Manager? Executive? Chances are you’ve either already had a small pay rise this year, or can expect one pretty soon. 2011’s trend is for companies to use their resources to reward those who create the most business – nothing new there of course, but with the global recession meaning resources are scarce, a much higher proportion than you might expect is ending up in the pockets of the executives and managers.
Mercer’s Pulse Survey senior associate Oxana Nagy says, ‘As a result of the need to keep costs low, companies are continuing to segment their employees and often weighting scarce resources towards “rainmaker employees” such as managerial staff.’
Across the Middle East and Europe, 2011 salary increases have so far been highest in the service, consumer and high-tech industries, and lowest among the financial services and energy organisations. And the good news for any expatriates hailing from Western Europe is that if you do get a pay rise, it’s likely to be substantially higher than if you were working in a similar position back at home.
Four hundred and six subsidiaries of multinational organisations were surveyed, and the average current budgeted salary increases they reported (including those who still have a salary freeze in place) was 5% in the UAE – this applied to executives, managers, professionals, white and blue collar workers. Compare this to 3% in the UK, 3% in the Netherlands, 2.3% in Switzerland and 2.5% in Italy.
But if you’re hoping for anything higher than 5% there’s little evidence to suggest you’ll be in luck this year. Ian Giulianotti, Director of NADIA Recruitment and Management Consultants says significant pay rises are not going to be back in the UAE any time soon. ‘There will be some pay rises, but certainly not substantial ones. The trend is for performance-orientated pay rises now as opposed to automatic company-wide bonuses. But considering rents in Abu Dhabi are dropping so dramatically, while your pay packet stays the same, in a way, that’s already up to a 10% reduction in your living costs. But the days of 30% pay rises are long gone – this is unlikely to change through 2012 and beyond.’
Show me the money click here to view
Abu Dhabi today: an industry overview click here to view
Abu Dhabi: the best place to work in the Middle East click here to view
What should you be earning? click here to view
Equal opportunity: does nationality affect your pay grade? click here to view
Dos and don’ts: getting a pay rise
Feel that you deserve a raise this year? Here are a few pointers on how to pitch your case.
Do
• Arrange a private meeting in advance, giving your boss some idea that you want to discuss a raise. If you can, make sure the meeting comes at a time when you’re already in the good books, because you’ve just completed a project or brought in new clients. Already having an achievement you can point to will have more sway than promising to do better in future.
• Prepare exactly what you’re going to say – how much extra money are you looking for, and why do you deserve it? Make sure you’ve researched what people in comparable positions in your company or elsewhere in the industry earn. Checking out job adverts (or the rest of this feature!) can give you an accurate picture of where you stand.
• Be prepared to compromise. Your boss might respond by offering you extra benefits, rather than a straightforward pay rise. Alternatively, you might be given new targets to hit and the promise of salary upgrades a few months down the line. Take this as a ‘maybe’ rather than a ‘no’ and don’t be discouraged – you’ll have a stronger case the next time you ask.
Don’t
• Don’t expect too much. The glory days of massive pay rises in the UAE are over so don’t ask for an unrealistic amount as you’ll look like you don’t have a good grasp of how the company is running.
• Don’t ask in front of other colleagues – this will put your boss in a tight spot and create pointless office tension.
• Don’t make threats, or say you’ll leave if you don’t get a rise – this will just indicate that you aren’t committed to your work.
• Don’t play the emotional card or ask for the money on personal grounds, such as being broke, needing to buy a house or getting married. Focus on what you’re worth to them rather than what the company is worth to you.
Show me the money click here to view
Abu Dhabi today: an industry overview click here to view
Abu Dhabi: the best place to work in the Middle East click here to view
What should you be earning? click here to view
Equal opportunity: does nationality affect your pay grade? click here to view
