Are you ready for the future of work?
In today's hiring environment, offering flexible work arrangements has become a baseline requirement for attracting and retaining top talent, putting companies that lag in creating and articulating policies at a potential competitive disadvantage.
getty
To avoid that position and reduce legal, financial, and compliance risk, every business should consider implementing clear, cost-effective remote work policies that have the capacity to evolve over time. When developing a remote work policy, it is best to take a methodical approach. Deloitte recently surveyed over 820 respondents from a diverse range of companies across 45 countries about how they approach the task.
Below we explore the essential factors employers should consider when creating a remote work policy that works for both the organization and employees.
Clarify organizational goals and secure leadership buy-in from multiple functions for success
Creating a successful remote work policy is a complex undertaking that requires buy-in from multiple functions and a clear understanding of the organization’s goals.
Before you dive in on the details, take the time to clarify the goals of your remote work policy. What's your top priority—increasing flexible hours? Broadening employee exposure to other business units or geographies? Reducing your real-estate footprint? You will also need leadership buy-in, with consensus from talent management, mobility, tax, and geographic leadership. This is also your opportunity to confirm that leadership and employee expectations are in sync. In several companies we surveyed, initial efforts were either incomplete or too focused on management, necessitating revision for a more rigorous and balanced approach.
Set guardrails to mitigate potential workforce risk
Developing a rigorous remote work policy is a complex undertaking, which needs to integrate aspects of tax, compliance, global mobility, talent, HR, payroll, legal, data privacy, and technology. In addition, some business functions or geographies may put constraints on remote work—for example, duration of remote assignments or percentage of the workforce that can be remote at any one time.
Once you identify these complexities, establish policy guardrails to mitigate potential risks. Guardrails could address dimensions including eligibility, location, and duration, and give managers clear directions on how to explain, operationalize, and enforce policy parameters. Deloitte’s survey results show that the most commonly cited guardrail to enable cross-border remote working is verifying the employee's legal right to work (immigration status) in a remote location (64%), followed by day thresholds (the number of days an employee can work temporarily in a location), and eligibility criteria (e.g.,, employee's role can be done remotely).
Every business has its own levels of risk tolerance, so while guardrails aren't ‘one size fits all’, they do need to be mindful of tax, corporate responsibility, immigration, and duty-of-care considerations relevant to employees who work remotely.
Take control of your remote work policies: Invest in new capabilities and rethink role and responsibilities
. Communication is crucial, good policies and clarity around how an organization chooses to address remote/hybrid working helps create structure and predictability. An organization’s approach must be explained and implemented well, with clear communication from leaders and managers about both the "what" and the "why," via town halls, webinars, employee portals, helpdesk, employee handbook, comprehensive guidelines, and FAQs. With so many employees curious about possibilities for remote work, it is almost impossible to overcommunicate as they need to understand their employer's stance and policies on remote/hybrid working arrangements. One organization we surveyed expected a few dozen employees to join a webinar on remote work policies; it drew more than 500. We believe the interest in remote or flexible arrangements will only grow, yet organizations have some catching up to do.
A key enablement barrier for many organizations has been identifying where remote work is governed within an organization. Three-quarters of organizations surveyed revealed that HR is the primary owner of remote work policy, with line managers/business unit leaders as the primary approvers of requests.
Organizations may not have all the capabilities and infrastructure they need to implement and track remote work, particularly at the local level. Lacking a comprehensive communication plan and the necessary technology, they can quickly become paralyzed, or run afoul of unfamiliar tax or employment regulations. Third-party providers can help you avoid such blockages with best practice processes and proven technology. The bottom line: Assume that, to manage remote workers, you will likely need to invest in some new capabilities and may need to rethink some roles and responsibilities.
Enforce Policies: Get the tools you need to make consistency a reality
You can have a compelling, clear remote work policy, but without consistent enforcement you might not see the benefits you hope for. While nearly 80% of our survey respondents say they track remote requests or want to do so, only 40% had mechanisms in place—and 21% didn’t know if they did or not.
With rising employee interest in flexible work, organizations must clearly and effectively communicate their approach, to foster structure and predictability in remote/hybrid work environments. Without technology to govern your remote population, the likelihood of inconsistent use and enforcement of guardrails increases, and even a few employees skirting the rules can harm the larger organization. Not knowing where your people are can put your business at risk. Today’s organizations should harness technologies and data that help understand where their employees are working in real-time.
Leaders need to be clear about new responsibilities that remote workers and managers shoulder, as well as the implications of non-adherence.
Keep your talent strategy and employee experience your touchstones as the world of remote work continues to evolve
Many organizations have updated their remote work policies as they learn what works and why—and they will likely need to keep doing so as the world of remote and hybrid work continues to evolve. Survey respondents cited enhancing employee experience (84%), broadening the talent pool (59%), promoting diversity and inclusion (39%), and providing alternate career paths for employees (10%) as key considerations for facilitating remote work — clearly demonstrating its potential as a viable talent strategy.
Deloitte's 2023 Global Human Capital Trends report reveals that the boundaries that have historically influenced the rules of work are falling away. This includes the structure of jobs, where work takes place, and who is eligible for roles. No matter how, or how fast, that happens, your broader talent strategy and the employee experience you aim to deliver, should remain your touchstones.
Traditional workplace models are becoming outdated as employees increasingly seek freedom to choose their work location for better work-life balance and autonomy.3 With a well-crafted policy, you can enjoy the benefits of remote work, attract talent, and mitigate potential risks.
Wherever you are on your remote/hybrid work journey, it's important to establish clear parameters for remote work and, clearly communicate the rules and expectations to employees.
Strong alignment and buy-in to guidelines, tools, and technology can help you enjoy the benefits, and mitigate the potential risks, presented by new ways of working. The future of work is here.
