As a small nation heavily dependent on foreign trade and investment, Singapore relies on the ‘tripartite partnership’ model, which was established in 2006 and consists of the Ministry of Manpower, National Trades Union Congress, and Singapore National Employers Federation to improve the relationship between unions, employers, and the government. This article is about flexible work arrangement for employers.
What is flexible work arrangement?
The Flexible Work Arrangement (FWA) will be effective 1 December 2024.
This arrangement is designed to support the work-life needs of employees while maintaining businesses\’ operational and productivity requirements through (3) three categories:
- Flexi-time: staggered working hours, flexible shifts and compressed work schedules.
Employees can work at different times without changing total hours and workload.
- Flexi-place: telecommuting; working from home
Employees can choose to work from location outside the office or telecommuting (using technology like email, messaging and more) or hybrid work.
- Flexi-load: part-time; job sharing
Employees can choose from different workload levels, with pay reflecting the chosen level.
The need for FWA
Singapore is experiencing an ageing workforce; low birth rates have also contributed to a steady decline in young people entering the labour force. The proportion of working adults aged 55 and older has increased from 19% (2012) to 27% (2022), a trend that will unlikely change.
The ageing population has increased the need for caregiving. A report states that about 260,000 individuals of economic age remain outside due to this phenomenon.
The recent pandemic of COVID-19 has further illuminated the topic of work-life balance to protect individuals’ mental well-being and encouraged many to rethink traditional work styles.
Before you (employers) decide which arrangement best suits your organisation, it’s important to know the nature of your work. Research the various trends of the labour sector and the type of benefits that will help your company stand out in a competitive market.
Who are eligible to make a formal request for FWAs?
The Guidelines state that if an employee fails to meet these requirements, the request does not need to be considered by employers and will not be covered by the tripartite guidelines. Take note that FWA does not apply to employees serving notice or not passing probation.
However, each situation depends on a case basis and is up to the employer’s discretion.
As Employers, here is what you need to take note of flexible work arrangement and prepare:
Develop a protocol for employees to initiate formal FWA requests:
Employers should create a standardised process for employees to submit their requests to ensure effective, flexible working arrangements. You may consider creating or using existing digital platforms or physical document.
The request are to be in writing and contain the following:
- Dates requested
- Type of FWA requested, frequency and duration
- Reasons of request
Is there a salary adjustment when negotiating a flexible work arrangement?
According to the Minister of State for Manpower, Gan Siow Huang, flexible working arrangements do not equate to a pay cut if employees’ work output and productivity are not affected.
FWA requests and how to respond:
Employers should exercise fair consideration:
Employers should evaluate all received requests in a fair manner, and provide your written decisions within two months.
Provide written reasons for rejected requests:
Employers have the right to decline Flexible Work Arrangement requests that could significantly:
- hinder productivity/performance: It causes a significant hindrance to delivering high-quality work (internal and external) or potentially impacts customer satisfaction.
- cause a foreseen increase in expenditure: if it negatively impacts the company’s expenses.
- present operational challenges: not doable or impractical due to the nature of work, requires the needs for additional manpower hiring or challenges in modifying other employees’ work arrangements.
Unjustifiable grounds for rejection:
- Organisation and management does not believe in the idea of FWA.
- Organisation tradition or practice to not implement FWA
- Leaders/Managers prioritise physical presence over employee’s proven ability to deliver results, regardless of work location.
How does flexible work arrangement benefit employers?
- Improved Employer Brand
A survey concluded that 79% of respondents would be more committed to their employers with such options. An organisation that embraces FWA can potentially attract and retain top talent by being known as progressive and employee-first.
2. Increased Talent Pool
Employers can recruit top talent from a wider geographical area and will not be limited to commuting distance. There\’s an increase in the local and younger demographics\’ interest in organisations that offer such flexibility.
3. Employee Satisfaction and Retention
A staggering 41% of respondents said they would not accept a job if they did not have flexible work hours; 27% said they quit due to the inflexibility of work hours and location. Flexible work arrangements will boost employee morale, satisfaction and loyalty toward the organisation.
4. Enhance Business Continuity
A flexible work policy can be your organisation’s shield against unexpected disruptions. Harvard Business Review has found that companies with remote work capabilities weathered disasters far better, maintaining a quarterly revenue of $70 million over unprepared firms during crises.
Building a Strong FWA Policy for:
- Ensure transparency
The policy should provide an overview of available FWA arrangements, eligibility criteria, any limitations that may apply, and the process for request submission. Your FWA policy must be made readily available to employees. Encourage open communication throughout the initiation process to clarify doubts or concerns to ease communication and understanding. For new employees, you may want to include a session explaining the policy during their onboarding.
2. Effective FWA rollout
To ensure a successful implementation of FWA, ensure adequate support is provided to leaders and employees. People and platform: It is important to invest in technology infrastructure, including laptops instead of desktops, cloud-based software to prevent data breaches or loss, collaboration tools like monday.com, Trello, and Notion, and communication tools like Zoom or Microsoft Teams to ensure all employees can work effectively and productively.
i. Performance Evaluation:
Set clear goals and expectations for every employee from the get-go to ensure they develop and excel in their roles using the SMART goals system:
- Specific (simple, significant).
- Measurable (meaningful, motivating). Achievable (agreed, attainable).
- Relevant (reasonable, realistic, results-driven).
- Time-bound (timely, within a certain duration).
Evaluations encourage accountability within each individual to work towards the objectives set out for them. When employees are involved during this process, they are more likely to more inclined and driven to achieve them. Encouraging feedback through individual or team meetings to stay on track with the progress made or areas of improvement–this serves as an opportunity for both parties to discuss and find a resolution, overcomes creative blockage and a helpful tool for long-term success.
ii. Employee Guidance and Training:
Consider hosting an interactive workshop to help employees and managers understand the FWA policy, procedures, and best practices for navigating this implementation. Grab hold of this opportunity to address any concerns that might crop up.
Such training will enable employees to understand their responsibilities and what is expected of them. At the same time, managers will also gain valuable insights into effectively managing their teams in a remote setting, communicating their expectations and requirements and addressing any challenges.
Stay proactive by performing regular reviews on your FWA policies to ensure their relevancy and fairness are aligned with your organisation\’s goals and values.
Stay tuned for our upcoming free downloadable templates that will give you a head start on implementing FWAs smoothly.
