80% to Increase Headcount in the next two years, says Darwinbox Study
To support the hiring drive, 64% of UAE organizations plan to adopt robotics and automation for HR.
Additionally, 64% plan to invest in digitizing their HR Systems, while 53% plan end-to-end process redesign.
Darwinbox’s “HR Evolution Perspectives 2023” study, in collaboration with People Matters, explores HR trends in the UAE region
C-level executives (CXOs) in the UAE overwhelmingly anticipate revenue and profit growth for their companies in the next 1-2 years, a new study by Darwinbox has revealed. The “HR Evolution Perspectives 2023” report by the HR software leader provides an in-depth analysis of what companies and employees expect from HR today and how equipped HR departments are to handle it.
The study found that 89% of UAE CXOs expect profitability to rise, with 89% anticipating revenue growth. Almost three-quarters (72%) expect this growth through M&A, while 82% anticipate growth through organic expansion. As sustainability kicks into top gear, financing of green initiatives is rising, with 67% of CXOs expecting a rise in ESG investments.
Meanwhile, 80% of these CXOs believe their organization will increase headcount. The study indicates that along with the focus on increased productivity, CXOs are also looking to hire for critical capabilities and emerging skills.
Chaitanya Peddi, Co-founder of Darwinbox, said: “Undeniably, the CXOs in the UAE have an extremely positive economic outlook, and this will convert into more hiring in the coming 12-24 months. Hence, there will be more emphasis on strengthening the HR functions. HR teams must navigate a period of heightened employee expectations, a rapidly shifting digital landscape, and stakeholder pressure toward inclusive workplaces. The report makes no attempt to downplay these challenges; instead, it calls upon HR professionals to seize the opportunity to transform their organizations, powered by the transformative role of technology.”
Despite the opportunities, UAE businesses are challenged by a rapidly shifting digital landscape, remote and hybrid work models, and renewed demands for more inclusive and sustainable work practices.
UAE CXOs identified the inability to align culture and low employee productivity as a significant risk, with 38% saying their organization could not attune its corporate culture to changing business environments. With the full force of digital transformation sweeping through the business world, 69% of CXOs in the UAE now recognize the imperative of adapting to new digital work paradigms. Alarmingly, 31% of them feel unprepared to effectively address this challenge, revealing a significant vulnerability. A further 31% said they cannot redefine work by effectively leveraging digital and connected teams.