There has been a lot of talk about work-from-home (WFH) policies over the past few months. Many companies are implementing return-to-work policies now that the pandemic is over and things are back in full swing. However, our executive search experts in Toronto have found that many employees are not too fond of being forced to go back to the office. Additionally, new research has come out about how a WFH policy can predict company success. Below, our executive search recruiters talk about these recent studies and give examples of how a work-from-home policy can influence company success:
Companies Struggle to Attract Candidates and Investors If They Lack A WFH Policy
Having a clear WFH policy is a must today. However, most companies lack in this area. A Mercer study revealed that just 34% of companies possess well-defined policies regarding flexible work schedules, with almost half depending on informal, lax guidelines. Shockingly, 17% of the surveyed companies do not oversee work-from-home arrangements whatsoever. This ambiguous approach has the potential to negatively impact both the recruitment and retention of employees, as well as garner concern from investors.
“Investors increasingly focus on the clarity of WFH policies as a sign of a well-run company. A clear and well-communicated WFH policy shows management that understands modern work needs and is proactive in creating a good work environment,” says Gleb Tsipursky from Fast Company.
And, candidates today have a clear preference for work-life balance. The lack of a clear WFH policy could cause candidates to think twice about working for organizations that lack a WFH policy.
Companies With Flexible WFH Policies Outperform On Revenue Growth: Report
New data is starting to emerge about the financial impact work-from-home policies are having on a company’s bottom line.
According to Scoop’s Flex Index, there is a positive correlation between companies that offer WFH opportunities and revenue growth. Their report found that companies that offer a “fully flexible’ policy saw a three-year industry-adjusted revenue growth rate of 21%. Companies with a more restrictive approach toward WFH only had 5% growth – a 13% difference.
These numbers are particularly interesting for investors. It also shows the positive impact WFH policies and practices can have on the financial well-being of an organization.
How A Work From Home Policy Can Influence Company Performance
While a Work-From-Home (WFH) policy alone may not be a direct predictor of a company’s success, it can significantly influence various factors that contribute to overall performance. The success of a company is multifaceted and depends on a combination of factors such as leadership, strategy, culture, innovation, employee engagement, and adaptability. However, a well-implemented WFH policy can positively impact several aspects that are crucial for success:
- Employee Productivity and Satisfaction: A flexible work environment can lead to increased employee satisfaction and well-being, which in turn may boost productivity. Reduced commuting time and a more comfortable work setting can contribute to a better work-life balance.
- Talent Acquisition and Retention: Offering remote work options can broaden the pool of potential candidates as geographical constraints are minimized. Companies that embrace flexible work arrangements may find it easier to attract and retain top talent.
- Cost Savings: WFH policies can lead to cost savings for both employees and employers. Reduced office space requirements, utilities, and related expenses can positively impact the bottom line.
- Agility and Adaptability: Companies with flexible work arrangements may find it easier to adapt to changing market conditions and technological advancements.
- Technology Adoption: A WFH policy often necessitates the adoption of advanced communication and collaboration technologies, fostering innovation and efficiency.
It’s important to note that the success of a WFH policy depends on its effective implementation, clear communication, and alignment with the company’s goals and values. Additionally, not all industries or roles may be equally conducive to remote work, and a one-size-fits-all approach may not be suitable.