Some companies in the UAE are expanding commission-based incentives beyond their sales teams to reward employees for exceptional performance. This initiative is helping UAE companies retain the best available talent while employees benefit in the form of additional income amid the rising cost of living in the country.
“We have seen a rise in commissions/bonuses for people outside of sales. It may be calculated on business performance or department key metrics. They may even be based on customer satisfaction in retail or customer service-focused environments,” said Nicki Wilson, owner and managing director of Genie Recruitment.
Jigar Sagar, founder and partner of recruitment firm Talent Higher, said employees are looking for positions which have incentives in places that allow them to make additional income tied to performance.
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“Traditionally, commissions were predominantly offered to sales positions. Now we are seeing the trend where people who are working in the services and operations are looking for positions where incentives are tied to KPIs. Indirectly, they are seeking ways to grow their income – not at the expense of the business, but delivering quality to the business so that company makes money and they want a cut out of it,” said Sagar, a serial entrepreneur.
The cost of living in the UAE has increased in the past three and a half years due to a big jump in rentals among others.
How employees are increasing their income
Sagar told Khaleej Times in an interview that employees are very keen to find options to generate additional income within their organisation.
“They take up additional tasks within the organisation, rather than look for a second task at a different company. They are indirectly looking at second employment with the same employer. Employees merge two positions so that they can make a little bit more income. The companies are also offering this because they probably don’t want to pay two salaries. So this way the employer also saves money,” said Sagar.
Secondly, he said employees have started doing side hustles and freelancing work.
“We don’t see many people doing 2 or 3 jobs in UAE. They are doing one job, but a lot of employees are using whatever skill-set they have and offer freelance services. For example, graphic designers are selling digital art pieces on e-commerce platforms to earn additional income. That kind of second revenue streams are growing tremendously. We see a huge growth of freelancers and solo entrepreneurs – one-person company.”
Sagar said as cost of living has increased, employees have gone back to the drawing board to cut expenses. “I see people sharing carpooling, downsizing accommodation. They are not wasting money any more. You can see that people are moving a little bit away from expensive brands when it comes to shopping, they are staying true to relevant and important as an expense.”
In order to increase their income, Nicki Wilson of Genie Recruitment said there are more people opting for side hustles and investments, etc. “But not all streets are paved with gold… hardly any in fact. If people concentrate on their jobs, they may earn more money or get more opportunities. I am seeing a very distracted workforce rising in this generation and it is driven by social media.”
She stated that there are a lot of ‘job hoppers’ who switch jobs to increase their income, but warned that it could damage the candidates’ future job prospects.
“We see a lot of ‘job hoppers’ and perhaps in the short term this increases income but it can be very damaging on the overall CV, so we would always advise to look at career advancement in a holistic manner. Considering salary, benefits, culture, progression, the team and does it align with your career goals and not just financial,” she suggested.
She added that more benefits like schooling should be implemented by employers to help employees overcome the rising cost of challenges.
“Employers should sit and ask their employees what they need and start implementing new policies to alleviate some of the rises in costs. This could include incentives, cash bonuses, extra flights, family benefits or even wellness-related activities. At the end of the day, it’s much more expensive losing good employees and it might be something small that is needed to retain,” said the founder of Genie Recruitment.