The flow-on effects of remote working

New report data has revealed that remote WFH setups reduce the cost of living and protect marginalised groups from workplace discrimination.

People management platform Employment Hero has released the findings of its 2022 Remote Work Report, highlighting the flow-on effects of remote working for New Zealand employees and how it has helped soften the blow of excessive costs of living, rising interest rates, and the housing crisis. The report surveyed 1,000 knowledge workers across New Zealand, whose jobs require them to work predominantly on a computer or with documentation rather than be physically in a specific location. 

The 2022 Remote Work Report revealed 82 percent of respondents said working remotely at least some of the time is better for reducing the cost of living. This is a critical finding given 51 percent of workers surveyed have a second income stream and 30 percent have a second job or side business venture, a testament to how many New Zealand employees are battling with rising costs.

The report highlights how the rising cost of living disproportionately affects younger New Zealand employees, with 54 percent of those aged 18-24 stating they have a second job or side business. Conversely, 60 percent of employees aged 45-54 and 57 percent of employees aged 55+ have no other income streams. When asked what employees missed least about the office, 21 percent named the extra expense of food, coffee, and transport. 

Against this backdrop, it is no surprise that 48 percent of hybrid and remote workers would consider quitting their jobs if their employer directed them to return to the office full-time. Moreover, 81 percent of workers said they would consider a remote work position when job hunting. Once again, the generational divide shines through as 67 percent of 18-24-year-olds say they would likely consider a remote role, while 30 percent of those aged 55 and over say they would be unlikely to.

When asked about the main reason their employer continues to encourage remote working, 35 percent cited the continued risk of COVID-19 infection, while 57 percent noted improved employee well-being or happiness.

The Remote Work Report uncovered that hybrid and remote work also positively impact marginalised groups, creating more equitable employment and protecting them from workplace discrimination. The flexibility of remote working also opens up various career opportunities for people with disabilities or those unable to commute to the office due to their geographical location. 

The report highlights that remote work may have provided momentary relief among those who have worked in a toxic environment, with 44 percent of workers from marginalised groups saying that workplace culture improved while they worked remotely. In addition, 56 percent of workers from marginalised groups agree that remote work protects them from discrimination in the workplace. 

Regarding workplace discrimination, it is clear there is room for improvement in New Zealand businesses, with 57 percent of workers from marginalised groups agreeing they had experienced discrimination at work. While it will take time to resolve workplace discrimination completely, employers can acknowledge and support employees experiencing discrimination by providing remote and hybrid working opportunities while implementing long-term strategies to remove workplace toxicity.

“The writing is on the wall for employers who have a choice when it comes to providing remote working arrangements,” says Alex Hattingh, Chief People Officer at Employment Hero. “There is evidence that remote work provides benefits that an office attendance mandate simply can’t match. It is important to care about employees’ financial health and overall well-being in the current economic climate, and one of the ways to do this is by giving trust and freedom.

“With the cost of living situation worsening, embracing hybrid and remote work makes sense for a happy and productive team – which all businesses aim to achieve. Our latest report supports this as 82 percent of knowledge workers agree that these arrangements help to ease the cost of living. The icing on the cake of giving employees the option of flexible work conditions is that they will thrive more from both a mental health and work-life balance perspective.

“In saying that, working from the office some of the time is not without value. According to our research, working from the office some of the time is not without value,” says Hattingh. “A lack of social connection affects all ages, 18-24-year-olds were 61 percent more likely to state their main reason for returning to the office was feeling isolated at home, while those aged 55 and over were 102 percent more likely to have missed the office camaraderie.

“With the future of work undeniably hybrid and remote, employers need to look at how they can better support their teams to work to their full potential in each of these spaces. This includes providing employees with extra training, career development, and social inclusion strategies to ensure all workers, particularly those from marginalised groups, aren’t disadvantaged in the long term. By listening and providing support to your employees, you get to ensure that their self-fulfillment needs are met – this is the way to pave success and happiness in your business.”

The report is available to download here: https://employmenthero.com/nz/remote-work