Retention is the new recruitment: Why UAE companies are focusing on keeping talent, not just hiring it

Dubai: Are employees really leaving their jobs for lower-paying roles just because they offer remote work or better flexibility? Recruitment experts say it’s not that simple. While pay remains a major motivator, growing numbers of professionals are prioritising workplace culture, flexibility, and recognition over salary.

Across the UAE and globally, companies are recognising that retaining top talent is now more critical and cost-effective than constantly recruiting replacements and is becoming the ‘new recruitment tool’. 

“It is cost effective in many ways. Not only it saves recruitment time and efforts, but it also adds to productivity and efficiency to business operations which results in better revenues for the companies,” said Ravi Jethwani, CEO, Innovations Group, told Gulf News.

Jethwani explained that keeping skilled employees saves time, boosts morale, and ultimately improves revenue. However, he noted that employee expectations are shifting rapidly, especially among younger professionals seeking faster career growth.

“In my 12 years of experience in the UAE, I’ve seen employees aim for quick advancement,” he said. “Attrition is high because of that, making retention a core business strategy rather than just an HR policy.”

According to Jethwani, non-financial rewards play a major role in keeping employees motivated. “Non-financial rewards are in the form of training, job enrichment and job rotation,” he explained. “In my opinion, there must be proper mix to make the initiatives most effective as some people are not motivated by money and some attach more importance to non-financial rewards.”

“Culture is often the biggest reason people leave,” said Nicki Wilson, Executive Director at Genie Recruitment. Poor management, lack of flexibility, or unclear company values can quickly become dealbreakers.

“When leadership and company values don’t align with how people want to feel at work, they start looking elsewhere,” Wilson explained.

It’s true that many people move for better salaries, but not all candidates will jump ship simply because of a package. “If someone enjoys a great work atmosphere has strong leadership and feels genuinely valued money alone often isn’t enough to tempt them away.”

Over time, Wilson has also seen burnout and disconnection become more common reasons for leaving. “When employees feel unsupported, underappreciated or disconnected from a sense of purpose (in or out of work), they will look for something that feels healthier and more aligned. In short, people are leaving poor leadership and rigid cultures more often than they are leaving for higher pay,” she said.

This is a complex question because everyone’s needs are different.

“A good leader understands that recognition takes many forms. For some people its words of appreciation, for others it’s financial rewards, gifts or simply being trusted and empowered,” said Wilson.

A 2024 Gallup poll found that well-recognised employees were 45% less likely to change jobs within two years. Yet, mismatched expectations can still cause dissatisfaction. “If a company recognises performance through bonuses rather than verbal praise and doesn’t communicate that clearly, it can lead to unnecessary frustration,” she noted.

Flexible and hybrid work models are among the most discussed and misunderstood elements of modern employment.

“Many candidates say they want flexible or hybrid setups because they believe it leads to better work life balance but in my experience, not everyone thrives in a flexible environment,” said Wilson.

She encourages candidates to evaluate the whole work environment before switching jobs.

“Some employees are incredibly self motivated when working remotely, while others need the structure, rhythm and energy that come from being around their team in person. Businesses have learned that when productivity drops in a hybrid model, it quickly becomes obvious why and difficult decisions often follow.”

She explained flexibility only works when there is a strong foundation of trust, accountability, and communication.

“Ultimately, loyalty today isn’t about how many days someone spends in the office. It is about whether employees feel trusted, valued and part of a healthy culture that supports both performance and personal balance.”

The challenge ahead, experts agree, lies in managing rising employee expectations shaped by social media. “Platforms glorify entrepreneurship and flexible work without showing the realities behind them,” Wilson said. “This creates a comparison culture where people idealise what work should look like.”

To thrive in this new environment, companies will need to be transparent, adaptable, and genuinely committed to wellbeing.

“Employees today don’t just want a job,” Wilson concluded. “They want balance, purpose, and authenticity. The companies that can truly deliver that - not just promise it - will be the ones that keep their best people.”