DIFC Business BreakfastPress Release 22 Sep 2014 06:34 am
Safeguarding your End of Service Benefits
Dubai, U.A.E., September 22, 2014 - DIFC and SEI (NASDAQ: SEIC) hosted the launch of the second annual report published by SEI, titled "Employment Trends and Managing End of Service Benefits in the Middle East" with CFOs and HR executives from leading UAE and Multinational companies in attendance.
The report, which was published last week, focuses on the challenges HR and Finance departments are facing due to the strong growth in the regional economy and pressure that is placing on salaries and other employee costs. End of Service Benefit ("EoSB") is one of the largest cash payments made to an employee, yet it remains an under-utilised tool for retention, with almost 1 in 3 HR executives unaware of how their Companies manage their EoSB liability.
As with last year's findings, the report reveals that companies continue to pay greater attention to the EoSB liability accruing on their balance sheet, and are keen to explore alternative ways to align those funds to support increased retention objectives whilst offering competitive packages. Within this framework, SEI introduced attendees to the concept of Fiduciary Management, an approach that integrates strategic advice and investment implementation with the aim of managing assets against liabilities to achieve funding objectives. SEI is currently one of the largest global providers in this space with approximately 450 clients globally.
Raja Al Mazrouei, Head of Operations and Acting Head of Marketing & Corporate Communications of DIFC Authority, said:
"The DIFC attracts a highly skilled talent pool for not just Dubai, but the UAE. As such, it is in the best position to encourage discussions on best practices with regards to employee benefits, talent management and retention. EoSB impacts all businesses of all sizes and the DIFC prides itself on being a platform for numerous businesses, both local and multinational. The DIFC has a responsibility to encourage best practices for all corporate legalities, including EoSB."
Jahangir Aka, Managing Director of SEI's Middle East office, commented:
"This is a continuation of the vital dialogue on end-of-service benefits in the region. We are seeing employers, employees, and sponsors treating this subject with increased seriousness and, more importantly, scrutiny. CFOs and HR departments are focused on improving productivity of existing staff and looking to move away from traditional methods of reward to lower cost alternatives, and the EoSB liability is an under-utilised asset that is being explored."
The report is based on a survey conducted in May and June 2014, and was completed by 140 senior executives from local and international companies in the Middle East. Some of the survey participants are clients of SEI. To receive a copy of the report, please email [email protected].
The Dubai International Financial Centre (DIFC) is the financial hub for Middle East, Africa and South Asia, providing a world-class platform connecting this region's markets with the economies of Europe, Asia and the Americas. In addition to the 100 per cent foreign ownership, zero per cent tax rate, the lack of restriction on capital convertibility or profit repatriation, the Centre offers one of the world's most successful financial industry ecosystems including an independent regulator, the Dubai Financial Services Authority (DFSA), an independent judicial system with a common-law framework, the DIFC Courts, a global financial exchange, inspiring architecture, powerful and enabling infrastructure, support services and a vibrant business community.
SEI (NASDAQ:SEIC) is a leading global provider of investment processing, investment management, and investment operations solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of June 30, 2014, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $602 billion in mutual fund and pooled or separately managed assets, including $249 billion in assets under management and $353 billion in client assets under administration. For more information, visit www.seic.com.