'More employees leaving jobs after salary hikes delayed'

Lack of communication or perceived appreciation also reasons for disengagement: Survey

- Nandini Sircar [e-mail]

Business leaders in the Middle East, including the UAE, have reported a rise in employee turn-over after delaying salary hikes for professionals and white-collar employees, a new report reveals.

The Robert Walters Middle East Salary Survey 2025 found that 68 per cent of respondents acknowledged higher attrition rates as a direct result of delaying pay hikes, a signal that efforts to cut costs are taking a toll on workforce stability.

With a shifting economic landscape, many companies are making tough financial decisions to manage overheads. One common response has been to defer or scale back salary reviews. While this may help balance short-term budgets, the long-term consequences are becoming apparent.

According to the survey, 32 per cent of business leaders said that holding off on pay rises has also resulted in a notable rise in employee disengagement. This disconnect can snowball into broader morale issues, reduced productivity and an erosion of company culture.

“Businesses are under immense pressure to keep costs down and for many, salary increases just haven’t been feasible this year. In fact, 77 per cent of business leaders said budget constraints and business performance were the top reasons for delaying or reducing pay rises,” says Jason Grundy, managing director at Robert Walters.