The pandemic has catapulted evaluation and adoption of different work models en masse. The concept of remote working - notwithstanding the recent scale - is not new, especially in the ‘knowledge worker’ industry which offered similar flexibilities pre-pandemic too. In simple terms, it enabled flexibility to employees for a few days to connect remotely without having to come to the workplace. 

While mass remote working started as a response to the pandemic, the genie is now out of the bottle with respect to the possibilities of working outside of the office. We have seen many organizations make public their plan for the new work model – remote first, hybrid only or back to office. Work models across organizations are evolving considering the paradigm shift that Work, Workplace and Workforce has undergone in recent past.

Work 

Work used to be understood as the amalgamation of tasks one does to deliver a product or service. This has undergone a paradigm shift over time with various factors at work – automation, AI, and the gig economy. A Deloitte study from 2018 showed that about four companies in ten believe automation will be a critical factor in defining jobs in the near future. About 61% organizations were already defining their jobs around AI and robotics. The pandemic threw in yet another loop. Technically skilled work was already being offered a premium, and this trend may continue. However, as technology becomes all invasive while talent gets dispersed, organizations are extending more value to human skills like problem solving, collaboration, cognitive abilities, and social skills.With labor demographics shifting and expanding, work is expected to be purposeful, offer flexibility and collaboration and provide learning and development opportunities. 

Workplace

The pandemic has enabled the workplace to be a fluid concept. From physical premises to Home Office to Phygitalthe workplace is evolving faster than anyone had predicted. It has forced organizations to create synergies in their processes to unify employees and offer enhanced employee experience for a dispersed workforce.

The change from traditional workplace should not be looked as a mere measure to reduce real estate cost and increase efficiency. Organizations will have to reinvent the percolation of culture with the scattered workforce. Workplace culture has an impact on both, innovation and business results and teams will become critical to foster culture and engagement in the new normal.

Workforce

The shift in workforce trends has been most significant in the past two years. We now have at hand not just the ‘professional’ in the individual but the whole person – physical, mental, and emotional. The medical and mental crisis that we all underwent is making an impact on both the individual as well as the collective of our workforce. Employees are not just looking for a promotion or better pay package anymore. They are expecting, and in most cases demanding flexible work hours, wellness programs, more time-off, and benefits. 

The advent and rise of Gen Z in the workforce will also bring about further multigenerational issues for organizations to deal with. Born and raised in completely fast paced and technology centric environment, they expect more of digital, collaboration, flexible workplace and approach learning and training a little different.

New normal and the regulatory landscape

While everyone is headed to formalize their new workplace of the future, as a compliance and risk professional I must mention that it is important to keep an eye on evolving regulations too. Countries across the globe are at different maturity levels on regulations pertaining to remote working. Several European countries for instance, have regulations with clear benefits and entitlement defined for teleworking that are to be provided to employees. On the other hand, Indian labor and employment legislations are presently not equipped to regulate and resolve issues that may arise out of the remote working scenario, and do not provide for any specific guidelines that may regulate the employer-employee relationship in the wake of this new normal.

Factors like engaging workforce in a country where the company is not present, could create permanent establishment risk while in an operational location not knowing the right State/City of the employee could create issues in payroll and tax compliances. Similarly, while working from home, areas like data privacy, health and safety obligations, productivity and monitoring tools, benefits coverage, and mobility especially in the case of frontier working, contracts and policies may all need a degree of due diligence for country specific nuances to make sure the new normal we choose for ourselves is successful and sustainable.

With careful planning, employers can implement a remote and hybrid work model to meet business and employee needs. These models if evaluated right, will allow employers in building employee friendly brand with flexible work culture, will aid in recruiting and retaining diverse talent and help in innovating new talent models thus delivering value to clients and all the stakeholders. It’s important for organizations to evaluate the right model in their context, and how ‘flexibility’ will work for them.

In addition to the evaluation of a model that works for them in their relevant geography, organizations should also focus on investing in technology and building infrastructure to manage various working models that would help them in providing compliance assurance and in meeting all compliance obligations and reporting. 

As an increasing number of employers consider flexible work options to attract talent, build resilience and/or manage costs long-term, it will be critical to consider requirements on a country-by-country basis. With careful planning, companies can implement a remote work model that meets business and employee needs and compliance obligations in the new normal.