The GCC Total Rewards Segmentation & AI 2025 Panel discussion brought together senior reward leaders to explore how organizations in the region are adapting to shifting business realities, demographic complexity, and the rise of AI. Hosted by Sandrine Bardot, the conversation included Pavithra Venkatesh, Global Head of Reward at DAR, Susan Cunning, Executive Director of People and Culture at Emil Wolf, and Enad Abu Naser, Reward Director at Vision Bank. Across one hour, the discussion moved from the fundamentals of workforce strategy in the Gulf to practical stories of segmentation, fairness, and the cautious but creative use of AI in total rewards. Each perspective underscored the complexity of leading in a region that balances tradition with rapid modernization, and cost pressures with the need to attract and retain specialized talent. Why the Gulf Remains a Magnet for Talent The conversation began with a recurring question in the region: why do organizations still create jobs in the Gulf when salaries are higher than in neighboring lower-cost countries? Sandrine Bardot explained that salary levels are only one factor in location decisions. “Employers are going to look at the variety of talent, the facility to attract talent in certain locations, and the region’s strong position as a distribution hub.” She highlighted the Gulf’s accessibility to markets across Africa, Asia, and Europe, and its stability compared to markets where regulatory changes or political risks can unsettle workforce planning. Pavithra Venkatesh reminded listeners that outsourcing has long been part of global operating models. “This model has always existed, and it will continue to exist, because it adds a lot of commercial value to any business.” Yet she cautioned that contextual understanding is irreplaceable in certain roles. “The reality of living in the place and then designing frameworks is very different from someone who is sitting outside.” Her point underscored the continued need for local expertise, especially in functions like rewards, where understanding cultural nuance and economic volatility is critical. The broader takeaway: cost is important, but sustainability, access to specialized skills, and contextual awareness keep the Gulf competitive as a talent destination. Equity: Asking the Right “Why” The experts also addressed equity as part of the reward mix. Susan Cunning framed the issue with a reminder: equity must start with purpose. “Think carefully first about why you’re doing it, before you think about how to do it. What you’re trying to achieve as a business matters most.” She explained how equity, once limited to senior executives, is now applied more broadly. It can be used to retain employees during mergers, to reward critical skills, or to strengthen commitment among high-potential national talent. “It is not just about the mix. It is about asking, what roles will this impact, and what problem are we solving?” Enad Abu Naser expanded the point: “We need to understand, do we need to retain existing employees, and who are they? Do we need to focus on high-level employees or all employees across all levels using different types of equity plans? And we need to look at the shareholders’ point of view. What is their appetite?” His emphasis placed equity not just as an HR tool, but as a strategic decision that intersects with ownership and long-term value creation. How GCC Companies Are Segmenting Total Rewards in 2025 watch panel Segmentation: Moving Beyond Demographics Segmentation was the central theme of the conversation. For decades, organizations in the GCC have segmented rewards based on nationality, marital status, job level, and hierarchy. The question was whether these factors remain relevant today. Enad argued for a shift toward personalization. “We need to focus on what matters most to our employees. Is it family, flexibility, development, career progression, financial stability, or health? Instead of having very rigid reward packages, you need to make it like a Spotify playlist. The employee could choose from there, based on what matters to them.” Susan acknowledged that segmentation is nothing new but questioned whether current models align with business priorities. “Segmentation has been around for a very long time, but it is based on nationality, hierarchy, and seniority. Are those the right things that we still want to segment on? What problem are we trying to solve? What business imperative are we driving?” She highlighted the importance of linking segmentation to employer branding and employee value propositions. Pavithra reinforced that context is critical. “Following the market blindly is not going to give you the result. Adaptation is key, and reviewing and ensuring that it still works for both employee and business is critical.” She illustrated the point with a personal reflection: “As a recent mother, one thing I always thought of was why should married people get a higher salary versus single people? The philosophy was very simple. Companies were uprooting families and needed to cover housing, visas, and schools. But is that rationale still relevant today? It depends on the company, the demographics, and the context.” Sandrine offered a practical way forward: think in terms of the employee life cycle. Organizations can anticipate key triggers, such as onboarding, promotions, marriages, births, relocations, retirement, and personalize communication and benefits around those moments. “You do not necessarily need to change your programs, but you can customize communication so that employees receive timely, relevant reminders.” Fairness and Transparency: Lessons from the Ground The conversation became particularly compelling when the experts shared real-world stories about fairness. Susan recalled discovering that some employees were receiving annual flight allowances while others, doing the same job, only received the benefit every two years. “It was fundamentally unfair, and people spoke up about it. We fixed it, but of course, that costs money. The lesson is that fairness matters as much as the value of the benefit itself.” Enad stressed that segmentation decisions must be explained. “We need to support it with narrative, storytelling, and communication. Otherwise, employees may see it as favoritism. Line managers should not be negotiators, but storytellers who can explain why rewards are designed the way they are.” Pavithra shared a cautionary story where efforts to standardize flight allowances created uproar among blue-collar workers. Although the intent was fairness, the decision triggered emotional backlash. “It caused chaos. We had to reverse it in one week, but the conversation went on for a year. The lesson is that not all decisions should be pursued in the name of fairness alone. You must weigh the cultural and emotional impact.” These examples revealed the fine balance leaders must strike between fairness, perception, and operational reality. AI in Rewards: A Smart Intern, Not a Replacement The final part of the conversation turned to AI. While AI is widely used in recruitment, its role in total rewards remains limited due to the sensitivity of pay data. Pavithra described AI as a helpful accelerator for tasks like job descriptions, communication drafts, and research. “It saves at least 30% of time when it is thinking, researching, and drafting kinds of tasks. But when it comes to Excel, it has always been a failure.” Enad explained how AI has helped with benchmarking and segmentation analysis. “It was super helpful in understanding new trends in employee benefits and how companies in certain industries retain people. But yes, Excel remains ours to master.” Susan called AI a “thought buddy.” She uses it for scenario planning, policy simplification, and manager training materials. But she emphasized the importance of data quality: “If what you put in is garbage, you are not going to get a good outcome.” Sandrine closed with a reminder that AI should be treated like a bright intern, capable and fast, but inexperienced and needing guidance. She pointed to practical tools like Google’s Notebook LM, which can turn HR policies into accessible FAQs or interactive resources for employees, reducing the need for manual FAQ-building. Before you go, check out part 1 of the conversation: Rethinking Total Rewards: Real Talk from GCC Total Rewards Leaders watch part one What Leaders Should Take Away The conversation provided rich lessons for HR and reward leaders in the GCC: Cost is only one part of the location strategy. Stability, access to skills, and context matter as much as salaries. Equity must start with purpose. Retention, skills, and shareholder appetite all define when and how to use it. Segmentation must evolve. From demographics to personalization, organizations must adapt to employee life stages and priorities. Fairness depends on communication. Policies must be explained and contextualized, not just standardized. AI is a tool, not a replacement. It accelerates qualitative tasks but is not yet ready for sensitive quantitative analysis. As Sandrine summarized, “Even when we all agree in a general direction, there is always a little bit of a difference between our points of view, and I think this is what makes the beauty of this work that we do in the reward space.” Ready to modernize rewards in your organization? Discover the Semos Cloud Total Rewards Hub today. Request demo Final Thoughts The GCC Total Rewards Segmentation & AI 2025 panel was more than a technical discussion. It was a masterclass in how experienced leaders balance fairness, personalization, and innovation in one of the world’s most dynamic regions. The conversation made clear that reward strategies cannot be copy-pasted from global playbooks. They must be adapted to context, supported by communication, and increasingly enabled by technology. For HR leaders ready to put these lessons into practice, the Semos Cloud Total Rewards Hub provides a centralized way to personalize, automate, and scale recognition and rewards in alignment with employee needs and business strategy. Related posts Effective Ways to Recognize Your Employees: A Comprehensive Guide read more Peer-to-Peer Recognition: Unlocking Culture, Performance, and Retention in the Modern Workplace read more Employee Engagement & Recognition: A Strategic Imperative for Enterprise HR Leaders read more
