On-demand offices are to be in vogue in the Middle East as companies adopt hybrid work models post the pandemic. Bloomberg
On-demand offices are to be in vogue in the Middle East as companies adopt hybrid work models post the pandemic. Bloomberg
On-demand offices are to be in vogue in the Middle East as companies adopt hybrid work models post the pandemic. Bloomberg
On-demand offices are to be in vogue in the Middle East as companies adopt hybrid work models post the pandemic. Bloomberg


The success of hybrid work hinges on employees' psychological safety


Mark Mortensen
Amy C Edmondson
  • English
  • Arabic

July 28, 2021

People managers have their work cut out for them.

Before the pandemic, it was already difficult for managers across the world to foster enough trust in their employees so that they would speak up if something was amiss at work. Psychological safety, which rests on the belief that no harm will come to anyone who expresses a candid opinion, can even be hard to come by in an operating room or an airplane cockpit, where it can make the difference between life and death.

Aside from ensuring high-quality decision making, psychological safety has been shown to promote healthy group dynamics and interpersonal relationships. It also plays a key role in innovation and team effectiveness. At this juncture, psychological safety can provide an extra benefit: helping managers navigate the complexity of the new arrangements of hybrid work brought about by the pandemic.

While many offices are now re-opening, employees may have various reasons to maintain a certain amount of time working from home. Some may need to help a child struggling at school or to spend time with an ailing parent. For some others, undisclosed personal health issues may underpin a reluctance to return to the office. These are frequently acknowledged reasons why some favour working from home, but we have found a wide range of reasons employees have for not wanting to return to the office soon. Unfortunately, many feel unable to voice their concerns.

The shift to hybrid work means that managers’ challenges are not about to end

It is not just employees who feel skittish about sharing their issues. Managers have for the most part long steered clear of conversations that felt perhaps too personal or just off-limits (including for legal reasons). Since the pandemic, however, many managers have found that they have had no choice but to broach topics like childcare, health-risk comfort levels and various personal or familial challenges, because more work is being carried out at home.

The ongoing shift to hybrid work means that managers’ scheduling and co-ordination challenges are not about to end. To overcome these challenges, they will need better information. That said, the solution won’t be to demand greater disclosure of personal details. Instead, managers will have to create an environment that encourages employees to share aspects of their personal situations as it pertains to work scheduling. Or else – or perhaps at the same time – they will have to trust employees to make the right choices for themselves and their families, while taking into account business imperatives.

Psychological safety takes time to build but moments to destroy. People will fail to share even their most relevant thoughts at work if they sense there is any risk. Getty
Psychological safety takes time to build but moments to destroy. People will fail to share even their most relevant thoughts at work if they sense there is any risk. Getty

In short, managers now face the delicate task of expanding the range of work-life issues that are safe to raise. Obviously, it will take more than a few magic words such as “just trust me” for employees to feel safe. We recommend a series of steps to nurture a culture of psychological safety – not only about work, but about personal matters as well. These could help employees and managers find better solutions:

Frame the situation as a joint challenge. First, you must help your team recognise that managing this new hybrid workplace situation is challenging for everyone involved. Promote shared ownership of the problem through a discussion.

Explain that the various “whys” of work – satisfying customers, aligning with the mission, planning career progression – matter just as much as before the pandemic, but the “how” may change. Invite employees to play a creative and responsible role in managing that change. As a group, everyone must agree to be clear and transparent about their job requirements and the needs of the team.

Lead by example. Far too many managers demand candour of their employees, while shying away from it themselves. This is particularly true when it comes to discussing mistakes or other potentially embarrassing topics. Managers must be ready to share their own work from home/hybrid work personal challenges and constraints. Otherwise, how can they possibly expect their staff to be candid with them?

Go slow. It takes time to build trust. Even if the firm has already gained some ground in terms of ensuring employees’ psychological safety, sharing a story of how you failed during a presentation is completely different from admitting that Covid-19 has left you filled with anxiety and a spouse on the verge of burnout. Start small and then move to tougher topics.

Build your case. You may need to sell employees on why sharing challenges is key to business. Share your conviction that transparency helps the team design new arrangements that serve both not only organisational goals but help meet employee needs as well. When giving examples, be sure to never disclose private information and also avoid creating the pressure to conform.

Use your tact and skill to give employees the evidence they need to buy in, but let them do so on their own.

Remember that psychological safety is fragile. Psychological safety takes time to build but moments to destroy. People will fail to share even their most relevant thoughts at work if they sense there is any risk. If one takes the plunge and speaks up, only to get shot down, they and others will clam up next time.

A challenge for leaders is how to manage well-meaning, but pressuring, comments such as: “So, when will we see you in the office?” or “things will be easier when we can all meet face to face”, which may leave some employees feeling as if they are letting their teammates down.

Yes, people may genuinely miss their colleagues or need their help, but leaders should help their colleagues frame such remarks in more inclusive ways. For example: “We understand you may be facing constraints at the moment. What do you think would be the best way for us to get your inputs on xyz?”

As the name implies, group dynamics are not static; they are emergent processes that remain a work in progress. A good leader should view psychological safety as a constant learning endeavour. A great start is to have conversations that promote trust and openness.

Mark Mortensen is an Associate Professor of Organisational Behaviour at Insead. Amy C Edmondson is the Novartis Professor of Leadership and Management at Harvard Business School.

A version of this article first appeared in Insead Knowledge

Emirates exiles

Will Wilson is not the first player to have attained high-class representative honours after first learning to play rugby on the playing fields of UAE.

Jonny Macdonald
Abu Dhabi-born and raised, the current Jebel Ali Dragons assistant coach was selected to play for Scotland at the Hong Kong Sevens in 2011.

Jordan Onojaife
Having started rugby by chance when the Jumeirah College team were short of players, he later won the World Under 20 Championship with England.

Devante Onojaife
Followed older brother Jordan into England age-group rugby, as well as the pro game at Northampton Saints, but recently switched allegiance to Scotland.

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: July 31, 2021, 4:30 AM