A recent study from recruitment consultancy Robert Half has highlighted divergent hiring intentions among UAE companies in the coming year.
Mixed Hiring Intentions in the UAE
While a majority of firms, approximately 63 percent, are still poised to expand their workforce, a notable segment is contemplating delaying or outright freezing new recruitment efforts. Released on Thursday, the study underscores how global economic uncertainties, such as impending elections and volatile inflation rates, are compelling UAE businesses to adopt a cautious approach towards hiring.
Freezes Implemented
After surveying 100 senior business decision-makers in the UAE, Robert Half found that a significant proportion, around 33 percent, are deferring hiring decisions until after pivotal elections in countries like the US and UK conclude. Additionally, 32 percent are waiting for interest rates to stabilize before committing to new hires. These factors, influencing operational costs within the UAE, have prompted nearly 29 percent of executives to implement hiring freezes within their organizations.
The ripple effects of global unpredictability are substantial for UAE companies with international and regional operations. Many are compelled to reassess strategies in response to challenges stemming from these global issues. Gareth El Mettouri, Middle East Director at Robert Half, emphasized that despite robust economic prospects in the UAE, the shadow of global uncertainty looms large over hiring intentions. He noted, As a global hub, many businesses in the region could be hugely impacted by the parliamentary elections taking place around the world.
Looking ahead, the study predicts that 37 percent of firms anticipate significant challenges in securing technical skills over the next year. This underscores the importance for organizations to retain their existing talent pool amidst the uncertain hiring landscape.
Nevertheless, the deferral of hiring decisions and the implementation of freezes due to global instability could potentially lead to a surge in demand for skilled professionals towards late 2024 and into 2025. This anticipated rush for talent underscores the strategic imperative for businesses to navigate the current uncertainties judiciously while preparing for future recruitment needs.
While a majority of UAE companies remain optimistic about expanding their workforce, the cautious approach adopted by a significant segment reflects the profound impact of global economic uncertainties on business strategies. As companies brace for potential shifts in the global landscape, strategic workforce planning and talent retention strategies will be crucial in navigating the evolving hiring dynamics in the UAE.
