As businesses across the Middle East navigate evolving regional circumstances, 47 per cent of businesses in the region face a ‘resilience gap,’ according to research by insurance brokerage Lockton.
On the other hand, just 39 per cent of businesses consider themselves to be “very” prepared for significant business disruption, according to Lockton’s Workforce Resilience report, which surveyed 140 HR and business leaders across the Middle East and North Africa (Mena) region.
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Meanwhile, the report also found that 86 per cent of businesses consider their workforce-related risks to be ‘well understood’, which Lockton said highlights the importance placed on employees.
Adeeb Al Naser, UAE CEO at Lockton, said that businesses in the region continued to operate even amidst economic, geopolitical, and organisational changes.
In the UAE, the Dubai-based cable supplier, Ducab, saw its business flourish following the conflict as developers sought domestic suppliers due to shipping and logistics constraints in the Strait of Hormuz.
In addition to the geopolitical challenges, Al Naser said, “Add to this global challenges around talent competition, the surge of advanced technologies and changing employee expectations, it becomes clear why a gap in business resilience is emerging.”
Loss of talent to workforce challenges
The majority of respondents, 66 per cent, have said that loss of key talent and skillsets were major workforce challenges that MENA businesses face. This is followed by the ability to evolve skills alongside digitisation and rise of AI at 43 per cent, and competition for talent, at 38 per cent.
“Workforce risks rarely exist independently and, conversely, can often exacerbate one another,” Al Naser said, explaining that the emergence of new technologies can place greater pressure on already squeezed talent pools, intensifying competition for those with the required skills.
“At the same time, technology advances are also accelerating upskilling as people consider how they can make these developments work for them,” he added.
“As businesses look ahead, many are renewing their focus on workforce resilience and the steps needed to mitigate people-related risks. Building resilient, and engaged, high-performing workforces are enablers in strengthening business confidence, supporting long-term growth and helping organisations thrive in a rapidly evolving environment,” Al Naser said.
Source: Khaleej Times