Navigating the Future of Remote Working

1.      INTRODUCTION

According to a Bloomberg report, a man from Texas is suspected of illegally profiting nearly two million dollars in the stock market by eavesdropping on his wife's discussions about mergers and acquisitions deal while she worked from home. While this may be an isolated incident, it underscores the importance for companies implementing remote work models (including full-time home office, part-time in the corporate office, and part-time at home, as well as part-time in company-designated "satellite centers" and at home) to develop long-term and flexible strategies, policies and manage associated risks.

2.      THE DEMAND SIDE OF REMOTE WORK

Regardless of support for remote work, the demand among younger generations is growing: According to a Deloitte 2023 research report, 75% of Generation Z (born between 1997 and 2012) and 76% of Millennials (born between 1981 and 1996) prefer remote work models. Their top five reasons include:

• Saving money.

• Having more time for personal pursuits.

• Being able to focus better on work.

• Spending more time with family.

• A positive impact on mental health.

The latest data shows that Generation Z and Millennials combined make up 58% of the global population, highlighting the significant benefit countries and businesses that offer remote work opportunities have in retaining or attracting new generational talent.

3.      THE SUPPLY SIDE OF REMOTE WORK

According to OECD data, the UK leads the list of countries with the highest potential for remote work positions, with 55% of jobs suitable for transition to remote work. The other top countries include Belgium, Sweden, Finland, Luxembourg, Norway, Switzerland, the USA, Germany, and Slovakia. Then comes a question: does having high potential conversion ratio of jobs to remote work positions equate to attracting many new generational talents? The answer depends on the moderating factors discussed below.

4.      THE MODERATING FACTOR: GLOBAL RANKING OF REMOTE WORK INDEX

The "Top Countries for Quality Remote Work" ranking, republished by the World Economic Forum and devised by the security organization NordLayer, is based on reliable data from the United Nations and the World Economic Forum. This index assesses the attractiveness of 108 countries as remote work destinations across four criteria: "cybersecurity," "economic stability," "digital infrastructure," and "social security." The lower the score (with the lowest being one), the more attractive; the higher the score (up to 110), the less appealing. The top ten of the 2023 ranking are all European countries, with Denmark, the Netherlands, and Germany leading, followed by Spain, Sweden, Portugal, Estonia, Lithuania, Ireland, and Slovakia. France, the USA, and the UK rank 15th, 16th, and 19th, respectively. In Asia, Japan, Singapore, and China are ranked 22nd, 28th, and 39th, respectively.

4.1.  MISMATCH OF SUPPLY AND DEMAND

Among the top ten countries with a high proportion of potential remote work positions, only Germany, Sweden, and Slovakia also rank high as "quality remote work countries." Despite their high potential conversion ratio to remote work, the UK, Belgium, Finland, Luxembourg, Norway, and the USA rank lower. This situation could discourage companies in these “low-ranking” countries from being ready to offer many remote work opportunities to accelerate their provision.

The USA can be a representative example: It offers the most job opportunities globally and employs a significant number of foreign talents, with technology at the forefront, making it one of the countries with the highest potential to transform existing jobs into remote positions. However, it only ranks 16th on the "Top Countries for Quality Remote Work" list, which might be one of the reasons that major US companies are actively encouraging employees to return to the office!

5.      ACTIVE RESPONSES AT DIFFERENT LEVELS TO ALIGN WITH FUTURE REMOTE WORK DEMANDS AND SUPPLIES

5.1.  Directions

Leading the "Top Countries for Quality Remote Work" ranking to attract new generational talent has become a common goal for countries. Advanced economies, besides offering ample job opportunities, still need to improve in several key areas to enhance their attractiveness:

• Cybersecurity: Providing a secure and reliable digital environment, ensuring infrastructure integrity, and enhancing the ability to respond to digital threats.

• Economic Stability: Ensuring predictable living costs, offering quality healthcare, connectivity, and leisure activities.

• Digital and Physical Infrastructure: Establishing stable, fast, extensive network services, convenient transportation options, and secure physical infrastructure.

• Social Security: Ensuring the safety of remote workers, as well as social and personal security.

5.2.  Public policies with positive impact to remote work future

In addition to increasing resource investment, governments are investing in public policies to promote and enhance the development of remote work talent. The list below is arranged in order of resource investment, based on the World Economic Forum's 2023 survey, showing various degrees of public strategy implementation by countries:

• Funding for retraining and skill enhancement: Encouraging employees to learn new skills to adapt to remote work needs.

• Increasing the flexibility of hiring and firing: Creating a more flexible labor market to respond to the rapidly changing work environment.

• Implementing tax incentives and other measures for businesses: Encouraging businesses to raise employee salaries through tax breaks and other incentives.

• Reforming immigration policies for foreign talents: Providing more convenient immigration conditions to attract global professionals.

• Implementing flexible salary systems: Allowing businesses to set salaries flexibly based on work performance and market conditions.

• Adjusting labor laws related to cross-border remote work: Providing legal protection for employees working remotely in different countries.

• Revising domestic remote work labor regulations: Ensuring remote workers in the same country enjoy appropriate labor rights.

• Updating labor laws and licensing regulations related to occupations: Providing a clear legal framework and qualifications for remote work-related occupations.

• Providing childcare services for working parents: Supporting work-family balance through public or private childcare services.

• Improving the quality and accessibility of transportation services: Enhancing transportation infrastructure to facilitate commuting for remote workers when necessary.

5.3.  Company policies with positive impact to remote work future

Businesses should also work with due diligence to align internal policies to support remote working  efficiency and compliance in working from home:

• Enhancing digital security training: Regularly providing employees with training on digital security to ensure they know how to handle sensitive company data securely and prevent leaks of written and verbal communication.

• Providing technical support and resources: Ensuring remote employees have the necessary technical equipment and software support, including stable internet connections, remote meeting tools, and secure data access systems.

• Establishing clear remote work policies: Defining explicit remote work norms and expectations, including work hours, communication frequency, deadlines, and standards for task delivery.

• Implementing flexible work arrangements: Encouraging flexible working hours and result-oriented work models to increase employee job satisfaction and efficiency.

• Strengthening team collaboration and communication: Maintaining connections and communication between teams through regular team meetings, one-on-one check-ins, and collaboration tools.

• Focusing on employee well-being: Providing mental health support and resources, addressing the potential loneliness or stress issues arising from remote work.

• Encouraging continuous learning and development: Offering employees online learning resources and opportunities for professional growth and skill enhancement.