News: Uptick in flexible work arrangements leads companies to consider new rewards models: Study

Benefits & Rewards

Uptick in flexible work arrangements leads companies to consider new rewards models: Study

Some of the savings from expenses connected to commuting to work are being channeled to facilitate the necessary changes to the companies’ total rewards programs, finds study.
Uptick in flexible work arrangements leads companies to consider new rewards models: Study

Companies in Singapore expect the uptick in flexible work arrangements to continue according to a survey by leading global advisory, broking, and solutions company Willis Towers Watson. Employers anticipate that the proportion of full-time employees working from home (37%) in three years’ time will be six times higher than the levels of home working seen three years ago (7%).

“The rapid shift of employees working at home or remotely is likely to stay in the long run for many employers,” said Vidisha Mehta, Head of Talent & Rewards, Singapore, Willis Towers Watson. “While most companies are providing flexible work arrangements for safety reasons today, employers also recognize that offering remote or flextime arrangements can play a significant role in retaining talent and keeping workers engaged and productive even after we move beyond this pandemic.”

Indeed, nearly nine in 10 respondents (89%) cited employee safety concerns as one of the main reasons for providing alternative work arrangements, but over half (57%) were aware that this flexibility could promote employee retention and help to improve inclusion and diversity (51%).

“The good news is that the trend in many organizations was moving in the direction of a flexible approach anyway and the pandemic has just accelerated the speed of change. But employers now need to take a step back and examine the future state of their organization overall and decide how they can make the most of their new agile workforce,” adds Vidisha.

The survey also found that most respondents (84%) say their flexible work policies would not have much of a significant impact on their overall pay budget. However, nearly a quarter (23%) are recognizing that the new requirements for work require a hybrid model for pay and rewards.

With spend on pay unlikely to change significantly, companies are anticipating that any savings they make will come from real estate, where 43% are expecting to reduce their spending over the next three years. More than a third (35%) also expect savings from expenses connected to commuting to work, such as transportation and travel. Some of these savings are being channeled to facilitate the necessary changes to the companies’ total rewards programs, such as equipping employees to work from home or for the health and wellbeing programmes to support employees in a more agile and flexible workplace in the future.

Read full story

Topics: Benefits & Rewards, #RemoteWork

Did you find this story helpful?

Author


QUICK POLL

What is your top focus area for reinventing work in the hybrid world of work?

What are your key focus areas as you continue to reinvent your business amid the ongoing uncertainty? READ the April 2021 issue of our magazine to find out the reinvention story of global leaders.

Read Now