In today’s rapidly evolving world, the foundation of talent attraction and retention is beyond simple financial remuneration. Financial literacy and employee well-being matter, now more than ever, as we enter an era where employee loyalty hinges on ABC – alignment, benefits and culture.

The essence of the future of work is deeply rooted in its human element. There's a growing emphasis on empowering individuals through employee benefits initiatives, including workplace savings plans and financial awareness programmes.

Employers Survey sample size
1,000
 Employees
1,000
255
252
of employees stated they would change jobs for a new role with the same pay but better employee benefits package. 8 4%
employers say that retaining talent is the main factor pushing them to offer better employee benefits. 1 in 2
Workplace / Retirement savings is the top ranked employee benefit that employees expect to receive from their employer. # 1

Key insights shaping tomorrow's workforce

UAE's resilience amid global economic volatility

UAE's resilience amid global economic volatility

Over the past two years, the UAE government has launched a range of initiatives to solidify its standing as a preferred destination for global talent. Some of the notable reforms introduced include an investment-related end-of-service benefit scheme to private sector employees, unemployment insurance, adoption of a condensed working week, and new categories of leave.

Main challenges faced by employers

51%

Global economic situation

41%

Divergence in wages

46%

Unequal access to flexibility

40%

Talent retention

The other important factors revolved around the importance of having a diverse workforce, addressing the pay gaps in the market and a clear strategy in place to retain existing talent. There is a need to be as flexible as possible to attract and retain talent.

employers state that talent scarcity is a challenge 1/3

Top changes in employment market

73%

New Loss of Employment Insurance

60%

Abolition of unlimited contracts

59%

Condensed working week

The higher cost of living and reduced purchasing power has put the employees under pressure to make tough decisions – stay in their current role, or look elsewhere.

Navigating the talent shortage challenge

Navigating the talent shortage challenge

Currently, there exists a shortage of talent possessing essential skillsets required for key functions. In the UAE and KSA, talent deficits stand at approximately 24% and 30%, respectively.

68%

of employers have felt medium to very high impact of talent shortage

3 out of 4

employers in the UAE feel there will be an impact of talent shortage in the future

10%

Emiratisation target to be achieved in the private sector by 2025

14%

expected proportion of UAE nationals to be hired in 2023

Functions impacted by talent shortage

38% 32% 28% 26% 24% 24% Sales & Marketing Operations & Logistics Data Security/IT Data Science/MIS Manufacturing & Production Servicing (Eg: Customer Service)

Foreseen proportion of
locals vs. expats hiring
by employers

Locals Expats 24% 14% 76% 86%

Adapting employee benefits for changing needs

Adapting employee benefits for changing needs

In the UAE, employees prioritise the presence of a well-defined career advancement plan coupled with the option for hybrid work arrangements / flexible working hours.

Reasons why employees changed jobs

Better salary package

59%
55%

Better employee benefits

49%
48%

Professional development / Growth

49%
46%
9/10

Employers in the UAE have shown positive inclination towards enhancing their employee benefits packages in the next 6 months.

Gap between employer and employee in terms of employee benefits

Workplace / Retirement savings is the top ranked employee benefit that employees expect to receive from their employer. # 1 Currently received What employees would like to receive from employer U AE 15% 34% Financial wellbeing assistance 34% 17% Workplace / Retirement savings 24% 32% Life insurance Child education allowance 18% 32%

Challenges faced by UAE employers in employee benefits administration


41%

Helping employees understand benefits


41%

High cost of acquiring benefits


38%

Staying current in a changing regulatory environment

8 4% of employees in both the UAE and KSA stated they would change jobs for a new role with the same pay but better employee benefits package.

Talent's quest for new opportunities

Talent's quest for new opportunities

With the increasing opportunities available in the market, we see that there are a significant number that would consider changing roles. As many as 78% in KSA and 74% in the UAE are happy to change roles in the next 12-18 months.

81%

higher intention to change jobs among the younger employees in the age group 25-34 years.

Higher proportion of men

looking for a job change compared to women (80% vs. 70%).

50%
38%

Employees intend to continue in the same role but feel stuck.

There is a growing interest among employees in the UAE to potentially relocate to other GCC countries including Saudi Arabia, due to the opportunities linked to the Vision 2030 initiatives such as NEOM, Red Sea project, Qiddiya, etc.

1 in 4

employees in the UAE and KSA have changed jobs in the last year.

Employees are most likely to look for new opportunities within the UAE

82% 20% 20% 18% 13% 9% Within UAE Australia USA Western Europe Qatar Saudi Arabia 5% Kuwait 8% Asia / South-East Asia 6% Oman
49%

of western expats changed jobs in the last 12 months.

35%

Higher proportion of women have changed jobs compared to men in last 12 months.

81%

Higher proportion of employees working in small firms (with 11-50 employees) have changed jobs in the last 12 months.

Act today to secure tomorrow

Act today to secure tomorrow

It is imperative for employers to act today to continue to attract new talent as well as retain the existing talent.

Factors pushing employers to offer employee benefits

To retain key talent

54%
56%

Contractual requirement

47%
48%

Industry best practices

45%
47%

Benefits of prioritising employee wellbeing in people strategy

62%

Increased productivity

61%

Overall satisfaction

45%

Attraction / Retention

44%

People engagement

Employee wellbeing

is pivotal for an organisation's enduring success, as it directly contributes to its overall growth.

Current challenges faced by
UAE employees

Employees who feel their
employer supports them in
professional development to
acquire new skills

Yes No 38% 67% 62% 33%

How UAE employers establish
a positive workplace culture

57% 58% 59% Recognise and reward achievement and engagement Listening strategies Upskill employees to sustain a culture of learning in the workplace

Positive workplace culture finds more merit in 2023

1 in 2

employers in the UAE and KSA say that retaining talent is the main factor pushing them to offer better employee benefits.

Training and feeling valued

by the employer is important for employees to feel empowered within their workplace.

Balancing short and long-term benefits

The study reveals that employees today are increasingly motivated by factors other than competitive pay, with enhanced employee benefits emerging as a primary motivator to change jobs, as well as a key factor in establishing a long-term relationship between employers and employees.

It’s imperative for employers to prioritise and continuously evaluate their employee benefits offering.

Workplace savings, financial literacy, life insurance, child education allowance and critical illness cover should be the key focus areas for employers.

Evolving regulatory reforms, a diversified talent pool, and a growing emphasis on upskilling local talent underscore the need for flexible and tailored employee benefits packages.

To attract and retain talent, employers must make it a priority to put employee well-being front and centre, establishing themselves as an employer of choice.

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Acknowledgements

The overall findings of this study were supplemented by discussions with industry experts whose valuable comments have helped to add more depth to the findings. Their contributions are sincerely appreciated.