Do you store all your files on iCloud, communicate solely via Gmail and command thousands of followers on Twitter?
If so, beware: you are in danger of being overtaken in the workplace by savvy young “millennials” who are embracing the next generation of technology.
It sounds counter-intuitive. But even those at the vanguard of the tech revolution today stand to be the Luddites of tomorrow, employment experts say.
A recent study by the software firm SAP and Oxford Economics warned of a looming “talent crisis” in the UAE – with the majority of workers saying their employers do not provide adequate training in technology.
Just 24 per cent of UAE employees expect to be proficient in cloud technology by 2017, the report found. Most respondents also said they would be unprepared in the fields of data analytics, mobile technology and social media.
Even those who use cloud and social media platforms are in danger of falling behind, says Nelly Boustany, the head of human resources at SAP in the Middle East and North Africa.
“Employees need to be familiar with using cloud, analytics, mobile technology,” she says. “If they have an iCloud account or are using Facebook and Twitter that’s a good start ... But it goes beyond these basic uses.”
Just 17 per cent of UAE employees say they have access to the latest technology at work, according to the study, part of the Workforce 2020 report that surveyed 5,400 executives worldwide.
With more than half of the UAE employees questioned saying that training programmes are important to their career, the report called on businesses to close the widening skills gap.
“Companies do not invest as much as is needed in order to prepare for the skills [required in] the future,” says Ms Boustany. “If they don’t, they will lose their edge.”
The need to boost skills in cloud, data analytics, mobile and social media is obviously greater for those in technology-related roles, she adds.
But even workers in cafes and restaurants, for example, need to brush up on these skills, she points out: “If you look at the way some of the orders are being taken today, they are taken on a tablet and the order goes to the kitchen in real time. The scale depends on what company you are talking about. But if you look at it in a broader spectrum, I think it touches everyone.”
The need for employers to boost training in technology is common worldwide, Ms Boustany says, adding that UAE companies risk losing their edge if they do not cater for the so-called “millennials” – those born in the 1980s or later – entering the workforce.
“These are high-technology savvy employees who were born in the digital age, who are very social, very collaborative. They were born with iPhones, mobile phones and technology in their hands,” she says.
The report found that 27 per cent of managers in the UAE are worried that millennials may quit their jobs because of lack of development opportunities.
“For the companies to make the best out of the upcoming workforce, they need to prepare the ground in order for these employees to be engaged,” says Ms Boustany.
Despite gloomy warnings about a looming talent crisis, employment experts were sanguine about the ability of UAE employees to meet the technological challenges ahead.
Rabea Ataya, chief executive of the recruitment site Bayt.com, says the UAE jobs market attracts “world class talent”, in areas such as cloud computing and social marketing.
“We are not worried about a talent crisis in any field in the UAE,” he says. “The UAE has become a magnet for global best-of-breed talent in all sectors.”
Panos Manolopoulos, the managing partner of the executive search firm Stanton Chase in the Middle East, believes it is an exaggeration to say there is a talent crisis on the horizon.
“In regard to the middle management and the lower positions, I think that the study does exaggerate a little bit,” he says.
Despite this, he says many UAE companies probably need to invest more in training staff in new technologies.
With more millennials entering the workplace, it is now more important than ever that older employees keep up with tech trends, Mr Manolopoulos adds.
“An executive will become obsolete within a few years if he doesn’t follow up the new technologies,” he says. “Personally, if I don’t follow religiously the new technologies and changes that are happening, I feel I’m falling behind.”
business@thenational.ae
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
The biog
Siblings: five brothers and one sister
Education: Bachelors in Political Science at the University of Minnesota
Interests: Swimming, tennis and the gym
Favourite place: UAE
Favourite packet food on the trip: pasta primavera
What he did to pass the time during the trip: listen to audio books
CREW
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Napoleon
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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 Cairo Statement
1: Commit to countering all types of terrorism and extremism in all their manifestations
2: Denounce violence and the rhetoric of hatred
3: Adhere to the full compliance with the Riyadh accord of 2014 and the subsequent meeting and executive procedures approved in 2014 by the GCC
4: Comply with all recommendations of the Summit between the US and Muslim countries held in May 2017 in Saudi Arabia.
5: Refrain from interfering in the internal affairs of countries and of supporting rogue entities.
6: Carry out the responsibility of all the countries with the international community to counter all manifestations of extremism and terrorism that threaten international peace and security
Last 10 NBA champions
2017: Golden State bt Cleveland 4-1
2016: Cleveland bt Golden State 4-3
2015: Golden State bt Cleveland 4-2
2014: San Antonio bt Miami 4-1
2013: Miami bt San Antonio 4-3
2012: Miami bt Oklahoma City 4-1
2011: Dallas bt Miami 4-2
2010: Los Angeles Lakers bt Boston 4-3
2009: Los Angeles Lakers bt Orlando 4-1
2008: Boston bt Los Angeles Lakers 4-2
A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.
Five expert hiking tips
- Always check the weather forecast before setting off
- Make sure you have plenty of water
- Set off early to avoid sudden weather changes in the afternoon
- Wear appropriate clothing and footwear
- Take your litter home with you