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Competence of Local Workforce
The United Arab Emirates is one of the fastest growing economies in the Middle East. The country’s economy is based on the oil industry and tourism. The city of Dubai is composed mainly of foreigners who seek employment opportunities in the country. To support this growing economy, the government and the private sector has invested massively in the education sector. Although the government has created policies meant to promote education, the country has been criticized for poor educational outcomes. Those graduating from Dubai’s education system are viewed my employers as not having the competence required to meet the changing needs of the business world. Although the government has created policies meant to equip its human capital with competence, its commitment is questionable given its low investment in the education sector. Despite the questionable local workforce competence, the country is an attractive country for tourism and hospitality establishments since the country has a high disposable outcome. Moreover, the country has attracted qualified expatriates to work in various sectors including the tourism and hospitality industry.
Availability of Local Talent
The United Arabs Emirates has experienced a shortage of local talent, especially at the managerial level. The number of local professionals working in Dubai corporations is very low compared to the foreign expatriates. This situation has affected private investors because the few available locals are unwilling to work in the private sector (Madar Research Group, 2003). The private sector work for long hours and has few non-monetary benefits compared to government jobs. Therefore, local people in Dubai prefer government jobs, which offer short working hours and many non-monetary benefits. This is disadvantageous to private sectors, which include the hotel industry as local talents are rare.
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Salary Levels
The local professionals demand higher salaries than expatriates. Expatriates come from Asia countries and Africa, where employment opportunities are few. They are willing to work for low salaries whenever employment opportunities arise. The disadvantage of this situation is that private investors neglect working conditions since the expatriates are willing to work in poorer conditions compared to locals. However, corporations can capitalize on the availability of competent low cost labor provided by expatriates to maximize their profits.
Turnover Rates
The employee turnover rates in the private sector are higher among nationals than among expatriates. This is influenced by the low levels of satisfaction among the locals as they prefer government jobs with few working hours and better working conditions. Private investors such as hotels will find it hard to satisfy the local professionals. However, the availability of qualified expatriates is positive aspects that investors can capitalize on to improve their performance.
Challenges of Attracting and Retaining Local Talents
The biggest challenge in attracting and retaining local talents in Dubai is their availability. There are fewer local talents compared to expatriates. Moreover, the few talents available prefer government jobs to private sector employment. Front the employers’ perspective, local talents from Dubai training institutions are not competent enough to face the dynamics of the current job markets (Cameron, 2003). The availability of cheap and competent talents from expatriates presents a fair deal to private sector corporations compared to local talents.
Compensation Challenges and Their Solutions
In case problem arise, resulting from salaries differences between the local and expatriates, the company can harmonize the salaries by matching them with those of similar corporations within the country and region. Moreover, the company can base its compensation on performance levels. This ensures that the money paid out to employees, whether local or expatriate is legitimate and justifiable. By basing compensation on performance, the employees will be paid on merit of their performance.
