Under-worked and over-appreciated: the strange situation facing locals in the banking sector

Fuelled by onerous localisation targets and a shortage of candidates, demand for GCC nationals in the banking sector remains sky high, and salaries continue to increase exponentially. The problem, however, is convincing them to stick around after they've been recruited.

In places like the UAE and Qatar, private sector companies have always faced stiff competition for local candidates from public sector careers. The latter pay well, and - because of the tendency to allow employees to work from 9am-2.30pm - are generally considered something of a cushy job.

The banking sector is more successful than most in hitting localisation targets - a number of local firms now employ over 40% nationals - but the problem is not convincing nationals to take the roles, it's convincing them to stay.

"It is, quite simply, a revolving door," one HR manager working with a number of banks in Dubai tells us. "There are a few problems - firstly, the high level of classroom learning required to bring them up to speed is off-putting (particularly after years in academia), secondly there are the cultural differences and finally there's the perception that they've been brought in to fulfil a quota, rather than on their own merit."

While undoubtedly a good proportion of Emiratis and Qatari's entering the banking sector are motivated to succeed, the training and development programmes can often be overwhelming - placing a large amount of pressure early on in their career - the HR director says.

It's made clear that they will be rapidly promoted, and a lack of real work experience doesn't give them enough time to really understand the sector. Very often, therefore, these management jobs are more figurehead than actual leader.

The result is that a decent proportion drop out during, or immediately after, the training process, says the HR manager, hence banks' year-round graduate recruitment programmes.

According to UAE Ministry of Labor statistics, as many as 15% of Emiratis drop out of private sector jobs because of cultural differences and nationals make up just 20,000 of the 3.8m workers outside of the public sector. What's more, 23% of Emiratis between 15-24 are unemployed, showing the lack of take-up for private sector jobs.

"Quota systems never have worked and they will never work," says Charles Wilson, a nationalization expert and senior HR advisor to the Chartered Institute of Personnel and Development. "Banking has been more successful than most private sector industries, but there's still a lack of structured, employer-led training and development. Very often it's giving nationals a taste of the various elements of the banking sector and then letting them decide what they prefer."

Banks are so scared of losing local candidates that they're very often coerced into letting them choose which path career they prefer, he says. There's an ongoing fear that nationals will simply leave for either the public sector or the family business, he says.

The solution favoured by regional governments still seems to be monetary. In the UAE, Emiratis earn 33% more than their expat counterparts, according to figures from the Department of Economic Development in Dubai. Banks in Qatar, most latterly Qatar First Investment Bank, have raised salaries for locals by 60% to keep up with pay in the public sector.

"Nationals have to realise that competition and hard-work are required to make it in industries like financial services, so they shouldn't be demanding the benefits found in the public sector," says Wilson. "Employers also need to be more hard-nosed in their hiring practices and ensure local candidates are aware of the demands of the job."