GCC Salary Trends Revisited
Content
GCC Salary Trends Revisited
Projections for 2009 based on First Quarter Trends
ADVANTAGE CONSULTING COMPANY
Contents
Introduction Survey Methodology Survey Response Rate Section -1: GCC Salary Trends Average Yearly Salary Increase in GCC Percentage of Salary Increase in GCC (Country wise) Percentage of Salary Increase in GCC (Sector wise) Percentage of Salary Increase in GCC (Job Category wise) Percentage of Salary Increase in GCC (Job Level wise) Section -2: Salary Trends in Kuwait Sector: Banking & Finance Sector: Construction Sector: Oil & Gas Sector: Insurance Sector: Telecommunication Section – 3: Functional & Support Areas Focus Area: Sales & Marketing Focus Area: HR & Administration Focus Area: Information Technology Focus Area: Professional Support 3 4 4 5 5 5 6 7 7 8 8 11 13 15 16 17 17 18 19 20
GCC Salary Trends Revisited
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Introduction
Advantage Consulting is a leading management consulting firm specialized in providing Business Advisory services for large corporate houses in the Middle East. Advantage Consulting has won significant recognition that includes prestigious awards, for their emphasis on transparency and corporate governance to benefit investors and shareholders in the GCC markets. The core business areas of ADVANTAGE are outlined at www.consulting-advantage.com. With the impact of the economic crisis now slowly subsiding we now witness changes in the salary trends after the passing of the first quarter of 2009. Although most organizations have undertaken massive job cuts during the close of 2008 and the beginning of 2009, trends now show that organizations have stepped back from resorting to job cuts. As we revisit the salary trends in the GCC, it is quite clear that the economy is on its upward climb. The GCC economies are now slowly recuperating from the impact of the economic downturn that resulted in massive layoffs that has affected over 1 million people, majority of who were blue collars, in the last quarter of 2008. The KSA Government has revealed that there are over 450,000 jobs being created in the tourism sector in order to cater to tourists as well as pilgrims who visit the region. However, studies confirm that the seemingly positive development of the market will be short-lived and prove to be a “Hit & Run” scenario. The governments of most GCC countries having guaranteed their banks and financial institutions have succeeded in providing some amount of support to the economy. This, however, may not be enough and renewed focus needs to be laid on long term Investment Policies. The following report titled “GCC Salary Trends - Revisited” is a follow up on our previous report titled “Global Financial Crisis and GCC Salary Trends - Report”.
GCC Salary Trends Revisited
© advantage; All Rights Reserved
Page 3
Survey Methodology
With the intention of presenting the most accurate information, data was collected from over 1,000 organizations across the GCC. This report being a follow up to our previous report, we have focused on the major changes that have affected the market and the affect these changes have had on salaries as compared to previous expectations. This report has been compiled using:
1.
Expert knowledge of the Market Insights Division at Advantage Consulting, with respect to salary trends that has been gathered and monitored through up to date market studies.
2. 3.
Regular interaction with corporate clients and the analysis of their responses through online questionnaires. Statistical analysis of salaries of thousands maintained in ADVANTAGE’s proprietary database. of candidates
Survey Response Rate
GCC Salary Trends Revisited
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Section 1:
GCC Salary Trends
1. Average Yearly Salary Increase in GCC
14.00%
12.00%
11.50%
10.00% 8.00% 6.90% 6.20% 6.00% 7.40%
9.30%
Percentage
8.00%
6.20%
4.00%
2.00%
0.00% 2003 2004 2005 2006 Year
*Forecasted
2007
2008
2009*
In contrast to earlier expectation, 2009 is expected to have lower salary increases. Based on trends observed over the first quarter of 2009, it is now expected that 2009 will see only a 6.2% increase in salaries.
2. Percentage of Salary Increase in GCC (Country wise)
100%
8.10% 9.00% 9.70% 10.30% 10.70% 13.60% 7.34%
80% Percentage
9.00% 10.00% 10.50% 11.10% 10.60% 7.70% 5.00% 5.50% 4.60% 6.70% 5.70% 6.00% 5.10% 7.00% 6.10% 6.50% 5.60% 8.00% 6.40% 11.00% 12.10% 10.10% 10.50% 6.53% 5.45% 12.70% 9.80% 6.86% 5.29%
60% 40% 20% 0% 2003 2004 2005 2006
Year Bahrain Kuwait Oman
4.00% 6.00% 5.20%
7.90% 8.10%
5.67%
2007
2008
2009*
Saudi Arabia
Qatar
U.A.E
*Forecasted
Based on trends seen from the first quarter of 2009, the above graph shows the forecasted percentage of salary increases across the GCC for 2009 along with historical data for the period 2003 – 2008.
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Although previous expectations put percentage of salary increases for The UAE and Qatar at 10.9% and 10.2% respectively, it is now expected that these figures will further drop to 7.34% and 6.86% respectively. This is a drastic drop as compared to 2008 figures, for UAE and Qatar, which showed percentage of salary increases to be 13.6% and 12.7% respectively. The other GCC countries have also been affected by the changing markets. It is now expected that Bahrain, Kuwait, Oman and Saudi Arabia, will witness percentage of salary increases to fall to 5.65%, 5.45%, 6.53% and 5.29% respectively.
3. Percentage of Salary Increase in GCC (Sector wise)
35.00% 30.00% 25.00% Percentage 20.00% 15.00% 10.00% 5.00% 0.00% Banking & Finance Construction Oil & Gas Sector
*Forecasted
5.50% 6.59% 7.45% 6.43%
6.60%
15.10% 12.20% 11.00% 4.55% 11.90% 8.10% 9.80% 11.10% 9.70% 11.00%
6.30% Health Care
8.70%
8.40%
FMCG
Telecom
2007
2008
2009*
With the overall salary increase in the GCC subject to change, it is only natural that the various sectors have had an impact. The chart above shows the salary increase e percentages expected for 2009 for various sectors, namely Banking & Finance, Construction, Oil & Gas, Health care, FMCG and Telecom, along with the historical data for 2007 and 2008. The Banking and Finance sector, having seen the worst of the economic downturn, has been considerably affected and it is now seen that overall salary increases will further drop to 6.59% as compared to the previously expected 9.2%. The Construction sector is one of the hardest hit sectors in the GCC. This sector has seen numerous high cost projects being cancelled or delayed indefinitely resulting in a further drop in salary increases from 10.3% to 5.50% for the year 2009. As opposed to the previous findings, we now see that the Oil & Gas and the FMCG sectors are expected to see further decline in the percentage of salary increases to 7.45% and 6.43% respectively. The Healthcare sector is no exception to the change in the markets with salary increases further dipping to 4.55%.
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4. Percentage of Salary Increase (Job Category wise)
100% 90% 80% 70% Percentage 60% 50% 40% 30% 20% 10% 0% Engineering Finance HR IT Job
*Forecasted
7.02%
6.91%
6.53%
6.32%
5.83%
5.83%
5.83%
13.00%
12.80%
12.10%
11.70%
10.80%
10.80%
10.80%
10.50%
10.20%
9.00%
8.50%
8.30%
8.00%
7.00%
Marketing
Admin
Sales
2007
2008
2009*
5. Percentage of Salary Increase (Job Level wise)
14.00% 12.00% 10.00% Percentage 8.00% 6.22% 6.00% 4.00% 2.00% 0.00% Top Executives Middle Management Professional/ Supervisory Clerical/ Administrative Job Level
*Forecasted
11.50%
11.20%
11.10%
10.80%
11.50%
6.80%
6.25%
5.83%
6.00%
Manual
2008
2009*
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Section 2: Salary Trends in Kuwait
Sector: Banking & Finance
Key Trends
•
The Banking and Finance sector, which was drastically affected by the economic downturn, has now shown signs of recuperating from its effects.
•
Layoffs in the Banking sector have dropped significantly to 13.5 percent of their total workforce, compared to the 24.5 percent layoff the sector experienced in the second half of 2008. • Banking professionals in the GCC countries have experienced less severe cuts in salaries and bonuses, relative to their counterparts in other major financial centers. • The overall employment outlook for the banking sector remains overtly cautious, with most banking institutions freezing recruitment drives for the upcoming periods.
•
Middle Management roles in the Customer Relationship Management function are the most sought after roles. IT, amongst other Support roles, has also gained considerable importance. Banking & Finance (Base Salary in Kuwaiti Dinars)
Job Position Monthly Min Max Annual Max
Min
Typical
Investment Banking Head of Investment Banking Director Vice President Manager, Investment Banking Manager, Placement Manager, M&A Investment Analyst 6,100 4,950 3,150 2,330 2,060 1,960 1,425 8,400 7,350 5,460 4,240 3,901 3,710 2,760 Treasury Head of Treasury Head of Sales 5,025 3,090 6,968 5,408 60,300 37,080 83,616 64,896 70,510 51,160 73,200 59,400 37,800 27,960 24,720 23,520 17,100 100,800 88,200 65,520 50,880 46,810 44,520 33,120 87,360 73,080 51,660 38,160 34,340 33,580 26,830
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Job Position Senior Dealer/Sales Dealer/Sales Asst. Dealer/Sales
Monthly Min Max 2,200 1,400 940 3,885 2,750 1,970
Min 26,400 16,800 11,280
Annual Max 46,620 33,000 23,643
Typical 32,760 26,710 16,610
Consumer Banking – Credit & Risk Head of Risk Operational Risk Manager Head of Compliance Compliance Manager Compliance Officer Head of Collections Collections Manager Head of Retail Credit Head of Credit Policy Head of Credit Analytics Head of Product Development Product Manager Product Officer Head of Retail Head of Cards Operations Head of Credit Cards Branch Manager 3,070 2,220 2,700 1,880 950 2,310 1,420 2,700 2,320 2,280 5,800 4,345 4,260 3,150 1,980 3,475 2,220 4,260 3,740 3,710 36,840 26,640 32,400 22,560 11,400 27,720 17,045 32,400 27,840 27,360 69,600 52,140 51,120 37,800 23,760 41,700 26,640 51,120 44,880 44,520 51,170 38,160 40,870 29,890 17,250 34,320 21,620 44,550 35,190 34,940
Consumer Banking – Retail 2,320 1,580 790 3,470 2,700 3,090 1,540 3,870 3,150 1,575 6,190 4,630 5,020 2,790 27,840 18,960 9,480 41,640 32,400 37,080 18,480 46,440 37,800 18,900 74,280 55,560 60,240 33,480 35,190 26,710 13,420 55,530 41,800 46,425 23,640
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Private Banking Head of Private Banking Private Banker Investment Specialist Product Development Manager Director - Institutional Sales VP - Institutional Sales Head of Asset Management Portfolio Director Portfolio Manger 3,480 1,960 1,810 2,330 5,020 3,920 3,790 3,550 41,760 23,520 21,720 27,960 60,240 47,040 45,480 42,600 48,170 33,700 31,950 34,340
Banking - Asset Management 4,300 3,150 4,620 3,480 1,960 6,615 4,725 6,965 5,410 3,550 51,600 37,800 55,440 41,760 23,520 79,380 56,700 83,580 64,920 42,600 62,370 45,360 66,760 51,790 30,140
Finance & Accounts Chief Internal Auditor Financial Controller Financial Planning & Analysis Manager Internal Auditor Finance Manager Financial Analyst Chief Accountant Senior Accountant Accountant 2,700 2,700 1,730 1,590 1,750 950 1,170 780 470 3,840 3,790 3,140 2,380 3,230 1,810 1,970 1,540 920 32,400 32,400 20,760 19,080 21,000 11,400 14,040 9,360 5,640 46,080 45,480 37,680 28,560 38,760 21,720 23,643 18,480 11,040 36,810 36,190 27,340 22,640 27,980 15,330 17,250 12,780 7,660
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Sector: Construction
Key Trends
•
The Construction sector has been drastically impacted by the economic downturn, with numerous real estate projects being suspended or cancelled and several real estate firms facing bankruptcy, resulting in a drastic reduction in the number of employment opportunities available. • This sector has experienced the lowest pay rise, relative to other sectors, across the GCC. Job Security in this sector also poses a significant challenge to attracting key talent, as the sector continues its correction.
•
This sector has witnessed a decrease in the percentage of layoffs to 22 percent, relative to the 48 percent layoff in 2008. • Base Salary percentage increases for Executive level employees are lower than those for Middle Management, Professional and other levels of employees. • Engineering roles are seen to assume greater importance with demand for high caliber professionals on the rise. Construction (Base Salary in Kuwaiti Dinars)
Job Position General Manager Property Manager Projects Director Design Manager Projects Manager Commercial Director Commercial Manager MEP Managers Design Engineer Planning Engineer Project Engineer Construction Engineer Monthly Min Max 3,480 1,970 2,620 1,970 1,530 2,475 1,725 1,655 1,160 1,060 945 945 5,400 3,150 4,310 3,550 2,750 4,260 3,150 3,155 1,960 1,740 1,570 1,590 Annual Max 64,800 37,800 51,720 42,600 33,000 51,120 37,800 37,860 23,520 20,880 18,840 19,080
Min 41,760 23,640 31,440 23,640 18,360 29,702 20,700 19,860 13,920 12,720 11,340 11,340
Typical 51,160 30,520 39,930 33,070 22,890 37,060 30,140 29,250 18,440 17,040 15,260 13,350
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Job Position Architect Quantity Surveyor Foreman – Construction AutoCAD Operator Draughtsman Technician
Monthly Min Max 790 590 475 425 390 190 1,420 945 740 720 680 370
Min 9,480 7,080 5,700 5,100 4,680 2,280
Annual Max 17,040 11,340 8,880 8,640 8,160 4,440
Typical 14,310 8,940 7,030 6,770 6,640 3,060
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Sector: Oil & Gas
Key Trends
•
The impact of the economic downturn having caused drastic decline in the oil prices has continued to slow down the pace of growth of the Oil & Gas sector. • The delay in the fourth refinery project and the absence of new pipeline expansion projects has had an indirect effect on employment.
• •
The percentage layoffs in the Oil and Gas Sector have decreased by 9.5 percent, compared to 13.8 percent the sector witnessed in 2008. Geologist and Reservoir Engineer roles are projected to get more importance relative to other roles in the sector.
Oil & Gas (Base Salary in Kuwaiti Dinars)
Monthly Job Position Technical Director Projects Director Pipeline Manager Operations Manager Technical Manager Project Manager – Oil & Gas Contracts Manager Petroleum Engineer Reservoir Engineer Operator – Oil & Gas Geologist Chemist Production Supervisor – Oil & Gas Surveyor – Oil & Gas Specialist – Drilling Rig Min 3,700 3,480 2,340 2,490 2,340 1,950 2,200 1,400 1,550 945 1,110 665 1,060 1,060 1,960 Max 6,030 5,780 3,750 3,880 3,740 3,125 3,515 2,730 2,730 1,730 2,090 1,420 1,885 1,960 2,990 Min 44,400 41,760 28,080 29,880 28,080 23,400 26,400 16,800 18,600 11,340 13,320 7,980 12,720 12,720 23,520 Annual Max 72,360 69,360 45,000 46,560 44,880 37,500 42,180 32,760 32,760 20,760 25,080 17,045 22,620 23,520 35,880 Typical 57,400 55,660 37,420 38,430 34,650 29,860 32,760 26,460 27,720 16,535 18,825 13,355 17,170 17,040 30,270
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Monthly Job Position Driller Technician Min 845 530 Max 1,535 900 Min 10,140 6,360
Annual Max 18,420 10,800 Typical 15,260 8,260
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Sector: Insurance
Key Trends
•
Growth in the insurance industry is waning slightly due to the economic slowdown, resulting in a decrease in employment opportunities available within the sector.
•
The Insurance sector is expected to witness fewer job cuts than other sectors in GCC countries. • Salaries have risen marginally and high caliber individuals, as always, can demand a premium.
•
Treaty Accountants, Underwriting, Claims and Customer Relationship roles have assumed greater significance relative to other jobs categories in this sector. Insurance (Base Salary in Kuwaiti Dinars)
Job Position Director Insurance Insurance Manager Reinsurance Manager Risk Manager Branch Manager Customer Billing Manager Claims Manager Underwriter Insurance Officer Inspection Officer Broker Claims/ Field Adjuster Claims Analyst Claims Representative Loss Control Inspector Estimator Insurance Agent Monthly Min Max 3,470 1,885 2,310 2,010 1,420 1,375 2,040 1,975 945 990 550 595 945 550 595 555 475 5,790 2,980 3,860 4,080 2,120 2,045 3,710 3,790 1,540 1,660 870 1,030 1,730 905 1,030 870 745 Annual Max 69,480 35,760 46,320 48,960 25,440 24,540 44,520 45,480 18,480 19,920 10,440 12,360 20,760 10,860 12,360 10,440 8,940
Min 41,640 22,620 27,720 24,120 17,045 16,500 24,480 23,700 11,340 11,885 6,600 7,140 11,340 6,600 7,140 6,660 5,700
Typical 55,660 27,980 34,940 35,610 20,980 19,080 33,070 33,690 14,050 14,690 9,960 10,470 15,080 8,300 9,450 8,170 7,020
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Sector: Telecommunication
Key Trends • The Telecom sector has shown signs of stability, having recovered from the initial impact of the economic crisis. Sustainability of current revenue streams, however, pose a significant challenge for Telecom companies. • Salaries are expected to increase at a higher rate for the Telecom sector, relative to the increases for other sectors.
•
Layoffs in the Telecom Sector have decreased significantly, as compared to previous trends recorded during the beginning of the crisis. • Business Development and IT related support roles have gained prominence in the sector, relative to other job categories. Telecommunication (Base Salary in Kuwaiti Dinars)
Job Position Director Telecom Operations Vice President – Telecom Transmission Manager Network Manager Programme Manager Security Engineer Test Engineer -Telecom RF Design Engineer RF Test Engineer DSP Engineer CISCO Telecom Engineer Access Voice Architect Network Data Analyst (VoIP) Network Support Engineer Signal & Telecom Support Engineer Monthly Min 3,845 2,730 1,975 1,880 2,040 985 1,270 1,160 1,060 1,275 1,420 1,320 1,160 1,060 1,110 Max 6,180 4,680 3,620 3,580 3,550 1,960 2,380 2,270 2,220 2,360 2,520 2,360 2,225 2,230 2,120 Min 46,140 32,760 23,700 22,560 24,480 11,820 15,240 13,920 12,720 15,300 17,045 15,840 13,920 12,720 13,320 Annual Max 74,160 56,160 43,440 42,960 42,600 23,520 28,560 27,240 26,640 28,320 30,240 28,320 26,700 26,760 25,440 Typical 59,900 41,580 33,070 32,430 31,800 13,990 20,350 19,710 19,080 20,350 20,980 19,080 17,800 18,440 17,800
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Section 3: Functional and Support Areas
Focus Area: Sales & Marketing
Sales & Marketing (Base Salary in Kuwaiti Dinars)
Job Position Sales Director Marketing Director Sales Manager Marketing Manager Corp. Communications Manager Product & Brand Manager Marketing Officer Sales Officer Corp. Communications Officer Marketing Executive Sales Executive Corp. Communications Executive Marketing Assistant Sales Assistant Corp. Communications Assistant Monthly Min Max 3,080 3,220 1,730 1,835 1,680 1,260 900 845 785 630 580 560 345 320 320 4,620 4,990 3,090 3,360 2,940 1,940 1,530 1,430 1,370 980 930 870 585 530 500 Min 36,960 38,640 20,760 22,020 20,160 15,120 10,800 10,140 9,420 7,560 6,960 6,720 4,140 3,840 3,840 Annual Max 55,440 59,880 37,080 40,320 35,280 23,280 18,360 17,160 16,440 11,760 11,160 10,440 7,020 6,360 6,000 Typical 47,420 48,670 26,460 28,980 25,200 17,640 13,350 124,020 11,765 9,585 8,300 7,660 5,110 4,850 4,600
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Focus Area: Human Resources & Administration
Human Resources & Administration (Base Salary in Kuwaiti Dinars)
Job Position HR Director HR Manager Administration Manager Compensation & Benefits Manager Recruitment Manager Training & Dev. Manager HR Officer Administration Officer Recruitment Officer Training & Dev. Officer Compensation & Benefits Officer HR Analyst HR Specialist HR Executive Administration Executive Camp Boss Transport Coordinator Mandoub Messenger Security Officer Security Guard Driver Office Boy Tea Boy Monthly Min Max 2,700 1,710 1,520 1,785 1,575 1,520 795 680 795 745 850 950 945 630 580 275 250 275 135 370 125 155 140 120 4,625 3,090 2,625 2,990 2,885 2,730 1,325 1,160 1,325 1,270 1,370 1,590 1,725 975 920 460 420 445 315 500 250 270 240 200 Min 32,400 20,520 18,240 21,420 18,900 18,240 9,540 8,160 9,540 8,940 10,200 11,400 11,340 7,560 6,960 3,300 3,000 3,300 1,620 4,440 1,500 1,860 1,680 1,440 Annual Max 55,500 37,080 31,500 35,880 34,620 32,760 15,900 13,920 15,900 15,240 16,440 19,080 20,700 11,700 11,040 5,520 5,040 5,340 3,780 6,000 3,000 3,240 2,880 2,400 Typical 43,680 26,460 22,680 25,200 23,310 21,420 10,810 9,920 10,170 10,170 11,440 15,260 15,900 9,150 8,260 4,130 3,810 4,450 2,540 5,080 2,160 2,410 2,090 1,900
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Focus Area: Information Technology
Information Technology (Base Salary in Kuwaiti Dinars)
Monthly Job Position Director IT Vice President IT Manager IT Network Administrator Database Administrator Systems Engineer Officer IT Systems Analyst Programmer Web Designer Min 3,480 2,340 1,970 940 1,010 1,060 875 1,160 1,050 675 Max 5,400 4,510 3,550 2,010 2,120 2,220 1,490 1,960 1,800 1,170 Min 41,760 28,080 23,640 11,280 12,120 12,720 10,500 13,920 12,600 8,100 Annual Max 64,800 54,120 42,600 24,120 25,440 26,640 17,880 23,520 21,600 14,040 Typical 51,160 40,950 31,800 15,265 15,265 18,825 14,050 17,170 15,260 10,860
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Focus Area: Professional Support
Professional Support (Base Salary in Kuwaiti Dinars)
Job Position Office Manager Executive Secretary Executive Assistant Technical Assistant Secretary Receptionist Data Entry Operator Monthly Min Max 990 775 365 340 310 285 180 1,575 1,260 630 575 630 580 315 Annual Max 18,900 15,120 7,560 6,900 7,560 6,960 3,780
Min 11,880 9,300 4,380 4,080 3,720 3,420 2,160
Typical 15,120 11,340 5,670 5,040 5,670 5,040 2,835
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Published by ADVANTAGE Consulting Kuwait T: +965 2 249 7058 F: +965 2 245 8578 E: [email protected] consulting-advantage.com ,7th Floor, City Tower Al Sharq, Kuwait
Disclaimer The data provided in this report is “as-is” and ADVANTAGE makes no warranty, either express or implied, including but not limited to, warranties of correctness and fitness for a particular purpose. In no event will ADVANTAGE CONSULTING COMPANY be liable for any indirect, special, consequential or other damages however caused.
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Projections for 2009 based on First Quarter Trends
ADVANTAGE CONSULTING COMPANY
Contents
Introduction Survey Methodology Survey Response Rate Section -1: GCC Salary Trends Average Yearly Salary Increase in GCC Percentage of Salary Increase in GCC (Country wise) Percentage of Salary Increase in GCC (Sector wise) Percentage of Salary Increase in GCC (Job Category wise) Percentage of Salary Increase in GCC (Job Level wise) Section -2: Salary Trends in Kuwait Sector: Banking & Finance Sector: Construction Sector: Oil & Gas Sector: Insurance Sector: Telecommunication Section – 3: Functional & Support Areas Focus Area: Sales & Marketing Focus Area: HR & Administration Focus Area: Information Technology Focus Area: Professional Support 3 4 4 5 5 5 6 7 7 8 8 11 13 15 16 17 17 18 19 20
GCC Salary Trends Revisited
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Page 2
Introduction
Advantage Consulting is a leading management consulting firm specialized in providing Business Advisory services for large corporate houses in the Middle East. Advantage Consulting has won significant recognition that includes prestigious awards, for their emphasis on transparency and corporate governance to benefit investors and shareholders in the GCC markets. The core business areas of ADVANTAGE are outlined at www.consulting-advantage.com. With the impact of the economic crisis now slowly subsiding we now witness changes in the salary trends after the passing of the first quarter of 2009. Although most organizations have undertaken massive job cuts during the close of 2008 and the beginning of 2009, trends now show that organizations have stepped back from resorting to job cuts. As we revisit the salary trends in the GCC, it is quite clear that the economy is on its upward climb. The GCC economies are now slowly recuperating from the impact of the economic downturn that resulted in massive layoffs that has affected over 1 million people, majority of who were blue collars, in the last quarter of 2008. The KSA Government has revealed that there are over 450,000 jobs being created in the tourism sector in order to cater to tourists as well as pilgrims who visit the region. However, studies confirm that the seemingly positive development of the market will be short-lived and prove to be a “Hit & Run” scenario. The governments of most GCC countries having guaranteed their banks and financial institutions have succeeded in providing some amount of support to the economy. This, however, may not be enough and renewed focus needs to be laid on long term Investment Policies. The following report titled “GCC Salary Trends - Revisited” is a follow up on our previous report titled “Global Financial Crisis and GCC Salary Trends - Report”.
GCC Salary Trends Revisited
© advantage; All Rights Reserved
Page 3
Survey Methodology
With the intention of presenting the most accurate information, data was collected from over 1,000 organizations across the GCC. This report being a follow up to our previous report, we have focused on the major changes that have affected the market and the affect these changes have had on salaries as compared to previous expectations. This report has been compiled using:
1.
Expert knowledge of the Market Insights Division at Advantage Consulting, with respect to salary trends that has been gathered and monitored through up to date market studies.
2. 3.
Regular interaction with corporate clients and the analysis of their responses through online questionnaires. Statistical analysis of salaries of thousands maintained in ADVANTAGE’s proprietary database. of candidates
Survey Response Rate
GCC Salary Trends Revisited
© advantage; All Rights Reserved
Page 4
Section 1:
GCC Salary Trends
1. Average Yearly Salary Increase in GCC
14.00%
12.00%
11.50%
10.00% 8.00% 6.90% 6.20% 6.00% 7.40%
9.30%
Percentage
8.00%
6.20%
4.00%
2.00%
0.00% 2003 2004 2005 2006 Year
*Forecasted
2007
2008
2009*
In contrast to earlier expectation, 2009 is expected to have lower salary increases. Based on trends observed over the first quarter of 2009, it is now expected that 2009 will see only a 6.2% increase in salaries.
2. Percentage of Salary Increase in GCC (Country wise)
100%
8.10% 9.00% 9.70% 10.30% 10.70% 13.60% 7.34%
80% Percentage
9.00% 10.00% 10.50% 11.10% 10.60% 7.70% 5.00% 5.50% 4.60% 6.70% 5.70% 6.00% 5.10% 7.00% 6.10% 6.50% 5.60% 8.00% 6.40% 11.00% 12.10% 10.10% 10.50% 6.53% 5.45% 12.70% 9.80% 6.86% 5.29%
60% 40% 20% 0% 2003 2004 2005 2006
Year Bahrain Kuwait Oman
4.00% 6.00% 5.20%
7.90% 8.10%
5.67%
2007
2008
2009*
Saudi Arabia
Qatar
U.A.E
*Forecasted
Based on trends seen from the first quarter of 2009, the above graph shows the forecasted percentage of salary increases across the GCC for 2009 along with historical data for the period 2003 – 2008.
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Although previous expectations put percentage of salary increases for The UAE and Qatar at 10.9% and 10.2% respectively, it is now expected that these figures will further drop to 7.34% and 6.86% respectively. This is a drastic drop as compared to 2008 figures, for UAE and Qatar, which showed percentage of salary increases to be 13.6% and 12.7% respectively. The other GCC countries have also been affected by the changing markets. It is now expected that Bahrain, Kuwait, Oman and Saudi Arabia, will witness percentage of salary increases to fall to 5.65%, 5.45%, 6.53% and 5.29% respectively.
3. Percentage of Salary Increase in GCC (Sector wise)
35.00% 30.00% 25.00% Percentage 20.00% 15.00% 10.00% 5.00% 0.00% Banking & Finance Construction Oil & Gas Sector
*Forecasted
5.50% 6.59% 7.45% 6.43%
6.60%
15.10% 12.20% 11.00% 4.55% 11.90% 8.10% 9.80% 11.10% 9.70% 11.00%
6.30% Health Care
8.70%
8.40%
FMCG
Telecom
2007
2008
2009*
With the overall salary increase in the GCC subject to change, it is only natural that the various sectors have had an impact. The chart above shows the salary increase e percentages expected for 2009 for various sectors, namely Banking & Finance, Construction, Oil & Gas, Health care, FMCG and Telecom, along with the historical data for 2007 and 2008. The Banking and Finance sector, having seen the worst of the economic downturn, has been considerably affected and it is now seen that overall salary increases will further drop to 6.59% as compared to the previously expected 9.2%. The Construction sector is one of the hardest hit sectors in the GCC. This sector has seen numerous high cost projects being cancelled or delayed indefinitely resulting in a further drop in salary increases from 10.3% to 5.50% for the year 2009. As opposed to the previous findings, we now see that the Oil & Gas and the FMCG sectors are expected to see further decline in the percentage of salary increases to 7.45% and 6.43% respectively. The Healthcare sector is no exception to the change in the markets with salary increases further dipping to 4.55%.
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4. Percentage of Salary Increase (Job Category wise)
100% 90% 80% 70% Percentage 60% 50% 40% 30% 20% 10% 0% Engineering Finance HR IT Job
*Forecasted
7.02%
6.91%
6.53%
6.32%
5.83%
5.83%
5.83%
13.00%
12.80%
12.10%
11.70%
10.80%
10.80%
10.80%
10.50%
10.20%
9.00%
8.50%
8.30%
8.00%
7.00%
Marketing
Admin
Sales
2007
2008
2009*
5. Percentage of Salary Increase (Job Level wise)
14.00% 12.00% 10.00% Percentage 8.00% 6.22% 6.00% 4.00% 2.00% 0.00% Top Executives Middle Management Professional/ Supervisory Clerical/ Administrative Job Level
*Forecasted
11.50%
11.20%
11.10%
10.80%
11.50%
6.80%
6.25%
5.83%
6.00%
Manual
2008
2009*
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Section 2: Salary Trends in Kuwait
Sector: Banking & Finance
Key Trends
•
The Banking and Finance sector, which was drastically affected by the economic downturn, has now shown signs of recuperating from its effects.
•
Layoffs in the Banking sector have dropped significantly to 13.5 percent of their total workforce, compared to the 24.5 percent layoff the sector experienced in the second half of 2008. • Banking professionals in the GCC countries have experienced less severe cuts in salaries and bonuses, relative to their counterparts in other major financial centers. • The overall employment outlook for the banking sector remains overtly cautious, with most banking institutions freezing recruitment drives for the upcoming periods.
•
Middle Management roles in the Customer Relationship Management function are the most sought after roles. IT, amongst other Support roles, has also gained considerable importance. Banking & Finance (Base Salary in Kuwaiti Dinars)
Job Position Monthly Min Max Annual Max
Min
Typical
Investment Banking Head of Investment Banking Director Vice President Manager, Investment Banking Manager, Placement Manager, M&A Investment Analyst 6,100 4,950 3,150 2,330 2,060 1,960 1,425 8,400 7,350 5,460 4,240 3,901 3,710 2,760 Treasury Head of Treasury Head of Sales 5,025 3,090 6,968 5,408 60,300 37,080 83,616 64,896 70,510 51,160 73,200 59,400 37,800 27,960 24,720 23,520 17,100 100,800 88,200 65,520 50,880 46,810 44,520 33,120 87,360 73,080 51,660 38,160 34,340 33,580 26,830
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Job Position Senior Dealer/Sales Dealer/Sales Asst. Dealer/Sales
Monthly Min Max 2,200 1,400 940 3,885 2,750 1,970
Min 26,400 16,800 11,280
Annual Max 46,620 33,000 23,643
Typical 32,760 26,710 16,610
Consumer Banking – Credit & Risk Head of Risk Operational Risk Manager Head of Compliance Compliance Manager Compliance Officer Head of Collections Collections Manager Head of Retail Credit Head of Credit Policy Head of Credit Analytics Head of Product Development Product Manager Product Officer Head of Retail Head of Cards Operations Head of Credit Cards Branch Manager 3,070 2,220 2,700 1,880 950 2,310 1,420 2,700 2,320 2,280 5,800 4,345 4,260 3,150 1,980 3,475 2,220 4,260 3,740 3,710 36,840 26,640 32,400 22,560 11,400 27,720 17,045 32,400 27,840 27,360 69,600 52,140 51,120 37,800 23,760 41,700 26,640 51,120 44,880 44,520 51,170 38,160 40,870 29,890 17,250 34,320 21,620 44,550 35,190 34,940
Consumer Banking – Retail 2,320 1,580 790 3,470 2,700 3,090 1,540 3,870 3,150 1,575 6,190 4,630 5,020 2,790 27,840 18,960 9,480 41,640 32,400 37,080 18,480 46,440 37,800 18,900 74,280 55,560 60,240 33,480 35,190 26,710 13,420 55,530 41,800 46,425 23,640
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Private Banking Head of Private Banking Private Banker Investment Specialist Product Development Manager Director - Institutional Sales VP - Institutional Sales Head of Asset Management Portfolio Director Portfolio Manger 3,480 1,960 1,810 2,330 5,020 3,920 3,790 3,550 41,760 23,520 21,720 27,960 60,240 47,040 45,480 42,600 48,170 33,700 31,950 34,340
Banking - Asset Management 4,300 3,150 4,620 3,480 1,960 6,615 4,725 6,965 5,410 3,550 51,600 37,800 55,440 41,760 23,520 79,380 56,700 83,580 64,920 42,600 62,370 45,360 66,760 51,790 30,140
Finance & Accounts Chief Internal Auditor Financial Controller Financial Planning & Analysis Manager Internal Auditor Finance Manager Financial Analyst Chief Accountant Senior Accountant Accountant 2,700 2,700 1,730 1,590 1,750 950 1,170 780 470 3,840 3,790 3,140 2,380 3,230 1,810 1,970 1,540 920 32,400 32,400 20,760 19,080 21,000 11,400 14,040 9,360 5,640 46,080 45,480 37,680 28,560 38,760 21,720 23,643 18,480 11,040 36,810 36,190 27,340 22,640 27,980 15,330 17,250 12,780 7,660
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Sector: Construction
Key Trends
•
The Construction sector has been drastically impacted by the economic downturn, with numerous real estate projects being suspended or cancelled and several real estate firms facing bankruptcy, resulting in a drastic reduction in the number of employment opportunities available. • This sector has experienced the lowest pay rise, relative to other sectors, across the GCC. Job Security in this sector also poses a significant challenge to attracting key talent, as the sector continues its correction.
•
This sector has witnessed a decrease in the percentage of layoffs to 22 percent, relative to the 48 percent layoff in 2008. • Base Salary percentage increases for Executive level employees are lower than those for Middle Management, Professional and other levels of employees. • Engineering roles are seen to assume greater importance with demand for high caliber professionals on the rise. Construction (Base Salary in Kuwaiti Dinars)
Job Position General Manager Property Manager Projects Director Design Manager Projects Manager Commercial Director Commercial Manager MEP Managers Design Engineer Planning Engineer Project Engineer Construction Engineer Monthly Min Max 3,480 1,970 2,620 1,970 1,530 2,475 1,725 1,655 1,160 1,060 945 945 5,400 3,150 4,310 3,550 2,750 4,260 3,150 3,155 1,960 1,740 1,570 1,590 Annual Max 64,800 37,800 51,720 42,600 33,000 51,120 37,800 37,860 23,520 20,880 18,840 19,080
Min 41,760 23,640 31,440 23,640 18,360 29,702 20,700 19,860 13,920 12,720 11,340 11,340
Typical 51,160 30,520 39,930 33,070 22,890 37,060 30,140 29,250 18,440 17,040 15,260 13,350
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Job Position Architect Quantity Surveyor Foreman – Construction AutoCAD Operator Draughtsman Technician
Monthly Min Max 790 590 475 425 390 190 1,420 945 740 720 680 370
Min 9,480 7,080 5,700 5,100 4,680 2,280
Annual Max 17,040 11,340 8,880 8,640 8,160 4,440
Typical 14,310 8,940 7,030 6,770 6,640 3,060
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Sector: Oil & Gas
Key Trends
•
The impact of the economic downturn having caused drastic decline in the oil prices has continued to slow down the pace of growth of the Oil & Gas sector. • The delay in the fourth refinery project and the absence of new pipeline expansion projects has had an indirect effect on employment.
• •
The percentage layoffs in the Oil and Gas Sector have decreased by 9.5 percent, compared to 13.8 percent the sector witnessed in 2008. Geologist and Reservoir Engineer roles are projected to get more importance relative to other roles in the sector.
Oil & Gas (Base Salary in Kuwaiti Dinars)
Monthly Job Position Technical Director Projects Director Pipeline Manager Operations Manager Technical Manager Project Manager – Oil & Gas Contracts Manager Petroleum Engineer Reservoir Engineer Operator – Oil & Gas Geologist Chemist Production Supervisor – Oil & Gas Surveyor – Oil & Gas Specialist – Drilling Rig Min 3,700 3,480 2,340 2,490 2,340 1,950 2,200 1,400 1,550 945 1,110 665 1,060 1,060 1,960 Max 6,030 5,780 3,750 3,880 3,740 3,125 3,515 2,730 2,730 1,730 2,090 1,420 1,885 1,960 2,990 Min 44,400 41,760 28,080 29,880 28,080 23,400 26,400 16,800 18,600 11,340 13,320 7,980 12,720 12,720 23,520 Annual Max 72,360 69,360 45,000 46,560 44,880 37,500 42,180 32,760 32,760 20,760 25,080 17,045 22,620 23,520 35,880 Typical 57,400 55,660 37,420 38,430 34,650 29,860 32,760 26,460 27,720 16,535 18,825 13,355 17,170 17,040 30,270
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Monthly Job Position Driller Technician Min 845 530 Max 1,535 900 Min 10,140 6,360
Annual Max 18,420 10,800 Typical 15,260 8,260
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Sector: Insurance
Key Trends
•
Growth in the insurance industry is waning slightly due to the economic slowdown, resulting in a decrease in employment opportunities available within the sector.
•
The Insurance sector is expected to witness fewer job cuts than other sectors in GCC countries. • Salaries have risen marginally and high caliber individuals, as always, can demand a premium.
•
Treaty Accountants, Underwriting, Claims and Customer Relationship roles have assumed greater significance relative to other jobs categories in this sector. Insurance (Base Salary in Kuwaiti Dinars)
Job Position Director Insurance Insurance Manager Reinsurance Manager Risk Manager Branch Manager Customer Billing Manager Claims Manager Underwriter Insurance Officer Inspection Officer Broker Claims/ Field Adjuster Claims Analyst Claims Representative Loss Control Inspector Estimator Insurance Agent Monthly Min Max 3,470 1,885 2,310 2,010 1,420 1,375 2,040 1,975 945 990 550 595 945 550 595 555 475 5,790 2,980 3,860 4,080 2,120 2,045 3,710 3,790 1,540 1,660 870 1,030 1,730 905 1,030 870 745 Annual Max 69,480 35,760 46,320 48,960 25,440 24,540 44,520 45,480 18,480 19,920 10,440 12,360 20,760 10,860 12,360 10,440 8,940
Min 41,640 22,620 27,720 24,120 17,045 16,500 24,480 23,700 11,340 11,885 6,600 7,140 11,340 6,600 7,140 6,660 5,700
Typical 55,660 27,980 34,940 35,610 20,980 19,080 33,070 33,690 14,050 14,690 9,960 10,470 15,080 8,300 9,450 8,170 7,020
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Sector: Telecommunication
Key Trends • The Telecom sector has shown signs of stability, having recovered from the initial impact of the economic crisis. Sustainability of current revenue streams, however, pose a significant challenge for Telecom companies. • Salaries are expected to increase at a higher rate for the Telecom sector, relative to the increases for other sectors.
•
Layoffs in the Telecom Sector have decreased significantly, as compared to previous trends recorded during the beginning of the crisis. • Business Development and IT related support roles have gained prominence in the sector, relative to other job categories. Telecommunication (Base Salary in Kuwaiti Dinars)
Job Position Director Telecom Operations Vice President – Telecom Transmission Manager Network Manager Programme Manager Security Engineer Test Engineer -Telecom RF Design Engineer RF Test Engineer DSP Engineer CISCO Telecom Engineer Access Voice Architect Network Data Analyst (VoIP) Network Support Engineer Signal & Telecom Support Engineer Monthly Min 3,845 2,730 1,975 1,880 2,040 985 1,270 1,160 1,060 1,275 1,420 1,320 1,160 1,060 1,110 Max 6,180 4,680 3,620 3,580 3,550 1,960 2,380 2,270 2,220 2,360 2,520 2,360 2,225 2,230 2,120 Min 46,140 32,760 23,700 22,560 24,480 11,820 15,240 13,920 12,720 15,300 17,045 15,840 13,920 12,720 13,320 Annual Max 74,160 56,160 43,440 42,960 42,600 23,520 28,560 27,240 26,640 28,320 30,240 28,320 26,700 26,760 25,440 Typical 59,900 41,580 33,070 32,430 31,800 13,990 20,350 19,710 19,080 20,350 20,980 19,080 17,800 18,440 17,800
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Section 3: Functional and Support Areas
Focus Area: Sales & Marketing
Sales & Marketing (Base Salary in Kuwaiti Dinars)
Job Position Sales Director Marketing Director Sales Manager Marketing Manager Corp. Communications Manager Product & Brand Manager Marketing Officer Sales Officer Corp. Communications Officer Marketing Executive Sales Executive Corp. Communications Executive Marketing Assistant Sales Assistant Corp. Communications Assistant Monthly Min Max 3,080 3,220 1,730 1,835 1,680 1,260 900 845 785 630 580 560 345 320 320 4,620 4,990 3,090 3,360 2,940 1,940 1,530 1,430 1,370 980 930 870 585 530 500 Min 36,960 38,640 20,760 22,020 20,160 15,120 10,800 10,140 9,420 7,560 6,960 6,720 4,140 3,840 3,840 Annual Max 55,440 59,880 37,080 40,320 35,280 23,280 18,360 17,160 16,440 11,760 11,160 10,440 7,020 6,360 6,000 Typical 47,420 48,670 26,460 28,980 25,200 17,640 13,350 124,020 11,765 9,585 8,300 7,660 5,110 4,850 4,600
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Focus Area: Human Resources & Administration
Human Resources & Administration (Base Salary in Kuwaiti Dinars)
Job Position HR Director HR Manager Administration Manager Compensation & Benefits Manager Recruitment Manager Training & Dev. Manager HR Officer Administration Officer Recruitment Officer Training & Dev. Officer Compensation & Benefits Officer HR Analyst HR Specialist HR Executive Administration Executive Camp Boss Transport Coordinator Mandoub Messenger Security Officer Security Guard Driver Office Boy Tea Boy Monthly Min Max 2,700 1,710 1,520 1,785 1,575 1,520 795 680 795 745 850 950 945 630 580 275 250 275 135 370 125 155 140 120 4,625 3,090 2,625 2,990 2,885 2,730 1,325 1,160 1,325 1,270 1,370 1,590 1,725 975 920 460 420 445 315 500 250 270 240 200 Min 32,400 20,520 18,240 21,420 18,900 18,240 9,540 8,160 9,540 8,940 10,200 11,400 11,340 7,560 6,960 3,300 3,000 3,300 1,620 4,440 1,500 1,860 1,680 1,440 Annual Max 55,500 37,080 31,500 35,880 34,620 32,760 15,900 13,920 15,900 15,240 16,440 19,080 20,700 11,700 11,040 5,520 5,040 5,340 3,780 6,000 3,000 3,240 2,880 2,400 Typical 43,680 26,460 22,680 25,200 23,310 21,420 10,810 9,920 10,170 10,170 11,440 15,260 15,900 9,150 8,260 4,130 3,810 4,450 2,540 5,080 2,160 2,410 2,090 1,900
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Focus Area: Information Technology
Information Technology (Base Salary in Kuwaiti Dinars)
Monthly Job Position Director IT Vice President IT Manager IT Network Administrator Database Administrator Systems Engineer Officer IT Systems Analyst Programmer Web Designer Min 3,480 2,340 1,970 940 1,010 1,060 875 1,160 1,050 675 Max 5,400 4,510 3,550 2,010 2,120 2,220 1,490 1,960 1,800 1,170 Min 41,760 28,080 23,640 11,280 12,120 12,720 10,500 13,920 12,600 8,100 Annual Max 64,800 54,120 42,600 24,120 25,440 26,640 17,880 23,520 21,600 14,040 Typical 51,160 40,950 31,800 15,265 15,265 18,825 14,050 17,170 15,260 10,860
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Focus Area: Professional Support
Professional Support (Base Salary in Kuwaiti Dinars)
Job Position Office Manager Executive Secretary Executive Assistant Technical Assistant Secretary Receptionist Data Entry Operator Monthly Min Max 990 775 365 340 310 285 180 1,575 1,260 630 575 630 580 315 Annual Max 18,900 15,120 7,560 6,900 7,560 6,960 3,780
Min 11,880 9,300 4,380 4,080 3,720 3,420 2,160
Typical 15,120 11,340 5,670 5,040 5,670 5,040 2,835
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Published by ADVANTAGE Consulting Kuwait T: +965 2 249 7058 F: +965 2 245 8578 E: [email protected] consulting-advantage.com ,7th Floor, City Tower Al Sharq, Kuwait
Disclaimer The data provided in this report is “as-is” and ADVANTAGE makes no warranty, either express or implied, including but not limited to, warranties of correctness and fitness for a particular purpose. In no event will ADVANTAGE CONSULTING COMPANY be liable for any indirect, special, consequential or other damages however caused.
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