Introducing Workwell PCS. Part 3: SOCIETY
A greater shift towards working from home also has major implications for inequality, which can’t be ignored. (Nick Bloom, 2021) (1)
A major issue is the risk of creating a two-tier workforce. “The problem is distance bias, which is about the preference we all have for what is closest to us in terms of time and space. This means we have a bias towards those in the same room as us, which can lead to unconscious discrimination.” (Toby Mildon, 2022)(2)
Welcome to part three of our series introducing you to the thoughts and insights behind Workwell’s People | Climate | Society approach towards developing new ways of working and workplace strategy.
Businesses are considering the impact of home working on productivity and wellbeing. But what will the societal impact be?
Why society?
Post pandemic, the focus of most workers more than ever is balance and wellbeing, but they also want purpose in their roles and to work for a business that is ‘doing the right thing’ for the planet, society and its people. Businesses are now increasingly under pressure to make this part of their mission, values and employee proposition, and demonstrate it through ESG measurement(3).
Whilst there have been many benefits to the shift in working patterns post pandemic, research has shown that hybrid working may disproportionately affect underrepresented groups, who will more regularly select to work remotely, such as parents, disabled, neurodiverse, LGBTQIA+ or Black and ethnic minorities (4). They may find visiting the workplace a more difficult work environment to work from or get to. As such, it may lead to underrepresentation in the physical workplace, they may miss out on face-to-face networking and career development opportunities. The culture of the organisation is impacted by their lack of physical participation, and they may be less likely to engage remotely via video calls.
To foster an inclusive culture, employers need to ensure a level playing field with equal opportunities for progression and good quality, fairly paid roles available for all employees, regardless of where, when or how employees are working.
Other factors?
The cost-of-living crisis is disproportionately impacting lower income families, who are experiencing higher inflation and an increase in lower cost food prices (10). These employees are also least likely to work remotely, and therefore may still have commuting costs to consider (10).
There is still a significant gender pay gap and a perceived large ethnicity pay gap. The gender pay gap has been declining slowly over time, falling approximately a quarter over the last decade. In 2021, among all employees, the gender pay gap increased to 15.4%, from 14.9% in 2020, but is still down from 17.4% in 2019 (7). Unfortunately, employers will not have to publish their ethnicity pay gaps, after the government recently reversed a previous commitment to do so and decided against making it mandatory. The Department for Business, Energy and Industrial Strategy (BEIS) will instead publish guidance “in summer 2022” that will help employers who want to report their ethnicity pay gaps voluntarily (8). This will set back any improvements that could have been achieved in the equality of pay for black and minority ethnic employees.
Some hybrid working societal impact facts…
There is still a demand for part time and reduced hours working, hybrid working is not enough to meet all employee’s needs, ‘family friendly’ employers who understand the demands of working parents and carers will attract talent.
COVID-19 has increased the unequal burden of care carried by women, causing more women than men to leave the labour market during the pandemic and an increase in the emotional load of parenting(12-14)
Minority groups may be hidden from the workplace because they feel it is easier for them to work from home, resulting in a reduced sense of belonging
More than half of employees in a study said a flexible employer would positively encourage employees to stay and they would recommend an employer because of their family friendly policies (15)
Remote working can lead to work intensification, social and professional isolation and is associated with perceived threats in professional advancement.
With the cost-of-living crisis, there is an increased need for financial wellbeing support and financial planning education from employers.
“Women are often disadvantaged relative to men in the workplace, it’s becoming clear that hybrid work arrangements often create power differences between those who are in and out of the office, and there are good reasons to expect that people who work remotely are likely to be disadvantaged, regardless of their gender.” (Martine Haas , 2022) (21)
What do we need to consider?
This is not an exclusive list, but just some of the variables that could improve the employee and organisational societal impact.
Hybrid working strategy – to ensure engagement in the workplace from all employees.
Clear hybrid meeting etiquette – to ensure all employees have a voice.
Recruitment strategy to widen talent pool and attract more diverse candidates.
All roles and promotion opportunities advertised internally and externally.
Clear and transparent career progression / career path.
Flexible, reduced hours and hybrid working options on all vacancies.
Open and transparent internal networking.
Mentoring and sponsorship.
Support for local charities and CICs that matter to your employees.
Engagement with local schools, colleges and universities.
Placements, internships and apprenticeships.
Employee Resource Groups.
Employee engagement strategy – including regular pulse surveys.
Gender Pay Gap and Ethnicity pay gap reporting.
Data and metrics to measure current position and improvements.
Self ID campaign – to measure your current position and improve it.
These organisations that can offer advice, frameworks and guidance:
How to encourage employees engage in societal outcomes and CSR activity?
Employers shouldn’t assume they know what employees want when it comes to CSR, they may not want to spend their time painting a community centre or clearing rubbish. Engage with them on what they want to do, what core skills do they have that they could share, for example developers sharing coding skills with local schoolchildren. Or employees using their skills to mentor members of the local community, or volunteering for existing charities that fit the employees’ purpose. Whatever you choose, engagement, feedback and communication is key.
Our work always involves helping businesses look at the wider picture.
Our next insight article will focus on intersectionality, it will give you the lowdown on the key elements to consider, how they impact your employees and will touch upon some of the ways you can mitigate any risks. Follow us on LinkedIn to see when it is published.
References:
Bloom, N. (2021) The Guardian [online]. Available from: https://www.theguardian.com/commentisfree/2021/mar/21/research-working-from-home
Mildon, T. (2022) Computer Weekly [online]. Available from: https://www.computerweekly.com/feature/Avoiding-the-two-tier-workforce-in-the-third-workplace
Jiang, L., Ferguson, A., Yeo, J., and Bailey, R. (2020) ESG as a Workforce Strategy. Marsh & McLennan [online]. Available from: https://www.marshmclennan.com/content/dam/mmc-web/insights/publications/2020/may/ESG_workforce_strategy_Part_I.pdf
Ellingrud, K., Krishnan, M., Krivkovich, A., Robinson, N., and Yee, L. (2022) Diverse employees are struggling the most during COVID-19. McKinsey [online]. Available from: https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diverse-employees-are-struggling-the-most-during-covid-19-heres-how-companies-can-respond
Karjalainen, H ., Levell , P. (2022) Inflation hits 9% with poorest households facing even higher rates. Institute for Fiscal Studies [online]. Available from: https://ifs.org.uk/publications/16058 https://www.instituteforgovernment.org.uk/explainers/cost-living-crisis
Barrero, J, M., Bloom, N., and Davis, S, J. (2021) Why working from home will stick. National Bureau of Economic Research Working Paper 28731 [online]. Available from: https://wfhresearch.com/wp-content/uploads/2022/06/WFHResearch_updates-May-2022-website.pdf
Gender pay gap in the UK (2022). Office for National Statistics [online] Available from: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2021
Silkin, L. (2022) Ethnicity pay gap reporting will not be mandatory. Lewis Silkin [online] Available from: https://www.lewissilkin.com/en/insights/ethnicity-pay-gap-reporting-will-not-be-mandatory March 22
Mallett, O. , et al (2020) Where does work belong anymore? The implications of intensive Homebase working. Gender in Management: An International Journal [online]. Vol 35, pp.657–665. Available from: Where does work belong anymore? The implications of intensive homebased working.
Blundell, R., et al. (2020). COVID-19 and Inequalities. Fiscal Studies [online]. Vol 41, pp. 291–319. Available from: COVID‐19 and Inequalities*.
POST (2020) [online] available from: COVID-19 Areas of Research Interest.
The Fawcett Society (2020). [online] available from: Coronavirus Crossroads: Equal Pay Day 2020 report.
PriceWaterhouseCoopers (2021). [online] available from: Women in Work Index 2021.
Understanding Society (2020). [online] available from: Working from home not an option for most working class women.
Working Families (2019) Modern Families Index 2019. Bright Horizons [online]. Available from: https://www.workingfamilies.org.uk/wp-content/uploads/2019/04/BH_MFI_Employers_Report_2019_Final.pdf
Charalampous, M. et al (2019). Systematically reviewing remote e-workers’ well-being at work: a multidimensional approach. European Journal of Work and Organizational Psychology [online]. Vol 28, pp. 51–73. Available from: Systematically reviewing remote e-workers’ well-being at work: a multidimensional approach.
Wheatley, D. (2020) Workplace location and the quality of work: The case of urban-based workers in the UK. Urban Studies [online]. pp.1–25. Available from: Workplace location and the quality of work: The case of urban-based workers in the UK.
Wheatley, D. (2017). Employee satisfaction and use of flexible working arrangements. Work, Employment and Society [online]. Vol 31, pp.567–585. Available from: Employee satisfaction and use of flexible working arrangements.
Kelliher, C. et al. (2010) Doing more with less? Flexible working practices and the intensification of work. Human Relations [online]. Vol 63, pp.83–106. Available from: Doing more with less? Flexible working practices and the intensification of work.
Mudditt. (2022) The case for a shorter workweek. BBC [online]. Available from: https://www.bbc.com/worklife/article/20210819-the-case-for-a-shorter-workweek
Haas, M. (2022) Women face a double disadvantage in the hybrid workplace. Harvard Business Review [online]. Available from: https://hbr.org/2022/03/women-face-a-double-disadvantage-in-the-hybrid-workplace
