New Employee Benefit?
_ Article, October 2022 _
New Employee Benefit?
The benefits of remote work have become a debated topic among the global business community. With many employers now offering such flexibility, is this something you should consider adding to your employee benefits offering?
In 2020, the global business community halted as the COVID-19 pandemic took over headlines, claimed lives, and forced us to re-think our daily routines. Companies that could shut their doors and sent workers home to begin an unintended mass experiment in remote work.
Of course, no one thought working from home would last so long, nor would it become such a fiercely debated topic. Is it good for businesses to allow employees to stay home? Is it good for employees to have work time away from the office?
Now that we have entered the post-pandemic era, businesses are determining what it looks like to work from home. Some consider remote work as a sought-after employee benefit, while others are returning to their pre-pandemic in-office policies.
In this article, we’ll explore the following:
It may be difficult to recall the pre-pandemic era; however, looking at studies conducted by the Harvard Business Review five years ago offers a glimpse at employees’ preferences during that time.
Regarding employee benefits, 88% of survey respondents said they would consider a new position to obtain better health, dental, and vision insurance. In comparison, 80% said they would consider a job allowing them to work from home. The third highest-ranking benefit request was more vacation time.
According to Pew Research, only 20% of workers had the opportunity to telecommute pre-pandemic.
Fast-forward to today’s business environment, where remote or hybrid working options are offered to many employees as part of the Employee Value Proposition (EVP). According to Gartner, some businesses believe that offering remote work options is table stakes to attracting and retaining talent.
How are employee benefits valued in 2022? According to an SHRM survey of employers, 91% of companies are adding mental health care benefits to their EVP. In comparison, 70% will have flexible work options, and 82% will focus on expanded retirement benefits.
Due to the nature of their business, some companies will never be able to permanently offer employees the ability to work from home. According to McKinsey, approximately only 20 to 25% of businesses can shift to remote working scenarios for three to five days per week. This change would represent four to five times more remote workers globally than before the pandemic.
The benefits of remote work vary based on employee location, family status, and business role. The value is truly in the eye of the beholder. Some of the benefits often touted for remote work include:
From the employer’s perspective, the benefits of offering remote work include the following:
Employers have been paying attention to the global employee sentiment that mental health and work-life balance are current priorities. Following a period of quarantine and separation from society caused by the pandemic, mental health needs and employee burnout have come into the spotlight. In some instances, failures to correct these areas have led to mass turnover in specific industries.
Additionally, labor market competition and inflation have placed pressure on businesses unable to increase employee salaries. As a solution to these concerns and employee mental health concerns, global companies have begun testing the concept of a four-day workweek.
Pilot programs have shown that four-day workweeks can be an effective way to lower employee burnout. While there was a slight increase in costs associated with staffing for the off days, those expenses were offset by lower healthcare and unemployment costs, meaning employees were happier and healthier with a better work-life balance.
What did employees choose to do on their extra day off each week? Some decided to spend the extra day with friends and family, while others took time for themselves by increasing exercise, cooking, and new hobbies.
While there are many benefits for employers to provide flexible work options, there are also some challenges that remote work brings.
According to McKinsey, more than 50% of workers want to work from home three or more days per week. This choice seems to be preferred by parents of minor children; however, it is not the preference of the workers from Generation Z, who reported more difficulty feeling motivated and connected to co-workers when placed in a remote working situation.
Other areas challenged by remote work include:
Can actuaries work from home? Why yes, they absolutely can sometimes! At TASC, we promote a healthy work-life balance for our employees and offer a supportive, flexible schedule.
Is remote work something you’ve considered as part of your employee benefits plan options? If you’re unsure how it would fit into your current benefits offerings, please contact us to help design a well-balanced benefits plan offering.