UAE employees demand higher housing, transport allowances amidst rising rents, Salik tolls
Workers in the UAE are pushing for more housing, transport and children’s school allowances and bonuses from employers in the wake of rent hikes and the opening of new Dubai road toll gates, recruitment agents say.
"The UAE is experiencing rising prices for living, and employees are demanding higher pay and benefits to help keep up with costs," said Mayank Patel, SVP Adecco, head of EEMEA.
"A lot of workers are asking for a housing allowance or transportation allowance or a modification in their pay packages to cover the basic necessities of life and transportation. ‘Education allowances, wellness or lifestyle benefits are two things that could be the top talent attraction incentives for upper-level executives,’ he said.
The rents have doubled over the past four years with more demand than supply of new housing units as people are pouring in and the rents doubled in some areas.
So, did Salik Company, which installed two toll gates in November, which also plans to implement new variable pricing on all 10 toll gates and the peak hours rate is Dh6 and no tariff between 1am-6am.
With these trends in mind, Patel said, companies can look at their compensation policies and provide customized solutions to employee demands and still stay ahead.
Bayt.com’s vice president of growth Dina Tawfik told me that they’ve seen requests for larger allowances from employees when the hikes come in areas such as housing, transportation and necessities in general.
"People like a range of flexible benefits sometimes, school fee benefit, travel benefit, housing benefit generally. And then employers react to these needs with open arms, and are usually a far better place to bring in and retain talent than they are now. Last but not least, competitive plans take into account real-life issues like commuting expenses and tuition expenses of children. "All of these are good for overall job satisfaction," Tawfik said.
When it comes to the living costs, she said, salary is a still one of the main reasons that many professionals arrive in the UAE.
"We have to look at employee’s needs more as a whole. There are items like health insurance, professional development allowances, telecommuting, wellness programs, etc rather than dollar sign numbers all the time.
Companies do have talent, they have opportunities for progression. These would be the brands that you would keep with, if it was a very expensive company," she said.
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