 percent who are highly satisfied with what they receive. Fourteen percent believe that men and women receive equal pay for doing the same work. A significant seven out of 10 (68 percent) professionals surveyed believe that the salary they receive is less than what other companies in their industry pay.

In 2013, 40 percent of Saudi respondents say they did not receive a salary raise. For those who did receive a raise, 54 percent were discontent with what they received while 46 percent were satisfied. Over a quarter of KSA respondents (27 percent) do not expect to receive an increase in 2014, though 39 percent anticipate receiving a pay rise of up to 15 percent.

In Saudi Arabia, the most common benefits received by employees are personal medical insurance, personal annual air ticket and housing allowance. Bonuses are received by 31 percent of respondents. For 32 percent of respondents in Saudi Arabia, foregoing part of their salary to work flexible hours is something they would consider.
According to 56 percent of KSA respondents, their company does not pay for any overtime they do. Companies that do pay for extra office hours, for the most part, pay a normal hourly rate, though 60 percent pay time and a half. Only 13 percent of companies in Saudi Arabia pay employees for time spent doing civil service.

Loyalty

Three in 10 KSA respondents state that loyalty to their company is not based on the salary they receive. Rather, they consider that their loyalty is based on opportunities for long-term career advancement (40 percent), their line manager (48 percent), and senior management (42 percent).

End of service benefits

In Saudi Arabia, 60 percent of respondents receive an end-of-service gratuity, while 11 percent receive a pension upon retirement. 23 percent, however, receive neither, though 47 percent of those who do not currently receive a pension state that they are interested in a pension plan to which they would contribute a percentage of their basic salary, in addition to company contributions.

Insurance

The majority of KSA respondents (77 percent) have access to medical insurance for themselves through their company, and 54 percent have access to insurance for their dependents, too. For the most part, companies are responsible for payment on medical insurance claims — both for personal and dependents. Although, a further two fifths of respondents share responsibility of medical insurance payments with their employer. Insurance plans are active from the first day of hire according to 49 percent of respondents in Saudi Arabia.

Cost of living, quality of living, and savings

According to 85 percent of KSA respondents, the cost of living increased in 2013, with 31 percent claiming it rose by more than 20 percent. Increases have mostly affected the cost of rent, food &beverages, and education–78 percent of respondents expect that it will continue to rise throughout the year. The rising cost of living has also limited respondents’ ability to save; 30 percent in Saudi Arabia claim to have saved nothing from their monthly salary.

Despite this, 48 percent of KSA respondents believe that they are better off now, in terms of quality of life, than they are in comparison to their generational peers in their country of residence.

Fifty-seven percent of KSA respondents intend to look for a better job in the same industry in the next 12 months, and 63 percent believe that salaries in Saudi Arabia are on the rise.

This is considered to be due to inflation and the rising cost of living, as well as opportunity and economic growth, and intense competition for attracting and/or retaining talent.

Factors observed by KSA respondents which are inhibiting salary increases include poor economy, employer-friendly laws, and poor corporate performance/decreased profitability.

Twelve percent of respondents believe there is an excess of talent in Saudi Arabia.

Suhail Masri, VP of Sales, Bayt.com, said: “The results of the 2014 Bayt.com MENA Salary Survey suggest that salaries are not consistently keeping pace with the rising cost of living in Saudi Arabia. This seems to be a general trend across the MENA region that companies must address if they want to win today’s increasingly intense war for talent.”

Suhail Masri said: “The Bayt.com MENA Salary Survey is an annual study that reveals the levels of satisfaction with salaries across the Middle East and North African region. This information is vital for employers and job seekers in the region alike; it helps them benchmark and anticipate their unique salary situations and make informed, empowered work and life decisions.”

Sundip Chahal, CEO of YouGov MENA, said: “Overall, employees across the MENA region seem rather dissatisfied with their salary – with a significant minority unable to save anything of their wages. Undoubtedly, employees feel short changed, and an increase in cost of living and a presumption other employers pay more may mean we see significant churn over the next year as employers struggle to match employees expectations,” said Sundip Chahal, CEO of YouGov MENA.

Financial investments and expenses

Just 12 percent of Saudi respondents make regular investments, i.e. at least once a month, with the most popular investment product being property.

The majority (82 percent) of respondents in KSA eat out at least a few times a month, with 30 percent choosing to eat out a few times a week and a further 23 percent eating out on a daily basis.

Dining out is considered to be the top monthly expense by 36 percent, followed by travel (24 percent) and entertainment (20 percent ).

Holidays taken by Saudi respondents in the last 12 months have involved travel to international destinations (26 percent), though 27 percent have had vacations within Saudi Arabia. Thirty-four percent of respondents have not been on holiday in the past 12 months.

About the respondents

Twenty-five percent of Saudi respondents have worked within their current career path for less than 3 years; 28 percent have worked in it for 3-6 years, while 20 percent have remained in the same career for 7-10 years. Four in 10 (43 percent) have been with their current employer for 2-5 years, compared to 31 percent who have been with them for 1 year or less. On average, most respondents spend no more than 3 years with an employer.

The majority of respondents (33 percent) have up to five people reporting to them, either directly or indirectly, and consider themselves to be at a ‘fairly senior’ level, or midway in terms of their seniority (68 percent).

Data for the 2014Bayt.com MENA Salary Survey was collected online from April 20-28, 2014. Results are based on a sample of 9,537 respondents.

Countries that participated are the UAE, Saudi Arabia Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.

 

 

 

 



Gas developers struggle with high costs and low margins
Sipchem, Sahara blame regulatory framework for merger collapse

Comments

comments

%d bloggers like this:
Powered by : © 2014 Systron Micronix :: Leaders in Web Hosting. All rights reserved

| About Us | Privacy Policy | Terms of Use | Disclaimer | Contact Us |