Unlocking the Value: UAE Job Market Benefits Package

UAE job market benefits package

 Understanding Job Offers Beyond Salary: The Importance of Benefits in the UAE Job Market

In the dynamic landscape of the United Arab Emirates (UAE) job market, the allure of a new job offer extends far beyond just the salary figure. While a competitive salary remains a significant factor, prospective employees increasingly prioritize evaluating a company's benefits package before committing to a new role. According to a recent pan-Gulf study, over 60% of respondents emphasized the importance of a generous benefits package, reflecting a prevailing trend across the region.

The Hays' GCC Salary Guide for 2024 delves deeper into this phenomenon, revealing the specific benefits that hold the most sway among professionals. Topping the list are air ticket or travel allowances, cited by 43% of respondents, followed closely by child education allowances at 38%, and flexible working arrangements at 34%. These findings underscore the evolving expectations of employees, who seek not only financial remuneration but also perks that enhance their overall quality of life and work-life balance.

However, despite the perceived importance of benefits, there exists a notable dissonance between employer offerings and employee perceptions. While a mere 5% of employers claim not to provide any benefits, a significant 41% of professionals report not receiving any. This disconnect hints at potential gaps in communication or transparency between employers and employees regarding the benefits package, as noted by Oliver Kowalski, Managing Director at Hays Middle East.

Employers, cognizant of the significance of benefits in attracting and retaining talent, are increasingly aligning their offerings with employee preferences. Approximately 75% of employers acknowledge the pivotal role of the benefits package in talent acquisition and retention strategies. The top benefits offered by employers include air ticket or travel allowances (59%), life insurance (42%), and flexible working arrangements (35%). Moreover, some progressive employers are embracing changing work habits, with 27% offering hybrid or remote working options and 23% providing additional vacation days.

The shifting paradigms of work, accelerated by the COVID-19 pandemic, have led to a growing demand for flexibility among professionals. As Kowalski observes, the desire for increased flexibility in terms of both time and location is a prevalent trend across various industries. In response, 34% of professionals highlight flexible working as one of their most valued benefits, while 31% express a similar sentiment towards hybrid or remote working options.

Looking ahead to 2024, the outlook for hiring in the Gulf region appears optimistic, with 67% of employers expressing intentions to expand their organization's headcount. Notably, both Saudi Arabia and the UAE, the region's largest economies, share similar sentiments, with 69% of organizations in each country planning to increase their workforce. This positive outlook translates into a buoyant hiring environment across various employment arrangements, including permanent roles, temporary positions, contract work, and freelance opportunities.

However, amidst the abundance of job applicants, employers face a significant challenge in finding skilled professionals. While 41% of employers note an increase in the number of candidates applying for jobs, an equal proportion highlight a shortage of skilled professionals. This juxtaposition underscores the need for proactive measures to bridge the skills gap and meet evolving industry demands. Strategies such as upskilling and reskilling the existing workforce, strengthening employer branding, and increasing international recruitment efforts emerge as key initiatives to address recruitment challenges.

In conclusion, while salary remains a fundamental consideration in job offers, the evolving preferences of professionals in the UAE underscore the importance of a comprehensive benefits package. As employers strive to attract and retain top talent in a competitive market, the alignment of benefits with employee expectations emerges as a critical strategic imperative. By offering a compelling array of benefits, including travel allowances, educational support, and flexible working arrangements, employers can enhance their appeal and establish themselves as employers of choice in the vibrant UAE job market.