In the UAE, several companies are providing long-term incentives (LTIs) like stock options and performance-based rewards to their employees due to intensifying competition for talent retention. Recruitment industry leaders note that some employers are also offering tailored packages including personalized wellness programs, flexible retirement options, and education allowances. It's been observed that these LTIs are not just limited to top executives at the C-suite level; they are being extended to other managerial staff as well.
As previously reported by Khaleej Times, UAE firms are focusing more on bonuses and allowances rather than raising basic salaries to keep their best employees. Jack Khabbaz, Managing Partner at Cooper Fitch, mentioned that long-term incentive plans (LTIPs) are typically designed for CEOs, but some public entities and startups also offer them to their C-suite executives. These plans can include a mix of cash, equity, or stock options, amounting to between 1-5 years of an annual fixed salary, depending on the company's type and business cycle.
According to a 2024 survey by Cooper Fitch, 52% of CEOs have received long-term incentives. Deeksha Gandotra from Très Versatile highlighted that post-Covid-19, the number of companies offering LTIs such as flexible work options and positive office cultures has significantly increased. These incentives often align with performance metrics or company milestones, including bonuses tied to specific targets or sustained growth.
Chandy Philip, CFO of Tasc Group, pointed out that popular LTIs include restricted stock units and stock options, which link employee success to company growth. Performance-based LTIs are also gaining traction, with rewards directly linked to goal achievement. Additionally, companies are offering flexible work arrangements and family support like education allowances to enhance retention.
Philip also noted that LTIs are increasingly being offered to a wider range of employees beyond just C-suite executives and senior management, including mid-level managers. This expansion aims to create a culture of ownership and long-term thinking, crucial for strategic objectives. Deeksha Gandotra confirmed that LTIs are effective in retaining talent by aligning employee interests with the company's long-term success, reducing turnover among key executives and senior managers.
