In the competitive market of the UAE, companies are increasingly offering long-term incentives (LTIs) to their employees in order to retain top talent. These incentives include stock options, performance-based rewards, and customised benefit packages such as personalised wellness programmes and flexible retirement plans. LTIs are no longer limited to C-suite executives, with companies broadening these incentives to include other managerial staff as well. Some employers are also offering allowances and bonuses instead of increasing basic salaries to retain talent.
According to industry executives, LTIPs are usually for CEOs, but some publicly listed entities may offer them to their C-Suite or start-up executives as well. LTIPs consist of a combination of cash, equity, or stock options, with the potential to be equivalent to 1-5 years of annual fixed salary depending on the organisation and business life-cycle. The trend of offering LTIs has increased substantially post-Covid-19, with companies aligning employee interests with long-term success through equity or stock options in startups and tech sectors.
Some of the most popular LTIs include restricted stock units, stock options, and performance-based rewards, which tie employees’ success to the company’s growth. Companies are enhancing retention efforts with bonuses, promotion opportunities, and flexible working arrangements. LTIs are no longer limited to senior management, with mid-level managers and key talent also being included in these programmes. By expanding LTIs to a broader range of employees, companies can foster a culture of ownership and drive overall success and employee engagement.
LTIs have been proven effective in helping companies retain top talent by aligning employees’ interests with the company’s long-term success and reducing turnover. Additionally, LTIs can be more attractive than immediate salary increases, as they offer employees the potential for substantial rewards if they stay with the company and contribute to its success. This, paired with clear career development pathways, makes employees more likely to stay with a company that invests in their growth and provides opportunities for advancement. In a competitive market like the UAE, companies that offer attractive LTIs gain a strategic advantage in attracting and retaining top talent, fostering loyalty, and driving long-term success.
