A dose of reality for Emiratis trying to break into banking
The rhetoric coming out of most banks in the UAE when it comes to Emiratisation is simple – recruiting local candidates is a key priority, they're well-represented in the workforce but quotas will continue to increase and Emirati workers are the long-term solution to the burgeoning regional financial industry.
But are the problems engulfing the banking sector finally starting to impact Emiratisation? It would seem so.
In January, regional banks were talking up their plans to hire hundreds of UAE nationals during one of the large career fairs, Tawdheef, in Abu Dhabi. Certainly, some of the recruitment plans were relatively impressive, but compared to previous years, the numbers are significantly smaller.
Emirates NBD, for instance, intends to hire 250 graduates in 2012, compared to 462 in 2011, while HSBC is releasing a relatively small 60 new roles for Emiratis across all levels of seniority.
"The feedback I'm getting from regional institutions is that there will be a significant slowdown in their recruitment activities during the first half of 2012. Emiratisation is, unfortunately, a victim of such a scenario," says AbdulMuttalib Al Hashimi, managing director of Emiratisation consultancy Next Level.
Graduate recruitment is continuing, albeit at a slower level, as is some recruitment for critical functions, but any expansion strategies are largely off the table, he adds.
"Dubai and some of the smaller states are drawing in the horns when it comes to recruiting nationals," adds Charles Wilson, a nationalisation expert and senior HR advisor to the Chartered Institute of Personnel and Development. "The number one priority for banks now is survival, but the number two priority is still Emiratisation – in the longer term it is both more preferable and cost-effective than relying on an expat workforce."
Emiratis are relatively well-represented within the banking sector; at 35.4% it's one of the highest Emiratisation rates in the private sector, according to the National Human Resources Development and Employment Authority. Perhaps banks, therefore, have a little leeway to take their foot off the accelerator.
Another indicator of banks' new-found frugality is the amount their willing to pay Emiratis. It's always been a headache for banks, with good local candidates often switching employers for large increases in salaries and institutions being held to ransom by the best candidates. This is starting to change.
"There was always huge variance in pay between different emirates and institutions, which meant salary inflation was a problem," says Al Hashimi. "Now, banks are making an effort to regulate pay, and are working together to ensure uniform salary ranges."
