49% of companies operating in the UAE intend to set budgets that include an increase in the salaries of their employees during their annual salary reviews for this year, according to a survey conducted by the British “AON” insurance and professional services company for a sample of 150 companies operating in the state in various industries.
According to the survey results, 68% of companies operating in the country reported that they conducted annual salary reviews of their employees. The results showed that the actual and planned increases in the budget for the majority of companies in the country for this year ranged between 2% and 6%.
Robert Richter, Head of Middle East Data for Human Capital Solutions at AON, said: “The post-Covid-19 labor market conditions are placing tremendous pressure on companies in terms of how they deal with this challenging time.
He added: In order to best meet the current challenges, there is an increasing need to review employee salaries to ensure the ability to attract and hire talent.
According to the results of the survey, 21% of companies in the UAE plan to increase the salaries of their employees in 2022 by between 5% and 8%, while 24% of companies intend to increase the salaries of their employees this year by 9%, in light of the improvement in the labor market. In the country, against the backdrop of “Expo 2020 Dubai” and the success of the UAE government in dealing with the pandemic.