(MENAFN- Khaleej Times) The whole concept of 'expat packages' is a thing of the past now. From the turn of the century, and the influx of foreign skills into the UAE, many workers and their families have enjoyed excellent packages and benefits. 2016 sees the death of this alluring concept.
The all-things-paid-for packages has seen a retreat during the recession years, but after a good three to four years of slow decline, the so-called 'free lunch' is not available for employees looking to move here. Those who are already in the city speak of the no-frills package that they are accustomed to now, and see no return to largesse being handed down from employers. Expat packages were initially designed to attract top talent or with hard-to-find skills to move from their home countries to a different region. The influx also involved bigger responsibilities and commissions for the recruitment agencies. Such packages to this region were created at a time when the Middle East was considered a 'hardship assignment' and were designed to be more lucrative than the standard compensation. The financial crunch has forced employers to control high bonuses and outrageous benefits, which were endless luxurious housing or high rentals, schooling, transportation, gym memberships, fly back home once a year, medical insurance, utilities, joining bonus, you name it. Also the fact that there is a huge pool of talent available in the country and the region, and an increasing number of companies are looking to hire candidates who have local experience and knowledge of the market. Bonuses are no longer guaranteed, but there's still a willingness among employers to award variable pay based on performance. Such bonuses are typically "two to six months of basic salary and entirely dependent on performance, which wasn't the case two years' ago." In the current depressed market, it's important to negotiate achievable targets. Too many expats, even after the recession years, have high expectations and often make unrealistic salary and benefit demands, which, many a times is difficult to meet. According to recruitment experts in the country, the economy is in much better shape with annual increments and bonuses coming again to the fore but expat expectations are often misguided and in many cases out of touch with reality. The good news however, is that certain areas are bound to grow in this year. Salaries in the Middle East have shown a rise across the entire region in 2015 as a strengthening global economy provides a growing confidence among companies. The region as a whole was expecting to rise on average 5.1 per cent, however, some countries are expected to see more growth than others. Statistics show that the UAE is second in the highest paid construction managers with an average salary of $6,300 per month. A high salary is similar to that in Kuwait, however the lower salary range falls to around $3,500. Once you move into the higher positions, a senior project manager can earn an average of $9,300 per month. According to the nation's Department of Economic Development, a few of the high growth sectors include renewable energy, gas, semi-conductors, construction material and petrochemicals. Aviation, transport equipment, iron and steel, aluminum, plastics and foodstuffs also appear to show strong growth and not to mention event management. The Gulf still holds a lot of adventure and interest from workers around the world. Rising cost of living will be catered with decent salaries and excellent talent. With World Expo in 2020, the mega-event that attracts millions of visitors from various nations, including international organisations and businesses, it will be the first time such an expo will be held in the MEASA region. Expected to see approximately 25 million visitors, the UAE and Dubai will see a dramatic increase in visitor numbers both during the time it will be running (October 2020 - April 2021) and in the lead up to it. Exact figures for the total number of workers in demand is expected to be around 300,000, as computed by the 'Frontier'. Nonetheless, it is a considerable amount of additional workers needed to fill, workers that will not able to be found just within the UAE or Dubai. A tip for foreigners, show your best skills, be realistic while negotiating the best packages, enjoy the fascination destinations, and good food in the UAE, and return back home with great memories, if not great savings. A tip for expats, work your way, negotiate best packages, keep your financial planning goals in mind, save more, save better, plan better and if you wish to stay back then keep reserves. Great savings will mean great life. Retire like a gentleman. The author is an entrepreneur and financial planning consultant. Views expressed are her own and do not reflect the newspaper's policy.