Energy, Oil & Gas

24pc drop in thriving employees across Mideast energy sector, Marsh study finds

24pc drop in thriving employees across Mideast energy sector, Marsh study finds
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Employee well-being is emerging as a critical business resilience and workforce retention issue for the Middle East energy, engineering and resources (ENR) sector, with new analysis from Marsh revealing a 24 per cent decline over two years in employees reporting that they are thriving.

The findings come amid growing workforce pressures linked to market volatility, geopolitical uncertainty, the energy transition, technological disruption and rising living costs.

The research also highlights broader retention challenges, with 31 per cent of employees surveyed across the Middle East planning to leave their jobs within the next 12 months.

According to Marsh, ENR employees are 6 per cent less satisfied with their physical work environment than employees in other Middle Eastern industries and are 6 per cent less likely to recommend their employer.

The findings underscore the relationship between employee well-being, engagement and organisational performance, particularly in a sector where workforce concentration, safety and decision-making are essential to operations.

Mercer's 2026 Global Talent Trends report found that 54 per cent of human resources leaders in the Middle East are prioritising stress reduction, while 44 per cent of employees are concerned about the sustainability of their workloads.

The pressures affect both site-based and office-based employees, although their experiences differ.

Workers in remote and offshore locations may face isolation, fatigue, family separation and limited access to support networks, while corporate employees may experience reduced productivity, collaboration, innovation and decision-making quality.

Marsh said organisations should move beyond treating well-being as an employee benefit and instead recognise it as a measurable factor in operational resilience, safety and performance.

Continuous employee feedback

The analysis recommends that employers adopt continuous employee listening rather than relying solely on annual engagement surveys to identify workforce concerns.

Employee sentiment can change rapidly in response to regional developments and workplace pressures.

Traditional surveys may take months to capture emerging concerns, with further delays before findings reach decision-makers, potentially allowing problems to affect retention, productivity and engagement.

Continuous feedback mechanisms, including pulse surveys, manager check-ins, focus groups and digital feedback platforms, can help employers identify emerging risks and respond before they affect business outcomes.

Marsh's recent HR Readiness Spot Poll found that 100 per cent of the ENR organisations surveyed had activated employee assistance programmes and other non-monetary benefits to support workers during the conflict as of April.

Some organisations had also introduced temporary changes to remote and international remote-working policies.

However, Marsh emphasised that employers need to ensure their decisions are informed by employee feedback rather than assumptions, adding that meaningful action on concerns is essential to maintaining trust.

Employee expectations are changing

The study also highlights the need for energy companies to review their employee value propositions (EVPs), which have traditionally focused on competitive salaries, career progression, global mobility and job security.

While Middle Eastern ENR employees are 7 per cent more likely than workers in other sectors to believe they can achieve their long-term career ambitions, expectations around flexibility, mental health support, leadership and recognition are evolving.

Globally, ENR employees said they would be willing to give up 10 per cent of their pay for benefits including better medical coverage, opportunities to develop artificial intelligence and digital skills, higher employer contributions to retirement savings, inspiring managers and greater flexibility.

Meanwhile, 74 per cent of HR leaders in the Middle East's ENR sector ranked improving the employee experience and EVP as their top priority.

Generational differences also influence workplace expectations. The analysis found that 44 per cent of Generation Z employees expressed concerns about their mental and emotional health, compared with 25 per cent of Baby Boomers. Younger employees and Millennials also place greater value on flexible working arrangements, while older workers increasingly prioritise healthcare access and retirement planning.

Marsh said employers should continuously assess these differing needs to ensure workplace policies remain relevant.

The analysis concludes that organisations navigating geopolitical uncertainty, technological change and the energy transition must invest in employee well-being, engagement and tailored workplace policies to strengthen resilience and retain talent.

By listening consistently and responding to changing workforce priorities, energy companies can improve employee trust, support operational performance and build a more sustainable competitive advantage. -OGN/TradeArabia News Service