32 minute read
Why private jet usage is soaring
INDUSTRY FEATURE AVIATION PRIVATE JET COVID-19
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IF CORRESPONDENT
Lingering health concerns about commercial air travel during the COVID-19 pandemic have fueled a surge in private jet travel in the USA.
The multibillion-dollar federal bailout rescued businesses hit by the coronavirus, including billions for airlines stranded due to travel restrictions and safety concerns. According to a report, the pandemic also hit more than half a billion dollars for boutique aviation firms that provide private jet travel to the super-rich people.
Dean Baker, the co-founder of the progressive think tank Center for Economic and Policy Research, told ABC News that the people are subsidizing the luxury consumption of rich people in the country as the bailout money given by the government is of the taxpayer.
The industry experts earlier predicted that private jet operators, like commercial airlines, would face significant revenue cuts. Executives at private aviation companies also said they needed the government's help to keep their employees on the job. However, several of the same executives openly stated that they saw evidence of a coming boom, spurred by fears of a COVID-19 pandemic.
That prediction has come true, and the once-niche industry transformed into an overnight sensation. Thanks to people willing to spend up to $20,000 for a
INDUSTRY FEATURE AVIATION PRIVATE JET COVID-19
flight across the country. According to industry observers, the popularity of private aviation has now surpassed that of pre-pandemic levels.
Travis Kuhn, vice president of market intelligence at the aviation consulting firm ARGUS International, said that private aviation recovered faster than many other businesses, including airlines. Currently, private air travel is about 15% larger than it was two years ago -- and it is almost all directly attributed to the pandemic.
According to aviation data research firm Wingx, there were 3.3 million flights that traveled around the world in 2021, the most on record. This was a 7% increase over the previous high in 2020, with the United States and Europe leading the way.
Kuhn said that wealthy Americans discovered the time-saving and productivity advantages after flocking to private aviation for the perceived health advantages of avoiding crowded airports and commercial planes.
Also, passengers traveling in a private jet do not even need to enter a terminal building in many circumstances. Instead, the limousine pulls up alongside the plane on the tarmac. Passengers only have to rest in a plush leather armchair, and a cheerful member of the cabin crew will give you a drink of champagne, he added.
Funds collected in 2021
According to a study by Accountable. US, a government monitoring group, in 2021, private aviation firms collected up to $643 million in government funds from the Payroll Support Program, the Paycheck Protection Program, and the Economic Injury Disaster Loan Program for small businesses. The Payroll Support Program's subsequent iterations delivered considerably more funds to the private jet sector.
The overwhelming majority of funds delivered to private aviation firms came as grants that did not require repayment as long as recipients did not engage in involuntary furloughs or terminations of employees. However, some critics urge fast-recovering companies to repay some of the funds.
Kyle Herrig, the president of Accountable.US, said that many private aircraft companies are celebrating increased wealth and opportunity these days, regardless of government assistance. He urged taxpayers to pay taxes back.
Among the biggest bailout recipients, OneSky Flight, an Ohio-based commercial aviation portfolio that includes brands like FlexJet, Sentient Jet, and PrivateFly, got $81 million from a fund set aside in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to assist airlines. Other commercial aviation like FlexJet, Sentient Jet, and PrivateFly received more than $50 million each.
OneSky executives have described the company as catering to a high-net-worth clientele, primarily corporate clients and frequent wealthy flyers. Celebrity clients, including astronaut Buzz Aldrin and golfer Bubba Watson, have endorsed the companies on social media, as well as references to their support of thoroughbred horse racing and an annual snow polo tournament in Aspen.
When OneSky approached the federal government for bailout funds, the company executives emphasized the need for funds for their pilots and flight controllers.
Dan Hubbard, a spokeswoman for the National Business Aviation Association, said these companies like OneSky request federal funding for the same reason as many other small businesses did to keep employees on the job. She also said this crisis-moment investment worked -- as it has in other
industries -- supporting employees and paving the way for their companies' gradual recovery.
However, critics argue that private aircraft operators could have afforded to assist their staff for a limited period if they anticipated that business would rebound, as several industry officials openly stated at the time.
According to Steve Ellis, vice president of Taxpayers for Common Sense, the success of these companies so soon after accepting government support, which also undermines the spirit of the programs. He said during the pandemic private aviation industry profited from greater interest. Thus, they got taxpayer money, and business skyrocketed.
Despite the criticism, several industry insiders believe the private aviation stimulus was necessary. Private jet operators, just like wellknown commercial airlines, saw a major income decrease during the peak of the inexpensive. Users can typically deduct these from their company expenditures rather than paying out of pocket. Crabbe said if one wanted a private jet to fly six people from London to Ibiza, it would cost around $28,000 (£23,000).
Environmental impact of private jets
US firm JSX Spokesperson, Benjamin Kaufman raised a question about the environmental impact of private jets. According to the cleaner transport campaign group Transport & Environment, private jets are five to 14 times more polluting than commercial airlines on a per-passenger basis.
The private plane industry counters that it encourages passengers to carbon offset. Some companies are also experimenting with biofuels and electric, hydrogen, and hybrid aircraft.
Ian Moore from VistaJet said his company is committed to becoming carbon neutral by 2025. He said the company had established a sustainability project under which over 85% of members offset CO2 emissions relative to their flights' fuel consumption.
However, Anna Hughes, director of Flight Free UK, is not convinced. Her organization urges people to make a year-long promise not to fly. She said people should do everything to reduce emissions and question whether private jets are an appropriate form of transport.
According to her, no offsetting scheme can make up for the huge emissions of taking a private flight. She said that trees take a long time to grow, but flight emissions are immediate. She also said that the most reliable way to reduce emissions from flights remains the simplest one - fly less.
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pandemic, from mid-March to May 2020.
Doug Gollan, the editor of Private Jet Card Comparisons, a blog covering the world of private aviation, said that the industry's success now is a sign of how successful the CARES Act was in getting these businesses back on their feet.
Gollan explained that the funds were intended to assist businesses in navigating the crisis. He said that the CARES Act made private aviation the poster child for success stories.
Kenn Ricci, the CEO of OneSky Flight's parent company, recently told Bloomberg Media that business has improved, and he also plans to increase his fleet by 40% in the coming year. The recent success of private aviation has caused the demand for new aircraft to drastically outpace the supply.
Rising consumer demands
JetClub, a private aviation company, claims they are having trouble getting enough new planes to meet demand. Vishal Hiremath, the company cofounder, said they need additional airplanes, but their OEM (original equipment manufacturer) partners can not make enough.
The experts predicted that one issue that may start to dampen demand for private planes is rising fuel prices. The passing on to passengers of the large increase in the cost of aviation fuel because of the ongoing crisis in Ukraine - could start to affect demand for private flights. Jet fuel is currently more than twice the price it was last year.
Justin Crabbe, chief executive of Jettly, a technology company making private air travel accessible through a mobile app, said that they do not know how high the fuel prices will soar. But he believes it will be very impactful on the market. On the other hand, private jets have never been editor@ifinancemag.com
Future of Health Care IF CORRESPONDENT
in Kuwait and the rest of MENA
CENTRAL CIRCLE
INDUSTRY COVERSTORY CENTRAL CIRCLE HEALTHCARE
The coronavirus pandemic has changed life for the past several generations. Stringent lockdowns and mandatory masks have had irreversible impacts on the life of all and sundry.
As a fallout of the restrictions introduced during the pandemic, there has been an unprecedented proliferation of online services across industries. But even after the peak crisis was dealt with, life as we knew before, could not be brought back to normal instantly.
The airspace was closed for over a year in Kuwait and many areas were subjected to lockdowns. People were deprived of regular medical check-ups and specialist consultations. The restrictions imposed as part of the lockdown had caused mental hardships and posed a thorn to general wellbeing. This was an opportunity for setting up remote health care services.
Telemedicine, as we know it today in the wider world until this point, was a niche textbook possibility in Kuwait without any existing player. All of a sudden there was a need for a hard pivot overnight to ensure safe interaction of doctors and patients and to stop them from falling prey to the rising infections, chronic illness and mental disorders.
Dr. Yasmin Abdulghafour, Chief Operating Officer of Central Circle, the largest medical distribution company in Kuwait, saw this challenge as an opportunity.
She and her four colleagues set on their sails to set up the first virtual healthcare facility ‘MSHFA’ (available as a mobile app) in Kuwait that would provide virtual consultations and health care service, particularly relevant with the onset of the pandemic.
With this goal in mind, the hunt for a practical solution led to numerous meetings with web developers. The changing nature of the pandemic in the form of different variants dominating the infection cycle made the challenge harder than earlier perceived.
However, the team led by Dr. Yasmin remained adamant in the face of adversity to ensure that the MSHFA platform sees the light of the day. Dr. Yasmin’s idea was to give access to complete health care solutions to patients from the comfort of their homes. This was the key idea behind the platform.
Through the app, patients can attend walkin clinics relating to family medicine and general practice and scheduled consultations for Obstetrics & Gynaecology, Dermatology, Psychiatric Care and Mental Health, with plans to extend services in the near future. Additionally, patients can also seek lab testing appointments and delivery of medicines to one’s doorstep.
The company does not want to make its mark as not only one of the first movers in the segment that offers these novel services, but it also intends to have a lasting impact on the health outcomes of the population it serves.
“The goal is to provide pioneering medical services which can reflect greatly on the health outcomes of the population we serve. The idea is to allow everyone access to exceptional medical professionals, ensuring early diagnosis, management, and preventive care,” says Dr. Yasmin.
She adds, “MSHFA represents the next generation healthcare industry business model, which is an example of a platform-like business where value is created through the interaction between independent stakeholders, patients, physicians, health care providers, payers and suppliers, similar to leading e-commerce businesses such as Facebook, Uber, or Ali Baba, but in the health care market space.”
MSHFA is also using technology to liaise with existing clinics health care facilities within Kuwait and and Gulf Cooperation Council (GCC). While online services remain a focus, the company wants to establish a firm grounding among the public.
A void to fill
Market research initiated by the shareholders of MSHFA found that the existing national and regional healthcare system did not meet the rising demand for chronic disease management, mental healthcare services, and medication reconciliation. The study found that while the value of the global telemedicine market was estimated to be $40 billion, the market in Kuwait and adjoining
countries were not yet developed to adequate levels.
According to industry analysts, the telemedicine industry was valued at approximately USD 38,289 million globally in 2020, and it is expected to witness a revenue of USD 168,396 million in 2026, with a CAGR of 28% over the forecast period 2021-2026.
This is the void that MSHFA is keen on filling under Dr. Yasmin’s stewardship. In the short term, the company wants to focus on Kuwait and gradually build a presence in the adjoining regions of the Middle East and North Africa.
MSHFA feels due to certain demographic factors, the region will be an ideal springboard for the budding enterprise. The MENA region, especially the GCC countries, have an aging population and are suffering from a high burden of chronic illnesses. At the same time, there is a dearth in the quality and quantity when it comes to the presence of health care facilities. This imbalance in the demand and supply leaves ample opportunity for innovative, technologybased solutions to positively contribute to the betterment of the entire landscape. MSHFA aspires to be a value-based healthcare delivery organization, promoting efficiency, effectiveness.
Privacy in focus
Dr. Yasmin describes MSHFA as an innovative product in the regional telemedicine market which can improve access to essential high-quality healthcare services from the comfort of your home.
While MSHFA prioritizes giving its users the best possible healthcare facilities, there are no lacunas in the platform about cyber security. The team at MSHFA is committed to giving health care service the same importance as it does to the privacy of its users, with a system that is fully compliant with European and American data security standards.
In a short time in the market, MSHFA has established itself as a unique, innovative, telemedicine delivery platform where various stakeholders can interact and exchange services safely and effectively without any privacy scares.
Being a remote-first entity, MSHFA wants to
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expand itself as a global player and soon it wants to cater to patients around the globe and not limited to the MENA region.
MSHFA operates with the philosophy of their CEO which is that healthcare being a fundamental human right is the prime pillar of any community. Given that any member of the community is equally vulnerable to illness, disease, and accidents, adequate healthcare and management are critical for the long-term health of society. This, in turn, will also contribute to a stable economy.
Dr. Yasmin’s early career
Before donning a corporate hat and becoming one of the first few female COO’s in Kuwait, Dr.
INDUSTRY COVERSTORY CENTRAL CIRCLE HEALTHCARE
Yasmin was part of the public health system of Kuwait under the Ministry of Health.
She has two decades of experience as a family physician after she completed her Bachelors of Medicine & Surgery in 2000 and found her place in the board of family medicine in 2008, with an appointment as a member of the UK’s Royal College of General Practitioners. She recently finished her Masters in Healthcare Administration in 2020.
At the start of her career, she was involved with the working of Kuwait’s Ministry of Health and work on public healthcare initiatives. Right from the start, she understood the importance of the policy.
During her career at the government, she functioned as Director of International Health Relations, and Director of Planning, the roles which dabbled in health diplomacy and liaising with external departments like the Ministry of Foreign Affairs, to facilitate dialogue between domestic and international companies, promoting excellence in the sector. Later in the Ministry of Health, she also worked with the Supreme Council of Planning, drafting health care reform plans in Kuwait. She also worked with various international health organizations namely the World Health Organization on public health policies. During her time in Ministry of Health, she realized that technology was not well incorporated in medicine within Kuwait and the GCC, not to the extent that could revolutionize medicine, and saw the importance of the private sector in developing healthcare. It was in her role at the helm of Central Circle, she found the gaps in the market which were more prominent in the wake of the COVID-19 pandemic. She found that accessing medical services became both dangerous and difficult. This also triggered her mind to explore the concept of home-based medical solutions and she decided to initiate and develop the idea of the first virtual healthcare facility, within the State of Kuwait.
Even before the onset of the pandemic, she came to know about various advancements in the international healthcare equipment market and the advent of emerging technologies in the pharmaceutical and medical technology sector. She developed a special interest in leveraging technology to advance the cause of healthcare and felt that there was much more needed to be done to ensure that the medical industry adopts and embraces technology like other industries.
As MSHFA continues on its growth path, International Finance Magazine sat down for an exclusive interview with Dr. Yasmin, where she talks more about the company, herself, and her thoughts behind steering the change in the healthcare space.
You have been a practicing doctor, then an administrator, and now an entrepreneur. How does all of this align? I had a keen interest in medicine from childhood. The ability to treat a person and cure specific ailments is what triggered my passion for medicine. I was also an academically inclined child, with a natural competitive edge and flair. So, medicine seemed a natural career path.
Today medicine is advancing at unimaginable speed. The incorporation of information technology, especially artificial intelligence, interests me the most. This hybrid model of medicine fascinates me. So, my roles over the years may seem incoherent, they are all part of the same arc.
You started your career in the public sector. What prompted you to shift? I was contacted by Central Circle Company, the largest distributor of medical equipment and medicine, within Kuwait as they offered me the role of Chief Operating Officer. I was apprehensive about taking up the assignment,
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INDUSTRY COVERSTORY CENTRAL CIRCLE HEALTHCARE
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but the prospect of working in the private sector, learning new skills, managing a team, investing in people. Additionally, the appointment was one that few women had been offered.
Was there anything in particular that you were looking forward to? I was fortunate to be one of the first few female COOs, within the medical field, in Kuwait, who was asked to lend expertise and assist in implementing change. The company was keen to tidy up its operations and invest in its existing and future staff. I was, therefore, keen to avail myself of this opportunity.
Additionally, I was keen to experience the other end of the spectrum i.e. logistics, supply, partner relationships, distribution, and the overall management.
Whilst working in the public sector, I developed my knowledge of policy and procedures so, naturally, the quest for further insight triggered the jump.
What has been the highlight of your career so far? My tenure at Central Circle was intense, particularly as COVID-19 began amid my first few months after accepting the appointment. People were afraid of something that they were unable to comprehend. At the start of COVID-19, testing kits, rapid and PCR tests, and PPT equipment became invaluable to prevent and protect the spread of the virus.
I was fortunate to have access to a huge team who worked with me to facilitate the distribution of such medical equipment during the height of the first wave. It was a challenging time, although, it was a unique opportunity to do something different. I worked with several internal departments and the main objective was to distribute mass testing kits within Kuwait. I headed the logistics efforts. We fought to get rapid testing kits into Kuwait — an effort that made a significant difference in early diagnosis. To date, this has been one of my career highlights. Collaborative efforts and teamwork can build an effort that is resilient and life-changing. Making sure that all medical supplies reached hospitals promptly.
What was the exact pain point that triggered the idea behind MSHFA? While working at Central Circle Company, I found a gap in the market, COVID-19 made accessing medical services both dangerous and difficult. The concept of home-based medical solutions was sparked and I decided to initiate and develop the idea of the first virtual healthcare facility, within Kuwait, and MSHFA was born. I had a special interest in technology and healthcare and felt that the healthcare sector is always shy to integrate technology, unlike other sectors, I wanted to be a pioneer.
How do you envision the identity of the company? MSHFA is an innovative product in the regional telemedicine market that can improve access to the needed high-quality healthcare services at affordable rates. MSHFA will bridge the gap in healthcare, particularly to vulnerable individuals who are unable to access medicine due to various barriers. While it will make healthcare more affordable and accessible, the MSHFA platform provides the highest levels of cybersecurity for its users and will guarantee confidentiality for them coupled with medical excellence without compromise. The future of healthcare.
What is the post-pandemic focus for the company in the short and medium-term? In the next 5 years, MSHFA will expand its services into the GCC. Our primary vision and purpose are to make sure that healthcare services are accessible to all and also to promote virtual healthcare, whilst ensuring that the advice and services offered are truly exceptional. Our goal is to remain pioneers in the medical sector, whilst upholding medical excellence.
For more information about MSHFA, please visit www.mshfakwt.com
INDUSTRY FEATURE LOGISTICS PRODUCTIVITY HYBRID WORK
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How to make hybrid work right
IF CORRESPONDENT
It has been more than two years since the onset of the pandemic, a once-in-acentury phenomenon that cost millions of lives all over the world. It has also shaped the white-collar job scene forever. Never before was there an emphasis on remote work, irrespective of industries.
It made sense as without a foolproof way to protect people from the virus, remote working would ensure that workers are relatively safer. This ensured that productivity was maintained at least to a certain level while workers felt confident within the safety of their homes and with their near and dear ones.
But now, after three major waves of infections and two mandatory doses of vaccination, the risk of contracting a severe infection from COVID-19 is waning by the day. But remote workers who were forced to adapt to work from home without a viable second option are reluctant to come back to the office for more than one reason. So managers and top executives of major companies have settled for the midway approach of hybrid working. This would mean that for a select few days of the week, employees would have to come to the office for several reasons that the top management thinks are non-negotiable.
But the response to this hybrid approach unlike the anticipated ‘best of both
INDUSTRY FEATURE LOGISTICS PRODUCTIVITY HYBRID WORK
worlds’ was at the best lukewarm.
A study by Microsoft titled ‘Work Trend Index’ found that currently, 38% of workplaces in the US have adopted this hybrid policy with another 15% more likely to join the bandwagon by the next year.
“One thing is clear: We are not the same people that went home to work in early 2020. The collective experience of the past two years has left a lasting imprint, fundamentally changing how we define the role of work in our lives. The data shows the Great Reshuffle is far from over. Employees everywhere are rethinking their “worth it” equation and are voting with their feet. And as more people experience the upsides of flexible work, the more heavily it factors into the equation. For Gen Z and Millennials, there is no going back. And with other generations not far behind, companies must meet employees where they are,” the study noted.
It is not only in the US that this trend has surfaced. Japan, across the shores which is infamous for its lack of work-life balance and long in-office, stays in the pre-pandemic days is seeing a change in the winds too. Fujitsu, a leading IT company in Japan had found that 74% of their total workforce opined that the office was the best place to work in the prepandemic phase. But in a survey conducted in May 2022, an overwhelming 55% of them say that they will like to work from home and office in a flexible manner with 30% opining that they would work from home all the time given an opportunity.
But while it may seem elementary that it is work from home for most of the week and just two days of old-school work from the office, the dynamics in practicality can be a lot different.
No wonder, Microsoft’s CEO, Satya Nadella at the time of releasing the Microsoft 2021 Work Trends Index Annual Report said: “Over the past year, no area has undergone more rapid transformation than the way we work. Employee expectations are changing, and we will need to define productivity much
1. 53% of employees are more likely to prioritize health and wellbeing over work than before the pandemic 52% of Gen Z and Millennials are likely to consider changing employers this year, up 3 percentage points yearover-year 2.47% of respondents say they are more likely to put family and personal life over work than they were before the pandemic In addition, 53%—particularly parents (55%) and women (56%)—say they’re more likely to prioritize their health and wellbeing over work than before 3.58% of employees who plan to spend the most and least time in-office are doing it for the same reason: more focused work. And there are gaps to fill – managers plan to spend a higher share of their time in-office than non-managerial employees (45% vs. 39%). Moreover, employees surveyed plan to go into the office more than managers expect
Source: Great Expectations: Making Hybrid Work Work/ Microsoft
more broadly — inclusive of collaboration, learning, and well-being to drive career advancement for every worker, including frontline and knowledge workers, as well as for new graduates and those who are in the workforce today. All this needs to be done with flexibility in when, where, and how people work”.
Meanwhile, a survey conducted by the Pulse of the American Worker found that 87% of people want to work from home at least one day of the week. 68% of American workers say the ability to work remotely and on-site is the perfect work model.
According to the Remote Work & Compensation Pulse Survey, only 8% of remote employees are willing to return to work full-time following the pandemic. While 48% of workers prefer to work from home fulltime, the remaining 44% want to work from home part-time throughout the week.
The survey found that around 83% of employees would leave their current job if their pay was reduced as a result of working remotely.
According to Stanford research, 55% of respondents prefer to spend some time at work and some time at home. The report stated that around 25% of workers prefer to work from home full time and 20%
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exclusively want to work in an office.
The study also found that some employees would try working from home but soon find it to be too lonely. Some people grew addicted to one of three things: television, refrigerator, or bed, and returned to their office.
A survey by owl labs found that in the United States, 87% of workers would like a 10-hour/4-day work week, while 82% would prefer core working hours.
According to a recent survey by an economist, 34% of respondents claimed that face-to-face interruptions from coworkers are the most common reason they lose attention at work. Working at home made 36% of respondents feel more focused than working in an office while working in an office made 28% feel less focused.
Does this mean the hybrid model of work may be the superior choice for many businesses? At this point, it may be too early to say but the next couple of years will let us know for sure.
Assessing which roles are most suitable for remote working, onsite working, or hybrid working is important. This will assist in establishing the long-term goals and ambitions for work in the future.
Hybrid work models are used by 63% of high-growth companies
An Accenture report noted that regardless of where you are located, ensuring your workforce is healthy and productive will yield bottom-line benefits. The report found that 63% of high-revenue growth businesses are adopting productivity anywhere hybrid workforce models.
The concept of blended workforces is rejected by 69% of organizations with negative or no growth, who prefer all onsite or all remote staff. A hybrid strategy is preferred by 83% of workers.
Meanwhile, employees and employers who participated in the Remote Work & Compensation Pulse Survey in May 2021 expressed a desire to be entirely remote 48% of the time. Hybrid working arrangements were preferred by 44% of employees. Employers support the mixed work paradigm 51% of the time, while only 5% cite entirely remote work as an option.
Gen Z employees want some form of onsite work
Gen Z employees want to experience onsite work in some form, Accenture’s report reveals, despite growing up in an era of selfies, texting, and virtual reality.
More than 74% of Gen Z respondents prefer interacting with colleagues face-toface, followed by Baby Boomers (68%), and Gen Xers (66%).
Will compensation change for remote employees or hybrid employees?
A recent remote work survey by salary.com also found the following. 92% of employers do not have a system in place for determining compensation for employees who work remotely only part of the time. There is no formal mechanism for establishing remuneration for remote workers for 72% of firms.
Over 97% of firms said they will not lower pay for workers who work partially
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from home. However, 21% of employers would make salary adjustments based on an employee's contribution, geographic location, and worries about company culture. During the pandemic, 9% of employees transferred to another area, making it hard to return to work full-time.
In a survey of 94% of employees, they believe that salaries should be determined by skill set and not where they are located. In determining remote pay for new hires, 25% of employers take different factors into consideration.
Employers surveyed said they would consider the following factors when determining pay: Competitiveness outside the organization (67%), Competitiveness inside the organization(58%), Cost of living expense (43%)
According to 34% of employers polled, a full-time remote employee in a different geographic market would not be hired at the same rate as an on-site employee.
Does the hybrid work model cost more for employers?
In a recent survey conducted by Prudential Financial Inc., 34% of workers said their employers should provide resources to establish a home office. Whereas 33% of workers said their employees should be reimbursed for expenses associated with remote work.
The Remote Work & Compensation Pulse Survey by salary.com found that 51% of employers expect employees to have to return to the workplace. However, provide them with the flexibility to work remotely part of the time.
Should companies pay these workfrom-home expenditures if employees have the option to work in the office full-time? Businesses will need policies in place when addressing these questions by their remote and hybrid workforce.
Having the same systems for both office and remote work could cost employees double for some of the equipment needed. A few of these include phone systems, fast internet access, security, and more.
Employers will also have to think about hiring remote workers from states where they do not have a physical presence. This could include paying higher unemployment taxes and navigating new labor laws in the state where the person works. Due to contradictory state regulations, employees in some areas may suffer double taxation.
When crafting policies and establishing guidelines there are several things to consider. Businesses should carefully plan and check what specific requirements states require in the locations they plan to hire remote workers. If a company is searching for contract remote workers, staffing services can help them with these challenges.
On the other hand, if there are fewer employees in the office on a given day, businesses will need to lease less office space. In new leases, employers should also try negotiating a rent deferral or abatement. They should do this in case the state or government declares them ineligible to work owing to a future pandemic.
Synchronous vs asynchronous
It is crucial to remember that not everyone has the same working schedule or is in the same time zone when doing hybrid work. Working in an asynchronous manner can be a useful best practice strategy to adopt to increase productivity. Asynchronous communication is the practice of communicating and pushing projects forward without requiring other stakeholders to be available at the same time. Communication in an office is largely synchronous.
In other words, it is far from simple to figure out how to do this. That is because, in order to correctly design hybrid work, you must consider two axes: place and time.
The axis of location is currently receiving the greatest attention. Millions of workers throughout the world, including Fujitsu's employees, have abruptly switched from being place-constrained (working in an office) to becoming place-unconstrained this year (working anywhere). Many people have also made a change down the time axis, from being time-constrained (working in lockstep with others) to becoming timeunconstrained (working asynchronously whenever they choose).
For best efficiency, a deliberate balance between synchronous and asynchronous is beneficial. Working asynchronously is not a goal in and of itself; it is about being considerate and choosing to forward a topic or project asynchronously when possible. This allows for more synchronized moments. Asynchronous work that is extremely capable nevertheless allows for some synchronous dialogue.
Negotiating personal choices
The other factor that will ensure the success of hybrid models is how flexible they are to cater to the personal preferences of individual
34%
workers. It can be as simple as some people are most productive at the beginning of the day while some may gather steam post-lunch. Depending on our particular preferences, our ability to work at peak productivity and performance differ substantially. By considering employees' preferences when designing hybrid work, it will make it easier for others to understand and accommodate those choices.
Companies on the hybrid path are figuring out how to incorporate their workers' viewpoints. Many companies are providing managers with simple diagnostic survey tools to better understand their teams' personal preferences, work contexts, and key tasks—tools that allow them to learn, for example, where their team members feel most energized, and whether they have a wellfunctioning home office, and what their needs for cooperation, coordination, and focus are.
Maintaining workflows
To make hybrid work, one must consider how work is completed. In the age of hybrid labor, it has become far more complicated. And usually, there are two more preferred ways to deal with the issue. As employees shift to more flexible work arrangements, one option is to greatly increase the use of technology to coordinate tasks. Robotic devices that move around the plant can be deployed to aid the work process which can record comprehensive in-the-moment visual data. This data then can be transmitted back to all team members for examination.
According to studies, many firms still have a long way to go when it comes to remote working best practices and employee well-being.
Longer hours, continuous video conversations, and merging business and personal lives are not conducive to employee contentment over time. According to a survey conducted by Monster, a job-search company, more than two-thirds of remote workers are experiencing burnout symptoms. The other way is to take this new tectonic shift as an opportunity to re-engineer workflows that are used from pre-pandemic times and in a way, reinvent the wheel or design a new way to move forward.
Existing harmful practices should never be replicated in new hybrid arrangements, as was the case decades ago when corporations began automating work procedures. Many organizations just overlaid new technologies atop existing processes, thereby repeating their weaknesses, idiosyncrasies, and workarounds. Companies typically did not start making use of new technologies until years later, after several costly rounds of reengineering.
The starting point for this can be to figure out if any of the tasks in the current workflow system are unnecessary or needlessly cumbersome. The other aspect to consider is can some of the tasks be automated with the right application of technology. Also, workplaces need to be redesigned to ensure the best possible environment for collaboration, cooperation, and communication.
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