SHARJAH: Many companies have confirmed that they will not be retaining employees for the current and coming period.
Rumors have also been circulating around the global financial crisis, stating that some companies are discharging their employees or cutting salaries, despite the negative impact that this may have on society as a whole.
Says Sheik Abdullah bin Fahid Al Shakrah, Al Hanoo Holding Chairman, "Everyone has felt the damaging effects of the global financial crisis on the investment process. As such, many companies have sought ways to reduce the negative effects of the crisis.
"Some companies, however, have gone to extreme lengths in dealing with the crisis, such as discharging their employees, while other companies have proved that retaining their employees reflects cooperation and mutual assistance during times of crisis."
Al Shakrah said, whose company is currently developing Al Nujoom Islands and Emirates Industrial City in the emirate of Sharjah, UAE, "Certain companies' loyalty to employees has been strong in the wake of the financial crisis. This is because these companies acknowledge the important role that employees play in achieving the many successes and profits that have been made.
"Furthermore, they are aware that experienced employees are urgently needed to overcome the crisis and begin a new phase of work to bring their vision to reality, which in turn serves the sustainable growth of the country, and results in big returns for these companies."
The government sector seems to be the most supportive, as no employee working in this sector has been discharged.
In fact, the job sector has witnessed a 100 per cent rise in various emirates in the UAE.
The number of employees in the government sector, as per expert reports, is approximately 265,000, while the number of employees in the private sector is about 2.5 million.
There is an estimated 14,000 job applications per year, which means that 80,000-100,000 jobs are needed over the next five years.
The public sector currently attracts 80 per cent of employees, while the government sector attracts 20 per cent.
These figures raise the necessity to support the private sector with more job opportunities in order to achieve sustainable growth for the country.
Source: Gulf Today/BY OUR BUSINESS BUREAU