eFinancialCareers

Banks are splashing the cash on locals as they struggle to meet nationalization targets within a limited talent pool. But what do they really think about this?

The government in the UAE has decreed that in all firms 40% of employees should be locals, which is no mean feat when you consider that only 20% of the population are Emiratis. Add niche banking skills to the mix and it becomes even harder to attract the right candidates.

It’s no surprise that banks are playing against each other for talent, and as a result packages for locals are heading northwards.

Hani Hirzallah, head of human resources (GCC) at Barclays, which has grown from 100 employees to 900 in the last year in Dubai, and won two awards for its Emiratization programme, says: “We tend to review all staff salaries on an annual basis, but it is necessary to do it on an ad hoc basis for UAE candidates, such is the competition for positions.”

Salaries for locals in the UAE come in at around a third higher, or banks will reward them in other ways.

Tim Knight, head of compensation and benefits at the National Bank of Abu Dhabi, adds: “We have expats and locals on the same grade, but pay our nationals a more generous allowance based on the qualification they have – cost of living allowance or bonuses. It makes it easier to manage, and costs don’t go to the bottom line.”

Elsewhere in the GCC locals don’t enjoy such a hallowed status. Alison Abu, executive director/head of human resources at Gulf Finance House in Bahrain, says: “Nationalization is on the agenda here, but we don’t have such an obligation to fulfil the quota. Generally, those from Western Europe get paid more than locals because they have better skills and experience. And you have to pay expats more to attract them here.”

Dr Ramakrishna Mowa, acting head of HR at Emirates Bank, reckons the number of locals in the bank varies at different levels. At associate level, 60% are UAE nationals, in middle management the figure’s 30-40%, and at the senior management end it shoots up to 70%.

He adds: “Expat employees are an integral part of the talent pool, and mixing it up helps internal competition and raises the performance bar.”