Viral News Reviews

Viral News Reviews

Absence of Pension System in United Arab Emirates (Part 6)

Posted by Talha Ahmed in: Education

2.4.1. Staff Loyalty and Motivation

The trend of employee turnover in UAE is creating problems especially for smaller and mid level organizations. These organizations typically have to rely on individual skills of their employees for most of their work and therefore their working style is disturbed a great deal especially if a worker leaves that has a unique skill set in that organization as the company now lacks the workforce required to complete its projects and it has to quickly spend money in employee recruitment and development to ensure that the set of necessary skills is once again present in the organization. All companies work in a manner that requires some special skills that can only develop while working within the organization. The loss of skilled personnel therefore removes such skills from an organization and also severely limits the training mechanism found at a firm. Staff loyalty is therefore extremely important for smaller firms and it is a basic prerequisite for successful business operations (Keiningham et al., 2009). BTN Company is also a mid level organization with 40 employees and it is certainly affected a great deal if a particular employee leaves from an important work position. A new employee cannot have the similar skill set because some skills are developed while working within the organization. The BTN Company for example uses custom software for work related queries which require some time to become perfect at use and therefore time and resources of the organization are wasted each time the company has to recruit a new employee (Murphy, 2014).
Motivation is extremely necessary for successful business operations. Motivation in employment refers to the urge in employees to perform at the best of their abilities to ensure that their businesses become successful and productive. Employees are motivated due to a lot of reasons. Monetary benefits also play a key part in generating motivation but they are not the most important especially in the UAE where salaries are much better from the neighbouring countries of South and South East Asia (Emirates News, 2013). Motivation of employees in UAE chiefly depends on the number of growth opportunities that are available at a person’s current job environment. Most expats can get stuck in mid level management in UAE and therefore job evolution becomes the most important factor for producing motivation in expatriates of the country. Companies where employees are frequently promoted along with rise in salary enjoy from highly motivated employees but such companies are hard to find in the private sector of UAE and BTN is also such a company which suffers from low level of motivation in new staff members due to multiple reasons. The company on the other hand is also short on confidence especially on the new employees on which it is spending its training and development budget because employees often change jobs within a brief period of a year or two especially early in their career. Extra benefits such as retirement plans and pension systems help in generating the interest of employees in a company and give them a relief that that their future is secure regardless of the company they are presently working at. UAE lacks from a federal pension scheme and this is generating a loss of motivation in all private organizations such as the BTN Company. It is a company that offers various solutions and therefore its services entirely depend on a talented workforce. It gets difficult when employees switch jobs quickly as new staff has to be hired and trained and the overall efficiency of the company drops during the preparation of new workforce for a particular task.


Chapter 3: Research Methodology

The research will be based on the answers provided by the employees of BTN Company and different articles that discuss the problem of expat retention in UAE. Basic methods that are applicable here are designed to find answers to the problems imposed by the lack of federal pension system in the UAE. Let us prepare a survey to be used to find out about what people think about their current job and what are their expectations in the future regarding this job. Different methods can be used in the study of finding the effect of the lack of federal pension system in UAE. The major effect that can be seen through both qualitative and quantitative methods is that people like to quickly switch jobs in the country because they do not feel much associated with their relative companies due to a lack of long term attachment system.
Research methodology defines the important methods and ideas that are implemented when looking to perform a research over a known topic (Collis & Hussey, 2003). The research methodology is an important tool which describes the ideal methods for evaluating key solutions against research problems. The problem of lack of a federal pension is quite evident and clear in UAE. It is a perfect problem to apply research principles and find what can be done in order to study the problem and find appropriate solutions for it (Hair et al., 2007). There are two basic kinds of search methods that are used to do research in all kinds of fields. These two methods are simply qualitative and quantitative research methods. The different methods that are going to be used for finding critical data for analysis in this research are briefly explained below.

3.1. Quantitative Methods

This method attempts to take the opinion of people who are already working at BTN Company. An appropriate method is of surveys where the questions are clear and do not force the persons who fill out the surveys to take a side. A survey must be created in a way as to keep it free from prejudice. The survey must also be designed to provide real help and always provide answers to the different aspects of our research problem. Surveys provide quantitative information even if they do not contain a question regarding numbers (Saunders et al., 2009). This is due to the fact that they produce multiple data sets which can be analysed to find similar trends within the employees of the BTN organization. Questionnaires are also an effective method of surveying and can be used at multiple organizations to find employee data and relate its trends to the general problems found in UAE.

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