Arthur D. Little: UAE & KSA Banks Lead GCC in Employee Experience
High attrition rates for Middle East banks (15–20%) compared to Asia (10–15%) and North America (12–15%).
Arthur D. Little (ADL) has released a comprehensive report emphasizing the transformative power of employee experience (EX) in driving organizational success across the Middle East, particularly in the UAE and KSA. Drawing on decades of expertise in solving complex business challenges, ADL underscores the direct correlation between prioritizing EX and achieving profitability. The report highlights that by enhancing engagement, retention, and innovation, organizations can unlock significant value. However, despite notable advancements in equality and engagement, Middle Eastern banks must continue investing in onboarding, training, well-being programs, and employee recognition to achieve sustainable EX improvements.
Digital Transformation and Employee Engagement: A Balancing Act
“In today’s competitive landscape, banks must view employee experience as a cornerstone of their operational strategy,” said Yacin Mahieddine, Partner, Global Financial Services at Arthur D. Little, Middle East. “Our research shows that organizations investing in EX see tangible improvements in productivity, innovation, and employee retention, especially in rapidly evolving markets like the UAE and KSA.”
The Middle East’s banking sector has made remarkable strides in digital transformation, with 87% of transactions now conducted digitally—on par with Asia’s leading financial institutions (89%) and ahead of the global average of 85%. However, this progress is juxtaposed with a pressing challenge: high employee attrition rates. In the region, attrition stands at 15–20%, significantly higher than Asia (10–15%) and North America (12–15%). This gap highlights the urgent need for strategies that prioritize employee engagement and retention alongside technological advancements.
UAE Banks Embrace AI to Revolutionize Employee Experience
In the UAE, banks are leveraging advanced technologies such as AI and machine learning to elevate their employee experience initiatives. Personalized HR strategies and wellness programs are being deployed to enhance work-life balance, boost productivity, and foster employee loyalty. For instance, leading global players like DBS Bank in Singapore have set benchmarks by collaborating with AWS to deliver AI-driven training programs. Similarly, global financial institutions are revolutionizing EX through personalized learning paths and predictive analytics, enabling tailored employee development and fostering innovation.
“In markets like KSA, where national transformation goals are reshaping industries, prioritizing employee experience is seen as essential to building a motivated and future-ready workforce. Key initiatives are focused on increasing female workforce representation to 22% by 2025, aligning with Saudi Vision 2030 goals, and achieving a resilient and diverse workforce” said Nelson Danam, Principal, Global Financial Services at Arthur D. Little, Middle East. “Today we see key trends shaping EX such as the integration of AI, the rise of hybrid work models, and the increasing focus on diversity and well-being, being rolled out in KSA. Leaders acknowledge that bold shifts toward people-centric cultures and authentic workplaces, will make their banks ready to attract and retain top talent.”
Prioritizing EX: A Strategic Imperative
As employee expectations evolve rapidly, organizations can no longer view EX as a secondary concern. Instead, it has become a strategic necessity for driving growth, adaptability, and innovation. To remain competitive, businesses must focus on strategic alignment, cultural transformation, and proactive change management. These elements are no longer optional—they are critical for sustaining a competitive edge in the dynamic EX landscape.
By recognizing the pivotal role of employee experience, organizations in the Middle East can position themselves as leaders in innovation and resilience, ensuring long-term success in an increasingly competitive global market.
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