The latest MENA Salary Survey conducted by Bayt.com, the Middle East’s number one jobsite, and YouGov, a research and consulting organisation, has revealed that despite48% of employees having been unhappy with their last pay rise, more than half believe that salaries in Kuwait are increasing.
About the Respondents
A third of survey respondents (28%) in Kuwait have spent4-6 years in their current industry, with a third (31%) having worked for their current employer for4-7 years. Four out of ten have between one and five people reporting directly to them, with a collective71% stating that they are midway in terms of seniority (33%), or at a fairly senior level, but not yet at the top (38%). Over the past five years,36% of respondents have held two jobs;29% have held one job, while the remainder have held three (21%) or more (11%). On average, most people will stay in a job for2 to3 years (30%), or six or more years (31%).
In Kuwait, the preferred pay structure is entirely fixed-pay (57%), with popular incentives including those that are performance-based (57%), and professional training and development courses (32%).
Salary packages primarily (53%) consist of basic salary only, and six out of ten of respondents are currently moderately satisfied with their salary.
The most popular Kuwait salary benefits include personal medical insurance (35%), bonuses (30%), and personal annual air ticket (26%).
Salary Comparisons and Expectations
Six out of ten respondents in Kuwait state that their current compensation is lower than that offered by other companies in the same industry. Almost half claim not to have received a raise in the last12 months. Those who did receive a raise are predominantly unhappy with what they received; collectively,48% claim to have been ‘unhappy’ or ‘very unhappy’. The majority of respondents (60%) expect to receive a raise in the coming year,23% of which are looking at an additional15% or more.
Cost of Living and Savings
According to88% of survey respondents, the cost of living in Kuwait has increased in the last12 months (between December2010 – December2011), of these49% believe that it has increased by15% or more. Food and beverage is believed to have increased the most, according to42% respondents, followed by rent (34%). A majority82% believe that the cost of living will continue to rise in the coming year. On average, respondents claim that they received a6.33% raise in the past year – while stating that their cost of living increased by an average of21.39%.
Four out of10 respondents are able to save more than15% of their monthly salary, though25% have been unable to save anything at all. A third (34%) manage to repatriate more than15% of their salary.
“The survey’s results suggest that companies are still feeling the effects of the economic downturn, as they are generally not fully catering to the financial expectations of their employees or to their employees’ perceptions of the rising cost of living across the region,” said Suhail Masri, Vice President - Sales, Bayt.com. “Bayt.com’s in-depth surveys provide invaluable information about the MENA employment market, giving employers and job-seekers alike a realistic insight into the issues faced by their peers locally and elsewhere in the region.”
Perception of Salaries in the Country
More than half of survey respondents (a collaborative54%) believe that salaries in Kuwait are increasing either ‘marginally’ (29% of respondents) or ‘moderately’ (25% of respondents). The most popular reason for this is perceived to be inflation and the rising cost of living (51%), followed by growth in opportunities and economic growth in the respondent’s country of residence (25%). Respondents meanwhile blame employer-friendly laws (26%) and poor corporate performance/profitability (25%) as being the top reasons for salaries not increasing - however,26% state that they do not know why there have been no increases.
Quality of Life
When comparing themselves to other people of a similar generation within Kuwait,41% of respondents believe that their quality of life is about average, while26% believe that they are somewhat better off. Almost a fifth (19%) of professionals believe that there is an excess of talent in Kuwait.
To improve their situation,56% will look for a better job in the same industry, while another30% will look for a better job in a different industry.
“The survey respondents belief that there is an increase, however small, in salaries is a positive sign for the future. However, the fact that they also consider there to be an excess of talent suggests that unemployment levels are currently relatively high, and that competition for existing jobs is fierce,” said Sundip Chahal, CEO, YouGov.
Drivers of Loyalty
Loyalty to employers is directly linked to salary package, according to28% of Kuwait respondents. However, a larger group of33% base their loyalty on their line manager. Opportunities for long-term career progression, senior management, colleagues and working environment, daily responsibilities, and training and development opportunities also factor highly.
Data for the Bayt.com Salary Survey March2012 was collected online from March1 to13,2012. Results are reported on a base of16067 respondents. Countries that participated are UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, Tunisia and Pakistan.