Industry Watch - As the dust settles, a culture change emerges

As companies in the Gulf dust off their recruitment policies and start to hire staff again, 2010 will be a new chapter for the UAE jobs market.  

Declining sales, project delays and cancellations prompted many businesses in the Gulf to shed staff in 2009. But this year there are clear signs of a recovery in the global economy and a pick-up in business activity in the region is instilling firms with the confidence to consider recruiting again.

In the UAE, experts say almost a quarter of all employers plan to recruit in the next three months, and a further 26 per cent will “probably” recruit staff during the same period.

Influx of candidates

Part of the reason for this is because there has been a surge in the number of job applications from expatriates since the start of the year. Every area of the candidate database is increasing, covering nearly every task, function and discipline in a wide variety of industries from construction engineering to accountancy, and retail selling to media relations.

In other words, the talent pool is wider and deeper than ever before and businesses are starting to seize the opportunity.

With migrant workers and expatriates accounting for over 90% of the entire working population of the UAE, the country is still an important destination for the candidate market. Put simply, as people around the world have lost their jobs they are looking to the UAE for new opportunities and employment.

Opportunities for candidates

A large talent pool makes life harder for candidates, but the UAE jobs market is starting to bounce back. Development of infrastructure is still a growth area, which means there is real potential across the Energy sectors and good opportunities in Property & Construction, notably for Quantity Surveyor and Project Managers.

In other sectors, insurance professionals are still in demand as are senior auditors and analysts in Financial Services (see Jobs Spotlight). In Healthcare, Surgeons have been recruited in large numbers due to the expansion of new hospitals in the region and the recent announcement that 7000 new nurses will be needed represents an additional 30% in that workforce.

An employer’s market

Nevertheless, recruitment activity will not reach the frenzied peaks of two years ago when candidates could often drive a harder bargain to ensure a lucrative remuneration package. In 2010, employers will be more selective in their hiring processes, more cash-conscious and less willing to offer the rich pay packages.

Most analysts agree that salaries are down by between 10-30% from 2008. In property, for example, firms have cut new salaries by 20% for project-management jobs, and global multinationals that were offering Dh36,000 (US$9,800) a month for senior positions are now offering Dh32,000, a decline of 11%.

Organisational change driving a new approach

Salary rationalisation is just one example if how many businesses in the UAE are streamlining their operations to reduce costs and find operational efficiencies. Tough market conditions can provide an opportunity for organisations to become leaner and more competitive, but the process of restructuring is far from simple and brings considerable risks.

For example, studies have shown that 25% of an organisation's high achievers typically leave within 90 days of a major change being announced. More enlightened businesses, therefore, are investing considerable time, effort and budget to retain their most valued staff members. For recruitment firms such as Reed, there’s a growing demand for consultancy services to develop best practice strategies for talent deployment.  This has led to an increased focus on areas such as:

• Talent mapping
• Assessment & Selection for Restructuring and Redeployment
• Transition and Outplacement
• Enhancing Performance
• Team building
• Development Planning & Coaching

 The consensus is that 2010 can be viewed with cautious optimism. Those organisations that have taken the steps to restructure and develop new talent management strategies will be better prepared to seize new business opportunities when the upturn comes.

Hiring plans in 2010

Definitely hiring           24%

Probably hiring            26%

Probably not hiring      14%

Definitely not hiring      11%

Don’t know / can’t say 25%

Perceptions of country attractiveness

Much more                  46%

Slightly more               16%

No change                   16%

Slightly less                 8%

Much less                    8%

Don’t know / can’t say 6%    

Jobs Spotlight Chief Financial Analysts in high demand

Transparency, accountability and mathematical rigour will be key performance indicators for the UAE to rebuild and maintain its status as a world-leading business centre. So it’s not surprising that financial analysis is one of the most rapidly growing professional qualifications in the country.

Currently, there are 428 Chartered Financial Analysts (CFAs), compared to 128 in Saudi Arabia and 25 in Oman, for example. Add to that the 2,419 candidates in training for certification – half of the 4,773 candidates registered across the Gulf – and the UEA is clearly leading the race by some distance.

With CFA membership in the GCC anticipated to double over the next decade, a significant share of this growth is expected to be in the UAE, reinforcing the Emirates’ future position as a commercial gateway and a place to do business.

The optimistic outlook for the GCC, and the UAE in particular, needs to be put into perspective: globally there are 100,000 CFAs (including 54,800 in the US and 6,700 in the UK).

There’s a long way to go but we are moving in the right direction.

-- Ends – 

Notes to Editors 

Country website details for each of the 12 Reed Global websites:Australia – www.reedglobal.com.au

Bulgaria – www.reedjobs.bg and www.reedjobs.bg/bg

Czech Republic – www.reedglobal.cz and www.reedglobal.cz/cz

Hong Kong – www.reedglobal.hk

Hungary – www.reedglobal.hu and www.reedglobal.hu/hu

Ireland – www.reedglobal.ie

Malta – www.reedglobal.com.mt

Poland - www.reedglobal.pl and www.reedglobal.pl/pl

Qatar – www.reedglobal.com.qa

Singapore – www.reedglobal.sg

UAE – www.reedglobal.ae

United Kingdom – www.reedglobal.com 

About Reed Specialist Recruitment

Founded in 1960, Reed is a specialist provider of permanent, contract, temporary and outsourced recruitment solutions, as well as IT and HR consulting.

Reed operates in Europe, the Middle East and Asia Pacific and has over 3,000 permanent employees working out of 400 offices worldwide across more than 30 specialisms. 

reedglobal.com enables clients around the world to interact with our recruitment services, while also enabling jobseekers globally to search for opportunities across multiple industry sectors.

reed.co.uk is the UK's biggest jobsite and receives over 1.5 million job applications per month.

Reed is passionate about the environment and has an award-winning environmental programme. Reed continues to maintain its Carbon Neutral (R) status and commitment to being Carbon Responsible.

About Maria Brown

Maria is a recruitment expert with Reed Specialist Recruitment and has more than 10 years' experience spanning specialist sectors and markets in the UK, Middle East and Asia Pacific.

In the past five years. Maria has run Branches of Reed Accountancy in the UK and more recently has also been instrumental in successfully establishing and expanding Reed's presence in the Gulf Cooperation Council (GCC).

Maria's specialist background in Accountancy, Finance, Banking, Investments and Insurance has given her a comprehensive understanding of the operational needs and business demands in emerging organisations. A successful sales strategy, commerciality and business acumen, combined with professional credibility within a variety of sectors, helps Maria create successful recruitment solutions for assorted prestigious clients.

In the last two years The Reed Group of Companies has expanded within emerging markets - including Ireland, Malta, Bulgaria, Poland, Prague, Hungary, Qatar, UAE, Singapore and Australia - and Maria was chosen to support this growth because of her in-depth recruitment knowledge.

Maria also provided Professional Consultancy Services to new businesses entering the market. Assisting in business plans, entry to market, sales strategies, departmental and team structures, internal corporate governance and business licence and establishment processes.  

For further information please contact:

Maria Brown, Associate Director MENAReed Specialist Recruitment Mobiles: UAE: +971 50 320 7140 Qatar: +974 509 6776 International: +44 7766 883160

Email: maria.brown@reedglobal.com

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