People are leaving jobs for better pay. Critics might argue it’s a tale as old as time and is hardly a trend. But beneath the surface, it signals a deeper, more deliberate shift—one with glacial magnitude.

According to Korn Ferry’s Workforce 2025 report, two in three professionals in the UAE say they would switch jobs for better pay. However, it’s not simply about earning more.

“While the desire for better pay has long influenced career decisions, what we’re seeing today reflects a more complex shift in workforce expectations,” explains Vijay Gandhi, Regional Director at Korn Ferry.

“People have often said that employees don’t leave a business, they leave bad managers, and this trumps pay,” says Lucy D’abo, CEO at Together.

Dynamics have shifted and are now governed by broader economic and cultural forces. “Today, pay-driven exits are much more loaded and reflect more than greed or a bad manager. They signal economic uncertainty (stagnant salary vs. rising costs), misalignment with the organizational culture, lack of purpose and stunted career paths,” D’abo adds.

WHY ARE PEOPLE RESIGNING?

Resignations are often met with immediate curiosity about the employee’s next destination and the compensation that lured them away. This reaction highlights the long-held assumption that pay is the primary motivator behind job changes.

According to Gandhi, broader economic forces are reshaping employee priorities.

“Rising inflation and cost-of-living pressures are pushing many professionals, in this region, to seek greater financial stability,” he says.

Better pay is one side of the coin, the other side is governed by a slew of tangible and intangible benefits. “Employees now expect more from their employers: fair compensation, meaningful work, flexibility, and a strong, values-driven culture,” Gandhi says.

There are macro and micro factors at play when employees decide to resign.

“When companies ignore broader retention factors (culture, development, autonomy), employees vote with their feet, even if salary growth is flat,” says D’abo.

According to research 88% of employees say that a poor workplace culture would make them want to leave their job. “Add to that rising rents and school fees without matching pay puts enormous pressure on basic financial security,” she adds.

Overall, while money is important, it’s not just about better compensation.

“It’s not just about money. It signals gaps in culture, trust, and a lack of confidence in the future. Get this right and you will have loyal and long-serving teams,” says D’abo.

WHAT CAN ENTERPRISES DO?

Good retention is the pride and glory of any enterprise. The opposite, terrible retention, no matter how justified, signals deeper issues within the organization—whether it’s misaligned leadership, poor culture, lack of growth opportunities, or an environment that fails to meet the evolving expectations of its workforce. In the current environment what can companies offer people to stay?

“Today we are seeing a regional recognition deficit, making recognition the biggest challenge but also the greatest opportunity for employers,” says D’abo, referencing insights from the 2024 Together Workplace Culture Report.

While compensation remains important, D’abo emphasizes that employees crave acknowledgment and appreciation that go beyond salary alone. “Employees are telling us it’s not just about financial rewards—they want to feel seen, valued, and empowered in their day-to-day work,” she says.

One in three employees in the UAE express a desire for greater recognition at work—yet not a single respondent reported currently experiencing it, highlighting what D’abo calls “the most significant deficit in workplace culture today.”

When asked what recognition means to them, employees described a desire for more real-time appreciation, career development opportunities, and genuine empowerment—signals of a more profound need for connection, trust, and growth within their organizations.

Meanwhile, Gandhi points to several key drivers shaping employee experience: “Purposeful work is critical—employees want to feel their contributions truly matter. A company’s reputation, impact, and clarity of purpose play a defining role in long-term engagement.”

He adds, “Career development is another essential factor. Providing clear growth opportunities and investing in learning, especially early in an employee’s journey, has become vital for retention.”

Additionally, he underscores the importance of recognition and psychological safety. “People stay where they feel seen, valued, and supported. Transparent leadership and open communication foster the psychological safety today’s workforce expects.”

Though research reaffirms that pay remains the primary motivator—with 80% of UAE professionals open to switching jobs for better compensation and up to 70% reporting that cost-of-living increases are outpacing salary growth—D’abo argues that salary alone is no longer a sufficient reason to stay.

“Given the modest average raise of just 4% in 2024, amid sharp rises in housing and schooling costs, companies must rethink what they’re offering beyond the paycheck,” she says.

THE ULTIMATE RETENTION LEVER

Both D’abo and Gandhi agree that the most powerful retention lever today is a “holistic and enhanced employee experience”.

“The strongest retention lever is a workplace that prioritizes culture, purpose, and recognition, backed by real opportunities for growth,” says D’abo. She adds that fair processes around career development, intentional recognition, and active mentorship are among the key cultural drivers that keep people engaged—even when financial rewards are limited.

Employees, particularly younger generations, are also increasingly seeking more flexible work and a deeper sense of wellbeing. “Gen Z, for instance, is willing to accept lower pay in return for hybrid or remote working and reduced commuting stress,” D’abo notes, “while Gen X and Millennials are focusing more on balanced lifestyles and work-life integration.”

Tailored benefits are also becoming central to employee satisfaction. Healthcare, income protection, mental health support, family and education allowances, and recognition programmes are particularly important in high-cost environments like the UAE. “Employers can no longer rely on one-size-fits-all solutions. They need to personalize benefits and be intentional about how they support different employee needs,” says D’abo.

Gandhi sums it up: “In short, salary may attract talent, but it’s culture, clarity, and connection that keep them. Companies that invest in the full employee experience, not just financial rewards, are the ones building sustainable competitive advantage.”

D’abo concludes, “Employers must now focus on delivering a total employee experience—where salary is just one pillar among many. Retention today depends on a workplace that values trust, fairness, flexibility, and a genuine culture of recognition.”