As regional tensions reshape businesses, experts reveal what leaders should do

As regional tensions create uncertainty and reshape businesses, experts unpack the psychology of anxiety and the mistakes companies make that damage trust

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As the ongoing US-Israel-Iran war continues to create regional instability and businesses in the UAE are navigating difficult times, the question on everyone’s minds is the same: Is my job safe?

According to Tayfun Topkoc, enior vice president, International at PeopleStrong, uncertainty today is not just affecting business sentiment but reshaping what employees expect from leadership. "Employees are less unsettled by change itself, and more by how clearly and decisively organisations respond to it," he said. "It is not change that drives anxiety, but the absence of direction and authentic communication."

Michelle Raymond, CEO and founder of The People's Partner, has seen this play out firsthand in her conversations with employees across the UAE. "The biggest impact is psychological," she said. "People can cope with a lot when they feel informed and protected. But what seems to damage confidence is not just uncertainty itself, but uncertainty without context."

She noted that inside organisations, the anxiety tends to show up in quieter ways first. "Employees become much more cautious. They're starting to ask themselves whether growth plans will pause, whether restructuring is coming, whether promotions will be delayed, or whether they need a back-up plan."

Common mistakes

When organisations are forced to restructure quickly, mistakes can damage long-term retention. Topkoc warned that the biggest error is solving only for the short term at the expense of long-term people capability. "When restructuring is treated purely as a cost response, organisations risk weakening the talent foundation they will need to recover and grow," he said. "When employees do not understand the rationale behind change, uncertainty spreads across the organization, and the best talent, who always have options, begin to look elsewhere."

Raymond identified three common mistakes. "The first mistake I'm seeing is companies thinking only about the numbers. If leaders focus only on numbers and fail to manage the human impact properly, they may protect short-term cash flow while damaging long-term retention."

"The second mistake is going quiet. In periods like this, employees will fill any silence with their own narrative of events, and that version is usually worse than reality. The third mistake is making knee-jerk cuts without thinking through capability."

Talent retention

So, what does a smart talent retention strategy look like in this climate? Topkoc said the focus should be on relevance, not just reassurance. "Employees are looking for stability, but equally for a clear path to growth and continued professional relevance. The question on every employee's mind is not just 'will I keep my job,' but 'can I build a meaningful future within this organisation?'"

Raymond gave the example of companies that are getting it right. "A good retention strategy right now is visible steadiness. The organisations getting this right are the ones creating calm through clarity, not pretending there is no pressure."

She cited Burjeel Holdings as a useful public example. "Even during the current regional tension, the company has continued to expand, with its leadership speaking openly about resilience, adaptability, and long-term thinking."

She also noted that Bloomberg and other financial institutions have allowed staff in Dubai to temporarily work from outside the region, with the hope of returning to the same pay and same level when things improve.

Honest advice

For employees feeling the weight of uncertainty, both experts offered grounded, practical advice. Topkoc urged workers not to automatically read uncertainty as decline. "What we are seeing across the region is a broader realignment of roles and skills, a natural evolution as industries adapt to new realities,” he said. :While some roles may come under pressure, demand for relevant, future-ready capabilities continues to remain strong across the Middle East."

His advice was to stay adaptable. “Continue building skills that matter, remain aligned with your organisation's evolving priorities, and stay open to internal opportunities that may not have existed before," he said.

Raymond added: "Stay calm, but stay aware. Do your job well, make your value visible, and keep your options open. You don't need to panic, but you do need to be prepared."