Beyond Salary: Strategies to Attract and Retain Top Talent In the UAE

Every company wants to secure the best talent to drive its operations and innovations forward, especially in today’s competitive business environment. In the UAE, this quest for top talent is even more pressing, as the country’s economic dynamism has created a flourishing job market, but it has also brought fierce competition for skilled professionals. A recent Zurich survey echoes this sentiment, with 52% of UAE-based HR managers highlighting the difficulty in finding talent as a major concern for organizations. This scarcity isn’t just a fleeting trend but a long-term issue for the nation’s progress.

In this article, we will explore the current talent landscape in the UAE, and examine the factors behind the lack of talent availability. Furthermore, we will provide actionable strategies that organizations can adopt to attract and retain top talent in the region.

What Is Employee Attraction and Retention?

Before discussing strategies to attract and retain top talent, it is important to define these terms. Employee attraction refers to the processes and practices that a company implements to draw in potential employees to apply for job openings. On the other hand, employee retention refers to the efforts taken by an organization to keep its current employees engaged, motivated, and committed. Both these aspects are crucial in building a strong workforce and achieving organizational goals.

Why Attracting and Retaining Top Talent Is Important?

You must be wondering why it’s so important to focus on attracting and retaining top talent. The most obvious reason is that employees are the most valuable asset of any organization. They are responsible for driving growth, delivering results, and shaping the company culture. When you lose an employee, you lose all of the skills, knowledge, and experience they bring to the table. This not only impacts the company’s performance but also incurs significant costs in terms of recruitment, training, and lost productivity.

But beyond these tangible costs, there are other important reasons why attracting and retaining top talent is crucial for organizations.

Improved Productivity and Efficiency

High-performing employees are 400 times more productive than average employees, according to a study by McKinsey & Company. And in highly complex and dynamic industries, such as technology or management, they can be even 800% more productive. 

Moreover, the top 1% of employees generate 10% of the total output of an organization, while the top 5% generate 26%. This clearly demonstrates the impact that high-performing employees can have on an organization’s productivity and efficiency. They spend less time correcting mistakes and struggling to figure out solutions, and more time driving innovation and propelling the company forward.

Competitive Advantage

By hiring top talent and retaining them deliver a sizable competitive advantage. They bring a wealth of experience, skills, and knowledge that can help organizations stay ahead of market trends, innovate faster, and deliver better products and services to customers. Top talent also tends to attract other high-performing individuals, creating a snowball effect that strengthens the organization’s competitive position.

Enhancing Company Reputation and Brand Image

Top talent is not just about skills and experience; they also improve a company’s reputation and reinforce its desired brand. When employees are happy, engaged, and fulfilled in their roles, they become brand ambassadors for the organization. They share positive experiences with others, both online and offline, which can help attract more customers, clients, and potential leads. In this way, the company becomes a top lead in its field based on the level of skills and service its employees provide.

Plus, retaining top talent is a virtuous cycle as prospective candidates look at who is working for a company as an indication of its desirability. When organizations retain top talent, it sends out a positive message that this is the place to work and thrive.

Driving Innovation and Creativity

Having talented employees voice their opinions, share new ideas, and think outside the box can lead to groundbreaking solutions. Often, these employees see beyond customers’ needs even more than the leaders. They deliver more of their creative insights, identify new market opportunities, and push for changes that would otherwise be overlooked.

Boosting Overall Employee Satisfaction

Hiring and retaining top talent also leads to increased employee satisfaction across the organization. When employees see that their colleagues are happy and fulfilled in their roles, it can improve company culture, reduce turnover rates, and boost overall morale. This creates a positive work environment where employees feel valued and motivated to perform at their best.

Research has shown that four factors influence employees’ satisfaction at work:

• Health and wellness
• Meaningful work
• A sense of trust and belonging
• Opportunity to build skills

Having these factors in place unlocks the full potential of employees, creating a win-win situation for both the individual and the organization.

Factors Contributing to the UAE’s Talent Shortage

Despite its thriving economy, below are factors contributing to the scarcity of UAE talent in the workforce:

Unexpected Salary Expectations

The 2022 Hays GCC Salary Guide shows that 21% of employers in the UAE struggle with candidates’ unrealistic salary demands. This mismatch between salary expectations and market realities often results in employers struggling to fill job openings or retain existing talent.

Limited Talent Pool

The UAE’s population is diverse and most employers address the shortage by outsourcing and freelancing. Tapping into expat talent through remote work has also posed challenges for companies struggling to find local candidates.  The skills shortage is further compounded by a lack of local talent with specific in-demand skill sets.

Inefficiencies in Hiring Timelines

The hiring process is a complicated, multi-layered one that could be more efficient. Thus, when organizations fail to effectively position themselves within the talent market translates into the loss of talented candidates to more established brands. Often, this also reduces the chances of securing top talent from other competitors.

7  Tips for Attracting and Retaining Top Talent in the UAE

To attract and retain top talent, organizations in the UAE must adopt innovative strategies that go beyond traditional salary offerings. Here are practical approaches to drawing in and keeping top talent:

1. Offering Competitive Compensation Packages

Compensation and benefits refer to the monetary and non-monetary rewards that employees receive in exchange for their work. Salaries, bonuses, health insurance, and retirement benefits are all examples of compensation and benefits. While candidates’ salary expectations can sometimes be unrealistic, employers can meticulously research industry salary trends, benefits packages, and other perks to make more competitive offers.  This isn’t just about meeting expectations but also about creating the best possible work environments that allow employees to thrive.

Besides conducting market research and benchmarking, here’s how you can attract top talent with compensation packages:

• Design and communicate the company’s compensation and benefits package in line with its brand
• Review and update package salary and benefits creatively by using various indicators and measures, such as employee satisfaction, performance, productivity, or profitability to assess its impact and outcomes.

2. Developing a Strong Employee Value Proposition (EVP)

A strong EVP is an employer’s answer to “Why should I work for your company?” It encapsulates what makes the organization stand out and why it is a great place to work. To develop a compelling EVP, employers must understand their company culture, what employees value, and why they choose to stay with the organization. This could include values such as work-life balance, opportunities for growth and development, a diverse and inclusive workplace culture, and a meaningful purpose or mission.

3. Increase Employee Engagement

Employee engagement is the emotional commitment the employee has to the organization and its goals. In fact, research shows that 92% of HR managers believe that engaged employees perform better than their less engaged counterparts. To boost engagement levels, employers must focus on creating a positive work culture that fosters creativity, collaboration, and purpose. Creating a positive work culture also makes employees feel valued, supported, and motivated to contribute their best work.

Here are some approaches to increase employee engagement:

• Encourage open communication and transparency between employees and management
• Providing opportunities for professional development and career growth
• Developing a positive company culture that values diversity and inclusion
• Setting clear and realistic goals and expectations
• Giving frequent and constructive feedback
• Setting a comprehensive employee recognition program that celebrates achievements and contributions

4. Prioritizing Employee Well-being

A good salary won’t necessarily keep a talented employee around if they are stressed, overwhelmed, or burnt out. Similarly, a chronic lack of appreciation in the workforce can result in high turnover rates, dissatisfaction, and poor performance. So employers should make it crystal clear with their workforce that they care, and demonstrate it with their actions. This could include:

• Flexible work arrangements
• Encouraging work-life balance
• Offering mental health support and resources
• Providing opportunities for physical wellness and exercise
• Promoting a healthy work environment by addressing workplace stress factors.

5. Embrace Diversity, Equity, and Inclusion (DEI)

People want to feel like they belong and are valued at their workplace for who they are. As such, if a company makes them feel psychologically safe from their first day to their last, they’re more likely to stay and will be quite reluctant to leave. But if employees feel like they’re being discriminated against, or that their voices are not heard and respected, they’ll leave in search of a more equitable workplace.

In other words, a sense of belonging is based on five pillars: being welcomed, known, included, supported, and connected. As an HR manager or employer, you can help foster these feelings by:

• Building a diverse and inclusive workplace culture
• Encouraging open dialogue and communication around diversity and biases
• Providing training to address unconscious bias in the hiring process
• Implementing DEI policies and practices throughout the organization

6. Develop a Top-tier Hiring Process

A streamlined and efficient hiring process sets the tone for a positive employee experience from the start. This includes clear job descriptions and expectations, timely communication with candidates, and a well-structured interview process that evaluates both technical skills and cultural fit. A lengthy hiring process can lead to frustration and disinterest from top talent who may have multiple offers on the table. But how can you make sure your hiring process is top-tier?

One of the most effective ways to simplify the process is by utilizing applicant tracking software like Bayzat, which can help automate and standardize the recruitment process, making it more efficient for both employers and candidates. Besides, this innovative approach facilitates communication, streamlines candidate evaluation, and provides valuable data for future hiring decisions.

7. Promote From Within

Everyone in a company wants to feel like there is a path for growth and advancement in their career. Thus, when you promote from within and provide job enrichment opportunities, it shows employees that there are real avenues for growth and development within the organization. It also helps employees see themselves as long-term invested in the company, increasing their engagement and loyalty. Additionally, promoting from within can save time and resources that would otherwise be spent on external hiring processes.

Here is what to do when promoting from within:

• Identify leadership qualities in your existing team members. If they possess the necessary skills, experience, and motivation to take on a leadership position, let them know you have faith in their abilities. Encourage them to pursue leadership or management opportunities within the company and provide them with the necessary support.
• Provide ongoing mentorship programs for all employees, regardless of their current position. For instance, you can pair up senior employees with junior ones to share knowledge and experience. This can be formal
• Encourage cross-training among different departments, allowing employees to gain a broader perspective of the company and its operations. This not only helps in succession planning but also promotes a more collaborative and interconnected workplace culture.

Optimize your Employee Attraction and Retention with Bayzat

While the above strategies can significantly support your efforts of winning and retaining top talent, having efficient software at your disposal can even further reinforce your efforts in the long run. Bayzat, a leading HR and payroll solutions provider in the UAE comes with comprehensive features that make it your ideal partner in this journey. Bayzat’s suite of integrated solutions can help you with:

• Recruitment: Bayzat’s Applicant Tracking System (ATS) not only helps HR managers attract top talent through targeted advertising and identify the right talent quickly, but it also comes with features that help personalize the recruitment process, providing a seamless candidate experience. In addition, you can leverage the innovative features of Bayzat’s ATS to make sure of a low turnover rate.
• Onboarding: Bayzat’s AI auto-screening feature makes it fully capable of automating the onboarding process with one-way video interviews, online document verification, automated background checks, and other processes that don’t require manual intervention. This not only saves time but also reduces human error.
• Talent Management: Gain valuable insights into your workforce with Bayzat’s talent management tools. Track employee performance, identify training needs, and foster a culture of continuous learning and development.

In short, by partnering with Bayzat, you can focus on attracting and retaining top talent while Bayzat takes care of the administrative burden. This allows you to create a positive and productive work environment that fosters employee engagement and drives long-term business success in the competitive UAE market.

Key Takeaway

The inefficiencies in traditional hiring timelines coupled with unrealistic salary expectations have led to unprecedented levels of turnover and resignation among employees, creating a fierce challenge for employers who need to cope with labor shortages, skill gaps, and increased competition for talent. To win this war, utilizing modern and innovative strategies to attract and retain top talent has become more important than ever for organizations.

Top talent attraction and retention are mutually reinforcing, and both can have a positive impact on organizational performance, such as higher productivity, increased profitability, customer satisfaction, and innovation. By implementing the strategies mentioned above and leveraging Bayzat’s comprehensive HR solutions, you can create a workplace culture that not only attracts top talent but also retains them for the long haul.