Governance and the Future of Work
by Norah Seddon
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For many years, the ‘future of work’ was talked about as something on the way but not yet here. But COVID-19 has brought the future of work into the present. Given the risks and opportunities involved, Boards and C-Suites need greater oversight about how companies are turning the future of work into reality.
Much has been written about how business leaders should approach the development of ‘future of work plans’. They know that they need to make these plans multidimensional and consider work type, workforce, workplaces and people’s experiences. Plans should also address the changing technology landscape and the fact that the way we work will keep evolving.
Leaders are also told to ensure these plans consider the most important asset at the intersection of all of these changes: people. Future of work plans – and how they are implemented and operated – will affect the organisation’s ability to retain and attract talent.
This is especially so today, given the talent market is more global than ever before, with COVID-19 making flexible and virtual working now the norm rather than the exception.
What about governance?
Little has been written from a C-Suite perspective about the oversight of how future of work plans are developed, implemented and operated. Such high-level oversight is critical given the impact future of work plans can have on your people and your business. If you are on a board or executive committee of an organisation, you need to have a formal governance framework to ensure that future of work plans:
remain fit for purpose
meet your legislative obligation, and
are fair and equitable for your people.
The framework needs to bring together operational matters, risk management and reporting to relevant stakeholders, including the board of directors. It also needs to recognise that the future of work is a two-way street: good for your people and good for business. These goals are not mutually exclusive and there are many ways to co-develop plans to meet them. The governance framework needs to consider both perspectives and ensure that the balance is right for your organisation.
A fit for purpose plan
Future of work plans introduce new ways of working, which often involve cost implications for the business. By making sure the plan is fit for purpose, organisations can manage costs effectively while retaining and attracting talent. A common example is support for employees working from home to set up a home office.
Plans should also consider remuneration structures where roles can be done from anywhere. For example, if someone moves from a high cost of living location (e.g. a city) to a lower-cost location (e.g. a regional area) but stays in the same role, should their remuneration reflect the role or their location? Continuous review of such matters will ensure that plans remain fit for purpose while managing the cost to the business.
A fit for purpose future of work plan is a key tool in retaining and attracting talented people to your organisation. Given that the current talent market is very competitive, the right plan can be a source of competitive advantage. It can also be an opportunity to redefine the talent market that your organisation operates in. Is your talent market only your home country or only countries in which you currently have a presence? Do you want to broaden the net to access talent in other countries? The opportunity for your business to tap into the global pool virtually has never been stronger.
Plans must meet legislative obligations
In addition to being aligned with your organisation’s purpose and values, all future of work plans need to be compliant with relevant legislative requirements. This includes industrial agreements and employment law, tax requirements, superannuation obligations and workplace health and safety legislation.
With the talent market becoming more global, organisations are showing an appetite for virtually employing someone in a different country or allowing current employees to perform their roles from another country. In looking abroad for talent, it’s essential to understand the compliance obligations that arise from having a person in another country. It may be that the opportunity to access workers in other countries does or doesn’t outweigh the cost of compliance.
Plans must be fair and equitable
The implementation and operation of future of work plans needs to be done in a transparent manner. The operation of the plan needs to include exception approval and reporting so that plans are applied in a fair and equitable way. Exception reporting also allows the plans to be continuously reviewed so that they remain fit for purpose.
Questions to ask your team
For future of work plans to be effective, for both employees and the organisation, the Board and the C-suite need to get involved.
The key questions to ask your team are:
What is the governance framework around the future of work plans?
What risks have been considered in the development and implementation of the future of work plans? How have these risks been addressed?
How will plans be reviewed to ensure that they remain fit for purpose and cost effective?
Are there systems and processes to ensure that the plans are compliant with relevant legislation including work, payroll, health & safety, employment law, tax and pensions?
How are plans being communicated to ensure transparency?
How are plans being operated to ensure fairness and equity in application?
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