Capital Markets Authority mulls remote work for 25% of workforce

• Kuwait has facilitated a broad digital transformation embraced by most entities, both regulatory and within the public and private sectors.

The COVID-19 pandemic should not be viewed solely as an exceptional global crisis that forced businesses to close and threatened public health. It also brought about several positive changes, including a growing trend towards remote work, according to Al Rai newspaper.

Kuwait has facilitated a broad digital transformation embraced by most entities, both regulatory and within the public and private sectors. However, while the idea gained popularity, its actual implementation only materialized during the COVID-19 pandemic in 2020.

Recently, it appears that something is changing locally, as responsible sources revealed to the newspaper that the Capital Markets Authority is studying an initiative aimed at achieving a better work-life balance by combining in-office and remote work for its employees.

Flexible work model for employees

In this regard, the sources indicated that officials from the Capital Markets Authority is leading an exceptional initiative to implement a flexible work model for its employees, which would be applied for the first time in Kuwait. This model will allow a segment of employees to perform their duties from home as if they were in the workplace. The opinions of employees were surveyed regarding this initiative, and the results showed a significant level of interest.

It is worth mentioning that the total number of employees in the Capital Markets Authority is approximately 440.

While sources stated that the Markets Authority has not finalized its initiative, they indicated that the first scenario identified a set of governing determinants. The primary condition is that remote work will be available only to employees, excluding supervisors and managers.

The sources pointed out that financial benefits are planned to be deducted from the segment eligible for remote work compared to employees who continue to carry out their tasks in the office or in the field. Naturally, the benefits associated with the two-month salary for remote workers will differ from those in the traditional system.

Reducing operational costs

The sources did not specify the expected discount rate, stating that the results of the final study, which the Department of Human Resources is drafting with the relevant departments in the authority, will determine this. They highlighted that this trend offers a dual benefit: on one hand, it provides flexibility for the Markets Authority, and on the other hand, it reduces operational costs, aligning with the government’s goal of optimizing public expenses.

The sources pointed out that there is no harm in this approach as long as the authority has established schedules, disciplined work procedures, and guidelines that define breaches of the work system. To ensure job discipline, specific administrative procedures will be activated for employees who do not meet expectations in remote work. One such measure involves documenting instances where an employee is delayed in responding to work tasks, indicating that they are not fully engaged.

Remote work gains traction at Capital Markets Authority

While a significant portion of the employees at the Capital Markets Authority has approved the proposal for remote work, sources noted that the target percentage under study ranges from 20 to 25 percent. They hinted that employee surveys revealed a desire to participate in this initiative that exceeds the target percentage.

The sources indicated that it is not yet clear when the authority will implement the work-from-home initiative, as the timing and other technical and financial details are still under consideration. However, they noted that regulations governing remote work are already in place, along with the necessary technical devices.

Bridging the gap between operations and broader market system

The sources stated that the Capital Markets Authority’s adoption of digitization facilitates its remote operations. Recent advancements in technology have helped bridge the gap between its operations and the broader market system, which includes the Kuwait Stock Exchange Company and the Kuwait Clearing Company, thereby improving the paper-digital relationship.

They also emphasized that employees working at the authority’s headquarters will be required to fulfill their roles, ensuring that the necessary staffing levels are maintained within key departments to support the success of the remote work initiative.

Decrease in resignation rates

In the ongoing debate about the necessity of returning to offices to enhance work efficiency, employee productivity, and team spirit, versus the importance of remote work in providing flexibility for workers, sources indicated that the work-from-home model has clearly maintained productivity in certain jobs, especially those related to information technology.

They added that studies conducted in this area have shown additional advantages of this model, such as a reduction in employee turnover, which indicates a decrease in resignation rates due to reduced work pressures and the negative feelings that can arise in traditional work environments. Remote workers tend to be happier and more comfortable in their roles compared to their in-office counterparts.

Remote work fosters self-assessment skills

According to sources, remote work also fosters self-assessment skills and builds confidence in using technology without supervision, particularly as younger individuals increasingly favor this work model for its flexibility and positive attributes.