80% of companies anticipate remote work as the new norm on the labour market

Most companies (80%) respondents to PwC’s global survey ”The future of remote work” shows that adopting remote work is the new norm on the labour market, and over 53% currently have created and implemented arrangement policies in this respect. Of the remainder (47%), more than 50% of companies anticipate that they will refine or implement a remote work arrangement policy by the end of 2020.

The top three priorities for enabling remote work arrangements are health and safety of employees (70%), enhancing the employee experience (65%) and attracting and retaining key talent (60%).

“Remote work has become an essential part of the new normal, with companies being forced in many cases to adapt in order to continue their business. Initial concerns that labour productivity will decline were infirmed after the first months of the pandemic, but it remains to be seen whether the trend will continue in the medium to long term. Many employees began to have negative feelings about the lack of direct interaction with partners and colleagues and want a return to the office. In any case, working remotely will be a long-term option and most companies will continue to apply it “, says Daniel Anghel, Partner and Tax and Legal Services Leader PwC Romania.

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The definition of “remote working”

45% of companies define remote work arrangements as employees “working outside of their home office or work location, without any cross-border movement”. However, this is followed closely by 30% of companies defining remote work arrangements as employees working outside their home office, with both domestic and international cross-border movement anticipated and/or permitted.

Regarding the salary policy, 80% of companies are not making any salary adjustments during the remote work arrangement period. Over half of the respondents are not providing any allowances, reimbursements, or mobility support for a remote work arrangement.

“Employers must take into account the possible tax consequences, as well as those in the field of social contributions that work in another country can have for both employers and employees. At the same time, the aspects related to the labor law and to the health and safety at work of the employees in the respective country must not be ignored”, said Irina Nistor, Director Global Mobility, PwC Romania.

The majority of companies are anticipating their remote workers will have access to an office. However, 45% of companies will not require employees to go into the office, and 21% are anticipating a hybrid approach between remote working and office workdays.

The survey was conducted on more than 300 global companies.