Maximizing Executive Compensation in Saudi Real Estate Organizations: An Analysis of Variable Pay Structures and Talent Retention Strategies

Title: Saudi Real Estate Companies in Talent War with UAE: Rethinking Executive Compensation Strategies

In the competitive real estate market, Saudi Arabia (KSA) is emerging as a main competitor to the United Arab Emirates (UAE) in the war for talent. According to a recent analysis, the proportion of variable pay in executive compensation in KSA lags behind other developed economies, potentially putting Saudi-based companies at a disadvantage in attracting and retaining critical talent.

To address this talent challenge, Saudi-based real estate organizations are urged to align more executive pay to be variable based on company performance through sales incentive plans, short-term incentive plans, and long-term incentive plans. This shift towards long-term incentive plans can help retain crucial talent and align with long-term performance measures, ultimately optimizing the pay-productivity relationship.

The analysis also revealed that real estate companies in the UAE are focusing on cash flow generation through sales, while KSA is more focused on infrastructure development and construction. This difference in focus has resulted in higher salary premiums in Sales & Leasing and Marketing functions in the UAE, creating a flight risk for professionals in Development, Strategy, and Investments functions who may be enticed by higher salaries in KSA.

In response to this talent challenge, companies in the UAE are advised to rethink their compensation strategies and consider implementing measures such as career development opportunities, positive work culture, and employee recognition programs to retain their competitive advantage.

Amidst these talent challenges, companies in the real estate sector must stay agile and responsive to market changes by rethinking their human capital strategies. Aon offers support to companies in the real estate sector to help them make better human capital decisions and drive the change needed to maximize their investment in people.

For companies looking to navigate talent challenges and optimize their human capital strategies, reaching out to Aon at [email protected] can set the stage for success in the dynamic real estate market.