GCC companies predict growth and expansion within the next six months
A study by the global human resources consulting firm Mercer has revealed that across the GCC 73 per cent of companies have set targets for higher or similar growth in 2009 compared to 2008 and 94 per cent believe it’s very likely or somewhat likely that these targets will be met.
Despite the economic crisis deepening in the early part of this year, the survey offers a telling insight into what businesses across the GCC are thinking and doing en route to the upturn.
This confidence is reflected across the survey results that covered topics including business results, talent management, incentives, headcount levels, salary planning and training and development. On companies’ retention and recruitment plans, 42 per cent plan to increase their headcount in 2009. The survey also found that almost three quarters, 60 per cent, of companies plan on increasing their headcount during 2010 – some of those by up to 10%.
“The study has brought to light a sense of shared confidence amongst GCC based companies,” commented Bassam Gazal, Mercer’s Survey Project Leader “This is demonstrated not only by the strong business targets, but also in retention and recruitment plans. Our survey tells us that there is a quiet and determined confidence here in the GCC right now, about the rest of the year and into next year and beyond. It’s something we’ve been seeing in pockets for a little while, and it’s good to know that our survey results are backing that up.”
On talent and performance, one in ten companies felt that the crisis had given them an opportunity to attract talent from competitors when previously this had not been a viable option. This is further evidence of the confidence felt by a number of companies and the plans some companies have already put in place to prepare for the upturn.
Over three quarters of companies questioned, 81 per cent, view talent management as more important or as important as before the crisis. This is strong evidence that many companies have or are using the downturn to best align their HR strategies to their business objectives.
Bob Schuetz, a senior partner in Mercer’s GCC operation, said: “We’ve spoken to a number of leading companies from around the Gulf who are looking to adopt a more long term HR strategy to secure their company’s future, attract and retain talent in key positions and ensure an ongoing pipeline of talent for core skills and leadership development. All of these actions are essential to keep ahead of the competition as they move out of these unprecedented times and this survey supports the notion that more companies than not see the pivotal role HR plays in both being competitive today and planting the foundations of future growth and success.”
The survey also found that over a third of companies, 36 per cent, plan on revising their incentive packages to align them with performance and business objectives. A further 15 per cent say they plan to revise their over-all long-term incentive offering. Combined, these statistics demonstrate the growing importance of retaining staff for the long-term and the commitment to the principles of longevity and sustainability.
The detailed study of 67 firms was carried out across the GCC. The multinational and local companies to whom Mercer spoke cover all key economic sectors and represent a combined total of more than 175,000 employees.
