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1 WORKPLACE FLEXIBILITY REPORT

2 Workplace Flexibility This paper has been generated through discussion, debate and research on the subject of workplace flexibility. I would like to acknowledge those who contributed to this, many of whom are part of the Gender Diversity Round Table Group. We like to give people the freedom to work where they want, safe in the knowledge that they have the drive and expertise to perform excellently, whether they [are] at their desk or in their kitchen. Yours truly has never worked out of an office, and never will. Richard Branson, Virgin Group The Gender Diversity Round Table Group is designed to share ideas and generate discussion, with the purpose of helping businesses make small, but meaningful changes that are conducive to achieving greater gender diversity at a leadership level. We have discussed a variety of subjects thus far including Mentoring Programs, Internal Talent Development and the most recent conversation on Workplace Flexibility. This most recent subject has proven to be immensely popular and useful to our clients. In order to help the maximum number of people make meaningful decisions around workplace flexibility, we have created this paper to address the following: Why is flexibility such an important subject? What is a flexible work practice? What are the benefits of a flexible work practice? How can companies achieve it? 1

3 Why is Flexibility Important? In 2016, employees are increasingly mobile and have less loyalty to their employer than ever before*. In an increasingly competitive employment market, businesses need to do all they can to attract and retain the most talented people. Having a flexible work practice is key to this. Why? The majority of employees want flexibility Numerous global and Australian surveys have highlighted that flexibility is very important to employees of all ages and genders, having extra importance and significance to women E&Y Global Employment (all ages) Survey 74% of survey respondents put flexibility in the top three factors when considering a new job 2016 Deloitte Millennial Employment Survey (Those entering workforce post 2000) found 68% of Millennial's put flexibility in the top three factors when considering a new job 2016 Lawson Delaney Flexibility Survey Found 78% of Women in Senior Leadership roles would only consider new opportunities that offered flexibility Many employees NEED flexibility Whilst flexibility is high on many employees wish list it is also a need for many. 51% of Australian households with children under 18 are dual income Australia has an ageing population with more people than ever before having primary carer responsibilities for elderly relatives Those that need flexibility and don t get it are ultimately forced to find alternative employment 78% of Women in Senior Leadership roles would only consider new opportunities that offered flexibility *Forbes Magazine Survey

4 Top 3 Reasons Employees Want Flexibility Family responsibility, primarily childcare related To participate in personal interest / sporting activities To complete study and further education The rewards for the employer are significant: Employees that work flexibly are loyal high achievers (more on the later) Employers that offer flexibility have lower staff turnover There is a strong correlation between flexible workplaces and employee advocacy Finally If you don`t offer flexibility someone else will! 3

5 What is a Flexible Work Environment? Time based flexibility Flexi time work a set number of hours per week but have flexibility as to when these are done. Job share one or more employees share one role (usually equivalent of one FTE). They will have agreed work times and set days to ensure that the role outcomes are achieved. This type of flexible work arrangement typically suits more junior and administrative roles. Alternatively, two workers share a single position and decide together when each will work and which tasks each will perform. Two workers have unrelated part time assignments but share the same budget line. Compressed working week the employee works the same total number of hours a week as those that work five days but does so in four or fewer days. Typically, this will mean having one day off and working longer hours on two or more of the days they work. In some cases, the employee will be paid less, in line with hours worked, and in others, they will remain on full salary. 4

6 What is a Flexible Work Environment? Location based flexibility Ongoing location based flexibility working from alternative formal work sites such as satellite branches or non formal work environments such as working from home. This will involve working the same amount of total hours as the employee would if they were in the office. Short term location based flexibility an employee may have reason to need to work from an alternative site for an extended period of time. Many businesses in Australia have sites in Melbourne and Sydney and will allow employees to work from an alternative site for a longer period of time whilst they move their family. Seasonal or annual location based flexibility Workers work part year in one location and part year in a second location. Most examples of this are related to non office based roles. 5

7 What are the Benefits of Flexibility to your Organisation? Our research, discussion groups and the findings of numerous global studies (HP, PWC, USHR, Deloitte, Vodafone) have all reached the same conclusions relating to organisations that offer flexibility: Staff have higher levels of motivation and commitment There are lower levels of staff turnover (flexibility generates loyalty) Lower absenteeism and healthier employees Higher staff productivity Staff are more likely to be willing to offer flexibility back (taking calls out of hours etc) Candidate attraction People who benefit from flexible working arrangements are greater advocates for their organisations Flexible work practices appeal to all but hold particular appeal to senior women. Those that can demonstrate flexible work practices are far more likely to be able to attract top female talent Workstation numbers organisations that were able to offer flexibility are able to save money by reducing the number of workstations available. NAB and Macquarie have both recently benefited from this Other ideas for flexibility: Rostered Days Off Short notice RDOs or duvet days typically 12 per annum Flexible Employment Contracts It is an increasing trend for organisations to have Short and Medium Term Contracts for employees, giving increased flexibility to both parties (and less risk to the employer) Flexible rostering For example split shifts Task Based Flexibility This is perhaps the hardest type of flexible arrangement to implement and is an increasingly popular request from the Millennial generation of employees. Task based flexibility is where employees seek variety in task and the chance to pick and choose where they focus their time on any given day Unpaid leave Buying additional holiday and extended maternity and paternity leave are not examples of flexibility 6

8 How to Create a Flexible Working Environment? Change the culture and change the mindset. Move away from the assumption that flexibility is tied to parenthood and junior roles. Organisations need to move to an outcome/task based model where people are judged by functional outcomes, not the hours they spend in the office. Ensure reviews adhere to this task/milestone based approach. What you can do Develop a strong understanding of the different roles in your organisation, their day to day functions, outcomes, and dependencies Survey managers and understand which teams already have people working flexibly Identify which additional teams and functions are most suited to offering flexibility Engage with all Senior Management and articulate the benefits of a flexible work environment Find Senior people that can champion the change by visibly adopting a flexible approach to their job The real barrier to flexible work practices is a cultural one...if organisations want to retain their top talent, they need to focus on correctly scoping part time and flexible roles Bain&Co 2016 Have technology systems that increase the availability and visibility of people and documents. Make it possible for employees to access any document anywhere. Use tools to encourage people to share documents using cloud storage and encourage online messaging and video conferencing Talk to stakeholders and identify and eliminate any potential barriers Prepare a business case for the introduction of flexibility Communicate this new policy to the business and ensure the policy is documented and clearly accessible to all Assign flexibility to roles, not individuals Establish clear parameters what working from home means and what is expected of those doing so Put the emphasis on team leaders and managers to drive flexible work practices 7

9 Flexibility Do's & Don't's Women are working more, men are understanding their value as caregivers, women are primary breadwinners I mean, we could go on and on and on. Things are different. So we can t keep operating like everything is the same, and that s what many of us have done. And I think it s up to us to change the conversation. Michelle Obama, First Lady, United States of America DO NOT confuse flexibility and reward. A role is either flexible or it is not. Flexibility cannot be offered as a reward for performance. Equally, it cannot be withdrawn as a result of poor performance. This is key to the cultural shift in perception of flexibility Performance conversations have to be about inputs and outputs, not where and when. If a role is designated as being possible under a flexible arrangement and outcomes are not being met, the discussion needs to address, wrong person, wrong effort, wrong training, wrong expectation, not wrong workplace Working from home is not a day off or a reduced output day. Depending on the role, managers may wish to assign employees specific tasks to complete on days they work remotely If employees are paid for 4 day weeks, ensure they are only expected to work on days they are in. Do not encourage "work creep" Change the meeting culture. In 2016 it is not necessary for someone to physically attend a meeting. Dialing in and hosting a virtual meeting is globally considered good business practice Employees need to be visible and accountable. If you are working from home you are expected to be logged in and accountable. MS Office and other software systems support multiple tools to enable employees to flag their availability 8

10 About Lawson Delaney Lawson Delaney is Melbourne's leading Executive Search and Professional Recruitment firm, providing clients with specialised services across Sales, Marketing & Digital, Technical & Operations, Business Operations, Professional Services and Finance & Accounting. We are specialist advisors, helping business owners with strategic direction around talent management and talent acquisition. Our approach is underpinned by an exclusive methodology that delivers high performing candidates whilst significantly mitigating the recruitment risk. Within our group of companies, we have a broad reach across all industry sectors and are Australia s only recruitment firm with a corporate advisory arm, Lawson Advisory Partners, and an AFSL license to assist firms with organic or inorganic growth solutions (Mergers & Acquisitions). We also offer a Leadership Development program, Potentialife. A revolutionary nine month Leadership Development program developed by two leaders out of Harvard & McKinsey, Potentialife embeds in leaders the behaviours that have been scientifically proven to characterise high performance. To find out more about our specialisations, please visit T: E: Support@lawsondelaney.com.au Level 27, 333 Collins Street, Melbourne VIC 3000