Artificial Intelligence not a threat to jobs: Majority

Jamil Khan, Senior Reporter

Employee benefits are becoming a decisive factor in attracting and retaining talent across the GCC. 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 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.

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 Ashika Tailor, Head of Business Development for Employee Benefits at Zurich Middle East.

The report, which surveyed 2,000 employees 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.

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.

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.

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.