Bahrain to Increase Salaries

Average salary increases in Bahrain are set to hit 5.3% this year, according to a report by global consulting firm Hay Group. And at a seminar in the Gulf Hotel on 23 August 23 for human resource (HR) specialists, the consultants predicted that there would be continued steady growth in salary levels next year of around 6.5%.

The report analyses pay data for 14,600 employees in Bahrain. The average pay rise of 5.3% is higher than the forecast of 5% reflecting the steady economic growth of the kingdom. Those at the management level and those with specialist skills have reaped the biggest rewards and functions including engineers, health and safety professionals and staff in environmental positions command a higher price in the market.

The report also finds there has been an increase in bonus payouts to those in management positions as organisations take steps to change the reward mix to include more incentive based pay, and a smaller proportion of fixed pay. Currently standing at 7% in Bahrain, this element of the pay package is expected to become of increasing importance, said Hay Group Middle East director of reward information services Vijay Gandhi.

'Variable pay, which takes into account individual and business performance, can be used to motivate people and reward the right behaviour effectively. Organisations can also use variable pay to drive efficiency by differentiating for performance,” said Gandhi. 'We anticipate more and more organisations in the region taking this approach. Companies in Bahrain have also increased their training budgets as employee development moves further up the agenda,' he added.

For 2011, the Hay Group reports average increases of 6.5%, ahead of inflation which is forecast at 3.5% for the coming year. 'Salary growth in Bahrain compared to the rest of the region has been very much in line with inflation over the last decade,' Gandhi added.- Trade Arabia