future of work · any legal service s referenced herein, including services related to employment...

Future of WorkDiscussion for the State Chamber of Oklahoma

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2 | Copyright © 2020 Deloitte Development LLC. All rights reserved

Meet your panelistsF U T U R E O F W O R K

Patti WilkiePrincipal Deloitte Tax, LLP+1 [email protected]

Jim KiserOklahoma Managing DirectorDeloitte & Touche LLP+1 [email protected]


F U T U R E O F W O R K

Three Dimensions of Future of WorkThe Work, Worker and Workplace are dramatically changing – these Future of Work dimensions are now more important than ever and now is the time to think about how work gets done.

WORK

WORKPLACEWORKER

Activities performed and technology applied to produce outcomes and create value

The combination of skills, talent, options (such as FTEs, contractors, gig workers, crowd sourcing), jobs and teams to perform the work

The context and environment in which work is done including physical design and technologies,

collaboration, culture, and workforce preferences

WORK

SKILLS HUMAN CAPABILITIES TEAMS TALENT OPTIONS JOBS Geographic Location Collaboration Culture Physical Design

Outcomes of Work Value of Work Task / Flow Technology


7 DisruptorsF U T U R E O F W O R K

Technology is Everywhere Tsunami of Data AI, Cognitive Computing, Robotics

Jobs Vulnerable to AutomationDiversity/Generational Change Explosion in Contingent WorkCareers – 100 Year LifeJobs Vulnerable to Automation


COVID-19 has accelerated the Future of WorkSixty-two percent of employed Americans have worked from home during the COVID-19 pandemic, and polling suggests that both workers and employers are embracing the virtual workplace. 1

Employer Sentiment

Nearly 3 in 4 CFOs plan to shift at least 5% of previously on-site employees to permanently remote positions post-COVID-195

Nearly 1 in 4 CFOs plan to shift at least 20% 6

Workforce Sentiment

3 in 5 workers who have been working remotely during the coronavirus pandemic would prefer to continue to work remotely as much as possible, once public health restrictions are lifted2

60% of workers say that they are confident they can efficiently do their job remotely3

50% of workers believe they are equally or more productive working from home than at the office4

Future Outlook

41% of workers are predicted to work remotely at least some of the time post-pandemic7

1,2,7Megan Brenan, “U.S> Workers Discovering Affinity for Remote Work” Gallup, April 3, 20203,4Roy Maurer, “Majority of Employees Embrace Remote Work,” SHRM, April 22, 20205,6Justin Lavelle, “Gartner CFO Survey Reveals 74% Intend to Shift Some Employees to Remote Work Permanently” Gartner, April 3, 2020


https://www.npr.org/sections/coronavirus-live-updates/2020/04/07/828778490/4-of-5-workers-are-affected-by-covid-19-worldwide-u-n-agency-says

https://www.npr.org/sections/coronavirus-live-updates/2020/04/07/828778490/4-of-5-workers-are-affected-by-covid-19-worldwide-u-n-agency-says

https://www.gartner.com/en/newsroom/press-releases/2020-04-03-gartner-cfo-surey-reveals-74-percent-of-organizations-to-shift-some-employees-to-remote-work-permanently2


There are three key components to remote workThere are three major components for defining and operationalizing a remote work strategy and program.


O P E R A T I O N SP O L I C Y

• What’s our general philosophy for remote work?

• Which job profiles are best suited for remote work?

STAKEHOLDERS:

S T R A T E G Y

C-Suite HR Leadership Talent

• What are the guidelines for approving and managing remote workers?

• What are the compliance considerations or guardrails to minimize risk exposure?

STAKEHOLDERS:HR

Recruiting

Global Mobility

Benefits

Employment Law

Corporate Tax

Workplace Team

Payroll

IT & Security

• Who are the stakeholders involved and what are each of their roles and responsibilities?

• What are the process and tools to operationalize the remote work program?

STAKEHOLDERS:

HR

Recruiting

Global Mobility

HRIS

Payroll

Roles & Responsibilities ProcessCommunication Technology & Tools

Eligibility Legal & Compliance GuidelinesBenefit & Employment Terms

IT & Security


Compliance is integral to a successful remote work strategyF U T U R E O F W O R K

Organizations looking to accelerate their domestic and international remote work programs will get a step ahead if they embed tax and wider compliance considerations in their decision making process.

What are the risks for not focusing on it?Employers have the opportunity to proactively address the following risks, and optimize their decision making:

Payroll/Reporting• Is an entity registered in the location the employee wishes to work? • How will income and payroll taxes be handled? • How is the employee tracked, and are systems equipped to recognize

different living vs. working jurisdictions domestically and internationally?

Risk Profile• What is the company’s tolerance for legal and compliance risk?• Are there locations with significant risk that should be avoided?• Do certain locations present privacy concerns?

Tax• How does the organization identify current remote workers and establish if they

have triggered individual, employment, and corporate tax compliance risks?• What are the broader domestic and international tax implications to a

permanent/longer term remote working strategy?• What are the individual income tax withholding and filing implications?

Rewards• What compensation adjustments may be made aligned to local market pay?• What changes should be made to global rewards programs for remote

workers in the new environment?

Legal1

• Have employment contracts and the related taxability of benefits in certain jurisdictions been reviewed?

• How will wage and hour requirements change?• Will there be a requirement to provide compliant workspaces and homeworking

expenses in the homeworking jurisdiction?

Intra-Company Agreements• How will they be adjusted when costs are borne by one entity but the

employee is employed by another?

IP & Data Security• Are networks sufficiently secure?• Is the location safe for intellectual property?

Immigration• How would employees’ visas and work authorization be impacted if they move

to a new location?

• Unanticipated cost for enabling remote worker strategy

• Lack of proactive talent planning, particularly for organizations that are still looking to grow

• Corporate, employment tax and legal compliance implications of proposed remote working locations

• Poor employee experience when individual income tax implications are not assessed in advance or appropriately conveyed

1 Due to regulatory restrictions in the United States, Deloitte Tax LLP does not provide any legal services. Any legal services referenced herein, including services related to employment law, would be provided by the employment law practices of Deloitte Touche Tohmatsu Limited (DTTL), a UK private company limited by guarantee and/or Epstein Becker Green, an independent US employment law firm allied with Deloitte Germany


What does Future of Work mean for Oklahoma?F U T U R E O F W O R K

The widespread change in mindset around dispersed working

arrangements presents an opportunity for Oklahoma businesses like nothing in

our lifetime.

Remote work has gone from an accommodation to a strategic element

of business plans as geographic diversity is now viewed as advantage

Mid-tier and small cities, by contrast, stand to benefit from higher tax revenue and spending if skilled workers choose a less-ex-pensive, less-congested lifestyle. The work-from-home experience is “one of the first trends we’ve seen in quite some time that has the potential to rebalance economic opportunity across the U.S.,” said Upwork Chief Economist Adam Ozimek.



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Can it work? Here are 3 examples of great effort and success that could provide the foundation for the acceleration of business opportunity in Oklahoma

Are we ahead of the curve and prepared to capitalize?


What must we have to succeed? F U T U R E O F W O R K

Awareness / Branding Public Private Partnerships are Key Develop Talent Quality of Life

• Oklahoma business must realize their talent pool just got much larger is they can execute remote operations

• Understand the financial rewards for direct hires and corporations to reinforce the case

• Build your own case around your business and your community

• Technological savvy is a must.

• Quality infrastructure for quality broadband and 5G access is essential not just city central but rural locations as well

• Creative and unique solutions like Remote Tulsa create priceless brand value and visibility to the State.

• Digital natives are core to strategy

• Cooperation with education systems to develop the local talent pool

• Cooperation with education to retain those capitalizing on our current education system

• Affordability of housing, transportation

• Sense of well being and connectedness

• Viable entertainment, attractions and open space


Success storiesF U T U R E O F W O R K

Jim • An early adopter “Future of Work”

began in 1996 and I was terrified

• Native son of Oklahoma

• Able to execute successfully for 25 years

• Completely untethered able work from anywhere and choose Oklahoma because it’s home

• Relish the opportunity to advance our State

Amy• Experienced Healthcare

consultant

• Lifelong Californian

• Relocated to Oklahoma from California this year seeing immediate impact on cost of housing, taxes and commute

• Recently bought a home and becoming active with community

Joe & Alex• Seasoned technologists and

experts in Public sector

• Worked in Oklahoma then transferred to Washington DC

• Chose to return to OKC for quality of life, affordability and avoidance of coast to coast

• Passionate about helping Oklahoma reach its potential

Jen• ORU & Harvard grad

• Teach for America Alum

• Expert in Public Policy and governmental strategy

• Returned to Oklahoma from Chicago to be near family and contribute to our growth

• Recently bought a home and becoming active with community


Lessons learnedF U T U R E O F W O R K

• Don’t blink – Those items historically viewed as obstacles suddenly are advantage

• Use your resources – You have access to great resources and talent in all our Oklahoma Chambers, our Universities and locally prideful people who want to help

• Maintain your balance – We are social creatures that crave personal interaction. Technology is not a complete substitute for emotional or business success

• Real issues to exists – Connectivity, Cyber Concerns, Governance, Work Quality and the creeping Clock can erode work satisfaction and the productivity of yourself and your people. Set standards

• Use multiple tools to build an ongoing network – Every person reacts differently. Be adaptable to all technologies and aware of who reacts to what: email, phone calls, text, Zoom, Teams, instant messaging are all channels to connect

• We’re in a new place – stuff happens

This document contains general information only and Deloitte is not, by means of this document, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This document is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this document.

Copyright © 2020 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

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