More companies are expected to allow staff to work from home once the UAE emerges from the Covid-19 crisis, industry experts said.
Saving costs on large offices and cutting transport needs would be among the business benefits when the stay-home order eases.
Before the pandemic, an International Workspace Group survey found only 10 per cent of employers in the Emirates allowed staff to work from home for one or two days a week. That was far short of the global average of 62 per cent, the 2019 survey found.
Industry experts said the stubborn belief by many managers in the Middle East that work must be done in the workplace was changing.
There will be some who just want to watch Netflix all day. But they will be found out pretty quickly
“Companies have now seen that having staff work from home can produce results,” said Claire Donnelly from MHC Consulting in Dubai, which trains executives and advises on workplace productivity.
“There will definitely be more appetite for flexibility at the end of all this.”
Earlier this month, Dubai Future Foundation predicted working from home would become the "new norm" for companies.
Ms Donnelly said it would be tempting for office-based industries to fall back into old habits once restrictions were lifted.
“It’s human nature to revert to business as usual and there’s going to be extreme pressure for companies to bring money in as soon as this is over,” she said.
“The first thing that needs to happen is to hold meetings and look at what we learned during the lockdown and use it.
“Some staff will be more productive working at home and benefit from being able to go for a quick run or walk at lunchtime.”
The reluctance of many companies in the UAE to embrace remote working practices can be partly attributed to visa problems.
“The number of visas a company can apply for depends on the size of its office,” she said.
“That doesn’t mean you necessarily need a huge office with everyone there.”
One company that plans to continue remote working conditions once the nationwide stay-home order lifts is Alliance Francaise Dubai.
The school, which offers French language courses for people of all ages, has 20 full-time and 45 part-time staff.
“The past few weeks have shown that working from home can work,” said director Melanie Martini-Mareel.
“Some of our teachers have liked the experience and we’re going to take it further by continuing to have remote working facilities once the Covid-19 crisis is over.
“We want to show we are committed to the social and mental well-being of our staff.”
Clients were already using video conferencing to connect with tutors regularly, and results can still be measured.
Applications to the school have soared during the crisis as residents stuck at home look to pass time and improve language skills.
“Allowing more flexibility to work from home makes sense as it shows we have trust in them,” she said.
“I know they are not going to cheat and take advantage because the work still needs to be done.”
David Mackenzie, group managing director for recruitment firm Mackenzie Jones, said many bosses have begun to trust employees more.
“Without a doubt, it’s going to change things,” he said.
“Many people, myself included, were a bit cynical but it’s proven to be successful.
“Now there wouldn’t be as many issues with hiring someone who needed to work from home once or twice a week.”
He said some local companies have begun approaching him to recruit staff for remote positions.
Businesses would be wise to listen to what their employees want and respond accordingly
“People often work harder from home but there is the flip side – there will be others who just want to watch Netflix all day. But they will be found out pretty quickly.”
Tech companies in particular look to attract employees used to working on project work, often remotely.
“Employers who offer flexible working will attract the best talent and are more likely to retain these employees for longer,” said Mansoor Sarwar, regional director of software company Sage Middle East in Dubai Internet City.
“Employees want to be able to pick up their kids from school, start and finish early if they have international calls first thing in the morning or be able to head to a doctor’s appointment without fear of being perceived as slacking.
“Businesses would be wise to listen to what their employees want – and respond accordingly.”
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
Company%20profile
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Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
