Employee benefits gap poses risks to retaining talent as 8 out of 10 GCC employees consider job changes

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

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.

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.

Zurich Insurance Group (Zurich) is a leading multi-line insurer serving people and businesses in more than 200 countries and territories. Founded 150 years ago, Zurich is transforming insurance. In addition to providing insurance protection, Zurich is increasingly offering prevention services such as those that promote wellbeing and enhance climate resilience.

Reflecting its purpose to ‘create a brighter future together,’ Zurich aspires to be one of the most responsible and impactful businesses in the world. It is targeting net-zero emissions by 2050 and has the highest-possible ESG rating from MSCI. In 2020, Zurich launched the Zurich Forest project to support reforestation and biodiversity restoration in Brazil.

The Group has about 60,000 employees and is headquartered in Zurich, Switzerland. Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information is available at www.zurich.com. 

About Zurich International Life Limited

Zurich International Life Limited is a part of Zurich Insurance Group and was established in the Isle of Man, which is licensed by the Isle of Man Financial Services Authority with established and registered branches in the UAE licensed by the Central Bank of the UAE, Bahrain licensed by the Central Bank of Bahrain and the Qatar Financial Centre authorised by the Qatar Financial Centre Regulatory Authority. In the UAE, it is registered (Registration No. 63) under UAE Federal Law Number 6 of 2007, and its activities in the UAE are governed by such law. Further information about Zurich International Life is available at www.zurich.ae.

About Zurich Workplace Solutions

Zurich Workplace Solutions (Middle East) Limited (ZWS), part of the Zurich Insurance Group entities operating within the Middle East, is a DIFC-based company. As an administrator of the DIFC Employee Workplace Savings (DEWS) scheme, ZWS provides support to employers and employees through the administration and management of the DEWS plan. This includes enrolment of employers and employees, management of contributions, onboarding new joiners and supporting leavers, enablement of the investment process and administering withdrawals. ZWS also provides an online portal and member app wherein employers and employees have real-time access to plan information, as well as assistance and guidance through a DIFC-based support team and contact centre.