2012 JOB SATISFACTION AND SALARY SURVEY OVERWORKED, UNDERPAID, UNDERVALUED?

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1 12 JOB SATISFACTION AND SALARY SURVEY OVERWORKED, UNDERPAID, UNDERVALUED? 18 Arabian Travel News October 12

2 The 12 Arabian Travel News Job Satisfaction and Salary Survey reveals issues of low job satisfaction, discrimination, poor pay and lack of training in the region s travel sector. Turn over to read the results in full. Arabian Travel News October 12 19

3 12 JOB SATISFACTION AND SALARY SURVEY O ur annual Arabian Travel News Job Satisfaction and Salary survey seeks to establish a true picture of what s going on in the region s travel sector workforce how do salaries compare, and what s the sentiment among workers in the field? To outsiders travel might be viewed as a glamorous industry to work in, but as we delve deep into the results of this year s survey on jobs and pay, a very different picture starts to emerge. Our travel agents told us that their stress levels are rising (84% of respondents told us that stress levels have increased over the past year); training and career development falls far short of what is required (60% said they did not feel adequately trained to do their job); and scratching below the surface, staff revealed some disturbing tales of workplace discrimination and a culture of abusive senior management that appears to prevail. SALARIES DON T MATCH EXPENDITURE Travel sector salaries are renowned for falling at the lower end of the spectrum, and this plays out in our results once again this year. The majority of respondents (33%) earn somewhere between $1,500 - $3,000 per month; and the next largest group (23%) earn even less at under $1,500 per month. Our respondents told us that they felt their wages to be too low 75% said that wages in the Middle East travel sector were inadequate, 69% felt their salaries were below average when compared to their global counterparts and 45% said they are willing to leave their current role for a higher salary. 84% Said stress levels have increased over the past year WHAT IS YOUR TYPICAL MONTHLY REMUNERATION (INCLUDING SALARY, ALLOWANCES, ACCOMMODATION VALUE, COMMISSIONS AND BONUSES)? Less than $1,500 $1,500 $3,000 $3,000 $4,500 $4,500 $6,000 $6,000 $7,500 $7,500 $10,500 $10,500 $13,500 $13,500 $15,000 $15,000 $30,000 $30, The most common gripe was that the standard salary level received by Travel Consultants was just too low to have a decent standard of living. Our respondents pointed out that wages in the sector were not rising in line with living costs, and to maintain a fruitful life taking into account accommodation, school fees, transportation etc my salary would need to be double. Survival is very difficult. Another commented: Expenses in the Middle East are ever increasing and the increment we are getting is not at all compensating for that increase. We are here to earn and save. If we keep our families here with us we are not saving anything. Here s a comment from an agent in Qatar; Getting QAR4900 basic monthly salary is not enough considering meals and family support back in Arabian Travel News October (%) GLOBALLY, YOU CONSIDER YOUR SALARY TO BE... Average (27%) Below average (69%) Above Average (4%)

4 75% Said wages in the Middle East travel sector were inadequate the Philippines. I don t enjoy life with the salary I m getting, (somewhat shattering the myth that the streets in the Gulf are paved with gold ) PAY RISES BACK IN PLAY? Despite doom and gloom surrounding salaries, this year s results did throw up a glimmer of hope. It appears that after years of companies tightening the purse strings, pay rises seem to be back on the agenda. Just over 60% of our respondents said they have received a pay rise in the last 12 months. Only 7.6% have waited over three years for a pay rise the moral of the story being that if you haven t had a salary increase for a while ask for one now! The pay rises are reflected in pay scales which happily have seen a slight bounce since the survey was conducted last year. For example, this year 19% fall into the $3,000 - $4,500 bracket compared to 14.5% last year. And 12.5% earn $4,500 - $6,000 compared to just 6.4% last year. Interestingly pay rises don t necessarily seem to tally with promotions. While salary increases are common, WHEN DID YOU LAST RECEIVE A PAY RISE? More than 3 years ago Between 2 years and 3 years ago Between 1 year and 2 years ago Less than 6 months ago Between 6 months and 1 year ago % HOW OFTEN DOES YOUR COMPANY INVEST IN STAFF TRAINING? Every month Every three months Every six months Annually My company does not invest in training for staff DO YOU THINK WAGES IN THE MIDDLE EAST TRAVEL SECTOR ARE ADEQUATE? % % 80 We asked our respondents to tell us one thing they would change about their jobs if they could. Here s what they told us Yes No The long working hours. If I leave on time I am seen as doing less work. I am expected to be on the Blackberry 24/7 which means I am often sorting out office issues even on Fridays. In short my work-life balance is a mess. The working culture. We are still living in the 80 s Standardise salaries to retain and attract experienced staff. The bottom line is money is an attractive package and will make employees more loyal. Arabian Travel News October 12 21

5 12 JOB SATISFACTION AND SALARY SURVEY career progression is not and for the majority (37%) it s been over three years since they received a promotion, indicating a level of stagnation in the job market. MANAGERS FACE THE FIRING LINE While it is of course easy to let rip on an anonymous survey the responses we received do lift a lid on some of the more unsavoury management practices in the travel sector, and it s a shame to say that the picture underneath is not an overly positive one. Respondents said they felt shortchanged as instead of bonuses and incentives going directly into their pockets, providing a much needed boost to their salaries. Many managers take the extras for themselves, leaving lower-level workers unrewarded, however hard they work. Senior management don t share the fruits with juniors; said one. The travel sector makes very good money especially in the Middle East. There are big salaries for managers I would change the working environment to be more flexible with colleagues and take them out for team-building and get-togethers, with open minded conversation which lacks in the UAE. WOULD YOU SAY YOUR STRESS LEVELS IN YOU JOB OVER THE PAST YEAR HAVE... Decreased (2%) Increased (84%) Stayed the same (14%) 22 Arabian Travel News October 12

6 and very low salaries for other staff. Other comments in a similar vein were: We want an opportunity to share the profit, and supplier/air line incentives, / Travel Agents can make a lot of money on the GDS, through airline contracts, and other deals; but the most of staff do not get to enjoy the benefit of this revenue. And: In short, 90% of the commissions and incentives from DMCs and airlines are shared amongst the management only. There is so much room for a travel executive to make extra income but only the managers benefit from our hard work. And financial incentives were not the only ones that seem to be lacking. Respondents said they wanted more encouragement and motivation too: Any career in customer service leads to high levels of emotional labour. The management should recognise this and support staff. More praise 36% Of respondents said they work hours per week on a job well done and more support would be appreciated. Overall it appears that performance incentives, performance reviews (18% of respondents said they had never had one; and around half said they received a review just once a year) and a more structured career path generally is badly lacking in this industry. I hope that management will set up a scheme whereby worker s salary and incentives are periodically assessed and increased relative to the earnings of the company, said one. A major perk of working in the travel industry should of course be HAS YOUR FIRM MADE REDUNDANCIES OVER THE PAST YEAR? Yes No % HOW WOULD YOU RATE YOUR JOB SATISFACTION? I hate it I am very satisfied with my job I m dissatisfied I would change the management because their approach towards employees is very upsetting. DO YOU RECEIVE A BONUS? Yes (52%) No (48%) I think it s okay the chance to travel, but many of our survey respondents complained that for them; opportunities to travel were in fact a rarity. I have worked for more than four years for my company, but participated in one educational tour, commented one. Compared to other hospitality industries, travel sector salaries are way below. The only attraction is the fact that you get to travel for free, but how many times does our company actually let us travel? So the tickets are of no use. It s no wonder the new generation does not want to join the travel industry, stated another % 60% Said they have received a pay rise in the last 12 months DISCRIMINATION IN THE WORKPLACE? A common theme running through our survey responses was the issue of discrimination in the workplace. Comment after comment centered around the fact that far too often in the travel sector pay scales hinge on nationality, not performance (a sad Credit for all the hard work thrown in. And a more professional management which rewards staff productivity over loyalty. Arabian Travel News October 12 23

7 12 JOB SATISFACTION AND SALARY SURVEY fact of life in the Gulf in general perhaps, not just the travel sector). The majority of our respondents at 57% said they originally hail from the Indian Subcontinent, and the rest were a mix of Europeans, Arabs and Far East Asians. One respondent said the workplace was suffering due to the lack of equality to all based on qualification and work and not based on race or nationality. And another commented: Its high time UAE job adverts become free of race background and did not include words like Arab Origin / Western Educated or UK / USA or SA National preferred, surely a sentiment we can all agree with? 80% See opportunities for career progression in the travel sector WHERE TO LOOK FOR CAREER DEVELOPMENT? How do our respondents assess their future in the travel industry? While many did confess to feeling stagnant in their current role, it was heartening to note that respondents appear confident about the potential to progress within the sector generally. Happily, 80% of respondents said they agreed that there were opportunities for career advancement in the travel sector (with 30% strongly agreeing). So where do our travel agents want to work? Asked to pinpoint which companies in the travel sector they felt had a good reputation and would like to work for national airlines came out very positively with the perception of having the best salaries and perks. Emirates was thought to have a solid infrastructure, developed HR TYPICALLY, WHAT PERCENTAGE DO ALLOWANCES, BONUSES AND COMMISSIONS MAKE UP OF YOUR MONTHLY REMUNERATION? None 0-5% 5% - 10% 10% - % % - 30% 30% - 40% More than 40% WHAT WOULD BE THE DRIVING FACTOR IN PERSUADING YOU TO LEAVE YOUR CURRENT JOB? (%) A higher salary A promotion regulations, processes and procedures., plus the best travel perks. Etihad was pegged as a new company with forward thinking ideas, employing the best people in the industry at the best salary levels and packages. Meanwhile, many respondents said the path to greater riches in the travel sector lay in switching sides Staff should be treated as one without discrimination between nationalities Arabian Travel News October 12 A bigger/more I would not leave established company my current job and moving into a corporate firm as a travel booker. FUNDAMENTAL CHANGES The issues surrounding poor pay, the lack of training and the lack of career development opportunities throws into sharp focus some fundamental flaws in the way the travel sector operates in this region. One of our survey respondents pinpointed the major difficulty as being the current financial relationship in the Middle East the travel agent has with corporates, which has Better training opportunities 45% Would leave their current job for a pay rise left travel agencies floundering with no money to invest back into their companies or their staff. A need for greater unity overall was called for in order to make fundamental changes: That we stop acting like banks when it comes to dealing with customers and suppliers alike. That we

8 I ENJOY WORKING AS A TRAVEL AGENT: Travel Agencies should define job profiles with responsibilities and salary packages at time of employment. A regular annual review needs to be done on performance, with improvements to be implemented, training if required and motivate staff by sending them on seminars, conferences and meetings % Strongly agree Agree Disagree Strongly disagree THE THING I DISLIKE MOST ABOUT MY JOB IS: Unfortunately it seems lower level staff are often the ones to bear the brunt of this financial pain. One respondent even called for the introduction of an emergency fund to be set up collectively for all travel staff which could step in to help out in any desperate financial situations incurred from short collections, debit notes and money to paid back on end of service. It only begs the question who on earth would want to work in an industry where you run the risk of getting into piles of debt just for doing your job? My salary My working hours Other (please specify) My manager 12 SALARY & JOB SATISFACTION SURVEY: WHO TOOK PART? The 12 Arabian Travel News Salary and Job Satisfaction Survey was open to members of the travel trade across the Middle East region. 101 people took part in the survey, with a mix of respondents across all levels of the industry. The breakdown was as follows: Female The company I work for The clients Agency owner: 1 Executive: 14 Senior Management: 14 Mid-management: 33 Supervisor: 18 Front-line staff: 21 Male All other responses charge our customers service charges for consultation and charge our suppliers airlines and hoteliers for marketing and selling their products. This will require a united effort from the travel industry. But knowing the current coterie of managers, unity looks a distant dream. Another commented: Travel and arranging travel in the Middle East has changed dramatically in the past % few years. The work is harder and more challenging, and it is also much harder to get revenue in order to pay staff good salaries to keep up the professionalism. Something needs to be changed with regards to the financial relationship between corporates and the Travel Agent in terms of payments. Where in the world does a Travel Agent act as a bank as they do in the Middle East? In terms of nationality the majority hail from the Indian subcontinent with 58 responses or 57.4%. The second largest group came from Western Europe (8); while the rest were from the UAE (6) the Far East (3); Bahrain (1); Egypt (3); Jordan (1); Kuwait (1); Lebanon (1); Qatar (5); Saudi Arabia (3), Yemen (1); Mediterranean Europe (1); Russia (1). Eight respondents selected other. The majority of respondents at 60.4% or 61 work in the UAE. Others that took part work in Qatar (27); Bahrain (2); Kuwait (1); Lebanon (1); Saudi Arabia (6), Syria (1), Yemen (1) and Sudan (1). In terms of sex our survey revealed the travel sector in the Middle East to be a rather male-dominated industry, with 74% of respondents being male. Age wise, the biggest group, with 40 respondents fell into the age bracket; followed by 29 aged 21-30, 24 aged and eight in the 50+ age bracket. Arabian Travel News October 12 25

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