UAE Companies Slash Costs Up to 75% with Remote Worker Salary Reductions

Asma Ahmed - | UAE

In a bid to optimize costs and enhance profitability, numerous companies in the UAE are turning to remote workers located outside the country, offering salaries up to 75% lower than those for full-time employees within the Emirates.

87% of UAE firms plan permanent hires and seek remote workers for cost savings.

Recruitment consultants note that local firms are increasingly tapping into talent pools in Asia, the Middle East, and South Africa to fulfill their workforce needs.

According to Hays' GCC Salary Guide for 2024, a significant majority of companies (87%) are intending to recruit permanent employees this year. Additionally, 19% are considering hiring temporary contract workers, while 16% are exploring freelance options.

Nicki Wilson, managing director of recruitment consultancy Genie, highlights the emergence of companies facilitating the establishment of remote teams in regions where labor costs are lower than in the UAE. This model is gaining traction across various sectors, including recruitment agencies, technology firms, and customer service-oriented industries.

Furthermore, industries such as sales lead acquisition, technology, data management, and performance marketing are increasingly embracing remote work arrangements.

Mayank Patel, VP of sales for EEMENA and country head of Adecco Middle East, observes a shift in workplace dynamics, with some roles transitioning to fully remote setups while others are adopting hybrid models. He emphasizes the importance of maintaining a balance between office presence and remote work to promote work-life equilibrium.

The UAE's provision of remote work visas for foreign professionals, administered through the General Directorate of Residency and Foreign Affairs (GDRFA), further facilitates the recruitment of remote talent.

Wilson underscores the significant cost savings for companies employing remote workers, with salaries in certain countries substantially lower than those in the UAE. However, she emphasizes the importance of ensuring quality and reputation maintenance through proper training and quality control measures.

Patel notes that remote employee compensation varies based on factors such as job complexity, candidate experience, and company wage policies. Niche roles with specialized expertise may command higher salaries than non-remote positions.

Remote work roles span a range of functions, including customer service, consultancy, marketing, creative design, certain IT roles, recruitment, and back-office administration. Talent sourcing extends to countries such as India, CIS countries, South Africa, and Sri Lanka, known for their skilled workforce and remote work capabilities. Additionally, tech talent from countries like the Netherlands and Scandinavia is also in demand for remote roles.

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Asma Ahmed
Asma Ahmed
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