Given the rising attrition rate, numerous businesses in the UAE are currently exploring the idea of providing extended employee benefits. The trend is predicted to create a prospective market opportunity worth around $100 billion exclusively in the UAE.
The benefits will include many offerings such as savings options, retirement funds, post-employment benefits and extended incentive programmes. Furthermore, the benefits will also help with the scarcity of skilled workforce within the nation.
As per industry reports, the companies in the Gulf Corporation Council (GCC) are facing higher employee turnover rate reaching up to 30 per cent annually. Moreover, roughly half of the employers in the GCC region view talent scarcity as a significant concern, in contrast to the global average of 40 per cent.
Therefore, specialists believe that implementing medium- to long-term financial and well-being strategies will help companies with employee retention. This will also improve the overall performance, resulting in substantial business growth potential.
As the UAE and Saudi Arabia compete for global talent, employees are increasingly expecting competitive compensation and benefits similar to those in their home countries. Therefore, offering such benefits can enhance employee retention and well-being, contributing to a competitive edge in the talent market. The study also shows that 70 per cent employees are willing to stay beyond three years if both short- and long-term financial needs are fulfilled.