Source ::: The Peninsula
DOHA: Employees in Qatar can expect a six percent increase in salary over the next year, according to an upcoming report of the global management consultancy, Hay Group.
The report comes after a pay and benefits study involving 16,500 employees from over 65 organisations in Qatar. The report has been compiled with the involvement of organisations from key sectors such as oil and gas, banking, real estate and local conglomerates.
The study shows a 11 percent rise in Qatar’s average basic salary and 10 percent increase in housing allowance since June 2008. The report forecasts six percent pay increase for 2010. It also reveals that Qatari nationals are paid more than 50 percent higher than expatriates
“Qatar is optimistic and hence the scenario is a little different when compared to the other GCC economies, said Vijay Gandhi, General Manager of Reward Information Service, Hay Group, Middle East.
“Organisations in Qatar are forecasting a salary growth of six to eight percent for 2010. The other economies of the region have somewhat lower forecasts in comparison,” he told The Peninsula.
The report highlights that pay movements in Qatar have slowed down as compared to last year but are still one of the highest in the region at 11 percent growth since June 2008.
Detailed analysis of the compensation reveals that annual bonuses have dropped by 30 percent for executives this year due to lowered business performance and uncertainty in the macro economic situation. The overall variable pay has dropped from 11 percent last year to five percent in 2009.
Although average compensation has moved by double digits on an aggregate level, the break down shows the new recruits employed into clerical roles in 2009 have been hired at 12 to 15 percent lower salaries as compared to the total market average. This also suggests an increased supply-demand balance in
The economic crisis has compelled organisations and governments round the world to take some significant steps toward restructuring their costs, a major portion of which is payroll.
There are few countries like Qatar where organisations across sectors and the public sector are stepping ahead to take advantage of reduced costs of expansion.
This feature of the market has resulted in still a race for talent with competitive growth of 13 percent in the salary for middle management professionals.
The report also brings to light that the shift in compensation is partly a result of the rising costs of living in Doha. Although inflationary pressures have reduced significantly compared to recent years, the rise in demand for staff has meant an increase of 10 percent on average housing allowances paid to employees.
The rising cost of education is also apparent with a 20 percent growth in education allowances paid to employees.
“Qatar’s forecast is positive, but there is a note of caution as the findings suggest that 50 percent of the businesses have set a lower revenue target for this year and over 60 percent of the companies have cut, or are considering, some budget cuts going forward. However it is also worth nothing that over 60 per cent of organisations are expecting an upturn in business performance within the next six to twelve months,” Gandhi said.
The Hay Group Compensation Report in Qatar is published on an annual basis. The latest report was published in September 2008.
The report covers salary administration, cash compensation, allowances and non-cash benefits.
Similar studies are done in each country in the Middle East and North Africa region.