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How Singapore is handling the biggest WFH experiment

WFH

The shutdown of the global economy after the COVID-19 outbreak was a harsh reality check for businesses around the world. However, while no one was prepared for such an unprecedented event, some countries turned out to be less unprepared than others.

A notable example is Singapore – the major innovation hub where the switch to work-from-home received considerable support from the authorities. Hopefully, the Singaporean experience can shed some light on the implications of remote work for workers and employers.

A favourable head start

When it comes to switching the entire economy to the remote mode, Singapore is among the countries with the best head start. To begin with, Singapore has been spearheading the digital transformation for years.

The IT industry is rightfully known for its reliance on state-of-the-art collaboration and communication tools that make remote work possible and, to an extent, preferable. Early adopters of the work-from-home approach cite numerous benefits to business operations:

  • Higher employee satisfaction
  • Improved work-life balance
  • Cost and time savings
  • Increased productivity
  • Alignment with CSR policies

As a result, software engineers and mobile application developers in Singapore already had some experience of working remotely by the time the lockdown was initiated. As far back as 2018, more than half of the Singaporean workforce had at least one day of remote work, whereas 10 per cent did not come to the office at all.

Also Read: e27 Webinar: Work-from-home or work-from-office, which is better?

So, by the time businesses around the world were forced to adapt to the new reality, Singaporean companies were already equipped with the necessary tools and expertise to make a seamless transition.

Official endorsement

Singapore’s capacity to handle remote work environments was promptly recognised by the country’s authorities. According to the survey by the Ministry of Manpower, the availability of flexible employment arrangements allowed to decrease the waste of time and resources, cut operational costs and increase employee retention.

So, when the initial phase of the circuit breaker measures was coming to a close and businesses were allowed to resume operations, the official guidelines strongly advised to prioritise remote work wherever possible. The rationale behind this decision was the familiarity of the workforce with the use of internet-based means of communication.

To extend the support further, the Ministry has also published guides on implementing work-from-home environments, with instructions on communication, performance management, change strategies, and case studies. On top of that, a selection of grants and incentives were offered to companies seeking to implement such an arrangement.

Effects on businesses

While it is still early for making definitive conclusions, some data on the effects of these endorsements are already available. One survey of Singaporeans suggests that one-third of the employees feel more productive while working from home. They also report improvements in mental health due to increased flexibility of working conditions.

This is not to say that the transition to remote work is a miraculous solution that can single-handedly save the economy. In fact, Singapore’s GDP has been experiencing a massive contraction in GDP for two consecutive quarters, not in the least due to the COVID outbreak.

While such abysmal performance does not undermine the feasibility of remote work, it may well serve as a warning against over-reliance on trendy ideas without careful consideration.

Bumps on the road

Despite all of the advantages of working from home, the concept does come with drawbacks. Depending on the industry and the company profile, one or more issues may arise after the introduction of the work-from-home policies:

  • Difficulties in communication
  • Inconsistencies in corporate culture
  • Loss of control over business processes
  • Productivity loss due to distractions
  • Compromised security of corporate information
  • Lack of socialising options
  • High dependency on technology

In fact, some of the highlighted issues have already taken a toll on the performance of remote workers in Singapore. According to the survey by IWG, more than 70 per cent of people who work from home in Singapore had to fund the setup of a home office from their own pockets, something that not everyone can afford in the middle of the economic crisis.

What’s more, it appears that the flexibility of the arrangement can turn against the people it should benefit. A survey by Cigna shows that more than 78 per cent of remote employees in Singapore work in an “always-on” WFH arrangement.

Also Read: Singaporeans wish to continue working from home post Circuit-Breaker, says survey

This essentially means that instead of a convenient work-life balance, they are essentially expected to be online at all times for work-related matters.

By any means, Singapore is in a unique position in this global work-from-home endeavour. On the one hand, it has a well-developed communication infrastructure and a business environment that aligns well with the requirements for its implementation. On top of that, the idea has been promoted (and even supported financially) by the local authorities.

On the other hand, the concept is still far from maturity and poses many challenges for workers and employers. While some of them can be addressed through self-organisation techniques, others will require organisation-scale changes in policies. All in all, the experiment is far from over and would require a lot more work before it bears fruit.

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