Over 90% of employees across the GCC region rank employee benefits as a key factor in their job satisfaction, yet a significant number feel their expectations are not being met, according to new research.

 

Employee benefits are thus becoming a decisive factor in attracting and retaining talent across the GCC, yet a deep divide persists between employer offerings and workforce expectations. 

 

This year’s Future of Work 2024 report, commissioned by Zurich International Life and conducted by Radius Insights, shows that only 38% of UAE employees feel their voices are heard when it comes to their employee benefits. Meanwhile, 68% of respondents are actively seeking to change jobs - a clear sign of the growing misalignment between what employees seek and what employers currently offer.

 

Employee-centric benefit programmes

The report, which surveyed 2,000 employees and 2,000 employers across industries in the UAE, KSA, Qatar and Bahrain, highlighted the growing demand for tailored, employee-centric benefit programmes. Over 60% of respondents said customised packages were essential, and an overwhelming 95% believe that the traditional, one-size-fits-all model was obsolete. According to financial analysts, this disconnect directly contributes to high turnover rates.

 

The report further reveals that 38% of employees aged 25 to 55 expressed a strong need for child allowances in Saudi Arabia, yet few companies currently offer this benefit. Similarly, 31% of UAE employees expressed a desire for workplace savings plans, which they see as key to their long-term financial security. In fact, 80% of employers in the UAE consider life and critical illness insurance crucial for their employees, aligning with the 85% of UAE employees who view these protections as essential benefits. 

 

This benefits gap isn’t just a matter of unmet expectations; it directly impacts employee morale and loyalty. Across the GCC, nearly 8 out of 10 employees are contemplating a job change, with many citing inadequate employee benefits as a leading reason. 

 

Ashika Tailor, Head of Business Development for Employee Benefits at Zurich Middle East, emphasised that the survey findings reveal a pressing need for organisations to listen to their workforce more closely. “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 noted. “Companies need to proactively engage with their teams to co-create benefits that ensure long-term satisfaction and loyalty.”

 

The customisation gap

Despite widespread agreement among employers about the importance of employee benefits—with nearly all employers in the UAE (96%) and Saudi Arabia (95%) acknowledging their critical role—a significant gap still looms. In the UAE, 6 out of 10 workers feel their needs are not being addressed, a sentiment that is echoed throughout the region. In fact, only 18% of employees in the UAE express a strong likelihood of staying with their current employer, underscoring the importance of immediate action.

 

The report also unveiled a fundamental shift in how employee benefits are perceived, indicating they have moved on from a 'nice-to-have' to a must-have for job satisfaction and retention. Over 60% of UAE employees desire more customised employee benefits, highlighting the need for bespoke flexible packages.

 

This, according to the survey, is particularly pronounced among women in the UAE, where 35% are focused on workplace savings plans, and Asian employees, who prioritise flexibility in compensation packages. While in Qatar, 22% of women seek enhanced maternity and paternity benefits—highlighting a demand that goes beyond the current legal requirements.

 

Among the most sought-after employee benefits in the UAE are child education allowances, workplace savings plans, and life and critical illness insurance. However, many respondents feel these needs still need to be met. 

 

Retaining workforce

Retaining younger employees is emerging as a significant challenge for many employers in the region. In the UAE alone, over half of those aged 18-24 indicated that they would leave their current job for better opportunities, including workplace savings and career development programmes, with nearly 30% feeling overlooked due to their lack of experience. 

 

Notably, 6 out of 10 employees in the UAE are unconcerned about AI threatening their job security and instead see new opportunities, embracing upskilling and the future of AI-driven roles. This highlights the importance of companies addressing immediate needs and future career aspirations to retain this critical talent pool.

 

"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,” noted Tailor.

 

Aligning values

For employers, a major takeaway from the report is the rising importance of values alignment, with more than half of UAE employees (58%) emphasising the need to work for companies that prioritise sustainability and Diversity, Equity, and Inclusion (DEI) initiatives. This focus is particularly strong among women in the UAE and KSA, where the emphasis on organisational contributions to these causes is stronger than ever.

 

Now in its fourth edition, the Future of Work 2024 report identifies companies that prioritise personalised employee benefits, career development, and values alignment will be better positioned to attract and retain top talent in the GCC.--TradeArabia News Service