Factors Influencing Early-Career Employer Loyalty among Undergraduate Students in the United Arab Emirates

Abstract

Employee retention in the United Arab Emirates is still a significant challenge for businesses. Despite this challenge, the expectations of the incoming workforce are largely overlooked. Drawing upon Social Exchange Theory, this study evaluates the expectations of undergraduates on what drives them to stay within an employer. Specifically, it focuses on how offering career growth opportunities, job security, workplace flexibility, support, and pay importance can foster employee loyalty before they enter the market. A purposive sample of 15 undergraduate students from various universities in the United Arab Emirates, aged between 18 and 25, were interviewed. The qualitative data collected from the interviews were analyzed by using thematic analysis. This study found that the main elements that drive undergraduate students to stay within an employer include career development and workplace support. It also found that the primary causes of the turnover of employees before they have spent any time working in an industry include rigid company structures and a lack of growth opportunities within these industries. Importantly, the participants defined an employer who can retain its employees as one who provides more than just transactional rewards but also those that provide emotional satisfaction. The study's conclusion is that employee retention in the UAE is driven by a sense of reciprocity between the employee and the employer. This reciprocity is fostered by treating concepts such as flexibility and career development as discretionary benefits to the employee. For companies in the United Arab Emirates, then, there is an imperative for them to shift their focus from creating a transactional relationship between themselves and their employees to one that fosters high-quality social exchanges.