DOHA: A key research asks the Qatari government to back family businesses that dominate the local private sector economy as strategic assets. The research claims that Qatari family businesses demonstrate behaviours that can boost profits by 30 percent.
Family firms tend to encourage more loyalty, productivity and more enthusiasm from their employees than their non-family counterparts, according to the research.
These factors, classed as ‘employee engagement’, can result in a 36 percent increase in overall performance, says the research from Oxford Strategic Consulting (OSC).
Amid a 50 percent reduction in oil prices, the region’s human resources appear to be the most viable investment option to create a stable economic future.
Like oil and gas, family firms that accounts for some three-fourths of the region’s private sector economy, are ubiquitous across the GCC.
Unique strengths of these family businesses represent proven advantages for the region. For instance, nearly 50 percent of these family firms operate in more than five sectors.
This means that they can spread risk, and are more resilient to downturns in one sector, and can rapidly move into growth markets.
Qatari family business leaders should view ‘employee engagement’ as a key priority.
Investing in more loyal and enthusiastic staff can achieve huge returns for relatively low costs, which can help to create more stable economic future for Qatar.
This, because recent researches shows that better ‘employee engagement’ can result in a 40 percent increase in customer satisfaction.
Qatari family firms, on their part, must ensure that their future generations of leaders are developed to the highest level—which doesn’t necessarily mean adopting US or UK styles of leadership. Family firms outperform non-family firms by an average of 15 percent.
The Peninsula
