< PreviousSUSTA I N A BILITY | 30 Vol. 24/05, May 2023 How behavioural biases a ect investors’ decisions Acting too conservatively, being over con dent, making future decisions based on past failures, and following the herd – understanding these biases is key to investment success Growth opportunities One way investors could be holding themselves back from success in their investments is by being too conservative 1.518% The rise in Dubai Financial Market (DFM) stock on April 13 – hitting a seven-month high INVESTMEN T | sions, though we may not often notice them. That includes our financial decisions. Behavioural biases, exhibited consciously or otherwise, tend to be more pronounced in times of volatil- ity due to market forces that defy conventional patterns. That is to say, the current volatile market environ- ment presents an opportune moment fo r in v est o rs t o i d enti fy a n d course-correct their behavioural biases impacting both short- and long-term financial decisions. By understanding the common biases presented below, one can put their investment behaviour to the test. Acting too conservatively One way you could be holding yourself back from success in your investments is by being too conservative. As humans, we all struggle to adjust to change, whether we readily recognise it or not. Investors, particularly those new to investing, may self-justify their conservative behaviours as being safe. However, investing comes with inher- ent risks. Without accepting these risks, the opportunity for growth and success is limited. A conservative approach can be attributed to cultural tendencies. Some cultures have a set-in-stone approach to dealing with money. That may lead many to choose the “safe” investment avenues or instruments, even if riskier ones are more likely to lead to greater returns. Sometimes, acting too conserva- tively can also impact an investor’s decisions after they’ve already invested. For example, a conservative investor may nd themselves with an insurance product with low coverage and high fees but may not exit the investment for the fear of losses. At times, such losses/penalties can pale in comparison to the bene ts they stand to gain in the long run through the procurement of a better coverage plan from a di erent service provider. But individuals with a conservative approach may struggle to see this and prefer to stick with what they view as a “safe” investment. BY AKSHAY SARDANA, VP - STRATEGY & INTERNATIONAL DEVELOPMENT, THE CONTINENTAL GROUP I nvesting can be an excellent way to grow and build generational wealth. But how you approach it and the opportunities you pursue or pass directly impact your success. And experts suggest that your emotions have a bigger impact on your approach and behaviours than you might think. In fact, behavioural biases impact many of our daily deci-arabianbusiness.com 31 Investment focus The current volatile market environment presents an opportune moment for investors to identify and course-correct their behavioural biases Considerations Individuals who love the excitement and quick bucks may make decisions hastily without considering all possible outcomes, says Sardana Being overcon dent While some investors nd themselves acting too conservatively and holding themselves back from potentially great investments, others face the opposite problem: Acting with too much con - dence, followed by bad investments. Overcon dence can occur as a result of cultural influences or individual personalities. Individuals who tend to be overly con dent in their work or personal lives are likely to approach their investment decisions with the same conviction. As a result, they may make bad investments by overestimat- ing their ability to make decisions or assuming that previous successes will continue in the future. Individuals who love the excite- ment and quick bucks may make deci- sions hastily without considering all possible outcomes. In stock markets, such investors may choose volatile equities, making impulsive decisions — like a gambler who gets caught up in the excitement of the game and contin- ues biting more than they can chew. Making future decisions based on past failures Overcon dence or conservatism can cause an investor to act irrationally or avoid investing out of fear of fail- ure. However, both these mistakes can also be the result of investors making their decisions based on previous experiences. Research shows that many inves- tors tend to rely too heavily on past failures or successes when making future investment decisions. Invest- ments that should be treated as exclu- sive decisions end up being in uenced by unrelated events. For instance, an individual may have had success putting a lot of money into a risky investment in the past. They are focused on this previous success and, as a result, make a risky investment that they might have otherwise avoided. In the same way, if an investor previously lost money on a certain type of investment, they may avoid investing entirely in the future out of fear of another failure. Regret is a powerful emotion. If an investor feels regret over no experience with investing to get started with stock trading. It has also led some novice investors to base their decisions on what’s popular or trend- ing at any given time. Whether that means investing in a new cryptocurrency or purchasing stocks based on a rumour about future growth, the “bandwagon” approach to investing is risky. But following the herd is a human instinct — a need to belong or a feeling that if everyone is doing something, it must be right. It can be di cult to break this bias. Overcoming behavioural biases It’s hard to fully escape from the clutches of behavioural bias. Whether your culture urges you to be conserva- tive, whether those around you are buying a certain stock and you’re tempted to join in, or whether previous wins have you feeling a little too over- con dent, these biases can lead you to make poor nancial decisions. To overcome these and other common behavioural biases, it’s important to rst recognise their exis- tence. When you feel an impulse to make an investment or buy/sell/hold a stock, ask yourself why you’re making that decision. If the answer isn’t based on research, fact, or advice from a trusted expert, your decision is likely a result of a bias. When you feel an impulse to make an investment or buy/sell/hold a stock, ask yourself why you’re making that decision | INVESTMEN T a previous investment, it can be di - cult to overcome or ignore it while making future decisions. Following the herd The internet and investment apps have allowed individuals with little to 32 Vol. 24/05, May 2023 Keeping up with the Musk-dashians Billionaire Musk’s Twitter account has been a rollercoaster ride of incidents and controversies 237.8M The current number of monetisable daily active users (mDAU) of Twitter, according to data and intelligence company Demand Sage subscription fees for premium features and that coveted blue tick, Elon Musk’s Twitter account has been a roller- coaster ride of incidents and contro- versies. He’s had ery exchanges with public o cials and even clashed with prestigious institutions like the New York Times and the BBC. But the episode promises to be the most explosive yet. The plot centres around public gures, celebrities, and other notable personalities who must choose between paying up to keep their blue tick or packing up and forfeiting it all together. As tensions rise, some are dramatically bidding farewell to their blue tick, while others are getting their wallets ready to pay the dues. It’s a war out there, and you won’t want to miss a minute of the action! In the battle of wits, Elon Musk and Stephen King squared off, with King demanding Twitter should cover the cost of his prestigious blue tick. Musk, ever the shrewd negotiator, haggled the price down to a now-famous monthly $8, setting the Twittersphere abuzz. Things also heated up when US Co n g r essw oma n Al e xa n d ri a Ocasio-Cortez took a jab at Musk’s Twit- ter Blue, condemning it as monetizing free speech, prompting his impish retort, “Your feedback is appreciated, now pay $8,” igniting a social media restorm. Buckle up, folks, as this Twit- ter melodrama, lled with knee-slap- ping exchanges, is far from over! Why I’m keeping my Twitter veri cation Musk’s uncompromising position on Twitter Blue subscriptions is compel- ling everyone to assess the value of that blue tick and make decisions based on both its market-driven worth and intrinsic value. Having been veri ed on Twitter for just under a decade, I see no compelling reason to forego my current experience and the blue tick. Moreover, by subscribing to Twitter Blue, I not only preserve my veri cation status but also gain access to exclusive features such as prioritised rankings in conversa- tions, fewer ads, longer videos, extended tweet lengths, and the ability to edit Get ready to grab your popcorn and settle in for the latest season of Elon Musk’s Twitter saga! It’s like a Net ix hit series, complete with plot twists, cliffhangers, and enough drama to make even the most dedicated reality TV junkies envious. From layoffs to introducing COMMEN T | CHAKER KHAZAAL, PALESTINIAN-CANADIAN REPORTER, SPEAKER AND AWARD-WINNING AUTHOR Elon Musk’s Twitter saga has continued to be a rollercoaster ride that I’m staying onarabianbusiness.com 33 Digital interaction There's exciting potential that lies within Twitter’s new premium offerings tweets, among others. After all, who wouldn’t want their tweets to be as polished as a Hollywood script? We allocate resources towards essential professional tools such as email services, web hosting, and partic- ipation in events and conferences. Isn’t it time we give equal importance to platforms that connect us and amplify our work, recognising their extraordi- nary worth and the plethora of possi- bilities they can unveil? Twitter has played an instrumental role in shaping not just my career but the careers of countless professionals across various industries. As a multifac- eted professional – author, reporter, businessman, and public speaker – Twitter stands out as a pivotal tool for success. My experience with Twitter has allowed me to forge connections, promote my work, and stay current with industry trends. The blue tick and beyond Twitter’s iconic blue tick veri cation badge has long been a hallmark of authenticity, serving as a testament to the public gure or prominent indi- vidual’s identity. I was granted the blue tick several years ago, and it has been a game-changer in numerous ways. Foremost among these is its ability to counter impersonation, assuring my followers that they engage with the authentic account and its legitimate content. Furthermore, the blue tick has conferred a substantial boost to my professional credibility, as it signi es that my account is validated and approved by Twitter. This has been instrumental in attracting new followers and engendering trust within the community. However, times have changed, and the blue tick is no longer the exclusive preserve of the select few. Notability is no longer intrinsically tied to the blue tick, which was previously awarded at the mercy of a complicated algorithm and a Byzantine process overseen by a corporation to decide who is “worthy” enough to be verified. In some instances, even notable individuals almost a complete chapter from my upcoming book, Arikaz, as an integral part of its promotional strategy, entic- ing potential readers to acquire the entire work. And let’s not forget the cherry on top – the ability to make the font bold and italic, because who doesn’t want their tweets to be as stylish as their prose? Moreover, Twitter Blue priori- tises subscriber rankings in discussions and search outcomes, “organically” increasing my profile’s visibility to a more extensive audience. This augmented exposure is vital for an author in my position, as it ampli es book sales and enables valuable connec- tions for events and collaborations. It is important to emphasise that while Twitter is implementing paid subscriptions, they are concurrently championing the cause of content creators by providing them with inno- vative revenue-generating opportuni- ties. By facilitating the ability for users to o er premium, exclusive content to their followers for a fee, the platform is actively empowering professionals to monetise their expertise and creativity. This strategic development highlights Twitter's unwavering commitment to nurturing its diverse content-creator community and fosters a more dynamic and economically sustainable ecosys- tem that bene ts all stakeholders. As we eagerly await the next riveting episode of Elon Musk’s Twitter drama, I am proud to say that I will be signing up for Twitter Blue, not only to preserve my hard-earned blue tick but to embrace the exciting potential that lies within the platform’s new premium offerings. For me, the decision is as clear as the sky on a cloudless day and just as blue. Those who choose to join this new era of Twitter can elevate their online presence and strengthen connections, all while chuckling at the wild, unpredictable antics of our favou- rite real-life Twitter drama. So, let’s raise a toast to Twitter Blue, the veri - cation badge, and the continuous pursuit of success, one tweet at a time – all without missing a beat of the world’s most entertaining social media soap opera! were denied the blue tick simply because Twitter’s human verifiers deemed them insu ciently important or were too apathetic to conduct a proper check. It’s worth mentioning that it has been reported that during the previous veri cation process, a black market may have existed, where individuals supposedly paid substantial amounts to certain intermediaries, who were then rumoured to have been collabo- rating with some Twitter employees to secure veri cation. Presently, the blue tick has been subsumed under the aegis of Twitter Blue. Therefore, I suggest to Elon Musk and the Twitter team that they intro- duce an identity-proo ng mechanism that entails using an ID rather than simply providing a phone number. This would allow us to combat trolls and levy appropriate criminal charges against cyber threats, bolstering our online security and engendering greater trust in the platform. Twitter’s commitment to content creators The enhanced features accompanying the Twitter Blue subscription serve to elevate the content crafted by profes- sionals like myself, showcasing our work to its full potential. With the expanded 10,000-character limit for tweets, we are liberated from the restrictive constraints imposed by social media titans. As an example, this newfound freedom allows me to share Let’s raise a toast to Twitter Blue, the veri cation badge, and the continuous pursuit of success, one tweet at a time | COMMEN TREAL EST AT E | 34 Vol. 24/05, May 2023 Saudi real estate: Is now a good time to buy? Here’s what you need to know With residents of the kingdom’s biggest cities facing sky-high rent, many are considering if they should get on the property ladder Legislation Saudi Arabia's new law will enable non-Saudi residents to own real estate of all kinds, under certain regulations which have not been made clear yet REAL EST A T E | Uncertain legal landscape Although the impending influx of expats into the country may make real estate seem like an attractive invest- ment opportunity, Knight Frank’s head of research, Faisal Durrani, tells A rabian Business that now might not be the best time to do so. “For expats, my answer is no because legislation is still in the works,” he says. At the moment, foreigners are allowed to own real estate or property for construction and investment, but are subject to prior approval from licencing authorities. And foreign ownership is forbidden in Mecca and Medina. Recently, reports emerged citing the CEO of Saudi Arabia’s Real Estate General Authority (REGA) Abdullah Alhammad stating that it was planning new laws which will allow foreigners to buy property anywhere in the kingdom, even in Mecca and Medina. The new law will enable non-Saudi residents to own real estate of all kinds, including commercial, residential, and agricultural – under certain regulations which have not been made clear yet. “For international buyers and investors, there’s no legislation yet that permits that but clearly, with the devel- opments that are planned, especially the giga projects, our expectation is that a lot of those will be priced above $1m for every unit,” Durrani says. BY TALA MICHEL ISSA 70% The Saudi government's planned homeownership rate by the end of the decade S audi Arabia’s booming econ- omy has piqued the interest of many expats looking for a lucrative investment opportunity, with some considering investments in real estate. With new laws coming into force soon that will alter the requirements of foreign homeownership, a real estate expert believes now may not be the best time to invest despite the impending in ux of rental-seeking expats into the country as companies rush to set up headquarters in the kingdom before the year’s end. This in ux comes after the kingdom announced in 2021 that failure to do so could result in losing out on lucrative Saudi government clients. But with quality of housing in ques- tion and restrictions on where single individuals can live, some may also be looking to buy to save themselves the hassle of house hunting.arabianbusiness.com 35 | REAL EST AT E Insightfulness Taimur Khan, Head of Research at real estate experts CBRE Affordability barrier dampens investor enthusiasm The average Saudi budget does not come “anywhere near” the pricing of these new giga project units, says Durrani. The surge in property prices is due to the gap between supply and demand in the Saudi real estate market, which has negatively impact investors, as land prices increased signi cantly as well. “We cannot ignore the fact that house prices have increased so much, which is making it tougher for people to transi- tion from renting to owning,” he says. The last time house prices peaked in the kingdom was in 2016. Durrani suggests that although prices have surpassed 2016 levels, they have not peaked yet. In 2016, an affordable ratio for buying properties was four to six times the annual household income, but the current prices for villas in Riyadh and apartments in Jeddah exceed that ratio, making them una ordable. The rising prices have caused a decline in the number of Saudis inter- ested in buying a home from 84 percent in 2021 to just 40 percent in 2022. However, with the government's target of achieving a 70 percent home- ownership rate by the end of the decade, the demand for properties is not expected to diminish anytime soon. The government may need to consider strat- egies to make housing more a ordable, such as developing more low cost hous- ing units or creating legislation that permits expats to own property. “The likes of Riyadh is attracting quite a signi cant number of individu- als moving into the city, many of whom will be renters. It o ers quite a signi - cant opportunity,” says CBRE’s Head of Research, Taimur Khan. “The Saudi government wants to go to 70 percent homeownership among nationals, the remaining 30 percent across the country will be renting. And that number will be a lot higher in the non-national population so I think, from that perspective, looking at income-producing or buy-to-let port- folios that people could be looking to build up is certainly a strategy which has the fundamentals behind it.” “Obviously, we’ve seen a lot of the higher end projects and that can sort of be the leading edge for some of these projects but there are others which are o ering a ordable stock to the Saudi population, like the Sakani programme [which] is there to address a ordability and homeownership and get Saudi nationals on the ladder. Lucrative opportunity ahead? The World Bank projects that Saudi Arabia’s economy is expected to grow by 2.9 percent. Although this is down from 8.7 percent growth in 2022, it is still outperforming other nations, especially with energy and cost-of-living crises being felt across the world after being brought on by Russia’s war in Ukraine and the Covid-19 pandemic. This slowdown in growth highlights the fact that the Saudi economy is still quite reactive to oil prices but it is work- ing to diversify its economy away from oil, and working hard to do it which will eventually pay o . “Very positively, we did nd that 83 percent of GCC high net worths want to invest in Saudi, so that’s very encourag- ing. But what was really interesting is that 95 percent said it would be even more attractive if local nancing options were available to them via banks or developers so they don’t have to secure the financing in their own country,” Durrani says, referring to Knight Frank’s latest report on Saudi real estate. He also found that their number one reason to invest in Saudi Arabia was “purely for capital gains, because they’re aware of the strong house price growth that has taken place in the last couple of years.” “I think there’s definitely some opportunities out there and I think the opportunity set will actually just continue to get bigger, particularly in the next couple of years when these new developments start to come on to the market,” Khan says. “For a lot of buyers the onus will be on looking at these new develop- ments within the market… because in large part, they o er something which is very di erent to what the existing opportunities are.” The number of non-Saudi workers in the kingdom, according to Khan, has gone up from 9.6 million in the fourth quarter of 2021 to almost 11 million. “Nothing’s o cial yet, so I’m better o not speculating with regards to [new incoming law changes],” Khan says. “There’s definitely a significant cohort of individuals that they could target who want to reside in Saudi Arabia for the long terms and so, opening up the marketing is some- thing which is probably very much on the agenda.” Although prices have continued to grow across the vast majority of the kingdom, they may need to slow down slightly to encourage people to buy. Cognizance Faisal Durrani, head of research at property consultancy Knight FrankSUSTA I N A BILITY | 36 Vol. 24/05, May 2023 Branded real estate is the secret to Dubai’s property boom A peek into Dubai’s luxury real estate market as many see the city as their new homeland Opulence Hotel branded residences are coming out on top, with buyers already knowing what level of service to expect from the brand $24BN+ The value of real estate transactions in Dubai in the rst quarter of this year, according to industry gures REAL EST A T E | driven huge demand for luxury real estate, altering the supply and demand balance. However, there is one trend in particular superheading demand in this end of the market: Branded resi- dences. A de nite one to watch out for and here’s why. There’s a reason we all have brands we love. Whether it be for a watch, a car, a hotel or a handbag. We know the value of the brand. We see the attention to detail. We hold so much weight of expectation in brands we love. So combine this with the single biggest purchase one makes in their lifetime- a home - you can see why it’s the ulti- mate combination. When looking at the Dubai luxury market over the past 12-24 months, the appetite is evidently far higher for branded residences vs non-branded luxury residences. With branded resi- dences, o ering resort-like features including residence clubs, room BY SARAH HEWERDINE, HEAD OF MARKETING AT HOUZA.COM It seems you can’t go far without hearing and seeing the wealth that’s entered into the Dubai market over the past 12 months. As a city that's always a liated to the rich and famous, it feels we’ve gone up another level over the past year. A growing concentration of high net worth individuals within Dubai has arabianbusiness.com 37 Investment Many buyers are now looking to invest into Dubai for their primary residence Industry specialist Dubai is rising as a strong option for Germans, French, Swiss and Russians, Hewerdine says service, cinemas and private mooring options, such projects become hard to contend with. These projects go far beyond luxury as they focus on every minute detail to provide residents with the ultimate luxury lifestyle. However, not any brand will do. We’ve noticed buyers holding some brands in much higher regard than others. Hotel branded residences are coming out on top, with buyers already knowing what level of service to expect from the brand. These are 6-star resorts they’ve vacationed in with their families over the summer, travelled halfway across the world to stay in and have lived and breathed the experience. Hence when it comes to buying a branded resi- dence, they understand the level of quality they’re buying into, which is why we’ve seen so much success in recent project sales for residences such as St Regis Financial Road, Four Seasons and Bulgari Residences at Jumeirah Bay. It’s not just on the emotional side, but nancial too. Branded residences are o ering more of a premium post handover. When looking at transaction prices pre and post handover, there is a notable di erence in how much more they transact. Take Address JBR for example - upon handover, units were selling at a 30-40 percent premium and similar trends are also appearing in projects such at W Residences Down- town with investors making solid returns, even before handover. Combine this style of living with waterfront proximity, and developers could be onto a winner. With Europe- ans making up a large share of luxury buyers, water view takes high prece- dence, and developers are listening. We’re nding developers situate their branded residences on the water and sell out with high price tags and at an incredibly fast rate. The good news is that any waterfront meets the require- ments, not just sea views. This has allowed developers to get creative with project location as seen by Ritz-Carlton Creekside along the creek and Four Seasons Residences building on the Dubai Canal. When looking at buyer require- ments for luxury real estate, in recent Spurred on by the economic situation across Europe and Russia, Dubai is rising as a strong option for Germans, French, Swiss and Russians. In addi- tion to the endless initiatives Dubai has introduced to make it an attractive destination for anyone to reside, the innovations and real estate projects available to high net worth individuals make it an even easier transition. Although many Dubai residents have felt some pain in price increases over the past 18 months, whether that be in the rent or sales market, one thing that remains in our favour is how we compare on a global scale. For branded residences over $30m, Dubai averages $1,700 blended across off-plan and ready market units. Compared to New York or London, the average price per square foot for these units comes in at over $2,000, showing further signs that Dubai o ers great value for money to many buyers look- ing to purchase. One thing that's for certain - indi- viduals are not just buying into these brands, they're buying into the Dubai brand. Dubai’s vision, Dubai’s poten- tial, Dubai’s ambition. Once you’ve been in this city, had a taste of it your- self and lived and breathed it, it’s hard not to get drawn in. Considering the variety of branded residences too, the pull only gets stronger (and of course, with good reason!) Besides, most of us came here with a two-year plan and remain a decade later. Once you’ve been in this city, had a taste of it yourself and lived and breathed it, it’s hard not to get drawn in | REAL EST AT E months, there’s been a shift. Many buyers are now looking to invest into Dubai for their primary residence, as opposed to simply purchasing a second home. Twelve months ago, the norm was foreign buyers investing into Dubai for their second homes, whereas now, buyers in this market are search- ing for their new permanent residence. The trend has shifted with many choosing to uproot their families and make the move to Dubai permanently. SUSTA I N A BILITY | 38 Vol. 24/05, May 2023 Wellbeing at work is a pandemic legacy that’s here to stay Social purpose and personal wellbeing represent pandemic legacies that are marking a new era of employee engagement and the future of work Trend Employee wellbeing is a post-pandemic phrase being thrown around way too loosely WELLBEING | One of the legacy outcomes from the pandemic that has drawn significant attention from government, business and academic leaders in the UAE and markets around the world is its e ect on the future of work and which work- force trends are expected to have lasting social and economic impact. This goes well beyond the ongoing discussion of flexible work environ- ments and the coining of buzz phrases like ‘Quiet Quitting’ and ‘Bare Minimum Mondays.’ It speaks to the foundation of the ability of markets in the region to compete against cities around the world for both foreign direct investment and critical talent necessary to sustain highly ambitious economic growth and diversification in the most dynamic strategic sectors. Workplace culture experts gener- ally agree the most prevalent chal- lenges and trends we are seeing today were actually identi ed, tracked and quantified pre-pandemic. But they appear to be greatly in uenced and accelerated by three years of mass social and economic upheaval. In its pre-pandemic Future of Work research series, the global organisa- tional consulting rm Korn Ferry quan- ti ed the potential talent gap countries and companies around the world were facing due to a growing scarcity of skilled talent in key jobs and sectors. This research also validated the poten- tial lost economic opportunity those markets faced if they didn’t proactively address the talent shortage. According to Korn Ferry, by 2030 the UAE was facing a gap of 111,000 skilled workers resulting in a potential of $50bn annually in lost economic opportunity. These were pre-pandemic figures before Abu Dhabi and Dubai announced aggressive plans to double the size of their respective economies, which will require an even greater in ux of critical talent. In Saudi Arabia, those gures were 660,000 in skilled talent shortages and an estimated economic risk of $206bn, or 15 percent of the total economy. What is interesting about this chal- lenge is that the true legacy of the BY JACOB DRAKE, MANAGING PARTNER, 360 STRATEGIC COMMUNICATIONSarabianbusiness.com 39 Insight As the future of work continues to take shape, the real winners may actually be governments and civil societies, Drake believes pandemic may be the opening of new and highly productive discussions around the modern employee/employer construct. It could actually result in a rede ned and mutually bene cial joint value proposition. As this future of work continues to take shape, the real winners may actually be governments and civil societies. From the employee perspective, one of the most interesting dynamics we are seeing is the growing need for a greater sense of purpose in people’s professional and personal lives. The level of time and all-in commitment we are expected to put into our careers needs a payoff that goes beyond a paycheck. This is about people expecting more from their employers just as they are expecting more from themselves. And not only in terms of the time put in at the o ce, but also about the potential social impact employers and employees can have together. When we think of having a sense of purpose in our jobs, it starts with the core value proposition of an organisa- tion, whether that be a large multina- tional, local family-owned business or government entity. Let’s face it, very few of the companies or entities we work for are truly ‘making the world a better place.’ But that doesn’t mean they aren’t making a meaningful difference in people’s lives. It’s on entity leadership, and their communications and HR teams, to help employees at all levels understand, respect and value the central need they ful l. It could be as simple as helping make people’s lives easier, take care of their families, or create laughs and smiles when they are needed most. If these impacts matter, so do my performance and actions at work. Yes, they always mattered in an annual performance review. But now they take on new meaning. And they can directly connect to the core values of an organ- isation that in the past may have been little more than web page copy, a poster in the breakroom or an annual CEO email. It can make it easier for employ- ees at all levels of the organisation to clearly identify ‘Values in Action’, or bene ts package are key, today’s holis- tic wellbeing definition goes much further. And employees are asking themselves a new set of questions about their employers and jobs. Is my training and development equipping me with future-ready skills essential to my career growth and future of the company? Is my mental health as respected as my physical health? Am I enabled and empowered to invest in my family life the same way I’m expected to invest in my profes- sional life? Am I surrounded by people who are well trained to help guide my development and reach my full poten- tial? Am I valued and protected enough to raise the alarm when I see something that I know is not right? In this new environment, social responsibility and engagement is also taking on greater meaning for the value of an employer brand. Environmental, Social and Governance (ESG) principles were emerging as critical business predictors, risk management and performance metrics pre-pandemic. Now these principles are rapidly taking shape as expectations demanded by regulators, investors, employees, customers and other stakeholders. For employees, a company’s ability to demonstrate and document its ESG performance and impact is also growing into a table stake. It’s not just an expec- tation of social impact but it’s a predic- tor of protecting an individual’s future opportunity within an organisation. Yes, on the surface this new future of work paradigm looks like a potential heavy lift in terms of investment. But the reality is companies have been spending in these areas without the appropriate return and positive impact for some time. It’s not about spending more, rather it’s about investing smarter with measurable returns. Companies can pay their way out of talent gaps. But that’s not a sustainable solution when a smart investment in employee wellbe- ing and a culture of purpose can make a measurable impact on both short- and long-term business performance while building a truly meaningful value-based employer brand. One of the most interesting dynamics we are seeing is the growing need for a greater sense of purpose in people’s lives | WELLBEING 660,000 The number of skilled talent shortages in Saudi Arabia – an estimated economic risk of $206bn – by 2030, according to Korn Ferry speci c behaviours that directly lead to positive impacts that bene t customers, the business and sense of purpose. This ideal of purpose is only a table stake in our newly de ned joint value proposition. Employee expectations of a purpose-driven professional environ- ment have multiple layers that extend to how the company cares for me and my family as well as how it respects its societal responsibilities. ‘Employee wellbeing’ is another post-pandemic phrase being thrown around way too loosely. We all know when we are in an environment where an employer has a genuine commitment to me, my family and my future and when they are just paying lip service to a purported ‘corporate value.’ The wellbeing construct varies by sector, company and job level. While fair market pay and a competitive Next >