Flex work models, generous PTO becoming ‘a must’ to recruit top talent
A new generation of job candidates seeks flexibility, work-life balance, purpose and a greater focus on well-being and wellness.
While many companies in Puerto Rico already offer flexible work arrangements, many more will have to in the future to attract and retain talent in a tight labor market comprising a new generation of job candidates who seek flexibility, work-life balance, purpose and a greater focus on well-being.
Nine out of 10 companies in Puerto Rico use a flexible workplace model, with 49% using a hybrid work model, 45% keeping employees on-site (in office), and 1% using a remote work model, according to Aon’s latest workplace flexibility survey, “Hot Topic: Practices for Work-Life Balance.”
Most companies, 66%, added or extended their use of flexible work models because of the COVID-19 pandemic, and 69% did so in response to a recruiting issue within the company, Aon reported.
Of these companies, 83% view their current work model as permanent, while 17% plan future changes: 75% are transitioning to hybrid work and 8% to remote work.
The most prevalent flexible work arrangements in Puerto Rico are hybrid (73%), paid leave (42%), reduced hours (28%), remote (25%), flextime (25%), four-day work weeks (15%), telecommuting (11%), gradual retirement (8%), sabbaticals (6%) and job sharing (4%).
Great expectations
Driving this trend are the high expectations of millennial and Gen Z employees, who value flexibility, work-life balance, meaningful employment, wellness, and well-being more than previous generations.
“The new generations expect more than spending their days in an office. They expect work-life balance,” Lorena Rodríguez, talent manager of Aon Puerto Rico, told News is my Business.
“So, there has been a significant change in mindset. Before, the company looked for the candidates. Now the candidates look for the company,” she added.
These expectations are transforming recruitment into a process that is more focused on what attracts and retains employees, not just what employers need. Job candidates increasingly reject inflexible employers or companies that don’t prioritize work-life balance. When their expectations are not met, many simply quit.
“For companies to function, they need to recruit new talent, and job candidates expect jobs that will allow them to work on something they care about and offer things like flexible time, travel and remote work – in other words, employers that focus on wellness,” Rodríguez said.
“This generation is very focused on working to live, not living to work,” she continued. “It’s quite different than when boomers and Gen Xers dominated the workplace — they were more likely to give the jobs their all. The new generations want to work, but they don’t want to give up their lives for a job. They ask: How does the company support what’s important to me? How does the job add meaning to my life? What does it contribute to my professional and personal life? Does it allow me to have the lifestyle I want? That balance between work and life is extremely important to them.”
Forty-seven percent of the companies surveyed by Aon that use flexible workplace models said that these models have a positive effect on attracting talent, making it more likely that candidates will accept job offers.Hybrid work wins
The hybrid workplace model combines working in an office environment and working from home. Hybrid work varies in flexibility and supports a variety of different work schedules, with employees either having fixed days at the office or the flexibility to choose where and when they work.
As of this month, 54% of U.S. workers reported working in a hybrid model, Statista reported. According to Gallup data, as of May, 53% of stateside employees work in a hybrid model, 27% work remotely and 21% work on-site.
A USA Today survey in April found that hybrid work is most prevalent among employees earning $75,000 to $100,000 per year and least prevalent among those earning under $50,000 per year. Of people earning $125,000 to $150,000, 43% work entirely in the office, more than in any other salary group.
Most white-collar workers (58%) prefer to work from home at least three days per week in their current roles, with 36% wanting to work all days remotely — the most popular option and slightly more than double the number who want to work five days a week in the office (17%), USA Today reported.
Paid time off
More than 50% of the local companies surveyed by Aon offer 15 to 20 days of vacation, with the average being 12 days. Only 25% reported offering days off based on years of service. Most, 77%, said they provide additional paid time off (PTO) for bereavement, a family member’s illness, birthdays, personal time, weddings, childcare, well-being, health or mental health days, and floating days off.
While 42% of the companies reported offering family leave (30-day average), many are expanding these benefits, with 58% offering extended maternity leave (granting an average of 41 additional days beyond what is required by law), 57% providing additional days for adoption purposes (an average of 40 days), and 12% offering paternity leave (an average of eight days).
“Paternity leave, which is not required by law, is a very attractive benefit for job candidates, so it helps in recruiting. We see this trend growing in Puerto Rico,” Rodríguez said.
Resistance is (probably) futile
Flexible workplace models and PTO benefits give employers a competitive edge in a tight labor market where various industries are experiencing significant labor shortages.
Tight conditions are being driven by several factors: employees being more selective about employers, the recent Puerto Rican diaspora and more people choosing to be entrepreneurs, Rodríguez explained.
“Employers are having to be more aggressive to attract good job candidates. And while there’s some resistance, especially in traditionally run businesses, companies must adapt because, if they don’t, they’ll run out of good talent. They won’t find people to work for them,” she added.
The key takeaway is that employers should be open to flexible work models, continued Rodríguez.
“Although each model has advantages and disadvantages, flexibility is what employees are looking for. Therefore, employers need to look beyond traditional work models and adapt to the current reality, understanding that this, too, will change. Just as it changed during the pandemic, it will change again, so employers need to be proactive and prepare themselves to react as quickly as the expectations of the newer generations change.”
Aon plc is a global professional services firm providing risk and human capital solutions.
