UAE Companies Plan To Cut Workforce

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UAE Companies Plan To Cut Workforce
Presentation By Start Any Business
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As per the annual survey conducted by the
consultancy Mercer, the direct impact of COVID-19
on the compensation and advantages landscape is
less drastic than initially feared. Although 10
per cent of UAE companies reduced salaries
temporarily, 30 per cent UAE companies plan to
cut the workforce. Because the employees working
from home the 25 per cent of the companies have
reported an increase in productivity and the
market yet experienced positive salary inflation.
In the United Arab Emirates (UAE), 17 per cent of
the companies delayed managing out 2020 salary
increases after the Coronavirus strike, most
likely by six months and so on. These are the
severe numbers produced on what United Arab
Emirates (UAE) businesses are doing to cope with
the pandemic result. Most of the bigger
organizations have already gone through the
procedure of headcount reductions on the other
hand, salaries were cut by 30-50 per cent. Until
further notice, some of them yet retain the
salary cuts.
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When the general market forecast a 2021 salary
expand of 4 per cent, industry figures depends
significantly. The most explicit proposed growth
has come from the life sciences (4.5 per cent)
and customer goods (3.8 per cent) industries.
With a 1.9 per cent forecast, the energy industry
continues to see some of the lowest increase in
salaries. The Coronavirus resulted in the rapid
implementation of remote and versatile working
measures with 66 per cent of companies having
devised new remote working policies on the other
hand, 25 per cent already had one in place. Due
to this, a quarter of employers reported
enlarging productivity and expected versatile
working arrangements to continue to stay in place
in a post Coronavirus landscape.
According to the Ted Raffoul, Career Products
Leader, MENA at Mercer- It is very fostering to
see that in spite of the economic challenges, a
significant number of United Arab Emirates (UAE)
employers have expanded salaries in 2020. In
response to the business effects of Coronavirus,
the 10 per cent of companies reduced salaries
however, almost all of these were on a temporary
basis. UAE companies are making progress towards
boosted business strategies even though
uncertainty continues into 2021, with a majority
of them expecting new working arrangements to
continue to evolve towards permanent policies.
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However the thirty per cent of UAE companies plan
to cut workforce decrease of 10 per cent in 2020,
the extent to which companies took this kind of
action depends according to their industry and
resilience to the impact of Coronavirus with the
massive decrease in headcount occurring in the
retail sector. In the logistics sector, there has
been an increase in headcount in 2020,
particularly express and last-mile delivery, in
order to meet strong demand from the e-commerce
boom, caused by the national stay-at-home
orders. Although we expect uncertainty to span
into 2021, the Total Remuneration Survey result
promises a more optimistic new year because
companies are increasingly reporting positive
hiring sentiments compared to those indicated at
the onset of the pandemic, as per to the Carolina
Vorster, Workforce Products Leader, MENA at
Mercer. Once the pandemic is over companies,
continue to the new normal with 55 per cent of
them anticipating keeping versatile working
arrangements and have employees have proved their
commitment towards employees by providing one
subsidy for remote workers like covering the cost
of office set up, online learning, and furniture
and many more.
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