Workplace Flexibility: The Next Imperative for Business Success and HR Leadership
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1 Workplace Flexibility: The Next Imperative for Business Success and HR Leadership Lisa Horn Greater Providence Chamber & RI SHRM State Council 02/29/12
2 Continue the 2
3 Business Leaders are Now Flex Fans Perhaps the most important reason that work flexibility is a business imperative is because it produces better business results specifically, by engaging and retaining the talented people who produce the high-quality work and competitive advantage. So where can we go from here -- we or any business? In my view, just as far as the flexibility of our thinking can take us. Sharon L. Allen Board Chair Deloitte LLP 3
4 Today s Agenda 1) What is Workplace Flexibility? 2) Why is it So Critical Today? 3) Why is it a Business Imperative? 4) HR Leadership and Ten Flexibility Strategies 5) SHRM / FWI Partnership 6.) When Work Works 4
5 What is Workplace Flexibility? 5
6 What is Workplace Flexibility? Workplace flexibility is a way to define how, when and where work gets done and how careers are organized. It is essential that flexibility work for both the employer and the employees to be effective. Flexibility in the scheduling of hours worked or working an alternative work schedule Flexibility in the amount of hours worked, such as part-time work, job shares, phased retirement or part-year work Flexibility in the location of work, such as telecommuting or remote working 6
7 What is Workplace Flexibility? Some Types of Flexibility: Flex-Time Traditional flextime Daily flextime Compressed work week Reduced Time Part-time work Part-year work Flex-Leaves Time off during the workday Time off for personal illness Paid time off to care for children Parental Leave/ Elder Care Flex-Careers Sabbaticals Options for moving on and off the fast track Flex Place Telecommuting on an occasional or regular basis Phased Retirement Arrangement for employee nearing retirement age to work reduced hours to transition into full-time retirement 7
8 Why is it So Critical Today? Work/Life Fit is Complicated Time famine Increasing elder care responsibilities Dual-earner families More male work/life conflict Rising stress levels Diverse, multi-generational workforce 8
9 Why is it So Critical Today? Challenge: Time famine According to FWI and Princeton University research, employees are increasingly experiencing a feeling of time famine or not enough hours in the day 75% of employed parents feel they don t have enough time with their children, up from 66 percent in % of employees in couple relationships feel they don t have enough time with their husbands, wives or partners, compared with 50 percent in % of employees feel they don t have enough time for themselves, up from 55 percent in
10 Why is it So Critical Today? Challenge: Increasing elder care responsibilities June, 2011, Metlife Study of Caregiving Costs to Working Caregivers: Percentage of US adults providing care to a parent has tripled since 1994 and now represents a quarter of adults Americans who took time off for elder care suffered losses in wages, pension, and Social Security benefits Average individual losses were $324,000 for women and $284,000 for men Care givers aged 50+ were more likely than non-caregivers to report their health as fair or poor 10
11 Why is it So Critical Today? Challenge: More dual-earner couples There are more dual-earner couples in the workforce today 79% in 2008, up from 66% in 1977 Fully half of US workers are female, and mothers are now the primary breadwinners in 4 in 10 American families Women s level of education has increased steadily relative to men s In 2006, women earned 58% of all bachelor s degrees and 60% of all master s degrees 11
12 Why is it So Critical Today? Challenge: More work/life conflict among fathers Percentage of fathers and mothers in dual-earner Couples reporting work-life conflict ( ) Sources: 1977 QES, 2008 NSCW, FWI 12
13 Why is it So Critical Today? Challenge: Rising employee stress levels Nov. 2010, American Psychology Assn survey: 76% of workers surveyed are stressed about money, 70% about work, and 65% about the economy Those stressing over job stability has risen from 42% in 2008 to 44% in 2009 to 49% in FWI National Study of the Changing Workforce: 41% of employees reported experiencing 3 or more indicators of stress sometimes, often, or very often an increase since
14 Why is it So Critical Today? Challenge: Diverse, multi-generational workforce Becoming more racially and ethnically diverse population The number of US workers aged 40+ is growing rapidly: 68% in 2008, up from 39% in 1977 For the first time, four generations are together in the US workforce: Traditionalists, Baby Boomers, Generation X, and Generation Y (Millennials) The first group of 77 million Baby Boomers began reaching traditional retirement age of 65 in
15 Why is it a Business Imperative? 1) Employees are happier, healthier July 2011, survey by Staples Inc. of telecommuters who work one day or more for U.S companies: Stress levels of the telecommuters dropped 25% and their happiness increased 28% since starting the program 80% said they maintained a better work/life balance with telecommuting 76% said they are more willing to put in extra time and are more loyal to their companies since telecommuting 15
16 Why is it a Business Imperative? 2) Employees are more productive, engaged SHRM 2009 survey of HR professionals, Workplace Flexibility in the 21st Century: 67% of respondents thought flexibility positively impacted employee morale, job satisfaction, and engagement 32% said telecommuting increased employee productivity, versus only 5% who said it decreased productivity 42% said absenteeism decreased among telecommuters, versus 5% who said it increased 16
17 Why is it a Business Imperative? 3) It is a key recruitment, retention tool August 2010, SHRM-EIU global survey found that C-suite executives believe their two biggest challenges in the coming ten years will be: 1. Retaining and rewarding the best people. 2. Attracting the best people to the organization SHRM Poll: When HR Professionals were asked what was the best strategy to address these challenges, nearly 60 percent of them indicated, creating flexible workplaces. 17
18 Why is it a Business Imperative? 4) It helps the bottom line Accounting firms have led the way in offering flexibility, mainly as a way to avoid costly turnover Firms estimate the cost of hiring and training new employees is 1.5 times a departing employee s salary Reducing turnover by 200 employees, therefore, can mean $30 million in savings Sharon Allen, former chairwoman of Deloitte LLP, estimates flexibility policies have saved her company $45 million annually in turnover costs 18
19 HR Leadership and Strategies HR must take the lead on flexibility "Flexibility is not an accommodation or favor, it's the linchpin. People have two things to give: their talent and their time. Flexibility is the equalizer that allows the talent we develop to deliver superior performance. HR is in a position to provide the advice that will help leaders to win. -- Ted Childs, Principal of Ted Childs LLC 19
20 HR Leadership and Strategies Challenge: Resistance to flexibility 20
21 HR Leadership and Strategies Challenge: Legal Issues Telework and tax consequences Bi-weekly workweeks and the FLSA Phased retirement programs and ERISA/IRC Team scheduling and the NLRA 21
22 HR Leadership and Strategies Ten HR strategies for success 1) Bring top management onboard as flex champions 2) Position flexibility as a business strategy, not a perk 3) Make the business case, focusing on bottom line ROI 4) Also get middle management onboard 5) Listen to what your employees say works best for them 22
23 HR Leadership and Strategies Ten HR strategies for success 6) Design solutions that work for both your company and your employees 7) Develop written policies that are clear to all 8) Develop measurements to show progress 9) Provide flexibility training for managers and employees 10) Build flexibility into your corporate culture via CEO messages 23
24 SHRM-FWI Partnership The SHRM-FWI partnership aims to help businesses become more successful by transforming the way they view and adopt workplace flexibility. By highlighting strategies that enable people to do their best work, the SHRM-FWI partnership promotes flexible work arrangements that fit the 21 st century workforce and create a new competitive advantage for organizations. 24
25 SHRM-FWI Partnership Share research and employer best practices Recognize exemplary employers through the Sloan Award for Excellence in Workplace Effectiveness and Flexibility Inspire positive change so more organizations understand the benefits of workplace flexibility
26 When Work Works: 2012 Community Partners Spokane, WA Oregon Boise, ID Twin Cities, MN Winona, MN Rochester, MN Milwaukee, WI Michigan New Hampshire Providence, RI Long Island, NY Salt Lake City, UT Aurora/Denver, CO Arizona Williamson County Houston Chicago, IL Dayton, OH Louisville, KY Georgia Morris County, NJ Richmond, VA Durham, NC 5 Statewide initiatives: Arizona Georgia Michigan New Hampshire Oregon
27 When Work Works Sloan Awards: Overview Offered nationwide by FWI since 2005 Award winners recognized locally and nationally Recognize exemplary employers of all types and sizes in innovative workplace effectiveness and flexibility initiatives National at large Sloan Award for worksites outside of the When Work Works communities is also offered Rigorous scoring methodology, with one-third of final scores based on employers and two-thirds based on employees real life experiences on the job Application process is now open until April 16, 2012 at whenworkworks.org 27
28 When Work Works Sloan Awards: Application Process Round I Round II Employer Questionnaire Employers selfnominate by completing a questionnaire about their organization s flexibility and effectiveness practices at their worksite. Employers that rank in the top 20% of national data Employee Questionnaire Employees take a brief questionnaire about their access to and use of flexibility and other aspects of an effective workplace, and job jeopardy. A minimum 40% response rate is required. 28
29 When Work Works Top 10 Reasons to Apply for a Sloan Award 10.Provides a great opportunity to strengthen your organization's brand 9. Lets your customers know that you are an employer of choice in responding to the needs of employees and their families 8. Gives you a tool to use to recruit and retain top talent 7. Involves you in a vibrant and engaging network of organizations that are using workplace flexibility as an effective business strategy 6. Increases your organization s visibility by being an expert source on issues of effective and flexible workplaces for the media 29
30 When Work Works 5. Shows your employees that an effective and flexible workplace is a priority for your organization 4. Offers you the opportunity to be a winner and get national and local recognition 3. Enables you to be featured in the Guide to Bold New Ideas, the go-to source on best practices 2. Provides an opportunity for you to learn what your organization is already doing well and how these efforts can be enhanced through the benchmarking reports provided to all applicants 1. Stand out from your competition as an organization whose leadership values its employees 30
31 When Work Works Joint guide with best practices by winners of the Sloan Awards for Excellence in Workplace Effectiveness and Flexibility Features 262 unique employers (450 worksites) of all sizes and industries Available through the SHRMStore at 31
32 SHRM Workplace Flexibility Resources 32
33 Questions? Lisa K. Horn Senior Gov t Relations Advisor Co-Leader, SHRM s Workplace Flexibility Initiative Lisa.horn@shrm.org Duke Street Alexandria, VA
1 D SHR SH M R M
1 D Join / Continue the Conversation #workflex @WhenWorkWorks @TVHRA #2014SLC-TVHRA #SHRM @SHRMLobbystLisa Today s Agenda 1) What is Workplace Flexibility? 2) Why is it So Critical Today? 3) Why is it
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