UAE’s most young employees prefer entrepreneurship

The Bayt.com ‘Millennials in the MENA’ survey, recently conducted by Bayt.com and YouGov Siraj, a research and consulting organization, has revealed that in the UAE, millennials (working professionals 35 years of age or below) are considered to be innovative and hardworking by older peers, and that the majority of them (71%) consider entrepreneurship more preferable than employment.

Millennial Careers in the UAE: Current and Future
Four in 10 UAE respondents are currently employed in large, private multinational companies (44% of those under 35; 39% of those 35 and up), though the preference for those under 35 is to work in the public or government sector. This is because of the attractive salaries offered (52%), as well as the perception of more opportunities for learning (50%) and career growth (50%). A third of those aged 35 and above are content in their current industry, because of the greater job satisfaction (45%) and career growth opportunities (46%) offered.

Interestingly, more than half of all UAE respondents agree that unemployment is a significant issue in the country.

A third of UAE respondents (32% of those under 35; 37% of those 35 and up) got their current job through a referral. The majority (28%) under the age of 35 are currently in their third job, while those aged 35 and up claim to have had more than five jobs (29%). For the most part, UAE respondents can only see themselves working with their current organisation for the next 1-2 years. Six in 10 respondents state that the factor that would encourage them to be more loyal to their company is a good work-life balance. Authority to take decisions is an important loyalty factor for more respondents in the 35+ age group. Training opportunities and having friends at work also encourage young people to remain with a company.

When asked what change they would like to bring to their organisation, respondents under the age of 35 would like to see more training opportunities and the chance to learn more skills (according to 54%), while those aged 35 and up want higher salaries (50%).

Six out of 10 UAE respondents would consider relocating to another country in order to pursue their goals and career prospects (66% of those under 35; 60% of those 35 and up).  Half of all respondents are willing to sacrifice their personal life to further their career to some extent; a third are willing to do so to a large extent (31% of those under 35; 27% of those 35 and up).

A significantly larger number of respondents below the age of 35 (71%) would prefer to have their own business rather than being employed, compared to 58% of respondents aged 35 and up who would consider entrepreneurship.

Younger respondents would like to retire earlier than those aged 35 and above, with 21% hoping to retire before they turn 50. Half want to retire between 50-60 years (48%), with 30% looking to retire after they turn 60. For the respondents aged 35 and up, the majority (48%) are looking to retire after their 60th birthday, though 26% want to retire between 55-60. A further 18% would like to retire aged 50-55, with only 8% considering doing so before then.

Millennials’ Income and Remuneration
In the UAE, 90% of respondents age 35 and over are the chief wage earner in their family, with 66% of those under 35 maintaining the same role. Though the majority are independent, roughly a third of all UAE respondents say that they rely, to some extent, on money from their family as supplementary income.

Preferences regarding income scheme don’t seem to differ much for millennials and non-millennials in the UAE. Nine out of 10 respondents are currently on a fixed monthly income, which is the preferred method of payment. A third of UAE professionals currently work overtime without any compensation. When it comes to benefits, annual/ regular bonus, health and medical insurance coverage for family and housing allowance top the list of preferred perks and benefits for those over 35. Child education allowance emerges as an important benefit sought by the 35+ age group, whereas getting transportation allowance is important for the younger audience.

Personal income allows the majority of UAE respondents to live comfortably, according to 41% of those aged below 35 and 47% of those aged 35 and up. However, for a third of respondents (30% of those under 35; 26% of those 35 and up) their present income allows them to only just get by, and a further fifth of respondents find it difficult to meet their expenses with their current pay.

Sundip Chahal, CEO, YouGov, commented saying: “31% of those below 35 years old in the MENA region claim they are just getting by or find it difficult to meet expenses on their current income. This is highlighted by the fact that nearly 59% of those working in this age group are dependent on family for financial assistance.”

Millennials at the Workplace
Most of the UAE respondents are comfortable working with a generation other than their own. While those aged 35 and up are more comfortable working with the younger generation (62% versus 46%), they do not feel they can learn as much from their younger peers (according to 34%), compared to the 55% of respondents under the age of 35 who feel they can learn more from their older colleagues.

When it comes to education, half of the UAE respondents believe that their academic years completely prepared them for the workplace. The majority feel that pursuing higher education is a way to enhance career options, including better positions and promotions. This is felt more by millennials than by the older generation (67% of those under 35 compared to 57% of those 35 and up).
The biggest barrier to career growth, both for those currently employed and those seeking employment, is a lack of financial support, according to a third of all respondents. Three in 10 (28%) of the respondents under the age of 35 feel that a disconnection between their educational qualification and their current job profile presents a barrier, followed by inadequate or a lack of relevant experience (27%). For respondents aged 35 and up, the biggest barriers for growth are family commitments and responsibilities (29%), and, similarly to their younger counterparts, the disconnection between their qualifications and current job profile (28%), which shows that the older group share a more positive view of the education they have received.

“Education is viewed as incomplete by many respondents,” said Suhail Masri, VP of Sales, Bayt.com. “More of those aged 35+ are planning to enrol in online courses while employed whilst more of those below 35 are planning to take time off work to pursue higher education. Therefore,companies offering on–the-job training would possibly see lower labour turnover. Professionals should start seriously looking at other methods of gaining knowledge to stay relevant, whether through further education, online resources, or training and workshops. The recently-launched Bayt.com Specialties is a great platform for professionals to increase their know-how in their jobs, and even get ranked for what they know. At Bayt.com, our mission is to empower people with the tools and information they need to lead their lifestyle of choice, so we are constantly creating innovative new solutions to make it easier for professionals from all industries and experiences to succeed in their careers, and Bayt.com Specialties is one of these solutions.”

When asked what attributes they attribute to their older colleagues and supervisors, respondents below 35 years of age chose hardworking (52%), willing to teach (45%), understanding (33%) and a mentor (33%). In terms of their perception of their millennial colleagues, respondents aged 35 and up believe that they bring innovative ideas to the table (55%), are hardworking (44%), and exhibit team spirit (37%).

Communication and Technology
Internet penetration is high in the UAE. Four in ten (35% of those under 35; 37% of those 35 and up) spend between 2-3 hours online per day, including time for work and recreation. 20% of respondents under 35 spend 5-10 hours online, compared to 14% of respondents aged 35 and up.

When it comes to communication in the workplace, interestingly, there is no significant difference in preference of communication method by the two age groups. The preference is for face-to-face meetings according to 60% of those under the age of 35, and 65% of those aged 35 and up. Email comes second, followed by phone conversations.

Technology is considered to make respondents more effective at work according to seven out of 10 respondents across all age groups, though a third (29%) of those below 35 years of age believe that their older counterparts do not take full advantage of what’s available to them. A fifth of them (21%) also believe that their older colleagues do not always understand the way in which they use technology.

Life Beyond Work
The top three priorities for respondents in the UAE are the same, regardless of age: financial stability/independence (78% of those under 35; 88% of those 35 and up), good health (74% of those under 35; 76% of those 35 and up), and a successful career (81% of those under 35; 67% of those 35 and up). For those aged 35 and up, living a stress-free life (67%) and spending quality time with family (67%) are also important.

Both age groups surveyed consider a lack of financial stability (57% of those under 35; 49% of those 35 and up) and the rising cost of living (57% of those under 35; 68% of those 35 and up) to be the biggest causes of stress in their life today. Half of those aged below 35 find the lack of work-life balance to be a main cause of stress, while respondents aged 35 and above are concerned about a lack of job security (48%).

Three quarters of respondents believe that they share the same values as their parents. This is especially true for those aged 35 and up. In fact, 42% of older respondents strongly agree that their values are the same as the previous generation, compared to 37% of those aged below 35.

Data for the Bayt.com ‘Millennials in the MENA’ poll was collected online from December 18 2013 – January 6 2014, with 7,173 respondents from the UAE, KSA, Kuwait, Qatar, Oman, Bahrain, Lebanon, Syria, Jordan, Algeria, Egypt, Morocco, and Tunisia.