Its second annual survey on end of service benefits, published today, revealed that 36% of the 142 local and multi-national companies canvassed may outsource to a fiduciary management service provider.
In the Middle East, most expatriate employees receive a one-off lump sum payment in the form of an end of service benefit.
Extra pressure on the funding was coming from salary rises and the trend of people staying longer in their jobs, said Jahangir Aka, SEI head, Middle East.
He added that the number of participants in the survey had risen significantly since last year, when 90 responded.
“The talent war has really picked up again in the last couple of years, as Dubai and the UAE generally have recovered. We’re seeing this in Qatar and Saudi as well. The war for good talent is very aggressive, so holding on to good expats is a challenge.”
In the survey, over 65% of employers were planning to increase salaries in the next three years, and staff retention was also reported to be 37% higher in firms which have enhanced end of service benefits.
Just over half (54%) of companies mixed end of service benefit funds with their working capital and the majority instead used the money to operate their business, the survey further found.
To find out about the expected combined liabilities of Gulf cooperation Council employers by the year 2020, click here.
