RIYADH: Wages in Saudi Arabia are set to rise by an average of 5 percent in 2017, at a consistent pace with the previous 2 years, according to Towers Watson’s latest Salary Budget Planning Study.
However, the inflation rate in the Kingdom this year is estimated at 4.7 percent, an increase from last year, when it was estimated at 2.2 percent. However, the increase in the pay for employees across all industry sectors in 2015 and 2016 was 5 percent.
In 2017, the salary has been projected to increase by 4.6 percent in the region, in countries such as the UAE and Bahrain, while Lebanon will have the highest increase in pay growth (5.4 percent), followed by Saudi Arabia and Kuwait (5 percent), Qatar (4.8 percent).
Laurent Leclere, senior consultant and data services lead for the Middle East at Towers Watson, said: “There are many factors that affect the employee attraction and retention such as the work environment, the managers they work with, health and insurance programs. The topmost factor however is the compensation that would also drive the employees’ performance.”
The report provides salary increase budget information for a large selection of economies across the globe, as well as projected inflationary and country GDP movements for the same period of time.
Across Europe, the Middle East and Africa (EMEA), the report highlights countries where real pay differs significantly to the regional average. Lebanon has the highest pay increase at 7.1 percent, while Zambia has the lowest at -13.6 percent. For Central and Eastern Europe, Poland is highest with a 3.1 percent real-pay increase projected for 2016 and at the other end of the spectrum is Kazakhstan at -5.1 percent.
On a global level, the report shows employees in Asian countries are predicted to benefit from some of the highest pay rises with a regional average real-pay increase of 3.8 percent, followed by EMEA at 1.9 percent and South America at 1.8 percent. North America has some of the lowest projected increases at an average of 1.6 percent.
The General Industry Compen-sation Survey Report, which includes actual and target amounts paid for all employee salaries, allowances and bonuses, suggests that a similar rate of salary growth is likely to be maintained into 2017. But the research reveals that pay growth could be greater for certain skilled jobs with a smaller talent pool such as digital professionals.
“In an increasingly global and fast-moving talent market, effective use of the company’s salary budget should be high on reward professionals’ agendas. Identifying key talent, for not only technical skilled roles but also for the skills necessary for succession planning, is essential to the long-term health of any company. By segmenting and differentiating to meet organizational and employee needs, it is possible to ensure companies are offering a total rewards packages that employees value and that will better its chances of retaining and engaging top talent,” Leclere added.
However, the inflation rate in the Kingdom this year is estimated at 4.7 percent, an increase from last year, when it was estimated at 2.2 percent. However, the increase in the pay for employees across all industry sectors in 2015 and 2016 was 5 percent.
In 2017, the salary has been projected to increase by 4.6 percent in the region, in countries such as the UAE and Bahrain, while Lebanon will have the highest increase in pay growth (5.4 percent), followed by Saudi Arabia and Kuwait (5 percent), Qatar (4.8 percent).
Laurent Leclere, senior consultant and data services lead for the Middle East at Towers Watson, said: “There are many factors that affect the employee attraction and retention such as the work environment, the managers they work with, health and insurance programs. The topmost factor however is the compensation that would also drive the employees’ performance.”
The report provides salary increase budget information for a large selection of economies across the globe, as well as projected inflationary and country GDP movements for the same period of time.
Across Europe, the Middle East and Africa (EMEA), the report highlights countries where real pay differs significantly to the regional average. Lebanon has the highest pay increase at 7.1 percent, while Zambia has the lowest at -13.6 percent. For Central and Eastern Europe, Poland is highest with a 3.1 percent real-pay increase projected for 2016 and at the other end of the spectrum is Kazakhstan at -5.1 percent.
On a global level, the report shows employees in Asian countries are predicted to benefit from some of the highest pay rises with a regional average real-pay increase of 3.8 percent, followed by EMEA at 1.9 percent and South America at 1.8 percent. North America has some of the lowest projected increases at an average of 1.6 percent.
The General Industry Compen-sation Survey Report, which includes actual and target amounts paid for all employee salaries, allowances and bonuses, suggests that a similar rate of salary growth is likely to be maintained into 2017. But the research reveals that pay growth could be greater for certain skilled jobs with a smaller talent pool such as digital professionals.
“In an increasingly global and fast-moving talent market, effective use of the company’s salary budget should be high on reward professionals’ agendas. Identifying key talent, for not only technical skilled roles but also for the skills necessary for succession planning, is essential to the long-term health of any company. By segmenting and differentiating to meet organizational and employee needs, it is possible to ensure companies are offering a total rewards packages that employees value and that will better its chances of retaining and engaging top talent,” Leclere added.
