Benefits Gap Impacting Retention Among GCC Employees

Research from Zurich International reveals a deep divide between the benefits that employers are offering and those that employees are seeking.

By Maggie Mancini

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

The report shows that only 38% of United Arab Emirates 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 growing misalignment between what employees seek and what employers offer.  

The report, which surveyed 2,000 employees and 2,000 employers across industries in the UAE, Saudi Arabia, Qatar, and Bahrain, highlights the growing demand for tailored, employee-centric benefit programmes. Over 60% of respondents say that customised packages are essential, and 95% believe that the traditional, one-size-fits-all model is obsolete.  

The report reveals that 38% of employees ages 25 to 55 express a strong need for child allowances in Saudi Arabia, yet few companies offer the benefit. Similarly, 31% of UAE employees express 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 85% of employees who view these protections as essential. This gap isn’t just a matter of unmet expectations; it directly impacts employee morale and loyalty. Across the GCC, nearly eight out of 10 employees are contemplating a job change, with many citing inadequate employee benefits as a leading reason.  

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, six 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.