Rewarding employees a necessity in today's world
On the other hand, private sector employees often faced unpredictable challenges within their organisations, such as profitability concerns, biased evaluations and a lack of social security nets.
Under the leadership of His Majesty Sultan Haitham bin Tarik, a transformation has been occurring in the labour market, including the public sector, making them more attuned to the needs and challenges of the global economy.
The new performance-driven reform is pushing employees to think bigger and act bolder by emphasising accountability through self-appraisals and personal goals.
Employees are encouraged to explore beyond their roles, pursue innovative ideas and understand how their contributions impact the broader success of the country. While not perfect, this shift is an important step towards promoting meritocracy and healthy competition in the workplace.
The private sector is also adapting, with a recent decision confirming that annual increments for Omanis will be based on evaluations or performance reports rather than a flat salary hike across the board.
This ensures that the efforts of private sector employees are recognised, with raises directly tied to performance. Excellent evaluations will result in a five-per cent hike, followed by four per cent for very good evaluations, three per cent for good evaluations and two per cent for acceptable evaluations. Poor performance will not result in a raise, emphasising the importance of accountability and discipline.
This shift is significant as it focuses on making the job market competitive not only for the local economy but also at regional and global levels to attract more foreign investors.
Incentives are beneficial as they boost morale, increase productivity and enhance job satisfaction. By rewarding employees for achieving goals, companies motivate them to perform better, benefiting both the individual and the organisation.
Incentives do not always have to be financial; gestures like recognising employee achievements in meetings, providing resources for training and development, and offering flexible work options can also improve morale and work-life balance.
As the labour market evolves, it is important to adapt to new challenges and uncertainties, such as advancements in technology like Artificial Intelligence, to ensure continued success and growth.
Oman has undergone significant labour reforms under the leadership of His Majesty Sultan Haitham bin Tarik, primarily through the promulgation of the new Labour Law (Royal Decree No 53/2023) and the Social Protection Law (Royal Decree No 52/2023).
These legislative changes, unveiled in July 2023, aim to modernise the labour market, enhance worker protections, promote Omanisation and establish a more comprehensive social security framework, aligning with the broader objectives of Oman Vision 2040.
A significant focus of the reforms is on Omanisation, the national policy to prioritise Omani citizens in the workforce.
The new Labour Law stipulates that employment is a right for Omanis and restricts non-Omani employment to specific conditions. Employers are now required to submit annual plans for Omanisation and workforce replacement, detailing Omani worker numbers, salaries, gender and job vacancies.
Further reforms include the implementation of a Wage Protection System. This electronic system, developed with the Central Bank of Oman, ensures that private sector employers transfer workers' wages directly to their bank accounts within seven days of the due date, aiming to prevent delayed or non-payment.
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