As artificial intelligence continues to reshape industries and impact jobs in the UAE and GCC, a recent survey highlights that employees remain largely unconcerned about its impact on job security, with 60 per cent of employees seeing it as an opportunity rather than a threat. Despite this optimism, the report highlighted that employees are increasingly seeking more from their employers. With nearly 8 in 10 workers willing to switch jobs for better benefits, companies are urged to reimagine their benefits packages to stay competitive in an evolving job market.
The Future of Work 2024 report, commissioned by Zurich International Life and conducted by Radius Insights, revealed that 68 per cent of respondents actively seek a job change — a clear sign of the growing misalignment between what employees seek and what employers currently offer. 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 per cent of respondents said customised packages were essential, and an overwhelming 95 per cent 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 per cent 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 per cent of UAE employees expressed a desire for workplace savings plans, which they see as key to their long-term financial security. In fact, 80 per cent of employers in the UAE consider life and critical illness insurance crucial for their employees, aligning with the 85 per cent 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.
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 per cent) 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 per cent 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 per cent 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 per cent are focused on workplace savings plans, and Asian employees, who prioritise flexibility in compensation packages. While in Qatar, 22 per cent 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 per cent feeling overlooked due to their lack of experience.
“Young talent is quick to seek 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 programs," emphasised Ashika Tailor, Head of Business Development for Employee Benefits at Zurich Middle East, "With recent advancements in AI and automation, companies can enhance and tailor their employee benefits offerings. The data obtained from AI can also be used to create personalized wellness programs that fit the unique wellbeing needs of each employee.”
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 per cent) 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.
For more details on the research and its findings, find the full report here
