It could be easy for employers to see this as a good thing, as it increases retention, but it could have a significant impact on both productivity and growth. Nearly two-thirds (65%) of employees are staying in their current role due to necessity rather than preference, which means morale and motivation is likely to be lower than usual.
If the situation changes, businesses that have been lulled into a false sense of security could be in for a nasty surprise. If candidate availability falls and salaries start to increase once more, the majority (65%) of workers in the UAE could be looking to jump ship, with those who are dissatisfied with their pay or development opportunities at the front of the queue.
While boosting infrastructure has helped to make the UAE significantly more attractive to investors, businesses and employees, it has backfired on expats already living and working in the country. We are not currently seeing the healthy employment market the country and businesses will need to meet their goals, but more than that, these stagnant salaries are creating less than ideal living and working conditions for employees, ultimately reducing rather than increasing overall quality of life.