UAE: Some firms use savings scheme to make employees 'millionaires' in as little as 5 years

Some UAE companies are trying to retain the best talents and offering to make them 'millionaires' through savings schemes. In addition to companies, individuals are also investing for their children and wives to make them millionaires in 5 to 7 years through saving programmes such as National Bonds' "My One Million" scheme.

To meet the residents' ambitions to become millionaires, the saving and investment firm National Bonds rolled out the "My One Million" plan in October last year. Under the scheme, both employer and employee contribute certain monthly amounts to the scheme. The profit earned during the period is also reinvested, allowing employees to reach the Dh1 million milestone faster.

Mohammed Qasim Al Ali, Group CEO of National Bonds, said many people place money with the company, which showed a desire to win its millionaire draw.

"So we wanted to pay by sure way to get their millions. By saving every month with us, they can reach Dh1 million in 5-7 years, depending on how much they can spare every month. Earned profit is reinvested back into the savings, so that becomes a much faster way to reach Dh1 million."

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Citing an example, he said a company has agreed to join the "My One Million" plan whereby employees will contribute Dh7,500, and the employer will also pay the same amount. "There is another company contributing Dh10,000 and the remaining amount every month is contributed by employees to reach Dh1 million in 5 years, so all of its senior staff will be millionaires in five years. They're using this product to retain the talent," he said.

Al Ali added that most of the companies that have opted for this scheme are medium-sized companies that value the importance of talent to maintain the company's growth.

Recruitment experts say that companies within the UAE and neighbouring countries are poaching local talent amidst a growing war for talent.

Andrew El Zein, principal for careers in the Mena region at Mercer, said local entities are facing increased competition within the country and companies from other neighbouring countries who are trying to attract and poach the talent.

He said there are a lot of queries about different types of long-term and short-term incentives and other forms of talent plans to retain talent that are critical for companies.

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