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UAE: 65% of employees will look for new jobs in 2025; here’s why

The report expected a busy start to 2025, as employers were waiting for elections' outcomes in the US and India

Published: Tue 5 Nov 2024, 12:00 AM

Updated: Tue 5 Nov 2024, 9:34 PM

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Hiring in the UAE is set to pick up next year due to business growth as well as more clarity after the elections in the US and India.

According to the 2025 Salary Guide released by Robert Half, more than three in five of UAE business leaders – or 63 per cent – expect their overall headcount to increase in the next 12 months, with half agreeing that they need to hire more people due to growth.

After a year of elections in several countries that saw many employers hold fire on hiring, Robert Half expects a busy start to 2025. “A third of business leaders say they were waiting to hire until the outcomes were known, while a similar proportion – 32 per cent – are waiting on interest rates to stabilise or decrease before making hiring decisions,” said the report released on Tuesday.

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This year is marked as a year of elections as many major countries, including the US and India, held polls, prompting many big companies to put their expansion plans and recruitment on hold to get a clearer picture of winners.

Nearly seven out of 10 of business leaders – or 67 per cent – are confident about their organisations' growth prospects in 2025.

While employers are finding it easier to hire today compared to 12 months ago, Robert Half said many of the available candidates have recently relocated to the UAE and lack in-market experience, so it is also important for businesses to retain the talent they already have in the company.

However, nearly half of business leaders – or 47 per cent – say that although it is easier to find workers, it is not easy to find candidates with the right skills, according to recruitment consultancy Robert Half’s 2025 Salary Guide.

Majority to look for new jobs in 2025

The Robert Half study revealed that two-thirds – 65 per cent – will look for a new job before the end of 2025, with 30 per cent of those citing the rising cost of living as a key driver for their move.

With the UAE continuing to experience high inflation, one-third of employees – 34 per cent –agree that they need a higher salary to meet their obligations. The decline in salaries and oversupply of expat talent is undermining in-role salary growth, with three-quarters – 75 per cent – agreeing that it is harder to negotiate a pay rise today compared to 12 months ago.

“If the market shifts, these employees will be among the first to jump ship, leaving employers without the talent they need,” said the report.

Gareth El Mettouri, director for Middle East at Robert Half, said that although the influx of expats has made it easier and cheaper for businesses to hire, leaders should be mindful of the impact this could have on their existing employees.

Gareth El Mettouri, director for Middle East at Robert Half

Gareth El Mettouri, director for Middle East at Robert Half

“Unable to secure pay rises in both their existing roles or new roles, many employees feel trapped, which impacts job satisfaction and productivity. If employers do not take steps to look after their best talent, they will move on as soon as the market shifts," he added.

"Employers should also remember that although there is a very loose market for newcomer talent, they may still struggle to find employees with the right skill sets, especially if they require Arabic speakers or previous UAE experience. Starting salaries may be declining slightly in some instances, but to attract those already living and working in the country, the remuneration component of job offers will need to be competitive,” added El Mettouri.

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