The 2016 Bayt.com Middle East and North Africa Salary Survey, conducted by Bayt.com, the Middle East’s number one job site, and YouGov, the leading market research agency, revealed that more than half (52%) of Lebanon respondents are expecting a salary increase in 2016.
In Lebanon, one in five professionals (21%) believe that their salary is competitive with other companies in their industry, while the majority believe that their salary is lower than the industry average (56%). When asked about the industries which offer the highest salaries, real estate/construction/property development (37%), banking and finance (27%) and engineering/design (21%) emerged at the highest paying industries for Lebanon respondents.
47% of Lebanon respondents claim the salary they earn is, at least to some extent, the main driver behind their loyalty to their company, while 37% claimed their loyalty is not linked to the salary they receive. Besides salary, long-term career advancement opportunities (34%) and line manager (34%) emerged as the most important factors driving employee loyalty in Lebanon.
In terms of equal pay, while one third (33%) claim they are unaware, the largest proportion (47%) with a point of view believed that men and women are paid equally for doing the same work.
“This study was especially designed to provide employers with insights into employee satisfaction levels with their salary and raises. This information is key to guiding both employers and job seekers, so the mismatch between salaries offered and expectations can be successfully addressed. Tools such as Salary Search by Bayt.com can help employers uncover the salaries that are being paid in their industry. The same tool helps professionals gauge their earnings against market average, and thus, learn whether or not they are being fairly paid for the job they are doing,” said Suhail Masri, VP of Employer Solutions, Bayt.com.
Promotions and Pay Raises
In 2015, around one in five (21%) respondents in Lebanon received a promotion, with two thirds of them (61%) receiving an accompanying salary increase.
Surprisingly, close to half of Lebanon respondents (44%) disclosed that they have not received a pay raise in 2015 at all, and 36% of those who did were quite dissatisfied with their raise. In fact, only 7% of Lebanon respondents said their raise was above the inflation rate; 16% said it was in line with the inflation rate, and 50% said the raise they received was below the current rate of inflation.
On the other hand, 17% appear to be very happy or modestly happy with their raise, and 12% believe that the pay raise they received last year was fair in light of their contribution to the company.
As for future expectations, 40% of Lebanon respondents expect a raise of up to 15%, while 36% do not expect to receive a raise at all in 2016. Another 11% were unsure of whether they would get a raise.
Benefits, Bonuses and Promotions
In Lebanon, 25% of professionals receive overtime pay, and 38% receive a company bonus or incentive plan. For those who receive a bonus, 72% said they get an annual or year-end bonus, while 27% get an incentive-based bonus.
In terms of pay structures, two-thirds (65%) of professionals in Lebanon prefer a 100% fixed pay structure, while almost a third (32%) say that they prefer a partially-fixed pay structure, with variable pay for commissions and incentives. Pay structures are annually or biennially reviewed for 39% of Lebanon respondents, while one fifth (20%) do not receive any pay reviews at all.
With regards to additional benefits, 41% of Lebanon respondents say that they receive personal medical insurance, 48% receive transportation allowance and 18% are allotted family medical insurance from their companies. When asked about their preferences, 73% of the respondents admitted that they would prefer to receive a bonus, while others would rather receive family medical insurance, or children’s education allowance, at 32% and 25%, respectively.
Future Plans and Expectations
In Lebanon, 44% of respondents claim that they are planning on finding a better job in their industry within the next 12 months, while 31% state that they will be looking for a better job in a new industry. Interestingly, 24% of Lebanon respondents plan on relocating to a different country in the Middle East in search of a better job.
When asked about future trends, 27% of Lebanon respondents expect salaries to slightly increase, while 8% expect the opposite (slightly decrease). According to the respondents, factors causing salaries to increase include inflation/rise in cost of living (77%), growth in opportunities and economic growth in the country (16%), and good corporate performance/increased profitability (27%). On the other hand, Lebanon residents see poor economic growth/declining oil prices (65%), poor corporate performance/decreased profitability (36%), and employer-friendly laws (20%) as the factors preventing salary increases.
Expenses and Savings
With regards to the rising cost of living in Lebanon, respondents say that they have witnessed an increase in their rent (46%), food and beverage (67%) and utilities (42%). Another 53% of respondents say they have also experienced increases in education, and 41% mentioned entertainment as one of the major cost increases.
The increased cost of living has, in turn, hampered Lebanon professionals’ ability to save: 43% of them admit that they save nothing from their monthly salary.
Masri continued, “As a part of our mission to empower people to lead their lifestyles of choice, Bayt.com has currently more than 10,000 jobs posted on its website on any given day. That is beside the volume of unadvertised jobs that get filled by employers through the CV Search mechanism on Bayt.com. Jobseeker registration on Bayt.com is growing at over 12,000 new registered job seekers a day – a growth that reflects a healthy appetite for jobs across the industry spectrum across the region and corresponds to the fact that the majority of MENA respondents plan to look for a new job in the next 12 months.”
In Lebanon, the most popular choice for monthly investments include investing in local property (12%). It is worthy to note, though, that only 11% of Lebanon respondents make financial investments on a regular basis.
Of those polled in Lebanon, 38% own their own home, while 44% are interested in owning a home in their country of residence, and 53% would like to own a home in their home country.
Joao Neves, Research Director, YouGov, said: “It is interesting to note that 61% of MENA respondents manage to save a portion of their monthly income, with 58% of those living outside their home country being able to repatriate a portion of their savings to their home country. This is a good sign for both employers and job seekers, as the ability to save and repatriate savings will impact other factors such as employee satisfaction and loyalty towards the company.”
Data for the 2016 Bayt.com Middle East and North Africa Salary Survey was collected online from April 1st to April 15th 2016. Results are based on a sample of 8,158 respondents who live in the UAE, Saudi Arabia, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.