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29 March 2024

UAE companies unprepared for looming talent crisis

The UAE's investment sentiment index (ISI) fell from +45 to +24. (File)

Published
By Staff

We all know that employees generally complain about challenges they face in their jobs but a new study reveals what hurdles UAE companies could confront with regard to workers’ lack of training, talent gap and leadership void among others.

According to a new study by Oxford Economics and SAP, UAE employers will need to increase their focus on adopting organisational capability towards fast changing technology landscape to give their workers the right mix of skills in the next three years to enable future growth.

As the UAE builds its knowledge-based economy in line with UAE Vision 2021, training the next-generation workforce becomes increasingly important. 15 per cent of respondents in the UAE said bridging the learning of the capabilities of cloud is needed today, more than double, 39 per cent, see cloud as being necessary in three years’ time, according to the study, part of the global -“Workforce 2020”- report, which surveyed 5,400 executives and employees in 27 countries. However, just 24 per cent of employees in the UAE expect to be proficient in cloud within three years, the report found.

The survey also found strong increases in demand for cloud, analytics, mobile technology, and social media skills, with predicted growth of 88 per cent, 58 per cent, and 28 per cent respectively in the next three years. However, only about 25 per cent-35 per cent of UAE employees expect to be proficient in these areas by 2017. Closing the skills gap must be a priority for employers in the UAE, especially for high-potential tech-savvy Millennials.

“Confluence of cloud, social, mobile and big data are driving new possibilities to respond effectively to rapidly evolving technology landscape and new business scenarios, organisation in the UAE must face the challenge of upgrading organisational capabilities and skills to enable future growth,” said Sam Alkharrat, President, SAP Mena. “With the high potential of Millennials there is a tremendous opportunity to foster the next generation of business leaders and accelerate growth,” he added.

Below are the top workforce issues facing UAE companies in the future:

1.   Widening talent gap

Less than half (44 per cent) of employees said their companies provided ample training on needed technology, and less than one-fifth (17 per cent) said they get access to the latest technology available. Encouragingly, employers in the UAE do seem to recognise the importance of career development generally, with 55 per cent of employees saying their company provides the right tools to grow and improve job performance, and 45 per cent saying they are offered training programmess to develop new skills.

2.   Education and training

If the right skills training can be provided, UAE workers seem willing to benefit. The survey shows a strong emphasis on career development and training in the UAE, with more than half, 55 per cent, of employees citing supplemental training programmess as being important in their career. Employees also value education programmess, cited by 52 per cent, possibly to safeguard their future: 43 per cent of UAE employees were most concerned about their position changing or becoming obsolete. Only 35 per cent of employees in the UAE cited compensation as the most important part of their jobs, compared with 66 per cent of global workers.

3.   Misunderstood Millennials

The study also found key UAE workplace differences between workers and Millennials, aged 18-35, an age group that was cited by 54 per cent of employers as impacting on workforce strategy. More than one-third of Millennials in the UAE cited work-life balance as important, compared with 14 per cent of workers outside that group. While 46 per cent of employers in the UAE think Millennials are frustrated with management, only 2 per cent of that age-group said they were. Likewise, 27 per cent of managers were worried Millennials may quit their jobs because of lack of learning and development, but only 2 per cent said they had thought of this.

Although 54 per cent of executives say Millennials entering the workforce is a top trend impacting the workforce strategy, only 28 per cent of executives give special attention to their particular wants and needs– primarily because they don’t know what to make of them.

4. Leadership void

The survey also revealed that executives and employees agree that leadership is lacking—and companies are not focused enough on developing future leaders:

 •Just 32 per cent of Emirati executives say their company plans for succession and continuity in key roles. 44 per cent per cent say that when a senior person leaves, the company tends to fill the role from within the organisation.

 •39 per cent of executives say their plans for growth are being hampered by lack of access to the right leaders.

•Employees agree with employers when it comes to leadership — 34 per cent of employees say leadership at their company is equipped to lead the company to success

“With the UAE’s growing economy, companies must create a culture of leadership development and continuous, employee-driven learning to accelerate innovation and drive high performance,” said Nelly Boustany, HR director, SAP Mena.

Photo courtesy Shutterstock