Working from home picked up dramatically during the pandemic and although some sectors and jurisdictions are now pushing back against it, we are seeing many governments racing to formalise it. This brings significant implications for HR and payroll leaders.
By implementing well-structured remote working policies, forward-looking organisations can benefit from a distributed workforce while also boosting employee satisfaction, productivity and work-life balance. To do so, they need to ensure they are complying with the new regulatory environment by developing potential strategies to better align with it.
Understanding the shifting regulatory landscape
In recent years, there have been drastic changes impacting the global business ecosystem. For example, even before COVID-19, working from home had been a growing trend in many places, such as Brazil and several European countries. Many companies have now implemented a hybrid model with flexibility around working location, while others have established full remote-first models depending on job roles and activities.
Several countries recognise remote work - defined as services rendered predominantly off the employer’s premises using information and communication technologies - in their employment legislation. A right by law to request telework is typically not extended to employees, but voluntary arrangements can be made if both the employer and employee mutually agree.
In Europe, France, Italy, Spain and Belgium all have extensive legislation in place covering remote working arrangements, while Austria has also recently enhanced its teleworking legislation with location-independent options.
With the pandemic accelerating the rollout of remote working legislation, different countries are naturally at different stages of the journey. The European Union (EU) is therefore increasing efforts to harmonise how such laws are implemented across the bloc. The likelihood is that the EU will use some of the larger member states’ models - such as France and Spain - to catalyse developments at a wider level.
One area to watch closely is the EU’s efforts to protect the ‘right to disconnect’. This is a logical discussion to have. If you are allowed to work from home, the next question will be about when you can switch off - or are you ‘always on’?
Currently, the right to digital disconnection is still fragmented across - and outside - Europe, and generally linked to statutory provisions or collective agreements. The European Commission has launched an EU Social Partner Consultation on possible EU action around telework and the right to disconnect, which is part of the ongoing efforts to foster a greater sense of harmonisation across the region.
Recognising the other forces in play
As labour laws around the world evolve, they are doing so against a wider backdrop of change.
There are other trends for companies to consider alongside shifting regulatory forces, including working culture and generational differences.
Flexibility and work-life balance are highly prized by all employees, but especially by the younger generations entering the world of work. Being able to work from home and having flexibility have become an expectation when it comes to attracting new talent. A recent survey by The Times revealed that just 10% of Gen Z employees in the UK prefer to work full-time from the office, with 21% preferring to work primarily remotely, and 17% preferring a fully remote set-up. Looking back, in 2019, approximately 11% of EU employees were working from home either occasionally or regularly, according to an Eurofound’s report. By 2021, the figure doubled to 22%.
At the same time, the financial services sector is a clear example of the tendency for some sectors and jurisdictions to push back against the rise in working from home. While J.P. Morgan recently ordered all staff back to its office, a KPMG survey says that 79% of US CEOs envision employees to be back in the physical workplace in the next three years.
Putting the right policies in place
There is seemingly a huge division of practices and opinions in play. The battle will be between the corporate needs, the new generational demands and the employment legislations supporting flexibility.
Do you order people back to the office for five days a week in an attempt to boost productivity, or do you maintain flexibility and make the workplace more attractive for the brightest talent?
Perhaps the new legislation being developed is lagging behind reality, or what the demand actually is? Is there a risk that new laws will be put in place at the same time as corporate policy reverts to a more pre-pandemic state?
Ultimately, change takes time and when accelerated due to an unprecedented global event, a rebalancing is likely to naturally occur afterwards. Flexible working arrangements do seem to be here to stay, and policies should aim at balancing flexibility with modern corporate strategies focusing on talent attraction, retention and well-being.
Workforce management may be rooted in reactions to larger changes happening in the employment domain, but HR still has an important role to play in the future of work. We’re seeing more and more HR teams adopt more agile set-ups, especially in multinational organisations. They are rolling out flexible yet defined hours, setting firm expectations for response times and putting their faith in results-based approaches.
By fostering trust and autonomy among their workforce and creating a feedback loop on processes and policies, corporates can ensure they are truly ready for the future world of work that is being reshaped in real time.
