Who should cover “the cost of work?

We’re seeing a shift towards more digital workforces, started by the Coronavirus pandemic but continued as chronic talent shortages force organisations to engage in a truly global search for skills. And yet, many organisations are requesting that workers return to the office: 64% of CEOs globally anticipate a full return to the office by 2026.

In Belgium, our Salary Guide data showed that 32% of employees are currently working fully in the workplace. Over 75% of employers believe that this work model will stay the same in future.

While it’s most unlikely that we will either go to a fully remote or 100% in-office working system, many employees are being asked to work from the office more frequently. But for some, the time and resources afforded to come into the office is causing tension.

In a survey of nearly 13,000 people, 76% stated that employers should cover the cost of work. Expenses range from child or pet care, to commuting costs and food. Some also associate the ‘emotional’ cost of being away from home.

The mileage allowance for Belgian employees using their own car for professional purposes was set at €0.4259 per kilometre from 1 October 2023 until 31 December 20231. (source )

But is this a reasonable expectation of employers?

Making the case for covering the cost of work With talent in short supply, covering the cost of work could become a key differentiator in a competitive market.

As workforces become increasingly blended, with contingent workers operating alongside full-time employees, there’s a growing awareness that this isn’t the norm everywhere, for everyone. Many contractors, for example, can claim back the cost of travel – although often in place of other ‘perks’ that permanent employees benefit from.

Covering the cost of work can also have benefits for employers. At a time when organisations are struggling with high disengagement rates and low productivity levels, removing cost barriers could encourage people back into the office for the right reasons – connection, collaborative thinking and a stronger culture.

Is covering costs a step too far for companies?

Having taken a more active role in the financial, emotional and mental well-being of their workforce over the last few years, it’s becoming more difficult for organisations to draw the line. But faced with ongoing economic instability, cost control has become a critical priority for CEOs in the year ahead.

Many employees see covering the cost of work as a part of employment. If employees have the option to work from home or from the office, they should bear the consequences of their decision. For example, if an employee chooses to work from home, they should pay for their own internet, phone and home office expenses. If an employee chooses to work from the office, they should pay for their own commuting, childcare, and clothing expenses.

There’s also a key question around equity. If ‘in-office’ workers receive a subsidy for their expenses, remote workers may feel at a disadvantage, especially if the decision to work-from-home is dictated by caring responsibilities, for example.

?

How can organisations balance the needs and expectations of their employees with the realities and challenges of their business?

Here are some practical tips for employers who are unsure what to do:

1.?????? Conduct regular reviews of your Employer Value Proposition (EVP): Debates such as the ‘cost of work’ arise, often without warning. Organisations need to ensure that the benefits on offer always align with employee expectations. This will require timely reviews of your EVP, and perhaps even Contractor Value Proposition (CVP). You may need to make some trade-offs or adjustments to your priorities, such as reducing your office space or overhead costs, or reallocating funds to ensure you aren’t relying solely on a competitive salary to compete for talent.

2.?????? Put flexibility first: If organisations were asking people to come into the office when their job could be conducted remotely, they should consider covering the cost of work. The answer lies in priorisiting flexibility to ensure people are enabled to work how and where they are most productive. Placing the choice back in the hands of your people is more likely to create a collaborative solution, rather than a source of conflict.

Looking ahead The ‘cost of work’ is the latest layer to be added to the increasingly complex debate around where work gets done, as organisations battle to maintain productivity, offer flexibility and control costs.

There is no ‘silver-bullet’ solution. The decision to cover costs will be driven by a unique blend of specific talent demands and organisational ambitions – as well as the availability of financial resources. We’d recommend that organisations take this opportunity to review both their EVP and CVP, ensuring it’s fit for purpose in an ever-evolving world of work.