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More than eight out of 10 GCC organizations plan to increase employee salaries and financial benefits in 2024, according to Procapita Group’s benchmark.
In its 2024 HR Trends Report, Procapita Group broadly consulted with more than 1,200 organizational leaders and found that 83% of organizations in the GCC plan to offer salary increases or bonuses in the next 12 months. Notably, nearly half of organizations will offer raises and bonuses.
The outlook is more optimistic than what was actually achieved last year. In 2023, 77% of organizations are offering salary increases to employees, with 22% forgoing salary increases or bonuses.
Source: Procapita Group, 2023-2024 HR Trends and Practices Annual Report
It’s unclear how much salary increases employees can expect this year, but reports suggest the trend will be consistent with 2023. Last year, employers increased employees’ salaries by an average of 6.7%, an above-average increase of 5.2% from the previous year.
Increasing employee financial compensation is a natural process associated with the annual performance management cycle and is a response to employee personal growth, company growth and inflation as employers are keen to maintain real wage growth.
Source: Procapita Group, 2023-2024 HR Trends and Practices Annual Report
However, financial growth has been more pronounced in the GCC than in other markets, the report said, for a number of reasons, including fierce competition for talent and the growth environment created by the GCC’s strong national economic performance. With inflation rates above average, global economic growth is also more pronounced.
Organizations can design and package raises in a variety of different ways, with performance-based raises and fixed-percent raises being the most common. Given the fierce competition in the market, nearly one-third of organizations have an industry standard matching policy, a process for adjusting salary based on industry peers.
Source: Procapita Group, 2023-2024 HR Trends and Practices Annual Report
In terms of bonuses, that number has increased in recent years. In 2022, 63% of organizations are offering annual bonuses to employees, up from 64% last year.
Although staffing costs are likely to rise, seven in 10 organizations expect employee growth rates to increase in 2024, with Saudi Arabia leading the talent recruitment boom. Mohammed Abu Al-Rob, CEO of Procapita Group, said: “Organizations in Saudi Arabia have the highest expectations for potential growth due to investments in various large-scale projects to promote tourism development and recruitment for large-scale projects such as Neom. . ”
Procapita Group is a pan-regional human capital consulting firm specializing in human capital management. The company is one of the leading companies in this field.
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