Remote work: How companies make more money

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THE FUTURE OF WORK: As the debate over remote work intensifies, employees now have a new argument in their arsenal: higher revenue growth. A company that runs a "flex work" gig well, in effect, has a competitive advantage. According to a report released by Scoop, a hybrid work management startup, flexible work arrangements contribute to increased revenue growth. Image Credit: Shutterstock

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IMPACT ON GROWTH RATE: Companies with fully flexible remote work policies demonstrated a 21% industry-adjusted revenue growth rate over three years, while those with more restrictive policies had only a 5 per cent growth rate. Excluding the tech industry, fully flexible companies outperformed by 13 per centage points. Image Credit: Shutterstock

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554 COMPANIES: The study, conducted in collaboration with the Boston Consulting Group, analyses data from Scoop's Flex Index, focusing on remote work policies and revenue growth at 554 publicly-listed companies (those whose shares are traded in a stock market).  Image Credit: REUTERS

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SUPPORT: While the data doesn't establish a direct or “causal" relationship between remote policies and revenue growth, it strongly suggests that flexible employment practices support overall growth. Image Credit: Gulf News

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CONSISTENT TREND: Whether companies adopt flexible policies to hire faster or engage workers for better performance, the positive impact on growth remains consistent. For smaller companies, the report concludes, “flexible work can offer a competitive advantage and an attractive work environment for top talent.” At larger companies, meanwhile, “hybrid work is a sweet spot that gives employees and managers a balance between in-person and remote work.” Image Credit: Gulf News File

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MATTER OF TRUST: Flexible policies are considered a likely indication of a workplace culture that trusts its employees, values innovation, and embraces forward-thinking strategies. It validates Dice’s latest sentiment analysis of the tech industry, which showed that 73 per cent of tech professionals said it is “extremely” or “very” important that their next role includes the option to work remotely at least three days a week. Image Credit: Pexels

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INNOVATION: The study suggests that companies with less restrictive remote work policies tend to be more pro-innovation, purposeful, and engaging, contributing to higher revenues. Among tech professionals, a flex work gig allowed them to be more productive, increased their overall happiness, and offered fewer distractions. It also boosts work-life balance. Image Credit: Shutterstock

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A CASE FOR FLEX WORK SYSTEM: As the discussion on the efficacy of remote work continues, the Scoop and Boston Consulting Group study introduces valuable data and analytics to support the argument for flexible work arrangements. Beyond financial compensation, the report highlights the multifaceted factors influencing employee contentment, including flexibility, company culture, career progression, and perks. Access to comprehensive data can aid business leaders in crafting employee-centric initiatives that not only enhance workforce satisfaction, but also boost actual productivity and overall business growth. Image Credit: Shutterstock

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OUTPERFORMANCE: The findings suggest that not only does flexibility — the possibility of "workation" or "bleassure" — not hinder performance, but it might actually contribute to outperformance in terms of revenue growth. The report underscores the need for more comprehensive research and data to inform discussions on the future of work and workplace policies. Image Credit: Shutterstock

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LIMITED COMPARATIVE STORIES: While the study does highlight the scarcity of research comparing revenue growth and remote work policies, it's still indicative of what the changing work culture holds for the great mass of office-goers, going forward. Scoop's Flex Index, which acts as an online repository of remote work policies for over 7,500 companies, provides valuable insights by analyzing data from 554 public companies.  Image Credit: Supplied

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BURDEN OF DAILY COMMUTES: An earlier study conducted by Bayzat, an employee benefits platform, revealed a notable surge in fuel reimbursements by companies due to a nearly 60 per cent rise in fuel prices in 2022. The report highlights the financial implications for businesses, shedding light on the rising importance of employee expenditure data. Additionally, as travel reimbursement requests spike, the study suggests a potential link between increased costs and a return to hybrid or remote working. Image Credit: ANI

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EMPLOYEE EXPENDITURE: The Bayzat report highlights the certain trends pertaining to employee expenditure data. As travel reimbursement requests spike, the study suggests a potential link between increased costs and a return to hybrid or remote working. Between January and June 2022, UAE companies witnessed a more than one-third increase in monthly spending on fuel reimbursements for employees. The average amount per reimbursement also saw an 18 per cent uptick. Notably, fuel emerged as one of the most requested reimbursements among UAE employees. Image Credit: Stock images

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MEASURING PERFORMANCE: The report suggests that a return to "flex", "hybrid" or remote working could help alleviate financial strains associated with fuel and travel reimbursements. Talal Bayaa, CEO and co-founder at Bayzat, emphasised the potential of embracing flex work arrangements. Remote access, and digital HR management platforms are identified as effective tools to address concerns related to maintaining employee performance and attendance. Image Credit: REUTERS

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GLOBAL SHIFT: The ubiquity of broadband internet access has ushered in a global shift in the way work is done. For example, the Netherlands has institutionalised legal right to work from home, amid the increasing preference for remote-friendly companies. A survey indicates that 83 per cent of professionals prefer companies allowing remote work. The article also references a Bayt.com report suggesting changing hiring patterns, with flexibility becoming a minimum requirement for job seekers. Harnessing its potential, instead of putting the genie back in the bottle, seems the logical way forward. Image Credit: Instagram / File photos

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