02 November 2006

Layman's Guide to dealing salary in Dubai

There are many of you who must have crossed the 2 most important barriers in your job search in Dubai – Getting an interview call and giving a satisfactory interview!

And then you are asked the tricky question: “How much do you expect?” This is a tricky question, especially since you’re coming to work here for the first time. On one hand you’re ready to take the ride, and on the other, you don’t wish to devalue yourself vis-à-vis your career till now. The employer, very well aware of this predicament, will try to squeeze you as much as possible! So how do you prepare for this?

Here are my 7 tried and tested suggestions:

Unlearn your past experiences / expectations
Salary in UAE are based to some extent to attract foreign talent, but are increasingly getting squeezed, as more Expats join in. Hence although converting your country’s salary into UAE may be a good start, it is better not to expect the same formula to work. One simple rule is as follows: See how much is price of a Big Mac burger in UAE equivalent to that in your country; e.g. if Big Mac costs 10 AED in UAE, it may be 25 in your country’s currency. Therefore if your expectation was 5K in your country, your base should be a minimum 2K in this country.

Calculate your basic minimum needs first
Before appearing in the interview, get a hang of your minimum house rent, transport and other fixed expenses in case you accept the offer. For example, you may need (per month) of 2K for an average one room studio, 1K for a 20 min cab ride to your office, 2.5K for Food, Water, Electricity, Internet and Cable. Therefore you need at least 5.5K to start a simple single-life in Dubai. Any offer below this value is not worth considering!

Adjust with your “lifestyle” expectations
Once you have the basic-need calculations, you may try to work out how you’d like to spend life in UAE. For example, you may need a better studio flat, or you need your own car to save on transportation, etc. Or you may just want to save at least (say) 2K per month! Add these criteria to the existing basic calculations.

Do some homework
Well, you may have your figures now – but is that realistic? Check with your peers, friends, consultants, etc. on their recommendations – don’t ask about their views on your calculations! If the feedback is little more than yours – then increase expected salary by 20%. If the feedback is less than yours then decrease expectations by 10%. If the feedback is too disproportionate – then re-look at your priorities / criteria.

Always ask for a little more
It is always wiser to ask at least 20% more than the market rate. This will allow a little room for your negotiation. If the interviewer reacts violently/ negatively, stay calm and ask for their views. Once you know this, don’t quote any value – but talk about the ways you intend to add value to the role, and offer to go down by 10% first. Chances are that they will hire you at your expected salary.

Always get to know the complete package (and more)
If the employer proposes you a salary figure instead, don’t say yes even if it is attractive and acceptable. Ask for the complete benefits and package - understand any hidden expenditures. Then say that you were expecting more (quote a 10% added figure); also add that you’re ready to start off with a promise of a review after 6 months.

Do not budge too lower than your expectations
First, it is not worth it! It will start affecting your self image, your finances and your outlook to life! It may also induce irritation and make you hum strung in the long run, esp. since salaries do not increase in UAE very much, while other costs spiral up frequently. One good way to handle such situations is to say: “I understand your position, but this (i.e. too low) salary would be a terrible compromise for me. I’m sure you won’t let your team member start a relationship on the premise of a compromise.”

Well that’s how I’ve been dealing not only in UAE – but everywhere! However, these are my personal criteria – for which I do not claim any originality or guarantee success whatsoever! Take this as a guide and work out your own calculations to your best advantage. Discussions / suggestions are welcome!

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