Companies from Goldman Sachs Group to Havas are hoping the way to their employees’ hearts is through their stomachs as they try to lure staff back to the office.
At Goldman Sachs, free breakfast, lunch and ice-cream are part of the pitch to convince employees from London to Hong Kong and New York to leave the comfort of their homes, where some have worked since March 2020 when the Covid-19 pandemic took hold.
“Food is playing a much more central part in office life and businesses are using their food offers to try and influence behaviour,” said Robin Mills, UK and Ireland managing director at catering company Compass Group. “We are now fully part of these reopening conversations and part of this new world as companies think about how to get people to come back.”
After more than a year of empty offices and Zoom calls, pandemic restrictions are easing and businesses are trying to figure out how to manage in-office working plans. With uncertainty over whether Britain’s vaccination programme will contain the fast-spreading Delta variant, some workers do not want to return to the office at all.
Not five days a week, but certainly more often than not – without robbing them [employees] of the new-found freedoms discovered in lockdown
Xavier Rees,
chief executive, Havas London
Companies are treading a fine line, allowing flexibility while trying to fill expensive office space and reinvigorate their business culture.
Xavier Rees, chief executive of Havas London, said the media group is “demonstrably better when we are in the office” and the priority is to get people back when possible. “Not five days a week, but certainly more often than not – without robbing them of the new-found freedoms discovered in lockdown.”
Havas, a Compass client, is using food to that end, investing in its in-house kitchen, cafe and coffee shop, and allowing employees to make menu suggestions. Revamped and heavily subsidised options include healthier meals on “Wellness Wednesdays” and menus inspired by cultural events, holidays and global cuisines. It will offer free lunches on Mondays and Fridays throughout August.
“We’ve prioritised the kind of amenities that make being in an office attractive – and food is a really important part of that,” Mr Rees said. “This isn’t new – it was a huge selling point before the pandemic – but this kind of thing has become even more important as we begin to encourage people back into the office.”
Janus Henderson Group, which offered heavily subsidised three-course meals for just a few pounds at its City of London office before the pandemic, is now providing all food free. The asset management group, which has set a general guidance of spending two days a week in the office, “can’t say what our exact future working model will be, but we want to retain the best of office-based and remote working”, a spokesman said.
Workspace Group, which provides flexible office space across central and suburban London, is upgrading on-site cafes to keep a “social buzz” throughout its buildings.
“With more businesses returning to the office, our cafes are becoming increasingly important,” said Will Abbot, the company's chief customer officer.
Farther afield, Amazon.com has funded more than 100,000 cups of coffee for employees in its North American hubs, but the surge of the Delta variant prompted the online company to tell employees on Thursday that they will not have to return to the office regularly until January.
We can’t say what our exact future working model will be, but we want to retain the best of office-based and remote working
Janus Henderson Group
Some businesses are using food to help manage other objectives – such as equalising attendance during the five days of the week or catering to changing work patterns, according to Compass.
For example, some are beefing up food choices on Mondays and Fridays, when fewer people come in to the office. Others provide more “twilight food” options between 6pm and 9pm to accommodate those who come in fewer days a week but work longer hours when they do.
Some businesses, more cautious about encouraging a wholesale return while Covid-19 remains a threat, are introducing app ordering and “hot lockers” so food can be delivered to employees to limit social mixing in canteens.
But not everyone is thinking about food perks. Fintech Revolut, which moved to permanent flexible work, is not pushing for a wholesale return anytime soon and is repurposing its Canary Wharf office into collaboration spaces. Microsoft said some employees could potentially work from home for ever, while Adobe said coming into the office remains “entirely voluntary at this time”.
In a quarterly update last month, Compass said revenue from business and industry is only at about 60 per cent of 2019 levels given the slow pace of office returns. It expects total revenue to hit 80 per cent of 2019 levels by the end of its fiscal year, helped in part by workers making their way back to offices.
“We are finding that employers are keen to get back to work,” Mr Mills said. “We expect a positive blip in September when schools return, before a more normal return to business by the end of the year.”
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The%20Super%20Mario%20Bros%20Movie
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The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
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Power 280hp @ 6,200rpm
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Fuel economy, combined 11.7L / 100km
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
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Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Profile Periscope Media
Founder: Smeetha Ghosh, one co-founder (anonymous)
Launch year: 2020
Employees: four – plans to add another 10 by July 2021
Financing stage: $250,000 bootstrap funding, approaching VC firms this year
Investors: Co-founders
Brief scoreline:
Wales 1
James 5'
Slovakia 0
Man of the Match: Dan James (Wales)
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Diriyah%20project%20at%20a%20glance
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Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Company%20profile
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Meydan card
6.30pm: Al Maktoum Challenge Round-1 (PA) Group 1 US$65,000 (Dirt) 1,600m
7.05pm: Conditions (TB) $100,000 (Turf) 1,400m
7.40pm: UAE 2000 Guineas Trial (TB) $100,000 (D) 1,600m
8.15pm: Handicap (TB) $175,000 (T) 1,200m
8.50pm: Al Maktoum Challenge Round-1 (TB) Group 2 $350,000 (D) 1,600m
9.25pm: Handicap (TB) $175,000 (D) 1,900m
10pm: Handicap (TB) $135,000 (T) 1,600m
SCORES
Yorkshire Vikings 144-1 in 12.5 overs
(Tom Kohler 72 not out, Harry Broook 42 not out)
bt Hobart Hurricanes 140-7 in 20 overs
(Caleb Jewell 38, Sean Willis 35, Karl Carver 2-29, Josh Shaw 2-39)
Famous left-handers
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
KILLING OF QASSEM SULEIMANI
BMW%20M4%20Competition
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The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Last-16
France 4
Griezmann (13' pen), Pavard (57'), Mbappe (64', 68')
Argentina 3
Di Maria (41'), Mercado (48'), Aguero (90 3')
OIL PLEDGE
At the start of Russia's invasion, IEA member countries held 1.5 billion barrels in public reserves and about 575 million barrels under obligations with industry, according to the agency's website. The two collective actions of the IEA this year of 62.7 million barrels, which was agreed on March 1, and this week's 120 million barrels amount to 9 per cent of total emergency reserves, it added.