Has WFH/hybrid culture enabled businesses to broaden their talent search? What impact has this had on employment and skills availability in your jurisdiction?
Hybrid and WFH working arrangements most definitely offer businesses a broader talent pool in certain industries. White collar businesses with office workers who can perform services outside a traditional work location benefit the most from this trend. Employers can recruit and hire from outside the usual commuting radius, considering candidates residing in other geographic areas and even previously untapped local talent that wants to avoid a daily commute.
Employees working remotely will create additional compliance challenges. Regulatory requirements may include registering the employer to do business where their employees perform services and obtaining a business license in other locations. Employers may need assistance setting up applicable payroll taxes and income tax withholdings complying with employment laws and regulations where the services are rendered. There may be additional ergonomic needs for work from home arrangements, such as standing desks, proper chairs and computer accessories, even when such items are available in a central office location. Privacy concerns and protection of trade secrets may require additional precautions, including software and security measures. A wider range of applicable employment laws may impact company-wide personnel policies, as employers set standards of expected work conduct. Employers should consider these requirements prior to hiring, as requirements may not be economically feasible.
California and the Los Angeles area where I practice offers a broad talent pool to businesses, given the sheer numbers of people in the area. However, the cost of living is high, with many workers engaged in long commutes through congested areas. Wage rates are elevated compared to other parts of the country: hiring remote workers outside of the immediate urban area may help lower payroll costs and reduce an employer's carbon impact.
Proximity bias is becoming a critical issue in hybrid workforces – what do businesses need to be aware of and how can they ensure they are not discriminating against remote employees?
There are at least two types of bias – unlawful bias based on legally protected classifications, and a broader bias against certain employees without implicating equal employment laws. In considering unlawful bias, employers must be alert to and test for adverse impact in employment practices along the lines of any protected classification: whether in hiring, promoting, terminating, equal pay or the conditions of employment in hybrid work. If a protected class of worker is experiencing proximity bias, that might amount to unlawful discrimination. An example along these lines during the pandemic could be a requirement that older or medically vulnerable employees work from home because of their health or advanced age, missing out on opportunities at work.
Looking more broadly at the issue of proximity bias, treating individuals differently as a result of where they perform services may cause dissatisfaction, internal complaints, declining productivity and morale, supervisory challenges and poor retention. A sense of unfair treatment can be a source of conflict among co-workers and lead to human resource issues. Not everyone succeeds in a remote situation requiring personal initiative and provided with less oversight. Performance shortcomings can be more difficult to diagnose and challenging to address appropriately. While many people view remote work as a privilege, others do not, especially if favouritism occurs for those working on-site.
Companies aware of these problems aim to address the sense of exclusion and isolation by implementing practices to enhance internal communication, loyalty, workplace culture and, ultimately, job satisfaction. That is not a simple process and requires innovation in teambuilding and communication to create the interactions and relationships that occur with regular interpersonal contact. There are no easy, off-the-shelf solutions. Digging into this challenge is an ongoing process as businesses adapt to hybrid work arrangements.
How can businesses ensure that their onboarding and training processes remain fair and balanced in a hybrid work culture?
The onboarding and training of employees is critical to the success of any workforce, particularly a hybrid work arrangement. Onboarding may occur virtually or require in-person meetings depending on job requirements, company practices and budget. In all cases, employers should have an intentional and well-designed process in place for new employees that considers the circumstances of their hybrid arrangements.
Initial formal job training typically consists of an overview of: company policies and procedures; work expectations; company culture; use of equipment; perks and benefits; as well as job skills and knowhow. Informal, on-the-job training that naturally occurs when working with others should not be overlooked or minimised. Employers with remote workers need to find ways to replicate the collaborative learning and teambuilding that occurs when people are together in the same place. This is the area where I see the most challenges and frustration.
Learning to work better is an ongoing process for employees. Remote work may require additional communication and oversight to assess an employee's knowledge of job requirements and understanding of company culture. It can take longer, with new methods needed to become acquainted with co-workers and develop rapport. Some employees feel disassociated and unguided because of inadequate interaction with management. That can be a source of problems in employee retention. Managers may need training and coaching on how to communicate, develop teamwork and supervise their team more effectively in hybrid work arrangements.
Top Tip from Rebecca Torrey: Adapting employment contracts to a hybrid working model
The majority of workers in the United States are employed at-will and do not have employment contracts.
In the absence of an individual employment contract, we recommend establishing a written document setting forth the conditions and expectations for hybrid work arrangements.
This includes the anticipated schedule for office/ remote work, timekeeping practices, reporting structure, confidentiality and privacy expectations, channels of communication and avenues to address job concerns.
It also should address the specifics for the employer's payment of business expenses associated with hybrid work, including remote Wi-Fi access, printing costs, phone service, any required travel, uniforms as applicable and other recurring costs as required by law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
