Simon Stephens, general manager of Digby Morgan’s Dubai-based Middle East team, reports green shoots in the desert.

Reports earlier in the year of there being a renewed confidence in the region have proved well founded with a definite air of optimism going into Q4. The price of oil has doubled from its lows in Q1 and the stock exchanges have rallied to year highs. The summer months and the Holy month of Ramadan have had far less of a negative impact on the level of vacancies than first feared, although the decision making processes are long and arduous with organisations looking to ensure an exact skill and cultural fit before making offers. Deflation in Dubai, predominantly due to falling rental prices and foreign exchange rates, has lead to a reduction in some salary packages but there is little change in other Emirates such as Abu Dhabi.

Dealing with a tough recession has been a real learning experience for the Middle East where the majority of organisations have only ever experienced rapid growth and large profits. In those heady times the HR function naturally developed into a glorified recruitment function and was predominantly trying to cope with the influx of new employees; but throughout this year we have been assisting many organisations transform their HR teams to those than can partner with the business, assist through tougher times and constantly ask themselves what they are doing to add value and improve profitability.

It’s still very much an employee driven market with organisations able to attract a large pool of candidates for almost every vacancy but finding the top talent within the pool is the challenge. Some very talented HR professionals have left the region in 2009, unable to secure new positions and they will be difficult to attract again back again. Recruitment is currently focused on mid and senior hires that can hit the ground running and those that are less reliant on being trained and developed.

An upside of the slowdown has been the fact that organisations are looking at their compensation and benefits capabilities and this has lead to an increased demand for C&B specialists who can advise and guide on not only attracting quality candidates, but also on retaining key employees.


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