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Majority of employees consider quitting over lack of flexibility


Deepthi Nair
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  • Arabic

RELATED: UAE salary guide 2022: how much should you be earning?

Seventy per cent of professionals in the UAE and Saudi Arabia have considered leaving or have left their jobs because of a lack of flexibility amid a widening disconnect between employers and employees about returning to the office after the Covid-19 pandemic, according to LinkedIn.

Dubbed “flexidus”, the finding comes despite 97 per cent of hiring managers in the UAE and Saudi Arabia saying their companies had improved working policies since the pandemic to offer greater flexibility to employees, according to the professional services network, which surveyed 504 hiring managers and 1,006 employees in the region between January 21 and 31.

“The impact of the pandemic on how we work has been transformative and research globally is pointing to an increased urgency for greater flexibility and empowerment in the workplace,” Ali Matar, head of LinkedIn Mena and EMEA venture markets, said.

“We have all seen presenteeism take a back seat in favour of quality talent and work, and we believe the new world of work carries that legacy forward, helping us create an inclusive welcoming work experience for all professionals.”

Globally, employees are leaving their jobs at much higher rates than normal. About 42 per cent of remote workers said if their company does not continue to offer options to work from home in the long term, they will look for a job that does, according to a March 2021 survey by financial services company Prudential.

This signals that a “war for talent” may be looming if companies do not address workers’ needs, the survey, which polled 2,000 adults working full-time, found.

There is still a growing disconnect between what companies are offering and what employees want, the findings showed. While about 74 per cent of professionals in the UAE and Saudi Arabia think the pandemic has exposed how employers need to change their approach to flexible working, 55 per cent of workers said their company had not introduced flexible working policies, LinkedIn found.

About 74 per cent of employees surveyed said flexible start and finish times is the most useful policy, while 74 per cent cited an increase in annual leave and 72 per cent opted for a four-day working week, determined by the employer, according to LinkedIn.

The lack of flexibility at work had a significant impact on women’s careers, the research showed. Among female employees who had to quit their jobs because of the lack of flexible working conditions, 20 per cent said their career progression has been held back, while 22 per cent said they will only consider roles that have robust flexible working policies, the LinkedIn report said.

About 56 per cent of professionals in the region also said they plan to take a career break in the near future, it said.

Furthermore, 18 per cent of women surveyed feel there is a stigma attached to flexible working and 24 per cent have hidden their flexible working from colleagues, clients or friends, according to LinkedIn.

About 37 per cent of women surveyed said the ability to work more flexibly would improve their mental health and 32 per cent said it would help them thrive at the workplace, the report added.

Meanwhile, 78 per cent of companies in the UAE and Saudi Arabia said they are now more open to hiring a professional returning from a career break, but 47 per cent said they would be wary of applicants who were not upfront about their break, the LinkedIn survey found.

We have been given an incredible opportunity to re-shape the world of work and it’s critical we remember to keep people at the heart of it to truly build ‘work that works’ for everyone,” said LinkedIn's Mr Matar.

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Saudi Arabia Salary Guide 2022 — in pictures

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GIANT REVIEW

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: May 19, 2022, 9:42 AM