UAE24x7
  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021
No Result
View All Result
  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021
No Result
View All Result
UAE24x7
No Result
View All Result
Home Business

Covid-19: UAE firms hiring workers at 15-20% lower salary

Shehin by Shehin
June 13, 2020
in Business
0
Covid-19: UAE firms hiring workers at 15-20% lower salary
Share on FacebookShare on Twitter

The nature of work is changing in UAE as businesses start open after the government issued relaxations in the COVID-19 regulations. Companies are looking forward to hiring new employees at lesser salaries and there were reports of heavy salary cuts of the excising employees.

New hiring is picking up in the UAE, companies are recruiting new employees at 15 to 20 percent lower salary as compared to pre-COVID-19 period. Temporary pay cut and 4-day work have also become the new norm as firms go for massive cost cuts, according to consultants.

“The good news is that new hiring is slowly picking up as we see more organizations getting back physically to work and starting to fill the essential roles which were stalled per-COVID. The temporary drop in base pay for 3 to 4 months for existing jobholders should end by August/September in the majority of the companies. The average drop we foresee for new joiners is 15-20 percent less than people working at the same level,” said Vijay Gandhi, regional director for Korn Ferry.

This means the expatriates who are looking for a job would want to settle down quickly in the UAE even with a lower salary to avoid moving back to the home country. At this stage, it’s an employer’s market with job losses in key sectors in the UAE.

Professional networking site LinkedIn also said last week that hiring in the UAE has started to recover from a steep fall due to the coronavirus pandemic.

Jason Grundy, managing director for the Middle East and Africa at Robert Walters, said there is no doubt that the global pandemic will affect salary levels in the short-term but the UAE has a track record of bouncing back from global events. “I would expect a drop in the number of new roles available rather than significant and permanent salary reductions going into 2021,” he added.

“Some organizations are reducing their staff working hours to reflect the market and this, in turn, shrinks the fixed costs, others are simple reducing pay. The 4-day week is common across professional services companies but those in the likes of hospitality and travel have had much more severe cuts. The key to holding onto critical staff will be when these cost-saving mechanisms are switched off,” he added.

“Wage deflation is happening in parts of the market but only the most essential and in some cases rarest skill-sets are being hired. The competition for these people maintains the pre-COVID-19 salary,” he added.  

Companies are expected to resort to a 4-day week and salary sacrifices which will be temporary and in some cases on a voluntary basis.

The UAE, like the wider GCC region, continues to provide a competitive total reward if not higher than jobs of similar nature in other parts of the world. The salary growth for new joiners will take time as businesses re-invent to the new normal and optimize businesses with better technology and choosing what they need to start, stop, and continue doing.

  • Trending
  • Comments
  • Latest
How to check UAE visa status & validity using only passport

How to check UAE visa status & validity using only passport

September 10, 2021
The most important advice that every tourist should take into account when visiting Dubai

The most important advice that every tourist should take into account when visiting Dubai

July 25, 2020
Procedures for Renewing the Driving License in Abu Dhabi [3 Simple Steps]

Procedures for Renewing the Driving License in Abu Dhabi [3 Simple Steps]

September 21, 2021
how to transfer credit from Etisalat to du and visa versa in UAE [Under 1 Minute]

how to transfer credit from Etisalat to du and visa versa in UAE [Under 1 Minute]

September 14, 2021
Is classroom education a distant dream now?

Is classroom education a distant dream now?

0
Is classroom education a distant dream now?

Asia’s Biggest Book Market Damaged Beyond Belief!

0

Is earth’s magnetic field weakening creating another nightmare on planet earth?

0

UK’s new twin Nuclear Power Plant is catastrophic: Environmentalists

0
big ticket UAE

Big ticket UAE: A man from Kerala won Rs 20 Crores

December 6, 2021
UAE new criminal law 2022

UAE: New criminal law 2022 will take the effect next year

December 5, 2021
best Sushi restaurants in Dubai

Best Sushi restaurants in Dubai: Sushiholic!

December 5, 2021
UAE national day celebration 2021

UAE national day 2021 celebrations: All about yesterday

December 3, 2021
UAE24x7

Menus

  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021

Recent News

big ticket UAE

Big ticket UAE: A man from Kerala won Rs 20 Crores

December 6, 2021
UAE new criminal law 2022

UAE: New criminal law 2022 will take the effect next year

December 5, 2021
No Result
View All Result
  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021

© 2021 UAE24X7