Despite increasing attempts to get employees back to the office, remote and hybrid work arrangements are a fact of life for most organizations and will be for the foreseeable future. Initial studies on the impacts of this shift indicate significant changes in intracompany communications, raising an important question for those in the ethics and compliance field: What risks do these remote and hybrid work realities pose, and how comfortable are these employees in raising concerns about misconduct?
Observations of misconduct
Solid evidence is emerging that one of the biggest impacts of remote work has been a decline in employee observations of misconduct.
According to the 2023 Ethisphere Culture Report, employee observations of misconduct from pre- to post-pandemic declined by 20%.[1] This appears to be largely driven by remote employees, as the 2021 Gartner Compliance Culture Survey found that remote workers are 40% less likely to observe misconduct than their in-office peers (15% versus 26%, respectively).[2] The differential between observations of misconduct between hybrid and in-office workers is significantly less: 23% versus 26%, respectively.
However, do these declines reflect an actual reduction in misconduct or simply fewer opportunities to observe its occurrence? Unfortunately, definitive data is lacking, but prudent ethics and compliance professionals should implement additional strategies to foster speak-up cultures and uncover violations of the organization’s standards.
Types of observed misconduct
Among those observing misconduct, the most common types are generally consistent across remote, hybrid, and in-office employees. The 2021 Gartner Compliance Culture Survey found that while observations of some traditional compliance issues, such as discrimination and conflicts of interest, were lower among remote and hybrid employees, preferential treatment was considerably higher, observed by 49% of hybrid workers and 52% of remote workers versus only 33% for their in-office colleagues. The most commonly observed misconduct for all groups was “bullying, intimidation, unwanted behavior,” with hybrid and remote employees reporting a substantially higher percentage than their in-office colleagues.
These higher rates of perceived favoritism and bullying may trace to remote workers having difficulty reading body language or contexts in some work-related situations. Technical glitches from teleconference software, cameras not turned on, or poor connections may make it challenging to understand whether someone is joking, being sarcastic, or deadly serious. These feelings and concerns can be exacerbated by time delays in transmitting information among team members, when teams delay or simply forget to inform remote workers of changes that may have occurred “on the fly” in the office. Remote and hybrid staff may also feel unfairly treated depending on what perks and opportunities in-office coworkers receive. However, the types of issues will vary depending on the company and how well it managed the shift to remote work.
Willingness to speak up
During the pandemic, most research found that employees’ willingness to report observed misconduct generally declined (see Figure 1). The 2023 Ethisphere Culture Report saw declines of around 12%. In some countries, the declines were greater. Switzerland, for example, saw a 30% decline, and the United Kingdom experienced an 18% decline.[3]
Not only are employees less likely to report, but they may also be more likely to delay speaking up in general. A 2021 VitalSmarts survey found that 54% of employees reported avoiding speaking up about concerns with colleagues and managers for several weeks, a doubling of the pre-pandemic numbers.[4] The most likely topics delayed were poor performance, followed by behavior concerns and conduct violations.
Several factors may be driving the heightened reluctance to speak up. Generally, remote workers have fewer opportunities for informal exchanges during work (e.g., by the coffee machine, in the cafeteria, or at the elevators) to ask quick questions, seek clarifications, or just speak informally with managers and coworkers. Socially, remote employees are also isolated from the rest of the office. Many lack the ability to spend time outside office hours with their coworkers, whether through informal lunches, happy hours, or social events organized by the company, such as sponsored sporting events or holiday parties. As a result, some may feel left out of the office culture and may perceive increased favoritism toward in-office workers who enjoy greater face time with managers and leaders. Leaders at all levels should anticipate these ongoing fairness and equity concerns in the new workplace.[5]
Fairness is among the most important workplace issues because it affects employees’ sense of trust and cohesion, which in turn affects employee engagement, commitment, and collaboration. Over time, these employees may lose trust in managers and teams and experience a decline in psychological safety—a major factor in employees’ willingness to speak up at work.
Syntrio, a hotline provider, recently conducted a study that found that concerns about fairness could result in employees feeling less obligated to their employers to raise concerns or a lack of trust that their employers will responsibly handle their reports.[6]
Impact on reporting channels
Early research shows that the move to remote/hybrid workplaces has also impacted the use of specific reporting channels (see Figure 2).
The 2023 Ethisphere Culture Report found modest declines in the percentage of employees reporting misconduct to their direct manager; however, this was largely offset by increases in skip-level reporting within the management chain. Reports of misconduct to human resources (HR) representatives dropped substantially, from 42% before March 2020 to 34% after March 2020. Reporting to the ethics and compliance function also fell significantly, from 19% to 14%. Both declines may be a case of “out of sight, out of mind.” Remote workers are less likely to see HR or ethics and compliance representatives walking the halls or dining in the cafeteria; these interactions could act as reminders of the availability of these corporate resources.
Hotline misconduct reports also notably fell over the pandemic, from 22% of reports before March 2020 to only 12% after March 2020. This was somewhat offset by increases in reports to compliance web portals (4% pre-pandemic to 8% post-March 2020). Syntrio’s data also confirms a preexisting trend toward web portals and away from hotlines—the move to remote working arrangements may have accelerated the shift. For remote workers, the increase in the amount of time spent on the computer, along with fewer visual reminders of the hotline (e.g., posters, table tents), may partially account for the changes.
Companies that made a concerted effort to proactively promote alternate reporting channels for remote workers did not experience the same levels of decline. In addition, existing company culture plays a significant role. Did the organization generally have a speak-up culture before the pandemic? Did the employees trust when they reached out with the complaints that their concerns would be addressed? What was the tone from the top, the mood in the middle, and the buzz at the bottom regarding ethics and compliance?
How to promote speaking up
As ethics and compliance professionals navigate the shift to remote and hybrid work environments, they should consider several strategies to cultivate a culture that encourages timely reports of misconduct as well as speaking up about concerns for these employee groups.
Prioritize management training
Equip managers with the skills necessary to lead diverse teams comprising remote, hybrid, and in-person employees. Training should focus on promoting a speak-up culture and ensuring managers appropriately prioritize communications with remote and hybrid workforces. Key training areas should include:
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Understanding and guiding remote/hybrid teams, including unique considerations for remote work, such as building rapport and trust with remote staff and respectful online behavior.
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Recognizing and addressing instances of retaliation, which can sometimes be subtle in remote and hybrid settings.
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Responding promptly to reports about misconduct, respecting confidentiality, understanding their authority in handling issues, and adequately closing the loop after reports.
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Creating psychological safety by building trust remotely, fostering a learning mindset, and facilitating healthy debates. This includes being attentive to concerns about fairness among remote, hybrid, and in-office staff, irrespective of the manager’s belief in the validity.
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Understanding global dimensions of speak up and communications generally if remote employees are based outside the home country.
Provide dedicated employee training
Employees must also develop the skills necessary to promote speak-up cultures when participating in remote and hybrid teams. Key training areas should include:
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Teaching employees how to voice concerns, regulate emotions, approach issues constructively, and adopt a problem-solving mindset.
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Helping employees understand peer retaliation and encouraging them to support coworkers who make reports.
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Educating employees on promoting inclusivity, valuing diverse perspectives, and offering constructive criticisms when participating in remote and hybrid teams.
Segment metrics for remote and hybrid employees
Where possible, segment data and metrics to allow for breakouts of remote and hybrid employees. This can help with early issue identification among remote and hybrid employees with respect to speaking up and, when breakouts are incorporated into general employee surveys, can also highlight potential issues around trust and psychological safety.
Evaluate policies to address remote work issues
Remote and hybrid work environments introduce new challenges that existing policies and procedures may not address. These policies should be assessed and adjusted as needed to ensure the company sets appropriate expectations. Issues like discrimination, harassment, bullying, retaliation, and preferential treatment may manifest differently outside of a traditional office environment. Additionally, issues such as appropriate attire, background aesthetics for teleconferences, and employee privacy should be addressed. Organizations should also consider policies concerning evaluation of job duties to qualify for remote or hybrid assignments, along with related cost issues (e.g., high-speed internet connection, office furniture and equipment).
Promote accessibility of reporting channels
Ensure all employees can easily report misconduct through electronic methods, such as chat boxes or web portals. Look for creative and unique opportunities to position ethics and compliance representatives as approachable resources. A few possibilities include:
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Hold virtual meetings or webinars exclusively for remote employees, but ensure they are interactive by including scenario discussions or even virtual escape rooms with a compliance twist.
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Establish virtual office hours by setting consistent times when you are available to discuss issues, concerns, or questions.
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Have a strong online presence via company intranet, Slack, Microsoft Teams channels, and other digital platforms. Where possible, engage in company social channels (e.g., hobbies) to foster relationships and enhance approachability.
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Organize events, such as Compliance Month or Week, with engaging remote-friendly compliance activities, games, learning, and giveaways. These types of activities bring employees together to ensure they feel a part of the company, regardless of the location.
Communicate more frequently with remote reporters
Building trust with remote reporters is vital, which means responding swiftly to every concern, ideally within a 24- to 72-hour time frame. Keeping these employees updated regularly during any investigation is crucial, and standard intervals of 30 or 60 days may not be sufficient. The physical distance of remote work can lead to feeling disconnected or ignored—especially if updates on their reports are scarce—so consider providing more frequent updates or check-ins than you might in an office environment.
Conclusions
The shift to remote and hybrid work arrangements has fundamentally altered the landscape of corporate culture and communications, affecting how misconduct is observed and reported. The reluctance to voice concerns, heightened during the pandemic, demands concerted attention from ethics and compliance professionals to foster speak-up cultures in these nontraditional work environments.
Ethics and compliance professionals must proactively adapt and adopt strategies to meet the unique challenges faced by remote and hybrid employees. This involves dedicated management training, comprehensive employee training, inclusive corporate policies, and proactive promotion of accessible reporting channels. As we navigate this new era, our approach to maintaining ethical standards and encouraging misconduct reports must be constantly evaluated and open to innovation. Remote and hybrid work arrangements offer us the chance to rethink, reinvent, and strengthen our approach to ethics and compliance, paving the way for a more ethical, adaptable, and resilient workplace for the future.
The authors gratefully acknowledge the significant writing assistance provided by Joshua Replogle, an associate at the International Business Ethics Institute, in creating this article.
Takeaways
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The pandemic exacerbated an emerging trend of more employees working from home or in hybrid roles, which challenges traditional misconduct reporting efforts.
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Employees’ willingness to raise concerns about misconduct declined due to the pandemic and remote/hybrid work.
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Generally, employees working in remote or hybrid arrangements are more likely to have concerns about favoritism and bullying than on-site staff.
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Remote/hybrid work arrangements challenge organizations’ efforts to promote misconduct reporting, which further risks misconduct handling being delayed or left unaddressed.
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Leaders can better encourage remote/hybrid employees to speak up through improved manager and employee training, policies, reporting channel access, targeted metrics, and communication frequency.