UAE Jobs: Shifting Work Trends See Employers Rethink Pay, Perks, Flexibility

(MENAFN- Khaleej Times)

Employers in the UAE are increasingly adopting a pay-for-performance model as the country's rising population broadens the talent pool, enabling organisations to select and retain the best candidates.

"This shift helps manage fixed costs while offering short- and long-term incentives to retain key and critical talent," said Andrew El Zein, Principal and Senior Manager of Compensation Consulting at Mercer told Khaleej Times.

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According to Worldometer, the UAE's population has grown significantly over the past four years, from 9.44 million at the end of 2020 to an estimated 11.34 million in 2024, representing an increase of approximately 1.9 million.

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Remote work due to traffic

With increasing traffic congestion due to population growth, employers are becoming more flexible with work arrangements.

"Employees are definitely appreciating the flexibility - both in terms of organisational culture and work-life balance," said El Zein.

During the pandemic, many companies in the UAE allowed employees to work remotely. However, as restrictions eased, there was a push to return to the office. Despite this, employee preferences have contributed to a resurgence in flexible models.

Mercer reports that the median salary increase in the UAE was 4 per cent in 2024, with a similar rise projected for 2025.

Personalised benefits

Another emerging trend is the customisation of employee benefits . El Zein noted that many organisations are beginning to offer tailored benefits packages that allow employees to choose what matters most to them.

"For example, a single employee might value a gym membership, while a parent may prefer childcare support," he said. "This flexibility is especially appealing in a multi-generational workforce where needs differ widely."

To address the challenges of traffic and diverse lifestyle needs, companies are increasingly adopting creative work-hour solutions .

El Zein cited an example of a UAE-based employer that adjusted working hours to accommodate mothers who needed to drop off and pick up their children from school. This approach resulted in a successful increase in Emirati female hires.

"It's not just about working from home – it's about rethinking schedules to fit people's lives," he said. "Flexibility in work hours is now recognised as a crucial tool in attracting and retaining local talent."

Skills for different positions

El Zein also highlighted a trend in skills mobility - where employees move across departments to develop their careers.

"Many organisations are bringing employees from operations into HR," he explained. "Although they may not be traditionally trained HR professionals, they have firsthand experience on the ground, which is incredibly valuable."

Career development, upskilling, and internal mobility are increasingly seen as key strategies for employee engagement and retention.

"This focus on growth gives employees a sense of being developed, which is a strong factor in attracting and keeping talent," El Zein added.

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