Julia Ibrahim· Compensation Consultant, Steinbach Industrie
Posted in Dubai Chapter ·
Like most private sector employers here we have targets for UAE nationals in skilled roles, and we have met them so far, though only by paying above our normal ranges. On average our Emirati hires at graduate and early-career level sit about 35 percent over the range midpoint for their grade.
That now causes two problems. Expatriate colleagues in the same roles have noticed, and the nationals themselves have little headroom to progress within the grade. I am considering a separate national allowance outside the salary structure in place of inflated base pay. Has anyone done this, and how did you position it internally?
0 reactions · 4 replies · 6 views
Total Rewards Manager, Meridian Health Systems
We introduced a national allowance three years ago: a flat monthly amount by level, shown as its own line. Base pay follows the same ranges for everyone. It is easier to explain, since it reflects a different labour market and different pension arrangements, and progression inside the grade works normally. Around 120 nationals receive it.
Head of Reward, Fairlead Shipping
Banking, where targets have existed for much longer. My caution is retention. We paid the premium, hit the numbers, and then lost 22 percent of national hires within two years to government-related entities with shorter hours. Pay alone did not hold them. A structured two-year development programme with a named sponsor did more.
Total Rewards Manager, Meridian Health Systems
Remember the pension side when you model cost. As I understand it, contributions for UAE nationals go to the state scheme and work differently from the end-of-service gratuity for expatriates, so comparing base salaries understates the difference in employment cost. Our finance team had missed this until we built a total cost view by nationality and grade.
Sonia DuboisCSI
Compensation Manager, Lumen Biosciences
How did you deal with the expatriate reaction? We have been open about it: the policy is on the intranet with the reasons. Acceptance is reasonable among senior staff and poor among mid-level professionals who see graduates earning close to their own pay. I have no good answer yet and would like to hear one.
