UAE Employers Lead in Health Benefits Offering, But Employee Support Falls Short, Cigna Healthcare Study Reveals

• 98% of UAE employees recognize the value of health programs, yet only 70% feel supported, revealing a critical communication gap.
• International health insurance tops UAE's EVP rankings, outpacing global trends, but faces underutilization and implementation challenges.

Dubai, UAE – 29 August 2024: A new Cigna Healthcare study reveals a significant disconnect between employer intentions and employee perceptions regarding health and well-being benefits in the UAE. While HR leaders rank international health insurance as the most preferred employee value proposition (EVP) for boosting productivity and attracting talent, only 7 in 10 employees believe their employers proactively support their health and well-being.

The report, titled Harnessing Health – Measuring the Impact of Employee Health and Well-being Benefits, is based on a survey of 1000 managers and directors in HR and Benefits functions in the UAE, Hong Kong, Singapore, UK and US.

A compelling 98% of UAE employees agree that a robust health and well-being program significantly boosts productivity and creates a more positive workplace. Reflecting this sentiment, the study reveals that UAE companies offer more health benefits than their global counterparts, underscoring the emphasis HR leaders place on employee well-being. However, despite these efforts, many benefits remain underutilized, indicating a critical need for improved access and awareness among employees.

Leah Cotterill, CEO of Cigna Healthcare Middle East and Africa (outside KSA), said, “Our survey results clearly demonstrate that health and well-being benefits are powerful drivers of workplace performance and talent attraction. While it's promising to see that UAE companies are offering more health benefits than their global counterparts, there's still work to be done in bridging the gap between availability and utilization. To truly maximize the potential of these benefits, employers need to adopt a more strategic approach. This means not only offering comprehensive packages, but ensuring they're well-communicated, easily accessible, and aligned with local cultural values. This is crucial for fostering a healthier, more satisfied, and ultimately more productive workforce, giving businesses a competitive edge in today's global market.”

Key findings in the UAE include:

• Strong Preference for Health Benefits: International health insurance is not only a key part of the EVP but also the most favored by employees, ranking higher locally compared to its fifth place globally. This preference is also shared equally with flexible time off and working arrangements. The UAE presents more companies offering health benefits than the global average.
• Employer Priorities: Employee health and well-being are top priorities for HR leaders, on par with succession planning and leadership development (15%). Over half of these leaders believe that robust health insurance plans promote a positive company culture and enhance employee loyalty while effectively reducing absenteeism. UAE employee rankings are amongst the highest in being proactively supported and valued for their health and wellbeing.
• Gap in Benefit Utilization: Despite the widespread availability of health benefits —offered by 93% of companies— there remains a significant underutilization issue, with preventive health tools being the least utilized. This points to a potential gap in how these benefits are communicated and understood by employees which could be a result of insufficient awareness, cultural resistance, or limitations in support.
• Impact on Business Outcomes: More than half of HR leaders acknowledge the positive impact of health benefits on key business metrics, particularly employee loyalty and fostering a good company culture. While they see health insurance as beneficial in reducing absenteeism, their confidence wanes when it comes to its effectiveness in decreasing turnover, suggesting a need for targeted strategies to address specific local challenges.
• Mental Health Support: There is still a gap in mental health support, as it is the least offered benefit in the UAE (48%) among all markets surveyed. Additionally, only 7 in 10 employees in the UAE feel that their employers proactively support their health and well-being.
• Health and Well Being: 98% of employees in UAE agree that robust health and well-being program leads to better productivity and more positive work environment overall.