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Competitive compensation packages play a crucial role in the recruitment and retention of high-performing employees. Employee retention is inextricably linked to high salary packages and relatively lucrative compensations. According to an estimate, about 40% of employees globally, consider quitting their current jobs if they find better options. This is a troubling figure for organizations, as employee turnover is not only an expensive phase for any business but also affects its growth. In a survey conducted by Glassdoor, about 67% of job applicants consider salaries and compensation packages being offered by a firm. Thus, it is significantly essential for companies and firms to offer market-competitive salaries and generous compensation packages when hiring skilled and talented workers.
If you are running a business, especially in the competitive and diverse market of the UAE, and aspiring to hire and retain talented professionals, then you must take measures and leverage services from recruitment agencies like RFS HR to gain insight into candidate personas and know about the competitive salary benchmarking to compensate your employees as per their talent, time, and skill.
The blog will discuss the significance of competitive packages for retaining top-performing employees, strategies to adopt for drafting competitive packages, and the crucial role of recruitment agencies in Dubai in the context of the UAE’s market.
What is competitive compensation?
Competitive compensation simply means employee compensation that either exceeds or meets the mean salary expectations of that role. To this end, you need to have a very good understanding and insights into market trends and salary guides for the country. This is where most businesses and organizations take advantage of expert international recruitment services to fill them with details and draft a plan for effective recruiting.
Only in the last year in 2023, about 90% of the people were looking for jobs with higher pay. Whereas 41% of them said that they would accept the job offer with an increase in pay in as little as 5%. These figures show that employees consider switching their jobs for higher salaries with only a slight increase. By ensuring market-competitive packages, companies are less likely to face employee turnover.
Factors Affecting Competitive Compensation Packages
When determining the competitive package of employees, a few factors need to be accounted for. Often, companies and organizations reach out to recruitment consultancies to provide them with market insight and salary trends for a particular job role. For instance, in a market as competitive and dynamic as the UAE, companies rely on acquiring talented professionals from around the world. To retain this talent, they offer competitive salary packages and other benefits. To this end, recruitment agencies in Dubai, like RFS HR Consultancy, play a crucial role by leveraging their services to businesses, guiding them with UAE salary guides, and making unique plans for companies aimed at retaining employees.
Some of the factors that recruitment agencies in Dubai consider while making strategies for completive compensations for companies are stated below:
Geographic Location
As an employer, you must ensure that the salary you offer covers the employee’s cost of living. The cost of living varies from one location to another; therefore, the base salary should be enough to cover the employee’s cost of living. Otherwise, they will look for other options offering higher wages.
Industry Average Compensation
Job applicants tend to compare your salary package and other benefits with your competitors in the market. Therefore, you should also compare your packages with your competitors by running an industry analysis. This is where expert international recruiters will play a pivotal role for you by providing industry analysis and important insights about salary packages.
Availability of Talent
The availability of a talent pool is an essential factor in determining the salary rate for a job role. In the case of the diverse and competitive market of the UAE, companies offer high salaries and beneficial packages to talented professionals to attract them. In the competitive landscape of the UAE’s market, it becomes crucial for other companies to offer the same or more compensation packages to acquire and retain talented workers while prioritizing their profits at the same time. In such a complex situation, companies and organizations operating in the Emirates seek help from recruitment agencies in Dubai, such as the RFS HR Consultancy, who are skilled in making market-competitive compensation plans keeping in view the firms’ goals and profits.
What to Offer in a Competitive Compensation Package?
A high salary package based on the above-mentioned factors is just one element of competitive compensation. Other essential elements are highlighted below:
Opportunities For Growth And Professional Development
Skilled and talented employees are always looking for opportunities that would enhance their professional growth and development. Subscribing to a competitive salary strategy is the opening move toward retaining employees. If a company is operating in the Emirates, then it must be prepared to adopt additional strategies, as its competitors in the industry must be offering relatively similar salaries for similar job roles.
To distinguish yourself from others in the industry you need to offer career growth and development opportunities to your employees by offering courses and training. In this regard, the recruitment agencies in Dubai are experts in providing insights about different types of opportunities being offered by different firms and making training programs unique to your businesses and companies operating in the UAE and across the Middle East.
Work-Life Balance
As an employer, you must have a clear policy regarding work hours and need to encourage employees to maintain a healthy work-life balance. Often companies expect extraordinary output from their employees asking them to work on weekends or work online after working hours. Such practices are highly motivating factors for employees to consider other job opportunities offering a healthy work-life balance.
In the case of working culture in the UAE, employees often struggle to find the right balance between work and life. Therefore, employee turnover is high in companies and businesses operating in the Emirates. Usually, employees sign up for the job only to secure a working visa; soon after securing one, employees leave the job almost immediately which does not offer peace of mind and a healthy work-life balance.
Inclusive and Welcoming Working Place
As an employer, it is crucial for your business to create an inclusive working culture where all of your employees feel welcomed regardless of their nationality or background.
This holds particularly true for businesses operating in the Emirates where global talent is flocking to find better job opportunities and lifestyles. Employees’ output increases multifold if they feel welcomed and their efforts are recognized. As easy as it may sound to achieve this, it is actually very difficult to create such an inclusive environment in a multicultural space and overcome cultural nuances. Hence, the companies in the UAE work closely with local recruitment agencies in Dubai that supply the best managers experienced in the multicultural environment who also can seamlessly conduct business over cultural differences.
Retirement Plans
Offering retirement plans will not only attract skilled and talented workers toward your business but also encourage them to set aside a portion of their monthly salary for the retirement plan. This also benefits employers as it allows companies to measure the monthly performance and contribution of employees, compounding their retirement savings.
Paid Leaves
Paid leaves act as a crucial factor in attracting and retaining employees. It allows employees to take a few days off from work and utilize it for several reasons, from going on vacations to recovering health. Companies and organizations offering generous yearly paid leaves stand distinguished from their competitors.
Health Insurance
This is another key factor that helps companies distinguish themselves in the industry. In a multicultural environment like the UAE, foreign workers often find it very difficult to afford health expenses. However, offering such benefits will boost your company’s reputation and increase its demand among the employees.
Hybrid or Remote Schedule
After the COVID-19 pandemic, the working environment has changed. Currently, the home office concept is broadly accepted by many workers and companies, some employers are even willing to offer a hybrid schedule. It saves them the time they would have spent going to the office and the fuel, which is commonly expensive these days.
Leveraging Recruitment Agencies in Dubai to Make Competitive Strategies Through UAE Salary Guide
Recruitment consultants are crucial partners for businesses operating in the UAE, helping them navigate the complexities of market trends and stay updated with salary trends. They are particularly useful for organizations in crafting market-competitive benefit packages that not only help them attract top talent but also retain it.
This is because recruitment agencies in Dubai, such as RFS HR Consultancy, or other expert international recruitment services, have a deep understanding of local market dynamics, including a profound insight extracted from the UAE salary guide.
By taking advantage of their expert guidance, companies and firms gain valuable knowledge and market insight into emerging salary trends across different industries and job roles. Equipped with invaluable knowledge and experience, recruitment consultants in Dubai help businesses and organizations align their compensation and salary packages with market standards, ensuring that the offer remains lucrative and competitive for job applicants.
By collaborating with recruiting agencies in Dubai, your business will not only leverage their expertise but also unlock access to their data collected from the UAE salary guide. This data serves as a blueprint for companies, enabling them to draft competitive compensations by providing recommendations and benchmarks.
Additionally, recruitment consultancies in Dubai such as ours integrate insights gathered from the UAE salary guide into our strategies, enabling our partner companies and organizations to remain at the apex of talent acquisition, attracting and retaining top-tier global talent. Moreover, guided by the UAE salary guide our agency also plays a pivotal role in negotiating and concluding compensation packages with potential applicants.
Collaborate with us
If you are looking to collaborate with the UAE’s best recruitment agency to boost your employee retention and lower employee turnover, then look no further and contact us now.
