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Mar 2024

All the time in the world

Source: Middle East Insurance Review | Jan 2023

Readers with long memories will remember when the working week across a significant amount of the Middle East was six days.
 
More recently, parts of the GCC decided to align their weekend with many other international markets and designated Saturday and Sunday as days off. Many leaders in the insurance sector advised MEIR that they thought this was a very positive development and helped with the internationalisation of their businesses.
 
No sooner have businesses in the region become used to these new working patterns than pressure towards introducing a post-pandemic four-day working week has started to build around the world.
 
The idea behind this shift is not that we should do less work – but that we should do the same amount of work in less time. This is not a new notion, which is why we have the phrase ‘if you want something done, ask a busy person’ – as well as Parkinson’s law that states that ‘work expands so as to fill the time available for its completion’.
 
But what would a four-day week mean for the insurance sector in MENA?
 
Studies have been undertaken for an organisation called 4 Day Week Global, a not-for-profit community that hopes to provide a platform for like-minded people who are interested in supporting the idea of the four-day week as a part of the future of work.
 
Researchers at Oxford University, Cambridge University and Boston College have been running trials for 4 Day Week Global to see what impact the shorter working week has on both productivity and employee wellbeing.
 
The not-for-profit published a 40-page report following the trials recently that said, “We found that the trial had profound effects. For the companies, relevant metrics showed high levels of success. Revenue rose approximately 8% over the trial and was up 37.55% in comparison to the same period in 2021. Hiring rose, absenteeism was reduced and resignations declined slightly.”
 
But is the MENA region ready for this? And is the insurance sector ready?
 
One of the perennial problems that leaders in the insurance and reinsurance sector tell MEIR about is the ‘talent crunch’ within the industry. Many feel that there are simply not enough highly qualified – and highly motivated – people working in the sector to help it achieve its real goal – which is a growth spurt that helps close many of the protection gaps that exist.
 
Some areas of the business are more profoundly affected by these talent shortages than others. The actuarial arena in particular is acutely aware of the small talent pool available at present.
 
Thankfully there have been no overwhelming sign in the region of ‘the great resignation’ that has affected some other markets.
 
If the trend towards a four-day week becomes the norm globally, the MENA region will not be in a strong position to resist it – but it is probably not tenable that the same hard workers can do even more in a shorter time frame.
 
The solution is to hire more high-quality people quickly – but at a time when wage inflation is set to take off, this could be an expensive endeavour.
 
Paul McNamara
Editorial director
Middle East Insurance Review
 
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