Back to WFH? Oil crisis reignites debate over hybrid work schemes

By Justine Irish D. Tabile, Senior Reporter and Beatriz Marie D. Cruz, Reporter

PHILIPPINE COMPANIES are weighing a return to flexible work arrangements to cushion employees from the impact of soaring fuel costs.

But some experts caution that while work-from-home (WFH) schemes can ease energy demand, they must be applied selectively to avoid hurting productivity.

“Organizations should begin revisiting their COVID (coronavirus disease 2019) playbooks and be ready to activate flexible arrangements if conditions worsen, even if not immediately,” Management Association of the Philippines President Donald Patrick L. Lim told BusinessWorld in a Viber message.

The International Energy Agency on March 20 recommended the adoption of WFH protocols to reduce energy demand amid a looming global oil crisis.

While the pandemic has prepared Filipinos for flexible work arrangements, readiness is not uniform across all sectors, Financial Executives Institute of the Philippines (FINEX) President Carlo Enrico B. Lazatin said in an e-mailed reply to questions.

As an example, financial services and other knowledge-driven firms can work remotely, but industries like manufacturing, energy, logistics, and agriculture remain on-site dependent, he said.

“Work-from-home should be deployed where it delivers measurable gains in productivity and cost, without disrupting core operations,” Mr. Lazatin said.

He noted that FINEX members’ business continuity plans included investments in digital infrastructure, cloud-based systems, cybersecurity, and secure remote access.

“For roles where output can be delivered remotely without compromising quality, hybrid arrangements become a practical response,” Mr. Lazatin said, adding this would help protect employees’ purchasing power, sustain engagement, and reduce commute-related fatigue.

However, Mr. Lazatin noted that some micro, small, and medium enterprises may find it difficult to adopt WFH protocols due to limited digital infrastructure.

While some firms are considering WFH arrangements, they are pressured to balance costs, productivity, and client service requirements, American Chamber of Commerce of the Philippines (AmCham) Executive Director Ebb Hinchliffe said via Viber.

“No industry indicated any desire to return to a 100% WFH setting,” he said, citing talks with AmCham members.

He said that companies’ level of readiness for WFH depends on factors like digital infrastructure, workforce composition, and prior experience with hybrid work.

Angelito “Lito” M. Villanueva, founding chairman of FinTech Alliance.PH, said the Philippine financial sector is “far more prepared” to adopt WFH policies amid the fuel crisis.

He noted that adopting hybrid work arrangements is now a strategic lever amid energy and economic volatility.

“The real barriers are no longer technology but cybersecurity assurance, and management mindset,” he said in a Viber message.

ENERGY CONSERVATION
The Philippine government has adopted energy conservation measures to soften the impact of soaring oil prices. President Ferdinand R. Marcos, Jr. last week declared a national state of energy emergency and ordered the implementation of a four-day workweek in some government offices.

However, the Palace on Friday said it is up to private sector firms to decide whether to implement WFH arrangements for their employees.

“Working from home can meaningfully cut energy use during a crisis because transport is the biggest lever — nearly half of oil demand comes from moving people and goods,” said Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas told BusinessWorld via Viber.

“Fewer commutes mean immediate fuel savings and some relief on transport-driven inflation,” it added.

Mr. Ravelas said that the policy could be a “temporary shock absorber” to ease price pressures without stalling growth.

Peter Lee U, an associate professor and dean of the School of Economics of the University of Asia and the Pacific, said that some offices have never returned to the 100% on-site arrangement since the pandemic.

“It can certainly help reduce fuel demand,” he said in a Viber message. “And consider that it won’t only be the Philippines that will resort to more work from home.”

“The whole world has learned from COVID-19 that it can be done and has learned how to make adjustments to minimize loss of efficiency or productivity from remote work. Thus, the whole world will reduce demand for oil, and this will alleviate the reduced oil supply,” he added.

PwC Philippines Chair Roderick M. Danao said that implementation of hybrid work schemes is being done to address demand from customers.

“Until now, we use hybrids because our clients need it, our customers need it, and our people also need it,” he told BusinessWorld on the sidelines of the Philippine Infrastructure Summit 2026.

Meanwhile, analysts said that the policy should be enforced on a case-to-case basis so as not to affect productivity.

“Productivity doesn’t necessarily suffer if this is done selectively: knowledge-based sectors like finance, information technology, business process outsourcing, and government back offices can maintain output with little disruption, while location-dependent sectors obviously can’t,” said Mr. Ravelas.

“The key is targeting, not blanket rules. If applied where it makes sense, the inflation relief from lower fuel and logistics costs can outweigh the limited production losses,” he added.

Mr. U said that the WFH arrangements are better left on a voluntary basis for private sector firms.

“They can judge better which workers need to be on-site to minimize efficiency or productivity losses. This would also guard against production losses,” he said.

Mr. U said some firms may extend transport allowances, but this may raise expenses and lower profits.

Mr. Danao said that for professional services firms like PwC Philippines, he does not recommend a full virtual setup.

“In our industry, we need to interact with our clients. And history will say during the pandemic, when we tried 100% virtual, our ability to deliver on time was severely compromised. Our efficiency was severely compromised. And to a certain extent, the culture of every entity is also compromised,” he said.

“So, it should be voluntary and, I would say, tailored from entity to entity. Because every entity, every industry, has a different operating model. For business process outsourcing firms, partly yes; in our case, partly yes; but for manufacturing, how can you do that, right? Also in healthcare and retail,” he added.