Business leaders in Saudi Arabia are setting the stage for a year of growth with anticipated salary hikes, recruitment drives, and a return to office environments, as per insights from the Hays Middle East Salary Guide for the Kingdom.
The comprehensive guide outlines salary details for over 200 positions within 11 professional fields. It draws on the expertise of industry specialists and compiles responses from a survey of 400 employers and professionals.
A significant 77 percent of employers have signalled their intentions to raise salaries this year, while nearly one-third of employees are contemplating job changes due to insufficient career advancement options.
Postive Economic Outlook Fuels Job Market Optimism
“In a burgeoning job market, a sense of optimism pervades thanks to favorable economic conditions and ambitious state projects, spurring rapid expansion,” states Mark Paul, Manager at Hays Saudi Arabia.
Fueled by Saudi Vision 2030’s aim to diversify the economy, a substantial 69 percent of employers are looking to expand their teams. Concurrently, 29 percent of professionals are eyeing new job opportunities, highlighting the importance for companies to understand the evolving market dynamics to attract top talent.
The guide illustrates a robust job market eager for expansion, with a majority of Saudi employers poised to bolster their workforce this year.
Nevertheless, the optimism faces challenges like a limited pool of skilled talent, with half of the employers citing a deficit of skilled professionals.
In response, companies are stepping up international recruitment efforts and focusing on enhancing their employer brand.
Professionals in Saudi Arabia are expecting equitable pay; encouragingly, the guide indicates that 77 percent of employers anticipate salary increases within their organizations this year, with the most common raise up to 5 percent.
This anticipated increase in salaries reflects a positive sentiment and employers’ readiness to invest in their workforce.
Career progression is a key player in employee retention. The guide shows that among the 29 percent of professionals planning to switch employers this year, a lack of career development opportunities is the primary driver.
Employers are recommended to invest in training programs and mentorship to enhance job satisfaction and support career growth.
While 25 percent of professionals highly value remote and hybrid work arrangements, the guide indicates a significant trend back to office-based work, with 69 percent of employers maintaining a fully office-based model.
There seems to be a disconnect between professionals and employers regarding benefits, with 37 percent of employees reporting no benefits received, in stark contrast to only 4 percent of employers who claim not to offer any.
A substantial 61 percent of professionals cite the benefits package as a key consideration when selecting an employer.
Regarding AI adoption, the guide reveals a cautious stance among employers, with 39 percent recommending its use in the workplace, yet only 14 percent of professionals report an outright ban on AI at their organizations.
Despite 38 percent of employers expecting AI to eliminate more jobs than it creates, only 22 percent are actively preparing for its potential impact.
Key findings from the guide include:
- Professionals are hopeful for fair compensation, with 79% predicting salary hikes in 2024
- A significant number of professionals (49 percent) believe their employers lack transparency about pay levels and rises
- 34 percent of employers acknowledge their organizations do not ensure pay transparency
- The top reason for 29 percent of professionals planning a job change is the absence of career growth opportunities (47 percent)
- Besides salary, benefits packages are crucial to 61 percent of professionals when choosing an employer
- Popular benefits include child education allowances (43 percent), travel allowances (35 percent), and flexible working arrangements (26 percent)
- A notable increase in workforce is anticipated, with 36 percent of employers aiming to grow their teams by more than 10 percent
- A high intent to hire is evident as 95 percent of employers plan to recruit in some capacity
- Persistent skill shortages are reported by 50 percent of employers
- Most professionals (72 percent) maintain an optimistic outlook on the economy and future job opportunities