More employees across the UAE are rethinking their career paths, with soaring living expenses—especially rent and education—emerging as a top reason for job-switching, according to a Gulf News report, citing a new research from the consultancy firm Korn Ferry Digital.
Although many employers have introduced modest salary increases, typically around 4%, these gains fall short when compared to the steep hikes in household expenses. Rent alone has surged by 15% to 20% in recent years, placing a growing financial burden on salaried workers.
“Employees are facing increased costs of living—as a result, benefits and pay have become the leading reason for leaving companies,” said Vijay Gandhi, Regional Director for Europe, the Middle East, and Africa at Korn Ferry Digital.
The report highlights that two-thirds of workers feel their income no longer keeps pace with expenses, pushing many to actively seek new roles offering better compensation packages. Key findings show that those grappling with rising costs are more likely to leave within three months, pay closer attention to total compensation—including benefits—and may even stay in unfulfilling roles if the salary justifies it.
Employers, the report warns, risk losing vital talent unless they align wages with local cost-of-living realities. “Benchmarking rewards against global and regional data—while tracking employee sentiment through listening tools—is essential to staying competitive,” it added.
Meanwhile, companies are also grappling with a new layer of financial pressure: corporate tax. With this additional expense, several businesses have slowed down their hiring efforts to manage operational costs more efficiently.
The expanding population in the UAE has also led to heightened competition in the job market. More applicants are vying for limited roles, especially at junior and mid-career levels, keeping salaries stagnant in those categories.
In response, jobseekers are becoming more open to exploring different industries, prioritizing stability and long-term prospects amid a shifting economic landscape.