22 October 2024, Tue |
10:53 PM
Employee benefits are increasingly becoming a decisive factor in attracting and retaining talent across the GCC, with a deep divide between what employers offer and what employees expect. According to recent research, over 90% of employees in the GCC rank employee benefits as a key element of job satisfaction, yet many feel their needs are unmet, fueling higher turnover rates.
The Future of Work 2024 report, commissioned by Zurich International Life and conducted by Radius Insights, highlights that only 38% of UAE employees feel their voices are heard regarding their benefits. A staggering 68% of employees are actively considering changing jobs, citing a growing mismatch between their expectations and employer offerings. The report, which surveyed 2,000 employees and 2,000 employers across the UAE, Saudi Arabia, Qatar, and Bahrain, underscores the increasing demand for tailored, employee-focused benefits. Over 60% of respondents stressed the importance of customising benefit packages, while 95% believe the traditional one-size-fits-all model is obsolete.
This misalignment is contributing to high turnover rates, with financial analysts pointing to the direct link between inadequate benefits and job dissatisfaction. For instance, 38% of employees aged 25 to 55 in Saudi Arabia express a strong need for child allowances, yet few companies currently offer this benefit. In the UAE, 31% of employees want workplace savings plans, which they view as crucial for long-term financial security. While 80% of UAE employers recognise the importance of life and critical illness insurance, 85% of employees consider these protections essential, signaling a clear gap in meeting employee expectations.
Inadequate benefits are not only affecting job satisfaction but also employee loyalty. Nearly 8 out of 10 employees across the GCC are considering changing jobs, with many pointing to insufficient employee benefits as a leading cause. Ashika Tailor, Head of Business Development for Employee Benefits at Zurich Middle East, noted that companies must adapt to the evolving expectations of their workforce. “Employees today are demanding more personalised, thoughtful packages that meet their individual needs,” she said. “To retain talent, organisations need to engage with their teams and co-create benefits that ensure long-term satisfaction and loyalty.”
Despite nearly all employers in the UAE (96%) and Saudi Arabia (95%) recognising the importance of employee benefits, a significant gap remains. In the UAE, 60% of workers feel their needs are not being addressed, and only 18% express a strong likelihood of staying with their current employer. This disconnect between employers and employees is becoming a key driver of job dissatisfaction, with employees calling for more customised, flexible benefits packages. Among the most sought-after benefits are child education allowances, workplace savings plans, and comprehensive life and critical illness insurance.
Retaining younger talent is also emerging as a critical challenge across the region. In the UAE, more than half of employees aged 18-24 are willing to leave their current job for better opportunities, particularly those that offer workplace savings and career development programmes. Additionally, 6 out of 10 UAE employees are optimistic about AI and see opportunities in AI-driven roles, placing a greater emphasis on upskilling and future-proofing their careers.
The Future of Work 2024 report also reveals that values alignment is playing a growing role in employee retention, with 58% of UAE employees prioritising companies that focus on sustainability and Diversity, Equity, and Inclusion (DEI) initiatives. This trend is especially pronounced among women in the UAE and KSA.
The report underscores the urgency for companies to prioritise personalised employee benefits, career development, and values alignment to attract and retain top talent in the GCC.
