Companies across the UAE are adapting to hybrid working models for the long-term as staff begin to return to the office.
Employment experts told The National of a "big shift" taking place, after many employees spent more than a year working from home during the pandemic.
They said companies would have to adapt to a new normal, because staff would expect to be allowed to mix days at the workplace with remote work.
A recent survey of almost 1,100 employers and employees in the region found more than two thirds of employers were operating with a hybrid model.
A lot of companies are now allowing staff to do three days at home and work in the office for the other two days
Of the companies surveyed by Hays recruitment, 69 per cent said they offered remote work options, compared with only 43 per cent before the pandemic.
“We believe hybrid working models will continue in the long term as more and more organisations incorporate remote working options as part of their standard working patterns,” said Chris Greaves, managing director of the Gulf region for Hays.
“Of the 69 per cent of employers who now offer hybrid working models, none specified that they would remove this option and instead they are looking to realise the benefits it can provide, the only exception to this being service-related roles and industries where office working is essential to business.”
Rise of the split working week
The trend echoes the model used by major global employers.
At banking giant JP Morgan Chase, some employees can schedule work from home days – but on Mondays and Fridays they must be in the office, a Wall Street Journal report said. At global commerce firm Salesforce, which employees about 50,000 people, Thursdays are the most popular in-office day – prompting the company to rethink its layout and cater to demand for meeting rooms.
David Mackenzie, managing director of Dubai recruitment agency Mackenzie Jones, said local employers have seen a similar trend.
“We are seeing a big shift in people coming back to the office,” he said.
“A lot of companies are now allowing staff to do three days at home and work in the office for the other two days,” he said.
Mr Mackenzie said there was also appetite among businesses in the region for more face-to-face interaction after months of endless video conferences.
“Businesses won’t grow by staff being constantly at home as you can’t build relationships on Zoom,” he said.
“The informality of work has been lost due to Covid-19 as you don’t have that networking opportunity over a coffee, or chatting to a colleague in the corridor.
“That has to come back, as it’s a key part of how many businesses function.”
Mr Mackenzie said there could be a split between those who were attuned to working from home and others who found it difficult.
“Those who are not good with people will love working from home, and some are also so used to their work-life pattern right now that they might look for another job if work asked them to start coming in,” he said.
Mr Mackenzie said others could not wait to go back to the office because of sheer boredom.
“We’re moving talent around in the UAE at the moment because people have been stuck in their house for the past year and a half staring at a screen,” he said.
“It’s made them realise it’s not the company they want to work for. As soon as something good comes up they are leaving.”
Offices no longer simply 'containers' for staff
A senior figure from one of the region’s leading property companies said the widespread adoption of a hybrid working model was inevitable, with or without Covid-19.
“It is important to note that this trend is something that has not purely stemmed from the pandemic but has certainly been accelerated by it,” said Anthony Spary, head of landlord agency and retail for CBRE.
“From the perspective of both investors and occupiers, office space is now transitioning to become more of a multi-faceted service, rather than just a container for employees.
“The most appropriate model will differ from industry to industry, and will be more than just working from the office or working from home.”
Another of the region’s leading recruiters has already adopted a hybrid model, with employees working from the office three days a week in Dubai’s DIFC and from home the rest of the time.
“This hybrid work model is working well for us as a recruitment company, and globally as a company, our productivity is back to 2019 levels with 70 per cent of our consultants working remotely,” said Jon Ede, regional director in the Middle East for Michael Page.
“Our employees are finding the flexibility beneficial in terms of priority and time management.”
Some companies simply do not want staff to come back to the office, as they look to keep down costs.
“I think companies are starting to ask – do we even need an office any more,” said Claire Donnelly, who runs HR and business consultancy MHC.
“That’s especially the case for SMEs, who will be thinking, ‘If we can work virtually, why do we even need our staff to be in the UAE, when they can work remotely from other countries and save money on gratuity?
“The world is opening up.”
Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
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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