Eighty per cent of employees in Saudi Arabia are willing to switch jobs for better pay, marking a 25 per cent increase from the previous year, as the Kingdom’s Vision 2030 initiative transforms the labour market, a new report finds.
The Workforce 2025 survey, conducted by Korn Ferry across 10 global markets, included responses from 513 professionals and leaders in Saudi Arabia.
“As Saudi Arabia advances its Vision 2030 ambitions, the workforce is undergoing a remarkable transformation. At the heart of this change is talent—diverse, dynamic, and increasingly driven by purpose, opportunity, and innovation. This report captures key trends shaping our labour market, from evolving compensation expectations to the rise of AI and multi-generational workplaces. To stay ahead, organisations must rethink how they attract, retain, and engage talent in a region that is rapidly becoming more competitive,” Jonathan Holmes, managing director at Korn Ferry Middle East, Africa and Turkey.
Generational gaps in Saudi workplaces
The findings highlight tensions between generations, rapid AI adoption, compensation challenges, and trust issues in leadership, and also reveals perception gaps between generations in Saudi workplaces.
Whilst 73 per cent of Generation Z workers say they need better communication and teamwork training, only 39 per cent of Generation X believe there is a problem.
“Around 45 per cent of Gen Z surveyed in Saudi Arabia feel they’re overlooked for training opportunities because of their age, while 41 per cent believe they’re passed up for senior positions due to age as well,” the report states.
The workforce is becoming increasingly multigenerational, with six generations expected to work together by 2033 as nearly a third of people over 70 continue working whilst Generation Alpha begins entering junior roles.
Government drives Saudi AI adoption
Saudi Arabia emerges as one of the most AI-ready workforces globally, with government employees leading adoption rates. The survey found 90 per cent of government workers receive AI training, significantly higher than other industries.
The launch of SADIA (Saudi Data and Artificial Intelligence Authority) demonstrates the Kingdom’s commitment to AI integration through training, research, and partnerships.
This aligns with the National Strategy for Data and AI, which aims to rank Saudi Arabia among the top AI-driven economies by 2030.
However, AI training adequacy varies significantly across sectors, with technology, construction, and consumer goods industries showing lower adoption rates compared to government and financial services.
Despite employee willingness to leave for better compensation, companies provided an average salary increase of just 4.9 per cent in 2024, according to a separate Korn Ferry survey of 920 companies.
Top reasons employees leave jobs
The top reasons employees would leave their current jobs include inadequate employee benefits, poor pay and compensation, organisational reputation, the work itself, and employer’s respect for personal priorities outside work.
“Employees are facing increased costs of living, especially in housing and children’s education. However, salaries haven’t kept pace with these rising expenses, and, as a result, benefits and pay has become the leading reason for leaving companies,” Vijay Gandhi, Regional Director—Europe, Middle East, and Africa (EMEA) for Korn Ferry Digital said.
Labour force participation reached 66.6 per cent in Q3 2024, according to GASTAT data, with three out of five professionals believing they could easily find a new role if they left their current position.
The survey found that 83 per cent of respondents consider flexible working arrangements critical, suggesting that compensation alone may not retain talent.
The research reveals that 42 per cent of employees in Saudi Arabia do not feel comfortable sharing personal issues that affect their work with their managers, indicating a lack of psychological safety in workplaces.
Conversely, four out of five surveyed workers said they would stay in a job because they have a manager they trust, highlighting the importance of leadership quality in retention.
Jonathan Holmes, Managing Director at Korn Ferry Middle East, Africa and Turkey, commented: “As Saudi Arabia advances its Vision 2030 ambitions, the workforce is undergoing a remarkable transformation. At the heart of this change is talent—diverse, dynamic, and increasingly driven by purpose, opportunity, and innovation.”
The survey methodology involved more than 15,000 professionals worldwide across entry-level positions to CEOs in the US, UK, France, Germany, Brazil, UAE, Saudi Arabia, Australia, Japan, and India.
The findings suggest organisations must adapt their strategies for attracting, retaining, and engaging talent in an increasingly competitive regional market, particularly as Vision 2030 continues to drive economic transformation and job growth.
