:: Telecommuting, greater cost or social benefit? :: Compensation & Benefits ::

According to data from the National Institute of Statistics (INE), in 2019, around 8.3% of those employed in Spain telework. Specifically, 4.8% of people worked remotely for more than half the days, while 3.5% did so on a one-off basis. But the decree of the State of Alarm and consequent confinement, last March, and the subsequent evolution of the pandemic have become key factors when it comes to triggering the numbers of remote workers. Today, there are many companies that do not have all their staff in the offices and have opted for the so-called hybrid model, that is, remote work a few days a week and the rest, in the office, but How has this new modality affected the remuneration and compensation of employees?

The percentage of teleworking, a key aspect

Although digital disconnection and remote work were issues that the Spanish government already had on the table, the pandemic has accelerated their legislative regulation. Thus, last October, Congress approved, with an absolute majority, the Royal Decree-Law regulating Remote Work. Thus, it is established that the new legislation will be applied in cases in which remote work represents at least 30% of the employee's working day. The norm also determines that this assumption must be voluntary, reversible and that it must be formalized by means of an agreement between the company and the employee.

As the director of Talent, Culture and Internal Communication at Repsol, Joaquín Hormaechea, recalls, "the new law that regulates Remote Work leaves the regulation of a large part of the teleworking model to collective bargaining, many of which aspects are already included in the Repsol Framework Agreement, which includes matters relating to teleworking”. In addition, "the law contemplates a period of time to make the necessary adjustments and that we will include in our negotiation with the legal representation of the workers."

For his part, Ignacio Sagi-Vela Carbonell, director of Transformation and Gbs at Mahou San Miguel, comments that "without considering the exceptional policy established as a result of the pandemic, for the moment and given that the current policy in the company does not reach the 30% established by law for its scope of application, we are not affected by it, given that the workday that is carried out remotely currently amounts to 20%”.

Equipment

Given this reality, the Royal Decree-Law contemplates that companies must provide their collaborators with the necessary means so that they can carry out their work and eventual expenses incurred by the workers will be compensated in the terms agreed upon in the collective bargaining, to which it grants a central role. Companies that have implemented remote work due to the pandemic also have the obligation to provide these means to their employees.

A point that companies that had previously implemented teleworking had already planned. Well, as the INE data highlights, in 2019, 75.2% of companies with ten or more employees provide their employees with portable devices that allow mobile Internet connection for business use. In average terms, 30% of the employees of these companies are beneficiaries of these devices. Among companies in the ICT sector, this percentage reached 62.7%, while in Information and communications it stood at 58.4% and in Professional, scientific and technical activities, at 48.4% of the total.

A standard complied with by companies such as Mahou San Miguel, Kiabi, Boehringer Ingelheim or Repsol, among others. “Employees sign an Individual Teleworking Agreement that includes the conditions of provision and requirements. The teleworking place, which must coincide with the employee's habitual residence, must have a series of conditions that guarantee that habitual work can be carried out in an appropriate environment. In addition to the technical requirements that guarantee the connection, there must be a space that meets the conditions in terms of prevention, safety and health of a typical workplace. To verify these conditions, the employee agrees to accept a risk assessment visit and/or take a course on Occupational Risk Prevention. To carry out their work, the company makes available to the employee a mobile phone, a laptop, a lectern and a backpack or trolley to transport the equipment from home to the office and vice versa. In addition, compensation is paid for the costs of the Internet connection," says Repsol's Director of Talent, Culture and Internal Communication, Joaquín Hormaechea.

At this point, the study on the Evolution of the Labor Force, prepared by HP in six countries -including Spain-, reveals that the managers of organizations have supported their professionals when embracing the formula of telecommuting, but they have not been able to provide them with the necessary equipment and support to migrate to this new way of working. In the case of Spain, the study shows that 71% of workers now feel better equipped to perform their functions well after the change in the way they work, although it is true that many of them state that they have not received any resources to facilitate the transition to remote work. In fact, two in three employees worldwide had to buy or upgrade their home devices (24% of Europeans bought a laptop, while 21% bought a printer). Given this scenario, it is not surprising that, today, one in three respondents say that the fact that the company facilitates access to the latest technologies necessary to do their work is a more important motivation than when they joined the company . “The need to move overnight to a remote work environment caught many companies off guard. Many professionals had to make an effort to acquire the equipment that would allow them to continue operating from their homes”, says the head of the Printing business in the Southern Europe Region of HP, Inés Bermejo.

The new Remote Work legislation will be applied in cases where remote work represents at least 30% of the employee's working day

The costs of teleworking

:: Telecommuting, higher cost or social benefit? :: compensation and benefits ::

The costs that teleworking can entail, both for the employee and the employer, is one of the aspects that has generated the most discrepancies in the framework of the Government's negotiation with the social partners. However, the regulations establish that this point is resolved within the framework of the collective bargaining of each company.

Specifically, in the case of Mahou San Miguel there is no specific remuneration for the possible expenses generated. In fact, Ignacio Sagi-Vela Carbonell from Mahou San Miguel considers that “the right to payment and compensation of expenses is one of the aspects that can discourage the establishment of flexible work policies. The law contains multiple legal loopholes and refers in many aspects to negotiation to regulate aspects such as expenses, without considering other possible savings for the worker such as commuting to the workplace. And he adds: "the new law should have considered the new economic and social environment, providing a framework that would allow greater flexibility when establishing this type of policy, considering work by objectives, digital transformation and the evolution of relations labor”.

And it is that while the company may think that the employee obtains a reduction in costs and greater freedom to reconcile, due to the reduction in travel, the employee may think that his remuneration is reduced as a result of a greater expense in electricity or internet connections. Joaquín Hormaechea, from Repsol, takes a position in this sense, stating that the benefit must be mutual, both for the employee and for the company. “For the employee, because they have the opportunity to self-organize their work and personal life, since it avoids travelling, wasting time and increases reconciliation. In addition to improving motivation and commitment, reducing commuting accidents and carbon footprint. For the company it means an improvement in efficiency, productivity and the value proposition for the employee, as well as allowing progress towards new, more flexible and versatile ways of working”.

And, for her part, Cristina Talavera Esteban-Infantes, Labor Relations and C&B Manager at KIABI ESPAÑA, comments that "it is true that teleworking involves certain associated expenses, but it must also be recognized that it entails significant savings such as They can be in fuel, restaurants, extracurricular activities, etc. In any case, it seems reasonable that the Teleworking Law regulates this aspect in a generic way, so that each company can then apply it according to its possibilities and circumstances. In the case of Kiabi, our current policy guarantees that this type of work is not burdensome in any way for collaborators, however, we will again agree and review everything related to this matter with the Inter-Centre Committee”.

Half of Spanish wage earners continue to receive the same salary as before the health crisis and 17% have suffered a salary reduction, according to a HAYS survey

The emotional salary is gaining more strength

In the salary aspect, large companies ensure that the health pandemic, and its consequent economic crisis, has not led to any change in the compensation policies of their employees. Proof of this is that Ignacio Sagi-Vela Carbonell, from Mahou San Miguel, assures that "we have maintained the same pre-pandemic benefit and compensation scheme, especially with regard to benefits such as food aid or parking aid , that contribute to promoting the return to daily life and the use of the hotel industry, within the limitations and precautions imposed by sanitary measures, which is what we basically live on ”.

However, published studies point to some differences. According to the conclusions of a survey carried out by HAYS in September, half of Spanish wage-earners continue to receive the same salary as before the health crisis caused by COVID-19, 18% have been laid off, 17% have suffered a salary reduction and only 12% of those surveyed affirm that their salary has been increased. But one of the consequences of the current economic crisis is that uncertainty has taken over those who have suffered a salary cut. According to the HAYS survey, 34% of wage earners do not know if they will recover their salary and, of the 40% who are optimistic, only 16% are confident that they will recover it in the coming months.

This salary reduction that some workers have suffered is causing, according to HAYS data, that practically 80% of Spaniards trust measures such as salary incentives and social benefits, which add a very interesting plus in the proposal of company value. For this reason, the commercial director of HAYS, Noelia de Lucas, stresses that companies have to work on both tangible incentives –bonuses or commissions– as well as intangible ones: “you have to show employees that the company watches over their safety and that their well-being is equal to or more important than the results at the end of the year”, he adds.

In this sense, and in line with the remuneration, Miren Sáenz de Valluerca and Guillermo Julio Sáez, senior manager and senior consultant of the HR and Legal Division, respectively, see it as very possible that, with a fall of income in the short and medium term, the compensation schemes designed by the HR department are affected. That is why they see this situation as "an unbeatable opportunity for companies to include other types of key benefits that are more affordable in their compensation plan, such as health insurance."

Experts estimate that teleworking in Spain could reach 50% by 2030, due to the implementation of hybrid work models

Looking to the future

In light of all this, Experts calculate that teleworking in Spain could reach 50% in 2030, not so much because half of the employees are teleworking 100%, but because a high percentage of companies will opt for the so-called hybrid model, that is, part of Its collaborators will work in a mixed way, between face-to-face and remotely. An aspect that, according to Repsol's director of Talent, Culture and Internal Communication, "will mean a redefinition of current office spaces, with a transformation towards a more collective and collaborative use, which facilitates the necessary physical interaction required for the creation and team cohesion, which germinates and promotes creativity and innovation”.

What remains to be seen is whether wages will evolve in the same way. Something that the commercial director of HAYS, Noelia de Lucas, does not contemplate in the short term. Based on the 2008 crisis, in which wages took almost twelve years to recover, the expert believes that, with the current crisis, "many jobs will be destroyed, especially unskilled positions, and when it is time to rebuild , salaries are going to be much lower than before the pandemic.” However, according to their forecasts, this will not happen for very specific profiles in specific areas such as Big Data experts, technical and research professionals from the pharmaceutical industry, and in sectors such as logistics and capital goods. We will have to see what happens over time.

Training as a factor for professional success

COVID-19 has been a catalyst for new ways of working, but it has also provided an opportunity for professionals to take the control of their careers. This is clear from the report on the "Evolution of the Labor Force" that HP has carried out in six countries, including Spain. The study highlights that express digitization and the widespread adoption of teleworking have caused growing concern among professionals to maintain continuous training that allows them to succeed in the so-called "new normal". Proof of this is that 71% of Spanish professionals believe that now is the time to train to better compete, develop their personal brand and be better prepared to face the challenges of the new work environment.

The report, prepared by HP, also shows that despite the fact that 64% of Spanish professionals consider that this pandemic has allowed them to improve their technical skills, many of them feel the need to acquire skills, especially digital, that help them perform the tasks associated with their job more effectively. Among the most demanded skills, technical knowledge, digital autonomy and computer programming stand out. In addition, 67% of Spaniards indicate that this training must be continued and they feel very active and motivated to acquire new skills, both digital and the so-called soft skills. And it is that, far from feeling intimidated by the new situation, professionals who work for both large companies and SMEs consider that they are prepared to use this disruption to their advantage to train and turn their professional lives around.