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Absesnse of Pension System UAE (Part 5)

Posted by Talha Ahmed in: Education

Conceptual Framework

A framework is quite necessary for the development of a research proposal and it also identifies the right methods that are required for completing a proper research. Federal pension system is a necessary benefit which must be present in the country as it is present in other countries around the world. A framework can be designed to formulate a research and select the best parameters for solving key issues (Leedy & Ormrod, 2005). The research uses common methods such as surveys and newspaper reports to evaluate the situation of pension and expatriates in the country. The basic theory of the problem here is that pension systems are available everywhere around the world. UAE is a prospering country but it does not have a proper pension system. This has adverse effects on the retention and motivation of employees in the field. The example is of BTN Company which has lost more employees than those that have joined up.

2.4. Working Theory

Pension refers to a monetary fund that is given to a person after completing a term of service at an organization. It is one of the main monetary methods available in old age to people who retire after offering their services to their employers. Pension is slightly different from job benefit or severance pay because it is usually given on a continuous basis periodically while other methods provide one time money. Governments around the world ensure that there are labour laws in place which govern different aspects of pension as how the money is generated and then distributed to old and retired employees. There are many pension schemes available around the world and it is therefore hard to understand that the concept of a regular governmental pension scheme is not present in United Arab Emirates. The absence of a regular pension program has caused many issues in the country and it is generally attributed to cause the loss of foreign workforce in a longer time period.

BTN Company can be presented as a typical example of a company which suffers from the lack of a pension program. The company suffers to maintain its size and finds it very hard to grow due to the lack of employee motivation as well as expat retention. The study stresses and finds the fact that a government based federal pension scheme is necessary for retaining expatriate employees in UAE and it is almost the major reason why people switch jobs over a shorter period of time in UAE.

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