Before pandemic, companies were able to give benefits and perks to their employee by providing many facilities in the office. For example, lunch in the office, game room, gym, and the list go on. With current workforce prefer to work in hybrid setting or fully remote, some companies even considering change to a smaller office, or even to a more flexible property arrangement such as co-working space. Hybrid working arrangement also cuts employee cost of commuting or living nearby their office. Benefits that’s previously provided in the office, provided to support commuting cost, or living arrangement nearby the office, now becomes irrelevant. Companies need to revisit their benefit plan and realign them to current needs of hybrid or remote employees.  

While supporting flexibility, hybrid working made several companies considering to cut pay for their employees. Facebook, Twitter, and Google are one of big companies that’s considering to cut the pay for employees who chose to relocate away from their head offices. Meanwhile adjusting compensation might have legal and practical challenges, it can also have negative effect on employee’s morale and trust. So, how can we align our compensation & benefit?  

Defining Flexibility  

First step is to define what is ‘Hybrid’ means in our company or office. Hybrid work comes in different types, as we can see below a reference of hybrid working types. 











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A great reference to systematically assess jobs in our company and consider the most suitable hybrid set up for our company can be seen in an article by Mercer, where we can see jobs across 5 dimensions of flexible work (4W1H). Location and infrastructure (where), hours and scheduling (when), scaling and technology (how), job content and sharing (what), and automation and alternative workforce (who). This systematic approach can help us in building a proper policy.  

Compensation’s Component Adjustment  

Adjusting components in our compensation must be based on relevant and most current needs of our employess. A reference from  Microsoft’s Human Resources Hybrid Quick Start Guide where it mentioned; ‘Target initiatives to address audience segments and unique employee needs in different ways, including offering benefits where they’re needed most’ This means that we have to consider and identify what are the most common needs we have to compensate now. For example, if previously we included meal allowance in our compensation, we can change it to communication allowance to support better connection for employees working from home. 

Flexible Benefit 

Flexible working arrangement increase the diversity of work dimension and also employee needs. Hence, flexible benefit might be a good method for companies to be able to provide a relevant benefit to all employees. Companies can choose benefit types that employee can reimburse. For example, benefit for hobbies, mental & physical health, travel, etc. Employee does not have to go to specific establishment, they can choose their own favorite restaurants, their usual clinic, their favorite hotel chain, and get reimbursed. As long as the purchase is within the benefit types company provides.  


To sum 

Aligning our benefit to support hybrid work must be based on actual and relevant employee needs, for our benefit strategies to be impactful. Benefit plan and strategies should also be developed by combining the systematic definition of hybrid working in our company and employee needs.  


LinkedIn: Stevland Bridge
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