Sage Software, the leading global vendor of ERP, HRMS and CRM solutions to medium and large organizations today the launch of the Sage Arabian Pulse business survey as part of an ongoing initiative to gain a broader insight into the issues affecting its customers - both current and future. The results will be used to develop products and services more appropriate for them.
Battling with red tape is the biggest headache for companies based in, or working within the Middle East, according to business leaders.
• Red tape is the biggest concern for business leaders
• Major shortage of qualified staff is holding back business
• Democracy and empowerment of women not a priority for businesses
These imperatives emerge from the Sage Arabian Pulse, business survey conducted by YouGov of 238 senior business professionals in the Middle East in the spring of 2005.
The two top business priorities for expanding prosperity in the Middle East are an injection of more qualified staff and a reduction in regulation and “red tape”.
Overall, the survey reflects the optimistic mood with salaries going up, over and above inflation. However, it also indicates a sense of frustration that more could be done to improve growth and productivity in the work place.
1. Red Tape is a nightmare for many companies in the region. When asked which reforms would most help their company to grow, YouGov’s sample nominates a clear winner; “less regulation and ‘red tape’”. 40% of all respondents say less regulation and ‘red tape’ would help their company grow most in the long-term.
Sage Middle East Managing Director, Marc Van der Ven, said, “The GCC Governments are serious about making this region an investor friendly place. However, it is about time they find a way to effectively action their vision through the various government departments that interact with businesses.”
2. The lack of qualified staff applying for jobs is a serious concern to regional business leaders. Businesses, based in the Middle East, find recruitment such an enormous challenge that they feel improvements in education would help company growth more than foreign investment. The shortage of skilled staff is something employers feel strongly needs addressing, particularly as the problem is exacerbated by a difficulty of retaining skilled staff. Nearly half (49%) say they had a lack of qualified candidates applying for jobs, which is a serious concern to them.
Sage Middle East Managing Director, Marc Van der Ven, said, “The extent of the impact of lack of qualified staff on business is a revelation and one that won’t improve in the short-term. The key to solving this problem has to come from long-term development and reform in the region’s education sector. The solution lies in sustained effort in investing in the education system in the region so that businesses turn towards recruiting local talent instead of expats. Remember, these candidates are bi-lingual, understand local business culture and are more easily accessible.”
3. Western calls for reform in the Middle East, through greater democracy and the liberalisation of women, are largely being rejected by regional business leaders. Business Executives do not agree with World Bank calls for more women to join the workplace in the Middle East and thus boost the region’s economies. Only 6% said the liberalisation of women would improve growth.
Business executives don’t believe increased democracy in the region will do much to improve growth despite increased pressure for governments in the region to democratize, following the first municipal elections in Saudi Arabia. Only 15% of respondents believe greater democracy would improve the regional economy, this is well behind factors like a reduction in red tape and increased foreign investment.
Sage Middle East Managing Director, Marc Van der Ven, said, “It is shocking to note the attitude of Senior Managers, mainly men, towards women’s role in business. This finding comes, despite the recent World Bank report, which states that women could provide a major boost to regional economies. Women play an extremely important role in shaping the future of the society we live in. Their inclusion in all parts of our business society, including government, is critical. The mindset must change if local economies are to benefit from greater participation from women”
4. Sage Arabian Pulse has revealed business leaders could be doing much more to motivate staff with measures which don’t cost money, especially as the poll indicates happiness in the workplace has a high impact on improving productivity. Executives feel their quality of office life would be most improved by a higher salary (40% of all respondents), followed by free health club membership. Both of these cost money but almost half the sample answered with measures that would cost no money, like more challenging work, flexible hours or more respect. The Western concept of ‘Duvet Days’ was wholeheartedly welcomed by executives in the region.
Sage Middle East Managing Director, Marc Van der Ven, said, “Happy workers make such a difference to quality of work. Managers must think of innovative ways to keep their workforce happy. The survey has revealed some very cost effective ways of doing so. Businesses in the region need to take advantage of this new found insight. It may also deal with the problem of retaining good staff”, explained Marc.
5. Traffic congestion, in the UAE is no longer merely an inconvenience for drivers; it is now having an impact on business growth. Greater investment in infrastructure, such as roads, is the third biggest factor which would encourage growth in the UAE; this comes over and above greater international investment or education. It is an indication of the growing unease with traffic problems in the Emirate, particularly Dubai and Sharjah.
Sage Middle East Managing Director, Marc Van der Ven said, “Traffic a real problem especially for Dubai based businesses. It hurts productivity and has a very adverse affect on quality of personal life too. One needs innovative ways to tackle this, e.g. meetings over video conference, flexi working hours, working off home, mobile computing, etc. A lot can be accomplished remotely by proper use of technology.”
