‘Well-settled’ UAE employees demand personalised and long-term work benefits

The shift in the UAE’s workforce to being more long-term, settled and multigenerational is leading to a change in employees’ expectations around workplace flexibility, personalisation and long-term support, a report from professional services firm Marsh and global consultancy Mercer has found.

The workforce now consists of four generations in one organisation, especially in academia, Adel Alderi, senior consultant at Mercer Marsh Benefits, told The National. "You have Gen Z coming in, millennials and Gen X, and you still have some baby boomers, especially in executive positions," he said.

"The multigenerational demographic change has led to the emergence of two major trends. On one hand, there is growing demand for flexible benefits that take into consideration the individual needs of these different demographics. On the other, you have a growing need for long-term care."

Half of employees in the Emirates said that flexible schedules – such as compressed workweeks – would be helpful, although only 33 per cent currently receive them. The same proportion (49 per cent) consider flexible retirement options as important, but only 26 per cent said these are available through their current employer, according to Mercer Marsh Benefits’ 2025 Health on Demand report. The study polled more than 18,000 employees across 17 markets, including the UAE.

There is also strong interest in “proactive, preventive and tiered benefit options”, the report found. Around 81 per cent of UAE employees would be happy if their employer helped them plan for long-term health and care needs. Another 80 per cent would welcome financial incentives for engaging in preventive care, while 76 per cent would appreciate the ability to pay more for enhanced or additional coverage, the findings showed.

While the younger generation prefers flexibility around working hours and working from home, the older generation wishes to have flexible pension plans, Mr Alderi said. They also want additional medical benefits, such as dental, optical, telemedicine, alternative medicine or mental well-being support, he added.

Many employees also said their current cancer-screening benefits are not enough and want their employers to be involved in covering travel expenses related to treatment abroad, the survey found.

"The more you understand your employees' demographic mix and the more you condition your employee value proposition to what they want, the more successful you become in retaining and attracting talent," Mr Alderi said.

Most companies in the UAE paused hiring in the first quarter of 2025, choosing instead to operate with existing staff, recruitment company Cooper Fitch said in a report last month.

The country recorded a 1.25 per cent increase in hiring activity in the January-March period, compared to the previous three months, with employers prioritising efficiency over headcount growth. This indicates a maturing market shifting from volume hiring to strategic recruitment, the consultancy said.

With the introduction of corporate tax, surging commercial rents, service fees and salary increases driven by the cost of living, the era of double-digit profitability for businesses, particularly in certain sectors, is reducing. To remain profitable and expand, organisations are looking at who they want to retain, according to Cooper Fitch.

Employees in the Emirates are also increasingly focused on financial well-being, with more than half (53 per cent) expressing concern about their ability to retire comfortably, while another 52 per cent were worried about affording a home, the Marsh-Mercer survey found.

Almost two thirds (or 62 per cent) of UAE employees said they can personalise their benefits package, however falling short of the global average of 78 per cent, the report identified.

Nearly half (48 per cent) of UAE employees also report feeling stressed most days at work – above the global average of 45 per cent. At the same time, 58 per cent said they are “actively looking for a new job”, reinforcing the link between mental health pressures and retention risks, the report warned.

A report by Zurich International Life Middle East on Monday also found an increase in younger employees in the UAE seeking benefits, such as income protection, disability and critical illness cover, that offer financial support while the policyholder is still alive.

Even small businesses are introducing group life insurance, living benefits and income protection to their employee benefits, Zurich’s Corporate Customer Report 2025 said.

More employees in their 30s and 40s are now seeking financial protection. The average age of income-protection claimants has dropped from 51 to 41, the report found.

A separate study by consulting firm Korn Ferry on Tuesday found that the rising cost of living in the Emirates is placing pressure on employee expectations. Many workers feel their compensation has not kept pace with rising expenses, particularly in housing and education, a survey of more than 15,000 professionals across 10 global markets revealed.

Pay, benefits and growth remain key motivators for change. Eighty per cent of employees in the UAE said they would consider switching jobs for better pay, the poll found.

A separate report from recruitment consultancy Michael Page on Wednesday showed that despite economic uncertainty, 77 per cent of UAE professionals are "actively exploring" new job opportunities, compared to 65 per cent in 2024.

Salary negotiations have also reduced, with only 49 per cent attempting to secure a raise from 61 per cent last year. This is a clear sign that workers are "opting to leave rather than engage in difficult conversations", according to its Talent Trends 2025 report, which polled over 50,000 professionals globally.

The "growing pressure to return to the office could be a tipping point". While only 34 per cent currently work hybrid, 53 per cent of employees said they would consider quitting if asked to increase their in-office presence, the Michael Page report said.