UAE: Why more employees stay at companies longer leading to low turnover rate globally

Employee turnover in the UAE is among the lowest and also lower than the global average, reflecting a solid retention rate of the UAE market.

Global employee turnover was at a median of 11.4 per cent compared to eight per cent in the UAE, according to global management consulting firm Korn Ferry.

“UAE is considered a solid retention market. The turnover in UAE at eight per cent is lower than the global average as employees tend to be in their roles longer and look for internal growth within the organisation,” said Vijay Gandhi, regional director for EMEA at Korn Ferry Digital.

The UAE is one of the most highly attractive markets globally for professionals and job-seekers due to zero income tax, safety and security, world-class quality educational system and quality of life — helping local firms retain talent for a longer period.

Employee turnover refers to workers who leave an organisation. This includes employees who leave their positions voluntarily and those who involuntarily leave through layoffs and reduction in workforce.

High turnover reflects more people leaving the company, which results in a company spending more time and money on finding and training new talent. Meanwhile, low turnover means more people tend to stay in their jobs for a long period.

More than 840 participants across 23 key sectors from the UAE took part in the survey.

Voluntary turnover

Similarly, voluntary turnover globally stood at 7.5 per cent against 5.6 per cent in the UAE. Voluntary turnover does not include those incumbents who were fired, transferred within the organisation, downsized, retired, and deceased.

Countries with the highest median employee turnover include Costa Rica (22 per cent), Australia (15 per cent) and New Zealand (15 per cent).

Countries with the lowest median employee turnover include Myanmar (three per cent), Portugal (five per cent), Italy (five per cent) and Croatia (five per cent).

High UAE turnover roles

Vijay Gandhi told Khaleej Times that the turnover is high in industries like retail, real estate, financial services, and technology start-ups in the UAE. From a roles perspective, it’s high in legal, customer service and project roles across the Emirates.

“We have seen a very high turnover among UAE nationals at the graduate entry level which is high at 20 per cent. It’s related to the job rotation and career growth they are looking for after two to three years in the organisation after joining,” he added.

To retain high-potential talent, Korn Ferry identified priorities for aligning reward strategies with employee engagement. “These include offering flexibility, prioritising wellbeing, and ensuring compensation reflects company values and purpose. Additionally, investing in career growth, fostering diversity and inclusion, maintaining competitive and transparent pay, and personalising benefits are critical,” added Gandhi.

Salaries in 2025

The Korn Ferry survey revealed that the median salary increase in the UAE was four per cent last year. While the median promotion salary increase was nine per cent, led by middle management/seasonal professionals at 10 per cent, supervisory/junior professional and clerical operations at nine per cent and senior management at 8.8 per cent.

Promotional increases are granted when an employee moves to a position with a higher salary grade and higher responsibilities.

The survey’s findings projected a four per cent median salary hike for 2025 as well, placing the nation among the top countries where salaries will see the highest increase this year along with Brazil (five per cent), China (five per cent) and Saudi Arabia (4.3 per cent).

ALSO READ:

• UAE: Will employees face legal trouble for refusing a job offer after accepting it via email?

• UAE jobs: Can employees be asked to serve 3-month notice period after resignation?

• UAE jobseekers demand 30% higher salaries amid rising living costs, talent shortages