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Dubai: Companies in the UAE continue to face high turnover rates because there are many employment opportunities in the country and candidates are seeking better remuneration to cope with rising living costs.
Industry sources confirmed that while organisations are strengthening their talent retention strategies, a growing number of employees are leaving their jobs. Attrition rates will remain a key issue in the next few years, especially since the UAE is gearing up for the World Expo 2020 hosting, which will generate more openings.
Estimates show that the global employee turnover is set to increase to 161.7 million in 2014, an increase of 12.9 per cent from 2012 figures.
The high level of attrition has been attributed to increasing job opportunities and the growing number of “aspirational” workers, which include those who are ready to travel the world in search of better career, according to Mahesh Shahdadpuri, CEO and managing director of TASC.
“Given these universal reasons, there is a strong case for high employee turnover rates in the UAE this year, especially with analysts predicting strong salary growth and better performance across core sectors in 2014,” he said.
“The country is also in the run up for the Expo 2020, which could trigger attrition in the coming years as skilled workers seek to capitalize on new opportunities. The turnover rates are not expected to reach pre-2008 levels, since companies are treading with greater caution in retaining their valued talent assets.”
There is also a growing number of workers seeking a relief from rising living costs. “The confidence in the market is setting an expectation among existing employees who are demanding an improved level of remuneration, especially since the rise in rent and cost of living is far outpacing salary increases in the UAE. So their expectation is not one of hope but of necessity,” said Asha Wadhwani of eFinancial Careers Gulf.
In a survey conducted at the end of last year, eFinancial Careers found that nearly seven in 10 (65 per cent) of financial professionals would consider seeking another job if bonus expectations were not met.
“It is no surprise that there are many replacement roles being advertised in the market,” said Wadhwani.
Source: Cleofe Maceda, Senior Reporter, gulfnews.com