Zurich Insurance, a prominent insurer in the UAE and administrator of the DIFC Workplace Employees Savings scheme (DEWS), recently released the fourth edition of its annual Future of Work survey.
This year’s survey based on feedback from 2,000 employers and 2,000 employees across the UAE (50%), Saudi Arabia (25%), Qatar, and Bahrain reveals the critical gaps between the benefits offered by employers and those truly wanted by employees. It is interesting to note this disconnect, despite the strong consensus between employers (UAE: 96%) and employees (90%), that employee benefits are key to loyalty.
The study explains further that the issue is generally avoided by HR departments out of fear of unmet employee expectations and benefits packages are usually designed based on perceptions rather than actual employee preferences. This mismatch can lead to wasted resources, as companies invest in initiatives that do not resonate with their workforce.
The survey serves as a valuable resource for HR professionals to understand the evolving needs of their workforce. Below are the key themes that emerge from the study:
Key themes: Future of Work 2024
Today’s workforce spans multiple generations, each with distinct needs and preferences.
About two-thirds (63%) of UAE respondents believe that employers should offer personalized benefits rather than a one-size-fits-all approach. Employees are looking for choice and flexibility, both in terms of everyday working arrangements and compensation structures. Instead of a role- or grade-based compensation structure, employers should consider setting a benefits budget and offering customizable options within that budget to cater to individual preferences.
The generational diversity can lead to conflicting views often dispiriting younger employees.
40% of younger employees say their ideas not easily accepted, 29% believe they are sidelined due to lack of experience and over half (56%) would leave when the right opportunity arises. It is important for companies to ensure that all employees feel empowered and included in decision-making processes with their respective roles, allowing creativity and passion to flourish within the established structure.
Upskilling and reskilling must become a top priority for employers.
As AI becomes integral to workplace operations, it is crucial that employees are equipped with the right skills – and the confidence to use them.
Holistic well-being emerged as a non-negotiable focus area.
This includes physical, mental, emotional, social, and financial dimensions, all of which reflect the overall quality of life. Notably, about one-third (33%) of employees would like mental health support and 31% have expressed a need for financial security in the form of a retirement or workplace savings plan, both of which are currently not provided by their employers. Furthermore, while UAE nationals have access to an existing pension scheme, over half of them seek more guidance on financial planning (53%) and are interested in savings and investment opportunities (55%), underlining the need for financial literacy on an ongoing basis.
In summary, the survey encourages employers to support the ‘whole’ employee: understanding them at a personal level, tailoring benefits and investing in them to realise their full potential, and also becoming partners for every stage of life to build long lasting relationships. The survey is available for download below.
Our view
Personalization of employee benefits is a complex undertaking that requires careful consideration of various sensitivities. While it is certainly an important consideration for the future, it is also important for HR professionals to be guided by priorities.
As we know, the UAE is preparing for a significant change regarding End-of-Service Benefits (EOSB). The current system will transition to a workplace savings scheme that will soon become compulsory (see our previous article). For majority of companies in the UAE, this change presents a new challenge and a massive responsibility for HRs to prepare their organizations in terms of resources and infrastructure, educate employees about the scheme, sufficiently involve them in the decision-making process and also provide them with ongoing guidance.
Additionally, there are some companies that are already enrolled into voluntary workplace savings schemes such as Zurich’s International Pension Plan, National Bond’s Golden Pension Plan and Hayah’s Employee Secure Saver, amongst others. In these cases, HRs are tasked with transitioning to the official mainland scheme in the near future.
Given these developments, and noting that a considerable proportion of employees (31%) are looking for financial security, workplace savings scheme should take priority over most other forms of employee benefits. However, market feedback shows no urgency or incentive for employers to transition while the scheme is still optional and as such, the scheme has not yet gained traction on corporate agendas. CFOs tend to prioritize cash flow considerations over employee savings contributions, making it difficult for HR professionals to prepare their organizations and employees for this significant transition.
Nevertheless, HR professionals are the drivers of this change and must therefore take proactive steps to facilitate the process well in advance. A good starting point is to document a plan but what parameters should be considered? Our previous article features some useful tips on how HR professionals could start working towards this change.
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