In today’s competitive UAE job market, many companies believe that increasing financial incentives is the best way to attract and retain top talent. However, this approach is not always sustainable, especially with rising business costs and inflation. Instead, offering a diverse range of employee benefits can be a more cost-effective and impactful way to enhance job satisfaction, improve retention, and create a positive workplace culture.
A Shift in Employee Expectations
Attracting and retaining top talent in the UAE is becoming more challenging. With 58% of UAE professionals (Hays 2024 Salary Guide) considering changing jobs in the next 12 months, driven by the need for better financial security, improved work-life balance, and career growth opportunities.
Traditionally, employee benefits in the UAE have been limited to mandatory healthcare, annual leave, end-of-service gratuity, and home-country flights. However, expectations are changing rapidly, 75% of UAE employees (Cigna 2024 Well-being Report) now expect expanded well-being initiatives, flexible work arrangements, and financial security programs as part of their benefits package.
To stay competitive, UAE businesses need to rethink their approach to employee benefits, going beyond the basics to create a holistic, digital, people-first strategy that enhances overall well-being.
Building the Right Benefits Package for UAE Employees
A well-designed benefits program should actively support four key areas: physical health, mental well-being, financial security, and work-life balance. To create a healthier, more engaged workforce, companies in the UAE can expand their benefits beyond mandatory private healthcare, addressing employees' broader needs with targeted initiatives.
1. Physical Health Benefits
Provide corporate gym memberships or fitness partnerships – Offer subsidized or fully covered gym memberships, fitness app subscriptions, or partnerships with wellness providers, aligning with the 69% of UAE employees who consider wellness initiatives a key workplace benefit (Bayt.com 2024 Middle East Job Market Report).
Implement preventive healthcare screenings and wellness check-ups – Arrange on-site or covered health screenings and check-ups to encourage employees to take a proactive approach to their health.
Enhance women’s health support – Expand maternity benefits and fertility treatments, including IVF coverage, to meet the growing demand for comprehensive reproductive healthcare.
Strengthen mental health coverage – Partner with insurance providers that include therapy and counselling in corporate plans, ensuring employees have easy access to professional support while reducing stigma around mental well-being.
2. Mental Health & Work-Life Balance
A supportive work environment that prioritises mental health and work-life balance can enhance productivity, strengthen company culture, and boost employee loyalty. Recognising the growing importance of mental well-being in job satisfaction and retention, UAE companies are introducing initiatives that reduce workplace stress and promote a healthier work culture.
What businesses can offer:
Implement Employee Assistance Programs (EAPs) – Provide confidential counselling services to support employees' mental well-being and address personal or work-related challenges.
Offer hybrid work models – Align with UAE government initiatives by incorporating flexible work arrangements, such as remote or hybrid options, to enhance work-life balance and employee satisfaction.
Conduct mindfulness and stress management workshops – Organize regular sessions to equip employees with techniques to manage stress, improve focus, and boost overall well-being.
Mental health first aid champions – provide training to accessible staff to recognise and provide support to those experiencing mental health challenges
3. Financial Benefits & Long-Term Security
With rising living costs in the UAE, financial security is a growing concern for employees. Companies can strengthen retention and job satisfaction by offering well-structured financial benefits that provide both immediate support and long-term stability.
Introduce voluntary pension and savings plans – Implement employer-matched savings programs or pension schemes, addressing the needs of the 74% of UAE employees who consider them essential (HSBC UAE Workforce Survey, 2024).
Launch financial wellness programs – Offer expert-led workshops, digital tools, or one-on-one financial coaching to help employees with budgeting, saving, and long-term financial planning.
Provide salary advance options or low-interest employee loans – Establish accessible financial assistance programs to help employees manage unexpected expenses and short-term financial challenges.
Benefits Aren’t Just for Large Corporations
Some companies may assume that only large multinational organisations can offer competitive benefits, but this is not the case. Growing mid-sized businesses in the UAE can provide meaningful, cost-effective incentives that improve employee satisfaction.
Affordable yet impactful benefits include:
Subsidised gym memberships or wellness reimbursements.
Remote work options to promote work-life balance.
Flexible leave policies that accommodate personal and family needs.
With 73% of UAE employees saying they would prefer strong benefits over a higher salary (Cigna 2024 Well-being Report), businesses of all sizes should rethink how they structure employee compensation.
Investing in Your People Today for a Stronger Tomorrow
In the UAE’s evolving job market, retaining top talent requires more than just financial incentives. A well-rounded benefits package that prioritises physical health, mental well-being, financial security, and work-life balance can significantly enhance employee satisfaction and loyalty.
Tomorrow starts today. Let’s build a stronger, more resilient workforce together
