Salaries in the Kingdom of Saudi Arabia (KSA) are expected to increase by around 6 percent in the year 2024 due to unprecedented developments underway as part of Vision 2030.
This came in a new survey released by Cooper Fitch, a global recruitment and HR consultancy under the title ‘Kingdom of Saudi Arabia Salary Guide 2024’.
According to a survey, 52 percent of surveyed respondents plan to increase salaries in 2024.
Over 22 percent of respondents plan to decrease salaries in the next 12 months, a surprising move given the high talent demand expected in 2024.
Over 26 percent of respondents stated that they do not plan to make any changes in the next 12 months.
“In line with the realisation of Vision 2030, Saudi Arabia’s portfolio of gigaprojects and the development of new industries such as electric vehicles have positively impacted recruitment and remuneration over the past year. Industries across the Kingdom are expanding, along with major cities such as Jeddah and Dammam.”
Vilius Dobilaitis, Managing Partner – Finance, Sales and Marketing, Cooper Fitch
Bonus
A survey reveals that 78 percent of respondents plan to issue annual bonuses based on their organizations’ financial performance in 2023, compared to 22 percent who have no plans.
This year’s respondents plan to issue bonuses, with 24 percent expecting one month’s basic salary, 21 percent planning to pay two months, 18 percent three, 7 percent four, and 3 percent five months.
The employees in consulting, financial services, investment management, real estate, and telecommunications will receive annual bonuses of a generous six months’ basic salary.
The majority of 22 percent of companies that do not intend to pay bonuses are in the construction and consulting sectors.
“As a testament to their dedication to Saudi Arabia and a strategic effort to reduce travel expenses, consulting firms are reserving limited space in their Dubai offices for recruitment, placing a strong emphasis on bolstering their presence in the Kingdom. This commitment is reflected in a slight premium in salaries of around 10% when compared to their counterparts in the UAE.”
Michael Stubbs, Managing Partner – Strategy, Technology and Management Consulting, Cooper Fitch
Talent
In 2024, talent acquisition is expected to be a significant challenge, with 26 percent of Saudi Arabian respondents stating they lack the necessary talent to meet their hiring needs.
‘Management’ and ‘leadership’ represented the most significant talent gaps among those questioned this year, accounting for 20 percent and 16 percent of responses, respectively. ‘Analytical skills’ was the third-highest deficit identified at 11 percent.
Talent requirements
A survey shows that 24 percent of respondents anticipate a talent shortage in 2024, indicating a potential oversupply of suitable candidates.
Interestingly, ‘management’ and ‘leadership’ occupied the top spots on both this survey and Cooper Fitch’s Salary Guide UAE 2024, suggesting that the Kingdom and the Emirates must compete to attract candidates with senior-level experience.
Top ten sectoral gaps
- Management
- Leadership
- Analytical Skills
- Project Management
- Emotional Intelligence
- Engineering
- Software Development
- Sales
- Finance
- Data Science
Salaries in 2023
80 percent of Saudi companies increased or made no changes to salaries in 2023, Cooper Fitch survey said.
