Inflation’s Impact On Salaries Major Concern Among Professionals In Middle East, New Study Reveals

In a recent comprehensive survey conducted by the Association of Chartered Certified Accountants (ACCA), inflation's effect on salaries emerged as a principal worry among finance professionals in the Middle East. With 33% of respondents highlighting this issue among their top three concerns, the annual Global Talent Trends Survey 2024 sheds light on the challenges and opportunities within the accountancy profession.

The survey, which garnered responses from over 9,889 finance professionals across 157 countries, including more than 270 from the Middle East, notes growing wage demands as a significant hurdle in recruiting and retaining talent. A notable 29% of Middle East respondents identified better remuneration packages as a key incentive for switching organisations.

AI and Technology: A Double-Edged Sword

Technology, particularly artificial intelligence (AI), is perceived as a critical tool in the finance sector. A vast majority (83%) of employers are optimistic about AI's potential to enable finance professionals to deliver greater value. However, concerns linger regarding the pace of technological change, with 52% of Middle East professionals feeling overwhelmed. Anxiety about technology, including AI potentially replacing jobs, was evident among 23% of respondents, with 49% specifically worried about AI's impact on their roles.

Despite these fears, there is a strong desire for further training on technology, with 92% of Middle East respondents seeking additional support from their employers. This highlights a crucial area for organisations to address in order to thrive in a competitive market.

The Importance of Well-being and Career Development

Well-being and mental health concerns are also prominent, ranking within the top four work-related anxieties for a third of Middle East respondents. The findings reveal a critical need for organisations to prioritise mental health, with 57% of professionals feeling that their work pressures negatively affect their wellbeing and 70% seeking enhanced organisational support.

Career development opportunities, or the lack thereof, stand out as the primary concern for 34% of respondents. Conversely, the promise of better career prospects is the leading reason for 38% of professionals considering a move to a different organisation. This underscores the importance of addressing career development to attract and retain talent.

Hybrid Working and Diversity: Emerging Trends

The survey also delves into working arrangements, revealing a growing preference for hybrid models. Despite 76% of employees favouring hybrid work, a significant 77% report being fully office-based. This discrepancy highlights a gap between employee preferences and organisational policies.

Furthermore, diversity and inclusion emerge as critical factors for 82% of Middle East respondents when choosing an employer. However, 41% believe their organisation prioritises certain aspects of diversity over others, suggesting room for improvement in this area.

Global Economic Strains and Talent Retention

The global economic environment continues to exert pressure on talent attraction and retention, with 60% of respondents dissatisfied with their current level of pay. The survey indicates a strong demand for salary increases, with 71% of professionals requesting a pay rise in 2024. However, 58% believe they may need to leave their organisation to achieve this.

Fazeela Gopalani, Head of ACCA Middle East, emphasises the critical insights provided by the survey. "Understanding key workplace issues and opportunities in finance is essential for designing effective talent attraction and retention strategies," Gopalani states. She further highlights the ongoing challenge of retaining talent amid high turnover rates and the opportunity for employers to stand out by fostering a strong culture of diversity and inclusivity.