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Middle East firms pay fortune for employee burnout

Cropped shot of a young businessman looking stressed while working late in the office
  • It is estimated that businesses in the Middle East suffer a loss of $100 billion every year on account of mental health challenges due to lost working hours
  • It has also been found that only 15 percent of white-collar workers across the MENA region have access to professional mental health resources

Dubai, UAE–On a late August evening, in 2017, Ahmed Ramadan (not his real name) was at work in his office, in Dubai Media City, giving the final touches to a presentation he was to submit to the higher-ups soon.

It was a routine workday for him, stretching late into the evening, with scarcely a break in between. There was something though the 38-year-old media executive did not feel right about himself that day; he felt an irrepressible urge to run.

He made a quick dash for the parking lot, thirsty and exhausted. While there he went over what really happened to him. The man who was tasked with managing some 20 people in the office was somehow struggling to manage his own affairs.

Ramadan was a classic case of burnout, a mid-level executive weighed down by work, long stressful hours, a friendless office environment, and no social interaction.

Across the Middle East, there are tens of thousands of white-collar workers like Ramadan suffering in silence, in a toxic work environment where even a mention of burnout can make one a laughing stock in the eyes of colleagues.

Caught between the rock and the hard place employees like Ramadan have no one to turn to: a culture that frowns upon people who complain of stress and anxiety and employers who don’t feel the mental health of employees is a serious business to look into.

It is no wonder then that a 2023 report by the Middle East Business Council, part of the US Chamber of Commerce, found that 60 percent of the white-collar workers in the Middle East are experiencing mental health challenges.

A survey found that 60% of Arab executives have experienced mental health challenges at some point in their lives.

The report, titled “Mental Health in the Middle East: The State of the Nation,” said the most common mental health challenges facing white-collar workers in the region are stress, anxiety, and depression.

Overall, the indirect cost of mental health challenges to businesses in the Middle East is estimated to be $100 billion per year, due to lost working hours, flawed productivity, and sick days. Also, only 15% of white-collar workers in the Middle East have access to mental health resources.

A post-Covid Lancet Commission report in London said that mental illness is on the rise each month in every country, costing the global economy up to $16 trillion between 2010 and 2030 without adequate prevention or response.

Co-author of the Lancet report Professor Vikram Patel from Harvard Medical School said most of the costs are indirect from the loss of productivity, education, spending on social welfare, and law and order.

In 2010, around $2.5 trillion was the cost of mental illness globally causing lost productivity, absenteeism, and staff turnover, as per the World Economic Forum. That figure is expected to cross $6 trillion at the turn of the decade (2030).

On the other hand, every dollar invested in employee well-being, across all levels of seniority, has the potential to reduce medical and absenteeism costs by $3.27 and $2.73, respectively.  

These data can’t and shouldn’t be underestimated, especially now as the ‘great attrition’ is affecting organizations, and this time even the C-suite isn’t spared. Almost 75 percent of C-suite executives are seriously considering quitting their current job for one that will better support their well-being, found a 2023 Deloitte survey.

Add to this, a recent Michael Page survey that indicated 50 percent of employees across the UAE are actively looking for new jobs. And for the first time, the number one reason why people are looking at changing their job is for work-life balance and company culture.

The high human cost aside, the financial ramifications associated with employee turnover are massive. For a mid-senior level employee an organization may have to pay around 20 percent of the employee’s salary to replace them, a number that stands at 213 percent for a C-suite level employee, Centric HR estimated.

Yet, leaders are reluctant to speak openly about their mental health.

The high cost of stigma

Three years ago, Aetna International found that 35.8 percent of employees in the UK, the US, Singapore, and the UAE admitted to having “lied” about sick days.

That’s the cost of stigma around mental health.

Five years ago, a UAE-based senior leader from the telecommunications industry started seeing a therapist. For almost two years he paid for the sessions himself, despite having a corporate insurance cover.

That’s because mental health is seen as a weakness, he added, not wanting his name to be mentioned.

Since the pandemic, there has been a rise in awareness about mental health, and many organizations are holding sessions on well-being and even offering medical intervention, if necessary. However, “ground realities are still far from genuine empathy.”

Anyone struggling with mental health issues needs deep empathy and understanding irrespective of their seniority.

The price of being a leader

Even though it’s a fact that it is lonely at the top, a leader’s mental health is hardly broached, something that could potentially lead to a significant talent drain at the C-suite level.

In this context, Naim Maadad, Founder & Chief Executive of Gates Hospitality, said, “It is indeed a massive challenge and unless we start speaking openly about mental health and put measures in place, there will be a lot of casualties impacting lives and business, causing a massive vacuum of professionals globally.”

Maadad also highlighted how organizational culture plays a big role in the way people feel about sharing their professional and personal struggles. And the organizational culture is defined by leaders themselves.“One of my strengths is the fact that I’m open about sharing my views and approachable, and my team members know it very well, which has helped in creating the desirable workplace culture.”

Unsurprisingly, researchers at Harvard Business Review emphatically state that the “best leaders are sharers.”

If anything, leadership is a demanding role. One that requires resilience, empathy, and a sense of purpose. That’s why self-awareness among leaders is crucial not only to understand their strengths but also weaknesses and seek timely expert guidance, where necessary.

But walking the leadership tightrope is a choice, opined James Michael Lafferty, CEO, Fine Hygienic Holding. “It is lonely at the top, but that’s part of the price of being a leader.”

He believes what’s “untenable” is when people take jobs – and every job comes with a price – and then complain about it and demand utopia. The reality is that the more senior an executive the more the compensation, perks, and stress.  It’s hardly ever possible to “cherry-pick” the good and avoid the bad.

Asked if he has noticed a high rate of burnout and anxiety among senior leaders in organizations, Lafferty said, “I do see burnout among senior executives, but I’d not say it’s a high rate. It’s there. We are all different and respond differently to situations. We all have differing levels of stress coping and management. No two people respond to the same stress in the same way. It is individual and must be managed individually.”

“But good leaders are servant leaders, they serve their people, he added. “And what ‘service’ looks like can and should vary based on their situation. People are individuals and their issues are individual. If I care about my people, I will take the time to deliver these kinds of tailored solutions.”

Guilty of ‘well-being washing’?

A UAE-based company with well-defined diversity, inclusion, and flexible work policies recently saw a mid-senior-level employee resign on personal grounds. As anxiety started causing physical manifestations, one of the reasons stated by the employee (on condition of anonymity)is despite the flexible work policy a lot is open to interpretation.

“Despite having policies framed with an intent to create a positive workplace, implementation often becomes challenging. At the end of the day, it all boils down to our equation and relationship with the immediate reporting manager,” she observed.

Office workers and senior executives expressed frustration over little or no work-life balance. Even some marriages are at risk as spouses end up spending more time in the office than with families. Photo by Robin Higgins/Pixabay.

Interestingly, a recent survey conducted by the UK-based Institution of Occupational Safety and Health found that more than half (51 percent) of employees feel their employer is guilty of “well-being washing.”

Such organizations are guilty of overlooking real stress-inducing issues – such as unsustainable workloads and toxic employer-employee behavior – and projecting a well-being-focused image by organizing yoga and meditation sessions and offering free healthy foods.

Indicating how well-being washing is becoming a big issue, Claro Wellbeing indicated that while 71 percent of workplaces observed mental health awareness days, only 36 percent offer any meaningful support, and only 30 percent are actually “considerate” of their employees’ mental health.

Several regional surveys identify the scale of the problem. A 2021 study by McKinsey found that two-thirds of GCC respondents reported symptoms of poor mental health and well-being or had a mental health condition diagnosis. A 2022 study by the World Health Organization (WHO) found that the prevalence of depression among adults in the Middle East is 4.3 percent, which is higher than the global average of 3.8 percent.

Also, a 2023 study by the Arab Institute for Human Rights found that 60 percent of Arab executives have experienced mental health challenges at some point in their lives.

Efforts by Dubai Chamber

The Dubai Chamber of Commerce and Industry (DCCI) has been vocal about the importance of mental health for workers in the UAE. In a 2022 statement, the DCCI said that it is committed to promoting mental health awareness and providing support to workers in the region. DCCI has launched several initiatives to raise awareness of mental health issues and to provide resources to help workers cope with stress and anxiety.

Here are some of the things that the DCCI has said about the mental health of workers:

  • Mental health is an important issue that affects all of us, and it is especially important for workers who are under a lot of pressure.
  • We need to break the stigma associated with mental illness so that people feel comfortable seeking help if they need it.
  • There are several things that businesses can do to support the mental health of their employees, such as providing access to mental health resources, creating a positive work environment, and promoting open communication.

The DCCI’s statements on mental health are a positive step toward raising awareness of this important issue in the UAE. The chamber’s initiatives to promote mental health awareness and provide support to workers are also valuable resources for businesses and individuals in the region.

Here are some of the initiatives that the DCCI has launched to promote mental health awareness and provide support to workers:

  • The well-being in the workplace toolkit, which provides guidance on how to create a positive and supportive work environment for employees.
  • The mental health at work webinar series, which provides information on mental health issues and how to support employees who are struggling.
  • The mental health resources directory, which lists a variety of mental health resources available in the UAE.

The DCCI’s initiatives are a valuable resource for businesses and individuals in the UAE who are interested in improving mental health in the workplace. The initiatives provide information and guidance on how to create a positive and supportive work environment for employees, and they also provide access to mental health resources.

How long before the real change becomes visible?

Here’s some good news. The 2023 Deloitte survey found that driven by an urge to implement real change, 85 percent of C-suite executives believe that organizations should publicly report their workforce well-being metrics.

After all, real change will be visible only when organizations start practicing a culture of compassion and authenticity.

“We recently had a CEO town hall where I shared my greatest regrets and no-regrets as it related to the intersection of private and business lives. I shared experiences of my first marriage and divorce, and what I learned for the second marriage. I shared my saddest times. The team saw this and loved the authenticity. People came forward with a myriad of questions about health, marriage, and so on. This reflected their trust in leadership,” said Lafferty.

Data show that people want authenticity from their leaders. “People are eager to work for a real person, not some faux image someone tries to manufacture about themselves. Hence, a culture of authenticity is crucial where people can be themselves without judgment or fear of judgment,” he added.

“Being well connected to reality, grounded, and human coupled with the ability to make sound decisions for the welfare of the team, business, and self collectively are some things that leaders must take seriously,” Maadad emphasized.

The thing is mental health can’t be measured. It is subtle and anyone struggling with mental health issues needs deep empathy and understanding irrespective of their seniority.

“But I’ve to admit it’s way tougher for a leader to own up about their struggles with mental health. That’s why as opposed to making it agenda-driven or worse still treating it as a fad, genuine conversations around mental health along with constructive support are much-needed to bring about sustainable change,” the telecom industry executive concluded.

The global context and ‘quiet quitting’

A comprehensive 2022 Workplace Survey found 92 percent of employees experienced mental health challenges impacting their work. According to the American Psychological Association, eight in 10 workers say that employer support for mental health is an important consideration when evaluating job opportunities.

A 2022 survey by Deloitte and Workplace Intelligence found that 31 percent of top US executives reported struggling with their mental health, up from 12 percent in 2018.

Another study, by Development Dimensions International, found that 60 percent of leaders feel used up by the end of their workday, and 26 percent of those same leaders anticipated leaving their company within the year.

Also, a 2023 survey by the US-based Society for Human Resource Management found that 44 percent of executives said their mental health had declined in the past year, and 30 percent said they had considered leaving their job due to mental health concerns.

Frustration at work, unhappiness with the job, and feeling undervalued or underappreciated might also lead to quiet quitting, and this trend is rising in the Middle East. Photo by Andrea Piacquadio/Pexels.

The above statistics suggest that mental health is a significant issue for working executives and corporate leaders and that it is having a negative impact on their well-being, productivity, and job satisfaction.

Globally, some of the factors that contribute to the mental health challenges faced by executives include the high demands of their jobs. Executives are often under a lot of pressure to perform at a high level, and they may have to deal with long hours, tight deadlines, and difficult decisions.

In addition, executives can often feel isolated from their colleagues and peers, and they may not have anyone to talk to about their problems.

The Middle East Business Council says that 30 percent of white-collar workers in the region have engaged in quiet quitting at some point in their careers. This means that they have mentally checked out of their jobs, but they have not actually quit their jobs.

Some of the common reasons cited for quiet quitting in the region are unhappiness with the job, feeling undervalued or underappreciated, lack of opportunities for growth and development, and burnout.

Expert Recommendations

A number of experts who specialize in corporate well-being have suggested a few measures to deal with the rising menace of mental challenges among white-collar workers.

  • Creating a culture of openness and support. Organizations should make it clear that mental health is an important issue, and that employees are encouraged to seek help if they need it.
  • Providing access to mental health resources. Organizations should offer employees access to mental health counseling, therapy, and other resources.
  • Encouraging healthy work-life balance. Organizations should help employees to find a healthy balance between work and their personal lives.

To address the quiet quitting problem, human capital experts suggest creating a positive work environment, providing opportunities for growth and development, encouraging open communication, and addressing employee concerns promptly.

(With inputs from the TRENDS Investigation and Research Team)