Jun 12, 2024
Topics Singapore
Flexible work arrangements (FWAs), a necessity during the Covid-19 pandemic in 2020, have since been accepted as another mode of work in many countries across the world.

Singapore recently announced a series of mandatory guidelines on FWAs that will go into effect on 1 Dec 2024. The guidelines aim to simplify the process for employees to request FWAs while recognising that employers ultimately have the authority to determine work setups. Bottom line, employers are required to consider FWA requests and employees must use FWAs responsibly.

The recent move by the Singapore government sends a signal not only about being open to another mode of work, but a solution to challenges facing Singapore's workforce.

Defined as arrangements where employers and employees agree to a variation from the standard work arrangement, FWAs give workers flexibility in three broad categories, namely place, time, and workload.

Singapore's journey to regulate FWAs began in 2014 when the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP) formed its Committee on Work-Life Strategy. At the time, Ms Sylvia Choo, Director of Women’s Development Secretariat  speaking at the at Flexible Work Arrangements Conference and Exhibition said, "this is driven by changes to the labour market, demographics & social norms. We have more women in the workforce today, people are also retiring later, there is a shortage of skills, and the constant call for more work life harmony."

Singapore’s move follows those in other countries who have also formalised the option for FWAs. The UK passed its Employment Relations (Flexible Working) Bill in 2023. China's work hour system addresses flexible time but not place or workload. Finland was ahead of the curve, implementing its Working Hours Act in 1996 with flexi-time arrangements. It was updated in 2020 to include flexi-place arrangements.

Win-win?

In Singapore’s case, TAFEP, said FWAs benefit employers, employees and society.

Employers get a larger talent pool and improve retention of valuable employees. Employees can balance work with personal commitments, and society sees a greater diversity of people participate in the economy.

The idea is "to provide more options for workers including seniors and caregivers, so as to allow more of them to continue to work if they wish to,” said Associate Professor Terence Ho of the Lee Kuan Yew School of Public Policy (LKYSPP). "This is particularly important in view of Singapore’s ageing workforce and tight labour market."

But will it be productive? Professor Ho says it depends on the nature of the work. "Working from home can save on commuting time and costs, while FWAs can allow employees to optimise their schedule and have peace of mind while juggling both work and family commitments. On the other hand, job sharing in some instances may require hiring additional staff or incurring further overheads or make supervision of staff more difficult."

There is also the possibility of the blurring of work and non-work life boundaries which can have negative consequences for workers and their families.

Not all companies will be quick to adopt FWAs. A Singapore Ministry of Manpower survey from 2023 found the top three reasons employers did not offer FWAs were: the need for employees to be physically present due to nature of work, difficulty in collaborating when working remotely and difficulty in monitoring employees’ work performance.

Some companies, such as Starbucks and Disney, have pushed back and ordered their employees to work in the office for at least three or four days a week respectively.

These may be a minority. A 2022 report from KPMG on trends in remote working found that 89 per cent of the over 530 global companies surveyed either had a remote working policy or were considering one.

In this region, countries such as Malaysia and the Philippines are beginning to explore and implement flexible working policies. The regional shift towards FWAs underscores a broader recognition that flexibility in work arrangements is essential for fostering a resilient, productive, and inclusive workforce.

Among those in Asia, there is a sense that by adopting and refining FWAs, their economies can better meet the diverse needs of their populations, improve employee satisfaction, and enhance overall economic competitiveness.

The next steps

For the FWA policy to be successful, the TAFEP report emphasises the importance of standardisation and transparency as key elements. Professor Ho says Singapore's "light-touch approach" makes the guidelines more realistic. "Employers are not expected to approve requests that would adversely affect business or employee performance – for instance, if the flexible work arrangement requested is impractical due to the nature of the role, if there is no capacity to change other employees’ work arrangements, or if it would require hiring new employees."

Beyond following government mandates, companies can proactively work towards implementing FWAs that make the most sense for them. Professor Ho says HR policies would need to be updated to facilitate this shift towards flexi-work. Besides formalising the process for staff to request flexible work arrangements, firms may also have to update hiring processes and staff appraisal to be fair to all employees. Work processes would also need to be updated, with organisational change carefully managed.

In the spirit of flexibility, some are already asking - what about a four-day work week? Countries such as Belgium and Iceland have already approved this and many other countries are experimenting with the idea.

In Singapore, a recent survey showed that 32 per cent of workers there think a four-day work week will become the norm in the next five years. While there is evidence that having a shorter work week boosts productivity and reduces pollution from commuting, Professor Ho says this may be premature. Instead, flexible work arrangements could "enable workers to better manage their time and family commitments, which could improve job satisfaction and even productivity if well-implemented."
Topics Singapore

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