• Working from home or hybrid working – splitting the week between the workplace and home – has become the "new normal" for many. Getty
    Working from home or hybrid working – splitting the week between the workplace and home – has become the "new normal" for many. Getty
  • More employees are looking for jobs that can be done remotely. Getty
    More employees are looking for jobs that can be done remotely. Getty
  • Middle East law firm Al Tamimi and Co says in an online briefing document that "the UAE is shifting to more flexible working arrangements". Getty
    Middle East law firm Al Tamimi and Co says in an online briefing document that "the UAE is shifting to more flexible working arrangements". Getty
  • Working from home has its challenges, with the need for a proper work space and a routine - include healthy eating. Getty Images
    Working from home has its challenges, with the need for a proper work space and a routine - include healthy eating. Getty Images
  • A survey from the property company Savills published in May found that seven out of ten Dubai employees had returned to their offices for at least some days of the week. Bloomberg
    A survey from the property company Savills published in May found that seven out of ten Dubai employees had returned to their offices for at least some days of the week. Bloomberg
  • Advances in technology – notably Zoom and Microsoft Teams, and file sharing – are also key to the growth of working from home. Reuters
    Advances in technology – notably Zoom and Microsoft Teams, and file sharing – are also key to the growth of working from home. Reuters

Is working from home here to stay in the post-pandemic world?


Daniel Bardsley
  • English
  • Arabic

When the coronavirus pandemic emerged and millions of employees were told to work from home, many probably thought that it would be temporary.

Yet, three years on, the world of work looks very different for some people whose jobs can easily be done with a computer, an internet connection and a phone.

While Elon Musk has banned it at Twitter, WFH or hybrid working — splitting the week between the workplace and home — has become the "new normal" for many.

Certainly, more employees are looking for jobs that can be done remotely.

Some people want three days at home, two days at work, just to get some benefits from being away from home
Prof Stephen Wood,
University of Leicester

Research from ResumeOK, a career website, said demand for these roles in the UK was up nearly 900 per cent in October this year compared with 2019.

However, there has been pushback. Last year, James Cox, a UK recruitment business owner, accused job applicants of wanting to "doss on the sofa with your laptop in your dressing gown/PJs".

It's not only the pandemic that has led to the growth of home working: advances in technology — notably Zoom, Microsoft Teams and file-sharing — are also key.

Even five years ago, the technology did not work as smoothly, says Prof Stephen Wood, a work psychology and employee relations researcher at the University of Leicester in the UK.

"You don’t get so many glitches," he says. "People have become more confident using them."

Flexible working arrangements

The extent to which staff work from home varies across the world.

Prof Nick Bloom, of Stanford University in the United States, recently suggested that WFH or hybrid working was more common in North America and Northern Europe because many jobs in these regions are in business services and can be carried out remotely.

In Africa or lower-income parts of Asia or Central America, where manufacturing and agriculture account for a greater proportion of employment, WFH is often not possible.

Even in highly developed Asian nations, the culture of going in to the office appears stronger. A survey from Japan published in July found 29.1 per cent of companies had staff working from home, down from 37 per cent the previous October.

Middle East law firm Al Tamimi and Co says in an online briefing document that "the UAE is shifting to more flexible working arrangements", while a survey from the property company Savills published in May found that seven out of 10 Dubai employees had returned to their offices for at least some days of the week.

Among the potential benefits of WFH or hybrid working Al Tamimi and Co highlights is flexibility, which makes it easier for staff to deal with issues such as childcare.

"Some people want three days at home, two days at work, just to get some benefits from being away from home," Prof Wood says.

Connecting with colleagues

Surveys have suggested that many employees enjoy the peace and quiet of working from home but there is the risk of social isolation.

In research she and colleagues carried out, Prof Irena Grugulis, professor in work and skills at the University of Leeds in the UK, found that more experienced call centre employees were keener on WFH than younger colleagues were.

"The people who enjoyed it were the long-established ones because they already had lots of connections with their colleagues, they already had the skills and they gained discretion and freedom," she says.

"The people who tended to suffer were the newer hires, who didn’t have people to ask when they had problems."

Most evidence suggests that, on average, productivity is not lower when staff work from home.

Prof Bloom has suggested there is a productivity gain of about 3 to 5 per cent from hybrid working, while Prof Wood thinks staff may produce higher-quality work at home because they have fewer interruptions.

Aside from potential gains in productivity or work quality, employers benefit from reduced property costs. In August, Jacob Rees-Mogg, then a British government minister, announced plans to sell £1.5 billion ($1.79 billion) of state-owned offices because more staff were working from home.

It remains to be seen whether WFH or hybrid working will retain its ubiquity in nations where it has survived the end of the pandemic and even spread more widely. Prof Grugulis for one hopes that hybrid working will remain popular.

"I suppose you will find the good firms far more open to a form of hybrid working than the firms that want to exert tight control," she said.

HOW DO SIM CARD SCAMS WORK?

Sim swap frauds are a form of identity theft.

They involve criminals conning mobile phone operators into issuing them with replacement Sim cards, often by claiming their phone has been lost or stolen 

They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.

The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

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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.”

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What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

Brief scores:

Barcelona 3

Pique 38', Messi 51 (pen), Suarez 82'

Rayo Vallecano 1

De Tomas Gomez 24'

Updated: November 20, 2022, 3:19 PM