Gulf employers responding to accelerating shifts in talent and workforce dynamics
In a shifting labor market, employers in the Gulf are increasingly focusing on talent policies, maximizing human capital, and boosting the operational efficiency of their HR function. That is according to a new report from Procapita Group, which explores the top trends and practices across the region’s HR landscape.
Average employee growth was at 19.6% across the GCC last year, up from 15.2% in 2024, a shift that reflects a surge in business confidence and a continued push toward economic diversification. Projections for 2026 suggest this momentum will continue, with employee growth expected to reach 24% as regional investments in technology and infrastructure accelerate.
Indian nationals represented the largest share of job seekers across the GCC at 35% of the total. Meanwhile, the share of job seekers with bachelors, masters, and associate degrees declined as the region transitioned toward advanced specialization, resulting in a rising demand for PhD holders.
Employees in the consulting sector were the most engaged of any sector in 2025, with an engagement rate of 83.7%. Following closely behind are real estate and food and beverage, which have replaced financial services as the runners-up, with just under 80% of employees saying they feel engaged.
Employees in high-performing sectors often highlight the value they find in their work, the opportunities for growth, and the strong connection they feel to their organization’s purpose. In the consulting sector, individuals are engaged by the opportunity to tackle complex problems at different clients, while benefiting from a structured career advancement path.
Positive shifts in salaries and recruitment
According to Procapita Group’s report, many employers saw their corporate revenues grow at a faster rate than base wage expenditures, highlighted by a 34.4% year-over-year decrease in fixed salary versus revenue.
While this points to improved stronger commercial performance and productivity, the talent market remains complex – the average employee turnover in the GCC increased from 8% in 2024 to 13% in 2025. This rise underscores intensifying competition for talent, with the tourism and hospitality sector leading turnover at 15.9%.
The recruitment landscape in the GCC has undergone a similarly dramatic transformation, characterized by a sharp increase in competition and efficiency. The average number of applicants per vacancy surged by 80.3% in 2025, reaching an average of 321 candidates. Despite this surge, the time required to complete the hiring process dropped to 47 days.
According to the survey, salary and benefits remain the top priority for 59.9% of candidates before they accept a job offer. However, job responsibilities and expectations are also critical, cited by 36.6% of professionals. Attracting talent, therefore, depends on a combination of competitive compensation and clear role design plus culture.
Well-being and sustainability
Parallel to these operational changes is a maturing approach to employee experience and well-being. Hybrid and remote work models continue to shape employee satisfaction, with employee satisfaction rates found to be the highest among people who can use hybrid arrangements. Around two thirds of the organizations assessed (65%) now have flexible work structures in place.
Furthermore, organizations are emphasizing non-monetary benefits, recording a 6.1% annual increase in investments toward well-being and more sustainable workplace practices.
Outlook
Looking toward 2026, the outlook for the regional business environment remains one of optimism. Average employee growth in the GCC increased to 19.6% in 2025 and is projected to rise to 24% by 2026. This expansion is driven by renewed business confidence and economic diversification strategies supported by continued investments in technology and infrastructure.
As market conditions continue to shift, the focus for organizations will remain on balancing the need for highly skilled technical talent with the requirements of nationalization. While 88% of organizations faced skill shortages in 2025, most are responding by upskilling and reskilling their existing staff to maintain the agility necessary to navigate an evolving economy.
