Workplace Flexibility as a Tool to Boost Productivity

Transcription

1 Employee Benefits Summit Barceló Asia Gardens Convention Center, Alicante, Spain June 2014 Workplace Flexibility as a Tool to Boost Productivity From Justice to Prudence EADA Business School 0 Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. Título de la ponencia / Otros datos de interés /

2 Content of the presentation 1. Trends 2. Flexibility and Productivity 3. Harmonizing Work & Life 4. Workplace Flexibility Arrangements

3 You can t manage third generation strategies with second generation organizations and first generation managers. Sumantra Goshal London Business School 2

4 Employee Benefits Summit Barceló Asia Gardens Convention Center, Alicante, Spain June 2014 Workplace Flexibility as a Tool to Boost Productivity 1. TRENDS 3 Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. Título de la ponencia / Otros datos de interés / EADA Business 3 School

5 01 1. Globalization 2. Digitalization 3. Diversification 4. Individualization 5. Conscientiousness 6. Polarization 7. Acceleration Socio-Economic Trends

6 01 Socio-Demographic Trends EUROSTAT EMPLOYMENT RATE

7 01 Socio-Demographic Trends EUROSTAT FERTILITY RATE

8 01 Trends in HRM Boston Consulting Group & EAPM* Organizations that know how to confront the following challenges will be able to build and sustain a competitive advantage: Managing talent Managing demographics Becoming a learning organization Managing work-life balance Managing change and cultural transformation Survey among 1,355 executives from 27 countries in Europe; Follow-up interviews with over 100 senior executives.

9 01 CONCLUSIONS IDETITY Workplace Flexibility is not a fad. It is driven by fundamental socio-economical concerns for maintaining productivity & attracting & retaining talent. Any Flexibility Policy starts with a demographic study of employees, predicting evolving needs. 8

10 Employee Benefits Summit Barceló Asia Gardens Convention Center, Alicante, Spain June 2014 Workplace Flexibility as a Tool to Boost Productivity 2. FLEXIBILITY & PRODUCTIVITY 9 Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. Título de la ponencia / Otros datos de interés / EADA Business 9 School

11 02 Macro-context factors that influence organizations policy adoption decision COUNTRY LEVEL Extensive government-supported policies, such as social-democratic countries. Egalitarian gender-role ideology Low in masculinity Low in power distance Countries high in individualism LABOR MARKET Scarcity of talent or skills High diffusion of work family benefits High percentage of women in the active population High reliance on knowledge work High reliance on quality of customer service 10

12 02 Various studies published in academic journals * Flexibility and Productivity Flexible work arrangements & benefits have been associated with a variety of performance indicators: - Perceived firm performance (Perry-Smith & Blum, 2000) - Organizational citizenship behaviour (Lambert, 2000). - Market value (post-announcement): positive swing of the stock-on average 0.48% (Arthur, 2003). - Productivity and morale, reduced absenteeism, truancy and use of overtime (Dalton & Mesch, 1990; Guy, 1993; Mellor, 1986; Rubin, 1979; Swart, 1985). - Lower levels of stress (Bohen & Viveros-Long, 1982) - Commitment (Grover & Crooker, 1995; Scandura & Lankau, 1997) - Job satisfaction (Golembiewski, Hilles & Kagno, 1974; Orpen, 1981; Scandura & Lankau, 1997), without any negative effects on productivity or performance (Orpen, 1981; Schein, Maurer, & Novak, 1977). - Literature review spanning 40 years.

13 02 Various studies published in academic journals * Flexibility and Productivity However, not all policies may have equal impact! - Wide use of telework has been found to be positively related with profitability (Meyer, Mukerjee, & Sestero, 2001) - Presence of an in-company childcare centre was negatively related (Meyer, Mukerjee, & Sestero, 2001)

14 The Neuroscience of Leadership 02 The Brain is a Prediction Machine. Happiness consists in consistent and incremental growth in personal and professional trajectory (Gilbert, Harvard University) 13

15 02 CONCLUSIONS IDETITY Flexible work arrangements are associated with a variety of individual and organizational performance indicators. However, not all policies have equal impact. Need for design of unique HR-bundle of flexible arrangements. Policies won t work if leadership does not align expectations. 14

16 Employee Benefits Summit Barceló Asia Gardens Convention Center, Alicante, Spain June 2014 Workplace Flexibility as a Tool to Boost Productivity 3. HARMONIZING WORK & LIFE 15 Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. Título de la ponencia / Otros datos de interés / EADA Business 15 School

17 The Neuroscience of Leadership 03 The most important cause of conflict between work and personal life is the SPILL-OVER of negative stress. 16

18 03 Research on Work & Family CONFLICTS & STRESS AT WORK SPILL-OVER FAMILY-TO-WORK CONFLICT SPILL-OVER WORK-TO-FAMILY CONFLICT LESS PERSONAL QN & QL TIME CONFLICTS & STRESS AT HOME UNDERMINING SOCIAL SUPPORT AT HOME 17

19 The Neuroscience of Leadership 03 Our capacity for self-control regulated in the VLPFC is limited and requires recuperation. A sense of control quiets the brain. 18

20 03 CISMS Collaborative International Study of Managerial Stress 19

21 03 CISMS Collaborative International Study of Managerial Stress Work Locus of Control is a universal factor for Health. The relationship between working hours and work-family conflict is significantly stronger in individualist cultures (Anglo) than in collectivist cultures (Asia, Latin, and East-Europe). Spector, P.E., Allen, T.D., Poelmans, S.A.Y., Lapierre, L.M., Cooper, C.L., O Driscoll, M., Sanchez, J.I., Abarca, N., Alexandrova, M., Beham, B., Brough, P., Ferreiro, P., Fraile, G., Lu, C., Lu, L., Moreno-Velázquez, I., Pagon, M., Pitariu, H., Salamatov, V., Shima, S., Suarez Simoni, A., Siu, O.L., & Widerszal-Bazyl, M. (2007). Cross-National Differences in Relationships of Work Demands, Job Satisfaction and Turnover Intentions with Work-Family Conflict, Personnel Psychology, 60, Spector, P.E., Cooper, C.L., Poelmans, S., Allen, T.D., O Driscoll, M., Sanchez, J.I., Siu, O.L., Dewe, P., Hart, P., Lu, L., Renault de Moraes, L.F., Ostrognay, G.M., Sparks, K., Wong, P., Yu, S. (2004). A Cross-National Comparative Study of Work/Family Stressors, Working Hours, and Well-being: China and Latin America vs. the Anglo World. Personnel Psychology, 57, 1, *

22 03 Sense of Control Justice versus Prudence Unified policies versus cafeteria model Importance of managerial discretion and support Effective work-life policies create a sense of control: Over time (Flexible working hours, leave arrangements) Over space (Telework, Satellite offices) 21

23 03 WORK-LIFE HARMONY Any Flexibility Policy focuses on creating a sense of control and managing stress in employees. Mass Career Customization is the Future. Leadership is about clarity around policies, accommodating specific needs and managerial support. 22

24 Employee Benefits Summit Barceló Asia Gardens Convention Center, Alicante, Spain June 2014 Workplace Flexibility as a Tool to Boost Productivity 4. FLEXIBLE WORK ARRANGEMENTS 23 Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. Título de la ponencia / Otros datos de interés / EADA Business 23 School

25 04 Managing the Benefit Allowance Process CAREER PLANNING STRATEGIC OBJECTIVES INDIVIDUAL NEEDS INDIVIDUAL OBJECTIVES BENEFIT REQUEST ALLOWANCE I-DEAL ADJUSTMENT & RESULTS FAIRNESS PERCEPTIONS EXPECTATIONS EXPERIENCES

26 04 Overview flexibility policies From Justice to Prudence MOST POPULAR: Information Flexibility policies Short term / long term Time / space Child- and eldercare provisions Conventional provisions; compensations / benefits MORE INNOVATIVE: Integration personal and professional trajectories Individualized support, mentoring and coaching Job content / working time redesign Enrichment-enhancing training & development Cafetaria-type compensation model

27 04 FLEXIBLE ARRANGEMENTS Pre-Allowance The company needs to be prepared (IIG - IIIG) Design simple and consistent policy In-depth needs analysis (both department & employee) Benefit is not a right, each arrangement needs to be negotiated COMMUNICATE COMMUNICATE COMMUNICATE! Train middle managers in policy application and allowance decision-making Train employees in self-management skills During Allowance Give ongoing support and evaluation (supervisor, HR, mentor, coach) Beware employee can over-stretch and burnout In case of leave arrangement or foreign assignment, keep systematic and meaningful contact. After Allowance Importance of gradual readjustment Manage post-experience cognitive dissonance and fairness perceptions Your first adopters are your ambassadors! 26

28 Employee Benefits Summit Barceló Asia Gardens Convention Center, Alicante, Spain June 2014 Workplace Flexibility as a Tool to Boost Productivity THANK YOU FOR YOUR ATTENTION spoelmans@eada.edu 27 Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. Título de la ponencia / Otros datos de interés / EADA Business 27 School