Sophia Fromell, an executive change management professional. Courtesy Sophia Fromell
Sophia Fromell, an executive change management professional. Courtesy Sophia Fromell

Are budgetary pressure leaving firms short on staff wellbeing?



The performance coach Sophia Fromell has a client who always makes a point of putting his children to bed.

Except, recently, the routine changed.

“Now he has his BlackBerry hidden under his leg and he secretly checks his messages while reading a bedtime story, which is not healthy. It adds to the pressures,” says Ms Fromell, an executive coach specialising in career coaching, corporate management and change management who is based in Dubai.

“I see with my clients, that even people who are not directly into banking or oil, they see the change in the market and feel more insecure about their jobs.”

Ms Fromell suspects that budgetary pressures are leading to people being asked to do more with less.

“[They are saying] we can’t give you the additional head count, or we can’t give you the pay rise you want.”

She adds that many companies are also cutting employee engagement programmes, fuelling job insecurity.

And to make matters worse, other workplace wellbeing initiatives are also being scaled down.

“I think generally companies’ budgets are quite tight, so [this is affecting the] kind of thing that might lead to wellness and engagement, maybe wellness programmes and benefits that they would give their staff,” says Tim Garrett, the founder of the Corporate Wellness Company in Dubai.

“As a company we have been quite successful in finding quite a lot of customers and growing our business, but I think that is just down to us trying hard.”

Experts say such moves are impacting engagement levels in the workplace, which have declined in the UAE in recent years, according to a study.

Gallup’s State of the Global Workplace report, which was released last week, revealed that just 16 per cent of UAE employees are actively engaged, which was slightly higher than the global average of 15 per cent, but significantly less than the 26 per cent of actively engaged respondents in the same study three years ago.

“Usually the number of the percentage engaged tends to be influenced by factors which have to do with everyday people management. So maybe [companies are] taking their eye off the ball a bit in terms of how people are managed on a regular basis and performance management types of issues,” says Jim Harter, the chief scientist of workplace management and wellbeing for Gallup's workplace management practice.

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“There were some age differences. The baby-boomer age range tended to be more engaged than the millennial generation, so the younger workers are less engaged than the older workers. That pattern isn’t always the same in every part of the world, so there might be something in that explains some of it. For example, if you go to some of the former Soviet countries, you tend to get higher engagement among some of the younger workers. In the US we see that the younger workers are more in that middle category, a bit more indifferent in terms of their workplace.”

However, in better news, the Gallup report found that the UAE came out on top globally for the percentage of people in employment.

“Close to one-third of working-age adults around the world work full time (at least 30 hours per week) for an employer - our definition of a good job. More specifically, 32 per cent of residents aged 23 to 651 across the 155 countries surveyed for Gallup World Polls conducted from 2014 to 2016 fall into this category,” says the report.

“At the country level, the good jobs rate ranges from 5 per cent in Niger to 72 per cent in the United Arab Emirates,” it adds.

Gallup conducted a survey a couple of years ago about what led to happiness in the workforce in the UAE. Four factors were found to be significant.

“Engagement is certainly an important factor. We also found that trust was important, so feeling a sense of security and confidence in one’s leadership. And positivity was important, so a sense of optimism around the mission or purpose of the organisation and opportunity to focus on your strengths,” says Mr Harter.

“Interestingly we found that perceptions of the manager were even more important than perceptions about themselves.”

In fact, research by Gallup shows that managers are responsible for at least 70 per cent of the variance in their employees’ levels of engagement.

So how do managers reverse the trend, and increase employee engagement?

“From an engagement standpoint, some of the things that stuck out were that if people feel their opinions count at work they are five times more likely to be thriving in their own lives,” says Mr Harter.

“So the work piece connects to the rest of the life piece in a pretty strong way. And they are four times more likely to be thriving in their own life if the mission or purpose of the company makes them feel their job is important.”

Other important factors include recognition. People who received recognition for doing good work were found to be four times more likely to be thriving in their overall lives.

Employees also want to have some clarity in terms of what their role is. They want to be in a job where they can use their strengths on a regular basis. And they want to be recognised for it, he adds.

Repeated studies have shown the wellbeing programmes also increase engagement in the workplace.

Mr Garrett agrees. “Absolutely, because literally every single company I have ever worked for, they do it from a place of true meaning very ethically,” he says.

“They really want to help their staff live a better quality of life. it’s not really about improving performance, but they know that will happen.”

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

THE DETAILS

Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5

FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.

COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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.”