How to offset the labor shortage in 2022 in the UAE

labor shortage

Building a strong and talented workforce is a paramount mission for your company nowadays. However, it can be challenging in some places where understaffing has become a major issue, such as the UAE. Hence, you must learn how to offset the labor shortage in 2022 in the UAE.

In this article, you will discover how to offset the labor shortage in 2022 in the UAE. Here, you can learn what labor shortage is, how it was generated, and how you can navigate through it. Come and review the following topics to know how to deal with this problem:

  1. What is a labor shortage?
  2. Which factors generated the labor shortage in 2022 in the UAE?
  3. How can your company navigate through the labor shortage in the UAE?
  4. Where can you find more information about Labor in UAE?

1. What is a labor shortage?

how to offset the labor shortage in 2022 in the UAE

One day not so long ago, you arrived at your office and started to assess which positions needed new employees. Later, you communicated your requirements to your HR department which then started with their sourcing and recruitment activities. It all looks good so far for your business.

But, after a few days, you received a phone call from such a department with some bad news. They told you they started sourcing for candidates, but they could not find almost anyone with the required skills. Furthermore, the ones that have such skills were not interested.

At this point, you most probably asked yourself “what is going on?” multiple times. Luckily for you, we have the answer to your question: your company is being affected by the labor shortage. In essence, it happens when labor is not available or interested in employment.

In the UAE, the labor shortage is now a major issue many firms are facing. Some of them are dealing with the problem by seeking the services of contract staffing, but it is not enough. Therefore, you must understand how to offset the labor shortage in 2022 in the UAE.

2. Which factors generated the labor shortage in 2022 in the UAE?

First and foremost, you cannot find a solution to any problem without knowing how it started in the first place. When it comes to how to offset the labor shortage in 2022 in the UAE, the reasons for such a problem are similar to the ones encountered worldwide.

Above all, the labor shortage in Dubai and the rest of the UAE is related to several global factors. Depending on your line of business and more, you can find certain factors that are affecting staffing in your company.

Nevertheless, we should show you the big picture. That is to say, you should know which factors generated the labor shortage in the UAE for all companies. In this sense, we did our research and found three main factors that are causing it.

Moreover, such factors can apply to any business and any type of worker. For instance, you will find out one of them is related to skilled workers, such as accountants and finance staff. Hence, you must review further our recommendations on how to handle this situation adequately.

Let us now show you in detail the three main factors that are generating the labor shortage in the UAE:

2.1 Less available skilled workers

Certainly, labor around the world is changing rapidly. Now, you can see that the new generations do not find attractive careers in certain professions. Unfortunately, you can find between those professions the ones with the skills your company needs. As a result, you now have fewer available skilled workers.

In this matter, you must know that this new generation of employees wants different things. They now search for features such as flexibility and constant professional growth. Such features are not a current part of employment associated with certain skills.

Furthermore, you can also find out that the few remaining available skilled workers are highly demanded. Thus, they are sourced and recruited much faster than others. It can leave your company with the competitive disadvantage of having a less skilled workforce.

On the other hand, this is a factor that is affecting some professions more than others. For instance, you can find there is a lower availability of technical staff than of any other kind. Consequently, you must know how to make employment related to these skills in your organization attractive.

2.2 COVID-19

Undoubtedly, the most influential factor in the labor shortage in Dubai and throughout all of UAE is the COVID-19 pandemic. Unequivocally, it affected your business at many levels, especially in its finances and staffing. After all, the pandemic hit all the industries substantially.

When it comes to labor, you can find there are two concerns related to this factor. The first one is that many employees no longer feel protected against the COVID-19 in their jobs. On the other hand, some employees are also having vaccine hesitancy that is affecting their working environment.

As a result, many workers you need are leaving and taking a different approach. For example, some of them are migrating to remote work. It can be great news for your business if you are seeking customer service executives. But, it is not so good if you need hands-on skills.

2.3 Wages

After passing the peak of the COVID-19 pandemic, most companies in the UAE made financial cuts to stay operational. Some of them make these cuts in supplies and raw materials, which means they are manufacturing fewer products. But, others are taking the wages approach.

In other words, they are choosing to reduce wages among their workforce. Consequently, their employees are fleeing to other businesses or entering temporary employment to search for better compensation. The final result of this tendency is a labor shortage.

Such low wages are generating understaffing in many businesses. Indeed, they are among the top reasons understaffing is happening in nursing homes today. Hence, you must find ways to make working in your organization more appealing financially. After all, wages are among the top priorities for the labor in UAE.

3. How can your company navigate through the labor shortage in the UAE?

how to offset the labor shortage in 2022 in the UAE

You just reviewed the main factors that are generating the labor shortage in 2022 in the UAE. Now, it is time to figure out how you can offset this problem. We know such a scenario looks scary, but you can find here ways to navigate through it.

Certainly, a labor shortage means you are going to have a difficult time searching for new employees for your business. However, it does not mean you are not going to find them. You just have to change your perspectives on certain topics to increase your chances of employing them.

Depending on factors such as where you are located in the UAE and your industry, you can apply several options. In this matter, we also did our research and found four options that apply to any business. Hence, you must at least consider applying some of them in your company.

On the other hand, applying such options may also represent a greater workload for your HR Department. Therefore, you can find it helpful to hire the services of HR support staff to assist them.

Let us now take a glance at what you can do to navigate through the labor shortage in the UAE:

3.1 Offering better benefits

Indeed, one of the methods you can use is to make your company a more attractive place to work. It involves changes in several aspects, but the most effective option is to offer better benefits to your employees. After all, it is one advantage they always seek.

In the world of the compensation benefits of your employees, you will find many alternatives to use. For instance, you can offer them better healthcare insurance or additional services, such as daycare for their children.

Other benefits you can offer can be on the financial side. For example, you can increase their annual bonuses or apply monthly productivity incentives that your employees can win. Here, your goal is that your potential candidates see these benefits and say “I must work there!”

Another great option you can apply regarding benefits is to offer annual or monthly events for your staff. In this sense, you should seek the services of event staffing to ensure such events will be memorable for them. This way, they will add fun to their already awesome jobs.

3.2 Higher pay

Without a doubt, you can attack the labor shortage related to low wages by offering higher salaries to your workers. Above all, it is an action you must perform for your highly skilled staff whose compensation was badly hit.

Certainly, your labor expenses are among the highest of your business and higher pay would increase them further. But, you will also need skilled and professional employees in your staff to increase your company’s productivity. Hence, it is a risk you must take for your company’s growth.

In this matter, you can offset the labor shortage in Dubai by calculating a proper wage increase in your organization. However, doing such calculations adequately can be challenging. Thus, you can find it helpful to hire payroll staffing services for your organization.

In short, you will have a better chance of finding the best employees by offering higher pay. We know it can be tough at first, but you will later see the advantages of having a talented workforce. It is an investment with great future retributions.

3.3 Safer working environment

After all that we went through during the COVID-19 pandemic, people started to care much more about their health. When it comes to labor in UAE, workers are now expecting to see strong healthcare protocols in their companies. Their top priority is to be safe against COVID-19 in their job.

Therefore, you must design proper healthcare strategies to build a safer working environment in your business. That is to say, you can combat the labor shortage by setting health PPE mandatory in your organization. Moreover, you can also establish a weekly testing schedule for your employees.

Your goal here must be to ensure your workers and future employees your company is assessing the necessary healthcare concerns. This way, your organization will be more considered by job seekers that care considerably about their health.

Most importantly, these are strategies you must apply especially for workers that will be in direct contact with your customers. For instance, you shall always provide health PPE for your tally clerks to work safely.

3.4 Career growth opportunities

Most racing drivers are always searching for competing in categories that allow them to reach the top competitions. In other words, a racing driver is in Formula 3 mostly because he eventually wants to be in Formula 1.

Similarly, people that are seeking a new job will always find attractive a company where career growth opportunities exist. Thus, you can overcome the labor shortage by ensuring promotions and training for your future employees.

As a result, you will have a motivated team with employees always searching for new knowledge and working experience. It is all about increasing your company’s efficiency while upgrading their careers in the process.

4. Where can you find more information about Labor in UAE?

It is terrifying when you need to fill positions in your business and you cannot find candidates for them. Therefore, you must know what is causing this and how you can overcome it. In other words, you must know how to offset the labor shortage in 2022 in the UAE.

Above all, dealing with a labor shortage in Dubai can be easier by seeking the services of a staffing agency. In this sense, we on Connect Staff can offer you the right strategies and methods to overcome this major issue. Our meaningful work will get you the labor you need.

Thus, come and avoid any terrifying scenario by working with us. We will help you with our deep knowledge about labor in UAE. Find a minute to contact us to start this amazing journey. You can do it by calling us at +971 43 316 688 or with an email at contact@connectstaff.ae.

On The Talent Point, our job offers allow you to upgrade your professional career from the comfort of your home. All you must do is apply to one by uploading your CV to thetalentpoint.com. Furthermore, you can contact us via email at contact@thetalentpoint.com. Come and apply today!

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