UAE: Why Are Employees Leaving Due to Delayed Salary Payments

In the rapidly evolving job market of the UAE, a significant trend is emerging: more employees are leaving their positions due to delayed salary hikes.

A recent report from the Robert Walters Middle East Salary Survey for 2025 highlights that 68% of business leaders in the region have observed increased employee turnover linked to postponed pay increases.

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This alarming statistic reflects the broader implications of cost-cutting measures on workforce stability.

The Financial Tightrope

As companies navigate a challenging economic landscape, many are forced to make tough financial decisions. To manage overheads, delaying or scaling back salary reviews has become a common practice.

While this approach may provide short-term budget relief, the long-term consequences are evident. Business leaders report that 32% of employees are feeling increasingly disengaged as a result of these delays.

A disconnect between employer actions and employee expectations is growing. As the job market becomes more competitive, employees are more willing to explore new opportunities.

Jason Grundy, managing director at Robert Walters, emphasizes that even if employees understand the business pressures, unmet expectations are leading them to reconsider their career options.

Acknowledging the Value of Employees

Despite financial constraints, remuneration isn’t the only lever for retaining talent. Experts advocate for a focus on non-monetary incentives that resonate with modern professionals.

Aws Ismail, general manager at Marc Ellis in Dubai, suggests that companies should prioritize flexible work arrangements, growth opportunities, and genuine recognition. These factors contribute to a culture that values employees beyond their paychecks.

Transparency and communication are crucial in addressing employee concerns about delayed salary hikes. Clear messaging regarding the reasons for pay delays and acknowledging individual contributions can help maintain trust.

Ismail points out that when budgets are tight, employees need to understand the rationale behind pay decisions and how their performance is being recognized.

The Importance of Open Dialogue

Ongoing dialogue between employers and employees is essential. Nickie Wilson, executive director of Genie Recruitment, highlights that employees disengage not only due to pay delays but also from a lack of communication and appreciation.

By implementing goal-linked salary discussions, employers can clarify expectations and prevent resentment from building.

As the UAE job market continues to evolve, businesses must adapt their strategies to retain talent. Fostering a culture of recognition, growth pathways, and open dialogue can mitigate the risks associated with delayed salary hikes.

In doing so, companies can strengthen their workforce and enhance stability in an increasingly competitive landscape.

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