WFH initiative drives Spotify’s 15% drop in attrition rate

After the recent implementation of its “work from anywhere” model, Spotify has achieved a 15% reduction of its attrition rate, compared to 2019

In February last year, Spotify introduced its new “work from anywhere” remote working policy. 

And, it was even more liberal than it sounds. 

Spotify’s “work from anywhere” policy - reducing attrition and improving DE&I

The policy allowed all of Spotify’s 6,500 employees to choose wherever they worked. 

This gave them the opportunity to live and work anywhere in the world, where Spotify had an operation base. 

What’s more, Spotify’s employees can now choose how often they want to work in person. 

Alongside this, Spotify also changed its approach to salary calculations, adopting this same level of flexibility. The company now calibrates the salary band for its employees based on the country they are living in. 

And now, a year down the line, Spotify has stated that its turnover rate has reduced significantly. Furthermore, the company has now been able to improve the DE&I within its workforce.

In its initial announcement of the new policy, Spotify said that “listening to our employees and embracing the need for change, and finding our way of making adaptations is definitely the way to continue to evolve our culture for the long-term.”

“A flexible working culture is built on trust, communication, collaboration, and connection and acknowledging that we’re all individuals, with different needs and rituals gives us the right frame of mind to let go of a few chosen truths and instead find what’s right for our business and our people.”

Remote working - a growing trend, fuelled by 5G

Spotify’s latest employee enterprise seems to be just the tip of the iceberg. 

The statistics show that this is a trend that is likely to continue, across the world. 

According to Owl Labs, 16% of the world’s companies are 100% remote.

CoSo Cloud research revealed that 77% of remote workers say they’re more productive when working from home, and a similar TECLA report stated that 85% of managers believe that having remote workers within the team will become the ‘new normal’.


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