UAE businesses anticipate talent rush as recruitment delays loom.
A recent report by recruitment consultancy Robert Half has highlighted looming challenges for UAE businesses amid global economic uncertainties. Despite 63% of companies in the UAE planning to expand their workforce in the next year, many are delaying hiring decisions due to factors such as global elections and unstable inflation.
According to the survey of 100 senior business decision-makers, 33% are postponing hiring until after key elections in the US and UK, while 32% are awaiting stabilization in interest rates. This cautious approach has led 29% of organizations to implement a hiring freeze, reflecting concerns over rising operational costs driven by global issues.
Gareth El Mettouri, Director for the Middle East at Robert Half, emphasized that despite optimism in the UAE economy, global uncertainties are tempering hiring intentions. He noted,
"Many businesses in the region are impacted by parliamentary elections worldwide. High inflation and unstable interest rates are prompting businesses to delay crucial decisions."
The report also predicts a potential rush for skilled talent towards late 2024 and into 2025 as businesses reactivate hiring plans once uncertainties subside. With 37% of firms already anticipating challenges in sourcing technical skills over the next year, retention strategies for existing talent become crucial.
El Mettouri added,
"Business leaders foresee overall headcount growth, but the competitive landscape for talent could intensify post-2024, particularly with stagnant salaries prompting a desire for change."
Despite these challenges, the survey revealed robust confidence among UAE business leaders, with 67% expressing strong optimism about growth prospects through 2024 and into 2025. Factors driving this optimism include increasing demand for products and services, expanding business opportunities, and an improving economic outlook.
As UAE businesses navigate global uncertainties, strategies to retain and attract skilled talent will be pivotal in maintaining growth momentum amid shifting market conditions.
News Source: Khaleej Times
