Greetings of the day!
This edition will provide you with a comprehensive analysis of the major changes being made to the workplace with the advent of Work from Home. It has paved the way for major labour law reforms in the IT Industry. These changes are being made silently by NASSCOM, which involves amending or abolishing a major (75%) portion of labour laws to suit the IT sector’s “Work from Home Policy”.
The Burning Tale
Several companies are relooking their work from home policies. TCS has announced that by 2025 at least 75% of their employees will be working from home. Infosys is also planning to allocate permanent work from home to 33-50% of its employees. Axis bank is looking to make work from home an integral part of its culture. The bank has decided that its employees will work from home for 2 days or 3 days a week. So, let’s comprehend how these changes will revolutionize the workplace.
Change in attitude of employees & employers
The constant monitoring of the boss in the past will change for the better now. The working relationship will be based more on trust and collaboration. Matt Mullenweg, the founder of WordPress and CEO of Automattic Inc. has outlined the “Five Levels of Remote Working” which depicts the evolution of remote working. His company Automattic Inc. employs more than 1,000 people in 75 countries speaking 93 different languages. So, far we have been designing our life around our work and soon, we would be designing our work around our life.
Change in HR Policies
Salaries need to be restructured to suit the new conditions of service. For eg; Transport Allowance and City Allowances might seem a passé as travel to work will no longer be necessary, work timings, leave benefits, etc. Sometimes employees are expected by their employers to answer calls, messages, and meetings round the clock which is leading to overburdened employees. Some have even reported being marked absent if unable to take a call at odd hours. Hence, the situation demands new HR Policies catering exclusively to remote working conditions.
Impact on Employers
Several companies are inclined towards this change as they have realized that it is a win-win situation for all stakeholders. The firms can maximize their profits by cutting down expenses on buying/renting real estate, transport, infrastructure, cafeteria, recreational activities, etc. Moreover, it gives them the added advantage of hiring cheaper workforce from Tier-II cities for their projects without incurring any additional cost. Companies might opt to hire more gig-workers than full-time employees to cut costs further. The employers seem to be profiting the most from the new work culture.
Impact on Employees
Working from home is preferred by employees as well due to flexibility and most importantly because it saves the time they spend on commuting. According to a report by office commute platform MoveInSync, with more than 2 hours on the road every day, Indians spend more time in daily office commute than people in most countries in the world. However, in the long term, this means one would have to dedicate a separate room or workspace at home. This overlooks the fact that everybody cannot afford the luxury of a big house. Furthermore, when certain components of the salary and a major portion of labour laws will be done away with, it would probably lead to lowered wages.
Impact on the Real Estate
This will likely be a big blow to the real estate sector. Many companies have either vacated or are considering vacating or surrendering a part of the rented office space. Many tenants are also negotiating for a 30-40% reduction in rentals. Many employees who had bought homes near the IT hubs might face even more problems as the real estate value is depreciating and their salaries might not increase due to work from home.
Impact on the Real Estate
This will likely be a big blow to the real estate sector. Many companies have either vacated or are considering vacating or surrendering a part of the rented office space. Many tenants are also negotiating for a 30-40% reduction in rentals. Many employees who had bought homes near the IT hubs might face even more problems as the real estate value is depreciating and their salaries might not increase due to work from home.
Impact on the Mind
It has been often argued by psychologists and work ethic enthusiasts that blurred lines between work and home harm workers and their families. “Flexible work boundaries” often turn into “work without boundaries,’’ which further compromises employee’s and their family’s health and well-being. It is necessary to maintain a healthy balance between the two worlds. Working alone from home can lead to psychological disorders. Companies may compensate for the cost of working from home and the technology may be seamless but there is no real alternative to the happiness of working, sharing, creating and learning together.
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BONUS:- We have made a detailed analysis of the new norm of Work from Home. Click here to watch the video.
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