In our sixth End of Service Benefits survey, Towers Watson surveyed a broad cross-section of organisations based in the Middle East to look at the level of provision, and the structure and delivery of mandatory and enhanced employee End of Service Benefits (ESBs). Responses were received from over 180 organisations, with such a large number again being indicative of the importance of this as an issue across the Middle East.
Some of the key findings from this year's survey are:
- Retaining key talent is increasingly becoming one of the main reasons for enhancing ESBs, as well as to comply with local or industry best practice.
- Employees continue to spend longer time periods in the region and, as a result, the importance of supplemental DC savings and pension plans is expected to increase.
- Retirement and savings plans for all employees continue to be common in the Middle East region, and 45% indicated that they provide an enhancement to mandatory benefits for employees.
- While some companies continue to hold provisions for ESBs in a separate fund, the majority of participants still continue to pay benefits from their company accounts.
- A separate DC plan has consistently been the most popular method of providing an enhancement to ESBs.