Companies told to listen to workers to cut attrition

CEBU, Philippines — As the return-to-office (RTO) mandate results in continuous employee attrition, companies are urged to continue dialogue with employees and offer compromises to keep resignations at bay.

“It is easy to see why there is an intense pushback from workers against RTO Initiatives. There are plenty of benefits provided by the work-from-home [WFH] and Work from Anywhere [WFA] set-up, one of which is that workers do not have to worry about the hassle of commuting,” said Mitzi Blancaflor, Associate Director of Office Services – Tenant Representation at Colliers Philippines.

In the past few years, the work environment in the Philippines has adapted

to the circumstances brought about by the Covid-19 pandemic. Workers have started to prefer work-from-home setup because not only does this result in more time and financial savings, but it also gives them the freedom and independence to manage their workday schedules.

Cisco’s 2022 Global Hybrid Work Study found that 66 percent of Filipino survey respondents said their overall well-being improved because they spent less time commuting.

In addition, 74 percent of these respondents said they have saved over 4 hours per week from what would have been spent on sitting in traffic, while 37 percent saved over eight hours per week, explained Blancaflor.

Another benefit of a WFH setup is that daily expenses are much cheaper for the employee as they do not have to worry about the cost of commuting, laundry, and food.

In the same report by Cisco, respondents reported an average income increase of 13.9 percent, with about PHP7,000 saved per week.

Lastly, the notion that a worker gets to control the way they work due to a sense of privacy and having their own work environment is the crucial motivator for WFH enthusiasts.

According to Blancaflor, advocates of the RTO initiative must keep in mind these benefits when choosing where to set up their company and what type of office space they are looking for.

Aside from benefits, associated risks – especially attrition – should also be considered when planning the work setup for new occupiers or RTO for existing companies.

Blancaflor warned that employee attrition is especially costly to many companies, quoting a study conducted by the Society for Human Resource Management which found that on average companies spend the equivalent to six to nine months of an employee’s salary to replace them.

To minimize attrition risk and retain talent, flexibility is key, said Blancaflor.

According to Mercer’s 2022–2023 Global Talent Trends seven out of 10 employees in the Philippines said that not being able to work remotely or hybrid permanently is a deal-breaker when considering whether to join or stay with an organization.

In the same study, 74 percent of companies surveyed are providing flexible working options; this is significantly higher than the Asia (50 percent) and global (56 percent) averages.

On top of the flexible work setup, some companies are also implementing compensation adjustments, mental health initiatives, and learning and development programs to improve their employee’s overall well-being. — (FREEMAN)