Report highlights return to offices trend, warns cost of living may drive workplace activism

24th November 2023

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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Law firm Herbert Smith Freehills' 'Future of Work' report shows that 70% of employers expect more work to be done from the office than from the home in the next two years and 47% expect the right to work remotely to become a reward for loyalty rather than a right.

In terms of workforce activism, which is employees advocating or speaking up about workplace issues, 81% of employers believe that the economic downturn has reduced the possibility of activism in the past 18 months.

However, 59% of employers expected a rise of activism in the future, with the cost-of-living crisis being the most likely trigger, said Herbert Smith Freehills employment law expert Jacqui Reed.

Only 20% of employers consider activism to be a positive force, and 97% of employers have moderate to high restrictions on activism.

The report also noted that employers may underestimate the risk of future disputes arising as a result of the use of artificial intelligence (AI), with 60% of employers expecting AI to impact the size and constitution of the workforce, but only 34% expecting AI to trigger employee activism.

Further, mental and physical wellbeing has been a focus for all since the pandemic, as employee productivity and efficiency are negatively impacted when employees are consistently or continuously unwell.

Employers recognised that this affected profits and were taking steps to ensure that health and wellbeing, both mental and physical, were a focus of workplace policies and procedures, she said.

The report found that, since the pandemic, 75% of employees had insisted on more support for their wellbeing, and 54% of employers believed that wellbeing would inform their workplace policies over the next three years.

Additionally, wellbeing at the societal level, including social and environmental issues, was important to employees, Reed noted.

SOUTH AFRICA
In the South African context, the introduction of many corporate sustainability policies indicate to employees that corporations are taking steps to minimise their impact on the environment.

The recent passing into law of the Climate Change Act in South Africa should be used by South African employers to forge ahead with sustainability initiatives, she advised.

There have been changes in employment law policies and practices in various jurisdictions, and South Africa recently enacted similar legislation in the form of the Companies Amendment Bill, which is designed to achieve better disclosure of senior executive remuneration and reasonable remuneration.

These legislative changes, whether in the European Union or in South Africa, indicate that employers recognise that remuneration and pay gaps trigger activism. Pay gaps are prevalent in South Africa and contribute to South Africa having the largest Gini coefficient globally.

Additionally, the cost-of-living crisis was affecting people across the globe and, while employees may believe that macro or micro activism would place them at risk of losing their employment, the day-to-day challenges that employees would continue to face would no doubt result in the return of employee activism in the near future, she said.

Meanwhile, several factors need to be considered when determining whether remote, flexible or hybrid working is appropriate in the South African context. These include the nature of the job, and whether it can be performed from home, safeguarding company culture, collaboration between employees, performance and productivity, and loadshedding.

The number of positions now being advertised as remote, flexible or hybrid was reducing in South Africa and only in specific industries did those positions continue to be available, the report found.

South African employees were resisting the call to return to the office primarily owing to increased costs of travel and the lack of flexibility, particularly for working mothers. However, not being able to operate from home owing to loadshedding negatively impacted productivity and meant that a return to the office was necessary, she noted.

AI in the workplace is a highly relevant disruptor that may, in the South African context, bridge the inequality gap or widen it, depending on its accessibility and availability.

AI was in its infancy stages and its presence in the workplace would increase exponentially in the coming years. While this was unavoidable, it would be critical for employers to take a measured approach to AI and its introduction in the workforce, said Reed.

"Once introduced, employers should assist their employees to become familiar with AI, which will allow them to transition into new roles and work alongside the new technology, thereby securing their positions in the workforce. This will also ensure that activism in this particular sphere is limited as employees feel empowered to move into the future," she added.

The report made five recommendations for employers to mitigate imminent or future risks. The first was for employers to meaningfully engage with employees as a top priority. Further, companies must pilot AI projects prior to implementing them to track their impact on the workforce.

Additionally, employers must consider the impact on company culture before implementing a policy, such as returning to work. Studies had shown that remote working had significant benefits for women who were traditionally the primary caregivers in their families, Reed highlighted.

Companies should also focus corporate responsibility initiatives to ensure meaningful impact on recipients and a company's employees, the report recommended.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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