Testing times: Transport costs to hit Singapore businesses

90% of survey respondents expect people to demand higher wages to offset the burgeoning costs - but what can employers do to alleviate the damage?

According to a release, with seven out of 10 businesses in Singapore saying that they will be affected by rising transportation costs, employers may seek to change working practices. Disaffection with commuting and its expense is causing growing problems for businesses and their staff in the Lion City, according to local research by Regus, the world’s largest provider of flexible workspace.

The survey revealed a number of business concerns associated with rising transportation costs:

· 90% think people will demand higher wages to offset the rise in transport costs
· 40% think transport costs are making workers increasingly unhappy with their jobs
· 31% think people will consider changing jobs to reduce commuting.

More encouragingly, four out of five businesses are confident that the rising transport costs will not damage productivity.

One way for Singapore’s employers to address problems associated with transport costs may be to offer staff greater flexibility over where they work. Over four out of ten (42%) businesses in the survey think there will be greater demand to work at home. An alternative would be to allow staff to work at professional workspaces closer to home, since many people dislike the isolation of home-working.

The benefits of introducing flexible working practices were recently evident in a separate global study carried out for Regus. It showed that 72% of businesses globally see a direct link between flexible working and increased productivity, and 63% believe it helps staff feel more motivated.

William Willems, Regional Vice-President for Regus, Australia, New Zealand and South-East Asia comments: “With the rate of inflation over 5% in 2011, Singapore’s employers and workers need measures to counter their rising costs. Flexible working is such a solution, because it lets businesses achieve a balance between helping staff offset transport costs and controlling their own costs.

Kerry Condon, Principal Client Services Manager for Alexander Mann Solutions, noted “The rapid growth of mobile technology – from laptops to tablets to smartphones – means modern workers don’t need to always be in the office in order to carry out their jobs. Often employers are moving away from conventional work practices, and implementing policies that enable workers to be more mobile. This can help employees to reduce rising transport costs.”

“Flexible working can also improve productivity, as well as reducing the cost of commuting for staff and the cost of premises for employers. At a time when Singapore’s predicted growth rate for 2012 is a subdued 1 to 3%, it could deliver much-needed benefits all round,” said Willems.