Nearly seven out of 10 UAE employees say that the rising cost of living is outpacing their salaries — and many are considering leaving their jobs within the next three months, according to a new study, reports Khalij Times.
The study by Korn Ferry revealed that two out of three — 66 per cent — employees are faced with this dilemma. Those who feel their earnings aren’t matching the increasing costs, are significantly more likely to resign.
In response, they’re placing greater emphasis on the overall compensation package, such as salary and benefits, when evaluating job opportunities.
“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, benefits and pay have become the leading reason for leaving companies,” said Vijay Gandhi, regional director of Europe, Middle East, and Africa (EMEA) for Korn Ferry Digital.
The global consultancy firm said in its Workforce 2025 report that eight out of 10 employees in the UAE are willing to change their jobs for better pay and compensation, followed by job security and career advancement.
The survey added that employee benefits and learning opportunities are the other two key factors that would likely make employees leave their current jobs.
Korn Ferry’s 2024 UAE Salary survey of 843 companies showed an average salary increase of just 4 per cent, signalling that pay alone isn’t enough. Employees are also seeking benefits, job security, and growth.
The GCC Salary Guide 2025 released by Hays early this year said that nearly half — 48 per cent — of UAE employees received a salary hike in 2024 and 75 per cent expect their salaries to increase in 2025. The most commonly received increments were between 2.5 per cent to 5 per cent in 2024.
With expats projected to make up 88.5 per cent of the population by 2025, Korn Ferry said the UAE remains one of the world’s most diverse and competitive talent markets.
“While this growing expat community drives economic momentum — supported by a projected 5 per cent annual GDP growth — rising living costs, especially in housing and education, are pushing professionals to prioritise stability when considering their next move,” it said.
Korn Ferry surveyed more than 15,000 professionals worldwide to understand how they really feel about work today. The Workforce 2025 survey included participants from entry-level positions to CEOs across ten major markets — the US, UK, France, Germany, Brazil, UAE, Saudi Arabia, Australia, Japan, and India.
Bd-Pratidin English/ AM
