The generosity of the Saudi government with its workforce left the private sector in a very awkward position. Just after the series of royal decrees that carried in one of them the good news of the two months bonus, the speculation game started amongst the private sector employees. Will there be a salary doubling, or not?!!
The big cats in the Saudi market followed suit almost immediately and started announcing the same bonuses for its staff. Aramco, SABIC, Saudi Airlines, STC, and more. But still, the majority of companies did not, and their employees kept wondering, hoping, and asking for some good news, but their managers kept saying that the big bosses are in a closed meeting, and in some companies, the meeting is yet to finish!!
Now the question is, should they double the salary, or not?
The fact of the matter is that it goes both ways; there are reasons supporting the doubling decision, and there are arguments that just go against it. But before that, it should be highlighted that when talking about private sector, it is inevitable to differentiate between the big and well known cats, I just mentioned some of them above (although some of these companies are not totally private), and the rest of companies which vary in size from medium to small. Someone could argue that the employees working for the big cats do not actually need such a bonus, they already have relatively high salaries and a strong bonuses system. For those arguing this point just be reminded that some of the big, I mean, HUUUUUGGGGE cats, those who profit in millions, do no actually give high salaries or anything, you can call them cheap if you want! And you don’t want me to give you examples, I am sure you know plenty of them!!
Now; these are some of the most important reasons why a company could decide to double:
- Playing the patriotic card: in times like these, playing on patriotism could send some gratifying signals to customers, staff, and, of course, the government itself. I am not trying to imply that such patriotic waves of feelings should not be true or sincere, I am just saying that playing such a card scores sometimes. Now add to the mix the unrest already taking place in the area, the normal card just turns to be an Ace!
- Engaging employees: It is a message that you care, you do not want your staff to feel less happy or disadvantaged. Consider it a motivating surprise.
- Adding to the brand value: getting the word heard that you care about your staff and that you actually have some good cash to distribute around could add some edge to your brand. Customers could trust you more, regulators could love you more. Also, your whole working environment might seem more appealing to top talents everywhere, you know how to take care of your staff, right!
Now what about the arguments supporting the decision of not to double:
- It’s too late: most of the Saudi companies already prepared their 2011 budgets. It is just not practical to disturb the whole year’s plans and start playing with the cash flow and reserves. That’s a strong argument especially for the medium and small organizations.
- I am fair: some companies might argue that their salaries and bonuses system is robust, and that its employees do not need any extra incentives, they are happy and satisfied. The tricky part in this argument is that the employees themselves should be believing in such claims, not only the managers! If this I-am-fair-card played very well, it could lead to both employees engagement and brand value addition as just mentioned above.
On which side do you stand?







