For other Informa Webinars: http://www.informa-mea.com/webinars To view recording: https://youtu.be/4_IIw1QkN6M or watch the video at end of the slide This webinar presentation will cover: • Latest pay movement trends in UAE and GCC • Trends on basic salary • Trends on allowances (including housing) • Trends on bonuses and variable pay and incentives • Trends on benefits (including school fee limits) • Trends on allowances and benefits payable to “nationals” across the GCC • Trends on pay-for-performance • Open Q&A session About the Presenter: Robert Mosley is a Global Remuneration Expert and Consultant and he is the CEO and Owner of Lemon Pip Consulting Limited. He is widely recognised in many industries and many countries as one of the leading global experts on compensation and benefits in all sectors across the GCC, and is also a leading expert in the more general field of human resources within the aviation and airline sectors. Robert, a Fellow of the Chartered Institute of Personnel and Development, has 28 years of experience in HR and C&B, 20 years of which were in the Middle East. He was the head of the Middle East practice with Hay Group in 1988-1990 before joining the Emirates Group and later promoted to the role of SVP Human Resources. He spent 13 years with Emirates Group, before establishing his own remuneration consulting business, Lemon Pip Consulting Limited, where he is working with over 400 companies in the Middle East and 80 airlines globally.

1. Latest Pay Movement And Trends In UAE And GCC
Wednesday, 10 February 2016
16:30 – 17:30 (UAE-Time)
THE WEBINAR WILL START SHORTLY
Megha Bhatia (Informa)
Robert Mosley (Lemon Pip Consulting)

2. About the HR Observer
• The HR Observer is an initiative by Informa Middle East
aimed at becoming a platform for HR professionals in
the Middle East to exchange insights and expertise,
both online and offline, in an effort to take the HR
industry forward in the GCC region.
• The initiative features a blog, LinkedIn group, Twitter
feed, online webinars and a series of offline informal
networking functions.

3. Housekeeping
• Please wait until the end of the session to type questions
• Time will be allocated at the end to address questions
• Slides will be available on our SlideShare page for the
next four weeks, and the link will be emailed to you
• Recording of the webinar will be available for the next
four weeks, and the link will be emailed to you
• Please complete the post-webinar survey

4. Today’s Presenter
Robert Mosley is one of the leading global experts on
compensation and benefits in all sectors across the GCC.
He was head of the Middle East practice with Hay Group in
1987-1990 before joining the Emirates Group to later
become the SVP Human Resources. He spent 13 years
based in Dubai at Emirates Group, before starting his own
compensation consulting business, Lemon Pip Consulting,
where he is working with over 400 companies in the
Middle East and 80 airlines globally.

5. Pay Trends in UAE and GCC
Presentation Facilitator: Robert Mosley
Location: Webinar by Informa
Presentation Title: Pay Trends in UAE and GCC
Contact Email: robert@lemon-pip.com
Presentation Date: 16:30 (UAE) on Wednesday 10th February 2016

6. Robert Mosley:
• 1980-1983: MA in Mathematics at Oxford University
• 1983-1985: MBA in Business Studies at London Business and Chicago Business School
• 1985-1990: Hay Group Management Consultants (UK and UAE)
• 1990-2003: Emirates Airline Group in UAE (Senior Vice President Human Resources)
• 2003-2005: Qatar Airways in Qatar (Group General Manager Human Resources)
• 2007-2009: Travelport-Galileo in UK (Group Vice President Global Reward)
• 2003-: Fellow of the Chartered Institute of Personnel and Development (FCIPD)
• 2005-: CEO of Lemon Pip Consulting (Reward and HR Consulting in GCC)
• 2015-: Master Trainer for CIPD and Member of “CIPD Reward Advisory Board”
Lemon Pip Consulting Limited:
Specialism: Reward Consulting and Training Courses in Total Reward Management
Main Services: Grading, Compensation, Performance Management, Pay for Performance
GCC Clients: Over 400 clients globally (mainly in the Middle East and Asia)
Email: robert@lemon-pip.com
Your Seminar Leader: Robert Mosley

7. Pay Trends in UAE and GCC
(1) Introduction
(2) Understanding Definitions
(3) Trends in Basic Salary
(4) Trends in Allowances
(5) Trends in Bonuses
(6) Trends in Benefits
(7) Forecast for Next Year
(8) Q&A Session and Discussion

8. JOB
PERFORMANCE
MARKETPERSON
$
ODJOB
DESC
JE
GRADESKRAs
KPIs
GOALS
OBJECTIVES
BEHAVIOURS
COMPETENCIES
APPRAISALS
PAY-REVIEW
& BONUS
PAY
STRATEGY
PAY
SURVEYS
BENCHMARK
PAY RANGES
& ALLOWs
JEJA
RATINGS
(1.1) Introduction: Managing Remuneration

9. (1.2) Introduction: Setting The Scene
Oil Price Significantly Down
Inflation Up (3.0% in UAE)
GDP Growth Slowing But Still Good (up 3.2% in UAE)
Increased Attrition/Turnover (up from 8% to 10%)

10. (1.3) Introduction: Setting The Scene

11. (1.4) Introduction: Role of Compensation
The Role of Cash in Attracting Talent is Changing:

12. … Especially For Younger Generations:
(1.5) Introduction: Role of Compensation

13. Pay Trends in UAE and GCC
(1) Introduction
(2) Understanding Definitions
(3) Trends in Basic Salary
(4) Trends in Allowances
(5) Trends in Bonuses
(6) Trends in Benefits
(7) Forecast for Next Year
(8) Q&A Session and Discussion

14. (2.1) Understanding Definitions
The Seven Levels of Definitions:
• Basic Salary: Monthly Salary x12
• Base Salary: Basic plus 13th Month
• Guaranteed Fixed Cash: Base plus Allowances
• Total Cash Earnings: Guaranteed Cash plus Bonuses
• Total Remuneration: Total Cash plus Benefits
• Total Reward: Total Remuneration plus T&Cs
• Total Cost of Employment: Total Reward plus Govt Costs

15. Our Focus Today:
Annual Basic Salary = Monthly Basic Salary x 12 Months
Guaranteed Fixed Cash = Basic plus Allowances (Housing, Transport)
Total Cash Earnings = Guaranteed Cash plus Variable Bonuses
Total Remuneration = Total Cash plus Benefits
(2.2) Understanding Definitions

16. Pay Trends in UAE and GCC
(1) Introduction
(2) Understanding Definitions
(3) Trends in Basic Salary
(4) Trends in Allowances
(5) Trends in Bonuses
(6) Trends in Benefits
(7) Forecast for Next Year
(8) Q&A Session and Discussion

17. FORECAST FROM
LAST YEAR:
Forecast for
2014-2015 was
about 5.0%
(3.1) Trends in Basic Salary

18. THE HEADLINE FIGURE FOR UAE:
4.0%
But What Does This Mean ?
• General Increase and Movement in “Market”?
• Merit Increase and Movement Through Range ?
(3.2) Trends in Basic Salary

19. THE HEADLINE FIGURE FOR UAE:
4.0%
Is It Stable at All Job Levels and Grades ?
• Differentials Almost Reversed:
 4.2% to 4.7% Senior Management
 3.0% to 3.5% Management
 3.4% to 3.9% Professional and Supervisory
 4.5% to 5.0% Clerical and Manual
(3.3) Trends in Basic Salary: Differentials

20. THE HEADLINE FIGURE FOR UAE:
4.0%
Is It Similar In All Sectors ?
 5.5% to 6.0% Retail and Automotive
 4.7% to 5.2% Banks and Financial Services
 4.3% to 4.8% Real Estate and Insurance and F&B
 3.5% to 4.0% FMCG and Technology and Pharma
 2.8% to 3.3% Construction and Hotels-Hospitality
 2.5% to 3.0% Local Family Conglomerates
 2.2% to 2.7% Oil and Gas and Healthcare
(3.4) Trends in Basic Salary: Sectors

21. Upper-Decile (P90): Oil and Gas
Investment Banking and Asset Management
Chemicals and PetroChem
Financial Services
Upper Quartile (P75): Retail Banking
Technology and IT
Telecommunications
Government Sector (GCC)
Pharmaceuticals
Insurance
Real Estate
FMCG
Retail
Media and Marketing
Business Services
Median (P50): Engineering
Aviation and Airlines
Automotive
Construction
Education (Tertiary)
Healthcare and Medical Services
Cargo and Logistics
Lower Quartile (P25): Travel and Tourism
Hotels and Hospitality
Utilities
Education (Primary and Secondary)
Lower Decile (P10): Heavy Manufacturing
(3.5) Trends in Basic Salary: Sectors

22. Method of Review: 1995: 2015:
• Fixed Increments 75% 9%
• Partial Fixed and Some Merit 20% 13%
• Purely Merit 5% 78%
(3.6) Trends in Basic Salary: Merit Pay

23. Method of Treatment: 1995: 2015:
• Maximum-means-Maximum 80% 11%
• Allow to go above Maximum
with “Personal differential” 10% 10%
• Lump-Sum Merit-Bonus
Instead of Merit-Pay 10% 79%
(3.7) Trends in Basic Salary: Reaching Maximum

24. Pay Trends in UAE and GCC
(1) Introduction
(2) Understanding Definitions
(3) Trends in Basic Salary
(4) Trends in Allowances
(5) Trends in Bonuses
(6) Trends in Benefits
(7) Forecast for Next Year
(8) Q&A Session and Discussion

25. ALLOWANCES HAVE ONLY SLIGHTLY INCREASED:
Basic Salary was 4.0%
Guaranteed Fixed Cash was 3.5%
Implication is: Allowances Increased by only 3.0%
Main Increase was Housing Allowances in Early 2015
When Housing Allowances were increasing by 6%-8%
BUT housing rental costs have dropped 8% in Late 2015
(4.1) Trends in Allowances

26. ALLOWANCES ONLY INCREASED IN “MID-LEVELS”:
Basic Salary was 4.0%
Guaranteed Fixed Cash was 3.5%
(4.2) Trends in Allowances

27. (4.3) Trends in Allowances: Housing

28. (4.4) Trends in Guaranteed Fixed Cash

29. OTHER TRENDS:
• GAP BETWEEN NATIONALS AND INPATS IS RISING:
- Typically 40%-60% Higher on Guaranteed Cash
- Minumum Gap of AED 2,500 pm at Low-Levels
- Maximum Gap Capped at about AED 9,000 pm
• GAP BETWEEN ABU DHABI AND DUBAI IS FALLING:
- Now only About 16%-20% on Guaranteed Cash
- Mainly Due to Higher Housing Allowances
(4.5) Other Trends in Guaranteed Fixed Cash

30. (4.6) Other Trends in Guaranteed Fixed Cash

31. Pay Trends in UAE and GCC
(1) Introduction
(2) Understanding Definitions
(3) Trends in Basic Salary
(4) Trends in Allowances
(5) Trends in Bonuses
(6) Trends in Benefits
(7) Forecast for Next Year
(8) Q&A Session and Discussion

32. BONUS PAYMENTS WERE JUST BELOW TARGET IN 2015:
Basic Salary was 4.0%
Guaranteed Fixed Cash was 3.5%
Total Cash Earnings was 3.5%
Implication is: Bonus Payments were Just Below-Target
Actual Bonus Payments in Early-2015 Were About 5%
Below Target and About 10% Worse Than Early-2014
(5.1) Trends in Bonuses

33. (5.2) Trends in Bonuses

34. (5.3) Trends in Bonuses

35. (5.4) Trends in Total Cash Earnings

36. Pay Trends in UAE and GCC
(1) Introduction
(2) Understanding Definitions
(3) Trends in Basic Salary
(4) Trends in Allowances
(5) Trends in Bonuses
(6) Trends in Benefits
(7) Forecast for Next Year
(8) Q&A Session and Discussion

37. BENEFIT COST INCREASES WERE HIGHER IN 2015:
Basic Salary was 4.0%
Guaranteed Fixed Cash was 3.5%
Total Cash Earnings was 3.5%
Total Remuneration was 3.8%
Implication is: Benefits Costs Rose by 6%-8%
Average Education School Fees up by 4%-6%
Average Medical Insurance Costs up by 7%-9%
(6.1) Trends in Benefits

38. • LIMITS ARE NOT KEEPING PACE WITH ACTUALS
• REIMBURSEMENT NOW AVERAGES 70%-75%
• OFTEN NOW CALLED “SUBSIDY”
(6.2) Trends in Benefits: Education

39. (6.3) Trends in Benefits

40. (6.4) Other Trends in Benefits
• First Major Concern is Healthcare Costs
• Second Major Concern is Education Costs
• Very Few Companies have “Flexible-Benefits”
• Provident Schemes are Not Increasing
• Outsourcing of EOSB Gratuity is Not Increasing

41. Pay Trends in UAE and GCC
(1) Introduction
(2) Understanding Definitions
(3) Trends in Basic Salary
(4) Trends in Allowances
(5) Trends in Bonuses
(6) Trends in Benefits
(7) Forecast for Next Year
(8) Q&A Session and Discussion

42. FORECAST FOR
NEXT YEAR:
Forecast for
2015-2016 is
back to 5.0%
(7.1) Forecast for Next Year

43. (7.2) Forecast for Next Year: Are We Realistic ?

44. Pay Trends in UAE and GCC
(1) Introduction
(2) Understanding Definitions
(3) Trends in Basic Salary
(4) Trends in Allowances
(5) Trends in Bonuses
(6) Trends in Benefits
(7) Forecast for Next Year
(8) Q&A Session and Discussion

45. (8.1) Future Training Events
Please contact Informa about future training events
and courses in Dubai with Robert Mosley:
Certificate In Compensation And Reward Management 03-Apr-16 07-Apr-16 Dubai
Certificate In HR Policies And Procedures 10-Apr-16 13-Apr-16 Dubai
Certificate In Advanced Compensation and Total Remuneration 17-Apr-16 21-Apr-16 Dubai
Certificate In Managing Pay for Employees 24-Apr-16 26-Apr-16 Dubai (New)
Certificate In Managing Pay and Incentives for The Sales Force 27-Apr-16 28-Apr-16 Dubai (New)
Certificate In Job Descriptions and Job Evaluation And Grades 15-May-16 19-May-16 Dubai
Certificate In Performance Management And Performance Appraisals 22-May-16 26-May-16 Dubai
20
th
Annual Informa C&B Forum 29-May-16 02-Jun-16 Dubai
Responsibilities of The Board and RemCo on Managing Pay 12-Oct-16 13-Oct-16 Dubai (New)
Certificate In Job Descriptions, Job Evaluation And Grades 16-Oct-16 20-Oct-16 Dubai
Certificate In Compensation And Reward Management 23-Oct-16 27-Oct-16 Dubai
Certificate In Performance Management And Performance Appraisals 30-Oct-16 03-Nov-16 Dubai
Certificate In Advanced Compensation And Total Remuneration 06-Nov-16 10-Nov-16 Dubai
Certificate In HR Policies And Procedures 13-Nov-16 16-Nov-16 Dubai
Certificate In Nationalisation Strategies 20-Nov-16 23-Nov-16 Abu Dhabi

46. (8.2) Any Questions ?
Any Questions ?
Or contact me for future consulting support:
robert@lemon-pip.com

47. Pay Trends in UAE and GCC
Presentation Facilitator: Robert Mosley
Location: Webinar by Informa
Presentation Title: Pay Trends in UAE and GCC
Contact Email: robert@lemon-pip.com
Presentation Date: 16:30 (UAE) on Wednesday 10th February 2016