In the first article, we discussed how the financial sector in the GCC is at a pivotal moment, facing intensified competition from FinTechs and Neobanks that prioritise redefining the customer experience and offering unique employee experiences (EX). These disruptors leverage flexible working arrangements, innovative cultures, career development opportunities and modern workplaces to attract top talent. This poses a challenge for traditional banks constrained by legacy systems and hierarchical structures.
The shifting expectations of the workforce, particularly Millennials and Gen Z, further emphasise the importance of EX, with employees increasingly valuing purpose-driven organisations, personalised growth opportunities and wellbeing support.
In this second part of our series, we delve into the strategic importance of employee experience (EX) in the GCC financial sector and its profound impact on talent retention, engagement and organisational success. Building on the challenges highlighted earlier, we explore why prioritising EX is no longer optional for GCC banks as they navigate rising attrition rates, competitive talent markets and the ongoing disruption caused by technology firms.
By addressing key issues such as career progression, work-life balance and organisational purpose, EX strategies can build stronger connections between employees and their employers.
We also explore the link between EX and productivity, illustrating how a motivated workforce drives digital transformation and business growth. This part aims to provide HR and leadership teams with actionable insights to integrate EX into their organisational priorities and adapt effectively to the rapidly evolving financial landscape.
Attrition rates in the financial sector are rising. This is a trend we have observed over the last 3 to 5 years. Though, in the recent WTW global high-performance data, 90% of companies who have a strong and clear EX reported a lower annual undesired turnover than industry peers illustrating the clear benefits of having a structured EX strategy in place. Improving EX can address these issues by:
WTW’s research shows that companies with highly engaged and high-performance employee experience achieve a competitive advantage of up to 3 times higher revenue growth and 11 times increase in profit margin. In a competitive sector, GCC banks need a motivated workforce to:
Technology firms are setting new benchmarks for employee experience. GCC banks that fail to prioritise EX risk losing top talent to these competitors. A strong employer brand can be built by:
M&A deals often result in employee uncertainty with research indicating that up to 50% of talent exits within the 1st year post-merger (newlevelwork.com). In the financial sector where talent is generally considered to be a key differentiator, overlooking EX during a M&A integration can cause a drop in productivity and cultural misalignment. A strong EX strategy, including transparent communication, recognition programs and employee-centric benefits, has been shown to reduce turnover significantly and improve engagement.
As competition for talent intensifies, FS firms must recognise EX as a key element for retaining their most valuable asset, while ensuring a smooth cultural integration to achieve the anticipated synergies. Prioritising EX helps institutions not only to protect employees but also to speed up the operational and financial success of a M&A deal.
Read the previous article in the series: The shifting talent landscape and increased competition in the GCC.
