Why 8 in 10 GCC employees are considering job changes

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UAE faces rising talent retention risks amid growing employee benefits gap

2024-10-26T14:13:00+05:00

Dubai: With a rapidly evolving job market and shifting employee priorities, organisations in the UAE and across the Gulf Cooperation Council (GCC) are facing a major challenge: retaining top talent.

An overwhelming eight out of ten GCC employees are considering leaving their current roles, with gaps in employee benefits cited as a leading factor.

Research highlights the pressing need for employers to re-evaluate their benefits strategies to meet modern workforce expectations.

Why employee benefits matter

Recent findings from the 2024 Future of Work report, commissioned by Zurich International Life and conducted by Radius Insights, reveal that over 90% of employees in the GCC see benefits as essential to job satisfaction. Yet, despite this consensus, a notable benefits gap exists, with many employees voicing dissatisfaction.


In the UAE, only 38 percent of employees feel heard on issues related to benefits, a misalignment driving 68 percent to actively seek new job opportunities.


What employees really want

A notable shift has emerged among employees seeking tailored benefits packages that reflect their unique needs. The report, which surveyed 2,000 employees and 2,000 employers across the UAE, Saudi Arabia, Bahrain, and Qatar, found that 60 percent of respondents consider personalised benefit packages crucial. Additionally, a staggering 95 percent view the traditional, “one-size-fits-all” model as outdated, underscoring the need for a more individualised approach.

Financial analysts have identified this benefits gap as a direct contributor to high turnover rates in the region, pointing to the need for more responsive, employee-centric benefits programmes. The demand is particularly strong among younger employees and women, who often prioritise benefits like child allowances, workplace savings plans, and parental leave.

Which benefits are in demand?

For UAE employees, the most sought-after benefits include workplace savings plans and critical illness insurance, with 31 percent considering workplace savings as essential to their long-term security. Additionally, 80 percent of UAE employers acknowledge the importance of life and critical illness insurance—a benefit that aligns with the priorities of 85 percent of employees in the country.

Across the GCC, benefits like child education allowances and flexible work options have become “must-haves” rather than mere perks. This trend is especially evident in Saudi Arabia, where 38 percent of employees aged 25 to 55 report a strong need for child allowances, though only a few companies currently offer this support.

How customisation drives retention

Despite high employer awareness of the issue—with 96% of UAE and 95% of Saudi employers recognising the importance of employee benefits—many companies are still missing the mark on customisation. In the UAE, for instance, 6 out of 10 employees feel their needs are unmet, reflecting a widespread sentiment across the region.

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Ashika Tailor, Head of Business Development for Employee Benefits at Zurich Middle East, underscores the necessity for employers to engage with their workforce directly. “The diversification of work and employee expectations means that traditional employee benefits packages are no longer fit for purpose. Employees today are demanding more personalised, thoughtful packages that meet their individual needs,” she said. “Companies need to proactively engage with their teams to co-create benefits that ensure long-term satisfaction and loyalty.”

Why young talent matters

Retaining younger employees, particularly those aged 18-24, has proven challenging for many GCC employers. In the UAE, over half of this age group are likely to consider job changes, motivated by the promise of better career development opportunities, workplace savings, and mentorship programmes. Interestingly, 60 percent of UAE employees in this demographic see the rise of artificial intelligence (AI) as an opportunity rather than a threat, showing strong interest in AI-driven upskilling.

“Young talent is quick to seek out opportunities that align with their financial and career growth aspirations. To retain this workforce, employers must not only bridge the current benefits gap but also adapt to emerging trends like AI-driven learning and targeted upskilling programmes,” Tailor added.

When values align, so does loyalty

A significant trend highlighted in the Future of Work report is the alignment of personal values with workplace culture. Over half of UAE employees (58%) stress the importance of working for organisations that champion sustainability and Diversity, Equity, and Inclusion (DEI) initiatives. This emphasis is particularly strong among women in the UAE and Saudi Arabia, where contributions to these causes have become paramount in the decision to stay with or leave a company.

What employers can learn

Now in its fourth edition, the Future of Work 2024 report outlines that companies prioritising employee benefits, career development, and shared values will be better positioned to retain top talent. This shift requires immediate action by employers who wish to stay competitive in the region’s rapidly changing job market.

As companies across the GCC confront an evolving talent landscape, adapting employee benefits to meet the expectations of a diverse, values-driven workforce will prove critical to their success in attracting and retaining talent.

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