The upsurge in flexible work leads employers to study new pay models

Here’s an interesting piece of news for you all who have been thinking to refashion their cubicles as almost everyone is now working from home. Now, according to several survey respondents reported that these new arrangements will require mixed compensation forms that, for some employers, involve paying employees based on their geographic base when moving. Previously, we did cover that some states might be increasing taxes if you are not in where you work and working from another region. 

Now, North American employers expect the slight increase in flexible working arrangements to continue at least during the first quarter of next year, according to a survey by leading global consulting, brokerage, and solutions firm Willis Towers Watson. Highlighted that about six in 10 employees (59%) currently work at home while 25% work from anywhere, compared to only 14% and 6% respectively last year. Employers expect more than half of their employees (52%) to work from home in the first quarter while 24% will work from anywhere. Just over a quarter of workers (26%) are expected to use a flex-time arrangement next year, similar to 25% who currently do.

As the second wave is here and despite the shift to flexible working arrangements, more than a third of respondents (37%) do not yet have a formal policy or set of principles for managing the arrangements, although 60% of those without formal policies plan or are considering adopting formal measures. Policy by next year. Nearly two-thirds (64%) of those with policies plan or are considering reviewing this year or next to adapt to the changing nature of where work is being done.

The official statement quoted regarding this issue is as follows “The rapid turnaround of employees working at home or remotely is likely to become a constant for many employers,” said Raven Jesothasan, Managing Director of Willis Towers Watson. “While most employers offer flexible work arrangements for safety reasons today, employers also recognize that introducing telework or flexible arrangements can play an important role in retaining talent and maintaining worker participation and productivity even after we weather this pandemic.”

Alternative work arrangements are pushing employers to rethink their approach to payments and rewards. Half of the employers (49%) say new business requirements will require a hybrid remuneration model. As such, two in 10 (18%) redefine pay levels by first determining the market value of employee skills and then applying geographic differentiation based on the employee’s whereabouts; However, six in 10 employers will continue to remotely pay employees the same salaries as in-office employees regardless of where they work. Additionally, 29% offer additional benefits to enhance flexibility in the workplace, including backup daycare, daycare or virtual learning benefits, and subsidies or reimbursement for working from home. Now, let’s see what’s in the future for remote workers. Let us know your thoughts in the comment section below! 

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