For employees in the country’s embattled public sector, the news is worse, with salary increases set to fall to 3 per cent, from 5 per cent in 2023, the country’s professional body for human resources says in its quarterly Labour Market Outlook report.
“This quarter, we see the tide turning on pay,” the CIPD says. “As inflation continues its descent in 2024, expected pay awards will likely follow suit.”
Inflation in the UK peaked at a record 11.1 per cent in October 2022, leading to a cost-of-living crisis and steep drop in the value of employees’ salaries as they struggled to cover daily living expenses.
However, the UK slipped into recession in the second half of 2023 after the economy shrank 0.3 per cent in the three months to December, the Office for National Statistics said earlier this month.
While inflation has eased – in January, the UK’s inflation rate remained steady at 4 per cent and food prices fell for the first time since September 2021 – salary increases are expected to track the cost-of-living index amid a competitive labour market.
“Decreasing staff levels appears to be higher on the agenda in 2024, in response to the higher wage costs experienced over the past couple of years,” the CIPD says.
“This is evident in both the public and private sector, combined with a turn away from continuing to absorb costs or, in the case of the private sector, reduced profits during the period of high inflation.”
What is the salary and employment outlook for jobseekers in the UK in 2024? Read on to find out and look at our detailed salary guides below for a snapshot of your industry.
Will salaries increase in 2024?
Salary rises in the UK this year will be lower compared with 2023, falling in line with easing inflation at an average of 4 per cent.
That doesn’t mean to say that employees will be unable to negotiate higher increases above the average estimate, but it will depend on the sector, a company’s bottom line, performance reviews and whether or not their role is in demand.
However, the economic landscape is creating a challenging hiring outlook for candidates and employers, says Doug Rode, managing director of the UK and Ireland at Michael Page.
“This trajectory that hiring will continue to tie in with the economic outlook is something we expect to see throughout 2024 – especially when it comes to salary,” Mr Rode says in the Michael Page 2024 UK Salary Guide.
“Candidates are nervous to move due to uncertainty around job security and clients are becoming increasingly selective about hiring decisions and packages as they look to fulfil their business needs.”
Average salary increases in small to medium enterprises (SMEs) will remain higher at 5 per cent compared with private sector organisations, the CIPD adds.
“This, combined with the finding that fewer SMEs are hiring, indicates that SMEs appear to be focusing on retention of existing staff as we enter 2024,” it says.
“Many people will also benefit from incremental progression or promotions, bonuses or a pay bump when switching jobs.”
The CIPD data is based on a poll of more than 2,000 HR professionals and decision makers in the UK and shows that 24 per cent of organisations in the country plan to increase their employees' base pay by between 4 per cent and 4.99 per cent.
One in five companies (19 per cent) will increase salaries by 2 per cent to 2.99 per cent, while 12 per cent are planning a pay freeze, it adds.
“However, a larger proportion [17 per cent] are still planning pay rises of above 6 per cent in 2024," it says.
Meanwhile, jobseekers’ salary package expectations are evolving and they are seeking a better work-life balance and to develop new skills, Mr Rode says.
“As a result, businesses must look beyond the numbers and ensure they’re offering a holistic package to ensure talent – existing and new – feel safe, secure and, most of all, motivated,” he adds.
What benefits can UK jobseekers expect in 2024?
Attractive employee benefits can give companies a competitive advantage when it comes to recruitment, as well as boosting staff retention, morale and productivity, UK job search engine Adzuna says.
Up to two thirds of employees believe the benefits offered to them are equal to or more important than their basic salary, Adzuna said in a blog post in December.
“Indeed, demand from employees for benefits may also be on the rise, with 83 per cent of businesses having experienced an increase in requests from employees for enhanced well-being benefits,” it said.
However, three in 10 professionals say they do not receive any workplace benefits at all, according to a study conducted by recruitment specialist Reed as part of its 2024 UK salary guide, which surveyed 5,000 employees last November.
The three most common benefits received by employees in the UK are: flexitime (20 per cent), a company pension higher than the required amount (18 per cent), and an annual salary increment (18 per cent), the Reed survey found.
However, 45 per cent of workers say they would prefer an annual salary increase, 36 per cent want to be offered a four-day working week and 36 per cent want flexitime, it shows.
“In 2021, we saw higher demand for health-related benefits, which reflected the stress the pandemic had on workers,” Reed says in its report.
“Last year, workers were feeling the initial impact of rising energy bills and inflation, which was reflected in their desire for more financial-led benefits, such as salary increments and pensions. This year, however, there’s a greater balance between money and flexibility.”
Other benefits on employees' wish lists include private health care, a cycle to work initiative, life insurance, uncapped annual leave and a gym and wellness programme, Reed says.
Will employees receive a bonus in 2024?
The positive effect that year-end bonuses have on employees is well-known. Not only do they boost morale for a job well done, they are also a welcome financial boost for workers, particularly during challenging economic times.
In the UK, 41 per cent of employees do not expect to receive a bonus for their hard work in 2023, according to the Robert Walters 2024 salary guide, which surveyed 4,000 professionals and 2,000 employers for its annual report.
A year-end bonus remains a crucial retention tool, influencing almost four in five employees' career plans
Chris Eldridge, chief executive of Robert Walters UK
More than half of professionals, or 68 per cent, polled for the survey say they would “seriously contemplate” leaving their current job if they missed out on a bonus, it adds.
However, 59 per cent of professionals are expecting a bonus of between 10 per cent and 30 per cent of their salary.
“A year-end bonus remains a crucial retention tool, influencing almost four in five employees' career plans,” Chris Eldridge, chief executive of Robert Walters UK, says in the report.
“It also helps with motivation for the following year – when people feel appreciated, they are more committed to continuing the hard work to reap the benefits in the years to come.”
Meanwhile, a third of employers polled for the survey say they have not budgeted for end-of-year bonuses, but 52 per cent have, according to Robert Walters.
UK salary guide 2024
Check out our detailed salary guides below for a snapshot of how much you can expect to be paid in your sector in 2024.
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
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The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
This is how many recognised sects Lebanon is home to, along with about four million citizens
450,000
More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps
1.5 million
There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m
73
The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association
18,000
The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme
77,400
The number of people believed to be affected by the current nationality law, according to the 2009 UN study
4,926
This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Benefits of first-time home buyers' scheme
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DLD registration fee can be paid through banks or credit cards at zero interest rates
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Date started: January 2017 Founder: Khaled Zaatarah Based: Dubai and Los Angeles Sector: Technology Size: 21 employees Funding: $7 million Investors: Shorooq Partners, KBW Ventures, Vision Ventures, Hala Ventures, 500Startups, Plug and Play, Magnus Olsson, Samih Toukan, Jonathan Labin
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
