Attrition & Retention
How Are Workforce Priorities in UAE and Saudia Arabia Shifting?
80% of employees in the UAE and Saudi Arabia are willing to switch jobs for better pay. Discover what’s driving this shift in workforce priorities.
April 30, 2025
According to Korn Ferry’s latest workforce survey: In the UAE and Saudi Arabia, 80% of employees are now willing to change jobs for better pay, a 25% increase from last year. This shift highlights a major change in the workforce: higher pay is no longer just a motivator but a necessity for employee retention. Leaders need to adjust to this new reality or risk losing their top talent.
As Vijay Gandhi, Regional Director – Europe, Middle East and Africa (EMEA) for Korn Ferry Digital, puts it:
“Employees are facing increased costs of living, especially in housing and children’s education. However, salaries haven’t kept pace with these rising expenses, and as a result, pay has become the leading reason for leaving companies.”
For executives, addressing rising pay expectations is not just about meeting employee demands; it’s a strategic imperative to ensure long-term success and retention.
Never before in time prior to this have employers walked a tightrope when it comes to aligning evolving job roles and skills with pay practices. The workplace is changing rapidly due to technology, automation, and shifting employee expectations, so keeping compensation fair and competitive while adapting roles is a major challenge.
In the past year, living costs, particularly in housing and education, have surged across the region. Dubai, as the Middle East's global hub, has seen a 20.8% increase in annual rent prices, putting pressure on residents. Many feel that compensation in the region may not be keeping pace with the rising cost of living, leading to challenges for employees facing salary stagnation.
Beyond Pay: What Really Keeps Employees Engaged
While salary remains the top reason for job-switching, it’s not the only factor. “Organizations can reduce turnover by offering career growth, support, and a sense of belonging,” Gandhi explains. When employees feel valued and see a future with their employer, they’re less likely to leave, even for higher pay elsewhere.
To retain talent, businesses need to create a strong employee value proposition (EVP). This means offering:
- Career development opportunities
- Transparent pay structures
- Mentorship programs
Employees are more likely to stay when they understand the full value of their compensation and have a clear path forward within the organization.
Listening to Your Employees
To stay competitive, businesses must actively listen to their employees. “Employee perceptions of pay and benefits often don’t match reality,” Gandhi warns. Using surveys, focus groups, and direct feedback can help leaders understand employee concerns and adjust their strategies accordingly.
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What Leaders Must Do Now
To navigate the changing landscape, leaders need to adopt a strategic approach to talent management:
- Ensure competitive pay by benchmarking salaries against market rates.
- Offer career development and upskilling opportunities to retain talent.
- Personalize compensation packages to cater to a diverse workforce.
- Engage with employees through regular feedback and communication.
By focusing on fair pay, career growth, and employee engagement, executives can position their companies for success in a highly competitive job market.
Talk to a Korn Ferry expert today to make informed pay decisions using the world’s most comprehensive compensation and benefits data.
Key takeaways
- Why 80% of employees in the UAE and Saudi Arabia are ready to switch jobs for better pay.
- How rising living costs, particularly in housing and education, are putting pressure on employees.
- Why pay has become the top reason for job changes, signaling a shift from motivator to retention necessity.
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