2020: A mixed bag for salaries in the Gulf region but with growing optimism for 2021


2020 was a year of unprecedented change and challenges for the global jobs market however, salaries for the majority of professionals working in the Gulf region were unaffected or positively impacted over the past 12 months, that’s according to Hays 2021 Salary & Employment Report, released today.

The report, which was compiled from a survey of more than 3,500 employers and employees from across the region, found that while 18% of working professionals’ salaries decreased in 2020 compared to 2019, a significant 34% increased and 48% remained the same.

“As ever, when it comes to salaries, it has been a mixed picture for professionals in the region. With the outbreak of Covid-19 and associated movement restrictions enforced on all in our personal lives, it may be easy to assume that we were all similarly impacted in our professional lives but, as our survey shows, this is just not the case.” Says Chris Greaves, Managing Director of Hays Gulf region.

“This is the seventh year we have published these survey results and, as with previous years, there have been ‘winners’ and ‘losers’ with regards to salaries and job opportunities,” he adds.

Industry trends

The report found that of all the different job functions, IT and Tech professionals experienced the greatest number of pay increases in 2020 (38%), while the lowest number of salary increases were paid to those in Office Support and Administration roles (26%). 

“Demand and salaries for Tech professionals have been relatively high as, despite the challenges Covid-19 has brought to businesses this year, the need for automation is more crucial than ever in enabling organisations to remain competitive in their respective markets. Employers are willing to pay high salaries for the top tech talent to ensure they are setup as efficiently as possible for business going forward. In contrast, demand and salaries for Office Support and Administrative roles have decreased as the pandemic forced the closure of many offices during lockdown and this, along with the shift to more home and remote working, has made many of these roles redundant.” 

When comparing different industry sectors, Telecoms, Pharmaceuticals and Life Sciences, and Banking and Financial Services were the three most robust industries in 2020, with only 6% of employees within these experiencing a pay cut. In contrast, the four sectors which introduced salary reductions to the highest degree were Aviation, Hospitality and Tourism, Engineering, and Property, with 34% of employees in these industries experiencing a pay reduction. 

“It is of no surprise that these industries have been most negatively impacted by the Covid-19 pandemic. Lockdowns and threats of spreading the virus reduced tourism numbers overnight in March and there are still many barriers to travelling. Demand for oil and oil prices have therefore fallen and resulted in some significant cutbacks on fiscal and monetary policies of governments whose economies are somewhat reliant on the Oil and Gas industry – namely those in the Gulf. This has then seen many Construction projects in the region go on hold or be cancelled altogether,” says Greaves. 

Looking ahead

Salary expectations for 2021 are optimistic with nearly half, 47%, of employers planning to increase pay rates in their organisation in the next 12 months. Similarly, 47% of employees expect their salary to increase in 2021, most commonly by 5-10%. 

“From our own experiences in the market, business activity really picked up across all sectors towards the end of 2020 and we believe this momentum will continue over the coming months, giving rise to a larger proportion of the working population receiving salary increases in 2021 compared to 2020. 

Employers will undoubtedly be more cautious with spend on hiring and remuneration of staff than they were pre-pandemic but we believe that the worst impacts of the pandemic are behind us and organisations will only add to their headcount and reward staff going forward rather than freezing pay or making further redundancies,” concludes Chris.

Hays 2021 GCC Salary & Employment Report

The Hays 2021 GCC Salary & Employment Report provides an in-depth analysis of the 2020 GCC hiring market, with employer and employee expectations for 2021. The report has been compiled using survey data gathered during Q4 of 2020 from over 3,500 employees & employers based in the GCC.

About Hays:

Hays plc (the “Group”) is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Australia and one of the market leaders in Continental Europe, Latin America and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2020 the Group employed c.10,400 staff operating from 266 offices in 33 countries across 20 specialisms. For the year ended 30 June 2020:

– the Group reported net fees of £996.2 million and operating profit (pre-exceptional items) of £135.0 million;

– the Group placed around 66,000 candidates into permanent jobs and around 235,000 people into temporary roles;

– 17% of Group net fees were generated in Australia & New Zealand, 26% in Germany, 23% in United Kingdom & Ireland and 34% in Rest of World (RoW);

– the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;

– IT is the group’s largest specialism, with 25% of net fees, while Accountancy & Finance (15%) and Construction & Property (12%), are the next largest

– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA