Middle Eastern companies are struggling to attract and retain executive talent, indicating that standard salary increases are no longer effective. Despite offering competitive salaries, businesses face significant talent shortages, with 90% of organizations reporting skill gaps in 2025. This highlights a disconnect between employer compensation strategies and the evolving expectations of high-caliber professionals. The issue is particularly acute for leadership, management, and specialized technical and digital roles.
Firms are increasingly recognizing that bigger paychecks alone are not solving the executive talent crunch in the region. Instead, there's a growing need to look beyond base salary. While some companies are adopting Wall Street-style pay models, incorporating performance-based bonuses, other non-monetary incentives are becoming crucial. This includes focusing on benefits such as child education allowances, additional annual leave, flexible and remote work options, and wellbeing days.
This shift comes as employee expectations are rising faster than what many employers are prepared to offer. For instance, in 2025, 58% of professionals received a salary increase, mostly between 2.5% and 5%, yet 60% felt their pay didn't align with their responsibilities. For 2026, 78% of professionals expect a raise, with nearly a quarter anticipating an increase of over 20%, while most employers project raises of up to 5%. This gap in expectations, coupled with intense competition for talent and limited career progression opportunities, contributes to high employee turnover, with 27% of professionals changing employers in 2025 and close to 40% considering a move in 2026. Therefore, a comprehensive approach addressing both financial and non-financial incentives is essential for companies in the Middle East to effectively compete for executive talent.
