UAE employment trends: Companies will soon hire for specific skills, not job roles

The National

28-01-2025

Companies in the Middle East, particularly the UAE and Saudi Arabia, will soon prioritise hiring people for specific skills rather than focusing solely on job roles, reflecting a growing trend towards a more skills-based approach to recruitment, industry experts predict. Employers traditionally pick talent based on qualifications, years and type of experience; they are still considering these criteria but also starting to look at what skills are needed for their organisation's future, says Renee McGowan, chief executive for India, Middle East and Africa at professional services firm Marsh McLennan. 'They might be specific skills in artificial intelligence, technology, people management or different types of analysis," she says. "These skills will be moved around different roles and will carry a premium. 'Organisations in the Middle East will probably be far quicker to identify the skills required, then we will probably have a period of skills mismatch. Companies will then think about recruiting for skills rather than specific jobs.' Many public sector organisations in the UAE and Saudi Arabia are taking stock of their current workforce, scenario mapping and building on it for the future. They are assessing the talent for skill gaps, identifying a need for upskilling or reskilling, and implementing multiyear programmes for it. That is paving the way for the private sector, Ms McGowan explains. The rapid growth in generative AI capabilities has raised hopes for workforce productivity gains but also raised concerns. Nearly 60 per cent of 12,000 C-level executives polled by Mercer for its Global Talent Trends report last year believe technology is advancing faster than their companies can retrain workers. Three quarters of executives are concerned about their talent's ability to pivot, Mercer found. An influx of talent and more competition has created a surplus in the UAE. 'There's a lot of talent coming into the market. While at face value, that sounds good from an employer's perspective, the challenge that it creates is how do you select the right talent?' asks Ms McGowan. 'There's a lot of effort required by employers to select the best talent that's going to give them the competitive edge in a competitive market.' Zahra Clark, head of the Middle East and North Africa region for Tiger Recruitment, says the job market in the UAE and the wider Gulf is mixed, depending on role and level. In some sectors, there are candidate shortages, making it challenging for employers to find suitable talent, she says. 'Private personal assistant roles, for instance, are particularly tricky due to fewer of them being available in the region and great candidates often staying with their current employers. While there is a significant number of candidates moving across roles, many lack the right skill set, creating a struggle for employers to find the ideal fit,' she adds. Waleed Anwar, managing director of Dubai-based recruitment company Upfront HR, says UAE employers need to offer solid perks and packages to attract the best people. 'We're going to see a big demand for tech-savvy candidates, especially in AI and data science. Plus, Emiratisation will keep gaining momentum in the UAE,' he says. "There is also steady growth for jobs in renewable energy and sustainability." Saudi Vision 2030 has increased job opportunities in tourism, entertainment and tech, but Saudisation still remains the main focus for all businesses in the kingdom, he adds. A lot of employees are looking for a full benefits package and a one-size-fits-all benefits trend won't work, according to Ms McGowan. Although there's still a heavy weighting towards compensation in the Middle East, there is increasing demand for flexibility in the way that employment packages are structured, she says. 'The employee value proposition has to be considered in its totality. Focusing on salaries or titles alone isn't working the way it did in the past,' she explains. 'Compensation and benefits need to be on par with the market, but employers must also consider family health insurance, offer benefits that promote physical well-being and the flexibility to promote work-life balance. The right mix of incentives and rewards for performance is also important.' Also, rather than relying on lump-sum gratuity payouts, employees want access to longer-term savings vehicles, she adds. Employees are asking for more than merely a pay cheque, they want career growth, wellness benefits, flexibility and a better work-life balance, Mr Anwar says. 'Things like quieter spaces for breaks or on-site wellness facilities, gym memberships, flexible working hours, childcare hours (time off for school drop-off and pick-up for kids, for example), free workplace healthcare check-in collaboration with local clinics, etc. This benefit can be tailored towards your employees and fluid to change as per their needs,' he recommends. Echoing him, Ms Clark says that in 2025, employees are increasingly expecting perks that enhance their financial and personal well-being. These include schooling allowances, a rise in cash-based flight allowances (often replacing traditional return tickets home), better health and medical insurance, and yearly bonuses. 'There's also a trend towards offering flexible benefits, such as monthly cash perks integrated into salaries, giving employees more control over how they utilise their allowances,' she adds. Mr Anwar praises companies that are stepping up with mental health support, wellness programmes and more flexibility to keep their teams happy and productive. Ms McGowan finds that members of the Gulf's younger workforce also seek purpose in their work and a vibrant office environment. The majority of employees say they're more productive in a flexible environment and the flexibility they're looking for takes many forms, she says. 'It's no longer about the number of days in the office. It might be the hours spent in office, when do they need to spend time in groups, or by themselves doing deep work, and where they do that most productively. All these things are important for knowledge economies like the UAE,' Ms McGowan adds. Ms Clark believes the preferences for hybrid and remote working are evenly split among employers. Industries such as management consultancy, private equity, the Big Four and some family offices are adopting these models. The UAE government supports flexible hours and working models, primarily to address traffic congestion. However, adoption varies, with some businesses more open to these arrangements than others, she points out. Mr Anwar cites how hybrid working is popular in sectors such as tech and consulting, while traditional industries and many government-linked entities still prefer office-based roles. 'Employers that find a middle ground – like flexible office hours – will likely stand out in the talent market,' he says. Similarly, John Armstrong, founder and managing director of JCA Associates, suggests employers focus on their employees' results rather than the hours worked. Overall, more people appear to be returning to the office but many employers are opting for lower-cost flexi-working solutions rather than large, expensive corporate headquarters, he says.