Will Remote Work Practices Change in 2021?

Willis Towers Watson surveyed 344 North American organizations in October about their current remote work practices and future remote work plans (1).  Most of those organizations (59%) currently had employees working from home and most (52%) expected that to continue at least through the first quarter of 2021.

Only 37% of the companies had a Remote Work policy in place, and most of those were written this year.  The remaining 60% planned to create a policy within the next year.

One of the tough policy questions is whether to adjust compensation of employees working remotely.  Some multi-location companies pay employees, who work in a high-cost areas, a higher salary than employees working in a low-cost area.  The higher salary could be built into the salary ranges or added as a premium.

So, what should a company do for an employee who reports into a high-cost location but lives in a low- cost area and works remotely?  Most of survey respondents (61%) said that they will pay remote workers the same regardless of where they work, while the others either set pay based on the location of the employee or apply a geographic pay differential.

Other information from the survey included:

  • Employers anticipate that the percent of employees working from home will be reduced to 30% after COVID-19, which is still 6 times higher than pre-COVID.
  • Employers expect a slight net savings due to remote work over the next three years, primarily due to lower real estate expenses.

If your organization is planning to create a policy, below are links to existing policies.  Writing a policy based on existing models may be easier than writing a policy from scratch.

The sample “Telecommuting Policy and Procedure” policy provided by SHRM was written before COVID-19, so it will need to be adjusted.  However, it does touch on several areas that warrant consideration.

https://www.shrm.org/resourcesandtools/tools-and-samples/policies/pages/telecommuting_policy.aspx

Likewise, the California Employers Association provides a sample, “Employee Remote Work Policy and Agreement”, which can provide ideas for creating a remote work policy.

https://www.employers.org/clientuploads/hr_forms/RemoteWorkPolicy.pdf

(1) https://www.cfo.com/workplace-issues/2020/11/remote-work-policies-still-in-development-survey/