Bruncha,
I waited for sufficient time to see whether we get to see responses here. Here goes my side of story to our sorrows:
Has your company had to significantly adjust either housing or salary packages to attract candidates?
In the financial year starting 2007 and forward, it is a reality that real estate / rental prices have increased substantially high in the capital, almost racing neck to neck or ahead of other cities. Accordingly, accommodation allowances had to be revised / re-adjusted for all categories more than one time.
Where are you finding housing?
Right now, it is case by case basis, wherever there is availability it is grabbed and made sure, when people exit (mostly we have many 2-3 year contact / rotational staff), those houses/flats/villas are retained for the new comers. Gradually, the search and reachability have extended all the way from the city to the newly developed mini townships on way on Airport Road, near Sheikh Zayed Mosque, Khalifa City or even extensions on Airport and Tariff Road.
Are you giving lump sum and expecting the candidate to figure out housing on their own?
It again depend on grade, category and several other factors and contracts. Senior staff / managers are given options of houses/villas already located/finalised whereas in middle management and local contract cases, lump sum payments are given. Some others are given options to find on their own.
Does your company provide any mechanism like interest free loan from the organization to meet the one year rent upfront obligation?
Not really. No loan facility. Based on grades/categories either options of selecting houses where the rent is paid upfront by the company.
Is all this effecting recruitment and retention rates?
Rental payments eats up a major share of the salary part currently. So, obviously it is a major attraction for employees when they search/opt for new employments. Therefore it is proving to be a major factor for the above two.
Are many of your employees leaving off the island and commuting far distances? ( ie, from dubai, or al ain or outlying areas).
Previously, what was far was Khalidiya, Buteen, Karama, and little ahead, now has become Mussaffah, and even far away upto Shahama, and mini townships on Tariff highway. Dubai is not at all an option for Abu Dhabi employees, but I have known cases of expats moving to Ras Al Khaimah and driving down daily. I also know many cases of locals who drive down from Ras Al Khaimah or other Emirates. If you notice the early traffic on the Abu Dhabi / Dubai highway you will realise the scenario more clearly. What was a supposed to be an isolated drive in the early morning hours at 6:00 am from Abu Dhabi to Dubai one year ago with one or two cars here and there has become a 4 line almost bumper to bumper drive back and forth to reach offices in Dubai and Abu Dhabi.
I hope I have been able to give you a bit of knowledge and experience in this regard and keep the discussion open for others to share their inputs.
The following articles will also give you a basis to work your own conclusions to what is in store for us:
Team 1 Dubai : Your e-Home for TQM & Positive Thinking: Abu Dhabi outpaces Dubai in housing costs and rentals
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In the second link above, experts have estimated Oil price increase in 2008 to $ 100 per barrel and see the realistic price which is running now which has de-railed all planning and estimate for belling the escalation of Cost of living to be in line with the affordable remuneration packages that can be offered to employees. It is a global problem and not restricted to Abu Dhabi/UAE alone.
Therefore it is really a matter of importance now and more in the coming time.
Regards,
Ramesh Menon