In the UAE, companies are offering long-term incentives (LTIs) to employees in order to retain the best talent amidst growing competition. These incentives include stock options, performance-based incentives, customised packages such as wellness programmes, flexible retirement, and education allowances. Recruiters have noted that LTIs are no longer limited to C-suite executives, with companies extending these incentives to other managerial staff as well.
LTIs are becoming increasingly popular in UAE firms, with a focus on allowances and bonuses rather than increasing basic salaries. These incentives are a combination of cash, equity, or stock options and can range between 1-5 years of annual fixed salary equivalence. A survey by Cooper Fitch found that 52% of CEOs have been awarded long-term incentives, indicating their prevalence in the market.
Companies are also offering LTIs such as flexible work options, work from abroad, and positive office cultures to retain talent, especially post Covid-19. Customised benefit packages tailored to individual employee needs, hybrid work arrangements, and flexibility incentives are being provided to enhance work-life balance. Popular LTIs include restricted stock units, stock options, and performance-based rewards tied to specific goals.
LTIs are no longer limited to C-suite executives and senior management, with companies extending these incentives to mid-level managers and key talent as well. By expanding LTIs to a broader range of employees, companies can foster a culture of ownership and long-term thinking, driving overall success and employee engagement. LTIs are effective in helping employers retain top talent, as they align employees’ interests with the company’s long-term success and encourage commitment and reduce turnover.
Technology start-ups in the UAE typically have more aggressive LTIPs and conservative fixed annual salaries. LTIs are critical in ensuring that leaders drive the development and successful implementation of strategies aligned with corporate objectives. LTIs can be more attractive than immediate salary increases, as they offer potential for substantial rewards and clear career development pathways. Companies that offer attractive LTIs gain a strategic advantage in attracting and retaining top talent, fostering loyalty, and driving long-term success in a competitive market like the UAE.
