(MENAFNEditorial) GCC employers looking to hire hundreds of thousands of new recruits in the next 12 months are also projecting an average 9% increase in salaries, but a new study says they face a major challenge with young talent.
The first MENA Labour Market Confidence Index reveals that while the majority of the 1,250 GCC companies and organisations surveyed pointed to moderate and cautious recruitment strategies, collectively they expected to hire 421,250 new employees for 2014-15.
Issued at the 11th HR Summit & Expo in Dubai, the report says that healthcare leads the way in terms of increased headcount expectations, followed closely by construction and hospitality – three industries traditionally dependent on expatriate labour.
But the three markets indicating the clearest signs of labour force expansion – Saudi Arabia, Kuwait and the Northern Emirates of the UAE – are increasingly focusing on accelerating regulatory amendments to support nationalisation, reducing their historic reliance on foreign workers.
The flagship study was conceptualised by Informa, organisers of the three-day HR Summit & Expo, which concludes tomorrow (Wednesday) the Dubai International Exhibition Centre.
Based on research by The Talent Enterprise, the region's premier human capital think-and-do tank, the MENA Labour Market Confidence Index says salary increase projections remained quite balanced across all levels of seniority at an average of 9%, keeping in mind merit-based pay as well as cost of living adjustments.
The study says that, with over 60% of the population under the age of 30 years in the region, the talent of young people, and the youth bulge they collectively represent, offers "the greatest productive opportunity since the discovery of oil and gas in the middle of the last century."
"Alarmingly, youth across the region are facing an early mid-career crisis, with those under 25 and between 25 to 34 years of age showing the lowest levels of engagement and motivation amongst all age groups," says the report. "This has a direct impact on their performance, productivity and contribution to their jobs."
The study says that, having a young working age population is a necessary but not a sufficient condition for enhancing productive capacity required to drive economic growth.
And in a clear message to employers, it emphasises that their energy and aspirations "need to be channelled in the right direction in terms of developing their skills and providing positive work opportunities."
The study has been exclusively issued to all delegates at the HR Summit & Expo who have been hearing from six of the world's best in-class thinkers and inspirational speakers.
They included Marshal Goldsmith, the world's No.1 leadership thinker, Dave Ulrich, recognised as the most influential person in HR globally, and Liz Wiseman, author of the Wall Street Journal bestseller 'Multipliers: how the best leaders make everyone smarter'.
Running alongside the conference and exhibition is the Middle East HR Excellence Awards which tonight (Tuesday 21 October) showcases the best HR talent in the Middle East and honour professionals in the public and private sectors. .
The HR Summit and Expo is supported by Headline Sponsors Daman, LinkedIn, Spire, Profiles International, Ramco Systems, and CEB; Gold Sponsor Tanfeeth; Silver Sponsors ManpowerGroup, BTS and Zurich. To request a copy the MENA Labour Market Confidence Index 2014 Executive Summary, email priyanka.ravindran@informa.com.
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