Just two in five (39%) MENA businesses consider themselves to be "very" prepared for significant business disruption as businesses across the Middle East navigate evolving regional circumstances, according to new research from Lockton, the world's largest privately held insurance brokerage and risk management firm.
Meanwhile, four in five (86%) MENA businesses feel they understand and appropriately manage workforce-related risks, creating a discrepancy between confidence and the level of preparedness needed to successfully address business disruption when it occurs.
The findings are from Lockton’s inaugural ‘Resilient Workforce’ survey, which is based on the responses of 140 HR and business leaders across MENA.
Mr Adeeb Al Naser, UAE CEO at Lockton, said, “What is evident is that while businesses recognise the importance of preparedness, this confidence must be matched by the right strategies to respond effectively to disruption and protect business continuity. The challenge now for businesses navigating an increasingly complex and fast-moving environment is to ensure that strong preparedness also equates to genuine, long-term resilience.”
Mitigating workforce risk
Lockton’s report also found that 86% of MENA businesses consider their workforce-related risks to be ‘well understood’, underscoring the importance placed on their people.
Mr Al Naser said, "Workforce resilience is no longer just an HR issue, but a critical business issue. Overall business resilience is strengthened by having a comprehensive workforce strategy in place that goes beyond understanding people risk, outlining tangible and concrete measures for true preparedness.
“It is encouraging that so many MENA businesses continue to take considerable steps to understand where they may have workforce challenges so that these can be addressed; be that through succession planning or means-tested wellbeing initiatives that are, crucially, also measured for their impact. Done well, these factors not only create meaningful and valued benefits for people, but also have significant influence on organisational performance.”
Loss of talent tops workforce challenges
Of the workforce challenges posed to businesses in MENA, loss of key talent and skill sets topped the list, with over two thirds (66%) of respondents citing it. This is followed by the ability to evolve skills alongside digitisation and the rise of AI (43%), and competition for talent (38%).
Mr Al Naser said, "Workforce risks rarely exist independently and, conversely, can often exacerbate one another. For example, 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.
“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.”