Employee engagement refers to the enthusiasm and dedication an employee feels toward their job. It is the backbone of a thriving workplace. When employees feel valued, they give their best effort.
This is especially important in the UAE because the country’s workforce is diverse and rapidly evolving. According to Gallup research, only about 30% of UAE employees feel engaged at work. Therefore, you must keep your employees engaged to maintain your business competitiveness.
If you work in the UAE or are familiar with the business landscape in general, you are no stranger to the dynamics of modern workplaces. As workplaces evolve, employee engagement needs to change as well.
In this blog, we explore employee engagement in the UAE’s modern workplace, its challenges, and strategies to improve it.
What is Employee Engagement?
Employee engagement is the level of commitment and enthusiasm employees have toward their work. It reflects how emotionally invested they are in their roles. Employees with high levels of engagement take initiative, contribute ideas, and drive company success.
Employee engagement goes beyond job satisfaction—it influences effort, loyalty, and long-term retention. The concept was first introduced in the 1990s and evolved into a major management practice by the 2000s.
High levels of employee engagement create a strong connection between employees and their organization. Employees who are engaged are more productive and motivated to perform well. They see their role as more than just a paycheck and are willing to go the extra mile to get their job done. This sense of purpose drives them to contribute meaningfully and support the organization’s growth.
Now that we’ve defined employee engagement let’s see how it plays out in the UAE. Workplace culture, policies, and economic factors shape how engaged employees feel.
Current State of Employee Engagement in UAE
UAE has a very diverse workforce due to its demographic composition and its position as a focal point for migrant labor. With people from more than 200 nationalities living and working in the UAE, modern workplaces have become considerably diverse.
Engaging employees from such diverse backgrounds is a hurdle that the majority of the employers find difficult to surmount. Organizations are increasingly recognizing the importance of an engaged workforce, as it directly impacts productivity and retention.
However, engagement levels in the UAE are not uniform across industries or companies. While some sectors see high levels of employee commitment, others struggle with disengagement.
Let’s explore some key statistics to better understand the current state of employee engagement in UAE.
Key Statistics Related to Employee Engagement in UAE
Gallup’s Key Workplace Trends in the UAE report shows a rise in employee engagement, from 19% in 2019 to 30% in 2022. Despite this progress, 62% of UAE employees remain disengaged, often described as “quiet quitters”—those who do the bare minimum without real commitment.
This widespread disengagement isn’t just a workplace issue; Gallup estimates it costs the UAE economy between $8.6 and $10.3 billion annually in lost productivity. According to an article by “The National”, UAE is doing better regionally when it comes to employee engagement and stress management.
Here are some points to summarize the current state of employee engagement in UAE:
- There has been an increase in employee engagement but there is still room for improvement
- There is a very high percentage of “quiet quitters”
- There is a significant adverse effect of employee disengagement on the overall economy of UAE
- UAE is doing better than other countries in the MENA region in terms of employee engagement
Now let’s take a look at employee engagement in some key industries in the UAE.
Employee Engagement in Major Industries in the UAE
Employee engagement in the UAE varies from one industry to another. UAE witnessed rapid industrialization from the late 1960s with growth in various sectors. Some of the major industries in the UAE and employee engagement challenges they face:
- Oil and gas: Traditionally high-paying, but demanding jobs with rotational shifts. Long working hours, safety concerns, and limited work-life balance impact engagement.
- Hospitality: A key sector with a mix of expatriates and seasonal workers. A high employee turnover rate of 82.6% reflects a significant lack of employee engagement.
- Healthcare: A growing sector with increasing demand for skilled professionals. Major challenges to employee engagement in this sector include high stress, burnout risk, and regulatory requirements.
- Retail: Around one in five of the Emirati workforce work in the retail sector. Some challenges to employee engagement in the retail sector include low wages, long hours, and repetitive tasks.
- Construction: There are approximately 1.2 million construction workers in the UAE. However, the employee turnover rate is approximately 20-25% indicating poor employee engagement.
After understanding the current state of employee engagement in the UAE, it’s important to explore the factors that influence it.
Factors that Influence Employee Engagement in UAE
Various internal and external factors shape employee engagement in the UAE. Understanding these influences is crucial for organizations looking to improve engagement and foster a productive, loyal workforce.
While some factors are unique to the region, others are universal across global workplaces.
1. Organizational Culture
A strong organizational culture, built on leadership that values and respects employees, improves employee engagement. In the UAE, organizations that prioritize open communication, inclusivity, and recognition often see higher engagement levels.
A culture of trust and transparency builds strong emotional connections with employees, making them more invested in their roles. Here are some key aspects related to organizational culture that boosts employee engagement:
- Open communication: Encouraging transparent discussions fosters trust and alignment with company goals.
- Inclusivity: Embracing diversity ensures all employees feel valued, boosting morale and engagement.
- Recognition programs: Regular appreciation, whether monetary or verbal, strengthens employee motivation.
- Employee involvement: Allowing employees to contribute ideas increases their sense of ownership.
2. Leadership and Management
Leadership plays a crucial role in employee engagement. In the UAE, employees seek leaders who inspire, support, and guide them. Strong leadership fosters growth, provides regular feedback, and instills a sense of purpose, significantly enhancing engagement. Conversely, poor management can lead to disengagement and dissatisfaction.
According to an article by Forbes, the highest driver of engagement is whether employees feel their leaders care about them. Here are some key aspects related to leadership that influences employee engagement:
- Supportive Leadership Style: Leaders who mentor, guide, and listen to employees strengthen workplace morale and engagement. This is important as managers can affect employee engagement by 70%.
- Clear Vision and Direction: Leaders who communicate a clear mission help employees feel aligned with company goals.
- Emotional Intelligence: Leaders who understand and address employees’ concerns create a positive and supportive work environment.
- Growth and Development Opportunities: Managers who invest in employee learning and career progression increase engagement.
3. Work-Life Balance
Achieving a healthy work-life balance is crucial in the UAE, where long working hours and demanding jobs are common. Organizations that offer flexible hours, wellness programs, and personal support foster greater engagement and reduce stress. A balanced lifestyle directly impacts employee satisfaction and retention.
In modern workplaces, employees increasingly seek flexibility to manage both professional and personal responsibilities. According to a study 3 out of 10 employees who experience good work-life balance don’t consider leaving their jobs. Some aspects of worklife balance that improves employee engagement are:
- Paid Time Off (PTO): Paid time off is important for employee engagement. Sufficient vacation days and sick leave help employees recharge, preventing burnout and maintaining long-term engagement.
- Wellness Programs: Supporting mental and physical health through wellness initiatives encourages employees to maintain a healthy work-life equilibrium.
- Family Support Initiatives: Providing parental leave, childcare assistance, and family support fosters loyalty and engagement among employees.
- Clear Boundaries Between Work and Personal Life: Encouraging employees to separate work from personal time helps prevent burnout and stress, promoting better well-being.
4. Recognition and Rewards
Recognition for a job well done is a key motivator. In the UAE, employees are more likely to stay engaged when they receive regular acknowledgment of their efforts. Salaries are fundamental, but recognition and rewards are important to strengthen the employee-employer relationship.
Proper rewards and recognition have a positive impact on employee engagement and they feel that the organization values their efforts. Check out our blog on “How Employee Rewards Boost Positive Emotional States” to learn more about the importance of rewards.
Here are some key aspects of recognition and rewards that influence employee engagement:
- Monetary Rewards: Bonuses, raises, and profit-sharing incentivize high performance and foster loyalty.
- Non-Monetary Rewards: Opportunities for career advancement, additional responsibilities, or flexible hours motivate employees beyond financial incentives.
- Positive Reinforcement: Regular praise for good work encourages continued effort and commitment.
- Team Recognition: Celebrating team success fosters collaboration and strengthens group engagement.
5. Job Security and Career Development
Job stability and opportunities for career growth are fundamental to employee engagement. In the UAE, employees are more likely to be engaged when they see clear paths for advancement and feel secure in their roles.
Companies that invest in training, mentorship, and professional development programs create an engaged workforce that is motivated to perform at their best. Here are some aspects of career development and job security that influences employee engagement:
- Training and Skill Development: Providing employees with the tools and knowledge to improve their skills boosts their confidence and commitment to the organization.
- Fair and Transparent Layoff Policies: Clear policies regarding layoffs and restructuring build trust and reduce uncertainty.
- Compliance with Labor Laws: Adhering to UAE labor regulations and ensuring employee rights are protected fosters trust and commitment.
- Stable Employment Contracts: Offering permanent or long-term contracts reassures employees about their job stability, reducing anxiety and disengagement.
While understanding the factors that drive employee engagement is essential, sustaining high engagement levels comes with its own set of challenges.
Key Challenges in Maintaining Employee Engagement
Sustaining employee engagement is a challenge for organizations worldwide. Various workplace dynamics, evolving employee expectations, and leadership practices influence engagement levels.
While some challenges are universal, factors like labor laws and workforce diversity add complexity in regions like the UAE. Here are five key challenges organizations face in maintaining employee engagement.
1. Lack of Information
Employees disengage when they are not given clear information about company goals or key decisions. Without transparency, they may feel excluded, unimportant, or disconnected from the organization’s vision. Regular communication is essential to keep employees aligned and engaged.
- Employees need clear updates on company objectives and direction.
- Lack of internal communication creates uncertainty and disengagement.
- Two-way communication channels help employees feel heard and valued.
Human resource information systems (HRIS) helps employees gain important information and help address the issue of lack of information.
Check out our blog on “HRIS Essentials: A Beginner’s Guide to Human Resource Information Systems” to learn more.
2. Lack of Recognition
A lack of appreciation, whether through praise or rewards, leads to decreased motivation and lower morale. When employees consistently feel overlooked, their commitment to the organization weakens, resulting in lower productivity and engagement. Recognition fosters a sense of purpose, making employees more likely to go the extra mile in their roles.
- Recognizing achievements as they happen reinforces positive behavior and keeps employees motivated.
- Tailoring recognition to individual preferences (e.g., verbal praise, bonuses, or extra time off) makes it more meaningful.
- Encouraging colleagues to acknowledge each other’s contributions fosters a culture of appreciation and teamwork.
3. Workplace stress and loneliness
Workplace stress and loneliness is a major barrier to employee engagement especially in modern workplaces. According to an article by The National, 41% of employees in UAE experience “a lot of stress” in their workplace. 26% of Emirati employees face loneliness daily.
Workplace loneliness basically means the feeling of disconnect and isolation from colleagues and the organization. This greatly affects an employee’s subjective sense of belonging. This is a major challenge employers are facing in the UAE.
- It is important to refrain from giving unrealistic expectations and targets to employees as these add to the stress.
- Encouraging social connections through team-building activities and open communication can reduce feelings of loneliness and isolation.
- Offer counseling services, mental health days, or stress management programs.
4. Employees Feeling Unheard
When employees feel their opinions or concerns are ignored, their engagement levels plummet. Feeling unheard can lead to frustration, disengagement, and a lack of motivation to contribute.
If employees believe that their input does not matter in decision-making, they are less likely to be invested in their work. Organizations that prioritize listening to their employees create a more inclusive and engaged workforce.
- Implementing frequent surveys, one-on-one meetings, or suggestion boxes allows employees to voice their concerns and feel heard.
- Encouraging leaders to actively listen, acknowledge feedback, and respond appropriately fosters a more open and engaging workplace.
- Involving employees in decisions, especially those that directly impact their work, makes them feel valued and invested in the outcome.
5. Poor Work Life Balance
According to an article by Khaleej Times, 80% of UAE employees are miserable at work. This is because work is the second most time-consuming activity they do after sleep. Overworking without sufficient time for personal activities, family, or rest decreases overall job satisfaction.
Employees who feel their work constantly compromises their personal lives will likely feel less motivated to work. A proper work-life balance is essential for maintaining long-term engagement and mental well-being.
- Offering flexible working hours allows employees to manage their commitments without feeling overwhelmed by work responsibilities.
- Promoting the use of vacation days and breaks helps prevent burnout, ensuring employees return to work refreshed and more engaged
- Managers who respect personal boundaries contribute to a more balanced and motivated workforce.
These are the five main barriers to effective employee engagement. Let’s understand some clear strategies to boost employee engagement.
Actionable Strategies to Increase Employee Engagement
Employee Engagement requires structured strategies and visible efforts from the management. Organizations that actively invest in engagement see higher productivity, better retention, and a more motivated workforce.
To implement the right strategy, you first need to identify the root cause of poor employee engagement. Conduct an employee engagement survey to understand your organization’s challenges.
Learn about effective questions to ask during an employee engagement survey from our blog, “50 Effective Employee Engagement Survey Questions”.
Once you’ve identified the main challenge, implement the strategies accordingly. Here are some common strategies to increase employee engagement:
1. Communication and Goal Setting
Clear communication and well-defined goals are essential for driving employee engagement in your organization. When your team understands company objectives and how their roles contribute, they feel more connected to the organization.
By setting measurable and achievable goals, you give them a sense of purpose and direction, making it easier for them to stay focused and motivated. Here’s how you can improve communication for better engagement:
- Establish Clear, Achievable Goals: Ensure each employee understands their individual objectives and how they contribute to the organization’s success.
- Regular Check-ins and Feedback: Schedule periodic meetings to review progress, provide feedback, and adjust goals as necessary.
- Promote Two-Way Communication: Encourage open dialogue between employees and leadership to address concerns and celebrate milestones.
- Align Personal and Company Goals: Ensure that employees’ personal career goals align with the company’s objectives to increase motivation
Check out our blog, “23 Effective Ways To Improve Communication In The Workplace” to find the best ways to improve communication.
2. Competitive Compensation and Meaningful Benefits
Fair remuneration and well-structured benefits play a key role in employee engagement. While competitive salaries ensure financial stability, additional perks and non-monetary rewards improve job satisfaction.
In a competitive business environment like the UAE, most companies offer similar salaries. As a result, employee engagement often hinges on benefits and support beyond salary. Here’s what you can do to ensure that compensation and benefits are suitable for employee engagement:
- Offer Competitive Salaries: Ensure compensation aligns with industry standards to attract and retain top talent.
- Provide Performance-Based Incentives: Reward employees with bonuses, commissions, or profit-sharing for outstanding contributions.
- Include Non-Monetary Perks: Offer flexible work arrangements, extra paid leave, or wellness programs to enhance job satisfaction.
- Invest in Employee Well-Being: Provide healthcare benefits, mental health support, and financial wellness programs to show long-term commitment to employees.
3. Employee Engagement Activities and Team Building
Engaging employees through interactive activities and team-building events is an excellent way to strengthen bonds and boost morale. Workplace stress and isolation can be a major challenge for employees and cause disengagement. Employee engagement activities can be greatly beneficial if conducted strategically.
These activities, whether in-person or virtual, create opportunities for employees to connect on a personal level, break down silos, and improve collaboration. Here’s what you can do:
- Organize Team-Building Events: Plan regular team outings or activities that promote collaboration and bonding.
- Introduce Fun Challenges or Competitions: Host friendly competitions to encourage creativity and teamwork while adding an element of fun.
- Create Recognition Programs: Use team-based awards to recognize collective achievements and enhance group cohesion.
- Promote Social and Well-Being Activities: Offer opportunities for employees to engage in wellness activities, like fitness challenges or mindfulness workshops.
Check out our blog, “HR Employee Engagement Activities for Teams” to discover some unique employee engagement activities for your workplace.
4. Empowerment and Autonomy
Empowering employees by giving them more control over their work and decision-making can significantly improve engagement. When you trust employees to make decisions and manage their tasks independently, it boosts their sense of ownership and accountability.
Autonomy encourages creativity and innovation, as employees are not confined by rigid instructions. In turn, they become more proactive, passionate, and invested in their roles, leading to higher engagement levels. Here’s what you can do:
- Delegate Responsibilities: Give employees the freedom to lead projects or initiatives to enhance their decision-making skills.
- Encourage Independent Problem Solving: Allow employees to tackle challenges without micromanagement, fostering a sense of ownership.
- Foster a Culture of Trust: Show confidence in your employees’ abilities and allow them to take on new, challenging tasks.
- Incorporate Flexible Work Options: Offer flexible hours or remote work, allowing employees to work in a way that best suits their productivity.
5. Foster a Culture of Feedback and Recognition
Creating a culture where feedback is constructive, timely, and consistent helps employees stay engaged and feel valued. Regular feedback—both positive and constructive—guides employees to understand their strengths and areas for improvement.
When you pair feedback with recognition, employees become more motivated and engaged, knowing that you see and appreciate their efforts. Here’s what you can do:
- Provide Real-Time Feedback: Offer regular, actionable feedback that employees can use to improve their performance.
- Create a Recognition Program: Implement formal recognition programs to celebrate both individual and team accomplishments.
- Align Feedback with Company Goals: Ensure that the feedback provided is linked to both personal and organizational objectives to create a sense of purpose.
Increasing employee engagement in modern workplaces may seem challenging. However, with the right strategies, consistent effort, and a genuine commitment to employee well-being, you can create a thriving, motivated workforce.
Contact hrtech today for personalized recommendations on workforce management and explore our blogs to learn best ways to engage your employees!
Conclusion
Employee engagement is crucial to organizational success, especially in the UAE, where culture, leadership, and work-life balance impact motivation. Companies can boost engagement by adopting strategies like clear communication, competitive compensation, and recognition.
Software solutions in hrtech marketplace can support these efforts by streamlining performance management, feedback, and employee well-being. These tools help HR teams track engagement, gather insights, and foster a positive work environment.
Want the best software solutions to support your employees? Discover how hrtech can help you create a more motivated, connected, and high-performing team today.
