Saudi Arabia salary guide: Pay hikes, new job roles expected across Kingdom in 2024

Most employees across Saudi Arabia expect to receive a pay hike in 2024, with the year also set to see a flurry of new job positions across the Kingdom as companies look to boost their workforce.

According to the Hays Middle East 2024 Salary Guide for Saudi Arabia, released this week, as the country diversifies its economy under Saudi Vision 2030, almost every sector is set to be positively impacted, leading to a surge in opportunities for both employers and professionals.

For all the latest headlines follow our Google News channel online or via the app.

The report has revealed that 69 percent of employers are planning to expand their workforce this year, indicating a buoyant labor market that is poised for further growth, while 77 percent of employers predict that salaries in their organizations will increase this year.

Commenting on the report, Manager at Hays Saudi Arabia Mark Paul said: “With 69 percent of employers planning to expand, opportunities are plentiful. Simultaneously, 29 percent of professionals are actively preparing to change positions. As many organizations strive to be the employer of choice, understanding shifting dynamics is crucial.”

The Hays Saudi Arabia Salary Guide 2024 provides comprehensive salary data for more than 200 roles across 11 professions, offering insights based on expert analysis and a survey of 400 employers and working professionals.

Headcount set to rise in a shallow skills pool

The guide reveals that while almost two-thirds of employers in Saudi Arabia plan to increase their headcounts this year, optimism is tempered by challenges such as a shallow skills pool – 50 percent of employers report a scarcity of skilled professionals on the market.

Nevertheless, most professionals (72 percent) remain optimistic about the economic outlook and future employment opportunities in Saudi Arabia.

To address challenges in terms of a limited talent pool, employers are increasing their international recruitment and working to strengthen their employer brand. Typically, mid-to-senior-level professionals with established expertise and qualifications are sought after more than entry-level candidates. Employers highlight the most challenging positions to fill as management (66 percent), intermediate (45 percent), and/or director level (42 percent).

The demand for experienced professionals with a mix of technical and soft skills remains high, particularly in management positions. Saudiization programs prioritize qualified Saudi nationals, with 92 percent of organizations employing them and 87 percent planning to increase their Saudi workforce.

In key sectors such as banking and financial services, construction and property, industrial, sales, and technology, dynamic growth is being witnessed, offering diverse opportunities for top talent.

Finally, language skills, particularly fluency in Arabic and English, remain in high demand.

Career development emerges as a critical factor in talent retention. The guide shows that of the 29 percent of professionals actively planning to change organizations this year, a lack of career development opportunities is a primary reason.

Of those professionals who plan to change roles, the three main reasons noted are a lack of career development opportunities (47 percent), benefits not aligned with their needs (40 percent), and a lack of career progression (39 percent).

According to the guide, 42 percent of professionals say that career development initiatives are among the most important factors when choosing an organization. However, when asked what development initiatives their employer offered to aid their development, 39 percent of professionals said they were yet to be available.

The initiatives of the remaining 61 percent of professionals are offered, including online and in-person training courses and mentorship
opportunities.

Professionals who are offered development initiatives (75 percent) report higher levels of job satisfaction than professionals who do not receive any (58 percent). They are also more optimistic about their chances of promotion this year, with 47 percent expecting to be promoted, compared to 21 percent who do not wish to be promoted.

Professionals who are offered development opportunities are far less likely to change organizations this year (23 percent) in comparison to those who are not offered any development opportunities (40 percent)

Significant shift toward office-based working

As the global ‘return-to-office’ mandate debate rages, most Saudi Arabia-based organizations have taken a more decisive stance.

When asked to describe their organization’s current working model, 69 percent of employers in the Kingdom say that their organization adopts a fully officed-based model, a 14 percent increase on the previous year.

Simultaneously, 25 percent of professionals in Saudi Arabia say that remote and hybrid working is one of their most valued benefits.

Professionals who receive remote or hybrid working options express higher job satisfaction (78 percent) and better work-life balance (72 percent) when compared to their fully office-based peers (63 percent and 63 percent, respectively).

Additionally, remote or hybrid workers are less inclined to change organizations this year (26 percent) in comparison to office-based workers (31 percent), indicating a potential link between flexible working arrangements and increased employee retention.

Pay rises

The guide shows that 77 percent of employees expect a pay hike this year, with 34 percent predicting an uplift of up to 5 percent and a further 25 percent predicting increases of 6 percent to 10 percent.

However, across the Kingdom, some employees remained unsure whether they would receive a pay rise or bonus this year.

Nadine, who preferred to be identified by her first name, has only been at her job for a few months, making her question the chances of receiving a raise or a bonus this year. “I would be very glad to get a bonus this year, although I highly doubt it since I am still new at the company and have relatively less experience in the job,” she told Al Arabiya English.

“Although I have learned quickly and a lot this past couple of months, I think that my salary would probably rise after completing two years at the company,” she said.

Another employee, who preferred to remain anonymous, said: “I am not expecting to receive any raise or bonus this year. Even if we receive bonuses, they will not be like the ones we used to get.”

Apart from salary, the benefits package (61 percent) is one of the most critical factors for professionals when choosing an organization in 2024.

In terms of benefits, child education allowances (43 percent), air ticket or travel allowances (35 percent), and flexible working options (26 percent) are among the most popular.

Transparency and effective communication regarding benefits are also crucial.

The guide points out a notable disparity between professionals and employers regarding benefit provision. While 37 percent of professionals state that they currently do not receive any benefits, only 4 percent of employers claim not to offer any. The benefits package is considered one of the most critical factors for professionals when choosing an organization, according to 61 percent of respondents.

AI in the workforce

Artificial intelligence (AI) is another area of interest in the Saudi labor market. The guide indicates that employers are cautious, with 39 percent recommending using AI in the workplace. However, only 14 percent of professionals say their organizations prohibit its use.

While 38 percent of employers anticipate that AI will eliminate more job opportunities than it will create, only 22 percent actively take steps to address the potential impact.

Read more:

Saudi, UAE professionals favor working in region instead of Europe, US: LinkedIn

Dubai airline Emirates to hire 5,000 staff in 2024 – all you need to know to apply

Cybersecurity, IT jobs on the rise in Saudi Arabia: Report