Skip to main content
main content, press tab to continue
Survey Report

Job Hugging in the UAE: Stability, stagnation or strategic opportunity?

Insights from the 2025 WTW Pulse Survey

By Laurent Leclere , Radhika Gupta and Piya Oberoi | March 18, 2026

Amid rapid change, economic uncertainty and technological shifts, job hugging is emerging as a major workforce trend across the Middle East.
Employee Experience|Total Rewards|Health and Benefits|Employee Wellbeing|Compensation Strategy & Design|Kariyer Analizi ve Tasarımı|Global Benefits Management
N/A

In a labor market characterized by rapid transformation, economic uncertainty and accelerating technological change, the concept of “job hugging” has emerged as a defining workforce trend across the Middle East. The 2025 WTW Job Hugging Pulse Survey, conducted in October 2025 among HR and Total Rewards leaders, reveals how this phenomenon is reshaping organizational dynamics in the United Arab Emirates (UAE).

With 299 regional responses (80 of them from the UAE) the study provides a nuanced picture of why employees are staying, why they leave, and what organizations stand to gain or lose as job hugging becomes more widespread.

Although this analysis is UAE-specific, companies’ practices collected for Egypt and Saudi Arabia are showing the same job-hugging trends. More broadly, the Middle East region reflects a similar pattern, pointing to a shared regional dynamic.

What is job hugging?

Job hugging describes employees who stay in their roles longer than they otherwise might, driven less by satisfaction and more by:

  • Uncertainty about the external job market
  • Fear of change, automation or redundancy
  • Desire for stability during volatile economic cycles

This behavior has grown in visibility as talent markets cool, competition for roles intensifies, and the skill requirements for many jobs shift with technological advancements.

Neutral impact dominates – but challenges are emerging

Survey results show that 46% of UAE respondents perceive a neutral or minimal impact of job hugging on their organizations. Stability and continuity are clear benefits, particularly in sectors where tenure deepens expertise.

But neutral does not necessarily mean harmless. Despite providing short‑term consistency, job hugging introduces long‑term risks – especially for economies focused on agility and innovation.

Turnover stabilizes – but mobility slows

UAE organizations report that voluntary turnover has largely remained consistent compared to the previous year, with 62% saying it has “stayed about the same.”

Meanwhile, moderate turnover best describes current employee behavior in which employees are relatively open to opportunities but are not actively seeking them, suggesting a cautious attitude toward career moves.

This slow‑down in mobility can have downstream effects on talent pipelines, leadership readiness and wage inflation.

Turnover stabilizes – but mobility slows
Figure 1. Turnover stabilizes – but mobility slows

Why employees stay: Security tops the list

Across the region, especially in the UAE, job security during economic uncertainty is the overwhelmingly dominant reason employees stay. It ranks as the top choice among survey respondents, far ahead of compensation or culture.

Other significant “stay factors” include:

  • Positive leadership and work environment
  • Competitive pay and total rewards
  • Strong employer brand and reputation

Yet one reason stands out as particularly relevant to the region: Limited attractive external opportunities, reflecting a more competitive market across certain sectors and levels.

Why employees leave: Pay still reigns supreme

When employees do decide to move on, the driving force is unmistakable: 67% cite better pay and benefits elsewhere as the primary reason.

Close behind are:

  • Career growth opportunities (particularly for younger talent)
  • Desire for international experience
  • Burnout or disengagement
  • Preference for more flexible/hybrid work options

This demonstrates that while job hugging slows turnover, it does not eliminate flight risk, especially when the market improves.

Neutral impact dominates – but challenges are emerging
Figure 2. Neutral impact dominates – but challenges are emerging

Top risks: Career bottlenecks and stalled innovation

In the UAE, the most significant risk attributed to prolonged job hugging is career progression bottlenecks, particularly for emerging local talent. Without natural attrition or mobility, succession paths become blocked and younger employees struggle to advance.

Other notable risks include:

  • Stagnation and declining innovation
  • Rising retention costs
  • Reduced engagement and complacency

These risks highlight the importance of balancing retention with ongoing workforce renewal.

Top benefits: Institutional knowledge and cultural stability

Despite its risks, job hugging offers meaningful benefits. In the UAE, the top advantage cited is building long‑term institutional knowledge, which is crucial in a rapidly expanding and maturing economy.

Other reported benefits include:

  • Enhanced ROI on workforce development
  • Stronger cultural cohesion
  • Better succession readiness for critical roles

For industries where expertise and relationships matter, continuity can be a competitive asset.

How widespread is job hugging?

Most UAE organizations estimate that 10–25% of their workforce is job hugging. A smaller but notable segment falls into the 26–40% range, signaling that as markets remain tight, employee behavior is becoming increasingly entrenched.

 

How widespread is Job Hugging?
Figure 3. How widespread is Job Hugging?

Future risk: A moderate flight risk looms

If market conditions improve within the next 12–18 months, UAE respondents anticipate a moderate level of flight risk, with many employees likely exploring external opportunities once confidence returns.

This potential “unfreeze” in the market underscores the need for proactive talent strategies today.

Engagement and readiness: A mixed picture

UAE organizations generally report moderate‑to‑high engagement, a promising sign that many job‑huggers remain committed, not complacent.

However, technological readiness is more concerning:

  • Less than 10% say they are “very prepared” for AI and automation shifts
  • Most describe themselves as only “somewhat prepared”

This suggests a widening skill gap unless organizations accelerate reskilling and workforce development initiatives.

 

Engagement and readiness: A mixed picture
Figure 4. Engagement and readiness: A mixed picture

Talent attraction holds steady

Over the past year, organizations in the UAE have seen no significant change to some improvement in their ability to attract high‑quality external talent.

This stability may reflect both improved hiring processes and reduced candidate competition due to job hugging.

Is job hugging good or bad for business?

The verdict: It depends.

The survey reveals no consensus – only nuance. Leaders highlight advantages, such as:

  • Stability and retention of expertise
  • Stronger culture
  • Lower recruitment costs

But others warn of substantial drawbacks, like:

  • Innovation slows
  • Talent pipelines stagnate
  • Employees lose agility and fresh perspectives
  • Performance gaps widen

The most common theme: Job hugging is beneficial only when paired with engagement, development and mobility. Without these, it becomes a long‑term liability.

What organizations should do next

The findings point toward several strategic priorities:

  1. Strengthen internal mobility
    Clear paths for lateral and upward movement, alleviate bottlenecks and refresh roles.
  2. Invest in upskilling and reskilling
    Employees need future‑ready skills to adapt confidently – not cling to familiar roles.
  3. Build career lattices, not just ladders
    Alternative career paths keep talent engaged and broaden organizational capabilities.
  4. Reassess total rewards strategy
    As pay remains the #1 reason for leaving, compensation must stay competitive and aligned with market realities.
  5. Identify “critical huggers” vs. “stagnant huggers”
    Some roles benefit from long tenure; others need periodic renewal.

Conclusion

Job hugging is neither inherently good nor bad – it is a symptom of deeper market dynamics. For the UAE, it reflects a maturing workforce, heightened economic caution and shifting skill demands. Organizations that view job hugging as an opportunity for strategic planning – not just a retention trend – will be best positioned to leverage stability while protecting their agility and innovation edge.

Authors


Director, Rewards Data Intelligence

Laurent Leclere support local and international organizations accessing latest Compensation & Benefits practices survey databases across the Middle East region and/or across industries. Based in Dubai, he helps organizations developing their competitive edge on C&B matters.

email Email

Associate Director, Work, Rewards & Careers

Radhika Gupta brings deep expertise in HR and Rewards Transformation and M&A advisory at Willis Towers Watson. She has led complex transformation initiatives for leading GCC organizations and supported high-impact M&A transactions, providing strategic guidance on people strategy, leadership and rewards, across the full deal lifecycle from pre-deal due diligence to post-merger integration.

email Email

Analyst, Integrated & Global Solutions

Piya Oberoi supports multinational organizations across WTW’s CEEMEA region and beyond, advising on benefits, wellbeing, and broader people strategies. Based in Dubai, she works closely with global employers navigating change in today’s evolving workplace.

email Email

Contact us