Three-year contracts at local banks
Domestic banks in Dubai have found a new way of stopping their staff from quitting.
Tired of seeing their employees quitting for more money after bonuses are paid out, it seems local banks in Dubai are tying staff in with long contracts (and more money) instead.
It's no secret that employees in the city are a fickle bunch and that talent is scarce. However, in contrast to the bonus buyout tactics offered in London, Dubai banks are locking staff in for slightly more cash.
"I recently recruited 20 people for a local bank," says one recruiter. "They were offered better compensation under the condition they would not leave for three years."
This local bank isn't the only one with staff in shackles - apparently, 90% of Dubai-based institutions are doing the same.
Multinational banks, governed by the procedures of head offices, can't dish out such contracts and often pay less, so how can they compete? They look for fresh graduates: "Multinationals act as a school of banking. Five years at a big bank will make you very attractive to local banks, and they will now pay more," the recruiter says.
Ian Jones, managing director at recruitment firm Azrek, agrees: "Education, promotion and a solid career path are the selling points of multi-nationals."
But does this really matter? One Middle-Eastern asset manager thinks not: "It's all about the money. That's all anyone there cares about," he says.
