Working nine to thrive: The rising importance of benefits and wellbeing in the UAE

Earlier this month, Benifex held its very first in person event in the United Arab Emirates (UAE). HR, benefit and wellbeing leaders converged in the city to meet and discuss the best ways to support the growing demand for better workplace benefits and the increasing needs and expectations of employees in this area. Our hosts were Benifex customer, VFS Global.

The UAE is an area of the world that continues to go through huge transformation. No more is this felt than in the workplace. Taking its cues from countries like the US and the UK, there are an increasing number of workplace changes designed to better support the life of employees. But as well as following trends from other regions, the UAE is itself facing a crisis when it comes to employee wellbeing.

Poor wellbeing is driving employee withdrawal behaviours in the UAE

In 2025, two-thirds of employees in the Gulf Cooperation Council (GCC) are reporting poor wellbeing. Symptoms of depression, anxiety and distress are all currently much higher than the global average. As a result, the UAE currently loses 3.9 billion Dirhams each year due to mental health alone. Similarly to the US and most of Europe, the mental health crisis is hampering productivity. But worryingly for the UAE government, locally born employees report even higher rates of poor wellbeing than expatriate employees.

However, hiring is set to pick up speed in the UAE this year, with more than half of business leaders saying they expect to hire more due to business growth. Three in five UAE employers say they will increase their headcount in 2025. But more than half also say that finding the right candidates with the right skills remains a significant challenge. Worryingly though, the numbers of employees reporting they will look for a new job is at a record high; two thirds of UAE employees say they will move jobs this year. The right wellbeing support will play an important role in attracting the best people; 63% of global employees actively looking for a new job say it’s very important that their benefits will support their mental health and emotional wellbeing.

The reasons why turnover intention is so high are fairly complex, but the latest research points to five significant factors:

1. The cost-of-living crisis has hit the UAE. A third of employee’s report looking for a new job to be able to increase their salary.
2. There is growing levels of low morale and low feelings of care among UAE employees. Unlike other areas of the world, employees in the UAE tend to not see their employer as caring for them and their lives as much.
3. There is a huge disconnect between what employers think employees want, and what they actually want – almost two thirds (64%) of HR and reward professionals believe that their organisation is delivering an ‘excellent’ employee experience, however, only 20% of employees agree.
4. The strong job market in the UAE this year will give employees choices, and these increased options will likely tempt people to move jobs.
5. Well over a third of employees are now demanding better benefits from their workplace.

Employee benefits are not meeting employee expectations

Related to several of the reasons listed above are employee benefits. Benefits are becoming an essential tool for attraction, retention and wellbeing in the UAE. In fact, over 50% of employees in the region now view benefits as “essential”. Nearly nine out of 10 employees surveyed consider employee benefits as extremely important, often surpassing the importance of salary.

Employee benefits are becoming more popular in the UAE because employees are struggling with facets of their lives more than they did previously. Low wellbeing and low financial wellbeing are frequently listed in the research. But as well as the benefits themselves, how they are offered and the technology used to select benefits are also seeing an increase in demand; 78% of organisations are considering implementing an employee benefits platform. Less than 40% of UAE employees believe their employer listens to their benefit requests, and a significant 95% say that a “one size fits all” approach is no longer fit for purpose. Both of these signal the need for technology that helps to make benefits relevant, personalised and targeted. Indeed, 49% of HR and reward leaders believe that the key role of reward and benefits technology is to offer a consistent employee experience.

Among those UAE employers that do offer decent benefits packages, increasingly employees are reporting that they don’t meet their needs. For example, 57% of UAE employers think people value air tickets and allowances, yet less than 40% of employees say they do. Only 32% of employers offer child education allowances, yet these are among one of the most valued benefits.

Benifex customer success story: VFS Global

“The (Benifex) platform has made a huge difference… the app is fantastic…Benifex has changed my life.”
– Kathryn Martin, Regional HR Head – Middle East & North Africa, VFS Global

At this event, we heard from one of the most progressive employers (and a Benifex customer) in the area. VFS Global have been building a leading wellbeing strategy for the last few years. They have very high levels of employee engagement and a large number of “wellbeing influencers”.

This is a big UAE employer that is year on year increasing its female leadership, has committed to improving its diversity, and has invested a lot of time and energy in the wellbeing of its people.

We are very proud to be supporting the wellbeing of their 10,000 employees across 30 countries and it was great to hear just how well they have been doing with the support of Benifex.

You can read and watch their case study with us here.

What’s next for wellbeing in the UAE?

There is a $100 billion opportunity for reward, benefit and wellbeing providers in the UAE, as it continues to grow and evolve significantly. This year, 88% of UAE employers say they will increase their wellbeing and benefits investments. The fast-moving trend around wellbeing and benefits is perfectly illustrated by my invite to speak at the Forbes Middle East Wellness Summit in Dubai last year – the first of its kind looking at workplace wellbeing. Even the UAE government is beginning to see how the wellbeing of workers can create better outcomes for them at state and country level.

Dubai’s 2030 vision specifically calls out ways employers can contribute to securing the future of life in the UAE. The government wants a better commitment to a thriving and vibrant society. They also want employers to be more competitive and to offer better support to the people they employ. The UAE government understands that if it wants more global interest, it needs to make a bigger commitment to the wellbeing of its citizens. And just like most other governments, they see the workplace as playing a crucial role in achieving this.